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HOMEFED REPORTS FOURTH QUARTER, YEAR-END RESULTS

 HOMEFED REPORTS FOURTH QUARTER, YEAR-END RESULTS
 SAN DIEGO, March 31 /PRNewswire/ -- HomeFed Corp. (NYSE: HFD),


parent company of HomeFed Bank, FSB, today reported a net loss of $35.6 million or $1.65 per share for the fourth quarter of 1991, compared to a net loss of $175.7 million or $8.18 per share for the same quarter in 1990.
 For the year, HomeFed reported a net loss of $807.7 million or $37.59 per share, compared to a net loss in 1990 of $248 million or $11.57 per share.
 HomeFed's auditors have expressed an opinion that the company's 1991 financial statements are presented fairly and in accordance with generally accepted accounting principles (GAAP), but with a modification indicating uncertainty as to whether HomeFed can continue as a going concern. HomeFed Bank's ability to continue in operation is dependent on many factors, including regulatory action.
 If HomeFed were unable to continue as a going concern, then certain adjustments would have to be made to write down intangible assets and to record the losses necessitated by the conversion of non-cash assets to cash.
 The company also announced today that it has applied to the Office of Thrift Supervision (OTS) for an extension of the March 31, 1992 deadline by which HomeFed is required to raise sufficient capital to comply with its regulatory capital requirements, including the special increased capital requirements imposed in the cease and desist order to which HomeFed consented in October 1991.
 "We are making progress on the recapitalization, but more time is required to finalize the proposal, which would require federal assistance," said Thomas J. Wageman, HomeFed president and chief executive officer. He added that there is no assurance that shareholders will retain any value in the company even if a recapitalization is achieved.
 At Dec. 31, 1991, the bank's tangible, core and risk-based capital shortfalls were $409.7 million, $615.4 million and $1.2 billion, respectively. Because of the bank's regulatory capital shortfalls, regulatory actions could be taken which include the appointment of a conservator or receiver, even if the extension is approved.
 Wageman said the company's loss for the fourth quarter of 1991 was primarily due to continued deterioration in the real estate market. "Based on our analysis during the first quarter of this year, which took into account prevailing economic conditions, historical experience and the actual performance of the portfolio, we felt it was necessary to increase our loss provisions.
 "I think it's important to note, however, that our basic operating businesses of consumer banking and mortgage lending continued to perform well during the quarter," Wageman added.
 During the fourth quarter, the company established $68.7 million in provisions for loan and other losses, bringing the total provisions for 1991 to $796.7 million, compared to 1990's fourth quarter provisions of $250.4 million, and $546.8 million in provisions for the year 1990. At Dec. 31, 1991, the company's level of allowances for losses stood at $563.5 million, compared to $694.4 million at Sept. 30, 1991 and $429 million at Dec. 31, 1990.
 In the fourth quarter of 1991, the company took net chargeoffs against its loss allowances of $199.6 million, of which $152.2 million related to the designation of real estate in the company's real estate development subsidiaries as being held for sale.
 At Dec. 31, 1991, the bank's non-performing assets (NPAs) were $2.1 billion, compared to $1.2 billion at Dec. 31, 1990. The ratio of NPAs to total consolidated assets was 14.81 percent at Dec. 31, 1991, compared to 6.44 percent at year-end 1990.
 A total of $441.6 million in new NPAs were added during the fourth quarter. Net chargeoffs of loans and other NPAs for the quarter were $47.4 million, sales of REO were $33.2 million and delinquent loans brought current, paid down or paid off were $112.8 million.
 At Dec. 31, 1991, $848.1 million of the NPAs were non-accrual loans, $746.2 million were in-substance foreclosures (meaning that the asset is accounted for as if it were real estate owned, even though the bank does not have title to the property) and $462.2 million were REO. At Dec. 31, 1990, the non-accrual loans, in-substance foreclosures and REO totalled $603.3 million, $478.1 million and $94.1 million, respectively.
 HomeFed Corp.'s stockholders' equity, under GAAP, was $13.6 million at Dec. 31, 1991, representing .10 percent of total consolidated assets, compared to $799.2 million or 4.38 percent of total consolidated assets at Dec. 31, 1990.
 For 1991's fourth quarter, total revenues were $355.8 million, compared to $460.4 million in 1990's fourth quarter. For the year, total revenues were $1.6 billion, compared to $1.9 billion for 1990.
 The bank had $351.7 million in new home loan originations and purchases during the fourth quarter of 1991, compared to $666.2 million for the like period of 1990. Home loan originations and purchases for the year ended Dec. 31, 1991 were $1.3 billion, compared to $4.1 billion for the previous year. Permanent single-family loans made up 83.9 percent of this year's loan originations.
 Gains from sales of loans and securities for the fourth quarter were $25 million, compared to a loss of $1.9 million for the same period of 1990. For the year, gains on sales of loans and securities totalled $31.9 million, compared to $7.6 million for 1990.
 Net interest income for the quarter, before provisions for loan losses, was $47.8 million, compared to $90.7 million in 1990's fourth quarter. For the year ended Dec. 31, 1991, net interest income, before provisions for losses, was $265.3 million, compared to $420.9 million for the like period of 1990.
 At Dec. 31, 1991, the company's weighted average interest rate spread was 2.52 percent, compared to 2.65 percent at year-end 1990.
 Service charges, other fees and other operating income totalled $28.4 million for the quarter, compared to $21.4 million for 1990's fourth quarter. Other operating income for the fourth quarter of 1991 included a one-time benefit of $8.8 million related to the curtailment of the company's defined benefit pension plan. For the year, service charges, other fees and other operating income was $85.8 million, compared to $78.8 million for 1990.
 Income from real estate operations was $11 million for the quarter, compared with $6.3 million for the like quarter of 1990. For the year ended Dec. 31, 1991, income from real estate operations was $29.4 million, compared with $38.7 million for the previous year.
 General and administrative expenses were $71.1 million during the quarter, compared with $82.2 million for the fourth quarter of 1990. For the year, these expenses were $297.5 million, compared with $330.3 million for the same period of 1990. "The company is continuing its efforts to reduce its levels of general and administrative expenses," Wageman said.
 Consistent with the company's reduction in asset size from $18.3 billion at Dec. 31, 1990 to $13.9 billion at Dec. 31, 1991, total deposits were reduced from $13.7 billion to $10.2 billion over the same period.
 Founded in 1934, HomeFed Bank, Federal Savings Bank, operates a network of 201 retail offices throughout California.
 HOMEFED CORP.
 Consolidated Financial Summary
 (Dollar amounts in thousands, except share and per share data)
 Quarter Ended Dec. 31,
 1991 1990
 Investment revenues:
 Interest on loans $276,289 $413,988
 Interest on investments 15,211 24,342
 Total investment revenues 291,500 438,330
 Interest expense:
 Interest on deposits 179,944 275,772
 Interest on borrowings 63,717 71,869
 Total interest expense 243,661 347,641
 Net interest income 47,839 90,689
 Provision for loan losses 46,500 170,000
 Net interest income (expense) after
 provision for loan losses 1,339 (79,311)
 Service charges and other fees 7,404 6,634
 Other operating income 20,982 11,111
 Total 29,725 (61,566)
 General and administrative expenses:
 Compensation and employee benefits 29,960 41,346
 Occupancy expenses 15,352 18,252
 Other general and administrative
 expenses 18,235 15,180
 Deposit insurance premium
 and regulatory assessment 7,582 7,452
 Total general and administrative
 expenses 71,129 82,230
 Other income (expense):
 Gains (loss) on sale of loans and
 securities, net 24,956 (1,934)
 Real estate operations, net 10,998 6,300
 Provision for losses (22,215) (80,412)
 Provision for restructuring expense (4,500) ---
 Amortization of excess of cost over
 net assets acquired and of value
 of core deposits (3,434) (3,464)
 Earnings (loss) before income
 tax benefit (35,599) (223,306)
 Income tax benefit --- (47,575)
 Net earnings (loss) ($35,599) ($175,731)
 Primary earnings (loss) per share ($1.65) ($8.18)
 Fully diluted earnings (loss)
 per share ($1.65) ($8.18)
 Average shares used for computing
 earnings (loss) per share:
 Primary shares 21,484,332 21,484,332
 Fully diluted shares 21,484,332 21,484,332
 Dividends per share --- $0.05
 HOMEFED CORP.
 Consolidated Financial Summary
 (Dollar amounts in thousands, except share and per share data)
 12 Months Ended Dec. 3,
 1991 1990
 Investment revenues:
 Interest on loans $1,332,267 $1,698,133
 Interest on investments 78,623 82,567
 Total investment revenues 1,410,890 1,780,700
 Interest expense:
 Interest on deposits 862,147 1,090,324
 Interest on borrowings 283,401 269,472
 Total interest expense 1,145,548 1,359,796
 Net interest income 265,342 420,904
 Provision for loan losses 375,882 422,240
 Net interest income (expense) after
 provision for loan losses (110,540) (1,336)
 Service charges and other fees 30,039 30,777
 Other operating income 55,789 48,028
 Total (24,712) 77,469
 General and administrative expenses:
 Compensation and employee benefits 143,420 168,099
 Occupancy expenses 65,792 73,707
 Other general and administrative
 expenses 56,334 58,092
 Deposit insurance premium
 and regulatory assessment 31,992 30,416
 Total general and administrative
 expenses 297,538 330,314
 Other income (expense):
 Gains (loss) on sale of loans and
 securities, net 31,931 7,580
 Real estate operations, net 29,370 38,663
 Provision for losses (420,850) (124,532)
 Provision for restructuring expense (121,526) ---
 Amortization of excess of cost over
 net assets acquired and of value
 of core deposits (13,648) (13,517)
 Earnings (loss) before income
 tax benefit (816,973) (344,651)
 Income tax benefit (9,300) (97,133)
 Net earnings (loss) ($807,673) ($247,518)
 Primary earnings (loss) per share ($37.59) ($11.57)
 Fully diluted earnings (loss)
 per share ($37.59) ($11.57)
 Average shares used for computing
 earnings (loss) per share:
 Primary shares 21,484,332 21,401,227
 Fully diluted shares 21,484,332 21,401,227
 Dividends per share --- $0.20
 HOMEFED CORP.
 YTD December 1991 1991 1990
 Net income (loss) (807,673,000) (247,518,000)
 Shr earns (primary):
 Net income (loss) ($37.59) ($11.57)
 Shr earns (fully-diluted):
 Net income (loss) ($37.59) ($11.57)
 -0- 3/31/92
 /CONTACT: Monica Wiley or Sheree Zizzi of HomeFed, 619-450-7885/
 (HFD) CO: HomeFed Corp. ST: California IN: FIN SU: ERN


KJ -- SD005 -- 3496 03/31/92 14:38 EST
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