Community Savings announces expected effect of recently enacted insurance fund legislation.

NORTH PALM BEACH, Fla.--(BUSINESS WIRE)--Oct. 8, 1996--Community Savings, F.A. (NASDAQ:CMSV) announced Tuesday the expected effect of the one-time special assessment to be paid by thrifts and savings banks whose deposit accounts are insured by the Savings Association Insurance Fund ("SAIF") administered by the Federal Deposit Insurance Corp. ("FDIC").

The pre-tax assessment on the Association's insured deposits is expected to be approximately $2.8 million. Based on an estimated effective tax rate of 38%, the after tax charge to earnings is expected to be approximately $1.8 million or 37 cents per share, which charge will be made in accordance with generally accepted accounting practices as of Sept. 30, 1996.

The one-time assessment which requires a payment of 65.7 basis points on SAIF-insured deposits that were held at March 31, 1995, was part of the Omnibus Appropriations Legislation passed by Congress, and signed by the President on Sept. 30, 1996. The assessment will bring the SAIF's reserve ratios to a comparable level of the Bank Insurance Fund ("BIF") portion of the FDIC, at 1.25 per cent of total insured deposits. The legislation also lowers the SAIF premium from 23 cents per $100 to approximately six and one half cents per $100 beginning in January 1997, which will result in an annual estimated pretax savings of $829,000 per year for the Association.

President and Chief Executive Officer James B. Pittard Jr. said: "We strongly support the legislation requiring the recapitalization of the SAIF and resolving the insurance premium disparity between the BIF and the SAIF in future years. The payment of the special assessment will not change the Association's categorization as a 'well-capitalized' institution under Federal banking regulations." Pittard concluded: "Our previously announced regular forth quarter dividend of 20 cents per share will be unaffected by this special assessment. The dividend will be paid on Nov. 1, 1996 to shareholders of record as of Oct. 15, 1996."

Chartered in 1955, Community Savings is a federal stock savings and loan association headquartered in North Palm Beach, the deposits of which are insured by the FDIC. The Association has 18 full-service offices located throughout northern Palm Beach, Martin, and St. Lucie counties.

Visit us on the World Wide Web at: http://www.communitysavings.com

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NOTE TO EDITORS: In the World Wide Web address noted in this news release, there is a double slash between http: and www.communitysavings.com. These symbols may not appear properly in some systems.

CONTACT: Community Savings, North Palm Beach

James B. Pittard, Jr. president

or

Larry J. Baker, treasurer

561/881-2212