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AMFED SELLS FORECLOSED PROPERTY IN FERNLEY FOR $2.2 MILLION PRETAX GAIN; PROCEEDS TO BOOST FIRST QUARTER EARNINGS

 RENO, Nev., Jan. 13 /PRNewswire/ -- AMFED Financial Inc. (NASDAQ: AMFF), the holding company for American Federal Savings Bank, announced today the sale of its Fernley property from its portfolio of real estate owned (REO) for $4.25 million. The property, acquired through foreclosure in 1991, had been valued on AMFED's books at approximately $2.0 million. This transaction resulted in a first quarter pretax gain of approximately $2.2 million. The largely undeveloped property, located near Fernley, Nev., consists of approximately 3,400 acres.
 "This property accounted for approximately 15% of our non-performing assets at Sept. 30, 1993. The sale allows us to return a significant amount of money back to interest earning status," stated Ed Houston, chairman and chief executive officer. AMFED received $3 million in cash and financed the remaining $1.25 million on a one year contract. AMFED earned $6.6 million or $1.37 per share in the first nine months of 1993. Because the bank is in the process of converting to a new data services company, year end earnings will be announced in mid-February. "The conversion, which was largely expensed throughout 1993, is proceeding on schedule. It will improve our service delivery to customers and expand the bank's transaction capabilities well beyond our current base," Houston explained.
 AMFED Financial is the holding company for American Federal Savings Bank, which operates 26 full-service offices throughout Nevada. Twenty offices are in northern Nevada, which includes the Reno/Sparks/Lake Tahoe region and six are in southern Nevada (Las Vegas). AMFED closed its initial public offering of common stock on Nov. 20, 1992. Wednesday, Jan. 12, AMFED's stock closed the trading day at $25.50 per share.
 -0- 1/13/94
 /CONTACT: E. R. Houston, chairman & chief executive officer of AMFED, 702-785-8500/
 (AMFF)


CO: AMFED Financial Inc. ST: Nevada IN: FIN SU:

RB -- SE003 -- 1656 01/13/94 07:50 EST
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Publication:PR Newswire
Date:Jan 13, 1994
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