Golden State Bancorp Posts Quarterly Profit
Golden State Bancorp, the holding company of Glendale Federal Bank, on Tuesday said it posted a fiscal first-quarter profit as the bank gained customers, loans and deposits.
Golden State reported first-quarter net income of $28.5 million, or 40 cents a share, contrasted with a net loss of $20 million, or 50 cents, in the same period last year. The results exceeded analysts’ average estimate of 37 cents a share.
Excluding the one-time items, Golden State operating earnings more than doubled to $31.2 million, or 44 cents a share, from $14.1 million, or 21 cents, in the year-ago period. Net income in the recent period includes $2.7 million in after-tax legal expenses, while the year-ago period includes a $33.7-million assessment to replenish a federal deposit insurance fund and $300,000 in legal expenses.
The Glendale-based thrift also said it would distribute “litigation tracking” warrants to shareholders, giving them the right to receive Golden State stock equal in value to 85% of any net after-tax proceed the company may win from its supervisory goodwill lawsuit against the federal government.
The warrants “will allow the market to track the value of our pending goodwill lawsuit separately from the franchise value of the bank,” Stephen Trafton, Golden State chairman and chief executive, said in a statement.
Golden State shares rose $1.88 to close at $33.63 on the New York Stock Exchange.
At a Glance:
Jenny Craig Inc. said it had a fiscal first-quarter loss, partly because it canceled its fenfluramine and dexfenfluramine weight-loss prescription drug programs. The La Jolla-based company said the loss was $4.6 million, or 22 cents a share, contrasted with profit from operations of $2.5 million, or 12 cents, a year ago. Jenny Craig said the latest quarter’s loss included costs of $2.4 million related to the two drugs and other charges.
Los Angeles-based Smart & Final Inc. reported third-quarter net income of $6.8 million, or 30 cents per share, compared with $8.1 million, or 38 cents, a year ago.
