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COLUMBIA FIRST BANK ANNOUNCES SUCCESSFUL CONVERSION OF DEBT INTO COMMON STOCK

 ARLINGTON, Va., July 1 /PRNewswire/ -- Columbia First Bank, a Federal Savings Bank (NASDAQ-NMS: CFFS), reported a successful completion of the conversion of debt into common stock. Tangible and core capital has been significantly increased through the recently completed conversion. The bank exceeds all current and fully phased-in capital requirements without the effect of the additional capital.
 A call for the redemption of the bank's Convertible Subordinated Debentures due July 2011 was issued on May 13, 1993. Debenture holders had the option of converting into common stock on or before the close of business June 15, 1993. The debentures were convertible into Columbia First Common Stock at a ratio equal to $21.50 per share. The debentures were originally issued in July 1986 in the amount of $27.8 million and carried a 7.50 percent fixed interest rate. Beginning in fiscal 1990, the bank began repurchasing the debentures on the open market in privately negotiated transactions, and had repurchased a total of $19.0 million of the debentures through May 13, 1993. In addition, approximately $.3 million of the debentures had previously been converted into common stock. At the time of the bank's call for the redemption, there was outstanding $8,497,000 of debentures. A total of $8,348,000 of the debt was converted to equity, which resulted in an additional 388,218 shares of common stock outstanding. The remaining $149,000 of the debentures were redeemed for cash.
 President and CEO Thomas J. Schaefer said: "We are pleased to have significantly added to our already strong capital base, and we anticipate using this additional capital to assist us in our continued growth. We are especially pleased to be in a position to report a core capital ratio in excess of 5.00 percent when we release earnings for the June 30 quarterly reporting date."
 Columbia First has total assets of $2.3 billion and operates 28 branches and four loan origination offices throughout Virginia, Maryland and the District of Columbia.
 -0- 7/1/93
 /CONTACT: Robert J. Creighton, senior vice president-chief financial officer, Columbia First Bank, 703-247-5090/


CO: Columbia First Bank ST: Virginia IN: FIN SU:

TW -- DC009 -- 7588 07/01/93 09:43 EDT
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Date:Jul 1, 1993
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