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VIRGINIA BEACH FEDERAL FINANCIAL CORPORATION ANNOUNCES FIRST QUARTER RESULTS

 VIRGINIA BEACH, Va., April 18 /PRNewswire/ -- Virginia Beach Federal Financial Corporation (NASDAQ/NMS: VABF) today reported net income of $26,000 ($0.01 per share) for the first quarter of 1994, compared with $835,000 ($0.17 per share) for the first quarter of 1993. Earnings for the 1993 period included a $700,000 ($0.14 per share) tax benefit related to the adoption of Financial Accounting Standards Board Statement No. 109, "Accounting for Income Taxes."
 Net interest income during the first quarter of 1994 was $2,773,000 compared with $2,725,000 during the year earlier quarter. While on a year-to-year basis net interest income increased slightly, it continues to be depressed by very high deposit costs. As the Corporation disclosed in its 1993 Annual Report, the deposit base includes nearly $73 million in time deposits with interest rates in excess of 10 percent that mature during 1994, mainly during the third and fourth quarters.
 Foreclosed real estate declined by $2.8 million during the quarter and by 60 percent since March 31, 1993, reflecting the results of intense efforts to reduce the level of non-performing assets (NPAs). Total NPAs declined by 53 percent to $14,651,000 or 2.2 percent of assets at quarter end compared with $31,302,000 or 4.9 percent of assets a year earlier.
 Loan originations at the Corporation's mortgage banking operation, Beach Fed Mortgage Corp., were $94,928,000 during the quarter compared with $63,813,000 during the first quarter of 1993.
 "The results for the first quarter of 1994 represent the major challenges facing the Corporation at the present time: gaining control of our deposit costs, reducing non-performing assets, and continuing the growth of the mortgage banking business," noted Dennis R. Stewart, Executive Vice President and Chief Financial Officer.
 Virginia Beach Federal Financial Corporation is a unitary savings and loan holding company whose sole subsidiary is Virginia Beach Federal Savings Bank. The Savings Bank, headquartered in Virginia Beach, Virginia, is a 58-year-old institution providing full financial services to customers in the Hampton Roads area of Virginia. Beach Fed Mortgage Corp., a wholly owned subsidiary of the Savings Bank, originates residential mortgage loans through its offices in Virginia Beach, Chesapeake, Newport News, Williamsburg, Richmond and Fairfax.
 VIRGINIA BEACH FEDERAL FINANCIAL CORPORATION
 SELECTED FINANCIAL INFORMATION
 (Dollars in thousands, except per share data)
 Quarter ended
 3/31/94 3/31/93
 Balance Sheet
 Loans held for sale $22,105 $32,219
 Loans receivable 393,822 339,302
 Foreclosed real estate 6,991 17,533
 Total assets 676,740 637,872
 Deposits 486,591 450,964
 Stockholders' equity 40,277 41,784
 Book value per share 8.23 8.54
 Stock price per share 7.13 5.63
 Core capital ratio 5.65% 6.05%
 Risk based capital ratio 12.94% 12.88%
 Quarter ended
 3/31/94 3/31/93
 Income Statement
 Interst income $11,302 $11,470
 Interst expense 8,529 8,745
 Net interest income 2,773 2,725
 Loan loss provision 75 200
 Other income 2,469 2,749
 Foreclosed real estate provision -- 700
 Other expense 5,125 4,373
 Cumulative effect of change in
 accounting for income taxes -- 700
 Net income 26 835
 Earnings per share:
 Before accounting change $0.01 $0.03
 After accounting change $0.01 $0.17
 -0- 4/18/94
 /CONTACT: Dennis R. Stewart of Virginia Beach Federal, 804-428-9331/
 (VABF)


CO: Virginia Beach Federal Financial Corporation ST: Virginia IN: FIN SU: ERN

KD-PB -- DC023 -- 7669 04/18/94 12:16 EDT
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Publication:PR Newswire
Date:Apr 18, 1994
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