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FIRST FINANCIAL CORPORATION OF WESTERN MARYLAND ANNOUNCES FIRST QUARTER RESULTS

 CUMBERLAND, Md., Oct. 25 /PRNewswire/ -- First Financial Corporation of Western Maryland (NASDAQ: FFWM), the holding company for First Federal Savings Bank of Western Maryland, today announced that net income for the three months ended Sept. 30, 1993, before considering the effect of a change in accounting principle, totaled $664,000, or 46 cents per share compared to $1.0 million or 74 cents per share for the three months ended Sept. 30, 1992. Net income for the current quarter, after the cumulative effect of the change in accounting principle, increased to $2.4 million or $1.64 per share. The change in accounting principle resulted from the adoption on July 1, 1993, of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." The cumulative effect of this change was to increase net income for the three months ended Sept. 30, 1993, by $1.7 million or $1.18 per share.
 The decrease in net income for the three months ended Sept. 30, 1993, before the effect of the change in accounting principle, was primarily due to the inclusion in net income for the three months ended Sept. 30, 1992, of approximately $376,000, net of applicable income taxes, on the sale of mortgage-backed and investment securities compared to net gains of approximately $3,000 in the three months ended Sept. 30, 1993. Net interest income rose $286,000 or 10.5 percent to $3.0 million in fiscal 1994. Such increase was offset by higher provisions for losses on real estate owned and an increase of $157,000 in compensation expense attributable to stock appreciation rights attached to certain outstanding stock options issued pursuant to the company's Stock Option Incentive Plan.
 The company paid a quarterly cash dividend of 10 cents per share on Sept. 30, 1993, to stockholders of record at the close of business Sept. 15, 1993.
 Effective June 30, 1993, the company adopted Statement of Financial Accounting Standards No. 115, "Accounting for Certain Investments in Debt and Equity Securities." As a result, at Sept. 30, 1993, the company had $58.1 million of its investment and mortgage-backed securities classified as available for sale which had the effect of increasing stockholders' equity at that date by $868,000 for unrealized gains, net of the applicable income tax effect.
 At Sept. 30, 1993, the company's stockholders' equity totaled $40.4 million which represented 11.9 percent of assets at that date. The bank's tangible, core and risk-based capital ratios equaled 11.2 percent, 11.2 percent and 21.4 percent, respectively, at Sept. 30, 1993. Such ratios exceeded all regulatory requirements. There were 1,326,171 shares of common stock outstanding resulting in a book value per share of $30.49.
 Non-performing loans and other assets totaled $10.6 million or 3.1 percent of total assets at Sept. 30, 1993, compared to $11.6 million or 3.4 percent of total assets at June 30, 1993. The company's total allowance for losses equaled $5.9 million or 56.1 percent of total non- performing loans and other assets at Sept. 30, 1993, compared to $5.7 million or 47.3 percent at June 30, 1993.
 Consolidated financial statements follow.
 FIRST FINANCIAL CORPORATION OF WESTERN MARYLAND AND SUBSIDIARIES
 Consolidated Statements of Financial Condition (Unaudited)
 Sept. 30, 1993, and June 30, 1993
 Assets: Sept. 30, 1993 June 30, 1993
 Cash on hand and in banks $3,503,400 $2,455,036
 Interest-bearing deposits 24,179,308 23,860,427
 Investment securities, net 8,021,550 15,709,807
 Mortgage-backed securities 62,195,247 58,477,504
 Loans receivable, net 225,100,989 225,079,387
 Investment in Federal Home
 Loan Bank stock 2,124,000 2,123,700
 Real estate owned 3,814,430 4,210,598
 Property and equipment, net 10,447,956 10,590,586
 Prepaid expenses and other assets 1,050,319 918,402
 Federal and state income taxes:
 Currently recoverable -- 131,953
 Deferred 383,381 --
 Total $340,820,580 $343,557,400
 Liabilities and Stockholders' Equity:
 Liabilities:
 Savings deposits $297,804,852 $301,819,910
 Advance payments by borrowers
 for taxes and insurance 248,801 694,367
 Borrowed funds -- Employee Stock
 Stock Ownership Plan 772,800 772,800
 Federal and state income taxes:
 Currently payable 128,947 --
 Deferred -- 1,180,159
 Accrued expenses and other
 liabilities 1,433,646 1,337,662
 Total liabilities 300,389,046 305,804,898
 Stockholders' equity:
 Serial preferred stock, $1 par
 value, 2 million shares
 authorized; none issued -- --
 Common stock, $1 par value,
 5 million shares authorized;
 issued and outstanding 1,326,171
 at Sept. 30, 1993, and 1,316,796
 at June 30, 1993 1,326,171 1,316,796
 Additional paid-in capital 11,070,984 10,829,592
 Retained income-substantially
 restricted 27,166,443 24,947,112
 Unrealized gains on securities
 available for sale 867,936 659,002
 Total stockholders' equity 40,431,534 37,752,502
 Total $340,820,580 $343,557,400
 FIRST FINANCIAL CORPORATION OF
 WESTERN MARYLAND AND SUBSIDIARIES
 Consolidated Statements of Income (Unaudited)
 Three months ended
 Sept. 30,
 1993 1992
 Interest Income:
 First mortgage and
 other loans $4,934,291 $5,507,886
 Mortgage-backed
 securities 646,883 680,819
 Investment securities 130,434 95,298
 Interest-bearing
 deposits 209,666 240,135
 Other 32,831 31,236
 Total interest
 income 5,954,105 6,555,374
 Interest expense:
 Savings deposits 2,933,290 3,815,723
 Long-term borrowings 17,531 22,056
 Total interest
 expense 2,950,821 3,837,779
 Net interest income 3,003,284 2,717,595
 Provision for loan
 losses 105,000 61,365
 Net interest income
 after provision for
 loan losses 2,898,284 2,656,230
 Other income:
 Loan fees and service
 charges 151,928 110,057
 (Loss) gain on investment
 securities (60,066) 165,874
 Gain on sale of
 mortgage-backed
 securities 65,693 338,779
 Income on real estate
 activities net 3,210 209,101
 Other 34,460 30,286
 Total other income 195,225 854,097
 Other expenses:
 Compensation and
 employee benefits 1,046,168 818,146
 Occupancy 324,271 296,124
 Federal deposit
 insurance 174,191 170,404
 Data processing 86,123 89,966
 Professional fees 86,711 182,044
 Other 281,878 262,320
 Total other expenses 1,999,342 1,819,004
 Income before income
 taxes and cumulative
 effect of accounting
 change $1,094,167 $1,691,323
 Income tax expense 430,000 677,000
 Income before cumulative
 effect of accounting change 664,167 1,014,323
 Cumulative effect of change
 in accounting for income
 taxes 1,695,000 --
 Net income $2,359,167 $1,014 323
 Net income per common share:
 Primary:
 Income before cumulative
 effect of accounting change $ 0.46 $ 0.74
 Cumulative effect of
 change in accounting for
 income taxes 1.18 --
 Net income $ 1.64 $ 0.74
 Fully diluted:
 Income before cumulative
 of accounting change $ 0.46 $ 0.74
 Cumulative effect of
 change in accounting
 for income taxes 1.18 --
 Net income $ 1.64 $ 0.74
 -0- 10/25/93 R
 /CONTACT: Janet I. Kemmet, vice president, of First Financial Corporation of Western Maryland, 301-724-3363/
 (FFWM)


CO: First Financial Corporation of Western Maryland ST: Maryland IN: FIN SU: ERN

DC -- DC011X -- 6453 10/25/93 15:28 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
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