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EARNINGS UP 35 PERCENT AT FIRST FEDERAL SAVINGS BANK OF PUERTO RICO

EARNINGS UP 35 PERCENT AT FIRST FEDERAL SAVINGS BANK OF PUERTO RICO
 SAN JUAN, Puerto Rico, July 7 /PRNewswire/ -- First Federal Savings Bank of Puerto Rico (NASDAQ: FFPR) reported $3.65 million in net earnings for the second quarter ending June 30, 1992, an improvement of 35 percent over net earnings of $2.70 million for the second quarter of 1991. Net earnings of $6.85 million for the first semester ended on the same date, compare to $5.72 million earned during the same period last year, an improvement of 20 percent. On a per share basis, second quarter results amount to $0.65 per common share, or 25 percent over per share earnings of $0.52 during the same quarter last year. Earnings per share reported for the first semester of 1992 as a whole amount to $1.21 or 8 percent more than earnings per share of $1.12 for the same period of 1991. "Earnings achieved during both the second quarter and first semester of 1992 underscore First Federal's strong capacity to generate a sustained stream of hard core, operational income, as well as the competitive drive of its basic strategic business units," commented Angel Alvarez Perez, president and CEO of the savings bank, noting that this quarter results contain no significant gains on sale of securities.
 The bank also announced that with these quarter results it has reached a 4 percent core and tangible capital ratio, exceeding the 3 percent minimum core requirement by $21.6 million, or 4.15 percent core ratio. In addition, the bank has also achieved this quarter an 8 percent risk based ratio, two quarters earlier than expected. Eight percent is the fully phased-in risk-based requirement which becomes effective on Dec. 31, 1992. The bank exceeds the current 7.2 percent risk-based requirement by $9.6 million.
 The main reason for the strong financial results during this second quarter, and for 1992 year-to-date has been the increase in the bank's net interest income by $2.6 million or 17 percent for the second quarter and $4.7 million or 16 percent for the first semester of 1992. The bank placed additional resources in the mortgage and auto lending areas, which enabled it to increase loan origination volume in these two areas, protecting overall asset yields and volumes while at the same time improving funding costs in this prevailing low interest rate scenario. "The substantial increase in residential mortgage originations, where the bank originated more loans than during the previous whole year, has been supported by active participation in the secondary market through the securitization of mortgages into FNMA pools," commented Alvarez Perez. "Additionally, the increased origination in personal and auto loans during this quarter reflects the gradual recuperation of this market and the revitalized competition among lending institutions that have been spurred by the recent deregulation of interest rates," added Alvarez Perez.
 Total loans decreased by $74.1 million as compared to December 1991, as a result of $60 million of mortgage loans converted into FNMA securities, and now held in the investment portfolio, and repayment of $26.5 million in commercial loans, net of an increase of $7.4 million in the consumer loan portfolio.
 Total deposits decreased by $29.3 million, due to a strategy of shifting institutional 936 deposits to other types of 936 borrowings. However, branch generated deposits increased by $35.2 million, which includes a substantial increase in passbook deposits, considered traditional, lower cost deposits that reduce the sensitivity to changes in interest rates. "The contribution of a strong and growing pool of retail deposits continues to be a critical factor in our business performance. It is also an indication of sustained and valuable customer support," indicated Alvarez Perez.
 First Federal Savings Bank, with total capital of $81.0 million and assets of $1.89 billion as of June 30, 1992, is the largest savings institution in Puerto Rico. It operates 30 branches in Puerto Rico and the U.S. Virgin Islands, in addition to 3 branches in Miami.
 FIRST FEDERAL SAVINGS BANK OF PUERTO RICO
 CONDENSED FINANCIAL HIGHLIGHTS
 (000s OMITTED)
 AT AT
 06-30-92 12-31-91
 Total assets $1,887,761 $1,898,399
 Mortgage-backed securities 447,962 349,331
 Total loans: 1,190,329 1,264,380
 Commercial loans 178,872 205,345
 Consumer and other loans 428,007 420,647
 Real estate loans 583,450 638,388
 Reserve for possible
 loan losses 27,438 29,001
 Total deposits: 1,344,599 1,373,822
 Branch generated deposits 1,007,622 972,393
 Institutional deposits 336,977 401,429
 Total stockholders' equity 81,001 74,146
 Regulatory capital ratios:
 (In percent)
 Core 4.15 3.74
 Tangible 4.09 3.67
 Risk-based 8.03 7.08
 CONDENSED STATEMENT OF INCOME
 (000s OMITTED)
 Three Months Ended Six Months Ended
 06-30-92 06-30-91 06-30-92 06-30-91
 Net interest income $17,579 $14,980 $34,472 $29,763
 Provision for possible
 loan losses 3,180 3,364 6,142 6,036
 Other operating income 3,283 3,108 6,330 6,157
 Gain on sale
 of investments 60 293 60 716
 Operating expenses 13,613 11,839 26,986 24,126
 Income before income
 tax provision 4,129 3,178 7,734 6,474
 Provision for income tax 476 474 878 748
 Net income $ 3,653 $ 2,704 $ 6,856 $ 5,726
 Net income per
 common share (A) $0.65 $0.52 $1.21 $1.12
 (A) -- Per share results are fully diluted and calculated after accounting for the effect of unpaid preferred stock dividends.
 -0 7/7/92
 -0- 07/07/92
 CONTACT: Annie Astor de Carbonell, executive vice president and chief financial officer of First Federal Savings Bank of Puerto Rico, 809-724-1715
 (FFPR) CO: FIRST FEDERAL SAVINGS BANK OF PUERTO RICO IN: FIN SU: ERN -- FL006 -- X828 07/07/92
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Date:Jul 7, 1992
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