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FIRST FINANCIAL CORPORATION OF WESTERN MARYLAND ANNOUNCES FISCAL 1993 RESULTS

 CUMBERLAND, Md., Aug. 10 /PRNewswire/ -- First Financial Corporation of Western Maryland (NASDAQ-NMS: FFWM), the holding company for First Federal Savings Bank of Western Maryland, today announced that net income for the year ended June 30, 1993, totaled $2.2 million, or $1.53 per share, compared to $3.3 million, or $2.60 per share (on a pro forma basis) for the year ended June 30, 1992. Approximately $1.3 million, net of applicable income taxes, of the 1992 net income resulted from a recovery on the sale of below investment grade securities, a portion of which had been previously written off.
 The 1993 results included gains of approximately $326,000, net of applicable income taxes, on the sale of mortgage-backed and investment securities. The 1993 results also reflect a decrease of $810,000 in the net loss on real estate activities compared to the 1992 total and an increase in compensation expense of $1.6 million. The increase in compensation expense includes charges to income of $1.2 million related to the stock option and recognition plans for directors and officers adopted by the stockholders on Oct. 28, 1992. The majority of the expense of these plans was absorbed by April 28, 1993. Net interest income rose $1.0 million, or 10.2 percent, to $11.3 million in fiscal 1993.
 The company paid a quarterly cash dividend of 10 cents per share on June 30, 1993, to stockholders of record at the close of business June 15, 1993.
 Net income for the quarter ended June 30, 1993, totaled $544,000, or 38 cents per share, compared to $704,000, or 51 cents per share (on a pro forma basis) in 1992. The 1993 results include compensation expense totaling $153,000 related to the stock option and recognition plans for directors and officers. As previously stated, the majority of the expense for these plans was recognized by April 28, 1993. Net interest income rose $284,000, or 10.4 percent, to $3.0 million in 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, the company classified $59.0 million of its investment and mortgage-backed securities as available-for-sale, which had the effect of increasing stockholders' equity by $659,000 for unrealized gains, net of applicable income tax effect.
 At June 30, 1993, stockholders' equity totaled $37.8 million, which represented 11.0 percent of assets at that date. Tangible, core and risk-based capital ratios equaled 10.3 percent, 10.3 percent and 20.3 percent, respectively at June 30, 1993. The company exceeds all regulatory requirements for tangible, core and risk-based capital. There were 1,316,796 shares of common stock outstanding resulting in a book value per share of $28.67.
 Non-performing loans and other assets totaled $12.0 million, or 3.5 percent of total assets at June 30, 1993, compared to $9.9 million, or 2.9 percent of total assets at June 30, 1992. The majority of the increase was attributable to a $1.5 million loan as to which past due amounts were paid in full in July 1993. The loan is now considered current and performing. The company's total allowance for losses equaled $5.5 million, or 46.3 percent of total non-performing loans and other assets at June 30, 1993, compared to $5.1 million, or 51.4 percent, at June 30, 1992.
 Consolidated financial statements follow.
 FIRST FINANCIAL CORPORATION OF WESTERN MARYLAND AND SUBSIDIARIES
 Consolidated Statements of Financial Condition (Unaudited)
 June 30, 1993, and June 30, 1992
 Assets: June 30, 1993 June 30, 1992
 Cash on hand and in banks $2,455,036 $2,368,877
 Interest-bearing deposits 23,860,427 26,341,840
 Investment securities, net 15,709,807 9,134,812
 Mortgage-backed securities 58,477,504 52,297,225
 Loans receivable, net 225,079,387 234,729,640
 Investment in Federal Home
 Loan Bank stock 2,123,700 1,974,100
 Real estate owned 4,210,598 4,645,421
 Property and equipment, net 10,590,586 9,631,648
 Prepaid expenses and other assets 918,402 838,962
 Federal and state income taxes
 recoverable 131,953 318,399
 Total $343,557,400 $342,280,924
 Liabilities and Stockholders' Equity:
 Liabilities:
 Savings deposits $301,819,910 $304,961,638
 Borrowed funds 772,800 869,400
 Advance payments by borrowers
 for taxes and insurance 694,367 746,713
 Federal and state income taxes
 deferred 1,180,159 364,240
 Accrued expenses and other
 liabilities 1,337,662 1,318,587
 Total liabilities 305,804,898 308,260,578
 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 1,316,796
 at June 30, 1993, and 1,250,932
 at June 30, 1992 1,316,796 1,250,932
 Additional paid-in capital 10,829,592 9,421,668
 Retained income-substantially
 restricted 24,947,112 23,347,746
 Unrealized gains on securities
 available for sale 659,002 --
 Total stockholders' equity 37,752,502 34,020,346
 Total $343,557,400 $342,280,924
 FIRST FINANCIAL CORPORATION OF WESTERN MARYLAND AND SUBSIDIARIES
 Consolidated Statements of Income (Unaudited)
 Year Ended Three months ended
 June 30, June 30,
 1993 1992 1993 1992
 Interest Income:
 First mortgage and
 other loans $20,835,534 $23,656,669 $5,017,190 $5,612,746
 Mortgage-backed
 securities 2,693,885 3,067,723 603,288 818,385
 Investment securities 487,314 1,058,473 154,749 269,119
 Interest-bearing
 deposits 913,268 1,184,819 202,984 182,725
 Other 119,751 148,622 33,973 39,768
 Total interest
 income 25,049,752 29,116,306 6,012,184 6,922,743
 Interest expense:
 Savings deposits 13,670,126 18,830,086 2,979,201 4,165,494
 Long-term borrowings 81,864 37,581 14,949 23,359
 Total interest
 expense 13,751,990 18,867,667 2,994,150 4,188,853
 Net interest income 11,297,762 10,248,639 3,018,034 2,733,890
 Provision for loan
 losses 349,651 317,000 138,286 (668,954)
 Net interest income
 after provision for
 loan losses 10,948,111 9,931,639 2,879,748 3,402,844
 Other income:
 Loan fees and service
 charges 486,724 439,353 137,920 73,063
 Gain on investment
 securities 250,874 2,261,954 85,000 --
 Gain on sale of
 mortgage-backed
 securities 338,779 -- -- --
 Other 125,847 166,982 32,630 85,626
 Total other income 1,202,224 2,868,289 255,550 158,689
 Other expenses:
 Compensation and
 employee benefits 4,664,432 3,080,788 1,044,007 820,024
 Occupancy 1,326,256 1,082,700 336,827 295,093
 Federal deposit
 insurance 623,229 693,358 141,210 175,104
 Loss on real estate
 activities, net 53,044 863,522 119,254 868,776
 Other 2,102,995 1,747,110 599,508 490,704
 Total other expenses 8,769,956 7,467,478 2,240,806 2,649,701
 Income before income
 tax expense $3,380,379 $5,332,450 $894,492 $911,832
 Income tax expense 1,227,000 2,080,000 350,000 208,000
 Net income $2,153,379 $3,252,450 $544,492 $703,832
 Net income per share
 of common stock
 1993 $1.53 $-- $0.38 $--
 1992:
 From date of conversion $-- $0.77 $-- $0.51
 Pro forma $-- $2.60 $-- $0.51
 -0- 8/10/93
 /CONTACT: Janet I. Kemmet, vice president, First Financial Corporation of Western Maryland, 301-724-3363/
 (FFWM)


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

MH-TW -- DC015 -- 1212 08/10/93 12:55 EDT
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