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FIRST AMERICAN CORPORATION COMPLETES FIRST CITY ACQUISITION

NASHVILLE, Tenn., March 11 /PRNewswire/ -- First American Corporation's (Nasdaq: FATN) previously announced plans to acquire First City Bancorp (AMEX: FCT) have been completed.

First City is a $360 million bank holding company headquartered in Murfreesboro, Tenn. (Rutherford County). First City has 11 banking offices and nine consumer finance locations in the middle Tennessee area. With its 16-percent market share, First City will boost First American's market share to 22 percent in Rutherford County, the fastest growing county in Tennessee.

"We are excited about strengthening our strong middle Tennessee franchise with the addition of First City. By having a broader presence in Rutherford County, we can more effectively support the consumers and businesses in this area," said Dennis C. Bottorff, chairman and CEO of First American.

First American is consolidating First City's banking operations into First American National Bank and changing the name to First American. Bob Murfree, formerly president and CEO of First City Bank (First City's principal subsidiary) will be First American's City President.

Under the terms of the merger, First City shareholders received .6036 shares of First American common stock for each share of First City in a tax-free exchange. First American issued approximately 1.1 million shares in conjunction with this merger. The transaction will be accounted for as a purchase.

Cost savings representing approximately 25 percent of First City's non-interest expenses are anticipated over the next twelve months.

First American Corporation is the Nashville-based parent company of First American National Bank, First American National Bank of Kentucky, First American Federal Savings Bank of Virginia and First American Enterprises, Inc. Approximately 3,750 people work for First American in 174 offices.

First American's stock is traded in the over-the-counter securities market and is quoted on the Nasdaq National Market under the symbol FATN.
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/CONTACT: Financial: Carroll Kimball of First American Corporation, 615-748-2455 or Fax 615-748-2755, or Media: Vicki Kessler of Atkinson Public Relations, 615-748-2912 or Fax 615-748-2535, for First American/

(FATN)

CO: First American Corporation; First City Bancorp ST: Tennessee, Kentucky IN: FIN SU: TNM

CM -- CHM001 -- 0639 03/11/96 09:13 EST
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Publication:PR Newswire
Date:Mar 11, 1996
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