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SECURITY FINANCIAL REPORTS FIRST QUARTER RESULTS

 SECURITY FINANCIAL REPORTS FIRST QUARTER RESULTS
 ST. CLOUD, Minn., Jan. 30 /PRNewswire/ -- Security Financial Group,


Inc. (NASDAQ: SFGI) today reported net earnings of $170,000 or $.24 per share for its first quarter ended Dec. 31, 1991, compared with $293,000 or $.42 per share for the corresponding period a year ago.
 In recent quarters, Security Financial has experienced rapidly falling short-term interest rates and has noted significant reductions in certain of its interest-earning assets and interest-bearing liability categories. These changes have resulted in a 26 percent decrease in interest income and a 29 percent decrease in interest expense when compared to the first quarter a year earlier. The reductions in assets and liabilities of approximately $50 million reflect the sales and maturities of securities as well as loan payoffs, paydowns and chargeoffs since quarter end a year ago.
 For the quarter, the average rate earned on assets was down 1.36 percent from a year ago while the average cost of liabilities was down 1.27 percent. The reduction in margin reflects Security's autumn loan repricing concentration as well as a larger non-accrual loan population than a year earlier.
 Security reported a provision for losses on loans of $30,000 for the quarter, down from $163,000 a year ago. The provision for the quarter reflects the bank's low origination activity as well as its overall portfolio reduction in recent quarters.
 Security Financial's Chief Executive Officer, Warren W. Teigen said that results fell short of the company's expectations for the period. "The rapidly falling short-term rates during the quarter quickly lowered our asset yields since the majority of our portfolio reprices in the fall. We have been working diligently on the repricing of deposits, payoff of high-rate borrowings, and workout of problem assets to strengthen our margin."
 Teigen added, "Through our attention to noninterest expenses and efforts to maintain margin, combined with reduction in size, we have been able to strengthen our regulatory capital ratios, which at Dec. 31, 1991, exceeded the fully phased-in requirements of the bank's regulatory agencies. To our customers this represents increased safety, strength and stability."
 Noninterest income reported for the quarter was down from a year ago. A significant component of the change was equipment dispositions (last year at a gain; this year at a loss for a year to year difference of $34,000). Noninterest expenses were down from a year ago. The $121,000 reduction is explained primarily by lower compensation and benefits following the bank's mid-year 1991 staff reduction.
 Security Financial Group, Inc. provides financial services to central Minnesota through its operating subsidiary Security Financial Banking and Savings, FSB. Security Financial is a $260 million savings bank with headquarters in St. Cloud and offices in St. Cloud, Elk River, Monticello, Mora, Princeton, Sauk Rapids and Waite Park, Minn. Security Financial Group, Inc. is traded on the national over-the-counter market under the NASDAQ symbol SFGI.
 SECURITY FINANCIAL GROUP, INC.
 Operating Highlights
 (Dollars in thousands, except per share amounts)
 (Unaudited)
 Three Months Ended
 12/31/91 12/31/90
 Total revenues $5,884 $7,957
 Interest income 5,608 7,590
 Interest expense 3,915 5,518
 Net interest income 1,693 2,072
 Provision for losses 30 163
 Net interest income after
 provision for losses 1,663 1,909
 Noninterest income 276 367
 Noninterest expense 1,662 1,783
 Income before income tax expense 277 493
 Income tax expense 107 200
 Net income 170 293
 Earnings per share $0.24 $0.42
 -0- 1/30/92
 /CONTACT: Warren W. Teigen, CEO, or Charles K. Engebretson, CFO, both of Security Financial Group, 612-251-4500/
 (SFGI) CO: Security Financial Group ST: Minnesota IN: FIN SU: ERN


AL -- MN007 -- 5393 01/30/92 15:53 EST
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Publication:PR Newswire
Date:Jan 30, 1992
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