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FIRST BANKS TO ACQUIRE FIRST FEDERAL SAVINGS BANK OF PROVISO TOWNSHIP

 CHICAGO, July 20 /PRNewswire/ -- First Banks, Inc. (NASDAQ-NMS: FBNKP) and First Federal Savings Bank of Proviso Township announced today that they have signed a definitive merger agreement under which First Banks, Inc. will acquire First Federal Savings Bank of Proviso Township in an all-cash deal. Terms of the transaction call for First Banks, Inc. to pay First Federal's shareholders $39.16 per share as part of the merger representing a purchase price of over $23 million. The merger is subject to, among other things, approval of First Federal's shareholders, and approval by necessary regulatory authorities. The merger is expected to close by the year end, but in no event later than March 31, 1994. In connection with the transaction, First Federal has granted a warrant to First Banks to purchase up to 19.9 percent of newly issued First Federal stock, upon the occurrence of certain acts.
 Irving M. Braun, chairman of First Federal, stated that the management and board of directors fully support the agreement.
 First Federal Savings Bank of Proviso Township was organized in 1957 and went public in 1984 and is headquartered in Hillside, Ill. with a branch in Maywood, Ill. At June 30, 1993, it had assets of $196.7 million. Stockholder equity at June 30, 1993 was approximately $20.5 million, or approximately $34.71 per share. Commenting on the transaction, Mr. Braun stated, "We are very pleased at the prospect of having First Federal Savings Bank of Proviso Township become part of First Banks, Inc. We believe the transaction is in the best interests of First Federal, its stockholders, customers and employees and the communities it serves and, to that end, it is contemplated that there will be no material change in the management of First Federal, including Mr. Braun as president and chairman of the board and Gary Policky as executive vice president. First Banks, Inc. is a well capitalized multibillion dollar company with a tradition of providing quality service and products to customers in the communities it serves."
 As of June 30, 1992, First Banks had assets of $2 billion. Its net income for the six months ended June 30, 1993 was $11.8 million. First Banks is headquartered in St. Louis County, Mo. Of its 76 locations, 30 are located in the St. Louis metropolitan area, 11 in rural Eastern Missouri and 35 in central and southern Illinois. First Federal's acquisition is its first in the Chicago metropolitan area.
 James F. Dierberg, chairman and chief executive officer of First Banks, stated that he is pleased to have this opportunity to work with the shareholders, officers and employees of First Federal and excited about the prospects of serving the Chicago area. He added that since Chicago is a new market for First Banks, the knowledge and experience of the officers and employees of First Federal are an important part in continuing to provide the same high-quality service to its community and customers. While First Banks has no other Chicago area locations, it plans to expand its presence there in the future.
 -0- 7/20/93
 /CONTACT: Gary Policky of First Federal Savings Bank of Proviso Township, 708-449-3100/
 (FBNKP) CO: First Federal Savings Bank of Proviso Township; First Banks, Inc. ST: Illinois, Missouri IN: FIN SU: TNM


TS-MP -- NY104 -- 3561 07/20/93 16:29 EDT
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Publication:PR Newswire
Date:Jul 20, 1993
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