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ST. PAUL BANCORP ANNOUNCES PROPOSED ACQUISITION OF ELM FINANCIAL SERVICES

 ST. PAUL BANCORP ANNOUNCES PROPOSED ACQUISITION
 OF ELM FINANCIAL SERVICES
 CHICAGO, June 8 /PRNewswire/ -- St. Paul Bancorp, Inc. (NASDAQ: SPBC) and Elm Financial Services, Inc. (NASDAQ: ELMF) today announced that St. Paul Bancorp, the holding company for St. Paul Federal Bank for Savings, has signed a letter of intent to acquire Elm Financial Services, the holding company for Elmhurst Federal Savings Bank, for an aggregate purchase price of $49.1 million, or $22.45 per outstanding share. The purchase price is payable $12.35 in cash and $10.10 in St. Paul Bancorp stock. The book value of Elm Financial Services common stock was $21.60 per share at March 31, 1992. The number of St. Paul Bancorp shares to be issued is subject to adjustment for fluctuations in St. Paul Bancorp's stock price (within certain ranges) until the consummation of the transaction.
 The letter of intent setting forth the basic terms of the proposed acquisition has been unanimously approved by the boards of directors of both St. Paul Bancorp and Elm Financial Services. The proposed acquisition is subject to, among other things, regulatory approvals, execution of a definitive agreement and the approval of Elm Financial's stockholders. Approval by St. Paul Bancorp's stockholders is not required. The letter of intent provides for payments to St. Paul Bancorp by Elm Financial Services in the event of certain third party proposals to acquire Elm, as well as other events resulting in termination of the proposed transaction. Completion of the acquisition is anticipated by early 1993.
 Commenting on the proposed acquisition, St. Paul's Chairman Joseph C. Scully stated, "A key component of our strategic plan is expansion into the rapidly growing DuPage County market. The acquisition of Elm Financial Services' retail banking offices will significantly increase our presence in the state's fastest growing county. In addition, this acquisition will provide operating synergies that will contribute positively to earnings and improve our existing franchise value in the metropolitan Chicago marketplace. We welcome the customers of Elm and look forward to the completion of this transaction."
 Elm Financial Chairman Charles H. Walsh commented, "We see this merger as an excellent opportunity for Elm Financial Services and its stockholders. The fundamental similarities of our corporate objectives an operating philosophies provide a unique opportunity to bring two financially strong institutions together. With access to St. Paul Bancorp's broader resources and product lines, we envision an ability to compete more effectively and to better meet the needs of our customers and the communities we serve."
 The parties cannot enter into a definitive agreement without regulatory approval.
 With assets of $3.6 billion at March 31, 1992, St. Paul Federal is the largest independent thrift headquartered in Illinois. At March 31, 1992, Elmhurst Federal had eight banking facilities, with assets of $380.0 million. As a result of the proposed acquisition, St. Paul will have 45 retail banking offices and a 148-unit proprietary ATM network in metropolitan Chicago.
 -0- 6/8/92
 /CONTACT: Robert N. Parke, senior vice president and chief financial officer, 312-804-2360, or Susan H. Fisher (investors), 312-804-2284, both of St. Paul Bancorp; or Charles H. Walsh, chairman, 708-833-3500, or David G. Plummer, president and CEO, 708-833-8000, both of Elm Financial Services/
 (SPBC ELMF) CO: St. Paul Bancorp, Inc.; Elm Financial Services, Inc. ST: Illinois IN: FIN SU: TNM


GK-TS -- NY001 -- 7765 06/08/92 09:25 EDT
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Publication:PR Newswire
Date:Jun 8, 1992
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