Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, June 24, 1993                   TAG: 9306240146
SECTION: BUSINESS                    PAGE: B8   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

FIRST UNION CLOSES DEAL MERGER WITH FIRST AMERICAN COULD GIVE ROANOKE 100 JOB

Because First American now becomes part of Roanoke-based First Union National Bank of Virginia, the move is expected to have an impact on the company's operations in the valley.

Benjamin Jenkins, president of First Union's Virginia Bank, said he's confident that more than 100 jobs will be brought to the company's service center in Roanoke because of Wednesday's merger.

As the Virginia bank grows, Jenkins said, "our employment needs in Roanoke will grow." The deal "means a lot to Roanoke."

Some support functions for the Northern Virginia bank will be performed there, he said, but "a large and significant amount is being transferred" to Roanoke.

Under terms of the deal, originally announced Feb. 26, First Union paid $453 million in cash to First American Bankshares Inc.

First Union was the successful bidder for the bank of First American. The government had ordered it sold after it became known that it had been acquired illegally by the Bank of Credit and Commerce International.

The acquisition gives First Union assets of about $71 billion.

First Union paid about 124 percent of First American Metro's year-end book value to acquire the bank. Book value is the theoretical amount of money any company would get if it liquidated all its assets.

First Union said it will take about five months to merge First American's computer and deposit systems into First Union's operations.

It will erect new First Union signs at all branches and offices in December.

The acquisition includes First American's $4.6 billion in assets, $4 billion in deposits and 174 bank branches in Virginia, Maryland and Washington, D.C.

Of this amount, $2.4 billion in assets, $2.1 billion in deposits and 100 branches are in Virginia; $1 billion in assets, $900 million in deposits and 44 branches are in Maryland; and $1.2 billion in assets, $1 billion in deposits and 30 branches are in Washington, D.C.

They are added to the assets of Dominion Bankshares Corp. of Roanoke, which First Union acquired in March.

First Union National Bank of Virginia now has assets of $12.2 billion, deposits of $10.3 billion and 383 branches in Virginia, Maryland and Washington.

In Virginia, the acquisition increases First Union's total deposits to $7.9 billion and the number of branches to 299.

With the acquisition, First Union ranks third in Virginia in share of deposits behind NationsBank and Crestar Bank.

In Maryland, First Union now has 43 branches and deposits of $1.2 billion. Washington has deposits of $1.2 billion and 41 branches.

First Union ranks second in the Washington metropolitan market behind NationsBank.

The First American merger gives First Union an additional $2 billion in trust assets, resulting in trust assets of $39 billion.