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ROCHESTER COMMUNITY TO PURSUE STRATEGY TO REDUCE NPAs AND RAISE CAPITAL

 ROCHESTER, N.Y., June 2 /PRNewswire/ -- Rochester Community Savings Bank (NASDAQ: RCSB), announced today that it would pursue its previously declared strategy of accelerating the reduction of nonperforming assets (NPAs) and raising additional capital through a proposed offering of convertible preferred stock. On May 5, RCSB stated that it had received an unsolicited indication of interest in the possible acquisition of the company and was evaluating whether to pursue an affiliation, its previously announced strategy or a combination of both alternatives. The Bank said that after careful evaluation of these alternatives in consultation with its financial advisors, it had concluded that the best strategy for maximizing long-term shareholder value was to pursue an independent path.
 Leonard S. Simon, RCSB's chairman and chief executive officer, said, "In any sale or merger of RCSB, it is the Board's fiduciary responsibility to act in the best interests of its shareholders, considering not only present circumstances but future potential. At this juncture, we believe firmly that the Bank's level of nonperforming assets masks RCSB's true value. Consequently, the Bank will move rapidly forward with its original plans focusing on disposition of nonperforming assets during the year and the securing of additional capital to expand its highly successful consumer financial services groups."
 Simon also said that RCSB's previously announced strategy, which includes a shift from holding and managing problem commercial real estate to liquidating nonperforming assets, will require a significant addition to reserves, the amount of which will be determined during the third quarter.
 In making the announcement, the Bank stated that because no indication of interest resulted in a material event requiring disclosure, it would have no further comment.
 Rochester Community Savings Bank is a publicly owned, state- chartered savings bank headquartered in Rochester, N.Y. The Bank operates 28 retail banking offices in western New York, and through its wholly owned subsidiary, Shadow Lawn Savings Bank, 16 retail banking offices in central New Jersey. RCSB also owns subsidiaries engaged in mortgage banking, automobile financing, insurance, and securities brokerage.
 -0- 6/2/93
 /CONTACT: Richard Dye of Rochester Community Savings Bank, 716-423-7363/
 (RCSB)


CO: Rochester Community Savings Bank ST: New York IN: FIN SU: OFR

BM -- CL003 -- 4289 06/02/93 08:09 EDT
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Publication:PR Newswire
Date:Jun 2, 1993
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