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CHARTER FEDERAL ANNOUNCES THIRD QUARTER FISCAL 1994 PROFIT

 BRISTOL, Va., April 18 /PRNewswire/ -- Charter Federal Savings Bank (NASDAQ: CHFD) today announced that net income for the third quarter of fiscal 1994 ended March 31, 1994 was approximately $2.5 million or $.49 per share based upon 5,125,313 shares outstanding at the end of the period, which reflects the 1-for-5 reverse stock split effected during the previous quarter. This represents a 2.9% decrease from net income of $2.6 million for the previous qaurter ended December 31, 1993. The slight decrease resulted primarily from a decrease in net interest income. The Savings Bank's earnings for the first three quarters of fiscal 1994 was approximately $7.4 million or $1.44 per share based upon current shares outstanding. The results for the third quarter and the first nine monthks of fiscal 1994 represent an improvement over the comparable period results of last year. For the third quarter and first nine months of fiscal 1993, the bank recorded, before the goodwill elimination of $41.1 million at March 31, 1993, a $2 million net income and a $3 million net income, respectively. As a result of the current income levels, Charter Federal's tangible equity to asset ratio was 5.52% at March 31, 1994.
 For the quarter ended March 31, 1994, the Savings Bank recorded a provision for losses on loans and REO of $509,000, which increased the Savings Bank's allowance for losses on loans and REO to 76.7% of non-performing assets. The institution's level of non-performing assets has been reduced by approximately $4.0 millon from approximately $20.5 million at March 31, 1993 to approximately $16.5 million at March 31, 1994, which equates to a reduction in the ratio of non-performing assets to total assets from 2.97% to 2.29% during the same period.
 C.R. McCullar, President and Chief Executive Officer of Charter Federal stated that he was pleased to announce the fourth consecutive quarter of excellent net earnings. "We continue to add value to the franchise and stability for the customers and stockholders," said McCullar.
 Charter Federal, which began operation in 1920, is a federally- chartered stock savings bank headquartered in Bristol, Virginia with 26 offices throughout Southwest Virginia and Northeast Tennessee. At March 31, 1994, Charter Federal had $723.6 million in total assets; $538.1 million in deposits, and stockholders' equity of $40 million.
 FINANCIAL HIGHLIGHTS
 CHARTER FEDERAL SAVINGS BANK
 March 31 March 31
 1994 1993
 Period End Balances
 Total Assets $723,639 $692,643
 Loans (Net) 382,452 403,743
 Mortgage-Backed
 Securities 258,194 192,004
 Allowance for Losses 12,688 10,615
 Non-Performing Loans 12,892 13,718
 Non-Performing Assets 16,538 20,540
 Deposits 538,134 591,578
 Borrowings 137,244 104,500
 Tangible Shareholders'
 Equity 40,041 (12,086)
 Shares Outstanding 5,125,313 NM(A)
 Three Months Ended Nine Months Ended
 March 31 March 31
 1994 1993 1994 1993
 Results of Operations
 Net Interest Income $6,239 $6,593 $19,167 $19,064
 Provision for Losses 480 540 2,726 4,917
 Net Interest Income after
 Provision 5,759 6,053 16,441 14,147
 Non-Interest Income 666 544 1,977 2,789
 Non-Interest Expense
 Provision for REO Losses 29 655 935 1,375
 Amortization of
 Goodwill 0 649 0 1,946
 Other Non-Interest
 Expense 3,798 3,181 11,030 10,475
 Provision for Taxes 101 90 (923) 90
 Net income before Elim
 of Goodwill 2,497 2,022 7,376 3,050
 Elimination of Goodwill 41,108 41,108
 Net Income (Loss) $2,497 ($39,086) $7,376 ($38,058)
 Per Share Data(A)
 Earnings $0.49 $0.39(B) $1.44 $0.60(B)
 Tangible Book Value 7.81 (2.36) 7.81 (2.36)
 Selected Ratios
 Performance
 Return on Avg. assets. 1.39% 1.09%(B) 1.40% 0.54%(B)
 Return on Tangible
 Equity 24.94% NM 24.56% NM
 Net Interest Margin 3.54% 3.90% 3.72% 3.66%
 Asset Quality
 NPLs/Loans & REO 3.34% 3.34% 3.34% 3.34%
 NPAs/Assets 2.29% 2.97% 2.29% 2.97%
 Reserves/NPLs 98.42% 77.38% 98.42% 77.38%
 Reserves/NPAs 76.72% 51.68% 76.72% 51.68%
 (A) All per share data reflect current outstanding shares of 5,125,313
 (B) Earnings per share and return on average asset data is before elimination of $41.1 million of goodwill at March 31, 1993
 NM - Not Meaningful
 -0- 4/18/94
 /CONTACT: Douglas D. Deppen, Senior Vice President and Chief Financial Officer, Charter Federal Savings Bank, 703-645-5301/
 (CHFD)


CO: Charter Federal Savings Bank ST: Virginia IN: FIN SU: ERN

JM-CM -- CH010 -- 7578 04/18/94 09:32 EDT
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