First Trust Corporation Announces Agreement to Acquire Globe Bancorp and Globe Homestead

Business Wire,  July 15, 2008  

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First Bank and Trust would expand New Orleans-area franchise, make broader array of products and services available to Globe customers

NEW ORLEANS -- In a move that will expand its banking franchise in the New Orleans area, First Trust Corporation, the parent of First Bank and Trust, today announced that it has signed a definitive agreement to acquire Globe Bancorp, Inc., and Globe Homestead.

Globe Bancorp had approximately $29 million in assets at June 30, 2008. Globe Homestead has one location in Metairie at 4051 Veterans Blvd., Suite 100. The transaction, which is subject to regulatory and Globe shareholder approval, is expected to be completed by the end of 2008.

"Both First Bank and Trust and Globe Homestead provide a level of personal service that is unmatched by larger competitors," said J. Michael Brown, president and CEO of First Bank and Trust. "Customers of Globe Homestead, some of whom have had a lifelong relationship with Globe, will continue to be served by the same familiar professionals who have served them over the years. Now they also will have access to the broad array of small-business, consumer and commercial banking products and services offered by First Bank and Trust and its family of financial-services subsidiaries."

Under terms of the all-cash transaction, Globe Bancorp shareholders would receive an amount equal to the book value of Globe Bancorp at a date near the closing, less an allowance of approximately $383,000 to cover Globe Bancorp's transaction costs. Based on the book value as of June 30, 2008, the total merger consideration would be approximately $5.3 million, or $21.10 per share of Globe Bancorp.

Globe Homestead customers should continue conducting transactions as usual. Only after the conversion to First Bank and Trust's operating systems would checks and forms change. Such a conversion likely would not occur until late 2009. The Globe Homestead name will be changed to First Bank and Trust.

Founded in 1991, First Trust Corporation is a New Orleans-based financial-services holding company with approximately $945 million in assets as of June 30, 2008. Subsidiary First Bank and Trust operates branches in New Orleans, Metairie, Algiers, Kenner, Harahan, Covington, Harvey and Baton Rouge; a loan production office in Lafayette; home mortgage offices covering the Gulf South as FBT Mortgage; and branches of the affiliated People's Bank headquartered in Amite, La., and First Bank and Trust of Mississippi, headquartered in Biloxi, Miss. Also subsidiaries of First Trust Corporation are FBT Investments, FBT Advisors and First Insurance Agency.

Forward-looking statements

Certain statements contained in this release, including without limitation statements including the word "believes," "anticipates," "intends," "expects" or words of similar import, constitute "forward-looking statements" within the meaning of section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the parties to be materially different from any future results, performance or achievements of the parties expressed or implied by such forward-looking statements. Such factors include, among others, general economic and business conditions, changes in business strategy or development plans, the satisfaction of all conditions to the merger, including receipt of required regulatory approvals and the approval of the merger by Globe Bancorp, Inc., shareholders and other factors referenced in this release. Given these uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements. The parties disclaim any obligation to update any such factors or to publicly announce the results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

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