Exhibit 99.1
[AHMANSON LOGO]
FOR IMMEDIATE RELEASE
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Contacts:
Ahmanson:
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Media: Mary Trigg
(626) 814-7922
Investor: Steve Swartz
(626) 814-7986
Coast: Mark Neal
- ----- (213) 362-2242
AHMANSON TO ACQUIRE COAST SAVINGS
- -Forms Third Largest California Financial Institution;
Immediately Accretive to 1998 Earnings-
- -Coast Shareholders to Receive Ahmanson Stock and Certificates
Relating to Court's Goodwill Litigation-
IRWINDALE and LOS ANGELES, CA, October 6, 1997 -- H.F. Ahmanson &
Company (NYSE:AHM), parent company of Home Savings of America,
and Coast Savings Financial, Inc. (NYSE:CSA), parent company of
Coast Federal Bank, today jointly announced the signing of a
definitive agreement for Ahmanson to acquire Los Angeles-based
Coast. The combined company would be California's third largest
financial institution, with more than $39 billion in deposits.
Under the terms of the agreement, Coast shareholders will receive
a tax-free exchange of 0.8082 shares of Ahmanson common stock for
each share of Coast common stock. In addition, Coast shareholders
will receive tradable certificates representing the right to
receive an amount equal to 100 percent of any after tax proceeds
(net of expenses) from Coast's pending "goodwill" litigation
against the U.S. government.
Excluding the value of the goodwill litigation certificates, the
exchange ratio represents a price of $46.17 for each Coast share,
based on Ahmanson's closing stock price on October 3, 1997,
resulting in a purchase price of $901 million. The Ahmanson stock
to be issued represents a multiple of 1.9 times Coast's book
value at June 30, 1997, and a deposit premium of approximately
7.1 percent.
Ahmanson Chairman and Chief Executive Officer Charles R. Rinehart
said, "This transaction is good for California since it creates
an even stronger competitor headquartered in Southern California.
For over one hundred years, Home Savings has been a major
contributor to the growth of California. The addition of Coast
enhances our already strong presence in key markets throughout
the state, as well as our ability to offer financial products to
both individuals and small businesses. Coast's customers will
benefit from a wider array of consumer banking products and the
new availability of business banking products and services.
"This transaction is also consistent with our desire to build
shareholder value," he added. "It yields meaningful and immediate
accretion to earnings while preserving our ability to continue
buying back shares. In addition, Coast fits directly into our
strategy of being a full-service consumer and small business
bank."
The transaction will be accounted for as a purchase.
Following the merger, Ahmanson will have total assets of $56.6
billion. It will also have $39.2 billion in deposits, and serve
more than two million households through 460 financial service
centers in California, Florida and Texas. Home Savings' share of
California's retail deposit market will increase to 9.1 percent
from 7.5 percent.
Coast Chairman and Chief Executive Officer Ray Martin said, "We
are proud to have Coast join forces with Home Savings at this
time. Their top-flight board and management team have
demonstrated a strong and savvy commitment to enhancing
shareholder value, and we believe this combination will
accelerate their well-underway transformation into a regional
banking powerhouse. We are also very pleased that the transaction
will preserve all the potential benefits of Coast's 'supervisory
goodwill' lawsuit for our shareholders."
Rinehart will serve as Chairman and CEO of the combined company.
Martin will join the Ahmanson Board of Directors.
Coast's 90 retail branches, with deposits totaling $6.4 billion
at June 30, 1997, are located in both Northern and Southern
California. Coast has 28 branches in Northern California in San
Francisco, Monterey, Santa Cruz, Santa Clara, Contra Costa and
Alameda countries. In Southern California, its 62 branches are
located in Los Angeles, Orange, Riverside, San Bernardino and
Ventura counties.
Coast currently has 1,500 employees compared to Ahmanson's 9,300
employees. Job loss is expected to be minimal because of the high
number of jobs currently open at Home Savings stemming from its
recent hiring restriction and the company's normal attrition.
The acquisition has been unanimously approved by the boards of
directors of both companies. It is contingent upon regulatory
approval and Coast shareholder approval, and is expected to close
in the first quarter of 1998.
H.F. Ahmanson & Company, with more than $47 billion in assets, is
the parent company of Home Savings of America, one of the
nation's largest full-service consumer and small business banks.
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This release 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
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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.
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AHMANSON/COAST
AT A GLANCE
June 30, 1997 Figures (all dollar figures in millions, except per
share amounts). Financial ratios reflect six month data.
AHMANSON COAST COMBINED
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Total Assets $47,532 $9,103 $56,635
Total Deposits $32,742 $6,413 $39,155
California Market
Share (Deposits) 7.5% 1.6% 9.1%
California Market
Position (Deposits) 4 9 3
Total Loans & Mortgage-
backed securities $44,357 $8,203 $52,560
Net Income (Second Qtr.) $115.7 $12.6
Net Income (First Half) $218.7 $24.9
Return on Average
Assets - 6 months 0.90% 0.56%
Return on Average
Equity - 6 months 18.3% 11.4%
Nonperforming Assets $690.5 $127.9
Nonperforming Assets/
Total Assets 1.45% 1.40%
Stockholders' Equity/Assets 5.18% 4.92%
Book Value Per Share $20.35 $24.06
Closing Stock Price
Per Share 10/3/97 $57.13 $54
Fully diluted Shares
Outstanding (000's) 10/3/97 106,255 18,616
Market Capitalization 10/3/97 $6,070.3 $1,005.3
Branch Locations 9/26/97 370 90
Households Served (000's) 1,641 418
Employees 9,254 1,500