PNC BANK TO ACQUIRE FIRST EASTERN CORP.
PITTSBURGH, July 27 /PRNewswire/ -- PNC Bank Corp. (NYSE: PNC) and First Eastern Corp. (NASDAQ: FEBC) today announced that they have signed a definitive agreement for PNC Bank to acquire First Eastern, a $2.1-billion bank holding company headquartered in Wilkes-Barre, Pa. Under the terms of the agreement, PNC Bank will pay $26.50 per share in cash if the transaction closes before year-end, or $27 if the transaction takes place after Dec. 31, 1993. The indicated value of the transaction is approximately $330 million. First Eastern has granted PNC Bank an option to purchase additional unissued shares of its common stock. Thomas H. O'Brien, PNC Bank chairman and chief executive officer, said, "The acquisition of First Eastern will give PNC Bank the leading market share in northeastern Pennsylvania. Rapidly improving asset quality at First Eastern and the in-market nature of this acquisition should result in a positive earnings per share impact for PNC Bank shareholders in 1994." On completion, First Eastern's operations in nine northeastern Pennsylvania counties would become part of PNC Bank, National Association, and operate as part of its Northeast PA market. Frederick A. Deal, president and chief executive officer of First Eastern, said, "The opportunity to join a strong, well-capitalized institution like PNC Bank will enhance our ability to compete in our marketplace and allow us to offer customers a broader array of high- quality products and services. We look forward to becoming a part of PNC Bank." The transaction is subject to approval by various regulatory agencies and First Eastern shareholders. It is expected to close in the first half of 1994. First Eastern Corp. is a bank holding company headquartered in Wilkes-Barre. First Eastern serves businesses and individuals in northeastern Pennsylvania through 51 branch sales offices in a nine-county region. The offices are primarily concentrated in Luzerne, Lackawanna, Monroe and Columbia counties. PNC Bank is one of the largest banking organizations in the United States, with $53.8 billion in assets at June 30, 1993, and more than 550 community banking offices throughout Pennsylvania, Delaware, Ohio, Kentucky and Indiana. PNC Bank's major lines of business include retail banking; corporate banking; investment management and trust; and investment banking. PNC Bank Corp. operates as PNC Bank in most of its Pennsylvania markets and in Kentucky and Ohio. Its CCNB Bank, Hershey Bank and First Bank and Trust in southcentral Pennsylvania and Bank of Delaware in Delaware will change names to PNC Bank by the first quarter of 1994. PNC Bank Corp. is headquartered in Pittsburgh. -0- 7/27/93 /CONTACT: media, Jonathan Williams, 412-762-4550, or home, 412-257-3257, or investors, William H. Callihan, 412-762-8257, both of PNC Bank; or Karen Shonk of First Eastern, 717-826-4777/ (PNC FEBC)
CO: PNC Bank Corp.; First Eastern Corp. ST: Pennsylvania IN: FIN SU: TNM
KC -- PG003 -- 6069 07/27/93 08:59 EDT
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|Date:||Jul 27, 1993|
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