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JEFFERSON SAVINGS REPORTS RESULTS

 BALLWIN, Mo., Oct. 25 /PRNewswire/ -- Jefferson Savings Bancorp Inc. (NASDAQ-NMS: JSBA)(the company), the holding company for Jefferson Savings and Loan Association (the Association), reported net income for the third quarter of 1993 of $1,075,000 or 24 cents per share. This compares with net income of $1,053,000 for the third quarter of 1992. The company reported net income of $3,410,000 for the nine months ended Sept. 30, 1993, compared to $3,351,000 for the corresponding period a year ago.
 Return on average assets and return on average equity were .91 percent and 5.97 percent respectively, for the third quarter of 1993 compared to .98 percent and 13.49 percent for the third quarter of 1992. For the nine-month period, return on average assets and return on average equity were 1.01 percent and 8.05 percent, respectively, in 1993 compared to 1.01 percent and 14.83 percent in 1992. The decline in return on average equity during 1993 was the result of the capital infusion from the recent stock conversion.
 Jefferson Savings and Loan Association converted from a state chartered mutual savings and loan association to a state chartered stock association and became a wholly owned subsidiary of Jefferson Savings Bancorp on April 8, 1993. At the date of conversion, the company completed the sale of 4,470,049 shares of common stock for $10 per share resulting in net proceeds of $37.3 million.
 A stock repurchase program to acquire up to 223,500 shares of the company's outstanding common stock was initiated on July 1, 1993. The company repurchased 89,000 shares during the quarter ended Sept. 30, 1993. The repurchased shares are held as treasury stock and will be available for issuance upon the exercise of outstanding stock options and for other corporate purposes. The company's book value per share at Sept. 30, 1993, was $15.84.
 The company's total assets have grown $53.4 million or 12.7 percent, since Dec. 31, 1992, to $471.6 million at Sept. 30, 1993. The increase was primarily the result of the purchase of mortgage-backed securities with $43.9 million of borrowed money and the investment of the proceeds from the stock conversion.
 Net interest income for the third quarter of 1993 increased $190,000, or 5.7 percent, compared to the third quarter of 1992. The increase was attributable to an increase in the ratio of average interest-earning assets to average interest-bearing liabilities. This was partially offset by a decrease in the company's interest rate spread as rates paid on savings deposits remained relatively flat and mortgage loan rates on existing loans continued to adjust downward.
 The provision for losses on loans for the third quarter of 1993 was $60,000 compared to $193,000 for the like period in 1992. At Sept. 30, 1993, the allowance for losses on loans was $3,130,000 which represented 1.10 percent of total loans compared to $2,974,000 or 1.04 percent of total loans at Dec. 31, 1992. The ratio of nonaccruing loans to total loans was .28 percent at Sept. 30, 1993, compared to .21 percent at Dec. 31, 1992.
 Non interest income for the third quarter of 1993 was $636,000 compared to $234,000 for the third quarter of 1992. The increase was generally attributable to a $421,000 increase in the gain on sale of mortgage-backed securities that were held for sale.
 Noninterest expense for the third quarter of 1993 was $2.3 million compared to $1.6 million for the third quarter of 1992. The increase was due primarily to a $360,000 recovery of a litigation loss which significantly reduced noninterest expense during the corresponding period in 1992, the compensation expense that accompanied the company's new employee benefit plans adopted at the time of the stock conversion, and the hiring of additional employees to strengthen the company's financial services and loan production staff in the third quarter of 1993.
 Jefferson Savings Bancorp., has nine offices located in the St. Louis area. The stock of Jefferson Savings Bancorp is listed on the NASDAQ National Market System under the symbol JSBA.
 JEFFERSON SAVINGS BANCORP INC. AND SUBSIDIARY
 Condensed Consolidated Balance Sheets (Unaudited)
 (Dollars In Thousands)
 Sept. 30, Dec. 31,
 1993 1992
 Assets
 Cash, interest-bearing deposits
 and federal funds sold $10,902 $17,151
 Investment securities(a) (b) 41,263 63,574
 Mortgage-backed securities, net(b) 120,078 36,748
 Loans receivable, net(c) 284,691 285,104
 Investment in real estate, net 7,946 8,673
 Office properties and equipment, net 3,779 3,941
 Accrued income and other assets 2,895 3,026
 $471,554 $418,217
 Liabilities and Stockholders' Equity
 Liabilities:
 Savings deposits 347,852 379,190
 Borrowed money 43,925 ---
 Accrued expenses and other liabilities 7,571 6,379
 Total liabilities 399,348 385,569
 Stockholders' equity:
 Preferred stock ($.01 par value):
 Authorized 20,000,000 shares;
 non issued --- ---
 Common stock ($.01 par value):
 Authorized 20,000,000 shares;
 issued 4,470,049 shares at Sept. 30,
 1993 and none at Dec. 31, 1992 45 ---
 Paid-in capital 42,436 ---
 Retained earnings 36,058 32,648
 Unamortized restricted stock awards (1,518) ---
 Guarantee of ESOP indebtedness (3,439) ---
 Treasury stock, at cost; 89,000
 shares at Sept. 30, 1993 and none at
 Dec. 31, 1992 (1,376) ---
 Total stockholders' equity 72,206 32,648
 $471,554 $418,217
 (a) Includes stock in Federal Home Loan Bank.
 (b) Includes securities available for sale.
 (c) Includes loans held for sale.
 JEFFERSON SAVINGS BANCORP INC. AND SUBSIDIARY
 Condensed Consolidated Statements of Income (Unaudited)
 (In thousands, except per share data)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Interest and dividend
 income $7,125 $7,915 $21,249 $25,444
 Interest expense 3,605 4,585 10,913 15,050
 Net interest income 3,520 3,330 10,336 10,394
 Provision for losses
 on loans 60 193 180 644
 Net interest income
 after provision for
 losses on loans 3,460 3,137 10,156 9,750
 Noninterest income:
 Gain on sale of loans
 receivable, net 38 34 101 122
 Gain on sale of mortgage-
 backed securities 421 --- 421 ---
 Gain on sale of
 investment securities --- 16 --- 16
 Gain on real estate
 operations (10) 66 402 555
 Other 187 118 477 411
 Total noninterest income 636 234 1,401 1,104
 Noninterest expense -
 general and administrative:
 Compensation and
 employee benefits 1,273 882 3,471 2,756
 Occupancy 327 302 943 896
 Federal insurance premiums 229 225 568 690
 Recovery of loss on
 litigation --- (360) --- (360)
 Other 504 578 1,305 1,267
 Total noninterest
 expense 2,333 1,627 6,287 5,249
 Income before income
 taxes 1,763 1,744 5,270 5,605
 Income tax expense 688 691 1,860 2,254
 Net income $1,075 $1,053 $3,410 $3,351
 Earnings per share(a) $0.24 NA NA NA
 (a) Earnings per share information for periods prior to the quarter
 ended Sept. 30, 1993 is not applicable. The company completed
 its initial public stock offering on April 8, 1993.
 JEFFERSON SAVINGS BANCORP INC. AND SUBSIDIARY
 Key Operating Ratios
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Earnings per share(a) $0.24 NA NA NA
 Return on average
 equity(b) (percent) 5.97 13.49 8.05 14.83
 Return on average
 assets(b) (percent) 0.91 0.98 1.01 1.01
 Net yield on average
 interest-earnings
 assets(b) (percent) 3.09 3.23 3.18 3.27
 Interest rate spread(b)
 (percent) 2.58 2.98 2.79 3.03
 Average interest-earnings
 assets to average
 interest-bearing
 liabilities (percent) 116.16 105.40 111.87 105.09
 Noninterest expense to
 average assets(b)
 (percent) 1.98 1.55 1.87 1.56
 At At
 Sept. 30, Dec. 31,
 1993 1992
 Book value per share(a) $15.84 NA
 Equity to total assets (percent) 15.31 7.81
 Allowance for loan losses to
 nonaccruing loans (percent) 392.23 502.38
 Allowance for loan losses
 to total loans (percent) 1.10 1.04
 Nonaccruing loans to total
 loans (percent) 0.28 0.21
 Restructured and nonaccruing loans
 and foreclosed assets, net to total
 assets (percent) 2.34 2.77
 (a) Per share information for periods prior to the quarter ended
 Sept. 30, 1993 is not applicable. The company completed its
 initial public stock offering on April 8, 1993.
 (b) Ratios for interim periods have been annualized.
 -0- 10/25/93
 /CONTACT: Paul J. Milano of Jefferson Savings Bancorp, 314-227-3000/
 (JSBA)


CO: Jefferson Savings Bancorp Inc. ST: Missouri IN: FIN SU: ERN

BB -- DV006 -- 6566 10/25/93 17:25 EDT
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Date:Oct 25, 1993
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