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SFFED CORP. ANNOUNCES YEAR-END 1992

 SAN FRANCISCO, Jan. 25 /PRNewswire/ -- SFFed Corp., (NASDAQ: SFFD), the holding company for San Francisco Federal Savings and Loan Association, today announced net income for the year ended Dec. 31, 1992, of $16.7 million, or $2.13 per share, compared with net income of $14.7 million, or $1.89 per share for 1991. Income for 1992 includes $4.0 million of benefits relating to a change in the method of computing income taxes recorded in the first quarter of 1992.
 For the fourth quarter of 1992 the company reported net income of $1.0 million, or 13 cents per share, compared with net income of $4.0 million, or 52 cents per share for the year-earlier period. The 1992 quarter includes $6.8 million of provisions for possible losses on loans and real estate compared with $3.7 million in the year-earlier quarter.
 The company's interest margin on total assets was 2.76 percent at Dec. 31, 1992, compared with 2.61 percent a year-earlier as liability costs have decreased faster than earning asset yields. Net interest income for the fourth quarter of 1992 at $21.6 million was $0.7 million higher than for the year-earlier quarter, but a decrease in interest earning assets during 1992 resulted in a decrease in net interest income for 1992 of $2.0 million from 1991.
 Nonperforming assets (loans over 90 days delinquent and foreclosed real estate) were $138.6 million at Dec. 31, 1992, compared with $123.8 million at year-end 1991 and $119.1 million at Sept. 30, 1992. The $19.5 million increase from September 1992 was related primarily to one construction loan in Northern California which became nonperforming due to the borrower's cash flow problems. The company does not anticipate any ultimate loss on this loan. Provisions for losses in 1992 resulted in a year-end ratio of total loan and real estate reserves to total assets of 1.14 percent compared to 0.77 percent at Dec. 31, 1991.
 1992 operating expenses of $63.5 million were slightly lower than 1991 levels despite increased costs associated with managing the higher levels of nonperforming assets. Income from mortgage banking activities decreased from 1991 levels reflecting lower loan servicing income as a result of rapid prepayments of loans due to high refinancing activity.
 Commenting on the results for the year, Roger L. Gordon, chairman and chief executive officer said, "We are pleased with the company's continued ability to produce operating earnings despite the weak economy and troubled real estate market in which we operate. It is heartening to note that despite provisions for losses in excess of $18 million during the year, we were able to remain solidly profitable and improved our core operations. We are confident that as external conditions improve, the earnings capacity of the company will increase dramatically."
 At Dec. 31, 1992 stockholders' equity (net worth) of $195.6 million ($25.24 per share represented 6.19 percent of total assets. The Association exceeds all fully phased in regulatory capital requirements and, at Dec. 31, 1992 meets the regulatory definition of a "well capitalized" financial institution.
 SFFed Corp., with assets of $3.2 billion is the holding company for San Francisco Federal Savings and Loan Association, which operates 35 savings branch offices and 10 loan centers in Northern and Central California.
 SFFED CORP. AND SUBSIDIARY
 Dec. 31, 1992
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except per share amounts)
 1992 1991
 For the quarter ended Dec. 31:
 Net income $ 981 4,003
 Earnings per share 0.13 0.52
 Net interest income 21,551 20,855
 Interest rate margin on total assets 2.74 pct. 2.52 pct.
 Ratio of operating expense to
 average assets 1.92 pct. 1.77 pct.
 Profitability ratios (annualized):
 Return on average assets 0.12 pct. 0.47 pct.
 Return on average equity 2.00 pct 8.97 pct.
 For the year ended Dec. 3l:
 Income before cumulative effect of
 accounting change $ 12,655 14,698
 Cumulative effect of accounting change 4,000 --
 Net income 16,655 14,698
 Income per share before cumulative effect
 of accounting change 1.62 1.89
 Cumulative effect of accounting change
 per share 0.51 --
 Net income per share 2.13 1.89
 Net interest income 89,595 91,557
 Interest rate margin on total assets 2.80 pct. 2.73 pct.
 Ratio of operating expense to average
 assets 1.93 pct. 1.93 pct.
 Profitability ratios (annualized):
 Return on average assets 0.39 pct.A 0.44 pct.
 Return of average equity 6.67 pct.A 8.58 pct.
 At Dec. 31:
 Assets $3,160,410 3,317,458
 Loans 2,522,221 2,590,961
 Deposits 2,271,529 2,440,134
 Stockholders' equity (net worth) 195,605 178,787
 Shares outstanding (actual number) 7,749,988 7,741,038
 Book value per share $ 25.24 23.10
 Interest rate margin on total assets 2.76 pct. 2.61 pct.
 Nonperforming assets:
 Amount $ 138,610 123,751
 Ratio to total assets 4.39 pct. 3.73 pct.
 Total loan valuation allowances:
 Amount $ 26,467 21,262
 Ratio to total assets 0.84 pct. 0.64 pct.
 Ratio to gross loans 1.04 pct. 0.82 pct.
 Net worth to total assets 6.19 pct. 5.39 pct.
 Regulatory tangible capital ratio 5.59 pct. 4.97 pct.
 Risk-based capital ratio 10.04 pct. 8.59 pct.
 A -- Excludes cumulative effect of accounting change.
 SFFED CORP. AND SUBSIDIARY
 Condensed Consolidated Statements of Operations
 (Unaudited; in thousands, except per share amounts)
 3 Months ended Dec.31, Year ended, Dec.31,
 1992 1991 1992 1991
 Interest income on loans
 and investments $56,657 72,096 243,214 311,758
 Interest expense on deposits
 and borrowings 35,106 51,241 153,619 220,201
 Net interest income 21,551 20,855 89,595 91,557
 Provision for loan losses 5,590 2,456 14,507 13,080
 Net interest income after
 provision for loan losses 15,961 18,399 75,088 78,477
 Other income
 Mortgage banking income 2,091 1,678 7,704 8,434
 Loan and deposit fees and
 charges 1,397 1,669 5,538 4,992
 Branch sales and closures -- (169) 148 192
 Other 104 868 2,473 2,221
 Total 3,592 4,046 15,863 15,839
 Other expense
 Amortization of excess of cost
 over fair value of net assets
 acquired 179 175 704 701
 Provision for losses 1,225 1,285 4,003 4,069
 Operating expenses 16,791 15,014 63,458 63,751
 Total 18,195 16,474 68,165 68,521
 Income before income taxes and
 cumulative effect of a change
 in the method of accounting
 for income taxes 1,358 5,971 22,786 25,795
 Income tax expense 377 1,968 10,131 11,097
 Income before cumulative
 effect of a change in the
 method of accounting for
 income taxes 981 4,003 12,655 14,698
 Cumulative effect of a
 change in the method of
 accounting for income taxes --- --- 4,000 ---
 Net income $ 981 4,003 16,655 14,698
 Earnings per share:
 Before cumulative effect of
 a change in the method of
 accounting for income
 taxes $ 0.13 0.52 1.62 1.89
 Cumulative effect of a
 change in the method of
 accounting for income
 taxes --- --- 0.51 ---
 Net income per share $ 0.13 0.52 2.13 1.89
 SFFED CORP. AND SUBSIDIARY
 CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (Unaudited, in thousands)
 Dec. 31 Dec. 31
 1992 1991
 Assets
 Cash and cash equivalents $ 144,818 164,210
 Mortgage-backed securities,
 net 312,314 410,520
 Loans receivable, net 2,522,221 2,590,961
 Real estate acquired by
 foreclosure 70,841 36,769
 Excess of cost over value of
 net assets acquired 10,139 10,773
 Other assets 100,077 104,225
 Total Assets $3,160,410 3,317,458
 Liabilities And Stockholders' Equity
 Customer deposits $2,271,529 2,440,134
 Borrowings 650,575 649,710
 Other liabilities and accrued
 expenses 42,701 48,827
 Total Liabilities 2,964,805 3,138,671
 Stockholders' equity 195,605 178,787
 Total Liabilities and
 Stockholders' Equity $3,160,410 3,317,458
 -0- 1/25/93
 /NOTE TO EDITORS: Additional tables are available upon request./
 /CONTACT: Paul Weinberg, 415-955-5814, or Lawrence C. Bell, 415-955-5803, of SFFed/
 (SFFD)


CO: SFFed Corp.; San Francisco Federal Savings and Loan Association ST: California IN: FIN SU: ERN

RK-TM -- SF007 -- 8555 01/25/93 13:49 EST
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Date:Jan 25, 1993
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