Exhibit 99
SECURITY FIRST CORP.
Mary H. Crotty, Vice President/Chief Financial Officer
(440) 449-3700 Ext. 3273
October 21, 1997
SECURITY FIRST CORP. ANNOUNCES 16% INCREASE IN
SECOND QUARTER EARNINGS
Mayfield Heights, October 21, 1997 -- Security First Corp.
(NASDAQ/NMS:SFSL), today reported net income for the second quarter ended
September 30, 1997, of $2,305,000, a 16% increase over net income of
$1,980,000 in the comparable quarter last year. Net income for the six months
ended September 30, 1997 was $4,495,000, or a 15% increase over the $3,914,000
earned for the comparable six month period last year.
Earnings and per-share comparisons for the second quarter and six months
ended September 30, 1996, exclude the special charge of $1,694,000 (after tax)
for the Savings Association Insurance Fund ("SAIF") assessment.
Earnings per share of $.27 and $.53 (fully diluted) for the September
1997 quarter and six months, respectively, represented a 13% increase over
per-share earnings in the prior year periods.
Earnings per share for the second quarter and six months ended September
30, 1996 are restated to reflect the three-for-two stock
split in the form of a 50% stock dividend, which was distributed to
shareholders on July 31, 1997.
Security First Corp. Chairman Charles F. Valentine said, "Our net income
increase of 16% for the current quarter was due to continued strong loan
demand and containment of operating expenses. Total loans outstanding at
September 30, 1997, were $603.3 million, or 14% higher than the $531.3 million
in total loans at September 30, 1996. Total assets increased a similar 14%
to $680.8 million from $599.8 million in the prior year."
Valentine continued, "We are also pleased to announce that the
litigation involving U.S. Die Casting and Development Company ("U.S. Die") has
been settled by the payment of plaintiff's legal costs, and all the claims
against Security First Corp. have been dismissed with prejudice. Security
First's insurer has funded the amount paid to U.S. Die as part of the
settlement."
For the quarter ended September 30, 1997, Security First's annualized
returns on average assets ("ROA") and average equity ("ROE") were 1.39% and
14.85%, respectively, compared with 1.35% and 14.10% for the same period last
year.
Non-performing loans of $2.2 million, or .37% of total loans at September
30, 1997, increased somewhat from the $1.3 million, or .24% of total loans in
the prior year. At September 30, 1997, ratios of allowances for loan losses
to non-performing loans and total loans were 227% and .84%, respectively,
while the corresponding ratios were 379% and .89% a year ago."
Security First Corp. is the holding company for Security Federal Savings
& Loan Association of Cleveland and First Federal Savings Bank of Kent. The
Company operates 14 branch offices throughout six counties in Northeast Ohio.
PAGE
SECURITY FIRST CORP.
(NASDAQ/NMS:SFSL)
OPERATING HIGHLIGHTS (UNAUDITED)
(Dollars in thousands, except per share data)
===========================================================
Three Months Ended Six Months Ended
September 30, September 30
---------------------- --------------------
1997 1996 1997 1996
---------------------- --------------------
Interest income $13,826 $12,106 $27,242 $23,720
Interest expense 7,387 6,265 14,521 12,088
------- ------- ------- ------
Net interest income 6,439 5,841 12,721 11,632
Provision for loan losses 84 84 142 180
------- ------ ------- ------
Net interest income after
provision for loan losses 6,355 5,757 12,579 11,452
Other income 465 392 907 825
Gain (loss) on sale of loans (51) 49 (51) 49
Amortization of goodwill (26) (27) (52) (54)
SAIF assessment --- (2,567) --- (2,567)
Other operating expenses (3,204) (3,127) (6,490) (6,259)
------------------------ --------------------
Income before taxes 3,539 477 6,893 3,446
Federal income taxes 1,234 191 2,398 1,226
------------------------ -------------------
Net income $2,305 $286 $4,495 $2,220
======================== ===================
Earnings per share:
Primary - on net income $0.30 $0.04 (a) $0.58 $0.29 (a)
Primary - excluding
SAIF assessment $0.30 $0.26 (a) $0.58 $0.52 (a)
Fully diluted - on net income $0.27 $0.04 (a) $0.53 $0.28 (a)
Fully diluted - excluding
SAIF assessment $0.27 $0.24 (a) $0.53 $0.47 (a)
Shares used in the computation
of earnings per share:
Primary 7,763,583 7,551,903 (a) 7,726,116 7,537,638 (a)
Fully diluted 8,781,240 8,680,935 (a) 8,790,872 8,680,935 (a)
Cash dividends paid per share $0.08 $0.07 (a) $0.16 $0.14 (a)
SECURITY FIRST CORP.
(NASDAQ/NMS:SFSL)
OPERATING HIGHLIGHTS (UNAUDITED) - continued
(Dollars in thousands, except per share data)
===========================================================
Three Months Ended Six Months Ended
September 30, September 30
---------------------- --------------------
1997 1996 1997 1996
---------------------- --------------------
Book value per share $8.31 $7.46 (a) $8.31 $7.46 (a)
Tangible book value per share 8.18 7.31 (a) 8.18 7.31 (a)
Return on average assets - (annualized) 1.39% 0.19% 1.37% 0.77%
Return on average assets - (annualized)
excluding SAIF assessment 1.39% 1.35% 1.37% 1.37%
Return on average equity - (annualized) 14.85% 2.04% 14.69% 7.99%
Return on average equity - (annualized)
excluding SAIF assessment 14.85% 14.10% 14.69% 14.09%
Yield on average interest-
earning assets 8.66% 8.59% 8.62% 8.62%
Cost of average interest-
bearing liabilities 4.98% 4.79% 4.95% 4.73%
Interest rate spread 3.68% 3.80% 3.67% 3.89%
Net yield on average interest-
earning assets 4.03% 4.14% 4.03% 4.23%
Efficiency ratio (b) 46.41% 50.17% 47.62% 50.24%
Average balance sheet:
Assets $664,461 $587,059 $657,116 $573,345
Earning assets 638,884 563,807 631,777 550,110
Loans, net 588,014 515,203 582,479 501,779
Deposits 477,408 414,996 465,588 412,745
Shareholders' equity 62,079 56,157 61,200 55,541
(a) Adjusted to reflect the three-for-two stock split distributed
on July 31, 1997.
(b) Operating expenses (excluding amortization of goodwill and SAIF assessment)
divided by the sum of net interest income and other income, not including
non-recurring items or gains and losses on loans or securities.