Charter Bancshares Closes Acquisition Of West Loop Savings And Loan

Business Wire, Jan 11, 1995

HOUSTON, Texas--(BUSINESS WIRE)--January 11, 1995--Charter Bancshares, Inc. (Nasdaq:SAIL) today announced that it has consummated the acquisition of West Loop Savings and Loan Association and the conversion of West Loop to a Texas state savings bank to be known as Charter Bank, SSB. The purchase price for West Loop is approximately $9.3 million in cash plus additional cash consideration based on adjusted earnings from April 1, 1994 through December 31, 1994. The acquisition of West Loop will be accounted for as a purchase.

West Loop, with total assets of approximately $140 million at December 31, 1994, is the fifth largest thrift headquartered in Harris County (Houston), Texas. West Loop operates branches in the Meyerland area and in Baytown. At December 31, 1994, West Loop had total loans, net of valuation reserves and unearned discount, of approximately $86 million.

Jerry E. Finger, Charter's Chairman and Chief Executive Officer, commented, "The acquisition of West Loop will add substantially to our loan portfolio and will be immediately accretive to earnings. This acquisition, together with the four other acquisitions which we have completed since March 31, 1994, have been strategically undertaken to expand our asset base, add complementary lines to our core business and create opportunities for improved cost efficiencies. In implementing this, we are enhancing the Charter franchise and thus increasing shareholder value."

Charter Bancshares, Inc. is a multibank holding company with four member banks and 18 locations in the Houston/Galveston area, having total assets in excess of $800 million. Charter also operates Charter Mortgage Company, with seven mortgage lending offices in Houston, Austin, Dallas and Plano. Charter's common stock is traded on the Nasdaq Stock Market under the ticker symbol SAIL.

CONTACT: Charter Bancshares, Inc.

              Jerry E. Finger
              Chairman and CEO
              William S. Shropshire, Jr.
              Chief Financial Officer
              (713) 692-6121
               or
              Morgen-Walke Associates
              Michele Katz/Jeffrey Luth
              Press:  Lisa Bradlow
              (212) 850-5600