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RESTATEMENT RAISES GLENFED'S EARNINGS FOR FIRST HALF OF FISCAL 1992

RESTATEMENT RAISES GLENFED'S EARNINGS FOR FIRST HALF OF FISCAL 1992
 Extended Recession and Real Estate Problems
 May Impact Third Quarter Profitability
 GLENDALE, Calif., Feb. 25 /PRNewswire/ -- GLENFED Inc. (NYSE: GLN) today announced that as the result of the adoption by the Financial Accounting Standards Board (FASB) of Statement of Financial Accounting Standards, "Accounting for Income Taxes" ("SFAS 109"), the company will increase its net earnings, stockholders' equity and regulatory capital by approximately $13 million through a restatement of its earnings for the six months ended Dec. 31, 1991. As restated, the company's net earnings for the quarter ended Dec. 31, 1991 were $27.6 million, or $.81 per share, and for the six months ended that date were $51.6 million, or $1.51 per share.
 SFAS 109 will have a positive impact on the bank by permitting the tax effecting of general loan loss reserves established since June 30, 1991. In adopting SFAS 109, the bank has also elected to restate prior years, including years in which certain business combinations occurred. Such a restatement will have the effect of reducing goodwill and stockholders' equity by approximately $45 million but would not reduce regulatory capital.
 The restatement of income resulting from SFAS 109 returns the bank to compliance with the risk-based capital standard as of Jan. 1, 1992. On Dec. 31, 1991, the most recent regulatory reporting date, Glendale Federal Bank met all Federally-mandated capital requirements. Tangible, core and risk-based capital ratios at that time, as restated, were 2.31 percent, 3.86 percent and 7.93 percent, respectively. On Jan. 1, 1992, certain legally required changes in the method of computing regulatory capital became effective. Prior to the restatement, the bank, on a pro forma basis as of that date, was not in compliance with the risk-based capital requirement.
 Offsetting the favorable effect of SFAS 109 and the continuing benefits of improved core earnings and operating cost reductions, however, the company noted that continuing increases in its non- performing assets, reflecting the extended national recession and deterioration in real estate markets, places profitability for the quarter ending March 31, 1992 in question. In addition, the core capital ratio for most savings institutions is expected to be raised to at least 4.0 percent in the near future. It is unlikely that the bank will be able to meet such an increased core capital requirement. As previously stated by the company, upon any failure to meet capital requirements, the company would then be required to submit a capital plan or consent to other regulatory action.
 GLENFED Inc., the parent company of Glendale Federal Bank, provides community banking services through 214 bank offices in California, Florida and Washington.
 -0- 2/26/92
 /CONTACT: Judy Cunningham, 818-500-2274, or Rosanne O'Brien, 818-500-2824, both of GLENFED/
 (GLN) CO: GLENFED ST: California IN: FIN SU:


CH -- LA013 -- 2680 02/26/92 09:39 EST
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Publication:PR Newswire
Date:Feb 26, 1992
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