Exhibit 99
Press Release Dated October 29, 1998
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Date: October 29, 1998
Contact: Larry R. Goddard
Investor Relations Department
(402) 390-6553
FOR IMMEDIATE RELEASE
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Omaha, Nebraska (October 29, 1998)--Commercial Federal Corporation (NYSE:
CFB) today announced operating earnings of $28.9 million, or $.49 per diluted
share, for the first quarter of its 1999 fiscal year--an increase of 11 percent
compared with operating earnings of $26.1 million, or $.46 per diluted share,
for the first quarter of fiscal 1998. During the first quarter of fiscal 1999,
the Company consummated its acquisitions of AmerUs Bank and First Colorado
Bancorp, Inc. (First Colorado). The AmerUs Bank acquisition was accounted for as
a purchase. The First Colorado acquisition was accounted for as a pooling of
interests and, therefore, the Company's historical consolidated financial
statements, per share amounts and other financial data have been restated for
all periods prior to this acquisition to include the accounts and results of
operations of First Colorado Operating earnings do not include the effect of
merger-related and other nonrecurring charges as discussed below.
The Company reported net income of $15.1 million, or $.25 per diluted
share, for the first quarter of fiscal 1999, compared with net income of $26.0
million, or $.46 per diluted share, for the first quarter of fiscal 1998. The
first quarter fiscal 1999 results include merger-related and other nonrecurring
charges totaling $17.2 million ($13.8 million after-tax or $.24 per diluted
share), primarily associated with the Company's acquisition of First Colorado
Bancorp, Inc.
Commercial Federal's net interest income, after provision for loan and
lease losses, for the first quarter of fiscal 1999, was $71.8 million, compared
with $66.0 million for the prior year's first quarter, an increase of 8.8
percent. Non-interest income increased to $26.9 million
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for the first quarter of fiscal 1999, from $23.0 million for the first quarter
of fiscal 1998, an increase of over 17 percent.
"Commercial Federal's core operations continued to improve, with net
interest income increasing 8.8 percent and non-interest income increasing over
17 percent," said Chairman of the Board and Chief Executive Officer William A.
Fitzgerald. "We are now in the process of integrating the operations of our
acquisitions into the Company and are moving forward to enhance returns in
future quarters. In the first nine months of 1998, the number of households
served by Commercial Federal increased to 699,000 from 412,000, an increase of
70 percent, giving us many additional opportunities to cross-sell our Community
Banking services."
At the end of the first quarter, stockholders' equity increased by $147.8
million from September 30, 1997, to reach $913.9 million. At September 30, 1998,
Commercial Federal's book value per common share was $15.13 and total assets
were $11.1 billion, compared to September 30, 1997, with $13.49 per common share
and total assets of $10.2 billion.
During the first quarter of fiscal 1999, two previously announced
acquisitions were completed, AmerUs Bank, headquartered in Des Moines, Iowa,
with assets of approximately $1.3 billion, deposits of approximately $950
million and operating 47 branches, and First Colorado Bancorp, Inc., parent
company of First Federal Bank of Colorado, headquartered in Lakewood, Colorado,
with assets of approximately $1.6 billion, deposits of approximately $1.2
billion and operating 27 branches.
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During the current quarter, Commercial Federal entered into a definitive
agreement to acquire Midland First Financial, parent company of Midland Bank, a
Missouri-based, privately held, commercial bank, headquartered in Lee's Summit,
Missouri, that operates eight offices in the Kansas City metropolitan area, with
assets of approximately $397 million and deposits of approximately $352 million.
This transaction is subject to regulatory approvals and is anticipated to close
during the quarter ended March 1999.
Commercial Federal Corporation is the parent company of Commercial Federal
Bank which currently operates 242 retail branches in Iowa (77), Colorado (43),
Nebraska (42), Kansas (41), Oklahoma (20), Missouri (8), Arizona (7), Minnesota
(3), and South Dakota (1). In addition to retail banking, Commercial Federal
operations include mortgage banking, consumer and business financing, insurance,
trust and investment services.
Commercial Federal shares are traded on the New York Stock Exchange under
the symbol "CFB."
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