FOR IMMEDIATE RELEASE                                          AT
TUESDAY, MARCH 18, 1997                            (202) 616-2771
                                               TDD (202) 514-1888


 FIRST VIRGINIA AND PREMIER AGREE TO SELL OFF THREE VIRGINIA BANK
BRANCHES WORTH $44.3 MILLION TO GAIN JUSTICE DEPARTMENT APPROVAL  


      Divestitures will Preserve Competition for Loans and  
         other Banking Services in Southwestern Virginia


     WASHINGTON, D.C. --  The Department of Justice reached an
agreement today with First Virginia Banks Inc. and Premier
Bankshares Corp. that will allow their proposed merger to go
forward so long as they sell three branch offices in southwestern
Virginia.  By selling the offices--with total deposits of about
$44.3 million--the companies will resolve antitrust concerns
resulting from a joint investigation by the Department's
Antitrust Division and the Office of the Virginia Attorney
General.

     The banks agreed to divest two Premier branch offices and
one First Virginia branch office in order to resolve the
Antitrust Division's concerns that the merger would lessen
competition for banking services in certain areas of southwestern
Virginia.  The First Virginia branch to be sold is located in the
town of Clintwood in Dickenson County.  One of the Premier
branches to be divested is located in Max Meadows in Wythe County
and the other is located in Pound in Wise County. 

     "The First Virginia and Premier merger presented a
significant risk to consumers in southwestern Virginia who rely
on competition to ensure they can get loans at the lowest
possible interest rates and better services," said Joel I. Klein,
Acting Assistant Attorney General in charge of the Department's
Antitrust Division.  "These divestitures will preserve
competition for loans and other banking services provided to
individuals and small businesses."  

     Klein added that the agreement also exemplifies the close
cooperation between federal and state antitrust enforcement
agencies which this administration has emphasized.

     The Department said it will advise the Federal Reserve Board
that, subject to divestiture of the branch offices and associated
loans and deposits, the Division will not challenge the merger. 

     The banks also agreed that they would not take steps to
preclude other financial institutions from leasing or purchasing
any bank branches that they may close due to consolidation. 
Subject to regulatory approvals, the three branches and
associated loans and deposits that First Virginia and Premier
will divest will be sold to a competitively suitable buyer.   

     First Virginia is based in Falls Church, Virginia, and has
358 offices with about $7 billion in deposits and $8.2 billion in
total assets.
  
     Premier is based in Bluefield, Virginia, and has 36 offices
with about $650 million in total deposits and more than $744
million in total assets. 
      
     The proposed merger of First Virginia and Premier is subject
to the approval of the Board of Governors of the Federal Reserve
System.  
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