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JOHNSTOWN SAVINGS BANK ANNOUNCES THE REINSTATEMENT OF A REGULAR QUARTERLY DIVIDEND AND REPORTS FIRST QUARTER 1993 NET INCOME

 JOHNSTOWN, Pa., April 21 /PRNewswire/ -- Johnstown Savings Bank (NASDAQ: JSBK) today announced the reinstatement of a regular quarterly dividend and declared a first quarter cash dividend of $0.05 per share, payable on May 21, 1993, to stockholders of record as of May 3, 1993.
 Patrick J. Coyne, president and chief executive officer, stated that the amount of quarterly dividend declarations in the future will depend, in part, upon the earnings and financial condition of the bank and applicable regulatory rules and policies.
 In a related announcement, the bank reported consolidated net income of $719,000 or $0.37 per share for the quarter ended March 31, 1993. The bank's net income for the quarter represents an annualized return on average assets of 0.89 percent. Net income for the first quarter of 1992, as restated, was $2,166,000 or $1.12 per share, which included the recognition of a non-recurring cumulative benefit of $1,673,000 or $0.86 per share. This benefit resulted from a change in the method of accounting for income taxes following the bank's adoption of Statement of Financial Accounting Standards No. 109 (SFAS-109) "Accounting for Income Taxes." Pre-tax net income, before the cumulative effect of the adoption of SFAS-109, increased $420,000 or 73.7 percent from $571,000 or $0.29 per share for the three months ended March 31, 1992, to $991,000 or $0.51 per share for the same three-month period in 1993.
 Coyne also announced that the bank increased its total assets to $328.6 million at March 31, 1993, as compared to $320.4 million at Dec. 31, 1992, and $299.0 million at March 31, 1992. At March 31, 1993, shareholders' equity was $25.1 million or $12.93 per share. The bank's capital to assets ratio was 7.6 percent at March 31, 1993.
 Coyne stated that the $420,000 increase in earnings, before taxes and the cumulative benefit arising from the adoption of SFAS-109, in the first quarter of 1993 as compared with the same period in 1992 was due to the positive effects of securities sales gains and an increase in the bank's net interest margin, partially offset by an increase in the provision for loan losses. During the three-month period ended March 31, 1993, the bank recorded gains of $539,000 on the sale of securities as compared with a recorded loss of $118,000 in the same period of 1992. Net interest margin, before provisions for loan losses, also increased $141,000 or 5.4 percent from $2.6 million for the quarter ended March 31, 1992, to $2.8 million for the quarter ended March 31, 1993. During the quarter ended March 31, 1993, the bank increased its loan loss provision to $760,000 as compared with $365,000 during the same period in 1992. Coyne noted that the security sales were made in order to improve the position of the bank's portfolio in anticipation of interest rate trends and that management continued the process of restructuring the bank's balance sheet through aggressive increases in loan loss provisions. "We believe that these restructuring activities will enhance the bank's profitability in future periods and further increase shareholder value over time," Coyne said.
 Total reserves as a percentage of non-accrual loans, restructured loans and real estate owned increased to 57.1 percent at March 31, 1993, from 47.8 percent at Dec. 31, 1992, and 23.0 percent at March 31, 1992. Non-accrual loans, restructured loans and real estate owned, net of applicable reserves, decreased from $15.6 million at March 31, 1992, and $10.7 million at Dec. 31, 1992, to $8.8 million at March 31, 1993. The bank's allowance for loan losses at March 31, 1993, and Dec. 31, 1992, stood at $4.5 million or 2.9 percent and $4.1 million or 2.6 percent, respectively, of the total loan portfolio. The bank also carried allowances of $1.2 million at March 31, 1993, for additional losses related to real estate acquired through foreclosure as compared with allowances of $2.1 million at Dec. 31, 1992. The decrease in the allowance for potential real estate acquired through foreclosure losses was the result of a decline in the carrying amount of the bank's holdings of real estate acquired through foreclosure in the first quarter of 1993. Net of applicable reserves, real estate acquired by foreclosure declined 21.8 percent from $4.6 million at Dec. 31, 1992, to $3.6 million at March 31, 1993.
 Johnstown Savings Bank is a Pennsylvania-chartered, FDIC-insured savings bank which conducts its business through six offices in the Greater Johnstown area and through its wholly-owned subsidiary, Standard Mortgage Corporation of Georgia, located in Atlanta.
 JOHNSTOWN SAVINGS BANK
 Summary of Operating Results
 Quarter Ended March 31 1993 1992
 Net income before taxes (A) $991,000 $571,000
 Income taxes 272,000 78,000
 Income before cumulative effect of
 change in accounting principle 719,000 493,000
 Cumulative benefit from change in method
 of accounting for income taxes -- 1,673,000
 Net income 719,000 2,166,000
 Provision for loan losses 760,000 365,000
 Net income per share before cumulative
 benefit from change in method of
 accounting for income taxes $0.37 $0.25
 Per share cumulative benefit from change
 in method of accounting for income taxes -- $0.86
 Net income per share $0.37 $1.12
 Average shares outstanding 1,960,083 1,940,150
 Total assets at March 31 328,563,000 299,045,000
 Annualized return on average assets
 (ROA) (A) (pct.) 0.89 0.67
 Annualized return on average assets
 (ROA) (pct.) 0.89 2.92
 Annualized return on average equity
 (ROE) (A) (pct.) 11.64 8.63
 Annualized return on average equity
 (ROE) (pct.) 11.64 37.90
 (A) Before cumulative benefit from change in method of accounting for income taxes.
 /delval/
 -0- 4/21/93
 /CONTACT: Patrick J. Coyne, president & CEO, or Walter F. Rusnak, senior v-p/CFO, both of Johnstown Savings Bank, 814-535-8900/
 (JSBK)


CO: Johnstown Savings Bank ST: Pennsylvania IN: FIN SU: ERN

DM-KC -- PG011 -- 8578 04/21/93 09:55 EDT
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Date:Apr 21, 1993
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