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SOUTHTRUST CORPORATION AND CK BANK ANNOUNCE DEFINITIVE MERGER AGREEMENT

SOUTHTRUST CORPORATION AND CK BANK ANNOUNCE DEFINITIVE MERGER AGREEMENT
 CONCORD, N.C., Aug. 28 /PRNewswire/ -- Wallace D. Malone, Jr., Chairman and Chief Executive Officer of SouthTrust Corporation (NASDAQ-NMS: SOTR), and Gabe S. Stewart, Chairman, President and Chief Executive Officer of CK Federal Savings Bank (NASDAQ-NMS: CKSB), jointly announced today the execution of an Agreement and Plan of Merger providing for the combination of CK Bank and SouthTrust Bank, F.S.B., a subsidiary of SouthTrust.
 Under the terms of the Agreement, SouthTrust will exchange 0.95 shares of SouthTrust common stock for each of the 1,349,036 outstanding shares of CK Bank common stock, unless SouthTrust's average closing price for the ten trading days prior to the closing date is less than $20 per share.
 Based on the closing sales price of SouthTrust's common stock on August 27, 1992, of $24 3/8, the transaction has an indicated value of approximately $31.2
million, or $23.16 per share of CK Bank stock. CK


Bank common stock is traded over-the-counter and is quoted on the NASDAQ under the symbol "CKSB." SouthTrust common stock is traded over-the- counter and is quoted on the NASDAQ National Market System under the symbol "SOTR." On Aug. 27, 1992 the closing price of CK Bank common stock was $21 1/4.
 SouthTrust and CK Bank entered into a letter of intent on June 18, 1992, providing for the negotiation of an agreement between the parties. At that time, CK Bank granted to SouthTrust an option to purchase 280,000 shares of CK (subject to certain adjustments as provided in the option agreement), exercisable under specified conditions, at $23.99 per share.
 The proposed transaction is subject, among other matters, to the approval of CK Bank's shareholders, the satisfaction of certain other conditions and the approvals of all applicable regulatory authorities.
 President Stewart said, "We believe that this transaction is a positive one for both organizations with benefits for CK Bank's shareholders, customers and employees. Our shareholders will benefit from the increased marketability of their stockholdings, our customers will be afforded access to a wider range of banking products and services, and our employees will obtain the opportunities associated with working for a larger organization. We are pleased to be associated with an institution of SouthTrust's caliber."
 CK Bank reported assets of $430 million and deposits of $388 million on June 30, 1992. It serves the communities of Concord, Kannapolis, Mooresville, Gastonia, Fallston, Spindale and Brevard from nine offices.
 SouthTrust is a multibank, holding company with headquarters in Birmingham, Alabama. It currently owns forty banks and eight bank- related affiliates operating in Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee. It offers banking and related services from more than three hundred offices located throughout the six-state area. It also operates banks in Raleigh and Charlotte, N.C. As of June 30, 1992, SouthTrust's consolidated total assets were reported at $11.3 billion.
 -0- 8/28/92
 /CONTACT: Gabe S. Stewart, Chairman of the Board, President and CEO, CK Federal Savings Bank, 704-788-3193, or Jean W. Colquett, Vice- President, SouthTrust Corporation, 205-254-5523/
 (CKSB SOTR) CO: CK Federal Savings Bank ST: North Carolina IN: FIN SU: TNM


JZ -- CH006 -- 4404 08/28/92 13:02 EDT
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Publication:PR Newswire
Date:Aug 28, 1992
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