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NATIONAL COMMUNITY BANKS, INC. REPORTS SECOND QUARTER RESULTS

 WEST PATERSON, N.J., July 30 /PRNewswire/ -- National Community Banks, Inc. (NASDAQ: NCBR) today reported second quarter and six months results. As a result of accruals, reserves and charges taken in contemplation of the pending merger with The Bank of New York Company, Inc., National Community reported net losses of $12.3 million and $3.8 million for the three and six months ended June 30, 1993, as compared with net income of $5.4 million and $10.1 million for the three and six months ended June 30, 1992. On a primary earnings (loss) per common share basis, National Community reported net losses of $1.20 per share and $0.46 per share for the three and six months ended June 30, 1993, as compared with net income of $0.51 per share and $0.96 per share for the same periods in 1992.
 National Community's net interest income was $46.1 million and $90.7 million for the three and six months ended June 30, 1993, representing increases of 7.9 percent and 7.3 percent, respectively, over net interest income for the three and six months ended June 30, 1992. CEO James Peters stated: "The bank's core deposit base, which provided a favorable cost of funds, resulted in improvements in our net interest margin which, in turn, contributed to our positive net interest income performance."
 During the second quarter of 1993, National Community recognized a non-recurring gain of $10.0 million resulting from securities transactions related to repositioning in the bank's investment portfolio. Excluding securities transactions, non-interest income increased by $0.7 million or 6.9 percent for the 1993 second quarter and by $1.3 million or 6.8 percent for the first six months of 1993, in each case as compared with the respective 1992 periods. Mr. Peters further stated: "We remain pleased with the extent to which fee-based income has supplemented our net interest income."
 National Community's provision for loan and lease losses increased from $6.0 million and $12.0 million for the three and six months ended June 30, 1992 to $10.5 million and $14.0 million for the three and six months ended June 30, 1993. National Community's non-interest expenses for the three and six months ended June 30, 1993 included $34.5 million of pre-tax restructuring charges taken in contemplation of the merger.
 Asset quality continues to improve. National Community's non- performing loans, consisting of loans on which interest is not currently being accrued and renegotiated loans, declined 37.4 percent to $50.6 million at June 30, 1993 from $80.9 million one year ago. Non- performing assets, which include non-performing loans, in-substance foreclosures, and other real estate owned, totaled $80.3 million at June 30, 1993 versus $176.5 million at June 30, 1992, a decrease of $96.2 million or 54.5 percent. Net charge-offs were $10.2 million for the second quarter of 1993, and $10.8 million for the first six months of 1993, as compared with $5.3 million and $8.8 million for the second quarter and first six months of 1992. At June 30, 1993, the Allowance for Loan and Lease Losses stood at $72.2 million versus $79.1 million one year ago and represented 142.7 percent of non-performing loans and 3.39 percent of total loans versus 97.8 percent and 3.42 percent, respectively, at June 30, 1992.
 At June 30, 1993, National Community's leverage capital ratio of equity capital to average quarterly assets stood at 6.27 percent as compared with 6.41 percent one year ago. Tier I and combined Tier I and Tier II risk adjusted capital ratios were 11.06 percent and 12.33 percent, respectively, at June 30, 1993 versus 9.73 percent and 11.00 percent, respectively, one year ago.
 CEO James Peters stated that: "We fully expect to close the Merger during August."
 National Community Banks, Inc. serves New Jersey with 117 banking facilities in 13 counties.
 -0- 7/30/93
 /CONTACT: Anthony J. Franchina, executive vice president and treasurer (Financial), 201-357-7106, or Arthur C. Ramirez, first senior vice president (Media), 201-357-7109, both of National Community Banks, Inc./
 (NCBR)


CO: National Community Banks, Inc. ST: New Jersey IN: FIN SU: ERN

LD-OS -- NY069 -- 7946 07/30/93 17:05 EDT
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Date:Jul 30, 1993
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