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CK FEDERAL, SOUTHTRUST SIGN LETTER OF INTENT

 CK FEDERAL, SOUTHTRUST SIGN LETTER OF INTENT
 CONCORD, N.C., June 18 /PRNewswire/ -- Officials with CK Federal


Savings Bank (NASDAQ-NMS: CKSB) of Concord and SouthTrust Corporation (NASDAQ-NMS: SOTR) of Birmingham, Alabama, have signed a letter of intent for the purchase of CK Federal By SouthTrust, announced Gabe Stewart, Chairman, President and CEO of CK Federal. Under the terms of the letter of intent, SouthTrust would exchange 0.95 shares of SouthTrust common stock for each of the 1,349,036 outstanding shares of CK Federal. Based on the closing sales price of SouthTrust common stock on June 15, 1992, of $25.50, the transaction has an indicated value of approximately $32.7 million or $24.23 per share of CK Federal stock. This represents 1.04 times the tangible book value of CK Federal stock at March 31, 1992.
 CK Federal has also granted SouthTrust an option to purchase 280,000 shares of CK Federal common stock exercisable under certain specified conditions at $23.99 per share.
 The letter of intent is subject to the negotiation of a definitive agreement to be approved by the boards of directors of the two companies, and to receipt of required regulatory and shareholder approvals.
 "We couldn't be more pleased to announce our association with SouthTrust," Stewart said. "The conversion of CK into a bank will give our customers a number of additional products and services. SouthTrust is a solid compnay, oriented toward quality customer service. They have a strong balance sheet, and they are committed to their employees. Most importantly, SouthTrust is dedicated to the community bank concept. After the purchase is completed, we'll still operate with our local board of directors and the CK staff our customers know and depend on. The hometown focus is important to SouthTrust, and I think our CK customers will really appreciate that approach. We are looking forward to being on the team that further promotes SouthTrust in Charlotte and North Carolina."
 SouthTrust Corporation, with headquarters in Birmingham, Alabama, reported assets of $10.4 billion on March 31, 1992. SouthTrust operates 41 banks with more than 340 offices in the six-state area including Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee. In North Carolina, SouthTrust currently operates SouthTrust Bank of North Carolina with headquarters in Raleigh and offices in Cary and Charlotte.
 Wallace D. Malone, Jr., Chairman and CEO of SouthTrust Corporation, said: "We're delighted to have reached this agreement with CK Federal. They have a good, solid operation in North Carolina, and their addition to the SouthTrust system will certainly strengthen our North Carolina presence. We look forward to working with the customers and staff of CK Federal in the future."
 CK Federal Savings Bank, chartered in 1888, operates nine offices with approximately $435 million in assets. With headquarters in Concord, CK Federal's primary market includes the area surrounding Charlotte, Kannapolis, Concord and Gastonia. The bank also operates offices in Mooresville, Spindale, Fallston and Brevard.
 -0- 6/18/92
 /CONTACT: Gabe S. Stewart, CK Federal Savings Bank, 704-783-0303, or Alice Hunt, SouthTrust Corporation, 205-254-6812/
 (CKSB SOTR) CO: CK Federal Savings Bank; SouthTrust Corporation ST: North Carolina, Alabama IN: FIN SU: TNM


DF -- CH008 -- 1701 06/18/92 17:42 EDT
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Date:Jun 18, 1992
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