Forrest City Financial announces yearly financial earnings

Business Wire, Sept 24, 1996

FORREST CITY, Ark.--(BUSINESS WIRE)--Sept. 24, 1996--For year ending June 30, 1996, net income was $253,510 compared with $147,050 for year ending June 30, 1995, representing an increase of 72.4 percent.

The majority of this change was due to an increase in loans and interest rates on loans. For fiscal year ending June 30, 1996, loans increased from $20,600,000 to $30,400,000, a 47.6 percent increase. Interest on these loans increased from $1,600,188 to $2,144,658 for a 34 percent increase. Interest on mortgage-backed securities and other investments was 14.2 percent; however, interest expense increased from $1,801,421 to $2,267,788 for a 25.9 percent increase. Other expenses increased 16.9 percent.

Earnings per share was $1.25 for fiscal year ending June 30, 1996, and $0.67 for year ending June 30, 1995, for an 86.6 percent increase.

Other than the $5,000,000 increase in one- to four-family residences during fiscal year ending June 30, 1996, the bank increased its holdings in participation and whole loans purchased by $2,500,000 and consumer loans of $1,400,000. The increase for loan loss allowance was from $243,939 to $263,248, which is 0.86 percent of total loans outstanding.

During fiscal year 1996, the corporation repurchased 21,574 shares of stock at a cost of $325,978. This reduction in stockholders equity was partially offset by current year's earnings and amortization of employee benefit plan. Stockholders' equity was $4,983,921 at June 30, 1996, compared to $5,008,404 at June 30, 1995.

Total assets of Forrest City Financial Corp. as of June 30, 1996 were $51.9 million compared to $45.0 million June 30, 1995.

The stock of Forrest City Financial Corp. is traded on the Pink Sheets published by the National Quotation Bureau Inc.

CONTACT: Forrest City Financial Corp.

John R. Stipe, 501/633-1525