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SECURITY INVESTMENTS GROUP REPORTS FIRST QUARTER RESULTS

 SECURITY INVESTMENTS GROUP REPORTS FIRST QUARTER RESULTS
 VINELAND, N.J., May 15 /PRNewswire/ -- Security Investments Group, Inc. (NASDAQ: SSLN), the parent company of Security Savings Bank, SLA, ended the first quarter of 1992 with a consolidated net loss of $2,640,000 or $.56 per share.
 This compares to a reported net loss of $37,000 or $.01 per share for the same period in 1991.
 The net income for the quauter was reduced by a $3.5 million adjustment to the carrying value of certain capitalized excess servicing fee assets. This resulted from a change in the method of valuing these assets at the direction of the Office of Thrift Supervision (OTS). On loans sold with servicing retained, the company has recorded the present value of the differential between the coupon rate and the yield to purchasers, net of a normal servicing fee, as an excess service fee asset. The value of the asset is calculated using certain prepayment, default and interest rate assumptions. In accordance with generally accepted accounting principles, the company has traditionally amortized excess service fees using a method which incorporates the use of anticipated prepayment rates. When actual prepayment rates have been greater than the prepayment rates assumed, the company has reduced the carrying value of the excess service fee asset to current present value. The OTS, however, has directed the company to use projected prepayment estimates developed by various investment banking firms which were greater than the assumed and actual prepayment rates and have required a revaluation of these assets.
 As a result of the write-down, the company's principal subsidiary, Security Savings Bank, SLA, failed to meet the capital targets set forth in its Capital Plan for March 31, 1992, and is in material violation of its Capital Directive. The company's tangible, core and risk-based capital ratios at March 31, 1992, were .64 percent, 1.82 percent and 4.11 percent, respectively, as compared to the requirements of 1.50 percent, 3.00 percent and 7.20 percent. The Capital Directive states that a material failure to comply with the Capital Plan may result in a termination of the OTS approval of the Capital Plan, or the initiation of supervisory and/or enforcement action against the bank, including the appointment of a conservator or receiver. Management said it has advised the OTS of this violation and is presently preparing a revision to its capital plan to incorporate this valuation adjustment.
 Ronald A. Seagraves, president and chief executive officer, explained, "The adjustment for excess servicing fee assets was a result of the economy which has produced the lowest mortgage interest rates in the past 17 years, and the market's anticipation of an acceleration of prepayments resulting from home mortgage refinancing which substantially exceeds Security's prepayments to date."
 He further commented, "The board of directors is actively seeking various alternatives to raise significant outside capital which if successful could result in a restructuring of the company."
 During the quarter, approximately $13 million of non-performing loans were restructured and converted to performing status. At March 31, 1992, loans past due 90 days or more and non-performing assets declined to $83.5 million or 6.60 percent of total assets, compared to $91.2 million or 6.99 percent reported at year-end.
 Security Savings Bank, SLA, a subsidiary of Security Investments Group, Inc., is a state-chartered financial institution headquartered in Vineland. Security operates 30 branches throughout southern New Jersey and provides businesses and consumers with a wide variety of financial products and services.
 SECURITY INVESTMENTS GROUP, INC. AND SUBSIDIARY
 (Unaudited; in thousands except share data)
 Three months ended March 31 1992 1991
 Operations:
 Total interest income $22,917 $29,321
 Total interest expense 16,672 23,248
 Net interest income 6,245 6,073
 Provision for loan losses 548 691
 Other income 1,953 4,462
 Total non-interest expense 10,209 9,846
 Loss before taxes (2,559) (2)
 Income taxes 81 35
 Net loss (2,640) (37)
 Loss per share:
 Net loss $(.56) $(.01)
 Average number of common
 shares outstanding 4,685,900 4,685,900
 Financial condition March 31, 1992 Dec. 31, 1991
 (unaudited)
 Total assets $1,265,446 $1,304,311
 Loans receivable, net 774,390 783,327
 Mortgage-backed securities 225,820 185,883
 Investment securities 41,027 29,156
 Interest receivable 9,227 9,828
 Real estate for sale or under development 17,121 18,893
 Excess cost over value of net
 tangible assets acquired 53,182 54,129
 Deposits 890,838 918,500
 Advances and other borrowings 287,786 299,103
 Total shareholders' equity 62,967 65,607
 /delval/
 -0- 5/15/92
 /CONTACT: Ernest T. Szeker Jr., executive vp/cfo, 609-691-2400, or Margarita Aponte (financial) 609-691-3681, both of Security Investments Group/
 (SSLN) CO: Security Investments Group, Inc. ST: New Jersey IN: FIN SU: ERN


JS-KA -- PH039 -- 0944 05/15/92 16:44 EDT
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Date:May 15, 1992
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