-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Cw/5cyENLfAIJ9SwHA4xKvGaKYx/jT25rsBqpzG3Xb5yvtQsurgLKxj1opZp1xSK uudPddML9g2d/kS/7UnLKw== 0000898430-97-004198.txt : 19971007 0000898430-97-004198.hdr.sgml : 19971007 ACCESSION NUMBER: 0000898430-97-004198 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19971006 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19971006 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AHMANSON H F & CO /DE/ CENTRAL INDEX KEY: 0000771667 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 950479700 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-08930 FILM NUMBER: 97690944 BUSINESS ADDRESS: STREET 1: 4900 RIVERGRADE RD CITY: IRWINDALE STATE: CA ZIP: 91706 BUSINESS PHONE: 8189606311 8-K 1 FORM 8-K - DATED 10/06/97 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 _____________________ Date of Report (Date of earliest event reported): October 6, 1997 (October 5, 1997) H. F. Ahmanson & Company - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-8930 95-0479700 - ----------------------- ---------------------------------- --------------------- (State of (Commission File Number) (IRS Employer incorporation) Identification No.) 4900 Rivergrade Road, Irwindale, California 91706 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (626) 960-6311 ------------------------------- (Registrant's telephone number, including area code) N/A - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) -1- Item 5. Other Events. ------------ On October 5, 1997, H. F. Ahmanson & Company, a Delaware corporation (the "Registrant"), and Coast Savings Financial Inc., a Delaware Corporation ("Coast"), entered into an agreement and plan of merger pursuant to which Coast will merge with and into the Registrant. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. ------------------------------------------------------------------ (a) Not Applicable. (b) Not Applicable. (c) Exhibits -------- The following exhibits are filed with this Current Report on Form 8-K: Exhibit Number Description 99(a) Press release, dated October 6, 1997. 99(b) Analyst's Presentation -2- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. H. F. AHMANSON & COMPANY BY:/s/ Madeleine A. Kleiner _______________________________________ Madeleine A. Kleiner Senior Executive Vice President and General Counsel Date: October 6, 1997 -3- EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99(a) Press release, dated October 6, 1997. 99(b) Analyst's Presentation -4- EX-99.A 2 PRESS RELEASE DATED OCTOBER 6, 1997 [LETTERHEAD OF H.F. AHMANSON & COMPANY] FOR IMMEDIATE RELEASE Contacts: - --------------------- Ahmanson: --------- 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 Coast'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 counties. 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. ### 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 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. 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 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 $ 52,580 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 91 Households Served (000's) 1,641 418 Employees 9,254 1,500
EX-99.B 3 ANALYST'S PRESENTATION [LOGO OF H.F. AHMANSON] [LOGO OF COAST] - -------------------------------------------------------------------------------- H.F. AHMANSON & COMPANY ACQUISITION OF COAST SAVINGS FINANCIAL Continuing to Build Shareholder Value October 6, 1997 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FORWARD LOOKING STATEMENT - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- STRATEGIC AND FINANCIAL RATIONALE - -------------------------------------------------------------------------------- . 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 - ------------------------------------------------------------------------------- TRANSACTION SUMMARY - ------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- TRANSACTION SUMMARY - -------------------------------------------------------------------------------- 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 - -------------------------------------------------------------------------------- TRANSACTION PRICING MULTIPLES* - -------------------------------------------------------------------------------- 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 $57.125 on October 3, 1997. (1) Based on First Call estimates. (2) Based on First Call estimates with fully phased-in cost savings. [LOGO OF H.F. AHMANSON] 6 - -------------------------------------------------------------------------------- ACCRETIVE IMMEDIATELY - -------------------------------------------------------------------------------- Based on First Call Estimates - Fully Diluted ($ 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 - -------------------------------------------------------------------------------------------------------- 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% - --------------------------------------------------------------------------------------------------------
_________________________ /*/ Excludes non-recurring and one-time charges of approximately to $11.6 million after-tax. [LOGO OF H.F. AHMANSON] 7 - -------------------------------------------------------------------------------- IMPROVED OPERATING PERFORMANCE AND RETURNS - -------------------------------------------------------------------------------- - ------------------------ ------------------------- Projected Projected Efficiency Ratio/*/ Cash ROE/*/ - ------------------------ ------------------------- [GRAPH APPEARS HERE] [GRAPH APPEARS HERE] 49% 45% 43% 19% 20% 21% 1997 1998 1999 1997 1998 1999 [1997 percentages are Ahmanson only; 1998 and 1999 percentages are Ahmanson with Coast] _______________________ /*/ Excludes certain one-time charges and gains. [LOGO OF H.F. AHMANSON] 8 - -------------------------------------------------------------------------------- COST SAVINGS - -------------------------------------------------------------------------------- ($ 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 - -------------------------------------------------------------------------------- SIGNIFICANT BRANCH OVERLAP - -------------------------------------------------------------------------------- . 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 - --------------------------------------------------------------------------------------------------------- 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 - ---------------------------------------------------------------------------------------------------------
__________________ Source: Location Targeting Consultants Database, June 1997. [LOGO OF H.F. AHMANSON] 10 - -------------------------------------------------------------------------------- IMPROVED CALIFORNIA DEPOSIT MARKET POSITION - -------------------------------------------------------------------------------- . #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 - ------------------------------------------------------------------------------- REVENUE GROWTH OPPORTUNITIES - -------------------------------------------------------------------------------- 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 - ------------------------------------------------------------------------------- PROJECTED CAPITAL STRUCTURE - ------------------------------------------------------------------------------- Projected capital remains above well capitalized requirements ($ in Millions)
At June 30,1997 Adjustments Projected --------------------- --------------------- AHM CSA Other Acquisition at Closing - ------------------------------------------------------------------------------------------------------------------- Total Loans + MBS, Net $44,357 $8,203 $(328) $(25) $52,207 Intangibles 293 6 (14) 508 793 Total Assets 47,532 9,103 (241) 429 56,823 Total Deposits 32,742 6,413 (54) 0 39,101 Capital Securities 148 0 0 0 148 Preferred Equity 483 0 0 0 483 Common Equity 1,981 448 (70) 423 2,782 Total Equity 2,464 448 (70) 423 3,265 - ------------------------------------------------------------------------------------------------------------------ Ratios: Equity/Assets 5.18% 4.92% 5.75% Bank Core Capital 5.78 5.33 5.30 - -------------------------------------------------------------------------------------------------------------------
[LOGO OF H.F. AHMANSON] 13 - -------------------------------------------------------------------------------- H.F. AHMANSON ACQUISITION OF COAST SAVINGS FINANCIAL - -------------------------------------------------------------------------------- . FINANCIALLY COMPELLING . LOW RISK . STRATEGICALLY ATTRACTIVE [LOGO OF H.F. AHMANSON] 14 [LOGO OF H.F. AHMANSON] - -------------------------------------------------------------------------------- APPENDICES - -------------------------------------------------------------------------------- [LOGO OF H.F. AHMANSON] [LOGO OF COAST] - -------------------------------------------------------------------------------- H.F. AHMANSON & COMPANY PRO FORMA - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CALIFORNIA DEPOSIT MARKET SHARE - -------------------------------------------------------------------------------- ($ in Billions)
MARKET RANK INSTITUTION SHARES DEPOSITS BRANCHES ---- --------------- ---------- ------------ ------------- 1 BankAmerica Corporation 20.3% $77.8 1,034 2 Wells Fargo & Company 14.4 55.0 976 - -------------------------------------------------------------------------------- 3 PRO FORMA H.F.AHMANSON/COAST 9.1 34.7 390 ================================================================================ 4 Washington Mutual, Inc. 9.0 34.6 454 - -------------------------------------------------------------------------------- -- H.F. AHMANSON 7.5 28.5 300/*/ ================================================================================ 5 Unionbancal Corporation 4.7 17.9 261 6 Golden West Financial Corp. 4.2 16.1 117 7 MacAndrews & Forbes Holdings 3.7 14.0 202 8 Golden State Bancorp 2.8 10.7 180 - -------------------------------------------------------------------------------- -- COAST SAVINGS FINANCIAL 1.6 6.1 90/*/ ================================================================================ 9 Sanwa Bank 1.4 5.3 107
_______________ Source: SNL Securities, L.P.; data as of 6/30/96 adjusted for subsequent mergers and acquisitions. /*/ Adjusted for branches opened and closed through September 1997. [LOGO OF H.F. AHMANSON] 17 - -------------------------------------------------------------------------------- CREDIT QUALITY - -------------------------------------------------------------------------------- At June 30, 1997 ($ 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 $9 million of off-balance sheet reserves, consistent with Ahmanson's reporting methodology. [LOGO OF H.F. AHMANSON] 18 - -------------------------------------------------------------------------------- LOAN AND MORTGAGE BACKED SECURITIES PORTFOLIO COMPARISON - -------------------------------------------------------------------------------- At June 30, 1997 ($ 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% $53.0 100% ------- ------ ------- ------ ------- ------
[LOGO OF H.F. AHMANSON] 19 - -------------------------------------------------------------------------------- LOAN ORIGINATION COMPARISON - -------------------------------------------------------------------------------- For the Six Months Ended June 30, 1997 ($ 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% $3.4 100% ======= ====== ======= ====== ======= ======
[LOGO OF H.F. AHMANSON] 20 - -------------------------------------------------------------------------------- DEPOSIT PORTFOLIO COMPARISON - -------------------------------------------------------------------------------- At June 30, 1997 ($ 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% $39.1 100% 4.46% ========= ======= ======= ========== ======= ======= ========= ======= =======
# of Checking Accounts(000s) 851 288 1,139 # of Total Accounts(000s) 2,569 618 3,187 # of ATMs 469 106 575 # of Branches 370 90 460 # of Households Served (000s) 1,641 418 2,059
[LOGO OF H.F. AHMANSON] 21 - -------------------------------------------------------------------------------- LOAN AND MBS PORTFOLIO COMPOSITION - -------------------------------------------------------------------------------- June 30, 1997 ($ 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% ------- $44,745 ------- [LOGO OF H.F AHMANSON] 22 - ------------------------------------------------------------------------------- DEPOSIT COMPOSITION - ------------------------------------------------------------------------------- June 30, 1997 ($ 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% ------- $32,742 ------- [LOGO OF H.F. AHMANSON] 23 [LOGO OF H.F. AHMANSON] - -------------------------------------------------------------------------------- H.F. AHMANSON & COMPANY - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- INITIATIVES TO ENHANCE SHAREHOLDER VALUE - -------------------------------------------------------------------------------- . Lower credit costs . Higher fee income . Expense control . Active capital management . Franchise consolidation and development [LOGO OF H. F. AHMANSON] 25 - -------------------------------------------------------------------------------- IMPROVING CREDIT DRIVES SHAREHOLDER VALUE - -------------------------------------------------------------------------------- ($ 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 $0 Dec-95 Mar-96 Jun-96 Sep-96 Dec-96 Mar-97 Jun-97 Aug-97 4Q95 1Q96 2Q96 3Q96 4Q96 1Q97 2Q97
__________________ /*/ Loan loss provision and REO expenses. [LOGO OF H.F. AHMANSON] 26 - -------------------------------------------------------------------------------- IMPROVING OPERATING PERFORMANCE - -------------------------------------------------------------------------------- ($ 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 - -------------------------------------------------------------------------------- IMPROVING RETURNS - --------------------------------------------------------------------------------
--------------------------- 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 - -------------------------------------------------------------------------------- FINANCIAL GOALS - -------------------------------------------------------------------------------- GAAP ROE-18% Efficiency Ratio - maintain at 50% or better EPS Growth Capital - remain "well capitalized" [LOGO OF H.F. AHMANSON] 29 -----END PRIVACY-ENHANCED MESSAGE-----