American Federal expects second quarter earnings to be on target.

GREENVILLE, S.C.--(BUSINESS WIRE)--July 13, 1995--American Federal Bank, FSB (Nasdaq: AMFB) speaking at a Wheat First Butcher Singer Investor Conference in Massachusetts today, American Federal's Chairman and Chief Executive Officer, Roy Abercrombie, stated that he expected the Bank's second quarter earnings to be in line with analysts' estimates. "Based on preliminary figures, we are comfortable with estimates between $.34 and $.36 per share," he said.

Abercrombie also discussed the Bank's recent business strategy. "With mortgage lending in a slower growth mode we have concentrated more heavily on the consumer lending segment. A six-state credit card promotion has added more than 28,000 accounts and $24 million in outstanding loans," he said. "The Bank's overall quality of assets continues to be very high."

American Federal completed its purchase of the first two branches in the Midlands Region of the state on April 7, adding $48.5 million in deposits. The acquisition of four additional branches with approximately $65 million is scheduled for completion in the third quarter.

American Federal has $1.3 billion in assets and 37 branch offices covering ten counties in the northwestern region of South Carolina. The Bank also owns Finance South, a consumer finance company with 16 branch offices.

CONTACT: American Federal Bank, FSB, Greenville

Mary Margaret Dragoun, 803/255-7253