First Union in $25 million deal for Home Federal in D.C.

First Union Corp. said Tuesday that it had agreed to acquire Home Federal Savings Bank, a $232 million-asset thrift in Washington, D.C.

The all-stock, pooling-of-interest deal, worth about $25 million at First Union's Friday closing price of $46.87 a share, is expected to close in the fourth quarter, subject to approval by regultors and Home Federal shareholders.

First Union said the transaction would strengthen its presence in the Washington area, where Home Federal has six branches and $204 million of deposits.

First Union, which is based in Charlotte, N.C., has 120 branches and $4.5 billion in current deposits in metro Washington.

It entered Washington in 1993 through the purchase of subsidiaries of American Bankshares Inc.

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