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CHARTER FEDERAL ANNOUNCES RIGHTS OFFERING

 BRISTOL, Va., June 4 /PRNewswire/ -- Charter federal (NASDAQ: CHFD) announced today that it had filed a preliminary offering circular with the Office of Thrift Supervision ("OTS") for an offering of common stock pursuant, in part, to a distribution of subscription rights to its shareholders.
 Under the proposed terms of the offering, Charter federal will issue an estimated 5.95 subscription rights per share of common stock to each common shareholder as of a record date to be determined shortly before the offering begins. Each subscription right will entitle the holder to purchase one share of Charter Federal common stock at a price currently anticipated to be $2.00. Subscription rights allocated to each shareholder will be transferable, and each shareholder will have the opportunity to subscribe for additional shares of common stock, subject to certain limitations. Based on the 3,656,397 shares of common stock outstanding on June 1, 1993, it is anticipated that rights to purchase 21,755,562 shares of common stock will be issued in the rights offering.
 In connection with the rights offering, and in order to ensure the sale of the minimum amount of common stock required to consummate the offering, Charter Federal expects to enter into standby purchase arrangements with high net worth individuals and institutional investors providing for the purchase of unsubscribed shares at the subscription price. In addition, Charter Federal expects to offer to all employees the opportunity to subscribe for shares of common stock at the subscription price. Consummation of the offering is conditioned upon the sale of a minimum of $43.5 million of common stock.
 An offering circular relating to these securities has been filed with the OTS but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the offering circular becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. A copy of the offering circular, when available following clearance by the OTS, may be obtained by contacting Cecil R. McCullar, president and chief executive officer, Charter Federal Savings Bank, 110 Piedmont Avenue, Bristol, Va. 24203.
 Charter Federal, which began operation in 1920, is a federally- chartered, stock savings bank headquartered in Bristol, Va. with 26 offices throughout Southwest Virginia and Northeast Tennessee. At March 31, 1993, Charter Federal had $692 million in assets and $592 million in deposits.
 -0- 6/4/93
 /CONTACT: Cecil R. McCullar, President and Chief Executive Officer, Charter Federal Savings Bank, 703-645-5220/
 (CHFD)


CO: Charter Federal Savings Bank ST: Virginia, Tennessee IN: FIN SU: OFR

SB -- CH002 -- 5371 06/04/93 10:32 EDT
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Publication:PR Newswire
Date:Jun 4, 1993
Words:479
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