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EDGEMARK FINANCIAL CORP. REPORTS FOURTH QUARTER AND 1992 RESULTS

 CHICAGO, Jan. 26 /PRNewswire/ -- EdgeMark Financial Corp. today reported a $4.3 million or $3.06 per Common Share fourth quarter loss after taking restructuring charges and charges for problem loans. The action also resulted in a loss of $3.5 million or $2.41 per Common Share for all of 1992.
 In the 1991 fourth quarter the company earned $1.1 million or $.75 per Common Share. For all of 1991, EdgeMark Financial earned $2.2 million or $1.51 per Common Share.
 Charles A. Bruning, president and chief executive officer, said fourth quarter results were adversely impacted by a one-time restructuring charge of $2,389,707 and a $2,350,000 provision for loan losses, both of which were primarily attributed to its Merchandise National Bank of Chicago unit.
 Bruning said that despite the charges, EdgeMark Financial and its five banking units remain well capitalized and exceed regulatory guidelines for Tier I capital, total risk-based capital and capital leverage ratios.
 "Four of our five banks had very good years, but the stagnant economy, especially in the real estate sector, negatively impacted performance at Merchandise National Bank. Looking forward, we expect the worst is behind us and we look for our restructuring actions to provide future annual cost savings of approximately $1 million," Bruning said.
 The restructuring charges include:
 -- $1,211,575 of charges associated with the closing of Merchandise National Bank's NBC Tower facility. The facility will be consolidated into Merchandise National's main banking facility in the Merchandise Mart. Two of the bank's CASH STATION(TM) automated teller machines will remain at the NBC Tower.
 -- $1,178,132 of expenses associated with a fourth floor lease buyout and writedowns for backroom consolidation at the holding company's Merchandise Mart headquarters.
 -- Other miscellaneous charges of $572,355, the majority of which relate to remodeling expenses at Merchandise National's main banking facility.
 The $2,350,000 addition to the fourth quarter allowance for loan losses is a result of certain charge-offs, primarily associated with Merchandise National Bank.
 Net interest income for the fourth quarter rose 11 percent, while other income, net of securities transactions and loan sales, rose 15 percent, due in part to higher fees generated by the mortgage brokerage operation of one of the corporation's banks.
 For 1992, the provision for loan losses was $5,485,593, compared to $2,661,681 in 1991. The majority of the increase relates to Merchandise National Bank. For the years ended Dec. 31, 1991 and 1992, Merchandise had loan loss provisions of $1,465,000 and $3,838,333, respectively.
 Net charge-offs for 1992 totalled $4,909,070 compared to $1,385,653 for 1991. The majority of the charge-offs for 1992 also related to Merchandise National. For 1992, Merchandise had $2,899,416 in net charge-offs compared to $862,890 for all of 1991.
 At Dec. 31, 1992 the ratio of non-performing loans to net loans was 1.25 percent compared to 1.37 percent at Dec. 31, 1991 and 2.18 percent at Sept. 30, 1992. The allowance for loan losses at Dec. 31, 1992 was $5,022,616, or 1.48 percent of net loans compared with $4,446,093, or 1.35 percent of net loans at Dec. 31, 1991.
 The common stock of EdgeMark Financial Corp. is publicly listed under the symbol EDGE and traded through The Chicago Corporation and Kemper Securities, Inc.
 EdgeMark Financial Corp. is a $516-million multi-bank holding company that owns and operates Merchandise National Bank of Chicago; Edgewood Bank in Countryside and Woodridge; EdgeMark Bank Lombard; First National Bank of Lockport and EdgeMark Bank Rosemont. EdgeMark Mortgage, the corporation's mortgage brokerate operation, is a division of EdgeMark Bank Lombard.
 Fourth Quarter and 1992 Financial Highlights follow.
 EDGEMARK FINANCIAL CORP.
 FOURTH QUARTER 1992 AND TWELVE MONTHS FINANCIAL HIGHLIGHTS
 QUARTERLY COMPARISON Percent
 4Q '92 4Q '91 Change
 Net income (4,255,906) 1,300,870 (427.16)
 Net income applicable to common (4,452,155) 1,107,667 (501.94)
 Per common share (3.06) .75 (508.54)
 Net interest income 5,742,170 5,163,427 11.21
 Return on average assets (3.19) .98 N/A
 Return on avg. common equity (39.99) 12.47 N/A
 Noninterest income 1,650,338 3,712,169 (55.54)
 Noninterest expense 9,264,808 5,776,058 60.40
 Loan loss provision 2,819,010 1,511,256 86.53
 Net charge-offs 2,528,045 558,362 352.76
 Weighted average shares and
 share equivalents 1,455,092 1,458,988 N/A
 YEAR-TO-DATE COMPARISON Percent
 1992 1991 Change
 Net income (2,724,336) 2,998,256 (190.86)
 Net income applicable to common (3,504,646) 2,209,189 (258.64)
 Per common share (2.41) 1.51 (258.96)
 Net interest income 22,235,069 20,175,380 10.21
 Return on average assets (.52) .59 N/A
 Return on avg. common equity (6.40) 7.42 N/A
 Noninterest income 6,924,903 6,946,886 (.32)
 Noninterest expense 26,398,715 20,798,420 26.93
 Loan loss provision 5,485,593 2,661,681 106.10
 Net charge-offs 4,909,070 1,385,653 254.28
 Weighted average shares and
 share equivalents 1,454,641 1,459,440 N/A
 BALANCE SHEET
 12-31-92 12-31-91
 Assets 516,071,230 $516,943,125
 Deposits 459,736,413 456,988,585
 Net loans 333,312,618 324,760,366
 Shareholders' equity 37,862,355 41,628,926
 Allowance for loan losses 5,022,616 4,446,093
 Allowance/loans ratio 1.48 1.35
 Non-performing loans $ 4,231,476 $ 4,518,028
 as a percentage of loans 1.25 1.37
 Leverage ratio 4.09 4.52
 Book value per Common Share 20.70 $ 23.28
 -0- 1/26/93
 /CONTACT: Charles A. Bruning of EdgeMark Financial Corp., 312-836-8001; George M. Morvis of Financial Shares Corp., 312-943-8116/


CO: EdgeMark Financial Corp. ST: Illinois IN: FIN SU: ERN

SH -- NY071 -- 9116 01/26/93 13:30 EST
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