[LOGO OF H.F. AHMANSON] [LOGO OF COAST]
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H.F. AHMANSON & COMPANY
ACQUISITION OF
COAST SAVINGS FINANCIAL
Continuing to Build Shareholder Value
October 6, 1997
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FORWARD LOOKING STATEMENT
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This presentation contains forward looking statements with respect to the
financial condition, results of operations and business of H.F. Ahmanson and,
assuming the consummation of the merger, a combined H.F. Ahmanson/Coast Savings
Financial including statements relating to: (a) the cost savings and accretion
to reported earnings that will be realized from the merger; (b) the impact on
revenues of the merger; and (c) the restructuring charges expected to be
incurred in connection with the merger. These forward looking statements involve
certain risks and uncertainties. Factors that may cause actual results to differ
materially from those contemplated by such forward looking statements include,
among others, the following possibilities: (1) expected cost savings from the
merger cannot be fully realized or realized within the expected time frame; (2)
revenues following the merger are lower than expected; (3) competitive pressure
among depository institutions increases significantly; (4) costs or difficulties
related to the integration of the businesses of H.F. Ahmanson and Coast Savings
Financial are greater than expected; (5) changes in the interest rate
environment reduce interest margins; (6) general economic conditions, either
nationally or in the states in which the combined company will be doing
business, are less favorable than expected; or (7) legislation or regulatory
changes adversely affect the businesses in which the combined company would be
engaged.
[LOGO OF H.F. AHMANSON] 2
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STRATEGIC AND FINANCIAL RATIONALE
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. FINANCIALLY COMPELLING
. Meaningful and immediate accretion to GAAP and cash earnings
. Attractive IRR of approximately 20%
. Maintains capital flexibility
. LOW RISK
. Friendly in-market transaction, 50% cost saves
. Proven integration skills at Ahmanson
. Compatible systems
. STRATEGICALLY ATTRACTIVE
. Ahmanson becomes #3 in overall deposit market share in California
. A fill-in strategy within Ahmanson's existing franchise
. Extends Ahmanson's consumer lending and business banking capabilities
through Coast franchise
[LOGO OF H.F. AHMANSON] 3
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TRANSACTION SUMMARY
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Ahmanson to acquire Coast Savings Financial; rights to benefits of goodwill
claim to be distributed to Coast shareholders in conjunction with this
transaction
PURCHASE PRICE PER COAST SHARE: $46.17/*/ (excluding goodwill claim)
FIXED EXCHANGE RATIO: 0.8082 Ahmanson shares for each Coast
share
STRUCTURE: Purchase accounting/Tax-free exchange
TRANSACTION VALUE: $901 million (excluding goodwill claim)
ADDITIONAL PRE-TAX RESERVES: $75 million in restructuring charges
$25 million in credit related charges
PROJECTED COST SAVINGS: $75 million pre-tax annually (50% of
Coast's 1998 expense base)
Fully implemented within 12 months of
closing
REVENUE ENHANCEMENTS: Financial accretion projection include
zero revenue enhancements
IRR: 20%
================================================================================
EPS ACCRETION: 1998 1999 2000
---- ---- ----
(Based on First Call estimates)
REPORTED: 2% 6% 7%
CASH: 6% 10% 10%
================================================================================
_______________
/*/ Based on Ahmanson's closing share price of $57.125 on October 3, 1997.
[LOGO OF H.F. AHMANSON] 4
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TRANSACTION SUMMARY
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EXPECTED CLOSING: 1st Quarter 1998
BOARD REPRESENTATION: Coast Chairman and CEO Ray Martin to
join Ahmanson's Board
GOODWILL CLAIM: Coast executive management to serve as trustees
for and have exclusive management of the Coast
goodwill claim
COAST PRO FORMA OWNERSHIP:/*/ 13%
TERMINATION FEE: $35 million
DUE DILIGENCE: Completed
____________________
/*/ Based on fully diluted shares outstanding at 6/30/97.
[LOGO OF H.F. AHMANSON] 5
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TRANSACTION PRICING MULTIPLES*
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Balance Sheet Data as of June 30, 1997
MULTIPLE OF BOOK: 1.9x
MULTIPLE OF TANGIBLE BOOK: 1.9
MULTIPLE OF 1997E EPS: (1) 17.2x
MULTIPLE OF 1998E EPS: (1) 14.2
MULTIPLE OF 1998E EPS WITH SYNERGIES: (2) 8.3x
DEPOSIT PREMIUM: 7.1%
_______________________
/*/ Based on Ahmanson's closing share price of $57.125 on October 3,
1997.
(1) Based on First Call estimates.
(2) Based on First Call estimates with fully phased-in cost savings.
[LOGO OF H.F. AHMANSON] 6
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ACCRETIVE IMMEDIATELY
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Based on First Call Estimates - Fully Diluted
($ in Millions - after tax)
YEARS ENDED DECEMBER 31,
--------------------------------------
1998/*/ 1999 2000
------------ ----------- ------------
Ahmanson Net Income Available to Common $397 $418 $439
Coast Net Income Available to Common 63 70 77
Cost Savings (After-tax) 27 47 48
Reversal of Coast's Existing Intangible Amortization 1 1 1
Amortization of Transaction Related Intangibles (23) (23) (23)
Other 1 1 0
------------ ----------- ------------
PROJECTED REPORTED NI AVAILABLE TO COMMON $466 $514 $542
Intangible Amortization 38 38 38
------------ ----------- ------------
PROJECTED CASH EARNINGS AVAILABLE TO COMMON $504 $552 $580
Projected Average Shares (millions) 119 113 106
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Ahmanson Reported EPS $3.88 $4.31 $4.78
PROJECTED REPORTED EPS 3.94 4.57 5.10
% ACCRETION 2% 6% 7%
Ahmanson Cash EPS $4.03 $4.47 $4.95
PROJECTED CASH EPS 4.26 4.90 5.45
% ACCRETION 6% 10% 10%
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_________________________
/*/ Excludes non-recurring and one-time charges of approximately to $11.6
million after-tax.
[LOGO OF H.F. AHMANSON] 7
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IMPROVED OPERATING PERFORMANCE AND RETURNS
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- ------------------------ -------------------------
Projected Projected
Efficiency Ratio/*/ Cash ROE/*/
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[GRAPH APPEARS HERE] [GRAPH APPEARS HERE]
49% 45% 43% 19% 20% 21%
1997 1998 1999 1997 1998 1999
[1997 percentages are Ahmanson only; 1998 and 1999 percentages are Ahmanson with
Coast]
_______________________
/*/ Excludes certain one-time charges and gains.
[LOGO OF H.F. AHMANSON] 8
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COST SAVINGS
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($ in Millions)
. ANNUAL COST SAVINGS OF $75 MILLION, OR 50% OF COAST'S 1998 EXPENSE
BASE, TO BE FULLY IMPLEMENTED WITHIN 12 MONTHS
1998 CSA Marginal
Expense Cost to Estimated Savings
-----------------
Estimate Operate $ %/*/
------------ ----------- ----------------------
Retail Banking $51 $25 $26 51%
Lending 21 16 5 24
Corporate Operations/Systems 24 15 9 38
Administration/Finance 54 19 35 65
------------ ----------- ---------- -----------
Total $150 $75 $75 50%
------------ ----------- ---------- -----------
___________
/*/ As a percent of Coast's projected 1998 expenses.
[LOGO OF H.F. AHMANSON] 9
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SIGNIFICANT BRANCH OVERLAP
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. 63 OF COAST'S 90 BRANCHES, OR 70%, ARE WITHIN 2 MILES OF A HOME
SAVINGS BRANCH
. $4.6 BILLION, OR 72%, OF THE DEPOSITS ARE IN THESE 63 COAST BRANCHES
COAST BRANCH BY DISTANCE TO HOME SAVINGS BRANCH
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MILES less than or equal less than or equal less than or equal less than or equal
to 0.25 to 0.50 to 1.00 to 2.00
- ------------------- -------------------- ------------------- ------------------ --------------------
California 22 30 43 63
. Northern 7 10 14 17
. Southern 15 20 29 46
% of Total Coast Branches 24% 33% 48% 70%
. Northern 26 37 52 63
. Southern 24 32 46 73
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__________________
Source: Location Targeting Consultants Database, June 1997.
[LOGO OF H.F. AHMANSON] 10
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IMPROVED CALIFORNIA DEPOSIT MARKET POSITION
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. #3 IN CALIFORNIA
. #2 IN SOUTHERN CALIFORNIA
[GRAPH APPEARS HERE]
20.3% 14.4% 9.1% 9.0% 18.9% 12.2% 10.5% 9.6%
BAC WFC AHM WAMU BAC AHM WFC WAMU
+ +
CSA CSA
CALIFORNIA SOUTHERN CALIFORNIA
___________
Source: SNL Securities, L.P., as of June 30, 1996; pro forma for subsequent
mergers and acquisitions. Southern CA includes Los Angeles, San Diego,
Riverside, San Bernardino, Ventura, Kern & Imperial counties.
[LOGO OF H.F. AHMANSON] 11
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REVENUE GROWTH OPPORTUNITIES
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BRINGS EXPANDED RANGE OF PRODUCTS AND SERVICES TO
COAST FRANCHISE
. Retail Banking
. Residential Lending
. Consumer Lending
. Business Banking
. Cash Management
. Griffin Financial Services
------------------------------------------
FINANCIAL ACCRETION PROJECTIONS
INCLUDE ZERO REVENUE ENHANCEMENTS
------------------------------------------
[LOGO OF H.F. AHMANSON] 12
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PROJECTED CAPITAL STRUCTURE
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Projected capital remains above well capitalized requirements
($ in Millions)
At June 30,1997 Adjustments Projected
--------------------- ---------------------
AHM CSA Other Acquisition at Closing
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Total Loans + MBS, Net $44,357 $8,203 $(328) $(25) $52,207
Intangibles 293 6 (14) 508 793
Total Assets 47,532 9,103 (241) 429 56,823
Total Deposits 32,742 6,413 (54) 0 39,101
Capital Securities 148 0 0 0 148
Preferred Equity 483 0 0 0 483
Common Equity 1,981 448 (70) 423 2,782
Total Equity 2,464 448 (70) 423 3,265
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Ratios:
Equity/Assets 5.18% 4.92% 5.75%
Bank Core Capital 5.78 5.33 5.30
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[LOGO OF H.F. AHMANSON] 13
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H.F. AHMANSON ACQUISITION OF COAST SAVINGS FINANCIAL
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. FINANCIALLY COMPELLING
. LOW RISK
. STRATEGICALLY ATTRACTIVE
[LOGO OF H.F. AHMANSON] 14
[LOGO OF H.F. AHMANSON]
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APPENDICES
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[LOGO OF H.F. AHMANSON] [LOGO OF COAST]
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H.F. AHMANSON & COMPANY
PRO FORMA
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CALIFORNIA DEPOSIT MARKET SHARE
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($ in Billions)
MARKET
RANK INSTITUTION SHARES DEPOSITS BRANCHES
---- --------------- ---------- ------------ -------------
1 BankAmerica Corporation 20.3% $77.8 1,034
2 Wells Fargo & Company 14.4 55.0 976
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3 PRO FORMA H.F.AHMANSON/COAST 9.1 34.7 390
================================================================================
4 Washington Mutual, Inc. 9.0 34.6 454
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-- H.F. AHMANSON 7.5 28.5 300/*/
================================================================================
5 Unionbancal Corporation 4.7 17.9 261
6 Golden West Financial Corp. 4.2 16.1 117
7 MacAndrews & Forbes Holdings 3.7 14.0 202
8 Golden State Bancorp 2.8 10.7 180
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-- COAST SAVINGS FINANCIAL 1.6 6.1 90/*/
================================================================================
9 Sanwa Bank 1.4 5.3 107
_______________
Source: SNL Securities, L.P.; data as of 6/30/96 adjusted for subsequent
mergers and acquisitions.
/*/ Adjusted for branches opened and closed through September 1997.
[LOGO OF H.F. AHMANSON] 17
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CREDIT QUALITY
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At June 30, 1997
($ in Millions)
PRO FORMA
AHMANSON COAST ADJUSTMENTS COMBINED
--------- ----- ----------- --------
Nonperforming Loans $495 $78 -- $573
Nonperforming Assets 690 128 -- 818
Loan Loss Reserve* 388 101 $25 514
NPLs/Loans + MBS 1.11% 0.95% 1.08%
NPAs/Assets 1.45 1.40 1.44
______________
/*/ Coast reserve includes GVA & specific reserves and excludes $9 million of
off-balance sheet reserves, consistent with Ahmanson's reporting
methodology.
[LOGO OF H.F. AHMANSON] 18
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LOAN AND MORTGAGE BACKED SECURITIES PORTFOLIO COMPARISON
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At June 30, 1997
($ in Billions)
AHMANSON COAST COMBINED
--------------- --------------- ---------------
BALANCE % BALANCE % BALANCE %
------- ------ ------- ------ ------- ------
1-4 Family $32.8 73% $6.4 78% $39.2 74%
Multi-Family 9.7 22 1.3 15 11.0 21
Commercial
Real Estate 1.2 3 0.6 7 1.8 3
Consumer Loans 0.9 2 0.0 0 0.9 2
Other Loans 0.1 0 0.0 0 0.1 0
------- ------ ------- ------ ------- ------
Total (gross) $44.7 100% $8.3 100% $53.0 100%
------- ------ ------- ------ ------- ------
[LOGO OF H.F. AHMANSON] 19
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LOAN ORIGINATION COMPARISON
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For the Six Months Ended June 30, 1997
($ in Billions)
AHMANSON COAST COMBINED
--------------- --------------- ---------------
BALANCE % BALANCE % BALANCE %
------- ------ ------- ------ ------- ------
1-4 Family $1.6 64% $0.9 100% $2.5 73%
Multi-Family 0.5 20 0.0 0 0.5 15
Consumer Loans 0.4 16 0.0 0 0.4 12
------- ------ ------- ------ ------- ------
Total $2.5 100% $0.9 100% $3.4 100%
======= ====== ======= ====== ======= ======
[LOGO OF H.F. AHMANSON] 20
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DEPOSIT PORTFOLIO COMPARISON
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At June 30, 1997
($ in Billions)
AHMANSON COAST COMBINED
--------------------------- ---------------------------- ---------------------------
BALANCE % RATE BALANCE % RATE BALANCE % RATE
--------- ------- ------- ---------- ------- ------- --------- ------- -------
Checking $
. Non Interest $1.0 3% 0.00% $0.4 6% 0.00% $1.4 4% 0.00%
. Interest 2.2 7 0.99 0.4 7 2.80 2.6 7 1.31
Money Market and
Passbook 7.4 23 3.12 0.6 9 2.84 8.0 20 3.10
Terms 22.1 67 5.43 5.0 78 5.27 27.1 69 5.40
--------- ------- ------- ---------- ------- ------- --------- ------- -------
Total Deposits $32.7 100% 4.44% $6.4 100% 4.55% $39.1 100% 4.46%
========= ======= ======= ========== ======= ======= ========= ======= =======
# of Checking Accounts(000s) 851 288 1,139
# of Total Accounts(000s) 2,569 618 3,187
# of ATMs 469 106 575
# of Branches 370 90 460
# of Households Served (000s) 1,641 418 2,059
[LOGO OF H.F. AHMANSON] 21
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LOAN AND MBS PORTFOLIO COMPOSITION
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June 30, 1997
($ in Millions)
[PIE CHART APPEARS HERE]
COAST
- -----
Multi-Family 15%
Commercial Real Estate 7%
1-4 Family 78%
------
$8,304
------
[PIE CHART APPEARS HERE]
PRO FORMA AHMANSON
- ------------------
Multi-Family 21%
Consumer 2%
Commercial Real Estate 3%
1-4 Family 74%
-------
$53,049
-------
[PIE CHART APPEARS HERE]
AHMANSON
- --------
Multi-Family 22%
Consumer 2%
Commercial Real Estate 3%
1-4 Family 73%
-------
$44,745
-------
[LOGO OF H.F AHMANSON] 22
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DEPOSIT COMPOSITION
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June 30, 1997
($ in Millions)
[PIE CHART APPEARS HERE]
COAST
- -----
Term 78%
Noninterest Checking 6%
Interest Checking 7%
Money Market & Passbook 9%
------
$6,413
------
[PIE CHART APPEARS HERE]
PRO FORMA AHMANSON
- ------------------
Term 69%
Noninterest Checking 4%
Interest Checking 7%
Money Market & Passbook 20%
-------
$39,155
-------
[PIE CHART APPEARS HERE]
AHMANSON
- --------
Term 67%
Noninterest Checking 3%
Interest Checking 7%
Money Market & Passbook 23%
-------
$32,742
-------
[LOGO OF H.F. AHMANSON] 23
[LOGO OF H.F. AHMANSON]
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H.F. AHMANSON & COMPANY
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INITIATIVES TO ENHANCE SHAREHOLDER VALUE
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. Lower credit costs
. Higher fee income
. Expense control
. Active capital management
. Franchise consolidation and development
[LOGO OF H. F. AHMANSON] 25
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IMPROVING CREDIT DRIVES SHAREHOLDER VALUE
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($ in Millions)
--------------------------- -----------------------------
DECLINING NPAs DECREASING CREDIT COSTS/*/
--------------------------- -----------------------------
[GRAPH APPEARS HERE] [GRAPH APPEARS HERE]
$1,200 $80
$949 $977 $954 $898 $846 $793 $691 $655 $63 $72 $61 $61 $67 $46 $40
$800 $70
$400 $60
$0 $50
$40
$30
$20
$10
$0
Dec-95 Mar-96 Jun-96 Sep-96 Dec-96 Mar-97 Jun-97 Aug-97 4Q95 1Q96 2Q96 3Q96 4Q96 1Q97 2Q97
__________________
/*/ Loan loss provision and REO expenses.
[LOGO OF H.F. AHMANSON] 26
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IMPROVING OPERATING PERFORMANCE
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($ in Millions)
--------------------------- -----------------------------
LOWER G&A EXPENSE HIGHER FEE INCOME
--------------------------- -----------------------------
[GRAPH APPEARS HERE] [GRAPH APPEARS HERE]
$199 $193 $190 $190 $188 $187 $180 $27 $31 $34 $44 $46 $46
$200 $50
$180 $40
$160 $30
$140 $20
$120 $10
$100 $ 0
4Q95 1Q96 2Q96 3Q96 4Q96 1Q97 2Q97 1Q96 2Q96 3Q96 4Q96 1Q97 2Q97
--------------------------- -----------------------------
IMPROVED EFFICIENCY POWER OF STOCK BUYBACK
--------------------------- -----------------------------
[GRAPH APPEARS HERE] [GRAPH APPEARS HERE]
58.9% 53.8% 52.8% 53.1% 49.5% 49.1% 48.7% 64% 98%
60% 120%
50% 100%
40% 80%
30% 60%
20% 40%
10% 20%
0% 0%
1995 1Q96 2Q96 3Q96 4Q96 1Q97 2Q97 NET FULLY
INCOME DILUTED
EPS
__________________ __________________
3Q96 excludes SAIF recap & FIB acquisition charges. Six months 1997 includes branch sales gain and net GWF
costs. June YTD - 1997 % increase over 1996
[LOGO OF H.F. AHMANSON] 27
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IMPROVING RETURNS
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---------------------------
RETURN ON ASSETS
---------------------------
[GRAPH APPEARS HERE]
0.90%
0.51% 0.56% 0.60%/*/ 0.73% 0.76%/*/ 0.78%/*/ 0.82%/*/
0.60%
0.30%
0.00%
1Q96 2Q96 3Q96 4Q96 1Q97 2Q97 2Q97
CASH
-----------------------------
RETURN ON EQUITY
-----------------------------
[GRAPH APPEARS HERE]
20.00%
8.60% 9.73% 10.28%/*/ 14.71% 15.69%/*/ 15.89%/*/ 17.86%/*/
15.00%
10.00%
5.00%
0.00%
1Q96 2Q96 3Q96 4Q96 1Q97 2Q97 2Q97
CASH
__________________
/*/ Excludes certain one-time charges and gains.
[LOGO OF H.F. AHMANSON] 28
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FINANCIAL GOALS
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GAAP ROE-18%
Efficiency Ratio - maintain at 50% or better
EPS Growth
Capital - remain "well capitalized"
[LOGO OF H.F. AHMANSON] 29