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) July 20, 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
<PAGE>
ITEM 5. OTHER EVENTS
The financial statements for Anchor Financial Corporation ("Anchor Financial")
for the quarter ended March 31, 1999 have been restated to reflect the merger
with Bailey Financial Corporation ("Bailey Financial"), which was completed on
April 9, 1999. The restated financial information for the first quarter of 1999
is filed as Exhibit 99 to this report and is provided for informational purposes
only.
The merger transaction has been accounted for as a pooling of interests and
provided for a tax-free exchange of 16.32 shares of Anchor Financial's common
stock for each outstanding share of Bailey Financial's common stock. Based on
Anchor Financial's closing stock price of $27.125 on April 9, 1999 and Bailey
Financial's approximately 95,140 outstanding shares of common stock, the
transaction has a total value of $42.1 million.
The merger added 5 offices to the Anchor Financial branch network. Anchor
Financial now has 33 offices in South Carolina and North Carolina.
The former subsidiaries of Bailey Financial, M.S. Bailey & Son, Bankers,
headquartered in Clinton, SC, and Saluda County Bank, based in Saluda, SC, are
now subsidiaries of Anchor Financial. Saluda County Bank and M.S. Bailey & Son,
Bankers are expected to be merged into The Anchor Bank during the fourth quarter
of this year.
1
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits:
(99) Financial Summary for Anchor Financial Corporation
for the quarter ended March 31, 1999
2
<PAGE>
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/ John J. Moran
John J. Moran, Senior Vice President
and Comptroller
Date: July 20, 1999
3
<TABLE>
Exhibit 99
Anchor Financial Corporation
Financial Summary - net of nonrecurring charges (1)
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Three Months Ended
March 31, Percent
Income Statement Data 1999 1998 Change
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Interest income $22,215,396 $22,437,006 (1.0)
Interest expense 9,277,523 10,495,422 (11.6)
---------------- ----------------
Net interest income 12,937,873 11,941,584 8.3
Provision for loan losses 425,750 639,000 (33.4)
---------------- ----------------
Net interest income after
provision for loan losses 12,512,123 11,302,584 10.7
Net gains (losses) on sales of securities 63,149 21,526 193.4
Noninterest income 2,918,677 2,607,195 11.9
Noninterest expense 9,703,128 9,233,827 5.1
---------------- ----------------
Income before income taxes 5,790,821 4,697,478 23.3
Applicable income tax expense 2,003,136 1,590,029 26.0
---------------- ----------------
Net income $3,787,685 $3,107,449 21.9
================ ================
Net income per share - basic $0.47 $0.39 20.4
Net income per share - diluted $0.45 $0.38 19.3
Cash dividends paid per share $0.14 $0.12 16.7
Weighted average shares outstanding - basic 8,039,308 7,938,427 1.3
Weighted average shares outstanding - diluted 8,319,130 8,240,296 1.0
- -----------------------------------------------------------------------------------------------------
Performance Ratios
(Annualized)
Return on average assets 1.32 % 1.10 % 19.6
Return on average stockholders' equity 17.13 15.69 9.2
Net yield on average interest-earning
assets (tax equivalent) 4.86 4.61 5.2
- -----------------------------------------------------------------------------------------------------
Selected Average Balances
(In thousands)
Total assets $1,167,823 $1,145,822 1.9
Interest-earning assets 1,086,747 1,055,413 3.0
Loans-net of unearned income 820,547 795,289 3.2
Investment securities 261,607 230,782 13.4
Deposits 954,765 935,693 2.0
Noninterest-bearing deposits 165,309 146,878 12.5
Interest-bearing deposits 789,456 788,815 0.1
Interest-bearing liabilities 902,524 893,008 1.1
Stockholders' equity 91,036 81,163 12.2
- -----------------------------------------------------------------------------------------------------
</TABLE>
(1) Nonrecurring charges are related to the costs associated with the
acquistions completed in 1998 and 1999.
<PAGE>
Anchor Financial Corporation
Financial Summary
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
Three Months Ended
March 31, Percent
Income Statement Data 1999 1998 Change
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Interest income $22,215,396 $22,437,006 (1.0)
Interest expense 9,277,523 10,495,422 (11.6)
----------------- -----------------
Net interest income 12,937,873 11,941,584 8.3
Provision for loan losses 425,750 639,000 (33.4)
----------------- -----------------
Net interest income after
provision for loan losses 12,512,123 11,302,584 10.7
Net gains (losses) on sales of securities 63,149 21,526 193.4
Noninterest income 2,918,677 2,607,195 11.9
Noninterest expense 9,825,384 9,233,827 6.4
----------------- -----------------
Income before income taxes 5,668,565 4,697,478 20.7
Applicable income tax expense 2,002,777 1,590,029 26.0
----------------- -----------------
Net income $3,665,788 $3,107,449 18.0
================= =================
Net income per share - basic $0.46 $0.39 16.5
Net income per share - diluted $0.44 $0.38 16.8
Cash dividends paid per share $0.14 $0.12 16.7
Weighted average shares outstanding - basic 8,039,308 7,938,427 1.3
Weighted average shares outstanding - diluted 8,319,130 8,240,296 1.0
- ----------------------------------------------------------------------------------------------------------
Performance Ratios
(Annualized)
Return on average assets 1.27 % 1.10 % 15.8
Return on average stockholders' equity 16.58 15.69 5.7
Net yield on average interest-earning
assets (tax equivalent) 4.86 4.61 5.2
- ----------------------------------------------------------------------------------------------------------
Selected Average Balances
(In thousands)
Total assets $1,167,823 $1,145,822 1.9
Interest-earning assets 1,086,747 1,055,413 3.0
Loans-net of unearned income 820,547 795,289 3.2
Investment securities 261,607 230,782 13.4
Deposits 954,765 935,693 2.0
Noninterest-bearing deposits 165,309 146,878 12.5
Interest-bearing deposits 789,456 788,815 0.1
Interest-bearing liabilities 902,524 893,008 1.1
Stockholders' equity 91,036 81,163 12.2
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Selected Financial Data
at Period-End
(In thousands)
<TABLE>
<CAPTION>
March 31, Percent
1999 1998 Change
------------------- -------------------- -------------
<S> <C> <C> <C>
Total assets $1,190,807 $1,184,737 0.5 %
Interest-earning assets 1,109,288 1,096,285 1.2
Loans-net of unearned income 830,407 813,645 2.1
Allowance for loan losses 10,051 8,701 15.5
Investment securities 260,030 226,205 15.0
Deposits 965,843 995,501 (3.0)
Stockholders' equity 88,876 83,771 6.1
Average stockholders' equity to
average assets 7.69 % 7.02 % 9.6 %
Tier 1 capital to average assets
(Leverage ratio) 7.64 7.31 4.5
Risk-based capital ratios:
Tier 1 capital 10.11 9.73 3.9
Total capital 12.04 11.72 2.7
Book value per common share $11.24 $10.47 7.3
Tangible book value per
common share $11.15 $10.36 7.7
Total common shares
outstanding 8,042,910 7,952,109 1.1
Credit Quality Data
Nonperforming assets $3,187,210 $2,168,158 47.0 %
Nonperforming loans 2,622,326 1,725,719 52.0
Net loan (recoveries) losses (78,807) 293,050 (126.9)
Nonperforming assets to total
loans and foreclosed property 0.38 % 0.27 % 44.0
Annualized net loan (recoveries) losses
to average total loans (YTD) (0.04) 0.15 (126.1)
Allowance for loan losses to
total loans 1.21 1.07 13.2
Allowance for loan losses to:
Nonperforming assets 315.35 401.31 (21.4)
Nonperforming loans 383.29 504.20 (24.0)
</TABLE>
