However, small and medium-sized businesses may find
                           borrowing more difficult

    CHICAGO, Dec. 9 /PRNewswire/ -- According to community bank expert Robert
Riter, chairman of Schaumburg-based American Chartered Bank, 1999 will
primarily see three things in the banking industry:  Mergers will continue,
but not at the record levels of recent years; the role of technology will
continue to encapsulate our lives; and an unstable global economy is sure to
have an impact.

    Consolidation
    Bank consolidation will continue, but at a slower pace.  The drop in
market values in the banking sector has created a chill, although the relative
value of bank stocks may not be changed greatly.  Boards of Directors will
need to be content with lower multiples of book value.
    "Once reality sets in, mergers will resume in so far as there are strong
synergies to be achieved-and there will be synergies.  Look for more medium-
sized banking groups to merge in an attempt to catch up to the mega banks,"
says Riter.

    Technology
    Peoples' desire for convenience as the driving force behind the continued
evolution of technology and banking.  To date, banks have spent their time and
money in the development and testing of technology and will apply this
technology next year and in the future.
    "In 1999, we will begin to see much wider applications of technology both
in the retail and wholesale sectors.  How many of us really use the Internet
to conduct our transactions at this time?  The answer is not many, but this
will change," says Riter.

    Credit Availability
    There has been a flight to quality in the credit markets.  Lenders would
rather buy risk free government bonds than lend to businesses.  "It's really
just a rational response of lenders to economic uncertainty and instability,"
says Riter.
    The cost of credit has increased for sub-prime borrowers and the
availability of credit may be less than it was.  "This means many small and
medium-sized business may find borrowing much more difficult than it has been
in the past."

    What Can A Business Owner Do To Prepare?  Riter's Advice:
    -- TEST the relationship you have with your banker.  If it's not what it
       should be, take steps to improve it.  Do you need more equity to
       satisfy your bank?  Perhaps term-out part of your line of credit, but
       ask to keep your credit availability at least at the same level.
    -- FINISH your business plan.  Don't put it off because you need to
       determine your goals for 1999 and what role your bank will play in
       helping you achieve those goals.  Don't surprise your banker in 1999.
    -- THINK about the worse case scenario -- a credit crunch with an
       accompanying recession.  What will you do if that happens?  Do you have
       a backup or alternative plan?  What will happen to your customers?  Do
       you have a concentration in your customer base (10% of your sales or
       more to one customer)?  If so, is that customer well financed or will
       you become your customer's de-facto bank when he stretches his payables
       to you to 60 or 90 days?
    -- FIND a "relationship" banker if you don't already have one.  A banker
       who understands the nature of your business and comes to the table with
       creative solutions.  A banker who will come to know you, will share
       your vision and be willing to take that to the bank in times of a
       credit crunch.

    About American Chartered Bank
    Founded in 1987, American Chartered Bank is an independently-owned,
full-service commercial bank servicing privately owned small and medium-sized
businesses and individual customers in the Greater Chicago area. Headquartered
in Schaumburg, American Chartered Bank has branch locations in Palatine, Lake
Zurich, Mount Prospect and Bartlett.

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