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SOCIETY FOR SAVINGS AUCTIONS $26.5 MILLION OF COMMERCIAL REAL ESTATE LOANS

 HARTFORD, Conn., Feb. 19 /PRNewswire/ -- Society for Savings Bancorp, Inc., (NASDAQ: SOCS) ("Society" or "Bancorp") announced that its subsidiary, Society for Savings, has contracted to sell various pools of nonaccruing commercial real estate loans, including in- substance foreclosures, totalling $25.7 million in book value; accruing loans with a book value of $800,000 were also sold. The assets were sold non-recourse through an auction completed yesterday on Society's behalf by Cantor Fitzgerald Brokerage, L.P. of New York. Bids to purchase additional commercial real estate assets, representing approximately $23 million in book value, were received but not accepted in connection with the auction.
 The loan sales are scheduled to close in early March. Specific loan pool prices and purchasers' identities were not disclosed. Society noted that the pricing levels would result in approximately $11 million in first quarter charge-offs. On a going forward basis, the bank anticipates that the reduction in nonperforming assets effected by the sale will significantly enhance its reserve coverage and operating expense ratios. It was noted that no assets of Society's consumer finance subsidiary, Fidelity Acceptance Corporation, were included in today's auction and that Fidelity's reserve requirements are unaffected by the auction results.
 Society's President, Lawrence Connell, stated that "When closed, the sale of these nonaccruing loans and in-substance foreclosures, together with several unrelated assets transactions, should produce nearly a $29 million quarter-to-quarter reduction in nonperformers, subject to any new additions to NPAs in March. As a result, we expect to show an increase in the ratio of reserves-to-nonperforming assets and a significant increase in the ratio of reserves-to-nonaccrual loans at March 31st. Also, with approximately $2 million in securities gains already realized during 1993, we look forward to first quarter earnings that are substantially better than the fourth quarter 1992 results."
 On Jan. 28, 1993, Society for Savings Bancorp, Inc. reported $3.4 million in earnings for the quarter-ended Dec. 31, 1992, resulting in 1992 fiscal year earnings of $9.7 million. At year-end, Society's non-performing assets totalled $126 million.
 -0- 2/19/93
 /CONTACT: Albert E. Fiacre, Jr., executive vice president and chief financial officer of Society for Savings, 203-727-5420/
 (SOCS)


CO: Society for Savings Bancorp, Inc. ST: Connecticut IN: FIN SU:

DD -- NE015 -- 8517 02/19/93 16:25 EST
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Publication:PR Newswire
Date:Feb 19, 1993
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