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FARMERS & MECHANICS COMPETES CONVERSION

 MIDDLETOWN, Conn., Dec. 9 /PRNewswire/ -- Farmers & Mechanics Bank (NASDAQ-NMS: FMCT) today announced that its conversion from a Connecticut-chartered mutual savings bank to a Connecticut-chartered stock savings bank becomes effective on Friday, Dec. 10, 1993. The stock will begin trading on that date and will be listed on the NASDAQ National Market System under the symbol "FMCT".
 The bank sold 1,653,125 shares of its common stock at a price of $10 per share. Orders from eligible account holders and community offering purchasers residing in Middlesex, Tolland, Hartford and New London counties, all of which had purchase priorities under the plan of conversion, were filled in their entirety. Since the stock offering was substantially oversubscribed with eligible account holders taking the majority of shares, only a limited number of shares was available for distribution in the general public portion of the community offering. The bank used its discretion, as permitted under the plan of conversion, to allocate those shares to the smallest orders.
 The bank will realize net proceeds from the conversion of approximately $14.8 million. At year end the Tier I leverage capital ratio will be approximately 6 percent. The bank expects to be in compliance with applicable regulatory capital requirements.
 "The success of Farmers & Mechanics' initial public offering is very important because it recognizes the bank's progress and prospects as a stronger, yet traditionally responsive, community bank," said John F. Beckert, president and chief executive officer of Farmers & Mechanics. "In our opinion, this successful conversion also evidences investor acknowledgment of progress in Connecticut's economy and the banking industry. We were most gratified by the vote of confidence in the bank by depositors, the assisting brokerage firms and First Albany Corporation, which acted as our financial advisor in this transaction," Mr. Beckert concluded.
 Farmers & Mechanics Bank is a Connecticut savings bank operating from its main office in Middletown, Conn., and 11 branch offices in and adjacent to Middlesex County. The bank is the second largest depository institution headquartered in Middlesex County. At Sept. 30, 1993, the bank had total assets of $475.8 million and total deposits of $441.2 million.
 -0- 12/9/93
 /CONTACT: Joel E. Hyman, executive vice president, chief financial officer & treasurer of Farmers & Mechanics Bank, 203-346-9677/
 (FMCT)


CO: Farmers & Mechanics Bank ST: Connecticut IN: FIN SU:

LD-WB -- NY089 -- 2413 12/09/93 17:58 EST
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Publication:PR Newswire
Date:Dec 9, 1993
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