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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):
September 23, 1999
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 jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
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 September 23, 1999, the Registrant's Board of Directors
authorized the payment of a special distribution of $4.00 per
share on the Registrant's outstanding shares of common stock.
The special distribution is payable on November 30, 1999 to
stockholders of record as of November 1, 1999. On the basis of
a ruling received by the Registrant from the Internal Revenue
Service, the Registrant estimates that the distribution will not
be considered taxable dividends, but will be applied against and
will reduce the shareholders' adjusted basis in the Registrant's
common stock.
For further information, reference is made to the press
release dated September 23, 1999, which is attached hereto and
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS.
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The following exhibits are being filed as part of this
Current Report on Form 8-K:
Number Description
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99.1 Press Release dated September 23, 1999
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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.
UNITED TENNESSEE BANKSHARES, INC.
By: /s/ Richard G. Harwood
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Richard G. Harwood
President and Chief Executive
Officer
Date: September 27, 1999
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Contact: Richard G. Harwood, President
(423) 623-6088
FOR IMMEDIATE RELEASE
Date: September 23, 1999
UNITED TENNESSEE BANKSHARES, INC.
AUTHORIZES SPECIAL CASH DISTRIBUTION
United Tennessee Bankshares, Inc. (Nasdaq Smallcap: UTBI),
the holding company for Newport Federal Bank headquartered in
Newport, Tennessee announced today that its Board of Directors
has authorized the payment of a special distribution of $4.00
per share payable on November 30, 1999 to stockholders of
record as of November 1, 1999. The special distribution is an
addition to its regular annual dividend which it expects to
maintain at 30 cents per share. On the basis of a ruling received
from the Internal Revenue Service, the Company expects that the
distribution will not be considered a taxable dividend, but will
be applied against and will reduce the shareholders' adjusted
basis in the common stock. The Company indicated that it would
promptly announce to its shareholders the precise percentage of
the distribution and dividends to be non-taxable as soon as it
arrives at a final computation following the Company's 1999
fiscal year.
Richard G. Harwood, President of the Company, stated that
"The Board of Directors believes that this distribution
represents the most effective use of the Company's excess
capital that will benefit all of our shareholders."
The Company's Employee Stock Ownership Plan ("ESOP"), a
qualified retirement benefit plan covering all full-time
employees, holds approximately 145,475 shares of Company stock.
The trustees of the ESOP expect to purchase additional shares in
open market transactions beginning November 30, 1999 with the
$581,900 it will receive from the distribution. In addition,
the trustees of the Company's Stock Option Plan and Management
Recognition Plan Trusts are expected to use their portion of the
distribution (approximately $775,000) to purchase shares.
The Company expects that it will be required to record a
charge to compensation expense related to payment of the
distribution on shares of stock in its restricted stock plan.
The amount of the charge is estimated to be approximately
$36,700 (after the related income tax benefits).
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United Tennessee Bankshares, Inc. is the holding company
for Newport Federal Bank, which conducts business through three
full-service banking offices located in Newport, Tennessee. At
September 30, 1999, the Company had total assets of
approximately $96 million on a consolidated basis.
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This release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements can be identified through the use of the
words "expects," "anticipates," or "believes." The Company
cautions readers not to place undue reliance on such forward-
looking statements which speak only as of the date made.
Various factors including the Company's future earnings, changes
in the interest rate environment, changes in law and competitive
and regulatory factors could cause outcomes to differ from those
currently expected.
