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FIRST CHICAGO TO ACQUIRE LAKE SHORE BANCORP

 CHICAGO, Nov. 22 /PRNewswire/ -- First Chicago Corporation (NYSE: FNB) said today that it signed a definitive agreement with Lake Shore Bancorp, Inc. (NASDAQ-NMS: LSNB) for the purchase of all outstanding shares of Lake Shore for approximately $323 million in First Chicago common stock.
 "Lake Shore is one of Chicago's pre-eminent banking organizations serving middle-market, small business and retail customers," First Chicago Chairman Richard L. Thomas said. "It is the last major independently owned institution catering specifically to the affluent retail market surrounding its Michigan Avenue locations. And with a return on assets ratio of 1.33 percent, Lake Shore boasts an exemplary performance record and an extremely strong balance sheet in both credit quality and capital levels.
 "We believe the acquisition of Lake Shore will complement the markets presently being served by our subsidiaries -- American National Bank and The First National Bank of Chicago -- further enhancing the leading market positions that First Chicago now enjoys," Thomas added.
 The agreement provides that each share or share equivalent of Lake Shore common will be exchanged for First Chicago common stock valued at $31.08. The exchange ratio will be determined based on the average closing price of First Chicago common stock during a 20-day period ending just prior to the closing of the transaction, with a minimum price of $37 and a maximum price of $53 per share. First Chicago expects to account for the transaction as a pooling-of-interests.
 Lake Shore also has granted First Chicago an option to purchase up to 19.9 percent of the outstanding shares of Lake Shore common stock upon the occurrence of certain acquisition events with respect to Lake Shore.
 The transaction is subject to approval of Lake Shore's stockholders and various bank regulatory authorities, and is expected to close in the second quarter of 1994.
 Lake Shore, with $1.2 billion in assets and eight offices in the Chicago metropolitan area, is the bank holding company for Lake Shore National Bank, Chicago, and Bank of Hinsdale, Hinsdale. It has three offices in Chicago (one in Lincoln Park and two on Michigan Avenue) two offices in Hinsdale, and one each in Woodridge, Clarendon Hills, and Glen Ellyn.
 First Chicago Corporation, with $53.2 billion in assets, is the nation's 10th largest bank holding company, providing a complete line of financial products and services to corporations, institutions, medium- sized companies, small businesses and consumers. It has 100 locations throughout the Chicago metropolitan area.
 -0- 11/22/93
 /CONTACT: Lisabeth Weiner of First Chicago, 312-732-4455/
 (FNB LSNB)


CO: First Chicago Corporation; Lake Shore Bancorp, Inc. ST: Illinois IN: FIN SU: TNM

SH -- NY017 -- 6689 11/22/93 09:02 EST
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Publication:PR Newswire
Date:Nov 22, 1993
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