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CHATTAHOOCHEE BANCORP ANNOUNCES PLANTO REDUCE OUTSTANDING WARRANTS AND OPTIONS

 ATLANTA, June 11 /PRNewswire/ -- Chattahoochee Bancorp, Inc. (NASDAQ-NMS: CHBC) announced today that its board of directors has unanimously approved a program designed to reduce significantly the number of outstanding warrants and options to purchase its common stock.
 At March 31, approximately 33 persons held outstanding warrants to purchase 639,994 shares, exercisable through their expiration date, Sept. 8, 1993, at a price of $6.02 per share. In addition, 10-year options to purchase 654,323 shares of common stock at a price of $5.50 per share were held by approximately 18 persons pursuant to the April 1991 Director Stock Option Plan.
 In reviewing its capital plan, the company determined that exercise of the warrants could result in an immediate increase in capital of approximately $4 million. On a pro forma basis at March 31, that increase would result in a capital ratio of over 12 percent and, over time, would dilute earnings per share and reduce the company's return on shareholders' equity.
 In light of these possible consequences and the long-term, dilutive effect of the Option Plan, the board of directors announced the termination of the Option Plan. Based upon advice from investment bankers as to the value of the outstanding options under the Option Plan, each outstanding option will be converted into .5733 shares of the company's common stock. Termination of the Option Plan will not affect the company's key employee stock option plan. The board also approved the exchange, on a voluntary basis, of each outstanding warrant for .1533 shares of the company's common stock. The exchange ratio for the warrants was also based upon advice from investment bankers regarding the value of the warrants. The exchange will be completed on June 24. The company anticipates reissuing Treasury Shares to satisfy its obligations.
 Rodney Knowles, chairman, president and CEO of the company, stated: "As our shareholders are aware, since late 1992 we have focused our attention on the trading market for our stock. We have our stock listed on the NASDAQ National Market System; we have significantly improved our operating earnings; and by implementing this program, we have significantly reduced the potential for future dilution from the warrants and the Option Plan."
 Chattahoochee Bancorp, Inc. is a bank holding company headquartered in Atlanta, whose shares are traded on the NASDAQ National Market System under the symbol CHBC. On March 31, it had total assets of $246,277,000 and total shareholders' equity of $21,245,000. On March 31, it had 3,989,102 shares outstanding held by approximately 520 shareholders.
 -0- 6/11/93
 /CONTACT: Mike Turnbull of Ketchum Public Relations, 404-873-1711, for Chattahoochee Bancorp/
 (CHBC)


CO: Chattahoochee Bancorp, Inc. ST: Georgia IN: FIN SU:

RA-BN -- AT001 -- 0992 06/11/93 10:12 EST
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Publication:PR Newswire
Date:Jun 11, 1993
Words:458
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