First Commercial Adds East Texas Bank.

LITTLE ROCK, Ark.--(BUSINESS WIRE)--Feb. 7, 1996--First Commercial Corporation (FCC), the Arkansas-based bank holding company, announced today that it has entered into a definitive agreement for the purchase of Cedar Creek Bancshares, Inc. and its wholly owned subsidiary, Cedar Creek Bank.

Headquartered in Seven Points, Texas, Cedar Creek Bank serves the Cedar Creek Lake region of East Texas.

Including its recent purchase of a branch in Corsicana, Texas, Cedar Creek Bank has assets of $100 million, loans of $39 million and deposits of $93 million. This represents FCC's eighth affiliate in Texas, the twenty-sixth overall in its five state market area. FCC will issue 464,380 shares of its stock for all outstanding shares of Cedar Creek Bancshares, Inc.

The transaction is expected to close in the third quarter, at which time Cedar Creek Bancshares, Inc. will merge with State First Financial Corporation, FCC's subsidiary holding company in the Southwest Arkansas/East Texas region. Cedar Creek Bank will operate as a subsidiary of State First.

"Cedar Creek Bank is a good geographic fit for us, and has an established reputation of strength and stability," noted Barnett Grace, chairman of the board, president and chief executive officer of First Commercial Corporation.

"It has a strong presence throughout the Cedar Creek Lake region, including the towns of Seven Points, Kerens, Tool, Gun Barrel City and Corsicana." Grace added that in addition to the strength and performance of the bank, "FCC was impressed with the fact that the area has become a vacation/resort destination.

"This is a natural extension of our East Texas franchise, and reflects our continued interest and commitment to communities throughout the region. We believe that the strength of our East Texas banks, combined with the solid industry in the communities we serve, will have a lasting, favorable impact on our company.

"Cedar Creek Bank is a dominant player in its communities. Like other FCC community banks, it has developed a reputation for customer service and community involvement. We look forward to welcoming this outstanding organization to our family of banks."

"First Commercial Corporation has established itself as a premier financial organization whose banks excel in their respective markets," noted Tom Carpenter, chairman of the board, president and chief executive officer of Cedar Creek Bank. "This affiliation presents our customers and bankers with new opportunities and resources as a part of a multi-billion dollar bank holding company. FCC is known throughout the region for its commitment to customer service through autonomy and local decision making, yet provides modern technology to its banks so that they can provide the best products and service available. We are anxious to combine FCC's strength, stability and expertise with our brand of personal service and community involvement."

First Commercial Corporation is a $5.4 billion bank holding company with twenty-four affiliate banks in Arkansas, Texas, Tennessee and Louisiana and 50% interest in a twenty-fifth bank in Oklahoma. FCC's non-bank subsidiaries include First Commercial Mortgage Company, First Commercial Trust Company, N.A., First Commercial Investments, Inc., First Commercial Capital Management, Financial Fleet Services, Inc. and Commercial Capital Funding, Inc. of Dallas.

CONTACT: First Commercial Corporation, Little Rock

Lynn Wright, 501/371-7142