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KEYCORP SUCCESSFUL BIDDER FOR ACQUISITION OF FIRST AMERICAN BANK OF NEW YORK

 KEYCORP SUCCESSFUL BIDDER FOR ACQUISITION OF
 FIRST AMERICAN BANK OF NEW YORK
 ALBANY, N.Y., Nov. 13 /PRNewswire/ -- In a joint statement today, Victor J. Riley, Jr., chairman, president and chief executive officer of KeyCorp (NYSE: KEY), and George L. Davis, president and chief executive officer of First American Bankshares, announced that subsidiaries of the two bank holding companies have entered into an agreement whereby Key Bank of New York will acquire all of the deposits and most of the assets of First American Bank of New York. Key Bank will acquire approximately $700 million in loans and $1 billion in deposits and related liabilities. The difference in these amounts will be in the form of liquid assets to be transferred by First American Bank of New York to Key Bank, less a premium to be paid by Key Bank.
 Commenting on the acquisition, KeyCorp's Victor Riley said, "This transaction, in and of itself, will result in a meaningful strengthening of Key Bank's market presence in upstate New York. And, when considered in combination with our recently announced agreement to acquire National Savings Bank of Albany, it should be especially rewarding for KeyCorp shareholders. We expect both transactions to be immediately accretive to earnings per share."
 First American Bankshares' Trustee Harry W. Albright, Jr. said, "I am pleased that this agreement has been reached. This is a major first step in resolving the ownership issue of First American."
 Key Bank will acquire 40 of First American's branches, 25 of which are located in Albany's Capital District. First American's Albany headquarters building is a well-known structure listed on the National Register of Historic Buildings. It will be retained for use by Key Bank of New York. Of the remaining 15 branches, nine are located in the Mohawk Valley, four in the North Country, one in Cooperstown and another in New York City.
 Riley stated, "We believe that KeyCorp is in an excellent position to make opportunities available for the First American personnel. We look forward to working with the employees and customers of First American Bank of New York and integrating them into Key. We are eager to combine the two organizations and excited about the opportunities presented by this acquisition."
 Closing of the transaction is subject to approval by federal and state bank regulatory authorities, First American's court-appointed Trustee, Harry Albright, and the federal district court. Terms of the transaction, which will be accounted for as a purchase, were not disclosed.
 KeyCorp (NYSE: KEY), with assets over $25 billion, is a multi- regional bank holding company headquartered in Albany, N.Y. It has focused its banking expansion activities in the Northeast and Northwest. As "America's neighborhood bank," KeyCorp pursues a middle-market target concentrating its resources in cities and smaller communities of the northern tier of states, thus avoiding overcrowded marketplaces and single industry loan exposure.
 -0- 11/13/92
 /CONTACT: Lee Irving, 518-486-8579; or Susan Peterson, 518-486-8258; both of KeyCorp; or Iris Wordsworth of First American Bankshares, 202-383-1423/
 (KEY) CO: KeyCorp; First American Bankshares ST: New York IN: FIN SU: TNM


KK -- CL020 -- 0773 11/13/92 14:32 EST
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Publication:PR Newswire
Date:Nov 13, 1992
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