Downey Savings & Loan, Newport Beach

Nature of business: State chartered thrift specializing in real estate loans

Total employees: 987

In Orange County: 565

Stock listing in The Times: On NYSE “Downy”

Ticker symbol: “DSL”

Friday’s stock close: $19.88

One-week change: Up 38 cents

Analyst review: “Downey Savings & Loan is performing well in spite of a slow economy, and has comparatively few non-performing loans at a time when other California institutions are having problems. It is now operating on a fully taxed basis, having lost the tax benefits it received from the 1988 acquisition of Butterfield Savings, so more is going out in taxes. It needs to concentrate on growing its assets, since it has too much equity and too much capital. Its CEO, Robert Kemper, recently announced retirement plans, and until a replacement is named, it is essentially a company in a holding pattern. Afterwards, however, I expect that it will embark on an aggressive growth strategy.”

--Campbell K. Chaney, analyst, Dakin Securities, San Francisco

Revenue 1990: $400 1991: $336 1992: $275 3 quarters 1992: $213 1993: $180

Profits In millions of dollars 1990: $42 1991: $25 1992: $42 3 quarters 1992: $33 1993: $39 Corporate outlook: “The 1993 year was a good one for Downey and we look forward to the challenges of 1994. Clearly, the new year will be influenced by the direction of the California economy. However, we believe we have the controls and strategies in place to minimize any adverse effect the economy might otherwise bring.”

--Robert L. Kemper, CEO

RETURN ON INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

Fiscal year ended Dec. 31 Dec. 31 Dec. 31 3 qtrs. 1990 1991 1992 1992 52-week high $19.75 $18.38 $18.00 $18.00 52-week low $10.13 $10.62 $11.25 $11.25 Book value per share $1.59 $1.71 $1.94 $2.17 Price per share $13.00 $11.50 $14.00 $12.38 Net profit per share $2.60 $1.54 $2.59 $2.05 Price-to-earnings ratio 5:1 8:1 5:1 4:1 Avg. return on investor equity 17.5% 9.2% 14.1% 15.3%

Fiscal year ended 3 qtrs. 1993 52-week high $24.50 52-week low $13.63 Book value per share $2.17 Price per share $22.75 Net profit per share $2.44 Price-to-earnings ratio 11:1 Avg. return on investor equity 16.0%

*1993 figures include a $15.1 million benefit the adoption of new accounting practices. For more information call or write, Downey Savings & Loan: 3501 Jamboree Road, Newport Beach, Calif., 92658. (714) 854-3100 Source: Downey Savings & Loan; Bloomberg Business News. Researched by JANICE L. JONES / Los Angeles Times