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JOHNSTOWN SAVINGS BANK ANNOUNCES SECOND QUARTER EARNINGS

 JOHNSTOWN SAVINGS BANK ANNOUNCES SECOND QUARTER EARNINGS
 JOHNSTOWN, Pa., July 22 /PRNewswire/ -- Johnstown Savings Bank, FSB (NASDAQ: JSBK) today announced that the bank's net earnings increased 52.7 percent in the second quarter of 1992 as compared to the same period in 1991.
 The bank reported consolidated earnings of $621,000 or $0.32 per share for the quarter ended June 30, 1992, as compared to earnings of $406,000 or $0.21 per share for the same period in 1991. The second quarter of 1992 was the 10th consecutive quarter, since December 1989, in which the bank has reported increased profits.
 For the six months ended June 30, 1992, the bank earned $1,160,000 or $0.60 per share which represented an increase of 54.4 percent in comparison to the reported earnings of $751,000 or $0.39 per share for the same six-month period in 1991. As a result of the bank's profitability in the first six months of the year, the bank's book value per share increased to $11.82 at June 30, 1992.
 The bank's annualized return on average assets increased to 0.78 percent for the six months ended June 30, 1992, as compared to 0.53 percent for the same period in 1991. The bank's six-month return on average assets is the highest for any six-month period since the bank's conversion to a stock institution in 1986. The bank also announced that total assets increased to $294.7 million at June 30, 1992, as compared to $293.6 million at Dec. 31, 1991, and $285.8 million at June 30, 1991. The bank's capital-to-assets ratio was 7.8 percent at June 30, 1992, which is above industry averages and well in excess of regulatory requirements.
 Patrick J. Coyne, president and chief executive officer, noted that the bank's net interest margin, before provisions for loan losses, increased 29.1 percent to $5.2 million for the six months ended June 30, 1992, from $4.0 million for the same period in 1991. In addition, the bank recognized significant non-recurring gains on the sale of appreciated securities as well as significant charges to income in the form of provisions for potential losses on loan assets and real estate acquired by foreclosure.
 During the three months ended June 30, 1992, the bank recorded gains on the sale of certain securities previously held in its investment portfolio. During the quarter, the bank sold $25.5 million in investment securities resulting in a net gain of $703,000. Coyne explained that these securities were sold in order to improve the position of the bank in consideration of anticipated interest rate trends and mortgage market activity. The sold securities were replaced with purchased mortgage-backed securities that management said it believes will enhance the bank's overall earnings and reduce its susceptibility to interest-rate risk in the foreseeable future. Coyne noted that this transaction was a "one-time restructuring" of the bank's investment portfolio and that further transactions of this type would be highly unlikely.
 The bank increased its loan loss provision to $795,000 in the first six months of 1992 as compared with $647,000 during the same period of 1991. In addition, the bank increased its provision for losses and other related charges for real estate acquired by foreclosure to $1.1 million for the six months ended June 30, 1992, as compared with $23,000 for the same period in 1991. Coyne stated that these increases are an integral part of the bank's ongoing strategy to expeditiously strengthen its balance sheet and improve its overall asset quality. He stressed that these additional provisions were necessitated by continued weakness in national real estate markets.
 Non-accrual loans, restructured loans and real estate owned, net of applicable reserves, decreased from $15.6 million at March 31, 1992, and $15.7 million at Dec. 31, 1991, to $14.3 million at June 30, 1992. The bank's allowance for loan losses at June 30, 1992, and Dec. 31, 1991, stood at $3.2 million or 2.0 percent and $3.0 million or 1.8 percent, respectively, of the total loan portfolio. The bank also carried allowances of $1.5 million at June 30, 1992, for additional losses related to real estate acquired through foreclosure as compared with allowances of $1.2 million at Dec. 31, 1991. Total real estate acquired via foreclosure, net of applicable reserves, was $6.2 million at June 30, 1992, and Dec. 31, 1991.
 Coyne affirmed that earnings for the full year ended Dec. 31, 1992, would be approximately $1.30 per share. He characterized the $1.30 earnings per share estimate, which had been projected in a recently published report prepared by an independent brokerage firm, as "both reasonable and attainable." The bank earned $0.83 per share for the year ended Dec. 31, 1991.
 Johnstown Savings Bank is a federally chartered, FDIC-insured savings bank which conducts its business through five offices in the Greater Johnstown area and through its wholly owned subsidiary, Standard Mortgage Corporation of Georgia, located in Atlanta.
 JOHNSTOWN SAVINGS BANK, FSB
 Summary of Operating Results
 Quarter Ended June 30 1992 1991
 Net income $621,000 $406,000
 Earnings per share $0.32 $0.21
 Six Months Ended June 30 1992 1991
 Net income $1,160,000 $751,000
 Earnings per share $0.60 $0.39
 Total assets 294,708,000 285,846,000
 /delval/
 -0- 7/22/92
 /CONTACT: Patrick J. Coyne, president & CEO, or Walter F. Rusnak, senior v.p. & CFO of Johnstown Savings Bank, 814-535-8900/
 (JSBK) CO: Johnstown Savings Bank, FSB ST: Pennsylvania IN: FIN SU: ERN


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Date:Jul 22, 1992
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