H. F. AHMANSON & COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(dollars in thousands except per share data)
For the Three Months Ended For the Years Ended
December 31, September 30, December 31, December 31,
1993 1993 1992 1993 1992
Interest income:
Interest on real
estate loans $ 603,750 $ 662,079 $ 701,346 $ 2,623,139 $ 2,978,267
Interest on MBS 85,219 63,287 72,098 278,908 336,517
Interest and
dividends on
investments 29,586 26,230 24,859 101,375 114,195
_________ _________ _________ _________ _________
Total interest income 718,555 751,596 798,303 3,003,422 3,428,979
_________ _________ _________ _________ _________
Interest expense:
Deposits 309,539 322,192 384,159 1,301,063 1,738,347
Short-term borrowings 28,058 30,471 24,860 112,171 122,073
FHLB advances and
other borrowings 62,109 65,703 52,964 253,116 209,993
_________ _________ _________ _________ _________
Total interest
expense 399,706 418,366 461,983 1,666,350 2,070,413
_________ _________ _________ _________ _________
Net interest income 318,849 333,230 336,320 1,337,072 1,358,566
Provision for loan
losses 47,893 22,243 100,879 574,970 367,366
_________ _________ _________ _________ _________
Net interest income
(loss) after
provision for loan
losses 270,956 310,987 235,441 762,102 991,200
_________ _________ _________ _________ _________
Other income:
Gain on sales of
loans 35,315 13,260 23,815 80,037 62,622
Gain on sale of MBS 8,722 8,996 12,991 21,007 12,991
Loan servicing income 13,978 14,355 17,014 58,854 72,498
Other fee income 29,936 31,607 30,394 125,259 112,051
Operations of real
estate held for
development and
investment (39,930) (1,992) (15,357) (229,300) (58,359)
Other 36,515 1,417 1,367 40,730 6,695
_________ _________ _________ _________ _________
84,536 67,643 70,224 96,587 208,498
_________ _________ _________ _________ _________
Other expenses:
General and
administrative
expenses 219,280 206,052 196,913 827,462 753,257
Operations of real
estate ownedheld
for sale 39,361 40,457 68,804 212,130 129,153
Amortization of
goodwill 18,999 6,701 6,846 39,163 27,674
_________ _________ _________ _________ _________
277,640 253,210 272,563 1,078,755 910,084
_________ _________ _________ _________ _________
Earnings (loss) before
provision for income
taxes (benefit),
extraordinary loss
and cumulative
effect of accounting
change 77,852 125,420 33,102 (220,066) 289,614
Provision for income
taxes (benefit) 27,747 55,431 17,583 ( 82,034) 133,222
_________ _________ _________ _________ _________
Earnings (loss) before
extraordinary loss
and cumulative
effect of accounting
change 50,105 69,989 15,519 (138,032) 156,392
Extraordinary loss on
early extinguishment
of debt (net of
taxes) (21,607) - - (21,607) -
Cumulative effect of
change in accounting
for income taxes - - - - 47,677
_________ _________ _________ _________ _________
Net earnings (loss) $28,498 $69,989 $15,519 $(159,639) $ 204,069
========= ========= ========= ========= =========
Earnings (loss) per
common share -
primary and fully
diluted:
Earnings (loss) before
extraordinary loss
and cumulative
effect of accounting
change $0.32 $ 0.50 $ 0.10 $ (1.51) $1.19
Extraordinary loss on
early
extinguishment of
debt (0.18) - - (0.18) -
Cumulative effect of
change in
accounting for
income taxes - - - - 0.41
_________ _________ _________ _________ _________
Net earnings (loss) $0.14 $0.50 $ 0.10 $( 1.69) $1.60
========= ========= ========= ========= =========
Common shares
outstanding,
weighted average 117,284,812 117,275,683 116,846,594 117,270,295 116,915,342
Return on average
assets 0.23% 0.56% 0.13% (0.32)% 0.42%
Return on average
equity 3.87% 10.09% 2.25% ( 5.58)% 7.49%
Return on average
tangible equity* 7.56% 13.24% 3.94% ( 5.01)% 10.42%
Ratio of G&A expenses
to average assets 1.76% 1.64% 1.60% 1.66 % 1.54%
<FN>
*Net earnings excluding amortization of goodwill as a percentage of average equity excluding goodwill.
H. F. AHMANSON & COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(in thousands)
Assets December 31, 1993 September 30, 1993 December 31, 1992
Cash and amounts due from banks $ 843,944 $ 806,670 $ 832,680
Securities purchased under agreements to resell 2,637,677 2,781,370 1,076,800
Other short-term investments 48,507 51,010 46,110
_________ _________ _________
Total cash and cash equivalents 3,530,128 3,639,050 1,955,590
Other investment securities 11,524 5,745 6,860
Investment in stock of Federal Home Loan Bank
(FHLB) 364,392 362,579 400,113
Mortgage-backed securities (MBS) held to maturity 4,064,128 255,475 339,963
MBS available for sale 2,855,869 3,212,126 3,575,545
Loans receivable less allowance for possible
losses of $438,786 (December 31, 1993),
$443,027 (September 30, 1993) and
$434,114 (December 31, 1992) 37,529,079 39,806,880 38,643,300
Loans available for sale 175,289 183,553 319,575
Accrued interest receivable 166,848 194,546 205,034
Real estate held for development and investment
less allowance for possible losses of $341,705
(December 31, 1993), $309,267 (September 30,
1993) and $154,743 (December 31, 1992) 443,657 498,798 674,300
Real estate owned held for sale less allowance for
possible losses of $66,453 (December 31, 1993),
$87,446 (September 30, 1993) and $47,970
(December 31, 1992) 179,862 312,489 452,971
Premises and equipment 673,879 677,644 686,693
Goodwill 428,444 452,997 478,017
Other assets 399,403 418,971 402,546
Income taxes 48,743 117,780 -
_________ _________ _________
$ 50,871,245 $ 50,138,633 $ 48,140,507
========= ========= =========
Liabilities and Stockholders' Equity
Deposits $ 38,018,653 $ 38,901,710 $ 39,273,192
Short-term borrowings under agreements to
repurchase securities sold 4,807,767 2,830,674 2,186,262
Other short-term borrowings 169,854 274,700 130,000
FHLB advances and other borrowings 3,901,724 4,087,604 2,662,321
Other liabilities 1,024,216 1,107,319 1,118,058
Income taxes - - 25,030
_________ _________ _________
Total liabilities 47,922,214 47,202,007 45,394,863
Stockholders' equity 2,949,031 2,936,626 2,745,644
_________ _________ _________
$ 50,871,245 $ 50,138,633 $ 48,140,507
========= ========= =========
H. F. AHMANSON & COMPANY AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
(dollars in thousands except per share data)
At End of Period December 31, September 30, December 31,
1993 1993 1992
Total assets $ 50,871,245 $ 50,138,633 $ 48,140,507
Investment portfolio $ 3,062,100 $ 3,200,704 $ 1,529,883
Loans receivable and mortgage-backed securities
(MBS) $ 44,624,365 $ 43,458,034 $ 42,878,383
Allowance for possible loan losses $ 438,786 $ 443,027 $ 434,114
ARMs included in loans receivable and MBS $ 41,838,441 $ 41,798,901 $ 40,671,029
Deposits $ 38,018,653 $ 38,901,710 $ 39,273,192
Borrowings $ 8,879,345 $ 7,192,978 $ 4,978,583
Stockholders' equity $ 2,949,031 $ 2,936,626 $ 2,745,644
Book value per common share $ 19.61 $ 19.50 $ 22.04
Tangible book value per common share $ 15.94 $ 15.63 $ 17.94
Total common shares outstanding 116,879,943 116,868,967 116,649,459
Average Interest Rates:
Yield on loans and MBS 6.50% 6.69% 7.22%
Yield on investment portfolio 3.83% 3.52% 3.48%
Yield on interest-earning assets 6.33% 6.47% 7.09%
Cost of deposits 3.14% 3.21% 3.60%
Cost of borrowings 4.73% 5.18% 5.99%
Cost of interest-bearing liabilities 3.44% 3.52% 3.87%
Earnings spread 2.89% 2.95% 3.22%
Effective net spread 2.95% 3.00% 3.21%
Home Savings of America capital ratios:
Tangible 4.97% 4.86% 4.85%
Core 5.72% 5.61% 5.77%
Risk-based 12.59% 12.14% 12.99%
For the Three Months Ended:
Net interest income $ 318,849 $ 333,230 $ 336,320
Provision for loan losses $ 47,893 $ 22,243 $ 100,879
Earnings before extraordinary loss $ 50,105 $ 69,989 $ 15,519
Net earnings $ 28,498 $ 69,989 $ 15,519
Net earnings (loss) per fully diluted common
share $ 0.14 $ 0.50 $ 0.10
Dividends per common share $ 0.22 $ 0.22 $ 0.22
Loans originated $ 3,570,561 $ 2,907,635 $ 3,429,867
For the Years Ended:
Net interest income $ 1,337,072 $ 1,358,566
Provision for loan losses $ 574,970 $ 367,366
Earnings (loss) before extraordinary loss and
cumulative effect of accounting change $ (138,032) $ 156,392
Net earnings (loss) $ (159,639) $ 204,069
Net earnings (loss) per fully diluted common
share $ (1.69) $1.60
Dividends per common share $ 0.88 $ 0.88
Loans originated $ 11,575,944 $ 12,169,346
Loans purchased $ 1,062,447 $ 4,362