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SFFed CORP. ANNOUNCES FIRST QUARTER 1992 EARNINGS RESULTS

 SFFed CORP. ANNOUNCES FIRST QUARTER 1992 EARNINGS RESULTS
 SAN FRANCISCO, April 21 /PRNewswire/ -- SFFed Corp. (NASDAQ: SFFD), the holding company for San Francisco Federal Savings and Loan Association, today announced net income for the quarter ended March 31, 1992 of $6.9 million, or $0.89 per share, compared with net income of $4.7 million, or $0.60 per share, for the year-earlier period. Earnings from operations before provisions for losses and taxes were $11.8 million in the first quarter of 1992, compared with $9.2 million in the year-earlier period. Net income for the 1992 quarter included a one-time credit of $4 million, related to a change in the method of accounting for income taxes, which was offset by a $5.9 million provision for problem assets.
 Provisions for possible losses on loans and real estate were $5.9 million in the 1992 quarter compared with $1 million in the year- earlier period. Commenting on this increase, Roger L. Gordon, chairman and chief executive officer of SFFed Corp., said, "Our plan has been to increase the ratio of loss reserves to total loans to one percent. We have taken advantage of the one-time first quarter accounting adjustment to bring loss reserves to this targeted range now, rather than to build reserves to that level over an extended period of time.
 "While nonperforming assets have increased 2.7 percent from Dec. 31, 1991 levels, the rate of increase has slowed significantly and we have recently seen signs that real estate conditions may be improving. If this is the case and nonperforming asset levels remain constant or begin to decline, the provisions for loan losses should be significantly lower in future quarters. I am pleased to note that the company has provided a total of $22.1 million of loan and real estate loss provisions over the past four quarters while remaining profitable. I believe this points out the underlying earnings strength of the company."
 In February 1992, the Financial Accounting Standards Board issued Financial Accounting Standard No. 109, Accounting for Income Taxes (FAS 109) which is effective for fiscal years beginning after Dec. 15, 1992, with earlier application being encouraged. The company has adopted the provisions of FAS 109 effective Jan. 1, 1992 and the $4 million credit reflects the cumulative effect of the provisions of FAS 109 on the company's operations through Dec. 31, 1991.
 The company's net interest margin on total assets for the 1992 quarter was 2.77 percent compared with 2.65 percent for the year- earlier period. However, a decrease in the level of assets compared with the 1991 period resulted in net interest income of $22.7 million for the 1992 quarter being $0.3 million less than for the year-earlier period.
 Gains on sales of mortgage loans for the 1992 quarter were $1 million higher than for the year-earlier quarter. During the quarter the company originated $223 million of loans compared with $176 million for the year-earlier quarter.
 Operating expenses of $15.2 million were $1.6 million, or 9.3 percent lower than for the year-earlier period and represented 1.91 percent of average assets compared with 2.03 percent in the 1991 quarter, despite the reduction in overall asset levels. Gordon said, "We are pleased with the reduction in operating expense and believe that our continuing focus in this area will lead to further reductions in the future."
 At March 31, 1992 stockholders' equity (net worth) of $185.8 million ($23.99 per share) represented 5.76 percent of total assets compared with $168.6 million ($21.78 per share) and 5.01 percent of total assets at March 31, 1991. At March 31, 1992 loans totalled $2.55 billion and deposits totalled $2.33 billion. The Association's regulatory core and tangible capital ratios at March 31, 1992 were 5.25 percent and its risk-based capital ratio was 9.10 percent and the Association exceeds all fully phased-in regulatory capital requirements.
 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 ten loan centers throughout Northern and Central California.
 SFFED CORP. AND SUBSIDIARY
 March 31, 1992
 Financial Highlights
 (Dollars in thousands, except per share amounts)
 1992 1991
 For the quarter ended March 31:
 Income before cumulative effect
 of accounting change $2,898 4,658
 Cumulative effect of
 accounting change 4,000 --
 Net income 6,898 4,658
 Income per share before
 cumulative effect of
 accounting change 0.37 0.60
 Cumulative effect of accounting
 change per share 0.52 --
 Net income per share 0.89 0.60
 Net interest income 22,736 23,014
 Interest rate margin
 on total assets
 (in percent) 2.77 2.65
 Ratio of operating
 expense to average assets
 (in percent) 1.91 2.03
 Profitability ratios (annualized):
 Return on average
 assets (in percent) 0.36(A) 0.56
 Return on average
 equity (in percent) 6.42(A) 11.36
 At March 31:
 Assets $3,222,666 3,367,728
 Loans 2,551,229 2,589,353
 Deposits 2,331,433 2,433,609
 Stockholders' equity (net worth) 185,774 168,609
 Shares outstanding (actual number) 7,744,406 7,741,038
 Book value per share $23.99 21.78
 Interest rate margin
 on total assets (in percent) 3.23 2.58
 Nonperforming assets:
 Amount $127,164 66,371
 Ratio to total assets (in percent) 3.95 1.97
 Total loan valuation allowances:
 Amount $26,412 18,967
 Ratio to total assets (in percent) 0.82 0.56
 Ratio to gross loans (in percent) 1.04 0.72
 Net worth to total assets (in percent) 5.76 5.01
 Regulatory tangible capital
 ratio (in percent) 5.25 4.63
 Risk-based capital ratio (in percent) 9.10 8.05
 (A) Excludes cumulative effect of accounting change.
 SFFED CORP. AND SUBSIDIARY
 Condensed Consolidated Statements of Operations
 (Unaudited)
 Three months ended
 (In thousands, except per March 31,
 share amounts) 1992 1991
 Interest income on loans and investments $ 65,782 82,623
 Interest expense on deposits and borrowings 43,046 59,609
 Net interest income 22,736 23,014
 Provision for loan losses 5,220 774
 Net interest income after provision for
 loan losses 17,516 22,240
 Other income
 Loan and deposit servicing fees and charges 2,029 1,940
 Gain on sale of real estate loans, mortgage-
 backed securities and other assets, net 1,879 909
 Gain on branch sales and closures 148 361
 Other 499 266
 Total other income 4,555 3,476
 Other expense
 Amortization of excess of cost over value of
 net assets acquired 175 176
 Provision for losses 688 219
 Operating expenses 15,206 16,772
 Total other expense 16,069 17,167
 Income before income taxes and cumulative
 effect of a change in the method of
 accounting for income taxes 6,002 8,549
 Income tax expense 3,104 3,891
 Income before cumulative effect of a change in
 the method of accounting for income taxes 2,898 4,658
 Cumulative effect of a change in the method
 of accounting for income taxes 4,000 --
 NET INCOME $ 6,898 4,658
 Earnings per share:
 Before cumulative effect of a change
 in the method of accounting for
 income taxes $ 0.37 0.60
 Cumulative effect of a change in the
 method of accounting for income taxes 0.52 --
 Net income per share $ 0.89 0.60
 SFFED CORP. AND SUBSIDIARY
 Condensed Consolidated Statements of Financial Condition
 (Unaudited)
 (In thousands) March 31, Dec. 31, March 31,
 1992 1991 1991
 ASSETS
 Cash and cash equivalents $ 133,421 164,210 151,413
 Mortgage-backed securities,
 net 387,881 410,520 489,759
 Loans receivable, net 2,551,229 2,590,961 2,589,353
 Real estate acquired by
 foreclosure 39,028 36,769 10,949
 Excess of cost over value
 of net assets acquired 10,598 10,773 11,298
 Other assets 100,509 104,225 114,956
 Total Assets $ 3,222,666 3,317,458 3,367,728
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Customer deposits $ 2,331,433 2,440,134 2,433,609
 Borrowings 655,471 649,710 694,848
 Other liabilities and
 accrued expenses 49,988 48,827 70,662
 Total liabilities 3,036,892 3,138,671 3,199,119
 Stockholders' equity 185,774 178,787 168,609
 Total Liabilities and
 Stockholders' Equity $ 3,222,666 3,317,458 3,367,728
 -0- 4/21/92
 NOTE: Additional tables available upon request.
 /CONTACT: Paul Weinberg, 415-955-5814; or Marilu Rumolo-Boucher, 415-955-3083, both of SFFed Corp./
 (SFFD) CO: SFFed Corp. ST: California IN: FIN SU: ERN


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