EXHIBIT 99.1



                                       FOR MORE INFORMATION CALL:

                                       PALFED, Inc.
                                       107 Chesterfield St. S
                                       Aiken, SC 29801

                                       Howard M. Hickey, Jr.
                                       EVP and General Counsel
                                       (803) 642-1437
                                       September 23, 1997

                                       FOR IMMEDIATE RELEASE


                PALFED, INC. TO MERGE WITH REGIONS FINCIAL

AIKEN, South Carolina, September 23, 1997 -- PALFED, Inc. (NASDAQ:PALM) 
("PALFED") and Regions Financial Corporation ("Regions") have signed a 
definitive merger agreement that provides for the merger of PALFED into 
Regions. Under the terms of the agreement, Regions will exchange 0.70 of a 
share of its common stock for each share of PALFED common stock. Based on 
Regions' closing stock price of $39-1/8 on September 22, 1997, the 
transaction would represent an exchange value of approximately $27-3/8 for 
each share of PALFED common stock. The agreement is subject to PALFED 
shareholder approval, appropriate regulatory approvals and other customary 
conditions. The transaction is expected to be consummated during the first 
quarter of 1998.

John C. Troutman, President and Chief Executive Officer of PALFED, said, "We
are excited about becoming a significant part of the outstanding Regions 
organization. We could not have picked a better partner to continue the major
role we have played in South Carolina banking over the past 46 years."

PALFED, Inc. is a South Carolina corporation whose principal subsidiary, 
Palmetto Federal Savings Bank of South Carolina, operates twenty-two banking 
and seven mortgage lending offices in South Carolina and one mortgage lending 
office in Georgia. At June 30, 1997 PALFED had $664.9 million in assets and 
deposits of $562.2 million. PALFED's common stock is traded in the Nasdaq 
National Market System under the symbol "PALM."