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COLLECTIVE BANCORP REPORTS DRAMATIC IMPROVEMENT IN THIRD QUARTER RESULTS; RESTRUCTURING OF ASSETS

 COLLECTIVE BANCORP REPORTS DRAMATIC IMPROVEMENT
 IN THIRD QUARTER RESULTS; RESTRUCTURING OF ASSETS
 EGG HARBOR, N.J., April 9 /PRNewswire/ -- Continued strong growth in core earnings from its retail banking operations enabled Collective Bancorp, Inc. (NASDAQ-NMS: COFD) to post record profits for the fourth consecutive quarter, it was announced today by Thomas H. Hamilton, president and chief executive officer.
 Net income for the quarter ended March 31, 1992, totalled $8.345 million or $0.82 per share, a 75 percent increase over the $4.759 million or $0.54 per share earned during the comparable quarter one year ago.
 For the nine months ended March 31, 1992, Collective recorded net income of $22.992 million or $2.41 per share. That represents a 97 percent increase over the $11.683 million or $1.33 per share earned during the first nine months of fiscal 1991.
 Commenting on the results, Hamilton observed, "Core earnings from Collective's retail banking operations have never been stronger. These normally recurring sources of income produced approximately 97 percent of the net income recorded during the quarter," Hamilton added. Core earnings consist primarily of net interest income plus fees, service charges and expenses associated with Collective's ongoing banking operations. The continued improvement in core earnings was also reflected in Collective's net interest margin, which increased to 3.73 percent for the quarter.
 Hamilton also noted that during the quarter Collective restructured its assets by selling $114 million of higher coupon mortgage-backed securities that were experiencing excessive prepayments as a result of the lowest long-term interest rates in nearly two decades. Proceeds from the sale were reinvested in collateralized mortgage obligations with an average life of three years. "The reinvestment of the proceeds into CMOs will improve Collective's medium-term interest rate gap by $121 million," Hamilton said. The restructuring resulted in an after- tax gain on sale of $4.800 million. During the quarter Collective also recorded $4.529 million in non-recurring charges relating to the accelerated amortization of goodwill and core deposit premium associated with a 1988 non-assisted voluntary supervisory acquisition and a 1980 branch office acquisition.
 Collective had total assets at March 31, 1992, of $2.406 billion, compared with $2.587 billion one year ago. Loans receivable, including mortgage-backed securities, totalled $2.142 billion at quarter end while savings deposits rose to $2.074 billion. Stockholders' equity at March 31, 1992, totalled $184.042 million or $18.33 per share which is equivalent to 7.65 percent of assets. Classified assets at March 31, 1992, were equal to 1.16 percent of total assets.
 Collective Bancorp, Inc. is the parent savings and loan holding company for Collective Federal Savings Bank. Headquartered in Egg Harbor, Collective Federal operates 57 full-service banking offices in 13 counties throughout New Jersey.
 COLLECTIVE BANCORP AND SUBSIDIARY
 (Dollars in thousands, except per-share data)
 Periods ended Three months Nine months
 March 31 1992 1991 1992 1991
 Interest income:
 Interest on mortgage loans $31,358 $35,766 $98,088 $108,341
 Interest on other loans 2,185 2,343 6,799 7,078
 Interest on mortgage-backed
 securities 16,447 17,839 52,134 48,558
 Interest and dividends
 on investments 2,622 3,232 8,546 9,690
 Total interest income 52,612 59,180 165,567 173,667
 Interest expense:
 Interest on deposits 28,641 34,253 94,054 99,471
 Interest on borrowings 1,896 7,842 9,034 29,246
 Total interest expense 30,537 42,095 103,088 128,717
 Net interest income before
 provision for loan losses 22,075 17,085 62,479 44,950
 Provision for loan losses 432 11 1,153 1,050
 Net interest income after
 provision for loan losses 21,643 17,074 61,326 43,900
 Other income:
 Service charges 942 853 2,712 2,152
 Gains on sale of loans and
 mortgage-backed securities 7,724 91 9,574 179
 Other income 1,045 745 2,856 2,109
 Total other income 9,711 1,689 15,142 4,440
 Total income before
 other expense 31,354 18,763 76,468 48,340
 Other expense:
 General and administrative
 expense 10,285 10,296 30,338 28,137
 Amortization of intangibles 4,979 578 5,991 1,617
 Real estate operations 397 482 1,581 1,240
 Total other expense 15,661 11,356 37,910 30,994
 Income before income taxes 15,693 7,407 38,558 17,346
 Income taxes 7,348 2,648 15,566 5,663
 Net income 8,345 4,759 22,992 11,683
 Primary earnings per share $.82 $.54 $2.41 $1.34
 Fully diluted earnings
 per share .82 .54 2.41 1.33
 Dividends per common share .10 .06 .26 .17
 Average primary shares
 outstanding 10,200,223 8,744,257 9,538,895 8,683,318
 Average fully diluted
 shares outstanding 10,200,223 8,773,994 9,545,093 8,752,994
 /delval/
 -0- 4/9/92
 /CONTACT: Scott Page of Collective Bancorp, 609-625-1110/
 (COFD) CO: Collective Bancorp, Inc. ST: New Jersey IN: FIN SU: ERN


LJ-MK -- PH005 -- 6637 04/09/92 09:41 EDT
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Date:Apr 9, 1992
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