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FIRST UNION TO ACQUIRE FLORIDA-BASED MERITOR SAVINGS, FA

 FIRST UNION TO ACQUIRE FLORIDA-BASED MERITOR SAVINGS, FA
 CHARLOTTE, N.C., Sept. 18 /PRNewswire/ -- First Union Corporation (NYSE: FTU FTUpr), has entered into an agreement to acquire Florida- based Meritor Savings, FA (NASDAQ-NMS: MTOR) from its parent company.
 Meritor Savings, with 29 offices in Central Florida and 15 offices in the metropolitan area of Washington, D.C., reported $1.2 billion in assets as of June 30, 1992.
 First Union will pay approximately $46 million in cash for the acquisition, or approximately 73 percent of Meritor Savings' June 30, 1992, book value. The transaction is expected to close in early 1993, subject to regulatory approvals and various other conditions of closing. First Union currently expects no earnings per share dilution from the acquisition and that the aquisition will be additive to earnings per share in 1993.
 The acquisition will boost First Union's Florida deposit share from second to first in Brevard and Polk counties, and from third to second in Orange County.
 "This is an excellent opportunity for us to strengthen our presence in attractive markets such as Orlando, Winter Haven and Titusville," said Byron E. Hodnett, chairman and chief executive officer of First Union National Bank of Florida. "Our extensive experience with this type of combination will enable us quickly to meet the needs of the customers and communities that Meritor serves here in Florida."
 The acquisition of the Winter Haven-based company will also strengthen First Union's presence in Tampa, Clearwater, Clermont, Sarasota, Longwood and New Smyrna Beach, and gives First Union entry into Kissimmee.
 Because of the in-market nature of the transaction, First Union expects to achieve significant cost savings when systems conversions are complete in July 1993. Since many Meritor offices are located in neighborhoods First Union already serves, the combination is expected to result in savings of up to 40 percent of Meritor's current noninterest expense.
 First Union is currently evaluating the feasibility of retaining the
Washington-area offices, which have $320 million in deposits. By including these offices in the acquisition, First Union will be able to take advantage of a $5.5 million tax benefit.
 First Union Corporation (NYSE: FTU) is the nation's 11th largest bank holding company based on assets of $47.7 billion as of June 30, 1992. First Union National Bank of Florida, with headquarters in Jacksonville, reported assets of $27.2 billion as of June 30, 1992, and operates 551 offices statewide.
 Reasons for the Acquisition
 (1) First Union will have first, second, or third
 deposit share ranking in seven of ten Florida
 counties affected by the acquisition. First
 Union will rank first in Brevard, Polk and Volusia
 counties.
 (2) The acquisition is expected to involve no
 dilution during the first 12 months and to make
 a positive financial contribution to First
 Union's earnings per share thereafter.
 (3) The acquisition offers potential cost savings
 of up to 40 percent of Meritor's pre-acquisition
 annual noninterest expense.
 MERITOR SAVINGS Agreement
 Accounting Treatment: Purchase accounting
 Total Price: Approximately $46 million
 Method of Payment: Cash
 Price/Book Value: Approximately 73 percent of June 30,
 1992 book equity
 Estimated Closing Date: Early 1993
 Estimated Date of Integration: June 30, 1993
 Combined Assets (First Union Corporation, South
 Carolina Federal, Decatur Federal, and Meritor
 Savings): $52.8 billion.
 Combined Assets in Florida: $28.5 billion
 Combined branches: Florida -- approximately 550; First Union
 Corporation -- approximately 1,000 (after Southeast Bank,
 South Carolina Federal, Decatur Federal and Meritor Savings are
 consolidated).
 Deposit Share Information:
 4-state region: Deposit share will increase to
 17.03 percent from 16.73 percent in First Union's
 primary 4-state region (NC, SC, FL and GA).
 Ranking will remain first place.
 Florida: Deposit share will increase to 20.59 from
 19.95 percent. Ranking remains a strong second place
 deposit share position in the state.
 Source: Bancpen Marketing Penetration Analysis for 4-state and
 Florida market share, banks only (3/31/92).
 Meritor Savings Statistics:
 Headquarters: Winter Haven, Florida in Polk County
 Major Markets: Polk, Brevard, Orange and Sarasota
 Counties
 Assets: $ 1.2 billion
 Loans:
 Commercial: $ 13 million
 Commercial Real Estate: $ 58 million
 Residential Mortgages: $695 million
 Consumer Loans: $ 39 million
 Total Loans: $895 million
 Deposits: $1.1 billion
 Equity: $63 million
 Branches: 29 in Central Florida Employees: 374
 15 in Washington, D.C. area
 Source: Meritor Savings, June 30, 1992
 -0- 9/18/92
 /CONTACT: (Investors) Barbara Massa, 704-374-2555, or Maggie Norris, 704-374-4353; (Media) George Owen, 800-669-5855 (office) or 704-358-3116 (home), all of First Union Corporation/
 (FTU MTOR) CO: First Union Corporation; Meritor Savings, FA ST: North Carolina, Florida IN: FIN SU: TNM


CM -- CH003 -- 1275 09/18/92 16:29 EDT
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Date:Sep 18, 1992
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