NetBank, Inc. Reaches Agreement to Acquire Leading Mortgage Originator

Acquisition Provides NetBank Access to More Varied, High-Quality Assets And

Reinforces the Bank's Position as the Premier Internet Financial Services

Provider



Apr 16, 2001, 01:00 ET from NetBank

    ATLANTA, April 16 /PRNewswire/ -- NetBank, Inc., parent company of
 NetBank(R) (Nasdaq:   NTBK) (www.netbank.com ), Member FDIC, Equal Housing
 Lender and the country's leading independent Internet bank with more than
 $1.8 billion in assets, today announced a definitive agreement to acquire
 Market Street Mortgage, a leading mortgage lender based in Clearwater,
 Florida, with a presence in 11 states.  This strategic acquisition is the
 perfect complement to NetBank's ability to attract deposits and develop long-
 term, multi-account relationships with its customers.  The 15-year-old
 mortgage company originated $1.6 billion in loans last year and is currently a
 majority-owned subsidiary of Ann Arbor, Michigan-based Republic Bancorp, Inc.
 NetBank did not disclose financial terms of the agreement.
     "This acquisition is an exciting and important part of our investment and
 business strategy," said D.R. Grimes, NetBank chief executive officer. "We
 have always been incredibly successful in attracting deposits.  A mortgage
 company will provide us with a steady stream of varied loans to consider as
 investment options, and the loans will carry more favorable margins than ones
 purchased on the secondary market.  The mortgage industry is evolving, and the
 ability to deliver services online will become increasingly important.  We are
 now poised to extend our leadership position from online banking into
 lending."
     The acquisition is scheduled to be completed in the second quarter once
 regulatory approvals are received.  Market Street's existing management team
 will continue to oversee the day-to-day operation of the business.  Market
 Street offers an array of mortgage and home equity loan products and currently
 employs approximately 450 people.  Last year, the company ranked as the 38th
 largest retail mortgage lending company in the U.S. according to National
 Mortgage News.
     This acquisition is the second NetBank has announced this year.  In March,
 the bank acquired the active, funded deposit accounts of Houston-based
 CompuBank.
 
     About NetBank(R)
     NETBANK, Inc., is a financial services company that has recorded
 11 consecutive quarters of profitability to date. Its wholly owned subsidiary,
 NetBank (www.netbank.com), Member FDIC, was the first profitable pure Internet
 bank in the country.  With more than $1.8 billion in assets and customers in
 all 50 states and 20 foreign countries, NetBank was recognized as the best
 online bank by readers of Worth magazine in its 2000 "Readers' Choice Awards"
 survey and as a Money.com pick for "Best Online Banks."  With its low-cost,
 branchless business model, NetBank is able to reward its customers with high
 interest rates on deposits with low- or no-fee banking services.  Products and
 services include free online account access, free checking, free unlimited
 online bill payment and presentment, free unlimited ATM use, Visa(R) Check
 Card, Visa(R) credit card, online brokerage services, mortgage lending, home
 equity lines and loans, insurance, IRAs, online safe deposit boxes, and
 business equipment leasing services.  NetBank is a member of the AFFN, Cirrus,
 Honor/Star, MAC and NYCE ATM networks.  For more information on NetBank, its
 products and services, visit the Web site at www.netbank.com, or call
 1-888-BKONWEB (256-6932).
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995: Information in this press release about Market Street Mortgage
 providing NetBank more varied and higher-quality loans to consider for its
 investment purposes, and NetBank's becoming a leader in the mortgage lending
 industry are "forward-looking statements" involving risks and uncertainties
 that could cause actual results to differ materially. Risks include Market
 Street not being successful in originating significant numbers of new and
 different types of loans, and consumer demand for online lending services not
 increasing significantly over time. The bank has no obligation to update any
 forward-looking statements. For a discussion of additional risks and
 uncertainties facing NetBank, see "Risk Factors" in the Company's SEC filings.
 
     CONTACT:
     D.R. Grimes, CEO, NetBank
     Robert E. Bowers, CFO, NetBank
     678-942-2683
 
 

SOURCE NetBank
    ATLANTA, April 16 /PRNewswire/ -- NetBank, Inc., parent company of
 NetBank(R) (Nasdaq:   NTBK) (www.netbank.com ), Member FDIC, Equal Housing
 Lender and the country's leading independent Internet bank with more than
 $1.8 billion in assets, today announced a definitive agreement to acquire
 Market Street Mortgage, a leading mortgage lender based in Clearwater,
 Florida, with a presence in 11 states.  This strategic acquisition is the
 perfect complement to NetBank's ability to attract deposits and develop long-
 term, multi-account relationships with its customers.  The 15-year-old
 mortgage company originated $1.6 billion in loans last year and is currently a
 majority-owned subsidiary of Ann Arbor, Michigan-based Republic Bancorp, Inc.
 NetBank did not disclose financial terms of the agreement.
     "This acquisition is an exciting and important part of our investment and
 business strategy," said D.R. Grimes, NetBank chief executive officer. "We
 have always been incredibly successful in attracting deposits.  A mortgage
 company will provide us with a steady stream of varied loans to consider as
 investment options, and the loans will carry more favorable margins than ones
 purchased on the secondary market.  The mortgage industry is evolving, and the
 ability to deliver services online will become increasingly important.  We are
 now poised to extend our leadership position from online banking into
 lending."
     The acquisition is scheduled to be completed in the second quarter once
 regulatory approvals are received.  Market Street's existing management team
 will continue to oversee the day-to-day operation of the business.  Market
 Street offers an array of mortgage and home equity loan products and currently
 employs approximately 450 people.  Last year, the company ranked as the 38th
 largest retail mortgage lending company in the U.S. according to National
 Mortgage News.
     This acquisition is the second NetBank has announced this year.  In March,
 the bank acquired the active, funded deposit accounts of Houston-based
 CompuBank.
 
     About NetBank(R)
     NETBANK, Inc., is a financial services company that has recorded
 11 consecutive quarters of profitability to date. Its wholly owned subsidiary,
 NetBank (www.netbank.com), Member FDIC, was the first profitable pure Internet
 bank in the country.  With more than $1.8 billion in assets and customers in
 all 50 states and 20 foreign countries, NetBank was recognized as the best
 online bank by readers of Worth magazine in its 2000 "Readers' Choice Awards"
 survey and as a Money.com pick for "Best Online Banks."  With its low-cost,
 branchless business model, NetBank is able to reward its customers with high
 interest rates on deposits with low- or no-fee banking services.  Products and
 services include free online account access, free checking, free unlimited
 online bill payment and presentment, free unlimited ATM use, Visa(R) Check
 Card, Visa(R) credit card, online brokerage services, mortgage lending, home
 equity lines and loans, insurance, IRAs, online safe deposit boxes, and
 business equipment leasing services.  NetBank is a member of the AFFN, Cirrus,
 Honor/Star, MAC and NYCE ATM networks.  For more information on NetBank, its
 products and services, visit the Web site at www.netbank.com, or call
 1-888-BKONWEB (256-6932).
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995: Information in this press release about Market Street Mortgage
 providing NetBank more varied and higher-quality loans to consider for its
 investment purposes, and NetBank's becoming a leader in the mortgage lending
 industry are "forward-looking statements" involving risks and uncertainties
 that could cause actual results to differ materially. Risks include Market
 Street not being successful in originating significant numbers of new and
 different types of loans, and consumer demand for online lending services not
 increasing significantly over time. The bank has no obligation to update any
 forward-looking statements. For a discussion of additional risks and
 uncertainties facing NetBank, see "Risk Factors" in the Company's SEC filings.
 
     CONTACT:
     D.R. Grimes, CEO, NetBank
     Robert E. Bowers, CFO, NetBank
     678-942-2683
 
 SOURCE  NetBank