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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 25049
FORM 11-K
[x] ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
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[_] TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from__________________ to ____________________
Commission File Number 1-14266
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SCOTLAND SAVINGS BANK, SSB EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN AND TRUST
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(Full title of the Plan)
SCOTLAND BANCORP, INC.
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(Name of issuer of the securities)
505 South Main Street
Laurinburg, North Carolina 28352
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(Address of Principal executive office) (Zip code)
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Item 4.
The following is being provided in lieu of Items 1-3, whereby plans subject to
the Employee Retirement Income Security Act of 1974 ("ERISA") may file plan
financial statements and schedules prepared in accordance with the financial
reporting requirements of ERISA. Due to the number of plan participants, this
plan is not subject to the audit requirements of ERISA.
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SCOTLAND SAVINGS BANK, SSB
EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN AND TRUST
FINANCIAL REPORT
(COMPILED)
DECEMBER 31, 1997
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CONTENTS
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INDEPENDENT ACCOUNTANT'S REPORT 1
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FINANCIAL STATEMENTS
Statements of net assets available for benefits 3
Statement of changes in net assets available for benefits (with fund information) 4 - 5
SUPPLEMENTARY INFORMATION
Item 27a - Schedule of assets held for investment purposes 7
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[LETTERHEAD OF MCGLADREY & PULLEN, LLP APPEARS HERE]
INDEPENDENT ACCOUNTANT'S REPORT
To the Plan Administrator
Scotland Savings Bank, SSB
Employees' Savings and Profit Sharing Plan And Trust
Laurinburg, North Carolina
We have compiled the accompanying statements of net assets available for
benefits of the Scotland Savings Bank, SSB Employees' Savings and Profit Sharing
Plan And Trust as of December 31, 1997 and 1996, and the related statement of
changes in net assets available for benefits (with fund information) for the
year ended December 31, 1997 in accordance with Statements on Standards for
Accounting and Review Services issued by the American Institute of Certified
Public Accountants.
A compilation is limited to presenting information that is the representation of
management in the form of financial statements. We have not audited or reviewed
the accompanying financial statements or supplementary schedules and,
accordingly, do not express an opinion or any other form of assurance on them.
The Plan Administrator has elected to omit substantially all of the disclosures
required by generally accepted accounting principals. If the omitted
disclosures were included in the financial statements, they might influence the
user's conclusions about the plan's net assets available for benefits and
changes therein. Accordingly, these financial statements are not designed for
those who are not informed about such matters.
The Plan has not presented the schedule of reportable transactions (transaction
in excess of 5 percent of the current value of plan assets at the beginning of
the year). Disclosure of this information is required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974.
/s/ McGladrey & Pullen LLP
Charlotte, North Carolina
September 18, 1998
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SCOTLAND SAVINGS BANK, SSB
EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN AND TRUST
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1997 AND 1996
SEE ACCOUNTANT'S REPORT
1997 1996
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ASSETS
Investments, at fair value
Money market account $ 23,679 $ 11,277
Mutual funds 156,301 70,245
Scotland Bancorp, Inc common stock 350,704 344,235
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TOTAL INVESTMENTS 530,684 425,757
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Accrued interest and dividends 58 -
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TOTAL ASSETS 530,742 425,757
LIABILITIES
Trust and record keeping fees payable 141 -
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NET ASSETS AVAILABLE FOR BENEFITS $ 530,601 $ 425,757
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3
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SCOTLAND SAVINGS BANK, SSB
EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN AND TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (WITH FUND
INFORMATION) YEAR ENDED DECEMBER 31, 1997
SEE ACCOUNTANT'S REPORT
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GOVERNMENT
SCOTLAND EQUITY MONEY
STOCK INDEX MIDCAP MARKET
FUND FUND STOCK FUND FUND
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Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of
investments $ 14,670 $ 16,684 $ 7,145 $ -
Interest 1,321 - - -
Dividends 7,694 - - 854
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23,685 16,684 7,145 854
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Contributions:
Employer 2,330 32,600 17,461 12,227
Participants 863 528 - -
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3,193 33,128 17,461 12,227
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TOTAL ADDITIONS 26,878 49,812 24,606 13,081
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Deductions from net assets
attributed to:
Benefits paid to participants 8,609 722 669 -
Administrative expenses 1,769 197 87 31
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TOTAL DEDUCTIONS 10,378 919 756 31
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Net increase
prior to interfund transfers 16,500 48,893 23,850 13,050
Interfund transfers 399 31 218 (648)
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NET INCREASE 16,899 48,924 24,068 12,402
Net assets available for benefits:
Beginning of year 344,235 46,882 19,553 11,277
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End of year $ 361,134 $ 95,806 $ 43,621 $ 23,679
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4
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STABLE
BOND VALUE
FUND FUND TOTAL
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<S> <C> <C>
$ 608 $ 23 $ 39,130
- - 1,321
- - 8,548
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608 23 48,999
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- 1,934 66,552
- - 1,391
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- 1,934 67,943
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608 1,957 116,942
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- - 10,000
14 - 2,098
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14 - 12,098
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594 1,957 104,844
- - -
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594 1,957 104,844
3,729 81 425,757
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$ 4,323 $ 2,038 $ 530,601
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SCOTLAND SAVINGS BANK, SSB
EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN AND TRUST
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
December 31, 1997
Sponsor Federal I.D. #56-1769879 (Plan #002)
See Accountant's Report
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(a) (b) Identity of issue, (c) Description of investment (d) Cost (e) Current
lessor, or similar party including maturity date, rate Value
of interest, collateral, par or
maturity value
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Money market:
* Pentegra Group BGI Government money market fund $ 23,679 $ 23,679
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Mutual funds:
* Pentegra Group BGI-equity index fund (7,804 shares) 89,848 95,806
* Pentegra Group BGI midcap stock fund (3,748 shares) 39,262 43,621
* Pentegra Group BGI-bond fund (383 shares) 3,828 4,323
* Pentegra Group BGI-stable value fund (197 shares) 2,020 2,038
* Pentegra Group Collective short term
investment fund (10,513 shares) 10,513 10,513
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145,471 156,301
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Common stock:
* Scotland Bancorp, Inc. 35,291 shares of common stock 402,701 350,704
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$ 571,851 $ 530,684
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* Represents a party in interest.
7
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Issuer has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SCOTLAND BANCORP, INC.
Dated By: /s/ William C. Fitzgerald, III
___________________________ ------------------------------
William C. Fitzgerald, III
President and CEO
Dated By: /s/ Debora B. Steagall
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Debora B. Steagall
Assistant Treasurer
