First Citizens Bank to Acquire First Union Branches

September 11, 2000

RALEIGH, N.C. - First Citizens Bank has reached an agreement with First Union National Bank to acquire six of its branches in North Carolina and Virginia.

The companies signed an agreement in which First Citizens will purchase the loans and assume the deposits of First Union's branches in Goldsboro, Madison, Murphy, New Bern and Sanford, all in North Carolina, and in Front Royal, Va. The transition of those accounts to First Citizens is expected to take place in the fourth quarter.

The North Carolina branches are in markets where First Citizens already has offices. Front Royal, Va., is a new market for the bank.

"The acquisition allows First Citizens to strengthen its presence in these North Carolina communities and to continue our expansion in Virginia," said Jim Hyler, Vice Chairman of First Citizens. "We have an excellent opportunity here to bring our customer service-oriented brand of banking to a new group of customers."

First Citizens will offer each of the employees in the acquired branches - more than 40 in all - opportunities to stay with bank.

The transaction is subject to regulatory approval. Hyler said customers will be notified of the acquisition by letter.

The branches being acquired by First Citizens are:

• 203 N. William St., Goldsboro, N.C.
• 109 S. Franklin St., Madison, N.C.
• 85 Hiwassee St., Murphy, N.C.
• 155 S. Steele St., Sanford, N.C.
• 3120 Dr. M. L. King Jr. Blvd., New Bern, N.C.
• 305-7 E. Main St., Front Royal, Va.

First Citizens, which has been in business for more than 100 years, focuses on serving individuals and small and medium-size businesses with a full range of financial products. A subsidiary of First Citizens BancShares (Nasdaq: FCNCA), First Citizens has 366 branches in more than 200 communities in North Carolina, Virginia and West Virginia. Headquartered in Raleigh, N.C., the bank has approximately $9.98 billion in assets. The company's internet address is firstcitizens.com.

For more information, contact:
Barbara Thompson
(919) 716-2716
First Citizens Bank