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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): August 19, 1997
Scotland Bancorp, Inc.
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(Exact name of registrant as specified in its charter)
North Carolina 1-14266 56-1955133
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
505 South Main Street
Laurinburg, North Carolina 28352
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(Address of principal executive offices)
Registrant's telephone number, including area code: (910) 276-2703
N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events
On August 19, 1997, the Board of Directors of Scotland Bancorp, Inc.
declared a special one-time cash dividend of $6.00 for each share of the
Company's issued and outstanding common stock to be paid on September 29, 1997
to shareholders of record on September 15, 1997. The Company anticipates that
the dividend will be considered a return of capital and as such would be
reviewed as a reduction in the cost basis of each share of the Company's common
stock and would not be subject to income tax as a dividend to shareholders. A
copy of the press release announcing the special dividend is attached as Exhibit
(99) (a) hereto and incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(99)(a) Press Release.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SCOTLAND BANCORP, INC.
Date: August 20, 1997 By: /s/ William C. Fitzgerald, III
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William C. Fitzgerald, III, President
and Chief Executive Officer
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EXHIBIT INDEX
Exhibit No. Description
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(99)(a) Press Release dated
August 19, 1997
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SCOTLAND BANCORP, INC.
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PRESS RELEASE
August 19, 1997 Contact: William C. Fitzgerald, III
Chief Executive Officer
(910) 276-2703
Scotland Bancorp, Inc. (AMEX:SSB) the parent company of Scotland Savings Bank
announced today that its Board of Directors declared a special one-time cash
dividend of $6.00 per share to be paid on September 29, 1997 to shareholders of
record on September 15, 1997. The Company anticipates that the dividend will be
considered a return of capital and as such would be viewed as a reduction in the
cost basis of each share of the Company's common stock and would not be subject
to income tax as a regular dividend to shareholders.
Because of the magnitude of the dividend declared today in relation to Scotland
Bancorp's share price, the American Stock Exchange has determined that the
Company's shares of common stock will trade ex-dividend on September 30, 1997.
Shareholders are advised that if they sell their shares before the ex-dividend
date, they will transfer the right to receive the special dividend to the buyers
of the shares.
Speaking on behalf of the Board of Directors, William C. Fitzgerald, III,
President of Scotland Bancorp and Scotland Savings Bank, stated that the return
of excess capital to shareholders is consistent with the Board's commitment of
enhancing shareholder value.
Scotland Bancorp, Inc. had assets of approximately $70 million as of June 30,
1997. The special cash dividend will total $11,481,600 and will reduce the
holding company's capital ratio from 37% to approximately 20%.
Scotland Savings Bank is a state chartered stock savings bank with offices in
Scotland and Moore Counties.