INDEPENDENT AUDITORS' CONSENT



The Board of Directors
1st State Bancorp, Inc.

We consent to  incorporation  by reference in the  registration  statement  (No.
333-38772) on Form S-8 of 1st State  Bancorp,  Inc. of our report dated November
6, 2000, relating to the consolidated balance sheets of 1st State Bancorp,  Inc.
and subsidiary as of September 30, 2000 and 1999,  and the related  consolidated
statements of income,  stockholders'  equity and comprehensive  income, and cash
flows for each of the years in the three-year  period ended  September 30, 2000,
which report appears in the September 30, 2000 annual report on Form 10-K of 1st
State Bancorp, Inc.

                                             /s/  KPMG LLP

Raleigh, North Carolina
December 27, 2000