wsj_0527.xml

WSJ891030-0174 WSJ891030-0174 = 891030
= 891030
891030-0174 . 891030-0174 . Crossland Savings Stock Plunges as Firm @ Recommends Suspension of Dividends @ ---- @ By Udayan Gupta @ Staff Reporter of The Wall Street Journal Crossland Savings Stock Plunges as Firm @ Recommends Suspension of Dividends @ ---- @ By Udayan Gupta @ Staff Reporter of The Wall Street Journal 10/30/89 10/30/89
10/30/89
WALL STREET JOURNAL ( J ) WALL STREET JOURNAL ( J ) CRL CRL DIVIDENDS ( DIV ) FINANCIAL , ACCOUNTING , LEASING ( FIN ) EARNINGS ( ERN ) DIVIDENDS ( DIV ) FINANCIAL , ACCOUNTING , LEASING ( FIN ) EARNINGS ( ERN ) NEW YORK NEW YORK Crossland Savings Bank 's stock plummeted after management recommended a suspension of dividend payments on both its common and preferred stock because Crossland may not meet the new government capital criteria effective Dec. 7 . In composite trading on the New York Stock Exchange Friday , Crossland closed at $ 5.25 , down $ 1.875 , a 26 % decline . A spokesman said the savings bank may not qualify for the capital requirements because , under the proposed guidelines , its $ 380 million of preferred stock does n't meet the `` core capital '' criteria outlined under the new Financial Institutions Reform , Recovery and Enforcement Act of 1989 . He added that final guidelines to be published in early November will determine whether the bank is in compliance . Crossland said it retained three investment bankers to assist it in developing and implementing a financial restructuring plan . It would n't identify the bankers . Additionally , Crossland reported a third-quarter loss of $ 175.5 million , or $ 13.44 a share , compared with net income of $ 27.1 million , or $ 1.16 a share , a year ago . A major factor in the third-quarter loss was the write-down of $ 143.6 million of goodwill . The spokesman said that the proposed guidelines caused Crossland to revise its business objectives and , consequently , to write down the asset value of some previous acquisitions . Crossland recorded an additional $ 20 million in loan loss reserves in the third quarter . Net interest income for the third quarter declined to $ 35.6 million from $ 70.1 million a year ago . However , non-interest income rose to $ 23.5 million from $ 22 million . Third-quarter loan originations dropped sharply to $ 663 million from $ 1 billion a year ago . Standard & Poor 's Corp. lowered the rating on Crossland 's preferred stock to double-C from single-B-minus and placed it on CreditWatch for possible further downgrade . It also placed on CreditWatch for possible downgrade other securities , including the double-B-minus\/B rating of Crossland 's certificates of deposit and the single-B rating of its senior subordinated capital notes . About $ 518 million of debt is affected .