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DEFINITIVE AGREEMENT ANNOUNCED FOR KEYCORP TO ACQUIRE HOME FEDERAL SAVINGS BANK

 DEFINITIVE AGREEMENT ANNOUNCED FOR KEYCORP TO ACQUIRE
 HOME FEDERAL SAVINGS BANK
 ALBANY, N.Y., Oct. 22 /PRNewswire/ -- KeyCorp (NYSE: KEY) and Home Federal Savings Bank ("Home Federal") have announced the signing of a definitive agreement by which KeyCorp will acquire Home Federal Savings Bank. Home Federal, a Fort Collins, Colorado-based thrift institution has four branches in the Fort Collins area, situated between Denver and Cheyenne. It has approximately $180 million in deposits, $170 million in loans, and $245 million total assets.
 Terms of the definitive agreement provide for the issuance of KeyCorp common stock with a value of $32.00 per share for each share of Home Federal common stock. Aggregate consideration will be approximately $17.6 million. The number of KeyCorp shares to be issued will depend on the market value per KeyCorp share, as determined in a pricing period of twenty consecutive business days ending shortly before closing of the transaction. The number of KeyCorp shares to be issued is also subject to certain limitations in the event the market value of KeyCorp common stock is less than $27.75 per share or more than $37.75 per share as determined during the pricing period. If less than $27.75 per share, moreover, Home Federal would have the right to request cash instead of KeyCorp common stock. The transaction is subject to approval by the shareholders of Home Federal and the appropriate bank regulatory authorities.
 Home Federal has issued an option to KeyCorp to acquire 19.9 percent of Home Federal's common stock. The option would be exercisable by KeyCorp only if certain conditions are met relating to the acquisition of Home Federal by an entity other than KeyCorp.
 Commenting on the transaction, Victor J. Riley, Jr., KeyCorp's chairman, president and chief executive officer, said "We are extremely pleased to welcome Home Federal into the KeyCorp family as our first subsidiary based in the state of Colorado. Home Federal serves an attractive marketplace which is a natural extension of the service area of Key Bank of Wyoming, headquartered in Cheyenne. The transaction should be modestly accretive to KeyCorp earnings and book value per share in 1993, even if synergies are no greater than 10% of Home Federal's expense base."
 John D. Borman, Jr., the chairman of the Board of Directors of Home Federal, added "We look forward to becoming a part of the KeyCorp team. We're proud to be KeyCorp's first Colorado franchise, but are also excited by the potential synergies we can generate with our close neighbors at Key Bank of Wyoming. With access to Key's resources, the Fort Collins market area will be better served by us than ever before."
 KeyCorp (NYSE: KEY), with assets over $25 billion, is a multi- regional bank holding company headquartered in Albany, New York. 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- 10/22/92
 /CONTACT: Lee Irving, 518-486-8579, or 518-479-3273, after hours, or Susan Peterson, 518-486-8258, or 518-587-3008, after hours, both of KeyCorp/
 (KEY) CO: KeyCorp; Home Federal Savings Bank ST: New York, Colorado IN: FIN SU: TNM


SM -- CL006 -- 3351 10/22/92 09:19 EDT
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Publication:PR Newswire
Date:Oct 22, 1992
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