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F.F.O. FINANCIAL GROUP INC. TO SELL SBA LENDING BUSINESS

 F.F.O. FINANCIAL GROUP INC. TO SELL SBA LENDING BUSINESS
 ST. CLOUD, Fla., Dec. 18 /PRNewswire/ -- F.F.O. Financial Group,


Inc. (NASDAQ: FFFG), announced today that it has entered into a definitive agreement to transfer the small business lending license and certain of the of the nonfinancial assets of its small business lending subsidiary, Gulf American SBL, Inc. for a purchase price of $1.1 million. The sale has been approved by the U.S. Small Business Administration (SBA) and is scheduled to close by Dec. 31, 1991.
 James B. Davis, president, chairman and chief executive officer of F.F.O., said the transfer and sale of Gulf American's license and assets is an important step in a program designed to refocus F.F.O.'s lending activities on single-family mortgage and consumer loans and to concentrate the management of F.F.O.'s credit assets in First Federal/Osceola. As previously disclosed, and as part of this program, Gulf American sold $25.0 million of commercial business loans in September 1991.
 Davis said F.F.O. expects to record an after-tax gain of approximately $200,000 on the sale of Gulf American's nonfinancial assets. Davis added that the sale is expected to have a positive effect on F.F.O.'s capital ratios and earnings.
 Davis said that, in connection with the SBA approval for the transaction, F.F.O. has agreed to escrow $450,000 pending resolution of certain matters with the SBA relating to accounting for fees on certain loans previously made by Gulf American Financial Corp. F.F.O. hopes to resolve these issues by the end of January 1992. An adverse determination by the SBA concerning these matters could have an adverse affect upon F.F.O.'s consolidated results of operations.
 F.F.O. is a Florida-based unitary savings and loan holding company. Its primary subsidiary, First Federal/Osceola, currently operates 12 full-service branches in Central Florida. Gulf American SBL, Inc. is a subsidiary of First Federal/Osceola.
 -0- 12/18/91
 /CONTACT: Phyllis A. Elam, senior vice president and chief financial officer of F.F.O. Financial Group, 407-892-1200, ext. 4421/
 (FFFG) CO: F.F.O. Financial Group, Inc. ST: Florida IN: FIN SU:


SS-AW -- FL013 -- 3624 12/18/91 17:42 EST
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Date:Dec 18, 1991
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