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GREAT WESTERN REPORTS SECOND QUARTER EARNINGS

    CHATSWORTH, Calif., July 20 /PRNewswire/ -- Great Western Financial Corp. (NYSE: GWF) today reported second quarter 1993 net earnings of $52.6 million, or $.35 per share, compared with $69 million, or $.50 per share, for the second quarter of 1992.  First quarter 1993 earnings were $45.2 million, or $.30 per share.
    For the first six months of 1993, net earnings were $97.8 million, or $.65 per share, compared with $151 million, or $1.10 per share, for the first six months of 1992.  Earnings for the first six months of 1992 included $31 million related to the adoption of accounting pronouncements.
    Non-performing assets declined to $1.95 billion, or 5.01 percent of total assets at June 30, 1993, from a restated total of $2 billion, or 5.17 percent at March 31, 1993.  The reduction in non-performing assets in the second quarter was attributable to increased sales of foreclosed real estate and a slowing rate of new delinquencies.
    Non-performing assets as originally reported at March 31, 1993, were reduced by $104 million as a result of the adoption of Statement of Financial Accounting Standards No. 114, Accounting By Creditors For Impairment Of A Loan, which defines new accounting rules for the measurement of impaired loans and eliminates the "loans in-substance foreclosed" category.
    During the second quarter, Great Western sold $173 million of foreclosed real estate compared with $121 million in the first quarter of 1993 and $58 million in the second quarter of 1992.  For the first six months of 1993, the company sold $294 million of troubled real estate compared with $100 million in the first half of 1992.
    As a result of the slowing rate of new delinquencies in the second quarter, non-performing loans declined by $31 million.
    Second quarter 1993 results were reduced by provisions of $86 million for loan and real estate losses, compared with $69 million in the second quarter of 1992 and $88 million in the first quarter of 1993.  The company's total reserves for losses were $637 million at June 30, 1993, compared with $276 million at June 30, 1992.
    Total new loans for the 1993 second quarter were $3 billion compared with $2.4 billion in the second quarter of 1992.  For the first six months of 1993, total new loans were $5.3 billion compared with $5.6 billion in same period of 1992.
    New real estate loan volume was $2.4 billion in the second quarter of 1993 compared with $1.8 billion in the same period of 1992.  For the first six months of 1993, new real estate loan volume was $4.2 billion compared with $4.5 billion in the first half of 1992.
    Retail fee and commission income was $37.5 million in the second quarter of 1993 compared with $33.1 million in the same period of 1992. For the first six months of 1993, retail fee and commission income was $70.9 million, compared with $62.6 million in the first half of 1992.
    The net interest margin, the difference between the company's yield on interest earning assets and its cost of funds, was 3.81 percent for the second quarter of 1993 compared with 3.84 percent in the first quarter of 1993 and 3.88 percent for the second quarter of 1992.
    With assets of $38 billion, Great Western Financial Corp. is a diversified financial services company operating more than 1,100 mortgage lending, retail banking, and consumer finance offices nationwide.  The company's principal subsidiary, Great Western Bank, is a mortgage-oriented consumer bank which operates extensive banking branch networks in California and Florida.
    This news release includes the attached consolidating statement of operations for the three months and six months ended June 30, 1993, and selected financial statistics for the same period.
                     GREAT WESTERN FINANCIAL CORP.
                Consolidating Statement of Operations(A)
                (Dollars in thousands, except per share)
                                     Consumer
    For the three months  Banking    Finance
     ended June 30        Operations Group    1993       1992
    INTEREST INCOME
     Real estate loans   $515,315     --- $515,315   $597,853
     Mortgage-backed
      securities           47,038     ---    47,038    67,771
     Consumer loans        14,565  81,437    96,002   102,985
     Securities and other  14,469   1,673    16,142    17,610
     Total                591,387  83,110   674,497   786,219
    INTEREST EXPENSE
     Customer accounts    231,644   1,695   233,339   352,858
     Borrowings            67,979  23,043    91,022    79,572
     Total                299,623  24,738   324,361   432,430
    NET INTEREST INCOME   291,764  58,372   350,136   353,789
    Provision for
     loan losses           76,600   8,900    85,500    60,000
    Net interest income
     after provision
     for loan losses      215,164  49,472   264,636   293,789
    Other operating income
     Real estate services
      Loan fees            10,005     ---    10,005     7,623
      Mortgage banking
       Gain on mortgage
        sales               5,856     ---     5,856     8,139
       Servicing           12,589     ---    12,589    13,309
      Real estate
       operations          (8,030)    ---    (8,030)    2,526
      Provision for real
       estate losses         (500)    ---      (500)   (9,000)
      Total                19,920     ---    19,920    22,597
     Retail banking
      Banking fees         27,466     ---    27,466    23,847
      Securities
       operations          10,082     ---    10,082     9,234
      Total                37,548     ---    37,548    33,081
     Net gain on securities
      and investments         215     ---       215       599
     Net insurance
      operations            2,721   4,471     7,192     6,881
     Other                    314   1,360     1,674     1,552
    Total other
     operating income      60,718   5,831    66,549    64,710
    Operating and
     administrative
     expenses             213,265  32,729   245,994   238,450
    EARNINGS BEFORE
     TAXES ON INCOME       62,617  22,574    85,191   120,049
    Taxes on income        22,900   9,700    32,600    51,000
    NET EARNINGS          $39,717 $12,874   $52,591   $69,049
    Primary earnings
     per common share                          $.35      $.51
    Fully diluted earnings
     per common share                           .35       .50
    Dividends per common share                  .23       .23
    Operating and administrative
     expenses (annualized)
     as a percent of
      Average assets  2.36 pct  6.87 pct  2.58 pct   2.45 pct
      Revenue        60.42 pct 50.98 pct 58.97 pct  55.78 pct
    Net earnings
     (annualized)
     as a percent of
      Average assets                       .55 pct    .71 pct
      Average equity                      8.52 pct  11.55 pct
    (A) Unaudited
                     GREAT WESTERN FINANCIAL CORP.
                Consolidating Statement of Operations(A)
                (Dollars in thousands, except per share)
                                  Consumer
    For the six months Banking    Finance
     ended June 30     Operations Group     1993      1992
    INTEREST INCOME
     Real estate
      loans           $1,035,563   --- $1,035,563 $1,237,474
     Mortgage-backed
      securities         97,835    ---     97,835    138,716
     Consumer loans      30,379 167,095   197,474    210,922
     Securities and
      other              27,719   3,705    31,424     36,508
     Total            1,191,496 170,800 1,362,296  1,623,620
    INTEREST EXPENSE
     Customer accounts  484,485   3,428   487,913    729,690
     Borrowings         128,184  46,470   174,654    178,149
     Total              612,669  49,898   662,567    907,839
    NET INTEREST INCOME 578,827 120,902   699,729    715,781
    Provision for
     loan losses        129,300  18,700   148,000    137,700
    Net interest income
     after provision
     for loan losses    449,527 102,202   551,729    578,081
    Other operating income
     Real estate services
      Loan fees          19,355     ---    19,355     16,349
      Mortgage banking
       Gain on mortgage
        sales            10,892     ---    10,892     16,612
       Servicing         25,673     ---    25,673     28,366
      Real estate
       operations       (16,913)    ---   (16,913)     1,851
      Provision for real
       estate losses    (26,000)    ---   (26,000)   (38,000)
      Total              13,007     ---    13,007     25,178
     Retail banking
      Banking fees       51,918     ---    51,918     45,255
      Securities
       operations        19,022     ---    19,022     17,383
      Total              70,940     ---    70,940     62,638
     Net gain on securities
      and investments       409     ---       409        810
     Net insurance
      operations          4,526   8,635    13,161     13,188
     Other                  529   2,455     2,984      2,897
    Total other
     operating income    89,411  11,090   100,501    104,711
    Operating and
     administrative
     expenses           425,384  68,844   494,228    474,952
    EARNINGS BEFORE
     TAXES AND
     ACCOUNTING CHANGES 113,554  44,448   158,002    207,840
    Taxes on income      41,200  19,000    60,200     88,300
    EARNINGS BEFORE
     ACCOUNTING CHANGES  72,354  25,448    97,802    119,540
    Accounting changes
     Postretirement benefits
      cost, net             ---     ---       ---    (29,906)
     Income taxes           ---     ---       ---     61,000
    NET EARNINGS        $72,354 $25,448   $97,802   $150,634
    Primary earnings
     per common share
     before accounting changes               $.65       $.88
    Fully diluted earnings
     per common share
     before accounting changes                .65        .87
    Primary earnings
     per common share                         .65       1.11
    Fully diluted earnings
     per common share                         .65       1.10
    Dividends per common share                .46        .45
    Operating and administrative
     expenses (annualized)
     as a percent of
      Average assets   2.35 pct  7.19 pct  2.59 pct   2.43 pct
      Revenue         61.27 pct 52.16 pct 59.82 pct  55.32 pct
    Net earnings
     (annualized)
     as a percent of
      Average assets                        .51 pct    .77 pct
      Average equity                       7.95 pct  12.74 pct
    (A) Unaudited
                     GREAT WESTERN FINANCIAL CORP.
                    Selected Financial Statistics(A)
                (Dollars in thousands, except per share)
    At June 30                       1993        1992
    ASSETS
    Cash, U.S. government
     and other securities      $1,331,031   $1,315,656
    Mortgage-backed securities
     held for investment              ---    1,568,094
    Mortgage-backed securities
     available for sale         2,787,713    1,848,291
    Loans receivable, net      30,888,838   30,363,250
    Loans receivable
     available for sale           472,296      298,649
    Real estate available
     for sale or development, net 763,140    1,153,709
    Interest receivable
     and other assets             701,078      797,777
    Investment in
     Federal Home Loan Banks      309,076      315,447
     Premises and
     equipment-at cost            622,177      547,386
    Intangibles arising
     from acquisitions            303,510      346,627
    Total                     $38,178,859  $38,554,886
    LIABILITIES
    Customer accounts         $28,599,548  $31,166,936
    Borrowings                  6,187,804    3,940,018
    Other liabilities
     and accrued expenses         676,982      671,706
    Taxes on income,
     principally deferred         226,293      355,168
    STOCKHOLDERS' EQUITY        2,488,232    2,421,058
    Total                     $38,178,859  $38,554,886
    Stockholders' equity
     per common share              $16.68       $17.54
    Common shares outstanding 131,502,544  130,640,368
    Loans serviced for others $12,757,670  $13,208,786
    NONPERFORMING ASSETS AND
     TROUBLED DEBT RESTRUCTURINGS
    Delinquent loans
     (essentially 90 days
      or more delinquent)      $1,009,388     $823,043
    Troubled debt restructurings  423,106      131,027
    Loans in-substance foreclosed     ---      462,225
    Real estate owned             520,722      373,719
    Total                      $1,953,216   $1,790,014
    Percent to total assets      5.01 pct     4.58 pct
    GREAT WESTERN BANK,
     A FEDERAL SAVINGS BANK
    FULLY PHASED-IN CAPITAL RATIOS
    Leverage/tangible capital    5.76 pct     5.17 pct
    Risk-based capital          11.80         9.45
    (A) Unaudited
                     GREAT WESTERN FINANCIAL CORP.
                    SELECTED FINANCIAL STATISTICS(A)
                         (Dollars in thousands)
    At or for the
     three months ended June 30            1993        1992
    Reserve for estimated loan losses
     Beginning balance                 $501,185    $297,628
     Provision for loan losses
      Real estate loans
       Single-family                     65,500      14,000
       Commercial and other               4,500      23,600
      Consumer finance                    8,900      10,500
      Bank card                           5,303       8,245
      Other                               1,297       3,655
      Total provision for loan losses    85,500      60,000
     Net charge-offs
      Real estate loans
       Single-family                    (33,497)    (11,417)
       Commercial and other             (18,021)    (66,518)
      Consumer finance                   (7,387)     (9,355)
      Bank card                          (6,083)     (7,199)
      Other                                (672)     (4,477)
      Total net charge-offs             (65,660)    (98,966)
     Ending balance                    $521,025    $258,662
    Mortgage sales                     $873,655    $590,066
    (Decrease) in customer accounts    (478,623) (1,362,690)
    Amortization of intangibles           8,885      10,358
    At or for
     the six months ended June 30
    Reserve for estimated loan losses
     Balance at Jan. 1                 $492,871    $263,050
     Provision for loan losses
      Real estate loans
       Single-family                    105,500      24,000
       Commercial and other               9,000      74,300
      Consumer finance                   18,700      21,000
      Bank card                          10,481      14,582
      Other                               4,319       3,818
      Total provision for loan losses   148,000     137,700
     Net charge-offs
      Real estate loans
       Single-family                    (63,267)    (20,041)
       Commercial and other             (27,237)    (86,318)
      Consumer finance                  (16,498)    (16,997)
      Bank card                         (12,191)    (13,160)
      Other                                (653)     (5,572)
      Total net charge-offs            (119,846)   (142,088)
     Ending balance                     521,025     258,662
    Reserve for estimated
     real estate losses                 116,138      17,170
    Total reserve for losses           $637,163    $275,832
    Mortgage sales                   $1,328,310  $2,385,953
    (Decrease) increase in
     customer accounts               (2,309,117)    596,568
    Amortization of intangibles          17,822      24,885
    (A) Unaudited
                       GREAT WESTERN FINANCIAL CORP.
                      Selected Financial Statistics(A)
                           (Dollars in thousands)
    For the three months ended June 30     1993        1992
    Net interest margin for the period
     Average yield on
      Loans                            7.65 pct    8.98 pct
      Mortgage-backed securities       6.52        7.77
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Date:Jul 20, 1993
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