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SECURITY FINANCIAL HOLDING COMPANY ANNOUNCES RECORD EARNINGS IN 1991

SECURITY FINANCIAL HOLDING COMPANY ANNOUNCES RECORD EARNINGS IN 1991
 DURHAM, N.C., Jan. 20 /PRNewswire/ -- Security Financial Holding Company (NASDAQ-NMS: SECF), the parent of Security Federal Savings Bank, Durham, N.C., reported fourth quarter earnings of $760,809, or $0.67 per share, compared with $651,581, or $0.55 per share, in the fourth quarter of 1990. This 17 percent increase (22 percent on a per share basis) in earnings represented a return on assets of 0.96 percent for the fourth quarter of 1991 versus 0.95 percent for the same period in 1990. Return on equity increased to 10.66 percent from 9.58 percent in last year's fourth quarter.
 Net income for the year ended Dec. 31, 1991 was $2,912,729, or $2.54 per share, an increase of 26 percent (32 percent on a per share basis) over 1990's earnings of $2,307,630, or $1.92 per share. Return on assets increased to 0.98 percent in 1991 from 0.88 percent in 1990. Return on equity remained stable at 10.41 percent in 1991 versus 10.50 percent in 1990.
 Net interest income reflected excellent growth, increasing 26 percent during the year, and benefitted from an increase in earning assets as well as a significant improvement in the net interest rate spread. In addition, fees and other income sharply increased, growing 39 percent from 1990 levels. Most of the increase in fees was attributable to higher utilization of services and growth in deposit accounts. Noninterest expense, as a percent of average assets, remained essentially unchanged from prior year levels.
 During the year, stockholders' equity increased to $28.9 million, which represented 8.9 percent of assets. Book value per share was $25.71 as of Dec. 31, 1991, a ten percent increase from book value of $23.38 at the end of 1990. Total assets grew 18 percent to $325 million. The growth in assets continued to be directed towards low-risk, single-family residential lending and high quality government securities. During 1991, 91 percent of all loan originations were secured by one- to four-family residential property.
 As a result of this emphasis on conservative lending, asset quality has remained high. Delinquencies and real estate owned continued to decline from the second and third quarter levels, totaling $2.4 million, or 0.75 percent of total assets, as of Dec. 31, 1991. In spite of this improvement in asset quality, management continues to consider it prudent to increase its loan loss reserves given the continued weakness in real estate markets. As of Dec. 31, 1991, the allowance for loan losses was $1.31 million, or 105 percent of delinquencies, versus $0.95 million, or 79 percent of delinquencies at Dec. 31, 1990.
 Commenting on the results, Larry D. Brock, President and Chief Executive Officer, stated: "Nineteen ninety-one was another excellent year for the Bank. Strong growth was achieved in earnings and other key areas, asset quality improved and the Bank's capital and reserve position continued to strengthen. Although the outlook for the economy and real estate markets remains uncertain, we remain optimistic that 1992 will be another successful year for the Bank."
 SECURITY FINANCIAL HOLDING COMPANY
 AT OR FOR THE 3 MONTHS
 ENDED DECEMBER 31, 1991 AND 1990
 1991 1990
 Net Income $760,809 $651,581
 Net Income per Share $0.67 $0.55
 Book Value per Share $25.71 $23.38
 Return on Assets 0.96pct 0.95pct
 Return on Equity 10.66pct 9.58pct
 AT OR FOR THE 12 MONTHS
 ENDED DECEMBER 31, 1991 AND 1990
 1991 1990
 Net Income $2,912,729 $2,307,630
 Net Income per Share $2.54 $1.92
 Book Value per Share $25.71 $23.38
 Return on Assets 0.98pct 0.88pct
 Return on Equity 10.41pct 10.50pct
 Security Federal Savings Bank, the wholly-owned subsidiary of Security Financial Holding Company, is the largest savings bank in Durham, N.C. With $325 million in assets, it provides a full range of financial services through nine locations in the Durham, Butner/Creedmoor and Chapel Hill areas.
 -0- 1/20/92
 /CONTACT: Larry D. Brock, President & Chief Executive Officer, or Robert F. Stockwell, Chief Financial Officer, Security Financial Holding Company, 919-687-7200/
 (SECF) CO: Security Financial Holding Company; Security Federal Savings Bank ST: North Carolina IN: FIN SU: ERN


CM -- CH002 -- 1354 01/20/92 10:31 EST
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Publication:PR Newswire
Date:Jan 20, 1992
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