Community Savings, F.A. announces net income for the second quarter ended March 31, 1995.

NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--April 17, 1995-- Community Savings, F.A. (NASDAQ:CMSV) announced Monday that net income for the second quarter ended March 31, 1995, increased 88% to $989,000, or 21 cents per share, compared to $525,000 for the quarter ended March 31, 1994.

The increase in net income is primarily due to a decrease in the provision for loan loss of $622,000 to $37,000 for the quarter ended March 31, 1995 as compared to $659,000 for the same period in 1994. The Association's annualized return on average assets for the three months ended March 31, 1995 was .75%.

Net income for the six months ended March 31, 1995, increased 41% to $2.1 million compared to $1.5 million for the same period last year due to an increase in net interest income of $539,000, other income of $319,000, and a decrease in provision for loan losses of $556,000, offset by an increase in operating expense of $472,000 and provision for income taxes of $342,000.

Core earnings, which are defined as net income from recurring operations, totaled $1.8 million for the six months ended March 31, 1995 as compared to $1.6 million for the same period in 1993. James B. Pittard Jr., president of the Association commented: ``We are pleased with our results for the quarter ended March 31, 1995. We continue to seek ways to enhance the Association's core earnings.''

On Oct. 24, 1994, the Association completed its reorganization into the mutual holding company form of ownership. Consequently, comparative per share data for the quarter ended March 31, 1994, is not available. As part of the reorganization, the Association completed a minority stock offering wherein it received $34.0 million in net proceeds.

Total assets decreased to $542.9 million at March 31, 1995 from $560.3 million at Sept. 30, 1994. This was primarily due to cash outflow used to fund the return of excess stock subscriptions of approximately $25.5 million. This was the primary reason for the reduction in cash and cash equivalents during the comparative periods.

Cash and cash equivalents decreased $42.1 million to $47.7 million at March 31, 1995, from $89.8 million at Sept. 30, 1994. Investment securities increased $9.3 million to $61.5 million at March 31, 1995, from $52.2 million at Sept. 30, 1994, due primarily to additional investment of $33.0 million from $52.2 million at Sept. 30, 1994, due primarily to additional investment of $33.0 million in term deposits offset by maturities, principal reductions, and the amortization of yield adjustments totaling $23.7 million.

Mortgage-backed and related securities increased by $12.0 million to $53.3 million at March 31, 1995, from $41.3 million at Sept. 30, 1994, due primarily to the purchase of $14.0 million in collateralized mortgage obligations offset by repayments and amortization of yield adjustments totaling $2.0 million. Total deposits decreased by $32.5 million to $427.5 million at March 31, 1995, from $460.0 million at Sept. 30, 1994 due primarily to the conclusion of the reorganization into the mutual holding company form of ownership wherein $25.5 million in excess stock subscriptions was returned to the subscribers, as well as deposits totaling $10.3 million which were transferred to capital as a purchase of common stock.

In addition, upon the close of the reorganization, the Association transferred stock subscriptions of $25.4 million to capital. Advances from the Federal Home Loan Bank increased by $8.0 million during the quarter ended March 31, 1995, which was used to purchase securities.

Equity increased $32.7 million to $70.8 million at March 31, 1995 from $38.1 million at Sept. 30, 1994 due primarily to the issuance of common stock of $35.7 million, net income for the six months ended March 31, 1995 of $2.1 million, partially offset by purchases of $2.8 million of common stock to fund the Association's ESOP plan, and costs of the reorganization of $1.7 million.

Net interest income increased to $4.8 million for the quarter ended March 31, 1995 from $4.5 million for the quarter ended March 31, 1994. This increase was primarily the result of a decrease in average interest-bearing liabilities of $36.8 million to $444.2 million for the three months ended March 31, 1995 from $481.0 million for the comparable period in 1994, offset by a decrease in the average net interest rate spread to 3.55% for the quarter ended March 31, 1995 from 3.60% for the same period in 1994.

Provision for loan losses decreased to $37,000 for the three months ended March 31, 1995 from $659,000 for the same period in 1994. The decline is attributable to the allowance being deemed adequate at March 31, 1995 following a significant increase in the quarter ended March 31, 1994 which was attributable to management's assessment of the decline in fair value for certain classified assets which required additional provisions during the period ended March 31, 1994.

Other income increased to $828,000 for the three months ended March 31, 1995 from $577,000 for the three months ended March 31, 1994 due primarily to the inclusion of loss on sale of securities available for sale of $244,000 during the quarter ended March 31, 1994.

Operating expenses increased to $4.0 million for the quarter ended March 31, 1995 from $3.6 million for the quarter ended March 31, 1994, due primarily to increase in compensation, advertising, and public company-related expenses. Provision for income taxes increased to $617,000 for the three months ended March 31, 1995 from $333,000 for the same period in 1994 due primarily to the increase in pre-tax income.

Community Savings has 17 full service offices throughout Palm Beach, Martin and St. Lucie counties. The stock trades on the NASDAQ National Market under the symbol ``CMSV.''

Financial highlights for Community Savings follow. Such results of operations are unaudited and are subject to change after the completion of the annual audit. -0-

                   COMMUNITY SAVINGS, F.A.

                                    At          At
                                 March 31,   Sept. 30,
                                   1995        1994
                                (Unaudited)  (Audited)
Selected Consolidated                (In Thousands)
Financial Data:

Total assets                     $542,877     $560,268
Cash and cash equivalents          47,737       89,843
Investment securities and
  securities available for sale    88,303       78,933
Loans receivable, net             321,361      317,117
Mortgage-backed and related
  securities                       53,319       41,281
Real estate owned, net              3,610        3,686
In-substance foreclosures             347          347
Deposits                          427,466      459,979
Advances from the Federal Home
  Loan Bank                         8,000            0
Stock subscriptions                    --       25,384
Equity                             70,804       38,110

                            Three Months Ended   Six Months Ended
                                 March 31,          March 31,
                              1995     1994      1995      1994
                                (Unaudited)        (Unaudited)
Consolidated Statement of           (Dollars in Thousands)
Operations:

Interest income             $9,076   $8,343     $17,948  $17,152
Interest expense             4,278    3,800       8,239    7,982
  Net interest income        4,798    4,543       9,709    9,170
Provision for loan losses       37      659         144      700
Other income                   828      577       1,678    1,359
Operating expense            3,963    3,803       7,899    7,427
Provision for income taxes     617      333       1,290      948
  Net income                $  989   $  525     $ 2,054   $1,454
Earnings per share          $ 0.21      N/A     $  0.42      N/A
Weighted average common
  shares outstanding     4,817,262      N/A   4,852,832      N/A

                          Three Months   Six Months   Twelve Months
                             Ended         Ended         Ended
                            March 31,    March 31,     Sept. 30,
                          1995   1994   1995   1994      1994
Selected Financial        (Unaudited)   (Unaudited)    (Audited)
Ratios:

Return on average
  assets (1)              0.75%  0.40%  0.77%  0.54%     0.71%
Return on average
  equity (1)              5.58%  5.84%  6.16%  8.16%    10.27%
Interest rate spread      3.55%  3.60%  3.64%  3.58%     3.69%
Equity to assets at
  period end             13.04%  6.80% 13.04%  6.80%     6.80%
Non-interest income
  to average assets (1)   0.62%  0.43%  0.63%  0.51%     0.63%
Non-interest expense to
  average assets (1)      3.01%  2.71%  2.96%  2.77%     2.82%
Non-performing loans to
  total loans             0.92%  0.83%  0.92%  0.83%     0.93%
Non-performing assets to
  total assets            1.21%  1.18%  1.21%  1.18%     1.25%
Allowance for loan losses
  to non-performing
  loans                 117.00% 143.15% 117.00% 143.15% 114.72%
Allowance for loan
  losses to total
  loans                   1.08%  1.19%  1.08%  1.19%     1.12%
Net yield on average
  interest -- earning
  assets (1)              3.91%  3.68%  3.95%  3.67%     3.79%
Average interest --
  earning assets to
  average interest --
  bearing liabilities  110.38% 102.67% 109.11% 102.90%  103.08%

(1) Ratio is annualized for March 31, 1995 and 1994.

CONTACT: Community Savings, F.A., North Palm Beach

James B. Pittard Jr., President

or Larry J. Baker, Treasurer

407/881-4800