FIRST                           
         CHARTER                           CAROLINA STATE
     CORPORATION                           BANK
                                    
                                    
                          FOR IMMEDIATE RELEASE
                              June 30, 1997


FROM:     First Charter Corporation             
          22 Union Street, North    
          Concord, North Carolina  28026-0228

CONTACT:  Lawrence M. Kimbrough
          President and Chief Executive Officer
          (704) 786-3300 Ext. 292

FROM:     Carolina State Bank
          316 South Lafayette Street
          Shelby, North Carolina 28150-5352

CONTACT:  John J. Godbold, Jr.
          President and Chief Executive Officer
          (704) 480-4444




      FIRST CHARTER CORPORATION AND CAROLINA STATE BANK 
           ANNOUNCE PRELIMINARY PLANS TO COMBINE

    First Charter Corporation (FCTR) and Carolina State Bank
announced today the signing of a letter of intent for the
acquisition of Carolina State Bank by First Charter Corporation. 
The transaction would create a community banking company serving
the Greater Charlotte Metropolitan Area of North Carolina with
combined assets of approximately $700 million.

     In the transaction, Carolina State Bank shareholders would
receive 1.023 shares of First Charter Common Stock for each share
of Carolina State Bank Common Stock.  Based on a First Charter
stock price of $21.75 per share on June 27, 1997, the total
transaction value equals $38.3 million of $22.25 for each share
of Carolina State Bank Common Stock.  The transaction will be
structured to qualify as a tax-free reorganization and is
anticipated to be accounted for as a pooling of interests.  In
addition, in connection with the signing of the letter of intent,
Carolina State Bank has granted First Charter the option to
purchase up to 19.9 percent of its outstanding common stock,
under certain circumstances.  Orr Management Company of Winston-
Salem advised Carolina State Bank in the negotiations.

Consummation of the transaction is subject to certain conditions,
including negotiation of a definitive agreement containing
customary terms and conditions of closing and receipt of
regulatory and shareholder approvals.  First Charter Corporation
Common Stock is traded on the NASDAQ National Market under the
quotation symbol "FCTR."