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NEWS:
For Immediate Release
June 5, 2000 at 3:00 p.m. ET
For More Information Contact:
Carroll E. Amos,
President and C.E.O.
Greater Atlantic Bank
(703) 390-0340
GREATER ATLANTIC FINANCIAL CORP. AGREES TO ACQUIRE
DOMINION SAVINGS BANK, FSB
(RESTON, VIRGINIA, JUNE 5, 2000) - Greater Atlantic Financial Corp. (NASDAQ:
GAFC), the holding company for Greater Atlantic Bank, Reston, Virginia, and
Dominion Savings Bank, Front Royal, Virginia, today announced that they have
entered into a definitive agreement for the acquisition of Dominion Savings Bank
by Greater Atlantic Financial Corp. Under the terms of the Agreement, Greater
Atlantic Financial Corp. will pay the shareholders of Dominion Savings Bank cash
in an amount to be determined shortly prior to closing which the parties
currently estimate, based on certain assumptions, will be approximately $1.1
million or $3.13 per share for the 351,213 shares of Dominion Savings Bank
Common Stock outstanding. The acquisition, which is expected to be completed by
September 30, 2000, will result in the merger of Dominion Savings into Greater
Atlantic, and is subject to approval by the shareholders of Dominion Savings
Bank and regulatory authorities.
Upon completion of the acquisition, Dominion Savings Bank's three offices -
located in the Shenandoah Valley communities of Front Royal, Winchester and New
Market - will become part of the Greater Atlantic Bank branch network.
Greater Atlantic Financial Corp. Chairman William Calomiris said, "It is
extremely gratifying to me that the Board of Directors at both institutions have
agreed to this combined effort. Our customers and the communities we serve will
be the beneficiaries of the combined talents of both organizations and the Board
of Directors of Greater Atlantic Financial Corp. is very pleased to be able to
provide our shareholders with such an attractive opportunity to enhance the
return on their investment."
Greater Atlantic Bank President and Chief Executive Officer Carroll E. Amos, who
will continue as President and Managing Officer of the merged banks, stated, "We
are truly excited by this opportunity to enhance our franchise value by
establishing a three-branch presence in the Shenandoah Valley. This is truly a
win-win situation for both institutions, for our customers, and for our
shareholders. The alliance of these two organizations will create new
opportunities for the existing customers of Dominion Savings Bank, and enable
them to become part of a successful, growing community oriented financial
institution."
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Commenting on the acquisition, Dominion Savings Chairman & CEO David W. Campbell
said, "the opportunity to join another community-oriented institution like
Greater Atlantic means that our customers and communities will be very well
served. Going forward, the opportunities for product enhancements and expanded
loan capacity will clearly benefit the customers of each institution."
Greater Atlantic Financial Corp. conducts its business operations through its
wholly-owned subsidiary, Greater Atlantic Bank and the Bank's independent
wholly-owned subsidiary, Greater Atlantic Mortgage Corporation. When the
acquisition is completed, Greater Atlantic Bank will be operating an
eight-branch network, including the three Dominion Savings Bank offices. Greater
Atlantic Bank currently offers traditional banking services to customers through
five branches located in Washington, D.C., Rockville and Pasadena, Maryland, and
Arlington and Sterling, Virginia.
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