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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A No. 1
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1997
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OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 1-10264
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COAST SAVINGS FINANCIAL, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 95-4196764
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1000 Wilshire Boulevard, Los Angeles, California 90017-2457
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(Address of principal executive offices) (Zip code)
(213) 362-2000
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year, if changed
since last report.)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes x No
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As of August 6, 1997, the registrant had 18,631,297 shares of common
stock, $.01 par value, outstanding. The shares of common stock
represents the only class of common stock of the registrant.
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PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
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On April 10, 1987, Coast acquired substantially all of the assets
and liabilities of Central Savings and Loan Association from the
Federal Savings and Loan Insurance Corporation ("FSLIC") in a
supervisory-assisted transaction. As part of the transaction, Coast
entered into a contractual agreement with the FSLIC under which the
FSLIC made a cash contribution to Coast of approximately $299 million
which, pursuant to the agreement, was to be reflected as a permanent
addition to Coast's regulatory capital. The Financial Institutions
Reform, Recovery and Enforcement Act of 1989 eliminated the FSLIC and
replaced it (and the Federal Home Loan Bank Board) for supervisory and
regulatory purposes with the OTS. The OTS has taken the position that
the FSLIC contribution should be classified as supervisory goodwill,
thereby excluding it from regulatory capital. In June 1992, Coast
filed an action in the United States Court of Federal Claims seeking
monetary damages for breach of the contractual agreement with the
FSLIC. In three cases with similar contractual issues, the Court of
Federal Claims ruled in favor of the plaintiff thrift institutions on
the issue of liability of the federal government for breach of
contract. On July 8, 1996, the United States Supreme Court affirmed
the Court of Federal Claims ruling in these cases (the "Winstar
Decision"). Coast has pending with the Court of Federal Claims a
motion for summary judgment with respect to the issue of liability of
the federal government for breach of the contractual agreement with
the FSLIC. In the event that the Court of Federal Claims grants such
motion in accordance with the Winstar Decision, the Court of Federal
Claims must then determine the amount of damages owing to Coast. No
prediction can be made as what damages might be awarded to Coast.
There are various actions pending against Coast or the Company
but, in the opinion of management, the probable liability resulting
from such suits is unlikely, individually or in the aggregate, to have
a material effect on Coast.
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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 thereunto duly authorized.
COAST SAVINGS FINANCIAL, INC.
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(Registrant)
/s/ Gerald I. Rich
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Gerald I. Rich
Senior Vice President,
Controller and Treasurer
Dated: September 9, 1997
