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LOCKWOOD NATIONAL BANK, A SUBSIDIARY OF MICHIGAN NATIONAL CORPORATION, ANNOUNCES BANK ACQUISITIONS IN THE HOUSTON AREA

LOCKWOOD NATIONAL BANK, A SUBSIDIARY OF MICHIGAN NATIONAL CORPORATION,
 ANNOUNCES BANK ACQUISITIONS IN THE HOUSTON AREA
 FARMINGTON HILLS, Mich., Sept. 18 /PRNewswire/ -- Lockwood National Bank announced today that in a move to expand its presence in the metropolitan Houston area, it has entered into a definitive agreement to acquire all of the outstanding stock of Peoples National Bank-Pasadena, Peoples Bank-Houston and Community Bank-Friendswood in a cash transaction. Affiliation of the three banks with Lockwood is expected to be completed during the first quarter of 1993.
 At June 30, 1992, the three institutions had total assets aggregating $117 million, deposits of $104 million, net loans approximating $77 million and combined shareholders' equity of $11.6 million. Combined earnings at the three banks totaled $1.2 million through the six months ended June 30, 1992, representing an annualized ROA and ROE of 2.05 percent and 20.69 percent, respectively. The purchase price has been set at a $4.1 million premium to the combined pre-closing equity of the three institutions, which based on June 30, 1992, financials would represent a cash transaction of approximately $15.7 million. It is anticipated that at consummation of the three transactions, Lockwood's cash purchase price will approximate $17 million, based on a projected combined equity base of $12.9 million for the three banks.
 Lockwood National, a wholly owned subsidiary of Michigan National Corporation (NASDAQ-NMS: MNCO), has long been rated as one of the strongest banks in the Gulf Coast area. Lockwood has two offices in Houston and one in Galena Park. The banks being acquired have two locations in Pasadena and one in Deer Park, Clear Lake, Gulf Freeway (South Belt Area) and Friendswood, Texas.
 Jack Thetford and Paul Jury, chairman and president, respectively, of Lockwood, issued a statement saying, "This affiliation is part of a careful expansion strategy in the Houston metropolitan area. All three banks are quality institutions with sound balance sheets, excellent earnings records and professional staffs. The performance of these institutions has been directed by the major shareholder, John H. Moon Sr., a long-time banker in the greater Houston market. This acquisition is a matter of strength joining strength to provide increased and improved service to the customers at a combined total of nine offices in a territory that is very familiar to our management team."
 Robert J. Mylod, chief executive officer of Michigan National Corporation, said, "Lockwood ended the second quarter on June 30, 1992, with assets of approximately $234 million. This acquisition will increase its size to more than $350 million. When coupled with Michigan National's other Texas affiliate, First State Bank and Trust in Port Lavaca, Texas-based assets will approximate $600 million on a pro forma basis. The addition of these three fine banks and their management teams will add significantly to our earnings and return on investment of our Texas banks."
 Michigan National Corp. is a bank holding company with total assets of $10.6 billion. Its principal subsidiary, Michigan National Bank, is the 53rd largest bank in the country. Michigan National Bank has approximately 190 branches throughout Michigan.
 Michigan National Corporation also operates Beverly Hills Business Bank, a $1.1 billion savings and loan association with six offices in southern California; Independence One Mortgage Corporation, which originates residential mortgage loans through 23 offices in nine states and services $14.5 billion portfolio that ranks 23rd largest nationally; Independence One Capital Management Corp., which provides investment advisory services for approximately $5.0 billion in trust and other managed assets.
 -0- 9/18/92
 /CONTACT: Ariadne Magoulias of Michigan National, 313-473-3428; or Paul W. Jury, president, Lockwood National Bank, 713-674-7661/
 (MNCO) CO: Michigan National Corporation; Lockwood National Bank ST: Michigan, Texas IN: FIN SU: TNM


SB -- DE021 -- 1265 09/18/92 16:18 EDT
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Publication:PR Newswire
Date:Sep 18, 1992
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