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April 27, 1998
First Union Completes Merger with CoreStates, Creating Largest Bank on Eastern Seaboard
CHARLOTTE AND PHILADELPHIA - First Union Corporation (NYSE:FTU) and CoreStates Financial Corp (NYSE:CFL) have completed their previously announced merger, creating the largest banking network and the largest share of retail deposits on the Eastern Seaboard.
The combined company now has a network of nearly 3,400 ATMs from Connecticut to Florida and operates approximately 2,400 financial service centers, serving 16 million customers. New green and white First Union signs are scheduled to be installed at CoreStates branches in November, after computer operating systems are converted.
The sign changes will follow one of the quickest conversions of computer operating systems for a bank merger of this size. At that time, all First Union locations will share a common system that will enable customers to do their banking at any of its financial centers in 12 states and Washington, D.C.
As one of the first benefits of the merger to customers, First Union is opening up its ATM network, effective May 15, so that any First Union or previous CoreStates customer may use any of the 3,400 ATMs bearing signage from either company without paying a foreign ATM charge. CoreStates customers also will have access to an expanded array of retail banking products and services, and a full selection of capital markets offerings.
The combined company will also bring greater resources to the community. First Union is establishing a $100 million "First Union Regional Foundation" and is launching a five-year $14 billion plan for loans and services to low- and moderate-income neighborhoods in Pennsylvania, New Jersey and Delaware.
"Today marks not only the completion of the largest merger in our company's history, but the beginning of a partnership with our new employees, communities and 2 million new customers," said Edward E. Crutchfield, First Union chairman and chief executive officer. "We will deliver the kind of innovative financial solutions, leadership in technology and contributions in our communities that will set the standard for our industry."
CoreStates customers will have access to expanded financial services, including: - First Union's CAP Account, acknowledged by Smart Money magazine as one of the "oldest and best" bank-affiliated asset management accounts in the country, combines checking, money market and brokerage activity into one account for individuals, small businesses and nonprofit groups;
- A much broader range of mutual funds, The Evergreen Funds family of 76 mutual funds, and other insurance and investment products;
- Expanded products for small businesses, such as business insurance and VISA Business CheckCard; First Union is committed to being the No. 1 SBA lender in the region;
- A greater variety of sophisticated investment banking products and services for middle market and large corporate customers through First Union's expanding Capital Markets Group.
Customers may continue to use their existing CoreStates ATM, credit and debit cards until they receive new First Union cards in the mail. New First Union checks will be sent to customers on an individual basis when they exhaust their existing supplies of CoreStates checks and order new ones.
For First Union customers, the merger means expanded expertise in the international arena, with 29 representative offices and five branches abroad, and more than 1,400 correspondent bank account relationships in more than 130 countries.
The merger of First Union and CoreStates creates a company with combined assets of $220 billion and total stockholders' equity of $16 billion, as of March 31, 1998. The company operates full-service banking offices in Connecticut, Delaware, Florida, Georgia, Maryland, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia and Washington, D.C.
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