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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): MAY 21, 1998
CAROLINA FINCORP, INC.
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(Exact name of registrant as specified in its charter)
NORTH CAROLINA 000-21701 56-1978449
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
115 SOUTH LAWRENCE STREET
P. O. BOX 1597
ROCKINGHAM, NORTH CAROLINA 28380
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(Address of principal executive offices)
Registrant's telephone number, including area code: (910) 997-6245
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 May 21, 1998, the Board of Directors of Carolina Fincorp, 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 June 19, 1998 to shareholders of
record on June 5, 1998. The Company anticipates that most of the dividend will
be considered a return of capital thereby resulting in a reduction in the cost
basis of each share of the Company's common stock and that only a portion will
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.
CAROLINA FINCORP, INC.
Date: May 22, 1998 By: /s/ John W. Bullard
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John W. Bullard, Executive Vice President
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EXHIBIT INDEX
Exhibit No. Description
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(99)(a) Press Release dated
May 22, 1998
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EXHIBIT 99.A
[LETTERHEAD FOR CAROLINA FINCORP, INC.]
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NEWS RELEASE
Contact:
R. Larry Campbell
President/CEO
(910) 997-6245
May 22, 1998
CAROLINA FINCORP, INC.
NEWS RELEASE
ROCKINGHAM, NC (May 22, 1998) -- Carolina Fincorp, Inc., the holding company of
Richmond Savings Bank, Inc., SSB announced today that its Board of Directors
declared a one-time cash dividend of $6.00 per share to be paid on June 19,
1998 to shareholders of record on June 5, 1998. The Company anticipates that
most of the dividend will be considered a return of capital, thereby reducing
the shareholder's basis in each share of Carolina Fincorp, Inc. stock, and that
only a portion will constitute a taxable dividend.
Due to the magnitude of the dividend declared today in relation to Carolina
Fincorp, Inc.'s share price, Nasdaq has determined that the Company's shares of
common stock will trade ex-dividend on June 22, 1998. Shareholders are advised
that it they sell their shares before the ex-dividend date, they will transfer
the right to receive the special dividend to the buyer(s) of those shares.
Carolina Fincorp, Inc. is traded under the symbol ("CFNC") on the Nasdaq
National Market.
115 S. Lawrence St., P. O. Box 1597, Rockingham, NC 28380 (910) 997-6245
