Fulton Financial Corp. in Lancaster, Pa., said it would acquire Keystone Heritage Group Inc. in nearby Lebanon, Pa., for $210 million in stock.

The deal is expected to close in the first quarter of 1998. It would give $4.2 billion-asset Fulton Financial an additional 24 branches and a unit that distributes insurance products. Keystone has $610 million of assets. Its sole operating subsidiary is Lebanon Valley National Bank.

"This acquisition solidifies our market position," said Rufus A. Fulton, president and chief executive officer, in a statement.

Fulton is Pennsylvania's fifth-largest bank holding company, with 117 branches run by 10 affiliate banks in Pennsylvania, New Jersey, and Delaware.

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