SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
INFORMATION STATEMENT PURSUANT TO RULES 13D-1 AND 13D-2
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. __)*
HFNC FINANCIAL CORP.
(Name of Issuer)
Common Stock, Par Value $.01 Per Share
(Title of Class of Securities)
404177 10 7
(CUSIP Number)
Page 1 of 5 Pages
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CUSIP NO. 404177 10 7 Page 2 of 5 Pages
1. NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Home Federal Savings and Loan Association
Employee Stock Ownership Plan
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [ ]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
North Carolina
5. NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
SOLE VOTING POWER
833,948
6. NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
SHARED VOTING POWER
66,052
7. NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
SOLE DISPOSITIVE POWER
833,948
8. NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
SHARED DISPOSITIVE POWER
66,052
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
900,000
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES [ ]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
5.2%
12. TYPE OF REPORTING PERSON
EP
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CUSIP NO. 404177 10 7 Page 3 of 5 Pages
ITEM 1(A) NAME OF ISSUER:
HFNC Financial Corp.
ITEM 1(B) ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
139 South Tryon Street
Charlotte, North Carolina 28202
ITEM 2(A) NAME OF PERSON FILING:
Home Federal Savings and Loan Association Employee Stock
Ownership Plan.
ITEM 2(B) ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE:
HFNC Financial Corp.
139 South Tryon Street
Charlotte, North Carolina 28202
ITEM 2(C) CITIZENSHIP:
North Carolina
ITEM 2(D) TITLE OF CLASS OF SECURITIES:
Common Stock, par value $.01 per share
ITEM 2(E) CUSIP NUMBER:
404177 10 7
ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO RULES 13D-1(B), OR 13D-2(B),
CHECK WHETHER THE PERSON FILING IS A:
(f) [ ] Employee Benefit Plan, Pension Fund which is subject to
the provisions of the Employee Retirement Income
Security Act of 1974.
ITEM 4. OWNERSHIP.
(a) Amount beneficially owned:
900,000
(b) Percent of class: 5.2%
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CUSIP NO. 404177 10 7 Page 4 pf 5 Pages
(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote 833,948
(ii) Shared power to vote or to direct the vote 66,052
(iii)Sole power to dispose or to direct the
disposition of 833,948
(iv) Shared power to dispose or to direct the
disposition of 66,052
The Home Federal Savings and Loan Association Employee Stock
Ownership Plan Trust ("Trust") was established pursuant to the
Home Federal Savings and Loan Association Employee Stock Ownership
Plan ("ESOP"). Under the terms of the ESOP, the Trustees must
vote the allocated shares held in the ESOP in accordance with the
instructions of the participating employees. Unallocated shares
held in the ESOP will be voted by the ESOP Trustees in the same
proportion for and against proposals to stockholders as the ESOP
participants and beneficiaries actually vote shares of Common
Stock allocated to their individual accounts. Any allocated
shares which either abstain on the proposal or are not voted will
be disregarded in determining the percentage of stock voted for
and against each proposal by the participants and beneficiaries.
As of December 31, 1996, 66,052 shares had been allocated to
participants' accounts and 833,948 shares were unallocated.
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.
Not applicable since the reporting entity owns more than 5% of
the class.
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.
Participants in the ESOP are entitled to receive dividends on,
and the proceeds from, the sale of the shares allocated to their
accounts. The ESOP does not own more than 5% on behalf of
another person.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH
ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING
COMPANY.
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.
Not applicable since the reporting entity is not a member of a
group.
ITEM 9. NOTICE OF DISSOLUTION OF GROUP.
Not applicable since the reporting entity is not a member of a
group.
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CUSIP NO. 404177 10 7 Page 5 of 5 Pages
ITEM 10. CERTIFICATION.
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired in the
ordinary course of business and were not acquired for the purpose
of and do not have the effect of changing or influencing the
control of the issuer of such securities and were not acquired in
connection with or as a participant in any transaction having
such purpose or effect.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete
and correct.
HOME FEDERAL SAVINGS AND LOAN ASSOCIATION
EMPLOYEE STOCK OWNERSHIP PLAN TRUST
February 7, 1997 By: /s/ H. JOE KING, JR.
--------------------
H. Joe King, Jr., Trustee
February 7, 1997 By: /s/ RAY W. BRADLEY, JR.
-----------------------
Ray W. Bradley, Jr., Trustee
February 7, 1997 By: /s/ RICHARD S. BROWN
--------------------
Richard S. Brown, Trustee
