Caught in a squeeze between accounting methods, Columbia Savings Assn. was forced to show a loss for the second quarter when its top executive says the thrift actually was turned in a record profit.
Joe C. Morris, chairman of the Emporia-based savings and loan, said the $1.636 million loss that appears in a federal regulator's reports for the April-through-June period actually occurred in the fourth quarter of 1991.
"That is the loss that was reported as of December 31, 1991," Morris said, noting that the thrift officially ended that quarter $691,000 in the red.
"Actually, for the second quarter Columbia made over $2.58 million," he said. "In the first six months (of 1992) we made $3.5 million, which is our best performance ever."
COLUMBIA was one of five thrift institutions with offices in Douglas County for whom the Office of Thrift Supervision recently released second-quarter performance reports. The OTS showed net profits for the other four thrifts for the period.
Morris said Columbia also should be regarded as profitable during the second quarter. He explained that during the fourth quarter of 1991 Columbia had added about $2.4 million to its provisions for anticipated losses on out-of-state commercial loans. Who's doing the books determines when the resulting loss is recorded, he said.
"Basically, it's a timing difference between what's required under OTS accounting and what's required under GAAP accounting," he said.
Although Columbia increased its reserves during the final reporting period of 1991, accounting procedures used by the OTS required the transfer to be posted in the second quarter of 1992, when the loss occurred.
But under generally accepting accounting principles, which the Securities and Exchange Commission mandates be used by Western Financial Corp., the publicly traded holding company that owns Columbia, the loss showed up on the books last year.
COLUMBIA has been operating under a capital compliance plan designed to fortify the thrift.
However, Morris said the thrift was solidly profitable now that the need to take loan-loss chargeoffs and beef up its reserves was past. After making some ill-fated commercial real estate loans during the 1980s, home mortgages again are Columbia's primary product.
"Virtually all the loans we've made since the first quarter of 1989 are single-family," he said.
Despite the transfer of $2.4 million into its loan-loss reserves during last year's fourth quarter, the thrift showed a profit of $2.881 million for all of 1991.
HERE ARE the second-quarter results for all of the thrifts that have offices in Douglas County, reported by the OTS. These figures include the institutions' operations outside Douglas County.
Capitol Federal Savings & Loan Assn.: net income, $13,892,000; total assets, $3,891,139,000; tangible capital, $377,577,000; tangible capital to assets ratio, 9.70 percent; number of deposit accounts, 406,137.
Columbia Savings: net loss, 1,636,000; total assets, $670,765,000; tangible capital, $14,945,000; tangible capital to assets ratio, 2.23 percent; number of deposit accounts, 71,156.
First Savings Bank of Manhattan: net income, $198,000; total assets, $162,764,000; tangible capital, $5,782,000; tangible capital to assets ratio, 3.55 percent; number of deposit accounts, 19,384.
Mutual Savings Assn.: net income, $446,000; total assets, $162,804,000; tangible capital, $13,908,000; tangible capital to assets ratio, 8.54 percent; number of deposit accounts, 19,375.
Pioneer Savings & Loan Assn.: net income, $435,000; total assets, $143,421,000; tangible capital, $6,929,000; tangible capital to assets ratio, 4.83 percent; number of deposit accounts, 10,806.