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SFFed CORP. ANNOUNCES YEAR-END 1991 AND FOURTH QUARTER EARNINGS RESULTS

 SFFed CORP. ANNOUNCES YEAR-END 1991 AND
 FOURTH QUARTER EARNINGS RESULTS
 SAN FRANCISCO, Jan. 22 /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, 1991, of $14.7 million, or $1.89 per share, compared with net income of $2.0 million, or $0.26 per share for 1990.
 For the fourth quarter of 1991 the company reported net income of $4.0 million, or $0.52 per share, compared with a net loss of $8.9 million ($1.15 per share) for the year-earlier period. The 1991 quarter includes $3.7 million of provisions for possible losses on loans and real estate. The fourth quarter 1990 loss resulted from a $19.3 million charge to earnings as the company increased its reserves for possible losses on loans and real estate, which was partially offset by a pretax gain of $5.4 million on the sale of substantially all the company's home equity line portfolio.
 The increase in net income for the 1991 periods compared with the year-earlier periods reflects lower levels of provisions for possible losses on loans and real estate, higher net interest income, higher gains on sales of mortgage loans and lower operating expenses partially offset by the absence of the 1990 non-recurring gain on the sale of the home equity line portfolio.
 Commenting on the results for the year, Roger L. Gordon, chairman and chief executive officer of SFFed Corp., said, "We are pleased with the improvement in the company's ability to produce operating earnings. The company's net interest margin on total assets for the entire year was 2.73 percent compared with 2.48 percent in 1990, but falling interest rates have narrowed this margin to 2.61 percent at the end of 1991 compared with 2.54 percent a year earlier. We also continue to make progress in reducing operating expenses, which decreased 12.1 percent for the fourth quarter and 7.2 percent for 1991 compared with the year earlier. We will continue to focus on this area and additional reductions are anticipated in the future."
 Net interest income increased 8 percent, or $6.8 million to $91.6 million in 1991 compared with $84.8 million in 1990. For the fourth quarter of 1991, net interest income of $20.9 million was $0.9 million lower than for the year-earlier period primarily due to a reduction in the interest margin for that period. Operating expenses in the fourth quarter of 1991 decreased by $2.1 million to $15.0 million and by $5.0 million to $63.8 million for the year.
 During 1991 the company recognized the Federal income tax benefit associated with the excess of the Association's book basis loan and foreclosed real estate reserves over its tax basis loss reserves. This benefit reduced income tax expense for the fourth quarter and the year 1991 by $0.8 million and $2.2 million, respectively.
 Provisions for possible losses on loan and real estate charged to operations were $3.7 million and $17.1 million, respectively, for the fourth quarter and the year 1991 compared with $19.3 million and $23.8 million for the year-earlier periods. At Dec. 31, 1991, nonperforming assets equaled 3.73 percent of total assets, compared with 1.50 percent at Dec. 31, 1990. At Dec. 31, 1991, 65 percent of nonperforming assets consisted of delinquent loans secured by non- residential real estate, non-residential real estate acquired through foreclosure, and residential construction loans.
 Commenting on the increase in nonperforming assets and the level of charges to operations for provisions for possible losses on loan and real estate, Gordon said, "This was the result of the ongoing economic recession. The downturn in business has resulted in a weak real estate market compared with previous years, especially the market for non-residential real estate. As a result of this weakness, the company has suffered some losses in 1991 and has increased the level of its loan valuation allowances to 0.82 percent of gross loans at the end of 1991 from 0.71 percent a year earlier. While we do not foresee any immediate significant decrease in nonperforming assets, we are hopeful that such assets will not increase over current levels. While nonperforming assets are at historical highs, we are comfortable that our reserves for possible losses are adequate to cover any ultimate losses."
 At Dec. 31, 1991, stockholders' equity (net worth) of $178.8 million ($23.10 per share) represented 5.39 percent of total assets compared with $164.0 million ($21.18 per share) and 4.87 percent of total assets at Dec. 31, 1990. At Dec. 31, 1991, loans totalled $2.59 billion and deposits totalled $2.44 billion. The Association's regulatory core and tangible capital ratios were 4.97 percent and its risk-based capital ratio was 8.59 percent at Dec. 31, 1991, exceeding fully phased-in regulatory capital requirements.
 SFFed Corp., with assets of $3.3 billion, is the holding company for San Francisco Federal Savings and Loan Association, which operates 36 branch offices and 10 loan centers throughout Northern and Central California.
 NOTE: Following tables and additional tables available upon request.
 SFFED CORP. AND SUBSIDIARY
 Dec. 31, 1991
 FINANCIAL HIGHLIGHTS
 (Dollars in thousands, except per share amounts)
 1991 1990
 For the quarter ended Dec. 31:
 Net income $ 4,003 (8,901)
 Earning (loss) per share 0.52 (1.15)
 Net interest income 20,855 21,721
 Interest rate margin on
 total assets (percent) 2.52 2.56
 Ratio of operating expense
 to average assets (percent) 1.77 1.95
 Profitability ratios (annualized):
 Return on average assets (percent) 0.47 N/M
 Return on average equity (percent) 8.97 N/M
 For the year ended Dec. 31:
 Net income $ 14,698 2,035
 Earnings per share 1.89 0.26
 Net interest income 91,557 84,812
 Interest rate margin on
 total assets (percent) 2.73 2.48
 Ratio of operating expense
 to average assets (percent) 1.93 2.02
 Profitability ratios (annualized):
 Return on average assets (percent) 0.44 0.06
 Return on average equity (percent) 8.58 1.20
 At Dec. 31:
 Assets $ 3,317,458 3,365,931
 Loans 2,590,961 2,559,375
 Deposits 2,440,134 2,506,628
 Stockholders' equity (net worth) 178,787 163,951
 Shares outstanding (actual number) 7,741,038 7,741,038
 Book value per share $ 23.10 21.18
 Interest rate margin
 on total assets (percent) 2.61 2.54
 Nonperforming assets:
 Amount $ 123,751 50,607
 Ratio to total assets (percent) 3.73 1.50
 Total loan valuation allowances:
 Amount $ 21,262 18,595
 Ratio to total assets (percent) 0.64 0.55
 Ratio to gross loans (percent) 0.82 0.71
 Net worth to total assets (percent) 5.39 4.87
 Regulatory tangible capital ratio (percent) 4.97 4.48
 Risk-based capital ratio (percent) 8.59 7.85
 N/M -- Not meaningful
 SFFED CORP. AND SUBSIDIARY
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Three months ended Year ended
 Dec. 31 Dec. 31
(In thousands, 1991 1990 1991 1990


except per share amounts)
 Interest income on loans
 and investments $ 72,096 86,035 311,758 344,303
 Interest expense on deposits
 and borrowings 51,241 64,314 220,201 259,491
 Net interest income 20,855 21,721 91,557 84,812
 Provision for loan losses 2,456 12,686 13,080 15,928
 Net interest income
 after provision for
 loan losses 18,399 9,035 78,477 68,884
 Other income
 Loan and deposit servicing
 fees and charges 2,044 2,365 8,504 8,807
 Gain on sale of real estate
 loans, mortgage-backed
 securities and other
 assets, net 1,459 681 5,335 3,723
 Gain on sale of consumer
 loans -- 5,387 -- 7,348
 Branch sales and closures (169) -- 192 --
 Other 712 657 1,808 2,995
 Total 4,046 9,090 15,839 22,873
 Other expense
 Amortization of excess of
 cost over value of net
 assets acquired 175 177 701 709
 Provision for losses 1,285 6,625 4,069 7,886
 Operating expenses 15,014 17,075 63,751 68,729
 Total 16,474 23,877 68,521 77,324
 Income (loss) before
 income taxes 5,971 (5,752) 25,795 14,433
 Income tax expense 1,968 3,149 11,097 12,398
 Net income (loss) $ 4,003 (8,901) 14,698 2,035
 Earnings (loss) per share $ 0.52 (1.15) 1.89 0.26
 SFFED CORP. AND SUBSIDIARY
 Condensed Consolidated Statements of Financial Condition
 (Unaudited)
 Dec. 31,
 (In thousands) 1991 1990
 ASSETS
 Cash and cash equivalents $ 164,210 161,411
 Mortgage-backed securities, net 410,520 509,971
 Loan receivable, net 2,590,961 2,559,375
 Real estate acquired by
 foreclosure 36,769 7,446
 Excess of cost over value of
 net assets acquired 10,773 11,803
 Other assets 104,225 115,925
 Total Assets $3,317,458 3,365,931
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Customer deposits $2,440,134 2,506,628
 Borrowings 649,710 634,778
 Other liabilities and
 accrued expenses 48,827 60,574
 Total Liabilities 3,138,671 3,201,980
 Stockholders' Equity 178,787 163,951
 Total Liabilities and
 Stockholders' Equity $3,317,458 3,365,931
 -0- 1/22/92
 /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


DG -- SF001 -- 2116 01/22/92 09:31 EST
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