Forrest City Financial announces first quarter earnings

Business Wire, Nov 6, 1996

FORREST CITY, Ark.--(BUSINESS WIRE)--Nov. 6, 1996--Forrest City Financial Corp., the parent company of Forrest City Bank, FSB, announced a net loss of $82,881 or $0.41 per share for the company's first quarter ended Sept. 30, 1996.

The loss was primarily due to the one-time special assessment to recapitalize the Savings Association Insurance Fund, ("SAIF") of approximately $168,000 and an increase in bad debt reserves of $44,418. Had it not been for the special SAIF assessment, the company would have had net income of $85,119 or $0.42 per share for the quarter ended Sept. 30, 1996.

Net interest income after provision for loan losses for the quarter ended Sept. 30, 1996 was $353,353 as compared to $290,441 for the same period 1995, an increase of $62,912 or 22%. The increase was primarily the result of increased commercial real estate and consumer lending activity.

Noninterest income for the quarter ended Sept. 30, 1996 totaled $60,865 as compared to $23,404 earned during the same period in 1995. This increase of $37,461 was primarily due to retail banking activity.

Noninterest expense increased $230,488 or 95% from $241,611 for the quarter ended Sept. 30, 1995 to $472,099 for the quarter ended Sept. 30, 1996. This increase was primarily attributed to a one-time special assessment to recapitalize the SAIF. As a result of the SAIF recapitalization, the FDIC has proposed to amend its regulation concerning the insurance premiums payable by SAIF-insured institutions. Effective Oct. 1, 1996 through Dec. 31, 1996, the FDIC has proposed that the SAIF insurance premium for all SAIF-insured institutions that are required to pay the Financing Corporation (FICO) obligation, such as the bank, be reduced to a range of 18 to 27 basis points from 23 to 31 basis points per $100 of domestic deposits. The bank currently qualifies for the minimum SAIF insurance premium of 23 basis points. The FDIC has also proposed to further reduce the SAIF insurance premium to a range of 0 to 27 basis points per $100 of domestic deposits effective Jan. 1, 1997.

Total assets of the company were $54.2 million at Sept. 30, 1996 as compared to $51.9 million at the same period in 1995. The $2.3 million increase was primarily attributable to increases in home, commercial real estate and consumer loans.

Stockholders' equity at Sept. 30, 1996 was $4.9 million, which represents a book value per share of $24.36. At Sept. 30, 1996, the bank exceeded all regulatory requirements.

The company is headquartered at 715 North Washington Street, Forrest City, Ark. and its common stock is traded on the "pink sheets" published by the National Quotation Bureau, Inc. under the symbol "FOCF."

CONTACT: Forrest City Financial Corp., Forrest City

John R. Stipe, 501/633-1525