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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) May 20, 1994
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Northeast Federal Corp.
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(Exact name of registrant as specified in its charter)
Delaware 1-10571 06-1288154
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
50 State House Square, Hartford, Connecticut 06103
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(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code (203) 280-1000
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Not applicable
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(Former name or former address if changed since last report.)
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Item 5. Other Events
On May 20, 1994, Northeast Federal Corp. published a public statement
attached hereto as Exhibit A.
Item 7. Exhibits
Exhibit A Public Statement.
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.
Northeast Federal Corp.
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(Registrant)
Date: /s/ Kirk W. Walters
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Kirk W. Walters
President and Chief Executive Officer
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EXHIBIT A
Northeast Federal Corp.
[LOGO] NEWS Holding Company of Northeast Savings, F.A.
50 State House Square
Hartford, Conneticut 06103
CONTACT: Laurie Norris
Assistant Vice President
Office of the CEO
(203) 280-1043
FOR IMMEDIATE RELEASE
NORTHEAST FEDERAL CORP. ANNOUNCES REO SALES AND
MAKES EARNINGS FORECAST AT ANNUAL MEETING
HARTFORD, Conn.--At its annual meeting of stockholders, Northeast Federal
Corp., (NYSE:NSB), the holding company for Northeast Savings, F.A., today (May
20, 1994) announced the completion of a series of sales of foreclosed properties
and made an earnings forecast for 1994 and 1995.
In remarks delivered at the meeting held at the Hartford Club, Kirk W.
Walters, president and chief executive officer, said that Northeast sold
"virtually all" of its foreclosed properties in California, in addition to
certain other foreclosed properties, in a series of transactions during April
and May. The transactions, which were fully reserved for during the first
fiscal quarter, reduced the company's non-performing assets from $90.9 million
to $66.4 million, or 1.84% of total assets, on a pro forma basis as of March 31,
1994.
In reviewing 1993 activity, Walters said the company had succeeded in
reducing its level of geographic risk in California; reducing its overall level
of non-performing assets; and increasing its capital levels. He said Northeast
expected to exceed the levels necessary to meet the definition of a well-
capitalized thrift after June 30, 1994.
Walters further announced that the company expected net earnings for 1994
to be in the range of approximately $9 million to $11 million, or $0.40 to $0.50
per share. For 1995, the company expects earnings in the range of approximately
$16 million to $19 million, or $0.80 to $1.00 per share. The earnings
projections are based on an assumption the national economy
(more)
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would continue to grow modestly and that the regional economy would begin a
recovery in 1994, but at a slower pace than the national economy, and interest
rates are projected to be relatively stable compared to current levels.
Walters said the anticipated improvement would come from three sources.
"First," he said, "the company expects a reduction in credit costs due to a
sharp reduction in non-performing assets and a significant reduction in credit
risk exposure to the California economy."
"Second, the company expects a major reduction in general and
administrative (G&A) expenses due to the relocation of its corporate
headquarters from Hartford to Farmington, Conn., in 1995, and the sale of
branches in Eastern Massachusetts, Rhode Island, and California. Third, the
company anticipates an increase in its net interest margin, primarily due to a
reduction in non-performing assets." While the projected earnings reflect
management's judgment regarding what stockholders can expect, there can be no
assurance that earnings will be within the ranges predicted.
Northeast Savings is one of the largest thrift institutions based in New
England, with 160 years of continuous service to its customers. A traditional
thrift institution, Northeast Savings concentrates on its strengths of retail
deposit gathering and residential mortgage lending.
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