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FLORIDA FIRST FEDERAL PREDICTS PROFITABLE FIRST QUARTER IN 1992 AFTER LOSS FOR FISCAL 1991

 FLORIDA FIRST FEDERAL PREDICTS PROFITABLE FIRST QUARTER IN 1992
 AFTER LOSS FOR FISCAL 1991
 PANAMA CITY, Fla., March 26 /PRNewswire/ -- Andrew W. Stein, president and CEO, predicted a profitable first quarter 1992 for Florida First Federal Savings Bank (NASDAQ-NMS: FFPC). "1991 was a pivotal year for the savings bank," said Stein, "with solid reductions in the amount of real estate owned and a significant improvement in the net interest margin. The hard work of the last few years is reflected in the anticipated first quarter results."
 For the year ended Dec. 31, 1991, the savings bank posted a loss of $2.2 million or $1.16 per share compared to a loss of $2.6 million or $1.40 per share for the year ended Dec. 31, 1990. For the quarters ended Dec. 31, 1991 and 1990, the savings bank recorded losses of $1.1 million or $.62 per share and $1.6 million or $.88 per share, respectively. The lack of profitability in 1991 reflected the increased level of writedowns on real estate owned ("REO"), however, the savings bank continues to experience improvement in its net interest income as well as reductions in its operating expenses (other than REO related). The savings bank's operating results (before REO writedowns and loss reserves) yielded a profit of $577,000 for fiscal 1991 which represents the first time income from operations has been recorded since 1987.
 Total net non-performing assets, including non-accrual loans, REO and troubled debt restructurings ("TDRs"), totaled $26.1 million at Dec. 31, 1991, a decrease of $1.3 million from a total of $27.4 million at Dec. 31, 1990. However, net non-earning assets (which do not include TDRs) amounted to $21.3 million at Dec. 31, 1991, the lowest level since 1986. For the year ended Dec. 31, 1991, $921,000 was provided for possible losses on interest-earning assets compared to $1.6 million for the year ended Dec. 31, 1990. Partially offsetting such favorable results was an increase in REO writedowns from $542,000 for fiscal 1990 to $1.8 million for the year ended Dec. 31, 1991. The increased level of writedowns resulted from new appraisals received on various REO properties which indicated further erosion of their market values. These writedowns primarily occurred on commercial real estate and vacant land.
 Improvements were evident in many areas of the savings bank's operations when comparing fiscal 1991 to fiscal 1990. As a result of decreases in the average cost of interest-bearing liabilities, net interest income before provisions for losses increased $199,000 from $4.2 million for the year ended Dec. 31, 1990 to $4.4 million for the year ended Dec. 31, 1991. Other operating income increased by $787,000 from $1.2 million for fiscal 1990 to $2.0 million for 1991 primarily due to increases in gains on sales of loans and investments. The savings bank's results were also favorably affected by a reduction in total operating expenses (not including REO related expenses) from $5.7 million for the year ended Dec. 31, 1990 to $5.6 million for 1991. Compensation and benefits decreased by $55,000, occupancy and equipment decreased by $100,000 and other operating expenses reflected a decrease of $51,000. Partially offsetting these decreases were increases of $55,000 in insurance expense and $68,000 in professional fees. Increased federal insurance deposit premiums caused the increase in insurance expense while increased legal fees resulted in higher professional fees.
 Total assets at Dec. 31, 1991 and 1990 were $265.7 million and $265.9 million, respectively. During 1991, net loans receivable decreased by $5.8 million while REO decreased by $5.1 million. These decreases were offset by increases of $6.8 million in investments (including mortgage-backed securities) and $4.6 million in cash and interest-bearing deposits. Cash available during the year was used to purchase investments, both for yield enhancement and as a part of the savings bank's asset/liability management strategies. Increases in both deposits and borrowings of $2.0 million and $400,000, respectively, were the primary cause of the increase in liabilities from $255.6 million at Dec. 31, 1990 to $257.6 million at Dec. 31, 1991. Stockholders' equity at Dec. 31, 1991 was $8.1 million or $4.36 per share compared to $10.3 million or $5.52 per share at Dec. 31, 1990, reflecting the loss incurred for 1991.
 At Dec. 31, 1991, the savings bank was in compliance with the core and tangible capital standards established by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. However, the savings bank did not meet the risk-based capital ratio requirement which increased from the initial level of 6.4 percent to 7.2 percent of risk-weighted assets on Dec. 31, 1990, and will further increase to 8.0 percent on Dec. 31, 1992. At Dec. 31, 1991, the savings bank's tangible and core capital to asset ratio was 3.0 percent while its risk-based capital to risk-weighted assets ratio was 5.6 percent. OTS regulations currently require tangible and core capital of 1.5 percent and 3.0 percent, respectively, of total adjusted assets and risk-based capital of 7.2 percent of risk-weighted assets. The savings bank filed a capital restoration plan pursuant to OTS regulations after being unable to comply with its risk-based capital requirement at Dec. 31, 1990, which plan was approved by the OTS in December 1991.
 The savings bank conducts business through nine full-service offices. Florida First Federal's common shares trade under the symbol "FFPC" on the NASDAQ National Market System.
 FLORIDA FIRST FEDERAL SAVINGS BANK
 FINANCIAL HIGHLIGHTS
 (Dollars in Thousands - Except Per Share Amounts)
 Dec. 31,
 1991 1990
 Total assets $265,705 $265,927
 Loans receivable-net 180,465 186,607
 Mortgage-backed securities 25,174 29,375
 Real estate owned 17,822 22,960
 Deposits 203,022 201,068
 FHLB advances and other
 borrowings 52,612 52,221
 Stockholders' equity 8,154 10,313
 Three Months Ended Dec. 31,
 1991 1990
 Interest income $ 5,438 $ 6,152
 Interest expense 4,110 5,055
 Net interest income 1,328 1,097
 Provision for losses on
 interest-earning assets 553 1,039
 Net interest income after
 provision for losses 775 58
 Other income 637 263
 Operating expenses 1,386 1,405
 Real estate owned expenses 1,160 572
 Net loss $ (1,134) $ (1,656)
 Loss per share $ (.62) $ (.88)
 Year Ended Dec. 31,
 1991 1990
 Interest income $ 22,269 $ 24,935
 Interest expense 17,827 20,692
 Net interest income 4,442 4,243
 Provision for losses on
 interest-earning assets 921 1,631
 Net interest income after
 provision for losses 3,521 2,612
 Other income 1,977 1,190
 Operating expenses 5,646 5,732
 Real Estate owned expenses 2,011 686
 Net loss $ (2,159) $ (2,616)
 Loss per share $ (1.16) $ (1.40)
 For the Year Ended Dec. 31,
 1991 1990
 Return on average assets (.82) pct. (1.04) pct.
 Return on average equity (21.72) pct. (21.45) pct.
 Equity as percentage of
 total assets at end of
 period 3.07 pct. 3.88 pct.
 Interest rate spread 2.34 pct. 2.28 pct.
 Net interest margin 1.89 pct. 1.73 pct.
 Book value per common share
 of stock at end of period $4.36 $5.52
 Yields and Rates at Dec. 31,
 1991 1990
 Yield on loans 9.73 pct. 10.42 pct.
 Yield on investments 8.42 8.65
 Yield on other earnings
 assets 4.82 7.53
 Yield on total earning
 assets 9.20 10.04
 Cost of deposits 5.83 7.43
 Cost of FHLB advances
 and other borrowings 7.65 9.00
 Cost of deposits
 and borrowings 6.20 7.75
 Net interest rate spread 3.00 2.29
 -0- 3/26/92
 /CONTACT: Barbara Larrabee Haag, senior vice president of Florida First Federal Savings Bank, 904-872-7047/
 (FFPC) CO: Florida First Federal Savings Bank ST: Florida IN: FIN SU: ERN


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