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SOUTHTRUST BANK SIGNS LETTER OF INTENT FOR PURCHASE OF HOMEBANC BRANCHES

 ATLANTA, Nov. 15 /PRNewswire/ -- Officials with HomeBanc, FSB, and SouthTrust Corporation (NASDAQ: SOTR), have signed a letter of intent calling for the purchase of HomeBanc branches by SouthTrust, announced Robert F. Tomain, president and chief executive officer of HomeBanc, and Thomas H. Coley, chairman and chief executive officer of SouthTrust Bank of Georgia, N.A.
 HomeBanc previously announced that it was reorganizing its mortgage operations into a separate independent company called HomeBanc Mortgage Corporation. HomeBanc Mortgage Corporation will continue to operate under current ownership.
 The letter of intent calls for SouthTrust to purchase all branch offices, deposits and associated loans of HomeBanc. As of Sept. 30, HomeBanc had more than $250 million in deposits and approximately $350 million in associated loans. The purchase price remains undisclosed.
 Tomain said: "We are delighted to have reached this agreement with SouthTrust. They operate a strong, aggressive bank in Atlanta and surrounding markets, and we believe this sale will be beneficial to our banking customers."
 HomeBanc operates seven banking offices located in Buckhead, Sandy Springs, Roswell, Norcross, Dunwoody/Chamblee and northwest DeKalb County.
 HomeBanc was chartered in 1929 and became a federally insured stock institution in 1982. In 1986, the federal savings bank was purchased by The Noro Group of Companies.
 The letter of intent is subject to the completion of due diligence, as well as shareholder and regulatory approval, and the execution of a definitive agreement between the two companies.
 Coley said the proposed purchase fits well with SouthTrust Bank's growth strategy.
 "We have remained interested in expanding our Atlanta base," Coley said. "HomeBanc is a long-time Atlanta institution with a lot of loyal customers, and we think it will be a good fit with our present operation. We believe the HomeBanc banking customers will be pleased with the variety of our product line and the high level of service we give to our customers."
 SouthTrust Bank of Georgia N.A. operates 86 offices in Atlanta and the surrounding areas and is an affiliate of SouthTrust Corp., a $14.2 billion regional multibank holding company. SouthTrust operates 40 banks with more than 380 offices in Alabama, Florida, Georgia, Tennessee and the Carolinas.
 -0- 11/15/93
 /CONTACT: Robert F. Tomain of HomeBanc, 404-303-4105, or Thomas H. Coley of SouthTrust Bank of Georgia, 404-230-8714/
 (SOTR)


CO: SouthTrust Corporation; HomeBanc, FSB; SouthTrust Bank of Georgia,
 N.A. ST: Georgia IN: FIN SU: TNM


BN-RA -- AT015 -- 4654 11/15/93 16:31 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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