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FIRSTFED MICHIGAN SECOND QUARTER UP 76 PERCENT FROM YEAR AGO

 DETROIT, July 21, 1993 /PRNewsire/ -- FirstFed Michigan Corporation (NASDAQ-NMS: FFOM), the holding company of First Federal of Michigan, today reported net earnings of $12.9 million for the quarter ended June 30, 1993, a 76- percent increase from $7.3 million in the second quarter of 1992. Earnings per share were $1.02 per share this quarter on both a primary and a fully diluted basis, compared to $.65 per share ($.61 per share fully diluted) in last year's quarter.
 "We are reporting a record level of core earnings for this quarter," noted FirstFed Chairman C. Gene Harling. "Our net interest income continued to improve with $38.6 million reported for the quarter compared with $25.5 million for the same quarter last year. Furthermore, net interest income exceeded our operating expenses by $18.3 million, triple the level of a year ago."
 Net earnings for the six months ended June 30, 1993, were $22.0 million, or $1.77 per primary and fully diluted share. For the first six months of 1992, net earnings were $16.7 million ($1.39 per fully diluted share) before the cumulative effect of a change in accounting for income taxes and $23.7 million ($1.95 per fully diluted share) after the accounting change.
 Net yield reached 1.75 percent at June 30, 1993, reflecting the net benefit derived from maturing high- cost liabilities.
 Maturities in the next twelve months include an additional $140 million of fixed-rate FHLB advances with an average rate of 12.21 percent and $850 million of interest rate exchange agreements with a current average payment rate of 4.69 percent. There are also $1.7 billion of retail and brokered certificates of deposit maturing over the next twelve months which bear an average rate of 4.25 percent.
 The ultimate impact on future net interest income resulting from the repricing of these liabilities will be dependent not only upon the level of interest rates but also on the level of mortgage prepayment activity, which
remained high during the quarter. Principal repayments of loans and mortgage-backed securities were $744 million in the second quarter 1993 and $1.2 billion year to date, compared to $641 million and $1.3 billion for the same periods in 1992.
 The company originated mortgage loans totaling $371 million during the second quarter of 1993 and $526 million in the year to date, compared with $226 million and $577 million in the same periods last year. Originations for the quarter included $118 million from refinancings of existing First Federal loans, compared to $33 million for the same period last year.
 At June 30, 1993, nonperforming and restructured assets were $60.8 million, or .63 percent of total assets. FirstFed's nonperforming asset levels remain substantially below the industry average.
 The company's First Federal of Michigan subsidiary is a Detroit-based savings and loan association with 68 offices in the lower peninsula of Michigan. Its retail profile includes over 320,000 retail deposit accounts and
90,000 loan customers. First Federal's Bay Savings Bank,


FSB subsidiary, based in Newport News, Virginia, operates eight offices in Virginia, and its Omni Savings Bank, FSB subsidiary has three offices in Columbia, South Carolina.
 FIRSTFED MICHIGAN CORPORATION
 Consolidated Statements of Operations
 Three Months Six Months
 Ended June 30, Ended June 30,
 1993 1992 1993 1992
 (in thousands, except per share data)
 Interest income:
 Loans $84,324 88,124 168,447 178,861
 MBS 93,414 96,432 184,951 187,996
 Investments 9,613 14,563 19,840 34,030
 Total interest
 income 187,351 199,119 373,238 400,887
 Interest expense:
 Deposits 49,943 64,308 102,189 129,502
 FHLB advances 31,799 38,543 66,169 79,266
 Borrowings 66,996 70,782 133,960 140,475
 Total interest
 expense 148,738 173,633 302,318 349,243
 Net interest
 income 38,613 25,486 70,920 51,644
 Prov for losses 750 1,500 1,500 3,000
 Net int inc
 after prov
 for losses 37,863 23,986 69,420 48,644
 Other income (expense):
 Loan fees and
 srv chgs 162 354 534 868
 Other operating
 income 1,789 2,049 3,679 3,851
 Net gains on
 invest secs 465 -- 465 7,032
 Net gains on
 lns and MBS 73 4,385 178 4,466
 Real estate
 operations (251) 162 (905) 413
 Total other
 income 2,238 6,950 3,951 16,630
 Genl and admin exps:
 Comp/benefits 10,417 9,878 20,734 20,029
 Office occup 2,032 2,017 4,179 4,246
 Fed dep insur 1,592 2,102 3,186 4,221
 Other 5,452 4,616 10,135 9,038
 Amortization of
 goodwill 802 825 1,604 1,649
 Total genl and
 admin exps 20,295 19,438 39,838 39,183
 Earn before FIT
 and cum eff of
 acctg chng 19,806 11,498 33,533 26,091
 Fed inc taxes 6,945 4,190 11,505 9,435
 Earn before
 cum eff of
 acctg chng 12,861 7,308 22,028 16,656
 Cum eff of chng
 in acctg for
 income taxes -- -- -- 7,000
 Net earnings $12,861 7,308 22,028 23,656
 Earnings per share:
 Primary (a):
 Earn before cum
 eff of acctg
 change $1.02 .65 1.77 1.48
 Cum eff of acctg
 change -- -- -- .62
 Net earnings 1.02 .65 1.77 2.10
 Fully diluted:
 Earn before cum
 eff of acctg
 change 1.02 .61 1.77 1.39
 Cum eff of acctg
 change -- -- -- .56
 Net earnings 1.02 .61 1.77 1.95
 Div per share .17 .15 .34 .30
 (a) 1993 reflects a 1.2 million increase in shares
 outstanding due to the conversion of convertible
 debt during the first quarter of 1993; these shares
 were previously included only in the computation of
 fully diluted earnings per share.
 FIRSTFED MICHIGAN CORPORATION
 Consolidated Statements of Financial Condition
 June 30, Dec 31, June 30,
 1993 1992 1992
 (in thousands)
 Assets
 Cash $44,832 46,460 48,377
 Federal funds sold
 and other 11,000 -- 6,245
 Investment securities:
 U.S. govt and
 agency sec 269,104 269,070 265,210
 Corp notes and
 comml paper 42,503 136,354 100,751
 CMOs -- 95,048 325,092
 Other 112 52,110 108
 Tot invest sec
 (fair value $336,362
 - 6/30/93) 311,719 552,582 691,161
 MBS (fair value
 $5,373,226
 - 6/30/93) 5,211,296 4,749,085 4,724,544
 MBS held for
 sale -- -- 27,051
 Loans receivable:
 Real estate lns 3,491,022 3,517,861 3,374,870
 Other loans 130,960 143,372 156,752
 Tot lns rec 3,621,982 3,661,233 3,531,622
 Real est lns rec
 held for sale
 (fair val $67,520) 66,960 -- --
 Accd int receiv 65,808 64,920 69,135
 Real estate held
 for sale 15,944 17,571 18,017
 Premises/equip 48,662 50,669 52,589
 FHLB stock,
 at cost 114,504 114,504 114,504
 Goodwill 42,454 44,058 46,268
 Fedl inc taxes
 refundable 25,862 32,797 31,457
 Other assets 51,131 65,472 63,859
 $9,632,154 9,399,351 9,424,829
 Liabilities and
 Stockholders' Equity
 Deposits:
 Check accts $265,733 277,993 242,671
 Mny mrkt accts 367,826 358,278 354,400
 Reg accts 582,645 551,773 538,061
 Retail CDs 1,373,964 1,411,756 1,521,721
 Brokered CDs 741,251 845,422 1,119,330
 Tot deposits 3,331,419 3,445,222 3,776,183
 FHLB advances 1,884,033 1,914,033 1,592,533
 Reverse repurchase
 agreements 3,471,289 3,032,025 3,000,401
 Other borrowings 110,053 227,759 222,083
 Accd int pay 109,212 131,528 136,788
 Adv pay by borr
 for taxes and
 insurance 108,565 35,550 110,818
 Liab for chks
 and mny ord issued 25,376 59,832 24,266
 Other liab 42,913 45,670 68,460
 Total liab 9,082,860 8,891,619 8,931,532
 Stockholders' equity:
 Common stock 124 111 112
 Pd-in capital 107,004 83,267 82,898
 Retd earnings 442,166 424,354 410,287
 Tot stckhldrs' equity 549,294 507,732 493,297
 $9,632,154 9,399,351 9,424,829
 FIRSTFED MICHIGAN CORPORATION
 Selected Statistical Data
 June 30, Dec 31, June 30,
 1993 1992 1992
 (dollars in thousands, except per share data)
 Consolidated equity
 ratio (pct) 5.70 5.40 5.23
 Tangible equity
 to assets (pct) 5.29 4.96 4.77
 Book value per
 share (a) 44.26 45.37 44.23
 Tangible book value
 per share (a) 40.84 41.43 40.08
 Shares O/S (a) 12,410,759 11,190,700 11,153,190
 Reg cap ratios (pct):
 Tang capital 5.20 4.83 4.62
 Core capital 5.64 5.30 5.12
 Risk-based
 capital 15.92 14.85 14.54
 Nonperforming and
 restructured assets:
 Nonacc lns $19,226 21,300 18,603
 Forcl real est 15,447 16,663 15,800
 Total NPAs 34,673 37,963 34,403
 Restruct lns 26,120 25,670 40,359
 Total NPAs and
 restruct lns $60,793 63,633 74,762
 As a percent
 of total
 assets .63 .68 .79
 Allowance for losses
 on loans $30,278 30,197 28,317
 Employees (fte) 1,240 1,285 1,358
 Full serv branches 79 82 82
 Three Months Six Months
 Ended June 30, Ended June 30,
 1993 1992 1993 1992
 ROAA (ann)
 (b) (pct) .53 .30 .46 .43
 ROAE (ann)
 (b) (pct) 9.46 5.97 8.33 8.33
 Avg equity to avg
 assets (pct) 5.57 5.09 5.49 5.11
 Average shares (a):
 Primary 12,569,007 11,270,891 12,551,364 11,251,173
 Fully diluted 12,570,212 12,478,849 12,565,263 12,476,667
 (a) 1993 primary reflects an increase in shares outstanding
 of 1.2 million and stockholders' equity of $23.4 million
 due to the conversion of convertible debt during the first
 quarter of 1993.
 (b) The cumulative effect of the change in accounting for
 income taxes of $7 million, recognized in the first quarter
 of 1992, has not been annualized.
 FIRSTFED MICHIGAN CORPORATION
 Yields and Costs Data During and at End of Period
 Three Months Six Months
 YIELDS AND COSTS Ended June 30, Ended June 30,
 DURING PERIOD 1993 1992 1993 1992
 Weighted average
 yield (pct):
 Lns receiv 9.08 9.85 9.10 9.99
 MBS 7.23 8.17 7.37 8.33
 Inv secur 6.86 6.03 6.70 6.53
 All interest-earning
 assets 7.93 8.60 8.02 8.78
 Weighted average
 cost (pct):
 Deposits 5.89 6.84 6.03 6.97
 FHLB advances 6.45 9.79 6.76 10.00
 Other borrow 7.59 8.33 7.89 8.54
 All interest-bearing
 liabilities 6.69 7.96 6.91 8.13
 Net yield on
 interest-earning
 assets (a) 1.62 1.06 1.47 1.09
 Avg int-earn
 assets (in mil) $9,445 9,264 $9,314 9,136
 YIELD AND COSTS AT June 30, Dec 31, June 30,
 END OF PERIOD 1993 1992 1992
 Weighted average
 yield (pct):
 Lns receiv 9.05 9.32 9.73
 MBS 7.20 7.73 8.26
 Inv secur 7.85 6.72 6.51
 All int-earn assets 7.97 8.31 8.68
 Weighted average
 cost (pct):
 Deposits 5.90 6.19 6.72
 FHLB advances 6.15 7.36 9.39
 Other borrowings 7.53 8.16 8.51
 All int-bear liab 6.62 7.19 7.89
 Net yield on
 int-earn assets (a) 1.75 1.50 1.24
 Interest-earning
 assets (in millions) $9,376 9,115 9,125
 (a) The yields and costs include the annualized effect of the
 interest rate exchange positions and interest rate collar
 transactions.
 FIRSTFED MICHIGAN CORPORATION
 Selected Statistical Data on Lending Portfolio
 June 30, Dec 31, June 30,
 1993 1992 1992
 (dollars in thousands)
 LOAN AND MBS PORTFOLIO
 By type of security:
 Single family $8,324,631 7,796,689 7,633,830
 Pct of total 94 93 92
 Multifamily 328,592 340,560 356,459
 Pct of total 4 4 4
 Other commercial 116,055 129,697 136,176
 Pct of total 1 1 2
 Other loans 130,960 143,372 156,752
 Pct of total 1 2 2
 Tot ln and
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Date:Jul 21, 1993
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