-----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, TK8Mzv0I/yG9BH1pRR7u8/1sOJKhK1vCGnBzJqpdG8i/th7drx4mHtvrtwYtPxgF KpMwIDj1dgjENm1b+I4MfA== 0000903423-98-000016.txt : 19980123 0000903423-98-000016.hdr.sgml : 19980123 ACCESSION NUMBER: 0000903423-98-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980121 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980122 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: COAST SAVINGS FINANCIAL INC CENTRAL INDEX KEY: 0000841074 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 954196764 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-10264 FILM NUMBER: 98510557 BUSINESS ADDRESS: STREET 1: 1000 WILSHIRE BLVD CITY: LOS ANGELES STATE: CA ZIP: 90017-2457 BUSINESS PHONE: 2133622000 MAIL ADDRESS: STREET 1: 8433 FALLBROOK AVENUE CITY: WEST HILLS STATE: CA ZIP: 91304 8-K 1 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): January 21, 1998 (January 21, 1998) COAST SAVINGS FINANCIAL, INC. - ------------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) Delaware 1-10264 95-4196764 - ------------------------------------------------------------------- (State or Other (Commission (IRS Employer Jurisdiction File Number) Identification No.) of Incorporation) 1000 Wilshire Boulevard Los Angeles, California 90017-2457 - ------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (213) 362-2000 ---------------- Not Applicable - ------------------------------------------------------------------- (former name or former address, if changed since last report) Item 5. Other Events. On January 21, 1998, Coast Savings Financial, Inc. ("Coast") issued a press release announcing its earnings results for the period October 1, 1997 to December 31, 1997 and the year ended December 31, 1997. The press release issued by Coast on January 21, 1998 is included as Exhibit 99.1 hereto and is incorporated herein by reference. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibits. 99.1 Press Release issued by Coast Savings Financial, Inc. on January 21, 1998 SIGNATURES 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. Date: January 21, 1998 COAST SAVINGS FINANCIAL, INC. (Registrant) By: /s/ Ray Martin ---------------------- Name: Ray Martin Title: Chairman of the Board and Chief Executive Officer EXHIBIT INDEX 99.1 Press Release issued by Coast Savings Financial, Inc. on January 21, 1998. EX-99.1 2 [Coast Savings Logo] NEWS RELEASE Contact: Mark Neal FOR RELEASE ON WEDNESDAY, (213) 362-2242 JANUARY 21, 1998 AT 8:45 AM EDT COAST ANNOUNCES RECORD CORE AND NET EARNINGS Los Angeles, January 21, 1998 -- Coast Savings Financial, Inc. (NYSE & PSE: CSA), the holding company of Coast Federal Bank, FSB, reported today that net earnings were $12.1 million for the quarter ended December 31, 1997, compared to $9.6 million for the fourth quarter of 1996. Diluted net earnings per share were $.62 for the latest quarter, compared to $.51 per share for the year-earlier period. The latest quarter's results include an after-tax charge of $4.5 million or $.23 per diluted share associated with stock performance-based incentive plans. The Company's net earnings for the year ended December 31, 1997 were a record $57.2 million or $2.97 per diluted share, compared to $10.8 million or $.57 for the year ended December 31, 1996. Net earnings for 1997 include a one-time tax benefit of $9.0 million or $.47 per diluted share and an after-tax charge of $7.8 million or $.41 per diluted share resulting from the significant stock price increase associated with the previously announced proposed merger with H.F. Ahmanson & Company. Net earnings for 1996 included an after-tax charge of $23.5 million or $1.24 per diluted share related to the one-time special assessment to recapitalize the industry's Savings Association Insurance Fund. "The past year was marked by several significant developments," stated Ray Martin, chairman and chief executive officer. "The Company reported record core and net earnings for the year. In addition, the Company's improved asset quality and the strengthening California economy led to the lowest level of non-performing assets and credit costs in nearly a decade." -1- As of December 31, 1997, Coast's core and risk-based capital ratios were 6.0 and 12.3 percent, respectively, each of which exceeded the regulatory thresholds necessary to be designated a "well capitalized" institution. Nonperforming assets (defined as the sum of nonaccrual loans and foreclosed real estate owned) were $99.3 million or 1.12 percent of assets at December 31, 1997, compared to $124.1 million or 1.43 percent of assets at December 31, 1996. Loan originations for the fourth quarter of 1997 totaled $397 million, essentially all of which were single family adjustable rate mortgages. At December 31, 1997, Coast had 98 percent of its portfolio in adjustable rate loans, and its one-year gap ratio - a measure of interest rate exposure - was a positive 3 percent. Coast's net interest rate spread - the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities - was 2.41 percent at December 31, 1997, compared to 2.35 percent as of December 31, 1996. Net interest income reached an all time high of $56.2 million for the latest quarter compared to the $53.8 million recorded during the quarter ended December 31, 1996. As a result of the substantial increase in Coast's stock price associated with the proposed merger and other market developments, the fourth quarter's results include a $7.7 million charge to reflect the increased liability associated with the Company's stock performance-based incentive plans. Excluding this charge, operating expenses were $36.7 million for the three months ended December 31, 1997, compared to $38.1 million for the three-month period ended December 31, 1996. The total of loan servicing fees and charges and retail banking fees was $13.4 million for the latest three months, compared to $12.2 million for the year-earlier quarter. As a result of the items summarized above, Coast's pretax core profitability (defined as net interest income before provision for loan losses less operating expenses plus loan servicing fees and charges and the recurring portion of other income) reached a record high of $32.9 million for the latest quarter compared to -2- $27.8 million recorded during the three-month period ended December 31, 1996. Core earnings for the year were a record $126.0 million compared to $108.7 million for the year earlier. Stockholders' equity increased to $510.2 million or $26.27 per share at December 31, 1997, compared to $424.5 million or $22.84 per share at December 31, 1996. Tangible stockholders' equity was $505.1 million or $26.01 per share at the end of the latest quarter, compared to $418.3 million or $22.51 per share at September 30, 1996. Coast Savings Financial, Inc., is the holding company of Coast Federal Bank, FSB. With assets of $8.8 billion, Coast is one of the nation's largest thrift institutions and provides consumer banking services and residential real estate loans through 91 retail banking offices located throughout California. ### (Tables follow) -3- COAST SAVINGS FINANCIAL, INC. AND SUBSIDIARIES Consolidated Financial Highlights (Unaudited) (dollars in thousands) December 31, December 31, 1997 1996 -------------- -------------- Assets - ------ Cash and due from banks $ 142,811 $ 138,861 Investment securities 183,855 234,628 Loans receivable 5,946,644 5,856,107 Mortgage-backed securities 2,180,334 2,043,270 Real estate held for sale 43,174 41,259 Federal Home Loan Bank stock 101,120 90,882 Land and depreciable assets 83,940 95,010 Interest receivable and other assets 156,346 198,697 Goodwill 5,182 6,238 -------------- -------------- $ 8,843,406 $ 8,704,952 ============== ============== Liabilities and Stockholders' Equity - ------------------------------------ Liabilities: Deposits $ 6,418,194 $ 6,356,448 Federal Home Loan Bank advances 1,321,500 1,104,200 Other borrowings 469,803 699,518 Income taxes 7,830 4,747 Other liabilities 115,836 115,508 -------------- -------------- 8,333,163 8,280,421 -------------- -------------- Stockholders' equity: Common stock 194 186 Additional paid-in capital 293,423 265,055 Unrealized gain on securities available for sale 2,887 2,778 Retained earnings 213,739 156,512 -------------- -------------- 510,243 424,531 -------------- -------------- $ 8,843,406 $ 8,704,952 ============== ============== Regulatory Capital Ratios Risk-based 12.29% 10.90% Core 5.96 5.33 Tangible 5.96 5.33 ============== ============== Weighted Average Interest Rates Loans receivable and mortgage- backed securities 7.33% 7.30% Investment securities 6.07 6.25 -------------- -------------- Interest-earning assets 7.29 7.25 -------------- -------------- Deposits 4.50 4.59 Borrowings 6.25 6.03 -------------- -------------- Interest-bearing liabilities 4.88 4.90 -------------- -------------- Net spread 2.41% 2.35% ============== ============== One Year Gap (the cumulative difference between repricing assets and liabilities) to total assets 3% 6% ============== ============== COAST SAVINGS FINANCIAL, INC. AND SUBSIDIARIES Consolidated Financial Highlights (Unaudited) (dollars in thousands except per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, ------------------ ------------------- 1997 1996 1997 1996 ---- ---- ---- ---- Interest income: Loans and mortgage-backed securities $ 153,217 $ 147,973 $ 608,744 $ 582,240 Investment securities 5,945 5,586 23,837 21,210 --------- --------- --------- --------- 159,162 153,559 632,581 603,450 --------- ---------- --------- --------- Interest expense: Deposits 73,933 73,027 294,095 285,764 Borrowings 29,034 26,768 116,045 102,886 --------- ---------- ---------- --------- 102,967 99,795 410,140 388,650 --------- ---------- ---------- --------- Net interest income 56,195 53,764 222,441 214,800 Provision for loan losses 4,000 40,000 25,000 70,000 --------- ---------- ---------- --------- Net interest income after provision for loan losses 52,195 13,764 197,441 144,800 --------- ---------- ---------- --------- Noninterest Income: Loan servicing fees and charges 2,858 3,000 11,787 12,671 Other 10,591 9,247 39,099 37,434 --------- ---------- ---------- --------- 13,449 12,247 50,886 50,105 --------- ---------- ---------- --------- Noninterest expense: General and administrative expenses 44,463 38,099 160,861 158,601 SAIF special assessment - - - 41,978 Real estate operations, net 68 508 3,260 3,881 Amortization of goodwill 259 270 1,056 1,094 --------- ---------- ---------- --------- 44,790 38,877 165,177 205,554 --------- ---------- ---------- --------- Earnings (loss) before income tax expense (benefit) 20,854 (12,866) 83,150 (10,649) Income tax expense (benefit) 8,759 (22,505) 25,923 (21,485) --------- ---------- ---------- --------- Net earnings $ 12,095 $ 9,639 $ 57,227 $ 10,836 ========= ========== ========== ========= Diluted earnings per share of common stock $ 0.62 $ 0.51 $ 2.97 $ 0.57 ========= ========== ========== ========= Shares of common stock outstanding at end of period 19,420,931 18,584,717 ========== ===========
COAST SAVINGS FINANCIAL, INC. AND SUBSIDIARIES NONPERFORMING ASSETS (dollars in thousands) Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, 1997 1997 1997 1997 1996 1996 1996 1996 1995 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Nonaccrual loans $ 56,079 $ 64,727 $ 78,738 $ 81,799 $ 82,804 $ 80,742 $ 74,620 $ 93,288 $ 81,351 Foreclosed real estate owned 43,174 46,886 49,112 36,371 41,259 50,286 57,762 39,999 31,696 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Nonperforming assets $ 99,253 $ 111,613 $ 127,850 $ 118,170 $ 124,063 $ 131,028 $ 132,382 $ 133,287 $ 113,047 ========== ========== ========== ========== ========== ========== ========== ========== ========== General valuation allowance (GVA) $ 93,000 $ 93,000 $ 93,000 $ 93,000 $ 93,000 $ 73,000 $ 73,000 $ 82,000 $ 82,000 ========== ========== ========== ========== ========== ========== ========== ========== ========== Total assets $8,843,406 $9,040,413 $9,102,743 $8,797,075 $8,704,952 $8,549,032 $8,350,710 $8,239,880 $8,251,680 ========== ========== ========== ========== ========== ========== ========== ========== ========== Ratio of nonperforming assets to total assets 1.12% 1.23% 1.40% 1.34% 1.43% 1.53% 1.59% 1.62% 1.37% ========== ========== ========== ========== ========== ========== ========== ========== ========== Ratio of GVA to nonperforming assets 94% 83% 73% 79% 75% 56% 55% 62% 73% ========== ========== ========== ========== ========== ========== ========== ========== ==========
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