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POUGHKEEPSIE SAVINGS BANK COMPLETES SALE OF MORTGAGE BANKING SUBSIDIARY

 POUGHKEEPSIE, N.Y., Dec. 30 /PRNewswire/ -- Poughkeepsie Savings Bank, FSB (NASDAQ: PKPS) announces that, on Dec. 29, 1992, it and its wholly owned subsidiary Market Street Mortgage Corporation have completed the previously announced sale of Market Street Mortgage's loan servicing and loan origination operations, its loan production offices and certain other assets to Republic Bancorp, Inc. of Ann Arbor, Mich. The closing of the sale was in accordance with definitive agreements signed on Nov. 21, 1992. The transaction was approved by the Office of Thrift Supervision and the Federal Reserve Board.
 Republic paid a purchase price to Poughkeepsie Savings Bank of $20.2 million for the assets and operations purchased by Republic, on which Poughkeepsie will report a gain of $4.1 million. Poughkeepsie Savings Bank and Market Street Mortgage retained certain net assets aggregating $12.5 million. The retained net assets consist primarily of cash, residential mortgage loans, warehouse notes payable and certain other liabilities. These net assets will be realized in the ordinary course of business and through the delivery of the residential mortgage loans into existing sales commitments. In addition, Republic also acquired the name "Market Street Mortgage Corporation" from Poughkeepsie and is expected to continue operating under that name.
 This gain to Poughkeepsie will be recorded in the fourth quarter of
1992. The gain realized is less than the $5.0 million previously estimated due to certain adjustments called for in the agreements. These adjustments were related to reduced operating levels in November of Market Street Mortgage and a lower level of mortgage loan applications than previously anticipated
 This transaction will result in an improvement to Poughkeepsie Savings Bank's core and risk-based capital ratios in December 1992. The bank estimates that these ratios will improve by approximately .50 percent and .65 percent. Over the next several months, upon the sale of the mortgage loans retained by Poughkeepsie in this transaction, the core and risk-based capital ratios are expected to improve further, resulting in increases from this transaction, including the gain recorded in December, 1992, aggregating approximately .71 percent and .90 percent, respectively.
 Poughkeepsie Savings Bank is a community banking institution whose principal market is the Mid-Hudson Valley region of New York, where it operates seven branches. The bank's deposits are insured by the Federal Deposit Insurance Corporation.
 -0- 12/30/92 R
 /CONTACT: Joseph B. Tockarshewsky, chairman of the board, president and chief executive officer of Poughkeepsie Savings Bank, 914-431-6211/
 (PKPS RBNC)


CO: Poughkeepsie Savings Bank ST: New York IN: FIN SU:

WB-LR -- NY036R -- 0749 12/30/92 17:54 EST
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Publication:PR Newswire
Date:Dec 30, 1992
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