Printer Friendly

SFFED CORP. REPORTS SECOND QUARTER RESULTS; 11-PERCENT REDUCTION IN NONPERFORMING ASSETS

 SAN FRANCISCO, July 19 /PRNewswire/ -- SFFed Corp. (NASDAQ: SFFD), the holding company for San Francisco Federal Savings and Loan Association, today announced net income for the quarter ended June 30, 1993 of $2.4 million, or $0.31 per share. This compares with $5.6 million, or $0.72 per share, for the second quarter of 1992. The majority of the decrease in 1993 net income reflects $3.3 million (pretax) of higher levels of real estate related losses and provisions in the 1993 quarter. Nonperforming assets were reduced by $15.3 million from March 31, 1993 levels.
 For the six months ended June 30, 1993 the company earned $5.6 million, or $0.71 per share, compared with $12.5 million, or $1.60 per share, in the year-earlier period. The 1992 year-to-date income includes $4.0 million, or $0.51 per share, of benefits relating to a change in the method of accounting for income taxes.
 Nonperforming assets (loans over 90 days delinquent and foreclosed real estate) totalled $128.2 million at June 30, 1993. This level of nonperforming assets is $15.3 million or 11 percent lower than March 31, 1993 levels. During the quarter ended June 30, 1993 the company charged $5.5 million to earnings as losses and provisions for loan and real estate losses compared with $2.7 million for the comparable 1992 period. At June 30, 1993, total reserves for loan losses aggregated $26.4 million or 1.02 percent of total loans while the total of reserves for loan and real estate losses totalled $37.3 million.
 The company's interest rate margin on total assets was 2.53 percent at June 30, 1993 compared with 2.99 percent a year earlier. Net interest income for the quarter ended June 30, 1993 was $21.8 million compared with $24.4 million for the year-earlier period. For the first six months of 1993 net interest income totalled $44.1 million compared with $47.2 million for 1992.
 During the current quarter the company originated a record $298 million of residential mortgage loans, 66 percent of which were adjustable rate. Total loan originations aggregated $310 million. This total compares with $227 million of total loan originations in the second quarter of 1992. Loan originations for the first half of 1993 totalled $521 million, a $71 million or 16-percent increase over the year-earlier period.
 At June 30, 1993 stockholders' equity (net worth) of $201 million or $25.92 per share represented 6.10 percent of total assets. The association exceeds all fully phased-in regulatory capital requirements and is classified for regulatory purposes as a "well capitalized" financial institution.
 Commenting on the quarterly results, Roger L. Gordon, chairman and chief executive officer said, "The second quarter of 1993 may well be viewed in hindsight as a watershed period. The company was able to withstand a narrowing interest margin and significant loan and real estate losses and loss provisions and continue to produce positive operating results while reducing nonperforming assets. Despite the difficult California real estate market, the level of loan delinquencies has remained relatively flat over the past several months. I am pleased to note that the company reached record levels of residential mortgage loan originations this quarter. In addition, deposit levels grew by $67 million to $2.32 billion."
 Gordon continued, "We have believed for some time that the primary focus for the company's future profitability is in its ability to increase its asset base while reducing nonperforming assets. Excellent progress has been made towards attaining these two goals. We believe that we can sustain levels of loan originations that will fuel asset growth and generate future profits. As to nonearning asset levels, while the California real estate environment remains weak, based on transactions in progress we are reasonably confident that nonperforming assets will further decrease in the coming quarter."
 SFFed Corp., with assets of $3.3 billion, is the holding company for San Francisco Federal Savings and Loan Association, which operates 35 branch offices and 13 loan centers throughout Northern and Central California.
 NOTE: Tables attached and additional tables available upon request.
 SFFED CORP. AND SUBSIDIARY
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except per-share amounts)
 1993 1992
 For the quarter ended June 30:
 Net income $ 2,430 5,628
 Earnings per share 0.31 0.72
 Net interest income 21,822 24,446
 Interest rate margin on total assets 2.67 pct. 3.05 pct.
 Ratio of operating expense to
 average assets 1.95 pct. 1.94 pct.
 Profitability ratios (annualized):
 Return on average assets 0.30 pct. 0.71 pct.
 Return on average equity 4.87 pct. 11.90 pct.
 For the six months ended June 30:
 Income before cumulative effect of
 accounting change $ 5,640 8,526
 Cumulative effect of accounting change -- 4,000
 Net income 5,640 12,526
 Income per share before cumulative
 effect of accounting change 0.71 1.09
 Cumulative effect of accounting change
 per share -- 0.51
 Net income per share 0.71 1.60
 Net interest income 44,133 47,182
 Interest rate margin on total assets 2.72 pct. 2.90 pct.
 Ratio of operating expense to
 average assets 2.00 pct. 1.93 pct.
 Profitability ratios (annualized):
 Return on average assets 0.35 pct. 0.53 pct.(1)
 Return on average equity 5.73 pct. 9.28 pct.(1)
 At June 30:
 Assets $3,295,810 3,206,712
 Loans 2,558,265 2,546,794
 Deposits 2,321,761 2,287,570
 Stockholders' equity (net worth) 200,968 191,431
 Shares outstanding (actual number) 7,753,551 7,747,122
 Book value per share $ 25.92 24.71
 Interest rate margin on total assets 2.53 pct. 2.99 pct.
 Nonperforming assets:
 Amount $ 128,230 120,959
 Ratio to total assets 3.89 pct. 3.77 pct.
 Total loan valuation allowances:
 Amount $ 26,391 26,873
 Ratio to nonaccrual loans 54.65 pct. 36.18 pct.
 Ratio to total assets 0.80 pct. 0.84 pct.
 Ratio to gross loans 1.02 pct. 1.06 pct.
 Net worth to total assets 6.10 pct. 5.97 pct.
 Regulatory tangible capital ratio 5.52 pct. 5.38 pct.
 Risk-based capital ratio 10.18 pct. 9.26 pct.
 (1) Excludes cumulative effect of accounting change.
 SFFED CORP. AND SUBSIDIARY
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Three months ended Six months ended
 (In thousands, except per- June 30, June 30,
 share amounts) 1993 1992 1993 1992
 Interest income on loans
 and investments $ 55,018 62,931 110,053 128,713
 Interest expense on deposits
 and borrowings 33,196 38,485 65,920 81,531
 Net interest income 21,822 24,446 44,133 47,182
 Provision for loan losses 1,200 1,715 2,950 6,935
 Net interest income after provision
 for loan losses 20,622 22,731 41,183 40,247
 Other income
 Mortgage banking income 1,817 2,052 2,852 4,488
 Loan and deposit fees
 and charges 1,206 1,225 2,244 2,649
 Branch sales and closures -- -- -- 148
 Other 768 298 1,602 845
 Total 3,791 3,575 6,698 8,130
 Other expense
 Amortization of excess of
 cost over fair value of
 net assets acquired 177 175 355 350
 Provision for losses 1,775 770 3,008 1,458
 Real estate owned
 operations, net 2,484 220 3,117 94
 Operating expenses 15,691 15,298 31,451 30,630
 Total 20,127 16,463 37,931 32,532
 Income before income taxes and cumulative
 effect of a change in the method of accounting
 for income taxes 4,286 9,843 9,950 15,845
 Income tax expense 1,856 4,215 4,310 7,319
 Income before cumulative effect of a
 change in the method of accounting
 for income taxes 2,430 5,628 5,640 8,526
 Cumulative effect of a change in
 the method of accounting
 for income taxes -- -- -- 4,000
 Net income $ 2,430 5,628 5,640 12,526
 Earnings per share:
 Before cumulative effect of a change
 in the method of accounting
 for income taxes $ 0.31 0.72 0.71 1.09
 Cumulative effect of a change
 in the method of accounting
 for income taxes -- -- -- 0.51
 Net income per share $ 0.31 0.72 0.71 1.60
 SFFED CORP. AND SUBSIDIARY
 CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 (Unaudited)
 June 30, December 31, June 30,
 (In thousands) 1993 1992 1992
 ASSETS
 Cash and cash equivalents $ 147,612 144,818 146,630
 Mortgage-backed
 securities, net 420,181 312,314 357,287
 Loans receivable, net 2,558,265 2,506,875 2,546,794
 Real estate acquired
 by foreclosure 73,577 86,187 45,519
 Excess of cost over fair value
 of net assets acquired 9,785 10,139 10,423
 Other assets 86,390 100,077 100,059
 Total Assets $ 3,295,810 3,160,410 3,206,712
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Customer deposits $ 2,321,761 2,271,529 2,287,570
 Borrowings 731,967 650,575 691,268
 Other liabilities and
 accrued expenses 41,114 42,701 36,443
 Total liabilities 3,094,842 2,964,805 3,015,281
 Stockholders' equity 200,968 195,605 191,431
 Total Liabilities and
 Stockholders' Equity $ 3,295,810 3,160,410 3,206,712
 -0- 7/19/93
 /CONTACT: Marilu Rumolo-Boucher of SFFed, 415-955-3083/
 (SFFD)


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

TM -- SF005 -- 3042 07/19/93 12:21 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 19, 1993
Words:1589
Previous Article:CAMELOT CLOSES GOLDSTAR ACQUISITION
Next Article:McCLATCHY NEWSPAPERS REPORTS SECOND QUARTER EARNINGS
Topics:


Related Articles
SFFed CORP. ANNOUNCES YEAR-END 1991 AND FOURTH QUARTER EARNINGS RESULTS
SFFED CORP. REPORTS HIGHER THIRD QUARTER EARNINGS AND LOWER NON-PERFORMING ASSETS
SFFED CORP. ANNOUNCES YEAR-END 1992
SFFED CORP. ANNOUNCES FIRST QUARTER 1993 EARNINGS RESULTS
SFFED CORP. REPORTS THIRD QUARTER RESULTS
SFFed CORP. ANNOUNCES FOURTH QUARTER AND YEAR-END 1993 EARNINGS RESULTS; NONPERFORMING ASSETS DECREASE 25%
SFFED CORP. ANNOUNCES FIRST QUARTER 1995 RESULTS
SFFed CORP. ANNOUNCES SECOND QUARTER 1995 RESULTS
SFFED RELEASES JUNE CONSOLIDATED FINANCIAL HIGHLIGHTS
SFFed CORP. ANNOUNCES THIRD QUARTER 1995 RESULTS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters