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AMERIBANC INVESTORS GROUP REPORTS NET INCOME OF $895,000 FOR THIRD QUARTER OF 1992

 AMERIBANC INVESTORS GROUP REPORTS NET INCOME OF $895,000
 FOR THIRD QUARTER OF 1992
 ANNANDALE, Va., Oct. 20 /PRNewswire/ -- Ameribanc reported net income of $895,000 (14 cents per share) for the quarter ended Sept. 30, 1992, as compared to $229,000 (3 cents per share) for the year earlier quarter.
 Operating results for the nine months ended Sept. 30, 1992, narrowed to a loss of $73,000 (1 cent per share), as compared to a loss of $10.1 million ($1.60 per share) for the first nine months of 1991.
 Operating income continues to improve, increasing during the quarter to $2.3 million from $1.9 million for the quarter ended June 30, 1992, and $1.7 million for the quarter ended March 31, 1992, and $0.4 million for the third quarter of 1991. Operating income is defined for this purpose as pretax income adjusted for certain items which do not regularly occur.
 Ameribanc Savings Bank, FSB, (the "Bank") announced that significant improvement had been made in its capital ratios during the quarter. David W. Campbell, president and chief executive officer of the bank, stated that the bank's tangible capital ratio had increased to 1.58 percent, exceeding the regulatory requirement of 1.50 percent, and that the core and risk-based capital ratios at Sept. 30, 1992, exceeded the targets included in the bank's capital plan (prior to the equity offering). Campbell noted the improvements in the capital ratios resulted primarily from the increased earnings of the vank, the reduction of nonearning assets, and the write-off of goodwill related to the recent consolidations of branch offices acquired in 1988. Campbell stated that "although the results of the quarter were very strong and exceeded the projections in the capital plan, Ameribanc must complete the proposed equity offering to achieve its Dec. 31, 1992, capital targets."
 The level of nonearning assets decreased to $136.6 million as of Sept. 30, 1992, as compared to $152.7 million as of June 30, 1992, and $164.6 million as of March 31, 1992, representing declines of 11 percent and 17 percent, respectively. During the third quarter, the bank liquidated several commercial properties, including a 50,000 square foot office building in the Dulles area, and 35,000 square feet of commercial office/retail/warehouse space in Northern Virginia and the Tidewater areas.
 Residential mortgage loan originations continued at a strong pace. The current quarter's originations totalled $113 million compared to $122 million in the second quarter and $109 million in the third quarter of 1991. The strong pace was due, in part, to a resurgence of refinancing activity resulting from a drop in mortgage rates.
 In addition to earnings from operations, the third quarter 1992 results included: (1) the write-off of goodwill totaling $1.8 million relating to the recent consolidations of branch offices acquired in 1987; (2) provisions for the write-downs of real estate and nonearning loans, and increases in the reserve for loan losses totaling $2.0 million, compared to $1.5 million in the third quarter of 1991; (3) gains on the sale of real estate and other assets aggregating $620,000; and (4) gains on the sale of loans of $1.3 million, compared to $1.4 million in the third quarter of 1991.
 John J. Houseman, president and chief executive officer of Ameribanc Investors Group, stated that the process of clearing the registration statement with the Securities and Exchange Commission is continuing and that management anticipates the offering will be effective in early November. Houseman commented that certain European shareholders, with whom management had met during a recent visit, indicated significant interest in the proposed offering. Houseman noted that the board is optimistic that the offering will be successful based on the continued European interest and significant improvements in the balance sheet and operations of the bank.
 Ameribanc also announced that the record date of shareholders for the equity rights offering will be the close of business on Oct. 23, 1992. Under the terms of the proposed offering, each existing shareholder will receive the right to acquire four additional shares of common stock.
 Ameribanc Investors Group (NASDAQ-NMS: AINVS) is the holding company for Ameribanc Savings Bank, FSB, a $1.15 billion bank headquartered in Annandale, operating 29 branch offices in Northern Virginia, Hampton Roads and Charlottesville.
 AMERIBANC INVESTORS GROUP
 Selected Financial Data
 ($ In thousands, except per share data)
 Financial Condition Sept. 30, Dec. 31,
 1992 1991
 Loans receivable and
 MBS, net $ 868,569 $ 931,910
 Total assets 1,149,767 1,187,104
 Deposits 856,478 905,402
 Shareholders' investment 40,595 40,686
 Book value per share 6.33 6.35
 Quarter Ended Nine Months Ended
 Sept. 30, Sept. 30,
 Results of Operations 1992 1991 1992 1991
 Total interest revenue $19,565 $25,051 $62,461 $ 75,804
 Total interest expense 12,711 19,257 42,386 60,919
 Net interest revenue 6,854 5,794 20,075 14,885
 Provision for losses
 on loans 463 471 8,851 14,230
 Net interest revenue
 after provision for
 losses 6,391 5,323 11,224 655
 Other revenue 4,147 3,691 13,686 12,508
 Other expenses 8,674 8,609 24,019 28,293
 Income before write-off
 of goodwill related to 1,864 405 891 (15,130)
 purchased branches
 Income taxes 760 176 722 (5,026)
 Net income before
 goodwill write-off 1,104 229 169 (10,104)
 Goodwill write-off net
 of tax 209 -- 242 --
 Net Income $ 895 $ 229 $ (73) $(10,104)
 CAPITAL RATIOS
 Tangible Core Risk-Based
 Actual 1.58 pct. 3.01 4.96 pct.
 Accepted Capital Plan 1.19 2.51 4.30(A)
 (Prior to new offering)
 Statutory Minimum 1.50 3.00/4.00(B) 7.20
 (A) The approved capital plan projects attaining fully phased-in risk-based ratio of 8.00 percent by Dec. 31, 1994
 (B) The regulatory minimum core capital ratio is 3.00 percent while the capital directive from the OTS requires ASB to achieve a 4.00 percent core capital ratio by Nov. 30, 1992.
 -0- 10/20/92
 /CONTACT: John J. Houseman, president, Ameribanc Investors Group, 703-658-1002, or David W. Campbell, president, Ameribanc Savings Bank, 703-658-2721/
 (AINVS) CO: Ameribanc Investors Group ST: Virginia IN: FIN SU: ERN


KD -- DC025 -- 2411 10/20/92 14:38 EDT
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Date:Oct 20, 1992
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