AMERICAN FEDERAL COMMUNICATIONS
P.O. Box 1268, Greenville, SC 29602 (864) 255-7000
FOR IMMEDIATE RELEASE
April 15, 1997
FOR MORE INFORMATION, CONTACT:
Mary Margaret Dragoun, Vice President
Investor Relations
phone 864/255-7253
AMERICAN FEDERAL ANNOUNCES RECORD FIRST QUARTER EARNINGS
GREENVILLE, SOUTH CAROLINA -- American Federal Bank, FSB
(Nasdaq: AMFB) today announced record first quarter earnings of
$4.8 million compared with $4.4 million in the first quarter of
1996. Earnings per share for the quarter were $.42, an 11%
increase from $.38 a year ago.
Net interest income increased $1.2 million or 9%, and the
net interest margin was 4.55% versus 4.10% in the first quarter
of 1996. Roy Abercrombie, Chairman and Chief Executive Officer,
said, "The economic strength of our market continues to provide
good opportunities for consumer and commercial loans, and the
quality of credit remains outstanding."
Total loans grew $17 million, or an annualized 8%, during
the three months ended March 31, 1997. In April, American
Federal sold the consumer finance portfolio and office operations
of its subsidiary, Finance South. The $14 million portfolio
represented approximately 1% of total assets. The proceeds will
be directed into growth of banking operations.
At March 31, nonperforming assets were $5.8 million or
.44% of total assets, a decrease of $559,000 from December 31,
1996. The allowance for loan losses grew to $11.2 million or
1.30% of total loans.
In February 1997, American Federal announced a definitive
agreement has been signed to merge with CCB Financial
Corporation, headquartered in Durham, North Carolina. Under the
agreement, American Federal shareholders will receive .445 shares
of CCB common stock in exchange for each share of American
Federal common stock.
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American Federal Bank
page 2
American Federal has $1.3 billion in assets and 40 branch
offices covering twelve counties in northwestern South Carolina.
The combined company will have $6.9 billion in assets and 201
branch offices in a market that spans 40 counties across the
Carolinas. The merger is subject to shareholder and regulatory
approval and is scheduled to be completed in the third quarter of
1997.
American Federal's common stock trades on the Nasdaq
National Market under the symbol AMFB. Market makers include
J.C. Bradford & Co., Davenport & Co. of Virginia, Herzog, Heine,
and Geduld, Inc., Interstate/Johnson Lane, Keefe, Bruyette &
Woods, Inc., The Robinson Humphrey Co., Inc., Ryan Beck & Co.,
Inc., and Wheat First Butcher & Singer.
At or for the three months ended
March 31,
1997 1996
KEY PERFORMANCE MEASURES:
Return on average assets 1.46% 1.30%
Return average equity 16.46% 15.76%
Efficiency ratio 53.56% 54.35%
Per SHARE DATA:
Book Value $10.64 $9.80
Annual dividend .48 .40
NOTE: Consolidated financial data are attached.
American Federal Bank
page 3
CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
OPERATIONS DATA
Three Months
Ended March 31,
1997 1996
(In thousands, except
per share data)
Net interest income $ 14,141 12,946
Provision for loan losses 888 722
Noninterest income 4,057 3,425
Noninterest expenses 9,677 8,949
Net income before income taxes 7,633 6,700
Income taxes 2,863 2,345
Net income $ 4,770 4,355
Earnings per share: $ .42 .38
Weighted average shares
Primary 11,241 11,448
Fully-Diluted 11,256 11,448
SUMMARY OF FINANCIAL CONDITION:
March 31, December 31,
1997 1996
(In thousands)
Total assets $ 1,306,915 1,318,400
Loans $854,851 837,855
Securities available for sale $342,829 342,341
Deposits $999,516 986,780
Stockholders' equity $117,473 115,592