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FIRST FEDERAL SAVINGS BANK OF PUERTO RICO EARNINGS UP 139 PERCENT; HISTORIC RECORD

 FIRST FEDERAL SAVINGS BANK OF PUERTO RICO
 EARNINGS UP 139 PERCENT; HISTORIC RECORD
 SAN JUAN, Puerto Rico, Oct. 6 /PRNewswire/ -- First Federal Savings Bank of Puerto Rico (NASDAQ: FFPR) reported earnings of $4,006,018 for the third quarter of 1992, an improvement of 139 percent over earnings of $1,671,548 for the same period of 1991. On a per share basis, earnings improved by 243 percent, to $0.72 per share, as compared to $0.21 per share during the same quarter last year.
 For the nine months ended Sept. 30, 1992, earnings amounted to $10,861,844, as compared to $7,397,092, for the same period of last year, an increase of 47 percent. Earnings per share for the first nine months of 1992 were $1.94, an improvement of 46 percent when compared to the same period of last year.
 "Earnings achieved during this third quarter underscore once again First Federal's strong core earnings capacity, and confirm the fact that 1992 will be a record year for the institution," commented Angel Alvarez Perez, president and CEO of the savings bank, noting that year-to-date gains on sales of investments have been a minimal $537,000 for 1992, as compared to $4,812,000 for the same period of last year.
 The main reason for the strong financial results during this third quarter, and for 1992 year-to-date, has been the increase in the bank's net interest income by $2.3 million or 15 percent for the third quarter, and $7.0 million or 15 percent for the first nine months of 1992. "In this very low interest rate scenario, the bank has been able to protect the yields and volume in its asset base, by placing additional resources in the origination of residential mortgages and auto loans. In addition, the bank has taken advantage of the significant lower funding costs, by taking measures to shield itself from interest rate risk, through more activity in the mortgage secondary market, and through the lengthening of liabilities by using interest rate swaps," explained Alvarez Perez.
 Total loans decreased by $85.6 million since Sept. 30, 1991, mostly as a result of securitization of mortgage loans into FNMA securities, repayment of $48.3 in commercial loans net of an increase of $15.3 million in consumer loans. At $30.0 million, the bank's allowance for loan losses has reached its highest level in history, as of Sept. 30, 1992.
 Total deposits decreased by $54.9 million, due to a strategy of shifting institutional 936 deposits to other types of 936 borrowings. However, branch generated deposits increased by $39.0 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," indicted Alvarez Perez.
 First Federal is placing increased emphasis in enhancing its branch network, via relocation of key branch offices. During the month of October the bank will inaugurate its new state of the art branch office in the Isla Verde section. This branch will be the only Isla Verde branch of any Puerto Rico Bank to count with drive-in facilities.
 First Federal Savings Bank, with total capital of $85.0 million, complies with all regulatory capital requirements. With total assets of $1.89 billion as of Sept. 30, 1992, it is the largest savings institution in Puerto Rico. It operates 30 branches in Puerto Rico and the U.S. Virgin Islands, in addition to three branches in Miami.
 FIRST FEDERAL SAVINGS BANK OF PUERTO RICO
 CONDENSED FINANCIAL HIGHLIGHTS
 (000s OMITTED)
 AT AT
 09-31-92 09-31-91
 Total assets $1,886,366 $1,895,407
 Mortgage-backed securities 417,852 283,809
 Total loans:
 Commercial loans 167,847 215,555
 Consumer and other loans 428,398 413,073
 Real estate loans 580,094 633,258
 Reserve for possible
 loan losses 30,019 26,852
 Total deposits:
 Branch generated deposits 1,011,816 972,829
 Institutional deposits
 including 936 316,300 410,194
 Total stockholders' equity 85,007 71,199
 Average common stock and
 stock equivalents -- fully
 diluted (for the nine months
 period ended) 4,542 4,476
 CONDENSED STATEMENT OF INCOME
 (000s OMITTED)
 Three Months Ended Nine Months Ended
 09-30-92 09-30-91 09-30-92 09-30-91
 Net interest income $18,493 $16,157 $52,965 $45,920
 Provision for possible
 loan losses 4,050 6,629 10,192 12,665
 Other operating income 3,369 3,766 9,760 10,309
 Gain on sale
 of investments 537 4,483 537 4,812
 Operating expenses 13,579 13,505 40,566 37,631
 Income before income
 tax provision and
 extraordinary item 4,770 4,272 12,504 10,745
 Provision for income tax 764 1,200 1,642 1,948
 Income before
 extraordinary item 4,006 3,072 10,862 8,797
 Extraordinary item:
 Interest advanced on
 subordinated notes
 prepaid -- 1,400 -- 1,400
 Net income $ 4,006 $ 1,672 $10,862 $ 7,397
 Net income per
 common share:(A)
 Income before
 extraordinary item $0.72 $0.52 $1.94 $1.64
 Extraordinary item -- (0.31) -- (0.31)
 Net income per
 common share $0.72 $0.21 $1.94 $1.33
 (A) -- Both primary and fully diluted.
 -0- 10/6/92
 /CONTACT: Annie Astor de Carbonell, executive vice president and chief financial officer of First Federal Savings Bank of Puerto Rico, 809-729-8088/
 (FFPR) CO: First Federal Savings Bank of Puerto Rico ST: IN: FIN SU: ERN


JJ-AW -- FL007 -- 7133 10/06/92 14:02 EDT
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Date:Oct 6, 1992
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