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Exhibit 99
N E W S R E L E A S E
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Gary G. Clark, C.E.O. FOR IMMEDIATE RELEASE
Signal Corp ---------------------
135 East Liberty Street
Wooster, OH 44691 June 30, 1998
Phone: (330) 264-8001 -------------
SIGNAL CORP COMPLETES ACQUISITION
OF FIRST SHENANGO BANCORP
Wooster, Ohio - - - Signal Corp (NASDAQ-SGNL, SGNLO)("Signal") today
announced that it has completed the acquisition of First Shenango ("Shenango"),
and its subsidiary, First Federal Savings Bank of New Castle ("First Federal").
The Shenango transaction, announced February 9, 1998, was completed on
June 29, 1998 with Signal issuing approximately 3,087,000 shares of common stock
in exchange for the 2,161,000 shares of Shenango outstanding. Based on Signal's
closing price of $28.63 on June 26, 1998, the transaction is valued at
approximately $88 million. First Federal, which operates four offices in
Lawrence County, Pennsylvania, had total assets of $407 million, total deposits
of $280 million and shareholders' equity of $49 million as of May 31, 1998.
Gary G. Clark, CEO of Signal stated that, "The completion of this
acquisition is important to furthering our community banking franchise and
deposit base." Signal plans to leverage First Federal's strong capital position
and its attractive funding base to grow it's consumer and commercial loan
portfolio as well as it's manufactured housing portfolio over the next several
quarters in lieu of asset backed securitizations. Second quarter combined
earnings will include a non-recurring pre-tax expense of approximately $8.5
million reflecting costs to integrate back-office operations, conform accounting
policies and acquisition transaction expenses. The Company expects to be able to
enhance First Federal's net interest margin and achieve annual cost savings of
approximately 20% of First Federal's operating expenses. The transaction is
expected to be neutral to Signal's recurring earnings per share within its first
full year.
Francis A. Bonadio, CEO of First Federal stated, "We're pleased with
our new association with Signal which enhances First Federal's commitment to
it's community and provides a more diverse mix of financial products to
individuals and business' in the Lawrence County market place."
Signal Corp operates in two business segments: community banking and
specialty finance. The community banking segment consists of Signal Bank, N.A.
with 25 full service banking offices and 3 limited service facilities in North
central Ohio, First Federal Savings Bank of New Castle with 4 full service
banking offices in Lawrence County, PA and Summit Bank, N.A. with 2 offices in
Summit County, OH. The specialty finance segment consists of Mobile Consultants,
Inc., a broker and servicer of manufactured housing finance contracts operating
in 44 states, as well as other subsidiaries of Signal providing broker/dealer,
registered investment advisor, leasing, consumer finance, insurance and property
appraisal services.