First Citizens Bank to Acquire Additional First Union Branches

October 3, 2000

RALEIGH, N.C. - First Citizens Bank has reached an agreement with First Union National Bank to acquire its branches in Staunton and Verona, Va.

The transition of accounts at the branches to First Citizens is expected to take place in the first quarter of 2001. "These two markets are excellent additions to First Citizens' lineup of communities in Virginia that need and appreciate the customer-first brand of banking that we offer," said Jim Hyler, vice chairman of First Citizens. "We're looking forward to the opportunity to meet the financial needs of these communities for many years."

The branches are at 239 N. Central Ave., Staunton, Va., and 5005 Lee Highway, Verona, Va. When the transition is complete, First Citizens will have grown to nearly 50 branches in Virginia since first entering the state in 1995.

Under the agreement, First Citizens will purchase the loans and assume the deposits of First Union's branches in Staunton and Verona. The two branches have $50 million in deposits. First Citizens plans to retain all employees of the acquired branches. The transactions are subject to regulatory approval. Hyler said customers will be notified of the acquisition by letter.

The Staunton and Verona acquisition is in addition to the one announced Sept. 11 involving five First Union branches in North Carolina and one in Virginia. That transaction, which is expected to be finalized in the fourth quarter, includes branches in Goldsboro, Madison, Murphy, New Bern and Sanford, all in North Carolina, and in 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 www.firstcitizens.com.

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