FOR IMMEDIATE RELEASE: December 5, 1996

Commissioner Patrick M. McQueen of the Michigan Financial Institutions Bureau, today announced that the first charter issued under the state's new State Savings Bank law was granted to Northwestern Savings Bank & Trust of Traverse City on December 1, 1996.

"We welcome the prospect of newly chartered state savings banks and commend Northwestern Savings Bank and Trust for being the first financial institution in Michigan to take advantage of the new charter," commented Commissioner McQueen. "The new savings banks will be able to offer a broader array of products and services while enjoying the advantages of a state charter."

Northwestern Savings Bank was previously chartered as a federal savings and loan association, regulated by the Office of Thrift Supervision. Founded in 1955, Northwestern Savings Bank has total assets of approximately $188 million and currently employs 119 people. The savings bank serves the communities of Traverse City, Acme, Elk Rapids, Kalkaska, Ludington, Manistee and Petosky.

Mr. Richard Jackson, Executive Vice President of the bank, explained the move to the state charter, stating, "With the uncertainty of the future of the federal charter, the significant reduction in regulatory expense we will enjoy with the FIB, and the accessibility of the state regulators, the new state charter was a logical choice for Northwestern. The state charter will allow us to better serve the needs of out customers in northwestern Michigan. We are looking forward to working closely with the Financial Institutions Bureau."

The Financial Institutions Bureau is the primary regulator for state-chartered banks, credit unions, state savings banks, and over 4,000 other lenders in Michigan.