American Federal announces 43% dividend increase and share buyback.

GREENVILLE, S.C.--(BUSINESS WIRE)--March 21, 1996--American Federal Bank, FSB (Nasdaq:AMFB) today announced that the Board of Directors has declared a 43% increase in the regular quarterly dividend, from seven cents to ten cents per share.

Today's action marks the second increase since the Bank began paying dividends in August 1993. The dividend is payable May 10, 1996 to shareholders of record on April 27, 1996.

Roy Abercrombie, Chairman and Chief Executive Officer, said, "We have continued to achieve record earnings and the Board is committed to sharing that success with the stockholders."

In a related move, the Board of Directors approved a stock repurchase program of up to 5% of the common shares outstanding, to take place over the next twelve months. The repurchase will involve approximately 550,000 shares and will be effected from time to time in the open market or through privately negotiated transactions. The Bank currently has 10.9 million shares outstanding.

At December 31, 1995, American Federal reported total assets of $1.35 billion and stockholders' equity of $109.8 million. The Bank will remain above the regulatory threshold for a well-capitalized institution after the buyback.

American Federal operates 41 branch offices covering twelve counties in northwestern South Carolina, and 16 branch offices of a consumer finance company, Finance South.

CONTACT: American Federal Bank

Mike Trimble, 864/255-7595