Press Release FOR IMMEDIATE RELEASE
Contact: Lee A. Brady
Telephone: (219) 362-7511
LAPORTE BANCORP, INC.
ANNOUNCES REGULATORY APPROVAL TO
CONSUMMATE ITS STOCK OFFERING AND MERGER
La Porte, Indiana - (October 12, 2007). Lee A. Brady, President and Chief
Executive Officer of The LaPorte Savings Bank (the "Bank"), headquartered in La
Porte, Indiana, announced today that the Bank received regulatory approvals to
consummate its mutual holding company reorganization, the minority stock
offering by LaPorte Bancorp, Inc. (the "Company") and complete the acquisition
of City Savings Financial (OTCBB: CSFC), and its wholly-owned subsidiary City
Savings Bank. Upon completion of the mutual holding company reorganization,
stock offering and acquisition, LaPorte Savings Bank, MHC will hold 2,522,013
shares or 52.7% of the company's outstanding stock. LaPorte Bancorp, Inc. sold
1,299,219 shares of common stock at $10.00 per share in a subscription and
community offering in which all subscribers will receive the total shares for
which they ordered.
On October 2, 2007, The LaPorte Savings Bank's Plan of Mutual Holding
Company Reorganization was approved by the Bank's depositors at a Special
Meeting of Depositors that was held at The LaPorte Savings Bank headquarters at
710 Indiana Avenue in La Porte, Indiana.
The City Savings Financial acquisition deal value is approximately $19.8
million, of which shareholders of City Savings Financial will receive 961,933
shares of LaPorte Bancorp, Inc.'s common stock equaling approximately 50% of the
deal value and approximately $10.2 million in cash including the cashing out of
City Savings Financial's stock options.
LaPorte Bancorp, Inc. expects to complete the mutual holding company
reorganization, stock offering and acquisition on Friday, October 12, 2007. The
shares of LaPorte Bancorp, Inc. are expected to begin trading on the NASDAQ
Capital Market on Monday, October 15, 2007 under the ticker symbol "LPSB".
The offering and mutual holding company reorganization were managed by
Keefe, Bruyette & Woods, Inc. Luse Gorman Pomerenk & Schick, P.C., Washington
D.C., served as special counsel to The LaPorte Savings Bank.
The Board of Directors, Officers and Employees of The LaPorte Savings Bank
and LaPorte Bancorp, Inc. express their gratitude for the support for the
offering received from their depositors, and look forward to the opportunity to
continue to serve their customers and new stockholders as the Company moves
forward.
The LaPorte Savings Bank is an Indiana-chartered savings bank that operates
from four full-service locations in LaPorte County, Indiana. The acquisition of
City Savings Financial and its wholly-owned subsidiary, City Savings Bank, will
expand their market presence in LaPorte and Porter Counties, Indiana by adding
an additional three branch offices.
This release contains certain "forward looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of such words as "believe," "expect,"
"anticipate," "should," "planned," "estimated," and "potential." Forward-looking
statements are subject to various factors which could cause actual results to
differ materially from these estimates. These factors include, but are not
limited to, general economic and market conditions, legislative and regulatory
conditions, changes in interest rates that adversely affect The LaPorte Savings
Bank's interest rate spread, changes in deposit flows, loan demand or real
estate values and other economic, governmental, competitive, regulatory and
technological factors that may affect The LaPorte Savings Bank's operations.
THIS RELEASE IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY
COMMON STOCK. THE OFFER IS MADE ONLY BY THE PROSPECTUS.
THE SHARES OF COMMON STOCK ARE NOT DEPOSITS OR SAVINGS ACCOUNTS, MAY LOSE VALUE
AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY.