Exhibit 99.1

                SOVEREIGN BANCORP - News Release

November 26, 1996


                     SOVEREIGN & FIRST STATE
               MERGER TO CLOSE FIRST QUARTER 1997
                     EXCHANGE RATIO LOWERED

          WYOMISSING, PA.....Sovereign Bancorp, Inc.
("Sovereign") (NASDAQ/NMS:SVRN), parent company of Sovereign
Bank, and First State Financial Services ("First State")
(NASDAQ/NMS:FSFI), parent company of First DeWitt Bank, jointly
announced today the signing of an amendment (the "Amendment") to
their previously executed Definitive Agreement dated June 24,
1996 under which Sovereign would acquire First State.  The
Amendment follows completion of Sovereign's detailed review of
First State's asset quality, and provides for a price adjustment
in exchange for Sovereign's agreement to eliminate certain
termination rights in the Definitive Agreement.

          Under the terms of the Amendment, First State
shareholders would receive the greater of $14.75 in Sovereign
common stock or 1.225 shares of Sovereign common stock for each
outstanding share of First State.  Previously, the exchange ratio
was fixed at 1.29 shares if Sovereign's stock price was greater
than $11.45.  First State shareholders retain the right to
terminate the Definitive Agreement if the average price of
Sovereign is below $8.00 per share.  The Amendment also
eliminates certain termination rights previously held by
Sovereign which were specific as to the asset quality of First
State.

          Jay S. Sidhu, Sovereign's President and Chief Executive
Officer stated, "The addition of First State customers will add
meaningful size to Sovereign's core businesses and First State's
existing franchise will fit very well with our current retail
network."

          "Our loyal customer base will be well-served by the
Sovereign franchise and we are looking forward to becoming a part
of this dynamic company," added Michael J. Quigley, III,
Chairman, President and Chief Executive Officer of First State. 
Quigley further commented, "We believe that the merger Amendment,
which was approved unanimously by First State's Board of
Directors, is in the best interests of First State's
shareholders."

          The merger is subject to approval of various regulatory
agencies and the shareholders of First State.  Sovereign
anticipates that the transaction will close early in the first
quarter of 1997 and will be accounted for as a pooling-of-
interests.

          Sovereign is a $9.4 billion holding company based in
Wyomissing, Pennsylvania and is the fourth largest financial
institution headquartered in Pennsylvania with 122 Community
Banking Offices operating in eastern Pennsylvania, northern
Delaware and New Jersey.  First State is a $660 million financial
institution headquartered in West Caldwell, New Jersey with 14
branch offices located in Essex and four other central and
northern New Jersey counties.  On Monday, November 25, 1996,
Sovereign's common stock closed at $13.625, its convertible
preferred stock closed at $70.375 and First State's common stock
closed at $14.75.

                             THE END