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REPUBLIC BANCORP TO ACQUIRE HORIZON FINANCIAL SERVICES

REPUBLIC BANCORP TO ACQUIRE HORIZON FINANCIAL SERVICES
 ANN ARBOR, Mich., Sept. 30 /PRNewswire/ -- Republic Bancorp Inc. (NASDAQ-NMS: RBNC), Ann Arbor, and Horizon Financial Services, Inc. (NASDAQ-NMS: HFIN), Beachwood (Cleveland), Ohio, jointly announced today the signing of a definitive agreement whereby Republic, a $547 million bank holding company, will acquire Horizon, a $379 million savings and loan holding company, through a merger of Horizon into Republic.
 Under the terms of the agreement, Horizon shareholders will receive for each share of Horizon common stock .715 share of Republic's common stock plus .56 share of a new issue of convertible preferred stock of Republic.
 The new preferred stock, which will have a 7 percent cumulative dividend rate and a stated value of $25.00 per share, will be convertible into Republic's common stock at a rate equal to 120 percent of the average price of Republic's common stock for a specified period prior to the closing of the transaction. The agreement provides that in no event will the conversion price for the preferred stock be less than $10 per share nor more than $11.82 per share. The common shares exchanged and conversion price have been adjusted for Republic's recently declared 10 percent common stock dividend.
 In making the announcement, Jerry D. Campbell, chairman, president and chief executive officer of Republic, stated, "We are pleased that, upon the realization of this merger, Republic's original goal of establishing a $1 billion organization will be achieved. Importantly, the sound financial strength and excellent results of the combined, multi-state operation will not require additional capital in connection with the merger."
 "We believe," Campbell continued, "the greater Cleveland market provides an excellent opportunity for continued growth and expansion for Republic, particularly in our origination and servicing of single-family residential mortgages."
 Dennis J. Ibold, chairman of the board of Horizon, said, "We are bringing together two well-capitalized institutions which, together, represent an attractive franchise with a strong presence in the stable Great Lakes region."
 The transaction is subject to regulatory approval and the approval of the shareholders of both Horizon and Republic, pursuant to appropriate proxy materials and registration of the Republic securities under applicable law and is anticipated to be completed in the second quarter of 1993. The definitive agreement is also subject to the satisfactory completion of each party's due diligence. In connection with the execution of the definitive agreement, Horizon has issued warrants to Republic entitling Republic to purchase up to 19.9 percent of the outstanding common stock of Horizon under certain circumstances.
 Horizon is a $379 million registered holding company for Horizon Savings Bank, a state-chartered savings bank founded in 1920. Horizon serves the Greater Cleveland area through eight suburban offices.
 Republic currently owns seven subsidiaries with 39 offices in six states and has become one of the leading sources of single-family residential mortgages in Michigan.
 REPUBLIC BANCORP INC.
 Acquisition of Horizon Financial Services, Inc.
 Fact Sheet
 June 30, 1992
 (Dollars in thousands)
 Republic Horizon Pro Forma
 Total assets $546,703 $378,542 $933,156(a)
 Loans 288,510 233,313 521,823
 Single family mortgage
 origination(b) 1,185,000 95,000 1,280,000
 Total deposits 471,230 310,419 781,649
 Total shareholders' equity 52,061 27,170 87,142
 Equity to assets ratio
 (percent) 9.52 7.18 9.34
 Risk-based capital ratio
 (percent) 17.17 15.48 16.48
 Primary common shares
 outstanding(c) 8,364,800 1,606,138 9,571,198
 Offices 39 8 47
 Employees (FTE) 438 91 529
 (a) -- Current pro forma assets are approximately $1 billion.
 (b) -- Through September 1992.
 (c) -- As of Sept. 30, 1992, including estimate for Republic's 10 percent common stock dividend.
 -0- 09/30/92
 CONTACT: Dana M. Cluckey of Republic Bancorp Inc., 517-725-7337
 (RBNC HFIN) CO: REPUBLIC BANCORP INC.; HORIZON FINANCIAL SERVICES,
 INC.


IN: FIN SU: TNM ST: MI,OH -- DE015 -- X527 09/30/92
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Date:Sep 30, 1992
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