FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDED 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 19, 1998
SouthBanc Shares, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 0-23751 58-2361245
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State or other jurisdiction Commission (I.R.S. Employer
of incorporation File Number Identification No.)
907 N. Main Street, Anderson, South Carolina 29621
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number (including area code): (864) 225-0241
Not Applicable
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(Former name or former address, if changed since last report)
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Item 4. Changes in Registrant's Certifying Accountant
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(a) On May 19, 1998, the Registrant's Board of Directors, at the
recommendation of its Audit Committee, terminated the engagement of KPMG Peat
Marwick LLP, Greenville, South Carolina, as the Registrant's certifying
accountants.
The report of KPMG Peat Marwick LLP on the financial statements of
Perpetual Bank, A Federal Savings Bank ("Savings Bank"), the Registrant's
wholly-owned subsidiary, for either of the last two fiscal years did not
contain an adverse opinion or a disclaimer of opinion and was not qualified or
modified as to uncertainty, audit scope, or accounting principles.
During the Registrant's and the Savings Bank's two most recent
fiscal years and subsequent interim periods preceding the date of termination
of the engagement of KPMG Peat Marwick LLP, neither the Registrant nor the
Savings Bank was in disagreement with KPMG Peat Marwick LLP on any matter of
accounting principles or practices, financial statement disclosure, or
auditing scope or procedure, which disagreement, if not resolved to the
satisfaction of KPMG Peat Marwick LLP, would have caused KPMG Peat Marwick LLP
to make reference to the subject matter of the disagreement in connection with
its report.
The required letter from KPMG Peat Marwick LLP with respect to the
above statements concerning it is attached hereto as Exhibit 16 and
incorporated herein by reference.
(b) On May 19, 1998, the Registrant's Board of Directors, at the
recommendation of its Audit Committee, engaged Elliott, Davis & Company, LLP,
Greenville, South Carolina, as the Registrant's certifying accountants.
Neither the Registrant nor the Savings Bank has consulted with Elliott, Davis
& Company, LLP during its two most recent fiscal years nor during any
subsequent interim period prior to its engagement regarding the application of
accounting principles to a specified transaction, either completed or
proposed, or the type of audit opinion that might be rendered on the
Registrant's financial statements.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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Exhibit 16 Letter of KPMG Peat Marwick LLP Dated June 1, 1998
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amended report to be signed on its behalf by
the undersigned, hereunto duly authorized.
SOUTHBANC SHARES, INC.
Date: June 2, 1998 By: /s/ Robert W. Orr
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Robert W. Orr
President and Chief Executive Officer
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Exhibit 16
Letter of KPMG Peat Marwick LLP Dated June 1, 1998
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KPMG Peat Marwick LLP
One Insignia Financial Plaza
P.O. Box 10529
Greenville, SC 29603
Securities and Exchange Commission
Washington, D.C. 20549
June 1, 1998
Ladies and Gentlemen:
We were previously principal accountants for Perpetual Bank, A Federal Savings
Bank, a wholly-owned subsidiary of SouthBanc Shares, Inc., and under the date
November 7, 1997, we reported on the consolidated financial statements of
Perpetual Bank, A Federal Savings Bank and subsidiaries as of September 30,
1997 and 1996 and for the years then ended. On May 19, 1998, our appointment
as principal accountants was terminated. We have read SouthBanc's statements
included under Item 4 of its Form 8-K dated May 19, 1998, and we agree with
such statements except that we are not in a position to agree or disagree with
SouthBanc's statement that the Board of Directors, at the recommendation of
its Audit Committee, engaged Elliott, Davis & Company, LLP or whether
SouthBanc consulted with Elliott, Davis & Company, LLP on any matters.
Very truly yours,
/s/ KPMG Peat Marwick LLP
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