CONCORD, N.C. -- CK Federal Savings Bank of Concord said it has signed a letter of intent to be acquired by SouthTrust Corp., a rapidly expanding holding company based in Birmingham, Ala.

SouthTrust agreed to exchange 0.95 shares of its common stock for each of the 1,349,036 outstanding shares of CK Federal, which has $435 million in assets.

Based on SouthTrust's share price of $25.375 early Friday, which was up 12.5 cents from Thursday, the indicated value of the acquisition is $32.5 million, or $24.11 a share, equal to 1.04 times CK Federal's book value on March 31.

CK Federal's stock rose early Friday by $2.875 a share, to $21.25.

SouthTrust, which has $1.04 billion in assets, owns 41 banks in six states including SouthTrust Bank of North Carolina, with headquarters in Raleigh and offices in Cary and Charlotte.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.