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VALLEY NATIONAL CORPORATION TO JOIN BANC ONE

 VALLEY NATIONAL CORPORATION TO JOIN BANC ONE
 COLUMBUS, Ohio, April 14 /PRNewswire/ -- Banc One Corporation


(NYSE: ONE) and Valley National Corporation (NASDAQ: VNCP), a multi- bank holding company headquartered in Phoenix, Ariz., jointly announced today that they have signed a definitive agreement for the merger of Valley National Corporation with Banc One. The announcement was made by John B. McCoy, chairman and chief executive officer of Banc One, and Richard J. Lehmann, chairman and chief executive officer of Valley National Corporation.
 Terms of the agreement call for the exchange of 1.2 shares of Banc One common stock for each share of Valley National Corporation. Based on Monday's closing price, total value of the transaction is approximately $1.2 billion. The value of the transaction represents 222 percent of Valley National Corporation's book value as of Dec. 31, 1991. The transaction is expected to be completed Jan. 1, 1993, and is subject to shareholder and regulatory approval.
 Banc One estimates that the transaction will be less than 1 percent dilutive to its earnings per share in the first year. This is based on an ongoing earnings running rate for Valley National in 1992 of approximately $84 million, and the consensus analysts' 1992 earnings estimates for Banc One of approximately $3.25 a share.
 McCoy said, "We have looked long and hard at the prospects of Valley National joining Banc One. We are particularly impressed with the new senior management team put in place by the Valley National board of directors. After substantial due diligence, we are satisfied that they have acted aggressively to get problem loans under control. We expect the current Valley National management team to remain in place when the transaction is completed and the company becomes Banc One Arizona Corporation."
 McCoy continued, "Valley National's superb retail and middle market franchise makes this a unique opportunity to occupy a leading market position in a state with a bright future. We view Arizona as being almost identical economically to where Texas was two or three years ago. Arizona's banking problems are due primarily to concentrations of assets in real estate. These assets have substantially been written down, while the economy has started to turn up in the region. In addition, both Texas and Arizona are projected to be among the fastest growing states in the country during the next decade."
 Lehmann said, "We are delighted to become part of the growing Banc One family of banks across America. We consider Banc One to be the premier banking organization in the country, and affiliating with Banc One now will enable us to take advantage of expanding economies in Arizona and Utah much quicker than if we were trying to do it on our own. This partnership will permit us to continue our tradition of serving our communities and our customers in a superior fashion."
 Valley National Corporation had assets of $10.7 billion as of Dec. 31, 1991, and operates 206 offices in Arizona, 35 in Utah and seven in California.
 Banc One Corporation had assets of $46.3 billion as of Dec. 31, 1991, and total equity of $3.4 billion. Banc One operates 57 banks with 869 offices in Indiana, Illinois, Kentucky, Michigan, Ohio, Texas and Wisconsin. Banc One Corporation also operates several additional corporations that engage in data processing, venture capital, investment and merchant banking, trust, brokerage, equipment leasing, mortgage banking, consumer finance and insurance.
 -0- 4/14/92
 /CONTACT: George R.L. Meiling, 614-248-5908; or John A. Russell, 614-248-5989, both of Banc One Corporation; Steve Roman of Valley National Corporation, 602-221-1267; or George Sard of Adams & Rinehart, 212-557-0100, for Banc One Corporation/
 (ONE VNCP) CO: Banc One Corporation; Valley National Corporation ST: Ohio, Arizona IN: FIN SU: TNM


KK -- CL002 -- 8047 04/14/92 07:54 EDT
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Publication:PR Newswire
Date:Apr 14, 1992
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