EXHIBIT 99.1

                             SOVEREIGN TO ACQUIRE
                           FIRST HOME BANCORP, INC.

         WYOMISSING, PA... Sovereign Bancorp, Inc. (ASovereign")
(NASDAQ/NMS:SVRN), parent company of Sovereign Bank, and First Home Bancorp,
Inc. (AFirst Home") (NASDAQ/:FSPG), parent company of First Home Savings Bank,
F.S.B., jointly announced today the execution of a definitive agreement
(AAgreement") for Sovereign to acquire First Home. First Home is a $525
million bank holding company headquartered in Pennsville, New Jersey whose
principal operating subsidiary operates ten community banking offices in
Salem, Gloucester and Camden counties, New Jersey, and New Castle County,
Delaware.
         The terms of the Agreement call for Sovereign to exchange $31.25 in
Sovereign common stock for each outstanding share of First Home common stock
or a total consideration of approximately $86 million in Sovereign common
stock. The price will stay fixed at $31.25 per First Home share if Sovereign's
average stock price remains between $18.00 and $22.00 per share (collectively,
the "Collars") during a 15-day period prior to the closing of the transaction.
If the average price of Sovereign's stock drops to $18.00 per share during the
pricing period prior to closing, First Home shareholders would receive a fixed
rate of 1.736 shares (the "Maximum Exchange Ratio") of Sovereign common stock
for each share of First Home common stock. Conversely, if Sovereign's average
stock price is $22.00 per share or higher, First Home shareholders would
receive a fixed rate of 1.420 shares (the "Minimum Exchange Ratio") of
Sovereign common stock for each share of First Home common stock. The pricing
reflects 238% of First Home's tangible book value and 17.9 times First Home's
trailing twelve-month earnings.

         First Home has the right to terminate the Agreement if the average
stock price of Sovereign during the 15-day pricing period falls below $13.50.





         The merger is subject to approval of various regulatory agencies and
First Home shareholders. Sovereign anticipates that the transaction will close
in the second quarter of 1998 and will be accounted for as a pooling of
interests. Sovereign also anticipates recording a one-time after tax
merger-related charge of $4 to $5 million at the closing of the transaction.

         First Home is an excellent deposit franchise with over $300 million
of low-cost customer deposits, and operates under a low-cost, low-risk
philosophy. In addition, First Home's conservative asset quality philosophy
mirrors Sovereign's focus on this critical success factor. First Home
maintains superior asset quality with a non-performing assets to total assets
ratio of only .77 and a ratio of loan loss reserves to non-performing loans of
122%.
         "The addition of this institution establishes a strong foundation in
southern New Jersey for Sovereign", stated Jay S. Sidhu, Sovereign's President
and Chief Executive Officer. AThis transaction expands Sovereign's New Jersey
franchise with the #2 market share in Salem County, NJ, and strengthens
Sovereign's Delaware retail operations." We expect the merger to be accretive
to Sovereign's earnings within two to three quarters following the closing of
the transaction", Sidhu continued.

         "This strategic alliance with Sovereign will provide our customers
the benefit of expanded products and services offered by a larger bank while
retaining the community bank culture", said Stephen D. Miller, Chairman and
CEO of First Home Bancorp.

         Pro forma for the First Home acquisition and other pending
transactions, Sovereign will have assets totaling $17.9 billion, deposits
totaling $9.4 billion, loans of $11.9 billion and operate approximately 190
community banking offices throughout the tri-state network.

         "The addition of this 10 branch network is a natural market extension
to Sovereign's existing branch system", commented Sovereign's Chairman,
Richard E. Mohn. "The First Home franchise provides Sovereign with a low risk
entry vehicle into southern New Jersey with a meaningful market share, and
strengthens our existing Delaware operations." Mohn added.





         In connection with the execution of the Agreement, First Home granted
a stock option to Sovereign to purchase, under certain conditions, up to 19.9%
of First Home's outstanding shares.

         Sovereign currently has pending the acquisition of ML Bancorp, Inc.
("ML Bancorp"), a $2.2 billion financial institution headquartered in
Villanova, Pennsylvania. This acquisition is expected to close late in the
first quarter of 1998, and will add 28 community banking offices plus
significant commercial and mortgage banking capabilities to Sovereign's
Pennsylvania franchise. Sovereign does not anticipate that this transaction
with First Home will alter either the proxy mailing date or closing date of
its acquisition of ML Bancorp.

         Sovereign also announced on December 15, 1997 its acquisition of
Carnegie Bancorp, Inc., a $423 million commercial bank holding company
headquartered in Princeton, New Jersey. Carnegie operates seven community
banking offices throughout New Jersey and one community banking office in
Pennsylvania. Sovereign expects the Carnegie transaction to close during the
second quarter of 1998.

           Sovereign is a pro forma $17.9 billion bank holding company with
approximately 190 community banking offices serving eastern Pennsylvania,
northern Delaware, and New Jersey. The third largest bank headquartered in
Pennsylvania, Sovereign's closing price of its common stock on Thursday,
December 18, 1997 was $20.125 per share and its preferred stock closed at
$125.125 per share.