FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) December 6, 1999
ANCHOR FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
South Carolina 0-13759 57-0778015
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification number)
2002 Oak St., Myrtle Beach, S. C. 29577
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (843) 448-1411
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ITEM 5. OTHER EVENTS
On December 6, 1999, Anchor Financial Corporation announced that it expects
lower fourth quarter earnings than previously expected.This results primarily
from loan losses identified in the merger of Bailey Financial Corporation and,
to a lesser extent, from pressures on the company's net interest margin caused
by several weeks of slower than normal business conditions in many of Anchor's
markets following Hurricanes Floyd and Irene.
Following three quarters of operating earnings per share in the $.45 to $.48
range, management has lowered projections for the fourth quarter to a level of
$.35 to $.38 per share. Return on average assets for the year would be lowered
from the previously expected range of 1.30% to 1.35% to 1.20% to 1.25% and
return on equity for the year would drop into the 16.0% to 16.5% range from the
17.0% to 17.5% range. Net loan losses for the year ended December 31, 1999 are
estimated at $1.75 million, and of that amount, approximately $1.3 million have
been taken in the Bailey portfolio to absorb losses and properly align credit
risk. Net loan losses for the entire year are estimated at 0.20% of average
outstanding loans. While this level of net loan losses compares favorably to
industry standards, it is higher than management expected.
Anchor Financial Corporation, with assets of $1.2 billion, is the parent of The
Anchor Bank.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial statements - not applicable.
(b) Pro forma financial information - not applicable.
(c) Exhibits:
(99) News release issued by Anchor Financial Corporation, dated
December 6, 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 thereunto duly authorized.
/s/ Tommy E. Looper
Tommy E. Looper, Executive Vice
President and Chief Financial
Officer
Date: December 8, 1999
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FOR IMMEDIATE RELEASE
CONTACT: BETH BRANHAM TOMMY LOOPER
843.946.3191 843.946.3164
Anchor Financial Corporation's Fourth Quarter Earnings Outlook Revised
Myrtle Beach, SC, December 6, 1999 - Anchor Financial Corporation (Nasdaq:AFSC)
today announced that it expects lower fourth quarter earnings than previously
expected. This results primarily from loan losses identified in the merger of
Bailey Financial Corporation and, to a lesser extent, from pressures on the
company's net interest margin caused by several weeks of slower than normal
business conditions in many of Anchor's markets following Hurricanes Floyd and
Irene.
Following three quarters of operating earnings per share in the $.45 to $.48
range, management has lowered projections for the fourth quarter to a level of
$.35 to $.38 per share. Return on average assets for the year would be lowered
from the previously expected range of 1.30% to 1.35% to 1.20% to 1.25% and
return on equity for the year would drop into the 16.0% to 16.5% range from the
17.0% to 17.5% range. Chairman, President and Chief Executive Officer,
Stephen L. Chryst said, "We expect net loan losses this year of around $1.75
million, and of that amount, approximately $1.3 million have been taken in the
Bailey portfolio to absorb losses and properly align credit risk. Net losses for
the entire year will still be only 0.20% of average outstanding loans, which
will compare favorably to industry standards, but this level of losses is higher
than what we expected."
Chryst stated, "It is not our policy to report earnings estimates prior to
quarter end, however in an effort to keep shareholders fully informed, we feel
this announcement is appropriate." Chryst expressed disappointment with the
level of losses in the Bailey transactions. He said, "We have carefully reviewed
the situation and the processes involved in these credit conditions and we are
taking the conservative approach in recognizing these losses in the fourth
quarter. We do not expect this situation to affect earnings going forward."
Anchor Financial Corporation, with assets of $1.2 billion, is the parent of The
Anchor Bank. The Corporation's common stock trades on The Nasdaq Stock Market
under the symbol AFSC. Please visit our web site at www.anchorfinancialcorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: Statements in this news release looking forward in time involve risks
and uncertainties, including regulatory approvals, completion of the due
diligence process, success of acquiring new locations and integrating newly-
acquired branches, additional expansion opportunities, the effect of changing
economic conditions, product demand, changes in the regulatory environment, and
other risk factors detailed in Anchor's Securities and Exchange Commission
filings.
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