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GLENFED REPORTS SECOND QUARTER NET INCOME OF $20.5 MILLION VS. LOSS OF $113.7 MILLION IN SAME PERIOD LAST YEAR

 GLENFED REPORTS SECOND QUARTER NET INCOME OF $20.5 MILLION
 VS. LOSS OF $113.7 MILLION IN SAME PERIOD LAST YEAR
 GLENDALE, Calif., Jan. 22 /PRNewswire/ -- GLENFED Inc. (NYSE: GLN), parent company of Glendale Federal Bank, today reported net earnings of $20.5 million, or $.60 per share, for the company's second quarter of Fiscal 1992, ended Dec. 31, 1991, vs. a net loss of $113.7 million, or $3.33 per share, for the three months ended Dec. 31, 1990. In the second fiscal quarter last year, GLENFED substantially increased its loan and real estate loss reserves as part of a comprehensive Strategic Plan announced in January 1991.
 For the six-month period ended Dec. 31, 1991, GLENFED's net earnings totaled $37.6 million, or $1.10 per share, compared to a net loss of $95.7 million, or $2.81 per share in the six-month period ended Dec. 31, 1990.
 Norman M. Coulson, chairman and chief executive officer, said, "We are pleased with our second quarter results, particularly in light of continued weakness in the economies and real estate markets throughout our major market areas, California and Florida. In adopting GLENFED's Strategic Plan 12 months ago, we began the process of preparing our company to face the rigorous challenges of the 1990s. Our results for the recent quarter and the first six months of Fiscal 1992 reflect the bank's progress in meeting these challenges. However, all financial institutions continue to be exposed to significant economic, regulatory and political uncertainties."
 Stephen J. Trafton, vice chairman and chief financial officer, commented, "During the past year, we have implemented fundamental and far-reaching changes in the bank's revenue and expense structures, improving the bank's ability to increase its net interest income, a key component of core earnings, and reduce operating expenses." Trafton noted that these achievements are evident in the dramatic decline in the company's annualized operating expense to average assets ratio, which was reduced from 1.89 percent for the quarter ended Dec. 31, 1990, to 1.39 percent for the quarter ended Dec. 31, 1991, and the substantial improvement in the key ratio of the company's net interest income (before provision for loan losses) to operating expenses (excluding goodwill amortization) in the quarter ending Dec. 31, 1991, of 1.73-to-1, compared with 1.03-to-1 at the same time a year earlier.
 GLENFED's net interest income (before provision for loan losses) totaled $125.7 million for the quarter, and $255.9 million for the six months ended Dec. 31, 1991. In the same periods last year, net interest income amounted to $119.9 million, and $232.8 million, respectively, on a base of average interest-earning assets that was $2.0 billion larger than the current year. The company's interest rate spread -- the difference between the company's yield on earning assets and its cost of funds -- increased to 2.90 percent at Dec. 31, 1991, compared to 2.28 percent one year ago.
 Operating expenses (excluding goodwill amortization) totaled $72.7 million for the quarter and $144.9 million for the six-month period ended Dec. 31, 1991, vs. $116.8 million and $226.8 million, respectively, for the comparable periods a year ago. These figures represent a 38 percent reduction in operating expenses from the second quarter last year, and a 36 percent reduction from the six-month level a year ago.
 During the quarter, the company completed further balance sheet restructuring transactions contemplated by the Strategic Plan that generated a pre-tax gain of $47.6 million through the sale of loans. In addition, the company maintained its loan loss reserves and real estate valuation allowances at levels which reflect the economic uncertainties facing the bank, while recognizing additional provisions for loan and real estate losses during the quarter.
 The provision for loan losses totaled $48.8 million for the second quarter of Fiscal 1992, vs. $153.0 million in the same quarter of the previous year. Loan loss reserves totaled $280.7 million at Dec. 31, 1991, compared to $223.4 million at Dec. 31, 1990. As of Dec. 31, 1991, the company's ratio of reserves to total loans was 1.83 percent, and its ratio of reserves to non-performing assets and restructured loans was 32.5 percent.
 Total non-performing assets and restructured loans were $864.4 million at Dec. 31, 1991, vs. $609.6 million a year earlier. At Dec. 31, 1991, total non-accrual loans amounted to $498.9 million, vs. $371.2 million a year earlier; real estate owned totaled $212.2 million at Dec. 31, 1991, vs. $151.3 million at Dec. 31, 1990. Total restructured loans (which provide earnings to the company) amounted to $153.3 million at Dec. 31, 1991, compared to $87.1 million a year earlier.
 For regulatory compliance purposes, the bank's capital ratios are determined at the end of each fiscal quarter. At Dec. 31, 1991, Glendale Federal Bank was in compliance with all Federally-mandated capital requirements with tangible capital of 2.25 percent, core capital of 3.80 percent, and risk-based capital of 7.83 percent.
 On Jan. 1, 1992, the first step of the FIRREA-mandated phase-out of supervisory goodwill that may be included in core and risk-based capital occurred. On a pro forma basis, the bank would not have met its risk- based capital requirement, but the bank expects to meet this requirement at March 31, 1992, the next reporting date. In addition, the core capital ratio for most savings institutions is expected to be increased to at least 4.0 percent in the near future. In this case, the bank may be unable to meet the increased capital requirement and, as previously indicated, may be required to submit a capital plan or consent to other regulatory action.
 As part of its Strategic Plan, the bank continues its efforts to dispose of assets that have a higher risk weighting for regulatory capital purposes including non-residential, construction, multi-family (37 units and above), and commercial (asset-based) loans. These assets were reduced by $519 million in the first six months of Fiscal 1992, to a total of $4.0 billion at Dec. 31, 1991. In addition, Glendale Federal Bank has reached an agreement in principle to sell up to $500 million of its fixed home equity consumer loans to Household International, of Prospect Heights, Ill. The transaction is expected to close March 1, 1992.
 "At the midpoint of Fiscal 1992," Coulson said, "GLENFED earnings are ahead of its business plan. Evidence of the bank's revitalization can be seen in the refocus of loan origination activity at our local banking offices, which has contributed to a dramatic increase in mortgage loan applications during the quarter. Loan applications for residential mortgages during the quarter ended Dec. 31, 1991, increased approximately 60 percent, compared with the quarter ended Sept. 30, 1991. Also, the company entered into a securitization agreement with Fannie Mae, under which the bank will lend $1 billion over the next three years to low-to-moderate income and minority neighborhoods in California and Florida."
 GLENFED, Inc., the parent company of Glendale Federal Bank, provides community banking services through 214 bank offices in California, Florida and Washington.
 GLENFED INC. SECOND QUARTER EARNINGS (a)
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands except per-share data)
 (unaudited)
 Three months ended Dec. 31 (b) 1991 1990
 Net Interest Income Before Provision
 For Loan Losses $125,674 $119,871
 Net Earnings (Loss) $20,453 ($113,670)
 Primary Earnings (Loss) Per Share $.60 ($3.33)
 Fully Diluted Earnings (Loss) Per Share $.58 ($3.33)
 Six months ended Dec. 31 (b)
 Net Interest Income Before Provision
 For Loan Losses $255,865 $232,829
 Net Earnings (Loss) 37,562 (95,687)
 Primary Earnings (Loss) Per Share $1.10 ($2.81)
 Fully Diluted Earnings (Loss) Per Share 1.07 ($2.81)
 At Dec. 31 (b)
 Assets $20,593,322 $24,403,879
 Cash, Short-Term and Other
 Investment Securities 1,553,683 3,723,031
 Loans and Mortgage-Backed
 Securities, net 16,966,141 18,470,187
 Excess Cost Over Fair Value of
 Net Assets Acquired 456,922 486,461
 Deposits 15,221,350 16,428,909
 Borrowings 4,213,068 6,480,919
 Stockholders' Equity 909,402 1,007,871
 Book Value Per Common Share 26.57 29.48
 Shares Outstanding 34,226,301 34,190,301
 GLENFED INC. SECOND QUARTER EARNINGS (a)
 FINANCIAL HIGHLIGHTS (CONTINUED)
 (Dollars in thousands)
 (unaudited)
 LOAN VOLUME
 1991 1990
 For the Three Months Ended Dec. 31:
 Loans Originated $630,394 $1,284,053
 Loans Purchased $34,173 $8,463
 Mortgage-Backed Securities Purchased $753,601 $125,717
 Loans and Mortgage-Backed Securities
 Sold $1,352,939 $1,765,889
 For the Six Months Ended Dec. 31:
 Loans Originated $1,377,543 $2,627,280
 Loans Purchased $63,990 $15,698
 Mortgage-Backed Securities Purchased $1,658,942 $129,368
 Loans and Mortgage-Backed Securities
 Sold $2,256,516 $1,874,664
 Average Interest Rates at Dec. 31:
 Yield on Loan Portfolio 9.05 pct. 10.44 pct.
 Yield on Investment Portfolio 5.30 pct. 6.50 pct.
 Yield on Earning Assets 8.74 pct. 9.86 pct.
 Cost of Customer Deposits 5.74 pct. 7.50 pct.
 Cost of Borrowings 6.19 pct. 7.80 pct.
 Cost of Money 5.84 pct. 7.58 pct.
 Earnings Spread 2.90 pct. 2.28 pct.
 Non-Performing Assets and Restructured Loans
 Consolidated:
 Non-Accrual Loans $498,914 $371,195
 REO and Other Assets 212,243 151,294
 Total Non-Performing Assets 711,157 522,489
 Restructured Loans 153,287 87,094
 Total Non-Performing Assets Plus
 Restructured Loans $864,444 $609,583
 Glendale Federal Bank:
 Non-Accrual Loans $354,354 $260,329
 REO and Other Assets 180,755 121,559
 Total Non-Performing Assets 535,109 381,888
 Restructured Loans 117,670 70,223
 Total Non-Performing Assets Plus
 Restructured Loans $652,779 $452,111
 GLENFED, INC. SECOND QUARTER EARNINGS (a)
 FINANCIAL HIGHLIGHTS (CONTINUED)
 (Unaudited)
 1991 1990
 Non-Performing Assets and Restructured Loans
 Consolidated (in percent):
 Non-Accrual Loans 2.42 1.52
 REO and Other Assets 1.03 0.62
 Total Non-Performing Assets 3.45 2.14
 Restructured Loans 0.75 0.36
 Total Non-Performing Assets Plus
 Restructured Loans 4.20 2.50
 Glendale Federal Bank:
 Non-Accrual Loans 1.78 1.13
 REO and Other Assets 0.91 0.52
 Total Non-Performing Assets 2.69 1.65
 Restructured Loans 0.59 0.30
 Total Non-Performing Assets Plus
 Restructured Loans 3.28 1.95
 Glendale Federal
 Capital Ratios at Dec. 31: Federal Bank Requirement
 (in percent)
 Tangible capital 2.25 1.50
 Core capital 3.80 3.00
 Risk-based capital 7.83 7.20
 (a) GLENFED Inc.'s fiscal year ends June 30.
 (b) Effective Dec. 31, 1990, the company implemented SFAS 96, Accounting for Income Taxes. In March 1991, the company refined its implementation of SFAS 96 by recognizing tax benefits on general valuation allowances. The Consolidated Statement of Operations for the three and six months ended Dec. 31, 1990, and the income taxes payable and stockholders' equity at Dec. 31, 1990, reflect this change.
 GLENFED INC. SECOND QUARTER EARNINGS
 CONSOLIDATED STATEMENT OF OPERATIONS (a)
 (Unaudited; dollars in thousands)
 Three Months Ended Six Months Ended
 Dec. 31, Dec. 31,
 1991 1990 1991 1990
 Interest income:
 Loans and mortgage-
 backed securities $416,780 $514,701 $857,486 $1,036,597
 Investments 21,810 40,669 44,742 80,361
 Total interest
 income 438,590 555,370 902,228 1,116,958
 Interest expense:
 Deposits 236,013 317,447 486,704 634,600
 Short-term
 borrowings 18,000 27,355 29,583 64,501
 Other borrowings 58,903 94,078 130,076 193,747
 Interest capitalized --- (3,381) --- (8,719)
 Total interest
 expense 312,916 435,499 646,363 884,129
 Net interest income 125,674 119,871 255,865 232,829
 Provision for
 loan losses 48,805 153,023 103,982 167,351
 Net interest income
 (loss) after
 provision for
 loan losses 76,869 (33,152) 151,883 65,478
 Non-interest income:
 Title insurance fees (b) --- 9,695 --- 20,959
 Loan servicing income 6,250 13,719 14,320 28,359
 Other fees & service
 charges (b) 13,163 19,785 26,431 40,718
 Gain on sale of
 loans, net 47,597 10,162 79,372 11,666
 Gain on sale of
 investments, net --- (182) --- (182)
 Operations of real
 estate held for
 sale or investment (5,425) (33,566) (6,828) (31,113)
 Operations of real
 estate acquired in
 settlement of loans (11,549) (38,448) (18,324) (40,491)
 Other operating income
 (expense), net (521) (13,106) (683) (11,243)
 Total non-interest
 income (expense) 49,515 (31,941) 94,288 18,673
 Non-interest expense:
 Compensation &
 employee benefits 31,801 60,607 63,975 115,994
 Occupancy expense,
 net 10,038 13,176 20,261 25,876
 Regulatory insurance 9,814 9,059 19,339 18,989
 Other general and
 administrative
 expense 21,094 33,949 41,343 65,971
 Amortization of excess
 cost over fair value
 of net assets
 acquired 4,702 4,986 9,425 9,972
 Total non-interest
 expense 77,449 121,777 154,343 236,802
 Earnings (loss) before
 income tax expense
 (benefit) 48,935 (186,870) 91,828 (152,651)
 Income tax expense
 (benefit) 28,482 (73,200) 54,266 (56,964)
 Net earnings (loss) $20,453 ($113,670) $37,562 ($95,687)
 (a) Effective Dec. 31, 1990, the company implemented SFAS 96, Accounting for Income Taxes. In March 1991, the company refined its implementation of SFAS 96 by recognizing tax benefits on general valuation allowances. The Consolidated Statement of Operations for the three and six months ended Dec. 31, 1990, and the income taxes payable and stockholders' equity at Dec. 31, 1990, reflect this change.
 (b) The company's title insurance subsidiary, North American Title Co., was sold on March 29, 1991. Fee income for the three and six months ended Dec. 31, 1990, was $15.5 million and $32.5 million, respectively.
 -0- 1/22/92
 /CONTACT: Judy Cunningham, 818-500-2274, or Rosanne O'Brien, 818-500-2824, both of GLENFED Inc./
 (GLN) CO: GLENFED, Inc.; Glendale Federal Bank ST: California IN: FIN SU: ERN


JL -- LA015 -- 2103 01/22/92 09:13 EST
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