BHC Financial reports fourth quarter and year end results.

PHILADELPHIA--(BUSINESS WIRE)--Jan. 16, 1997--BHC Financial Inc. (NASDAQ:BHCF) Thursday reported its results for the fourth quarter and year ended Dec. 31, 1996.

Net income for the fourth quarter of 1996 totaled $4,322,000 on net revenues of $21,033,000 compared to $3,835,000 in net income on net revenues of $17,521,000 for the same 1995 quarter.

Net income per common share for the fourth quarter of 1996 was 67 cents compared to 54 cents, a 24% increase over the same period in 1995. Common shares outstanding on average were 10% fewer in the fourth quarter of 1996 compared to the fourth quarter of 1995.

Net revenues for the fourth quarter of 1996 increased 20% over the same period in 1995. This increase was principally due to a 25% increase in transactions processed and a 28% increase in average daily margin balances.

Processing and support service fees totaled $12.9 million for the 1996 fourth quarter, a 21% increase over the $10.7 million for the fourth quarter last year. Net interest income totaled $4.6 million for the fourth quarter of 1996 compared to $3.8 million for fourth quarter of 1995. Commissions were $2.3 million for the fourth quarter of 1996, a 9% increase over the fourth quarter of 1995.

Expenses for the fourth quarter of 1996, excluding interest, increased $2.6 million, or 23% over the fourth quarter of 1995. This increase was primarily related to expenses for continued system developments and enhancements.

For the year ended Dec. 31, 1996, net income was $18,024,000 versus $13,937,000 for 1995, and net revenues were $81,181,000 in 1996 compared to $65,724,000 for 1995. Net income per common share was $2.69 for the year ended Dec. 31, 1996 compared to $1.94 for the same 1995 period, a 39% increase.

1996 net income per common share was based on 7% fewer average shares outstanding, reflecting the company's stock buy back program.

Commenting on the fourth quarter, William T. Spane, Jr., chairman, president and CEO, said, "We added five new clients in the fourth quarter, four of which were non-bank broker-dealers. Our strategy to broaden our client base is showing excellent results and our sales effort begins the new year with a lot of momentum.

"Earnings for the year were a record in spite of large expenditures in connection with the completion of several important software development initiatives which were funded out of 1996 earnings.

"Much of the software we are introducing is proprietary and will aid in our new business sales effort. Contract programming expenses related to these projects have begun to moderate but will persist to some extent through the first quarter of 1997.

"We begin the new year having signed new extended contracts with several of our largest clients. Two of our subsidiaries, TradeStar and netVest, have also signed contracts with several new Clients. We continue to believe that our strategy of serving a broader market with our unique blend of technology, products and quality service will enable us to achieve relatively stable growth through market cycles."

BHC Financial Inc., through its principal business unit BHC Securities Inc., is a leading national third-party provider of integrated processing and support services to securities brokerage affiliates of banks and other financial institutions and broker-dealers. -0-

                        BHC FINANCIAL INC.
                           (unaudited)

                               FOURTH QUARTER          YEAR-ENDED
                               --------------          ----------
                             1996         1995       1996       1995
                             ----         ----       ----       ----
(AMOUNTS IN THOUSANDS,
 EXCEPT PER SHARE AMOUNTS)

NET REVENUE                $21,033      $17,521    $81,181    $65,724
NET INCOME                 $ 4,322      $ 3,835    $18,024    $13,937
FULLY DILUTED EARNINGS
 PER SHARE                 $   .67      $   .54    $  2.69    $  1.94
FULLY DILUTED AVERAGE
 SHARES OUTSTANDING          6,435        7,159      6,688      7,193

CONTACT: BHC Financial Inc., Philadelphia

William T. Spane Jr., 215/636-3003

Lawrence E. Donato, 215/636-3005

Richard M. Bare, 215-636-3807