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SECURITY FINANCIAL ANNOUNCES RECORD THIRD QUARTER EARNINGS

 SECURITY FINANCIAL ANNOUNCES RECORD THIRD QUARTER EARNINGS
 DURHAM, N.C., Oct. 14 /PRNewswire/ -- Security Financial Holding Company (NASDAQ: SECF), the parent of Security Federal Savings Bank, Durham, N.C., reported net income of $852,483, or $0.47 per share, for the quarter ended Sept. 30, 1992, compared with $747,548, or $0.42 per share, for the comparable period in 1991. This 14 percent increase in earnings represented a return on assets of 1.02 percent for the third quarter of 1992 versus 1.00 percent for the same period in 1991. Return on equity increased to 11.10 percent from 10.60 percent in last year's third quarter.
 Net income for the nine months needed Sept. 30, 1992, was $2,500,122, an increase of 16 percent over the same period in 1991. On a per share basis, earnings were $1.40 versus $1.25 for the nine month periods. Return on assets for the first nine months of 1992 was 1.00 percent versus 0.99 percent for the same period in 1991, while the respective figures for return on equity were 11.15 percent and 10.33 percent.
 As in prior periods, the increase in profitability was due to substantial improvement in net interest income, which increased 11 percent, as well as strong growth in noninterest income. Noninterest income increased 48 percent in the quarter from the year-ago level, with most of the increase coming from fee income. Noninterest expense, as a percent of average assets, remained at comparable levels with prior periods.
 Stockholders' equity increased to $31.1 million, which represented 9.2 percent of assets. Book value per share was $18.09 as of Sept. 30, 1992, an eight percent increase from book value of $16.71 at Sept. 30, 1991. Total assets grew nine percent to $337 million. Asset quality remained high in the quarter. Delinquencies and real estate owned totaled $3.5 million, or approximately 1.0 percent of total assets, as of Sept. 30, 1992. The allowance for loan losses was $1.6 million, or 77 percent of delinquencies at Sept. 30, 1992.
 Commenting on the results, Larry D. Brock, President and Chief Executive Officer, stated: "Favorable trends continued in the third quarter. Net interest margins remained high, noninterest income continued to grow much more rapidly than noninterest expense and asset quality remained strong. Our progress in each of these areas reflects important strengths of the Bank, in such areas as interest rate risk management, cost containment and the quality of our products and services. Each of these strengths should be enhanced as a result of the Bank's pending merger with BB&T, which is anticipated to be completed in the first quarter of 1993."
 As part of the transaction, Security Financial Holding Company stockholders will receive 0.7863 shares of BB&T stock for each share of Security Financial stock they own, subject to certain adjustments based on the price of BB&T's stock prior to closing. Based on the closing price of BB&T stock on May 13, 1992, the date of the announcement, the transaction had an indicated value of $42.7 million, or $23.20 per share of Security Financial stock. This equates to 1.33 times Security Financial's stated book value.
 SECURITY FINANCIAL HOLDING COMPANY
 AT OR FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1992 AND 1991
 1992 1991
 Net income $2,500,122 $2,151,920
 Net income per share $1.40 $1.25
 Book value per share $18.09 $16.71
 Return on assets 1.00 pct. 0.99 pct.
 Return on equity 11.15 pct. 10.33 pct.
 AT OR FOR THE THREE MONTHS ENDED SEPT. 30, 1992 AND 1991
 Net income $852,483 $747,548
 Net income per share $0.47 $0.42
 Book value per share $18.09 $16.71
 Return on assets 1.02 pct. 1.00 pct.
 Return on equity 11.10 pct. 10.60 pct.
 Security Federal Savings Bank, the wholly-owned subsidiary of Security Financial Holding Company, is the largest savings bank in Durham, N.C., and provides a full range of financial services through nine locations in the Durham, Butner/Creedmoor and Chapel Hill area.
 -0- 10/14/92
 /CONTACT: Larry D. Brock, President and Chief Executive Officer, or Robert F. Stockwell, Chief Financial Officer, both of Security Financial Holding Company, 919-687-7200/
 (SECF BBTF) CO: Security Federal Savings Bank; Security Financial Holding Company;
 BB&T Financial Corporation ST: North Carolina IN: FIN SU: ERN


CM -- CH005 -- 9744 10/14/92 09:53 EDT
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Date:Oct 14, 1992
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