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KEYCORP TO ACQUIRE JACKSON COUNTY FEDERAL BANK (!)

 ALBANY, N.Y., June 23 /PRNewswire/ -- Victor J. Riley, Jr., the chairman, president and chief executive officer of KeyCorp (NYSE: KEY), and Carl D. Gustavson, the chairman of Jackson County Federal Bank (JCF), announced yesterday that a definitive agreement had been entered into for KeyCorp to acquire JCF. Headquartered in Medford, Oregon, JCF has $350 million of assets and $317 million of deposits in eight branches and three loan production offices in southern Oregon. Upon the merger, JCF would be made part of the $1.8 billion Key Bank of Oregon.
 In the merger, JCF common stockholders and preferred stockholders will receive KeyCorp common stock based on a value of $15.00 for each outstanding share of JCF common or preferred stock. The indicated total value of the transaction is $49.1 million. The number of KeyCorp shares to be issued in the transaction will be determined in a twenty trading day pricing period ending on the fifth day prior to the merger date, and varies based on KeyCorp's average closing stock price in New York Stock Exchange composite trading during that period. However, the value of each KeyCorp share so determined will be limited to no more than $42.50 and no less than $34.50.
 JCF has issued options to KeyCorp to acquire up to 19.9 percent of JCF's common stock at a price of $13.00 per share. The options would be exercisable by KeyCorp only if certain conditions are met.
 Consummation of the transaction is conditioned on, among other things, the approval of JCF's common and preferred shareholders and approval of all applicable regulatory authorities. While no assurance can be given that the transaction will be consummated or, if consummated, concerning the time frame under which it would be completed, KeyCorp's management anticipates that the closing will occur on or before Dec. 31, 1993.
 "This represents a meaningful extension of our marketplace in Oregon," Riley commented. "JCF's fine franchise serves areas not currently served by Key Bank of Oregon." Said Gustavson, "We look forward to becoming part of 'America's neighborhood bank'. With the backing of KeyCorp's $32 billion of resources, our customers will enjoy an increased array of products and services."
 KeyCorp (NYSE: KEY) with assets of over $30 billion is a multi- regional bank holding company headquartered in Albany, N.Y. 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- 6/23/93
 /CONTACT: Lee Irving, treasurer, 518-486-8579 or 518-479-3273, after hours, Don Kauth, investor relations, 518-487-4491 or 518-583-1608, after hours, or Susan Peterson, media relations, 518-486-8258 or 518-587-3008, after hours, all of KeyCorp; or John T. Baker, president and CEO, Jackson County Federal Bank, 503-734-2640, or 503-770-5892, after hours/
 (KEY)


CO: KeyCorp; Jackson County Federal Bank ST: New York, Oregon IN: FIN SU: TNM

BM -- CL002 -- 4860 06/23/93 08:33 EDT
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Publication:PR Newswire
Date:Jun 23, 1993
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