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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 27, 1998
UNITED TENNESSEE BANKSHARES, INC.
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(Exact name of registrant as specified in charter)
Tennessee 0-23551 62-1710108
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(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
344 Broadway, Newport, Tennessee 37821
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(423)623-6088
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ITEM 5. OTHER EVENTS.
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On August 27, 1998, United Tennessee Bankshares, Inc. (the
"Registrant"), announced that it had received the approval of the
Office of Thrift Supervision to repurchase 5.0% of its
outstanding shares of common stock, approximately 72,737 shares.
The Registrant's press release is attached hereto as Exhibit 99.1
and incorporated by reference herein.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS.
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Exhibit 99.1 Press Release dated August 27, 1998.
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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 author-
ized.
UNITED TENNESSEE BANKSHARES, INC.
By: /s/ Richard G. Harwood
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Richard G. Harwood
President and Chief Executive
Officer
Date: August 27, 1998
NEWS RELEASE
FOR MORE INFORMATION CONTACT
Mr. Richard Harwood
President
(423) 623-6088
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FOR IMMEDIATE RELEASE
AUGUST 27, 1998
UNITED TENNESSEE BANKSHARES, INC.
ANNOUNCES STOCK REPURCHASE PROGRAM
Newport, Tennessee ... United Tennessee Bancshares, Inc.
(Nasdaq:UTBI), the holding company of Newport Federal Bank,
announced today that it is commencing a stock repurchase program
to acquire up to five percent of its currently outstanding common
stock, or approximately 72,737 shares. Repurchased shares may be
acquired directly by the Company and cancelled or, in
management's judgment, acquired by a trust for the Company, in
which event such acquired shares would be held as, in effect,
treasury shares for the benefit of the Company. This program
will be dependent upon market conditions, and there is no
guarantee as to the exact number of shares to be repurchased by
the Company.
Richard Harwood, President of the Company and the Bank,
stated that the Board of Directors and the Office of Thrift
Supervision have authorized the repurchase program. Mr. Harwood
explained that management considers the Company's common stock to
be an attractive investment.
According to Mr. Harwood, stock repurchases by the Company
generally would be effected through open market purchases,
although he did not rule out the possibility of unsolicited
negotiated transactions or other types of repurchases. It is
expected that a reduction in the amount of the company's
outstanding stock would have the effect of increasing the
company's per share earnings and book value.
At June 30, 1998, the Company had total assets of $74.4
million and stockholder's equity of $20.1 million, or 27.0% of
total assets. The Bank operates two banking offices in Newport,
Tennessee.
