<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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): April 22, 1998
----------------
H. F. Ahmanson & Company
--------------------------------------------------
(Exact name of registrant as specified in charter)
Delaware 1-8930 95-0479700
--------------- ------------ -------------------
(State or other (Commission (IRS employer
jurisdiction of file number) identification no.)
incorporation)
4900 Rivergrade Road, Irwindale, California 91706
------------------------------------------- ----------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (626) 960-6311
---------------
Not applicable
----------------------
(Former name or former address, if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS.
On April 22, 1998, H. F. Ahmanson & Company (the "Company"),
issued a press release reporting its results of operations
during the quarter ended March 31, 1998.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
99.1 Press release dated April 22, 1998 reporting results
of operations during the quarter ended March 31, 1998.
<PAGE>
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: April 22, 1998
H. F. AHMANSON & COMPANY
/s/ George Miranda
----------------------------
George Miranda
First Vice President and
Principal Accounting Officer
<PAGE>
H. F. AHMANSON & COMPANY
4900 Rivergrade Road
Irwindale, California 91706 HOME SAVINGS OF AMERICA
SAVINGS OF AMERICA NEWS
FOR IMMEDIATE RELEASE CONTACTS:
- ---------------------
MEDIA: MARY TRIGG
(626) 814-7922
INVESTOR: STEVE SWARTZ
(626) 814-7986
AHMANSON REPORTS FIRST QUARTER RESULTS
- EPS $0.97, $1.09 Excluding Acquisition-Related Charges -
- Coast Integration Completed -
- Mortgage Lending Registers Sharp Increase -
Irwindale, CA, April 22, 1998 -- H. F. Ahmanson & Company, (NYSE:AHM),
parent company of Home Savings of America, today reported first quarter 1998
net income of $114.3 million, 11% above the $103.1 million reported in the
first quarter of 1997 and 15% above the $99.5 million reported in the fourth
quarter of 1997. On a diluted common share basis, first quarter 1998 earnings
were $0.97 per share, 11% above the $0.87 per share in the first quarter of
1997 and 9% above the $0.89 per share in the fourth quarter of 1997.
First quarter 1998 net income and earnings per diluted common share
include an after-tax transaction-related charge (the Coast charge) of
$13.7 million, or $0.12 per share, associated with the acquisition of Coast
Savings Financial, Inc. (Coast), which was consummated on February 13, 1998.
The first quarter of 1997 includes the after-tax gain of $9.5 million, or
$0.09 per share, resulting from the sale of the Home Savings deposit branches
in Arizona (the Arizona gain).
Excluding the Coast charge and the Arizona gain, first quarter 1998 net
income was $128.0 million, 37% above the $93.6 million reported in the first
quarter of 1997 and 29% above the $99.5 million reported in the fourth quarter
of 1997. On a diluted common share basis, first quarter 1998 earnings would
have been $1.09 per share, 40% above the $0.78 per share in the first quarter
of 1997 and 22% above the $0.89 per share in the fourth quarter of 1997.
<PAGE>
Ahmanson and Home Savings Chairman and Chief Executive Officer Charles R.
Rinehart said, "Strong first quarter earnings reflect excellent performance in
our mortgage lending, retail banking and consumer lending businesses as well
as continued improvement in our asset quality. In addition, we successfully
integrated the Coast acquisition within four weeks from the date of closing
that transaction with no disruption to our ongoing new business development.
"On March 17, 1998, we jointly announced a merger with Washington Mutual.
We are enthusiastic about the future combination of our companies. The
successful consummation of the merger will be a top priority for our
management and staff in the months ahead."
Return on average equity (ROE) was 15.9% for the first quarter of 1998,
compared to 17.2% and 16.6% in the first and fourth quarters of 1997,
respectively. ROE, excluding the Coast charge and the Arizona gain, would
have been 17.8% in the first quarter of 1998, compared to 15.7% in the first
quarter of 1997.
Cash earnings (earnings before the amortization of goodwill and
qualifying core deposit intangibles) for the first quarter of 1998 were
$120.1 million, 12% above the $106.9 million reported in the first quarter of
1997 and 16% above the $103.3 million reported in the fourth quarter of 1997.
On a diluted common share basis, first quarter 1998 cash earnings were $1.02
per share, 13% above the $0.90 per share in the first quarter of 1997 and 11%
above the $0.92 per share in the fourth quarter of 1997.
Cash earnings, excluding the Coast charge and the Arizona gain, were
$133.8 million in the first quarter of 1998, 37% above the $97.4 million in
the first quarter of 1997. On a diluted common share basis, first quarter
1998 cash earnings were $1.14 per share, 39% above the $0.82 per share in the
first quarter of 1997 and 24% above the $0.92 per share in the fourth quarter
of 1997.
Cash ROE was 19.3% for the first quarter of 1998, compared to 19.3% and
18.5% in the first and fourth quarters of 1997, respectively. Cash ROE,
excluding the Coast charge and the Arizona gain, was 21.5% for the first
quarter of 1998, compared to 17.7% in the first quarter of 1997.
<PAGE>
RESULTS OF OPERATIONS
NET INTEREST INCOME
Net interest income was $340.9 million in the first quarter of 1998,
compared to $317.6 million in the first quarter of 1997 and $306.4 million in
the fourth quarter of 1997. The increases from the year-ago and prior
quarters were due primarily to an increase in average interest-earning assets
with the completion of the Coast transaction, as well as increases in the net
interest margin.
In the first quarter of 1998, the average net interest margin increased
to 2.77%, compared to 2.64% in the first quarter of 1997 and 2.76% in the
fourth quarter of 1997. At March 31, 1998, the net interest margin was 2.81%,
compared to 2.74% at December 31, 1997. The increase in the net interest
margin was due to several factors. There were increases in the indices to
which substantially all of the real estate loan and MBS portfolios are tied.
In addition, there was an increase in deposits as a percentage of total
interest-costing liabilities and an increase in excess interest-earning assets
primarily as a result of the Coast acquisition.
GAIN ON SALE OF LOANS
During the first quarter of 1998, the company had a gain on the sale of
loans of $11.8 million, compared to gains of $8.0 million and $3.5 million in
the first and fourth quarters of 1997, respectively. The increased gain on
sale resulted from the origination and sale of a greater number of fixed rate
residential loans originated for sale. During 1998's first quarter, the
company originated $1.7 billion of single family residential mortgage loans,
78% of which were fixed rate loans originated for sale.
BANKING AND OTHER FEE INCOME
During the first quarter of 1998, banking and other fee income (banking
and other retail service fees and other fee income) reached $46.9 million,
compared to $45.7 million in the first quarter of 1997 and $46.2 million in
the fourth quarter of 1997. Total banking and other fee income in the first
quarter 1998 reflects the addition of the Coast customer base in the middle of
February. In the month of March 1998, Griffin Financial Services (Griffin)
core sales set a new monthly milestone as the average daily volume reached
$5.2 million, compared to $3.7 million in March 1997. At March 31, 1998, the
Griffin mutual funds and annuities had approximately $1.3 billion in assets
under management, compared to $741 million at March 31, 1997.
<PAGE>
GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses (G&A), excluding the pre-tax Coast
charge of $23.2 million, totaled $193.5 million in the first quarter of 1998,
compared to $186.8 million in the first quarter of 1997 and $188.2 million in
the fourth quarter of 1997. The Coast charge consisted of expenses related to
the closure and consolidation of certain Home Savings branches, certain
conversion costs and customer retention and marketing programs. The increase
in G&A, exclusive of the Coast charge, over the fourth quarter of 1997 is due
to the acquisition of Coast.
The efficiency ratio, which measures G&A expenses as a percentage of net
interest income and loan servicing and banking and other retail fee income,
was 47.3% in the first quarter of 1998, excluding the Coast charge, compared
to 49.1% and 51.4% in the first and fourth quarters of 1997, respectively.
CREDIT COSTS
Total credit costs (provision for loan losses and expenses for the
operations of foreclosed real estate) in the first quarter of 1998 amounted to
$16.1 million, compared to $46.3 million in the 1997 first quarter and $22.0
million in the 1997 fourth quarter. Credit costs for the first quarter of
1998 decreased by 65.3% and 26.8% from the first and fourth quarters of 1997,
respectively, as the California economy continued to improve. Net loan
charge-offs for the 1998 first quarter totaled $12.5 million, compared to
$25.7 million in the first quarter of 1997 and $13.0 million in the fourth
quarter of 1997.
At March 31, 1998, nonperforming assets totaled $703.2 million, or 1.29%
of total assets, compared to $792.7 million, or 1.63% at March 31, 1997 and
$595.3 million, or 1.28% at December 31, 1997. Included in the March 31, 1998
total are $117.8 million of nonperforming assets associated with loans and REO
acquired from Coast. Excluding the Coast related nonperforming assets, the
company would have reported a decline in nonperforming assets of $9.9 million
from year-end 1997 principally related to the payoff of two commercial and
industrial real estate loans.
At March 31, 1998, the allowances for loan losses and foreclosed real
estate were $480.7 million and $10.7 million, respectively. The ratio of the
combined allowances for losses to nonperforming assets equaled 68.8% at
March 31, 1998, compared to 50.7% at March 31, 1997, and 64.1% at
December 31, 1997.
<PAGE>
REAL ESTATE HELD FOR DEVELOPMENT
During the first quarter of 1998, the company sold an office building
located in Charlotte, North Carolina. The company also purchased property in
Ventura County, California, as part of its planned disposition of the Ahmanson
Ranch. These transactions contributed to a net decrease in REI of
$8.3 million, to $138.2 million at March 31, 1998.
LOAN FUNDINGS
In the first quarter of 1998, the company funded $2.2 billion in loans,
compared to $1.2 billion and $1.8 billion in the first and fourth quarters of
1997, respectively.
The company funded $1.9 billion of residential mortgage loans in the
first quarter of 1998, compared to $984.3 million in the year-ago quarter. In
the month of March 1998, the company funded $735.8 million in single family
residential mortgage loans.
Refinancings of residential mortgage loans totaled $1.2 billion, or 61.9%
of the total first quarter 1998 residential fundings, compared to
$377.5 million, or 38.4%, in the first quarter of 1997 and $685.6 million, or
45.3%, in the fourth quarter of 1997.
<PAGE>
As of March 31, 1998, the company estimated its most recent 3-month and
12-month Computed Prepayment Rates (CPR) of certain categories of its
$53.0 billion single family residential servicing portfolio as follows:
Percent of Single
Family Residential 3-month 12-month
Contractual Interest Rate Servicing Portfolio CPR CPR
------------------------- ------------------- ------- --------
Greater than 8.000% 12% 28% 18%
From 7.501% to 8.000% 32 15 11
From 7.001% to 7.500% 46 15 14
Below 7.001% 10 12 14
---
100%
===
The company also funded $248.3 million in consumer loans during the first
quarter of 1998, compared to $164.0 million in the first quarter of 1997 and
$247.6 million in the fourth quarter of 1997. March 1998 was a significant
month for consumer lending in that it was the first month consumer loan
fundings exceeded $100 million since inception of the program in June 1995.
In addition, the company funded $35.0 million in business loans in the
first quarter of 1998, compared to $14.7 million in the first quarter of 1997
and $28.6 million in the fourth quarter of 1997. In conjunction with its
business lending, the company provides an array of cash management products.
In the month of March 1998, the company sold 891 cash management products,
compared to 152 sales in the month of March 1997.
CAPITAL
At March 31, 1998, Home Savings of America's capital ratios exceeded the
minimum regulatory requirement to be rated "well-capitalized," which is the
highest regulatory capital standard.
On March 2, 1998, the company redeemed, at par, its $195 million 8.40%
Preferred Stock, Series C.
<PAGE>
On April 1, 1998, the company redeemed $57.5 million of Coast's
10% Senior Notes due March 1, 2000.
On March 17, 1998, the company announced that it had ceased its common
stock purchase program as a result of the proposed merger with Washington
Mutual, Inc. (Washington Mutual). The parent company had $227 million in cash
at March 31, 1998.
ACQUISITION OF COAST
On February 13, 1998, the company acquired Coast in a purchase accounting
transaction. Coast had deposits of $6.4 billion and total assets of $8.9
billion. As provided in the merger agreement, 0.8082 shares of Ahmanson
common stock were exchanged for each share of Coast common stock. Ahmanson
reissued 16,263,796 shares of its common stock held in treasury in exchange
for Coast common stock. The value of Ahmanson common stock issued was
approximately $925 million on February 13, 1998. Total intangible assets
created by this transaction were $510 million, including approximately
$85 million recorded as core deposit intangibles which are being amortized on
an accelerated basis over 10 years, with the remainder being amortized over 25
years on a straight-line basis.
The company recorded $121.3 million of pre-tax charges related to the
acquisition of Coast in the first quarter of 1998. Included in the total pre-
tax restructuring charges were $23.2 million recorded against earnings and
$98.1 million of pre-tax charges recorded as adjustments to goodwill. The
charges recorded as adjustments to goodwill included a $23.5 million writedown
on $223 million of certain Coast single family residential loans which the
company reclassified as held for sale based on management's uncertainty
regarding its intent to hold them until maturity. The remaining $74.6 million
of charges primarily represented costs incurred or expected to be incurred in
the consolidation of Coast branches, to provide severance benefits for certain
Coast employees, to convert Coast systems and operations to company standards,
and for legal, accounting and investment banking fees associated with the
acquisition. Prior to the acquisition the company had estimated that it would
incur $100 million of charges as part of the acquisition.
<PAGE>
In addition to the charges mentioned above, the company reduced the
carrying value of the loans that it has reclassified as held for sale by an
additional $5 million. This writedown was charged against the allowance for
loan losses that was acquired from Coast. As a result of this adjustment and
the $23.5 million charge noted above, the carrying value of the $223 million
of acquired loans that were reclassified was reduced to $194.5 million at
March 31, 1998.
Pursuant to the terms of the merger agreement, the company received
420,457 Contingent Payment Right certificates (CPR certificates) relating to
Coast stock appreciation rights and performance share awards exercised between
the date of the definitive agreement and the February 13, 1998 closing. On
the date of the transaction, the CPR certificates were valued at $13.88, or a
total of $5.8 million. On March 31, 1998, the closing price of the CPR
certificates on the Nasdaq exchange was $16.25. The company intends to
dispose of the CPR certificates in the future.
MERGER WITH WASHINGTON MUTUAL
On March 17, 1998, the company and Washington Mutual entered into an
Agreement and Plan of Merger, pursuant to which Ahmanson will merge with and
into Washington Mutual.
Pursuant to the merger, the company's stockholders will receive, in a
tax-free exchange, 1.12 shares of the common stock of Washington Mutual for
each share of the company's common stock. Based on the closing price of
Washington Mutual on March 16, 1998 (the last trading day before announcement
of the proposal), the exchange ratio would have produced a value of $80.36 for
each share of Ahmanson common stock, or a premium of 22.7% over the closing
market price of Ahmanson common stock on March 16, 1998. Because the exchange
ratio is fixed, this value will vary as the stock price of Washington Mutual
stock changes.
The transaction is subject to the approval of the Office of Thrift
Supervision and stockholders of both the company and Washington Mutual.
<PAGE>
FORWARD-LOOKING STATEMENT
This release contains forward-looking statements with respect to the
financial condition, results of operations, and business of H. F. Ahmanson &
Company. These forward-looking statements involve 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) changes in the interest rate environment that
may reduce interest margins; (2) general economic conditions, either
nationally or in the states in which the company will be doing business, are
less favorable than expected; or (3) legislation or regulatory changes
adversely affect the businesses in which the company would be engaged.
********
H. F. Ahmanson & Company, with $54.5 billion in assets, is the parent
company of Home Savings of America. Home Savings, a full-service consumer
bank with a deposit base of $38.4 billion, operates 409 retail deposit
branches in 3 states and 129 mortgage lending offices in 9 states offering an
array of financial products and services to consumers and small businesses.
********
Additional information about H. F. Ahmanson & Company and Home Savings of
America can be retrieved free of charge through Corporate News on the Net:
http://www.businesswire.com/cnn/ahm.shtml
For information regarding PC Banking, Home Loans, Investments, Insurance,
Business Banking and Consumer Loans, contact Home Savings' Website:
http://www.homesavings.com
<PAGE>
H. F. AHMANSON & COMPANY AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited)
(dollars in thousands except per share data)
<TABLE>
<CAPTION>
At End of Period March 31, 1998 December 31, 1997 March 31, 1997
- ---------------- ----------------- ----------------- ------------------
<S> <C> <C> <C>
Total assets $ 54,519,346 $ 46,678,752 $ 48,697,126
Investment portfolio $ 775,560 $ 976,957 $ 735,868
Loans receivable and mortgage-backed
securities (MBS) $ 50,336,028 $ 43,275,582 $ 45,338,937
ARMs included in loans receivable and MBS $ 47,597,009 $ 40,925,681 $ 43,249,938
Allowance for loan losses $ 480,749 $ 377,351 $ 387,688
Allowance for losses on REO $ 10,676 $ 11,400 $ 29,529
Deposits $ 38,363,249 $ 32,268,375 $ 34,399,125
Borrowings and trust capital securities $ 11,403,768 $ 10,977,730 $ 10,779,429
Stockholders' equity $ 3,254,533 $ 2,395,445 $ 2,398,942
Book value per common share $ 27.07 $ 20.57 $ 19.05
Tangible book value per common share $ 21.27 $ 18.79 $ 17.29
Total common shares outstanding 109,737,033 93,155,823 100,595,547
For the Three Months Ended
- --------------------------
Net interest income $ 340,850 $ 306,362 $ 317,619
Credit costs (1) $ 16,073 $ 22,030 $ 46,331
Net income (2) $ 114,303 $ 99,494 $ 103,093
Net income per diluted common share (2), (3) $ 0.97 $ 0.89 $ 0.87
Dividends per common share $ 0.22 $ 0.22 $ 0.22
Loans originated and purchased $ 2,216,933 $ 1,791,219 $ 1,162,969
Average Interest Rates:
Yield on loans and MBS 7.53% 7.51% 7.34%
Yield on investment portfolio 6.97% 6.71% 6.96%
Yield on interest-earning assets 7.52% 7.49% 7.33%
Cost of deposits 4.45% 4.46% 4.39%
Cost of borrowings and trust capital securities 6.34% 6.30% 6.22%
Cost of interest-costing liabilities 4.90% 4.92% 4.83%
Interest rate spread 2.62% 2.57% 2.50%
Net interest margin 2.77% 2.76% 2.64%
<FN>
(1) Credit costs consist of provision for loan losses and the operations of REO.
(2) Net income for the three months ended March 31, 1998 would have been $128.0 million, or $1.09
per share, before the Coast charge. Net income for the three months ended March 31, 1997
would have been $93.6 million, or $0.78 per share, before the Arizona gain.
(3) The Company adopted Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings
per Share" as of December 31, 1997. SFAS No. 128 replaces primary earnings per share ("EPS")
with basic EPS and fully diluted EPS with diluted EPS. Basic EPS is computed by dividing
income available to common stockholders by the weighted average number of common shares
outstanding for the period. Diluted EPS reflects the potential dilution of options, warrants
and convertible securities. Net income per diluted share for the three months ended March
31, 1997 has been restated to reflect the adoption of SFAS No. 128.
</FN>
</TABLE>
<PAGE>
H. F. AHMANSON & COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Assets March 31, 1998 December 31, 1997 March 31, 1997
- ------ -------------- ----------------- --------------
<S> <C> <C> <C>
Cash and amounts due from banks $ 732,599 $ 603,797 $ 540,831
Federal funds sold and securities
purchased under agreements to resell 227,600 550,200 283,800
Other short-term investments 9,364 5,110 12,160
----------- ----------- -----------
Total cash and cash equivalents 969,563 1,159,107 836,791
Other investment securities 17,103 9,669 12,408
Investment in stock of Federal Home
Loan Bank (FHLB) 521,493 411,978 427,500
MBS 14,347,949 12,791,391 14,417,249
Loans receivable 35,988,079 30,484,191 30,921,688
Accrued interest receivable 245,487 194,038 210,512
Real estate held for development and
investment (REI) 138,237 146,518 147,425
Real estate owned held for sale (REO) 183,174 162,440 233,694
Premises and equipment 420,017 364,626 412,652
Goodwill and other intangible assets 784,731 280,296 298,887
Other assets 903,513 674,498 778,320
----------- ----------- -----------
$54,519,346 $46,678,752 $48,697,126
=========== =========== ===========
Liabilities, Capital Securities of Subsidiary Trust and Stockholders' Equity
- ----------------------------------------------------------------------------
Deposits $38,363,249 $32,268,375 $34,399,125
Securities sold under agreements to
repurchase 2,025,000 1,675,000 2,325,000
Other short-term borrowings 801,963 837,861 458,640
FHLB and other borrowings 8,428,298 8,316,405 7,847,454
Other liabilities 1,316,874 954,470 1,029,512
Income taxes 180,922 82,732 90,118
----------- ----------- -----------
Total liabilities 51,116,306 44,134,843 46,149,849
Capital securities, Series A, of
subsidiary trust 148,507 148,464 148,335
Stockholders' equity 3,254,533 2,395,445 2,398,942
----------- ----------- -----------
$54,519,346 $46,678,752 $48,697,126
=========== =========== ===========
</TABLE>
<PAGE>
H. F. AHMANSON & COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(dollars in thousands except per share data)
<TABLE>
<CAPTION>
For the Three Months Ended
-------------------------------------------
March 31, December 31, March 31,
1998 1997 1997
------------ ------------ ------------
<S> <C> <C> <C>
Interest income:
Loans $ 632,892 $ 581,993 $ 577,533
MBS 256,599 243,719 267,673
Investments 13,726 16,579 16,897
------------ ------------ ------------
Total interest income 903,217 842,291 862,103
------------ ------------ ------------
Interest expense:
Deposits 387,895 364,471 375,139
Short-term borrowings 41,732 42,982 33,120
FHLB and other borrowings 132,740 128,476 136,225
------------ ------------ ------------
Total interest expense 562,367 535,929 544,484
------------ ------------ ------------
Net interest income 340,850 306,362 317,619
Provision for loan losses 8,066 10,011 24,223
------------ ------------ ------------
Net interest income after provision for loan losses 332,784 296,351 293,396
------------ ------------ ------------
Noninterest income:
Gain on sales of loans 11,771 3,450 7,989
Loan servicing income 21,675 13,589 16,748
Banking and other retail service fees 27,709 28,355 29,334
Other fee income 19,150 17,878 16,381
Gain on sale of retail deposit branch system - - 15,956
Loss on sales of investment securities - (9) -
Other operating income 989 1,520 2,461
------------ ------------ ------------
Total noninterest income 81,294 64,783 88,869
------------ ------------ ------------
Noninterest expense:
Compensation and other employee expenses 97,698 87,305 95,468
Occupancy expenses 28,692 25,567 26,712
Federal deposit insurance premiums and assessments 6,779 5,961 6,549
Other general and administrative expenses 83,535 69,358 58,044
------------ ------------ ------------
General and administrative expenses 216,704 188,191 186,773
Operations of REI (319) 456 1,859
Operations of REO 8,007 12,019 22,108
Amortization of goodwill and other intangible assets 8,883 6,474 6,390
------------ ------------ ------------
Total noninterest expenses 233,275 207,140 217,130
------------ ------------ ------------
Income before provision for income taxes 180,803 153,994 165,135
Provision for income taxes 66,500 54,500 62,042
------------ ------------ ------------
Net income $ 114,303 $ 99,494 $ 103,093
============ ============ ============
Net income attributable to common shares $ 111,573 $ 91,117 $ 98,998
============ ============ ============
Income per common share (1):
Basic $ 1.06 $ 0.97 $ 0.94
Diluted $ 0.97 $ 0.89 $ 0.87
Common shares outstanding, weighted average (1):
Basic 101,512,046 93,851,941 100,605,693
Diluted 115,015,982 107,607,139 114,123,176
<FN>
(1) Income per share and the weighted average common shares outstanding for the three months ended
March 31, 1997 have been restated to reflect the adoption of SFAS No. 128.
</FN>
</TABLE>
<PAGE>
H. F. AHMANSON & COMPANY AND SUBSIDIARIES
CONSOLIDATED AVERAGE STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
For the Three Months Ended March 31, 1998 December 31, 1997 March 31, 1997
- -------------------------- -------------- ----------------- --------------
<S> <C> <C> <C>
Loans receivable (1) $33,695,512 $30,930,718 $31,581,124
MBS (2) 13,600,786 13,022,728 14,470,954
----------- ----------- -----------
Total loans and MBS 47,296,298 43,953,446 46,052,078
Investments 799,101 980,944 983,885
----------- ----------- -----------
Total interest-earning assets 48,095,399 44,934,390 47,035,963
Other assets 2,350,796 1,864,314 1,991,631
----------- ----------- -----------
Total assets $50,446,195 $46,798,704 $49,027,594
=========== =========== ===========
Deposits $35,389,912 $32,433,597 $34,670,277
Borrowings and trust capital securities 11,166,409 10,802,639 11,049,815
----------- ----------- -----------
Total interest-costing liabilities 46,556,321 43,236,236 45,720,092
Other liabilities 1,020,573 1,163,897 911,137
Stockholders' equity:
Preferred 283,694 479,425 482,500
Common 2,585,607 1,919,146 1,913,865
----------- ----------- -----------
Total liabilities and stockholders' equity $50,446,195 $46,798,704 $49,027,594
=========== =========== ===========
<FN>
(1) Excludes the allowance for losses.
(2) Excludes the unrealized gain/loss on MBS available for sale.
</FN>
</TABLE>
