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AMERIBANC INVESTORS GROUP REPORTS LOSS OF $5.98 MILLION FOR FIRST QUARTER OF 1992

 AMERIBANC INVESTORS GROUP REPORTS LOSS OF $5.98 MILLION
 FOR FIRST QUARTER OF 1992
 ANNANDALE, Va., May 7 /PRNewswire/ -- Ameribanc reported a loss of $5.98 million (94 cents per share) for the quarter ended March 31, 1992, as compared with a loss of $1.91 million (30 cents per share) for the year earlier quarter. The first quarter 1992 loss is attributable to the reclassification of loans aggregating $35.5 million to in-substance foreclosure status, resulting in writedowns totaling $6.9 million. These writedowns are the result of more stringent accounting requirements for the valuation of foreclosed assets as compared to the valuation of collateral for loans. Total provisions for losses and writedowns were $8.0 million in the quarter ended March 31, 1992, as compared to $1.6 million in the quarter ended March 31, 1991. The first quarter of 1991 also included gains on the sale of loans totaling $874,000 as compared to only $29,000 for the first quarter of 1992.
 The reclassifications discussed above were made in response to conclusions reached by the Office of Thrift Supervision in its regular examination of Ameribanc. Although management did not fully agree with the conclusions reached by the OTS in this judgmental area, it acceded to the adjustments so as to provide an additional cushion against further declines in the local real estate market.
 The commercial real estate market continues at depressed levels without significant hope for meaningful improvement in the near term. The condition of this market indicates that Ameribanc will be negatively affected for some time as a result of its investment in commercial real estate loans and foreclosed properties. The residential real estate market, however, continues to improve. As of March 31, 1992, the total investment in non-earning residential real estate assets totaled $56.5 million, of which $25.9 million, or 46 percent was under contract for sale. The continued strength in this market should result in a steadily declining portfolio of problem assets. Total non-earning assets were $164.6 million and $131.8 million as of March 31, 1992, and December 31, 1991, respectively, the increase resulting from the reclassification discussed above.
 David W. Campbell, president of Ameribanc Savings Bank, FSB, noted that, "Despite the loss of earnings resulting from the relatively high level of nonearning assets, Ameribanc is experiencing continued improvement in its core results of operations." The contribution to income before certain non-controllable or non- recurring items (loss provisions, regulatory assessments, and the costs of administering foreclosed properties) increased to $2.5 million from a loss of $22,000 reported in the first quarter of 1991. This improvement results from continuing improvements in the interest spread as well as ongoing efforts by management to increase fee income and control operating costs.
 Ameribanc's residential loan production again reached record levels, with new loans totaling $155.5 million. Sales of loans and mortgage-backed securities totaled $113.6 million in the first quarter of 1992.
 Management continues to streamline operations to achieve even more reductions in operating costs while maintaining the high level of quality service expected by customers. In February 1992, the sale of two branch offices -- Leesburg and Warrenton -- was consummated. The results of this sale will include a more efficient branch network resulting in a better utilization of resources.
 Ameribanc's effective tax rate for the first quarter of 1992 of 9.6 percent reflects the limitation of available operating loss carrybacks for income tax reporting purposes. In future periods, this limitation would be reversed as Ameribanc generates taxable income offsetting the first quarter loss.
 Ameribanc Investors Group (NASDAQ-NMS: AINVS) is the holding company for Ameribanc Savings Bank, a $1.2 billion bank headquartered in Annandale, operating 29 branch offices in Northern Virginia, Hampton Roads and Charlottesville.
 AMERIBANC INVESTORS GROUP
 Selected Financial Data
 ($ In thousands, except per share data)
 Financial Condition March 31, 1992 Dec. 31, 1991
 Loans receivable and MBS, net $ 903,860 $ 931,910
 Total assets 1,141,793 1,187,104
 Deposits 864,960 905,402
 Shareholders' investment 34,700 40,686
 Book value per share 5.41 6.35
 Quarter Ended
 March 31,
 Results of Operations 1992 1991
 Total interest revenue $ 22,287 $ 25,601
 Total interest expense 15,594 21,200
 Net interest revenue 6,693 4,401
 Provision for losses on loans 8,001 1,566
 Net interest revenue after
 provision for losses (1,308) 2,835
 Other revenue 2,189 2,662
 Other expenses 7,499 8,167
 Loss before benefit for
 income taxes (6,618) (2,670)
 Benefit for taxes (638) (756)
 Net loss $ (5,980) $ (1,914)
 Loss per share $ (0.94) $ (0.30)
 Regulatory Capital Position Requirement Actual
 Tangible 1.50 pct. 0.79 pct.
 Core 4.00 2.12
 Risk-based 7.20 3.85
 -0- 5/7/92
 /CONTACT: John J. Houseman, president, Ameribanc Investors Group, 703-658-2721, or David W. Campbell, president, Ameribanc Savings Bank, 703-658-1002/
 (AINVS) CO: Ameribanc Investors Group ST: Virginia IN: FIN SU: ERN


MH-TW -- DC027 -- 7818 05/07/92 16:46 EDT
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Date:May 7, 1992
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