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FULTON FINANCIAL AND CENTRAL PENNSYLVANIA FINANCIAL TO MERGE

 SHAMOKIN and LANCASTER, Pa., Dec. 30 /PRNewswire/ -- Central Pennsylvania Financial Corporation (NASDAQ: CPSA), parent of Central Pennsylvania Savings Association, F.A., headquartered in Northumberland County, and Fulton Financial Corporation (NASDAQ: FULT), a Lancaster- based bank holding company, jointly announced today they have entered into a definitive merger agreement in a cash merger transaction valued at $45 million.
 Under terms of the agreement, Fulton Financial will pay $23 for each of Central Pennsylvania's 1,939,920 outstanding shares of common stock. The transaction is expected to close in mid-1994.
 Central Pennsylvania Financial Corporation will be merged into Fulton Financial, which then intends to distribute Central Pennsylvania Savings Association's assets, including at least 10 of its branches, among its affiliate banks. Central Pennsylvania has previously agreed to sell eight of its branch office operations to National Penn Bank, Boyertown, and it will continue to market five other branch offices. The Central Pennsylvania branches Fulton Financial will acquire are located in Cumberland, Dauphin, Lycoming, Montour, Northumberland, Snyder and Union counties and have total assets of approximately $300 million.
 Under the terms of the agreement, Fulton Financial has received from Central Pennsylvania an option to acquire up to 386,000 shares of Central Pennsylvania's common stock under certain circumstances. This option will remain outstanding until the purchase is completed.
 The transaction, which has been approved by the directors of the two institutions, is subject to regulatory approval and the approval of Central Pennsylvania shareholders.
 Rufus A. Fulton Jr., president and chief executive officer of Fulton Financial, said, "Central Pennsylvania was attractive to us since it will enable our affiliates to strengthen and expand their presence in their primary and surrounding market areas."
 He added, "The combination of the purchase of Central Pennsylvania and our recently announced acquisition of Mid-Atlantic Bankcorp, Hagerstown, Maryland, should have a positive impact on Fulton Financial's total net income in 1994 and work to the benefit of our shareholders."
 Ronald S. Faett, president of Central Pennsylvania Financial, stated that the merger with Fulton Financial "will give our customers access to a broader array of banking services and products."
 As of Sept. 30, 1993, the assets, deposits and equity capital of Central Pennsylvania Financial Corp. were approximately $443 million, $375 million and $33.6 million, respectively. Central Pennsylvania Savings continues to meet and exceed all OTS required regulatory capital levels.
 With the Central Pennsylvania and Mid-Atlantic acquisitions, Fulton Financial's assets will exceed $3 billion and its service area will be expanded to 13 counties in Pennsylvania and one county in Maryland.
 -0- 12/30/93
 /CONTACT: Frank J. Fendt or Ronald S. Faett, 717-644-0861, both for Central Pennsylvania Financial Corp/
 (FULT CPSA)


CO: Fulton Financial Corporation; Central Pennsylvania Financial
 Corporation ST: Pennsylvania IN: FIN SU: TNM


JM-JO -- PH020 -- 8192 12/30/93 18:30 EST
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Publication:PR Newswire
Date:Dec 30, 1993
Words:464
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