Printer Friendly

F.F.O. FINANCIAL GROUP REPORTS COMPLETION OF REGULATORY EXAMINATION AND ADDITIONAL LOSS PROVISION OF $3.1 MILLION

 F.F.O. FINANCIAL GROUP REPORTS COMPLETION OF REGULATORY
 EXAMINATION AND ADDITIONAL LOSS PROVISION OF $3.1 MILLION
 ST. CLOUD, Fla., Sept. 8 /PRNewswire/ -- F.F.O. Financial Group, Inc. (NASDAQ: FFFG), a Florida-based unitary savings and loan holding company, today announced the completion of a joint examination of First Federal Savings and Loan Association of Osceola County ("First Federal"), the company's primary subsidiary, by the Office of Thrift Supervision ("OTS") and the Federal Deposit Insurance Corporation ("FDIC").
 Pursuant to such examination, First Federal will be required to make an additional provision for possible loan losses of $3.1 million. Of the additional provision, $1.6 million will be allocated to specific loan loss allowances and the remainder will be allocated to general valuation allowances. The additional provision will be reported as a charge against income and accordingly, will have an adverse effect upon the company's operating results for the quarter ending Sept. 30, 1992.
 At June 30, 1992, First Federal reported tangible and core capital ratios of 3.24 percent of applicable assets, both of which met minimum Federal requirements at such date, and a risk-based capital ratio of 5.76 percent of risk-adjusted assets, which did not meet minimum Federal requirements. On a pro forma basis at that same date (based upon reported results at June 30, 1992 as adjusted for the additional loss provisions of $3.1 million), First Federal would have tangible and core capital ratios of 2.38 percent and a risk-based capital ratio of 4.71 percent. On a pro forma basis, at June 30, 1992, First Federal's core capital ratio, as well as its risk-based capital ratio, would not meet minimum Federal requirements.
 At June 30, 1992, the company reported total shareholders' equity of $11.4 million or $5.23 per share. On a pro-forma basis at the same date (as adjusted for the additional loan loss provision of $3.1 million), the company would have total shareholders' equity of $8.3 million or $3.81 per share.
 The minimum tangible capital requirement at June 30, 1992 was 1.50 percent, and the minimum core capital requirement at that date was 3.00 percent. However, the OTS has proposed to increase the minimum core capital requirement for all but the most highly rated associations to 4.00 percent to 5.00 percent of adjusted total assets. First Federal would most likely be subject to increased core capital requirements in the future as a result of this proposal. The minimum risk-based capital requirement was 7.20 percent at June 30, 1992, and is scheduled to increase to 8.00 percent at Dec. 31, 1992.
 As a result of First Federal's inability to meet its minimum capital requirements, it has commenced preparation of a capital restoration plan to be filed with the OTS. First Federal will also be subject to various operational restrictions and limitations. The company is unable to predict the timing or extent of any limitations that may be imposed. If First Federal's tangible capital ratio were in the future to fall below 2.00 percent of total assets, the federal deposit insurance laws would generally require the appropriate regulatory agency to place the institution into conservatorship or receivership within 90 days unless it determined that some other lower resolution cost alternative exists.
 -0- 9/8/92
 /CONTACT: Phyllis A. Elam, chief financial officer of F.F.O. Financial Group, Inc., 407-957-7421/
 (FFFG) CO: F.F.O. Financial Group, Inc. ST: Florida IN: FIN SU:


JB-AW -- FL014 -- 7184 09/08/92 16:55 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 8, 1992
Words:591
Previous Article:ORLANDO, FLA. CAPITAL IMPROVEMENT REFUNDING SPECIAL REVENUE BONDS 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --
Next Article:C-17 PROGRAM FORGES FORWARD
Topics:


Related Articles
F.F.O. FINANCIAL GROUP, INC. REPORTS FOURTH QUARTER AND YEAR END RESULTS
F.F.O. FINANCIAL GROUP, INC. REPORTS FOURTH QUARTER AND YEAR END RESULTS
F.F.O. FINANCIAL GROUP, INC. REPORTS FIRST QUARTER PROFIT
F.F.O. FINANCIAL GROUP, INC. REPORTSSECOND QUARTER AND YEAR TO DATE PROFIT
F.F.O. FINANCIAL GROUP, INC. REPORTS FOURTH QUARTER AND YEAREND PROFIT
F.F.O. FINANCIAL GROUP, INC. REPORTS SECOND QUARTER PROFIT
F.F.0. FINANCIAL GROUP, INC. REPORTS FIRST QUARTER PROFIT
F.F.O. FINANCIAL GROUP, INC. REPORTS FOURTH QUARTER AND YEAR END PROFIT
F.F.O. FINANCIAL GROUP, INC. REPORTS SECOND QUARTER AND YEAR TO DATE PROFIT
F.F.O. Financial Group, Inc. Reports First Quarter Earnings

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters