AMERICAN FEDERAL ANNOUNCES RECORD FIRST QUARTER EARNINGS.

GREENVILLE, S.C.--(BUSINESS WIRE)--April 15, 1997--American Federal Bank, FSB (Nasdaq: AMFB) today announced record first quarter earnings of $4.8 million compared with $4.4 million in the first quarter of 1996. Earnings per share for the quarter were $.42, an 11% increase from $.38 a year ago.

Net interest income increased $1.2 million or 9%, and the net interest margin was 4.55% versus 4.10% in the first quarter of 1996. Roy Abercrombie, Chairman and Chief Executive Officer, said, "The economic strength of our market continues to provide good opportunities for consumer and commercial loans, and the quality of credit remains outstanding."

Total loans grew $17 million, or an annualized 8%, during the three-months ended March 31, 1997. In April, American Federal sold the consumer finance portfolio and office operations of its subsidiary, Finance South. The $14 million portfolio represented approximately 1% of total assets. The proceeds will be directed into growth of banking operations.

At March 31, nonperforming assets were $5.8 million or .44% of total assets, a decrease of $559,000 from December 31, 1996. The allowance for loan losses grew to $11.2 million or 1.30% of total loans.

In February 1997, American Federal announced a definitive agreement has been signed to merge with CCB Financial Corporation, headquartered in Durham, North Carolina. Under the agreement, American Federal shareholders will receive .445 shares of CCB common stock in exchange for each share of American Federal common stock.

American Federal has $1.3 billion in assets and 40 branch officesmakers include J.C. Bradford & Co., Davenport & Co. of Virginia, Herzog, Heine, and Geduld, Inc., Interstate/Johnson Lane, Keefe, Bruyette & Woods, Inc., The Robinson Humphrey Co., Inc., Ryan Beck & Co., Inc., and Wheat First Butcher & Singer. -0-

                               At or for the three months ended
                                          March 31,
                                    1997            1996
KEY PERFORMANCE MEASURES:

Return on average assets            1.46%           1.30%
Return on average equity           16.46%          15.76%
Efficiency ratio                   53.56%          54.35%

PER SHARE DATA:

Book value                        $10.64          $ 9.80
Annual dividend                      .48             .40



                         CONSOLIDATED FINANCIAL DATA
                                (UNAUDITED)

OPERATIONS DATA                               Three Months
                                             Ended March 31,
                                          1997            1996
                               (In thousands, except per share data)

Net interest income                 $    14,141      $    12,946
Provision for loan losses                   888              722
Noninterest income                        4,057            3,425
Noninterest expenses                      9,677            8,949
Net income before income taxes            7,633            6,700
Income taxes                              2,863            2,345
Net income                          $     4,770            4,355

Earnings per share                  $       .42              .38

Weighted average shares
  Primary                                11,241           11,448
  Fully diluted                          11,256           11,448


SUMMARY OF FINANCIAL CONDITION         March 31,        December 31,


Securities available for sale       $   342,829          342,341

Deposits                           CONTACT:  American Federal Bank, Greenville

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