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BANK SOUTH, CHATTAHOOCHEE BANCORP ANNOUNCE PROPOSED MERGER

 ATLANTA, Sept. 9 /PRNewswire/ -- Patrick L. Flinn, chairman and chief executive officer of Bank South Corporation (NASDAQ-NMS: BKSO), and Rodney Knowles III, chairman and chief executive officer of The Chattahoochee Bancorp, announced today agreeing to a letter of intent to merge the two companies, pending approval of a definitive agreement by the respective boards of directors and approval of Chattahoochee's shareholders and regulatory authorities.
 Bank South is a $4.6 billion-asset multi-bank holding company with 131 offices throughout Georgia and Pensacola, Fla. The Chattahoochee Bank has $250.8 million in assets and six offices in metropolitan Atlanta. Both companies are based in Atlanta.
 "Our vision for metro Atlanta is to be the bank of choice for businesses and individuals," Flinn said. "This proposed transaction is consistent with that vision because it enhances our focus on small-to- medium-sized business lending, SBA lending and private banking. Bank South will receive value from Chattahoochee's substantial business -- and from its management talent -- in these and other specialized areas."
 Chattahoochee Bank specializes in small business lending and was Georgia's largest preferred Small Business Administration (SBA) lender in 1992. The merger of the two banks will allow Bank South to accelerate its emphasis on small business lending, Flinn said.
 On the consumer side, Chattahoochee specializes in private banking. This is also an area of emphasis for Bank South, where private banking customers benefit from the bank's expertise and superior performance in trust and investment management. "We hope and expect that this will add value for Chattahoochee's customers," Flinn said.
 Said Knowles: "Bank South has a very dynamic banking presence in this marketplace and will serve our clients extremely well with its extraordinary convenience and variety of product offerings and services. We're especially happy to be merging with Atlanta's hometown bank -- and an organization that has the same philosophies that we have of responsiveness to client needs."
 Under the letter of intent, Bank South will exchange $11.50 in Bank South stock for each share of Chattahoochee Bancorp, subject to some adjustments. The transaction is expected to be completed in the first quarter of 1994.
 The Chattahoochee Bancorp was established in 1984 as a one-bank holding company. The Chattahoochee Bank has three offices in Fulton County, two in Cobb County and one in DeKalb County. A seventh office is under construction in east Cobb County at Johnson Ferry and Little Willeo roads. The main office is at 1642 Powers Ferry Road in Marietta.
 "The Chattahoochee Bank is an important player in metro Atlanta, which is Bank South's largest market and one of the fastest-growing areas in the country," Flinn said. "The presence that Chattahoochee has accomplished in its market niche will complement and enhance our own reputation, success and growth."
 Net income for the Chattahoochee Bank in 1992 was $1.76 million and $1.12 million for the first six months of 1993. In the second quarter, Chattahoochee's earnings were 65 percent higher than in the second quarter of 1992. At June 30, total deposits were $214.8 million.
 Bank South announced last April that it will acquire Barnett Bank of Atlanta and Barnett Bank of Fayette County in return for Bank South's interests in Pensacola, stock and cash. That transaction is expected to close in the fourth quarter. Barnett's major presence in Atlanta is concentrated in Cobb County.
 -0- 9/9/93
 /CONTACT: Bo Spalding of Bank South, 404-529-4238/
 (BKSO)


CO: Bank South Corporation; The Chattahoochee Bancorp ST: Georgia IN: FIN SU: TNM

DC-DS -- DC003 -- 0136 09/09/93 08:55 EDT
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Publication:PR Newswire
Date:Sep 9, 1993
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