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FORTUNE BANCORP REPORTS YEAR END EARNINGS

 CLEARWATER, Fla., Nov. 8 /PRNewswire/ -- For its fiscal year ended Sept. 30, 1993, Fortune Bancorp, Inc. (NASDAQ: FORB) reported net income of $9.2 million, up 45 percent from the $6.4 million recorded the previous year. This amounts to $1.23 per common share, compared with $1.15 per common share a year earlier.
 Highlights of fiscal 1993 included:
 -- Announcement of Fortune's merger into AmSouth Bancorporation (NYSE: ASO), one of the most prominent banking companies in the Southeast.
 -- Strong mortgage loan origination of $1.5 billion, exceeding last year's record breaking performance by 32 percent.
 -- A 38 percent reduction in nonperforming loans, including a 43 percent decline in nonaccrual loans.
 -- An operating and financial restructuring, which included a special charge-off in the most recent period of $13 million reflecting the impact of the quarter's high mortgage prepayments on the company's purchased mortgage servicing assets.
 "In all respects, 1993 was a good year. The fundamentals of our business are sound and the economy has turned around and is moving ahead," said Chairman of the Board John R. Torell III.
 For the fourth quarter ended Sept. 30, 1993, Fortune Bancorp reported a net loss of $376,000, or $.19 per common share. These results compare with net income of $1.6 million, or $.28 per common share, for the same period a year ago.
 The fourth quarter included a series of nonrecurring items, including a charge of $13 million ($18 million for the year), reflecting a reduction in the value of purchased mortgage servicing assets. This charge is the result of the extraordinary level of home mortgage refinancings, particularly in the quarter just ended, and the expectation of continued high refinancing levels due to the current interest rate environment.
 Other nonrecurring items for the quarter were the realization of a $2.3 million tax benefit from the utilization of a capital loss carryforward and $2.3 million of securities gains for the quarter. The latter gains resulted from the restructuring of the securities portfolio.
 "Our goal is to maintain a strong balance sheet, and the charge reflecting rapid loan repayments of home mortgages is part of that equation," Torell noted.
 For the year ended Sept. 30, 1993, net interest income was $71 million, compared with $64.2 million for fiscal 1992. Net interest income for the three months ended Sept. 30, 1993, was $16.6 million, compared with $16.0 million for the same quarter a year ago.
 Fortune's net interest margin for the fourth quarter of fiscal 1993 was 2.65 percent, compared with 2.70 percent for the same period in fiscal 1992. The reduction in the percentage net interest margin results in part from Fortune's continued emphasis on investing in short and intermediate term assets. Fortune has not been willing to accept the interest rate risk of longer term assets. The net interest margin for the year ended Sept. 30, 1993, was 2.85 percent compared with 2.57 percent in fiscal 1992.
 At Sept. 30, 1993, nonperforming assets were reduced to $66.0 million, a 35 percent reduction from $101.6 million at Sept. 30, 1992. This quarter's results mark the seventh consecutive quarter of reduced nonperforming asset levels from a high of $121.0 million at Dec. 31, 1991.
 For the quarter ended Sept. 30, 1993, noninterest expense amounted to $14.5 million compared with $13.5 million for the quarter ended Sept. 30, 1992. For the year, noninterest expense totaled $55.4 million, compared with $52.1 million in 1992.
 In September, Fortune Bancorp and AmSouth Bancorporation announced the signing of a definitive agreement, subject to due diligence, whereby Fortune Bancorp would be acquired by AmSouth. The due diligence process is underway. The acquisition is expected to be completed by mid-1994, pending approvals by regulatory authorities and Fortune's common and preferred shareholders.
 Fortune Bank maintains a strong capital position, exceeding all three capital requirements under federal regulations:
 Fortune
 Bank Requirement
 Core Capital 6.46 pct. 3.00 pct.
 Tangible Capital 6.11 pct. 1.50 pct.
 Risk-based Capital 14.39 pct. 8.00 pct.
 Fortune Bancorp is the holding company for Clearwater-based Fortune Bank, the largest independent financial institution headquartered on the west coast of Florida. With $2.6 billion in assets, Fortune operates 46 full-service banking offices in eight Florida counties.
 FORTUNE BANCORP, INC.
 Three Months Year
 Ended Sept. 30, Ended Sept. 30,
 1993 1992 1993 1992
 CONSOLIDATED STATEMENTS
 OF OPERATIONS (UNAUDITED) (In thousands, except per share data)
 Interest income:
 Interest on
 mortgage loans $ 21,018 $ 25,981 $ 90,563 $ 119,167
 Interest on
 mortgage-backed
 securities 11,100 10,238 46,158 44,326
 Interest on other loans 5,265 6,630 23,154 29,417
 Interest and dividends on
 investments and deposits 2,219 1,552 8,776 9,273
 Total interest income 39,602 44,401 168,651 202,183
 Interest expense:
 Interest on deposits 17,097 25,133 75,848 122,050
 Interest on borrowings 5,932 3,306 21,817 15,935
 Total interest expense 23,029 28,439 97,665 137,985
 Net interest income 16,573 15,962 70,986 64,198
 Provision for loan losses 2,523 4,658 13,819 17,163
 Net interest income after
 provision for loan losses 14,050 11,304 57,167 47,035
 Noninterest income:
 Loan servicing fees (13,053) 409 (15,787) 2,335
 Other loan fees 660 536 2,408 2,293
 Gains (losses) on
 sales of loans 1,098 400 3,134 (577)
 Gains on sales of mortgage
 loan servicing rights 3,660 2,513 9,755 5,142
 Gains (losses) on investment
 and mortgage-backed securi-
 ties transactions 2,281 (480) 6,759 6,294
 Real estate operations (672) (139) (2,668) (798)
 Other income 1,695 1,027 5,546 3,885
 Total noninterest income (4,331) 4,266 9,147 18,574
 Noninterest expenses:
 Compensation 5,599 6,189 23,995 22,360
 Occupancy and equipment 2,144 2,179 8,641 8,516
 Deposit Insurance 1,314 1,302 5,378 5,502
 Amortization of goodwill
 and core deposit
 intangible 401 439 1,679 2,164
 Other 5,010 3,368 15,737 13,559
 Total noninterest expenses 14,468 13,477 55,430 52,101
 Income (loss) before
 income taxes and
 extraordinary items (4,749) 2,093 10,884 13,508
 Income tax expense
 (benefit) (2,054) 533 3,969 7,677
 Income (loss) before
 extraordinary items (2,695) 1,560 6,915 5,831
 Extraordinary items, net 2,319 --- 2,319 519
 Net income (loss) $ (376) $ 1,560 $ 9,234 $ 6,350
 Net income (loss)
 available to common
 shareholders $ (1,066) $ 1,560 $ 6,934 $ 6,350
 Earnings (loss) per
 common and common
 equivalent share:
 Before extraordinary
 items $ (.60) $ .28 $ .82 $ 1.06
 Net (.19) .28 1.23 1.15
 Average shares
 outstanding 5,640,755 5,531,957 5,624,106 5,512,511
 FORTUNE BANCORP, INC.
 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 Sept. 30, 1993 Sept. 30, 1992
 (Unaudited)
 ASSETS (In thousands)
 Cash and due from banks $ 47,728 $ 31,551
 Federal funds sold 92,977 88,796
 Assets available for sale:
 Investment securities 92,976 96,140
 Mortgage-backed securities 308,110 119,346
 Mortgage loans 94,621 176,210
 Investment securities (market
 value: $31,262) 31,110 ---
 Mortgage-backed securities,
 net (market value: $424,620
 and $437,440, respectively) 421,426 432,428
 Loans receivable (net of
 allowance for loan losses of
 $23,488 and $ 26,111,
 respectively) 1,325,267 1,464,850
 Investments in real estate 10,025 11,886
 Office properties and equipment,
 at cost, less accumulated
 depreciation 36,763 33,793
 Accrued interest receivable 13,294 17,065
 Federal Home Loan Bank stock,
 at cost 17,812 19,031
 Goodwill and core deposit
 intangible, net 13,958 15,462
 Loan servicing rights, net 32,589 26,542
 Other assets 12,124 17,047
 $ 2,550,780 $ 2,550,147
 LIABILITIES AND
 SHAREHOLDERS' EQUITY
 Deposit accounts $ 1,826,182 $ 2,040,743
 Advances from Federal Home
 Loan Bank 226,000 140,000
 Other borrowed money 156,501 144,893
 Due to banks 13,542 13,637
 Advance payments by borrowers
 for taxes, insurance and
 undisbursed investor principal 151,840 61,337
 Other liabilities 8,273 22,632
 Total liabilities 2,382,338 2,423,242
 Shareholders' equity:
 Preferred Stock, $.01 par value,
 3 million shares authorized;
 1,380,000 shares Series A
 8 percent cumulative convertible
 shares outstanding 14 ---
 Common stock, $.01 par value,
 10 million shares authorized;
 5,589,178 and 5,529,646 shares
 issued and outstanding,
 respectively 56 55
 Capital surplus 109,615 75,678
 Retained income 56,671 51,172
 Unrealized holding gain on
 securities, net 2,086 ---
 Total shareholders' equity 168,442 126,905
 $ 2,550,780 $ 2,550,147
 FORTUNE BANCORP, INC.
 1993
 Sept. 30, June 30, March 31,
 (In thousands, except per share data)
 EARNINGS SUMMARY
 Net Interest Income $ 16,573 $ 18,189 $18,007
 Provision for Loan Losses 2,523 2,397 3,603
 Net interest income after
 provision for loan losses 14,050 15,792 14,404
 Non-interest income (4,331) 2,238 3,320
 Non-interest expense 14,468 13,695 13,474
 Income (loss) before income
 taxes and extraordinary items (4,749) 4,335 4,250
 Income tax expense (benefit) (2,054) 1,703 1,329
 Income (loss) before
 extraordinary items (2,695) 2,632 2,921
 Extraordinary items, net 2,319 --- ---
 Net income (loss) $ (376) $ 2,632 $ 2,921
 Primary earnings (loss)
 per common and common
 equivalent share $ (.19) $ .35 $ .40
 Fully diluted earnings (loss)
 per common and common
 equivalent share (.19) .35 .39
 Average common shares
 outstanding 5,640,755 5,621,449 5,581,970
 AVERAGE BALANCE SHEET SUMMARY
 Loans and mortgage-backed
 securities $2,278,764 $2,357,964 2,229,414
 Investments 219,506 188,140 207,870
 Earning assets 2,498,270 2,546,104 2,437,284
 Deposits 1,852,375 1,896,841 1,957,389
 Borrowings 457,309 483,166 349,613
 Interest bearing liabilities 2,309,684 2,380,007 2,307,002
 Shareholders' equity 167,542 167,067 164,525
 OTHER FINANCIAL DATA
 Return on average asset (.06)pct. .39 pct. .45 pct.
 Return on average equity (.90) 6.30 7.09
 Net interest margin 2.65 2.85 2.95
 Regulatory capital:
 Core 6.46 6.07 6.06
 Tangible 6.11 5.73 5.71
 Risk-based 14.39 13.40 13.40
 Allowance for loan losses as
 percentage of loans 1.77 1.77 1.69
 Allowance for loan losses as
 percentage of nonperforming loans 42.17 33.90 33.92
 Nonperforming assets:
 Nonaccrual loans $ 48,437 $ 70,070 $ 69,681
 Restructured troubled debt 7,256 3,886 4,294
 Total nonperforming loans 55,693 73,956 73,975
 Other real estate and other
 assets owned 10,280 11,776 14,565
 Total nonperforming assets $ 65,973 $ 85,732 $ 88,540
 1992
 Dec. 31, Sept. 30,
 (In thousands, except per share data)
 EARNINGS SUMMARY
 Net Interest Income $ 18,217 $ 15,962
 Provision for Loan Losses 5,296 4,658
 Net interest income after
 provision for loan losses 12,921 11,304
 Non-interest income 7,920 4,266
 Non-interest expense 13,793 13,477
 Income (loss) before
 income taxes and
 extraordinary items 7,048 2,093
 Income tax expense (benefit) 2,991 533
 Income (loss) before
 extraordinary items 4,057 1,560
 Extraordinary items, net --- ---
 Net income (loss) $ 4,057 $ 1,560
 Primary earnings (loss)
 per common and common
 equivalent share $ .69 $ .28
 Fully diluted earnings (loss)
 per common and common
 equivalent share .63 .28
 Average common shares
 outstanding 5,527,974 5,531,957
 AVERAGE BALANCE SHEET SUMMARY
 Loans and mortgage-backed
 securities $2,268,939 $2,158,166
 Investments 175,053 204,678
 Earning assets 2,443,992 2,362,844
 Deposits 2,015,239 2,079,849
 Borrowings 322,908 187,192
 Interest bearing liabilities 2,338,147 2,267,041
 Shareholders' equity 141,391 126,247
 OTHER FINANCIAL DATA
 Return on average asset .63 pct. .25 pct.
 Return on average equity 11.48 4.94
 Net interest margin 2.97 2.70
 Regulatory capital:
 Core 6.21 5.03
 Tangible 5.83 4.64
 Risk-based 12.60 10.44
 Allowance for loan losses as
 percentage of loans 1.90 1.75
 Allowance for loan losses as
 percentage of nonperforming loans 31.83 29.11
 Nonperforming assets:
 Nonaccrual loans $ 81,683 $ 85,415
 Restructured troubled debt 4,294 4,294
 Total nonperforming loans 85,977 89,709
 Other real estate and
 other assets owned 15,368 11,910
 Total nonperforming assets $ 101,345 $ 101,619
 -0- 11/8/93
 /CONTACT: Nancy Kaylor of Fortune Bancorp, 813-538-1114/
 (FORB ASO)


CO: Fortune Bancorp, Inc. ST: Florida IN: FIN SU: ERN

AW-JB -- FL003 -- 1599 11/08/93 08:59 EST
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