<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
x Annual report pursuant to Section 15(d) of the Securities Exchange Act
- ---- of 1934 (Fee required)
For the fiscal year ended March 31, 1997
-----------------------------------------------------
or
Transition report pursuant to Section 15(d) of the Securities Exchange
- ---- Act of 1934 (No fee required)
For the transition period from to
----------------- ------------------
Commission file number 0-14379
------------------------------------------------
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below Tucker Federal Savings and Loan Association
-------------------------------------------
401(K) Savings and Employee Stock Ownership Plan, 2355 Main Street, Tucker,
- -------------------------------------------------------------------------------
Georgia 30084-4441
- ------------------
B. Name of insurer of the securities held pursuant to the plan and the
address of its principal executive office Eagle Bancshares, Inc. 4305 Lynburn
-------------------------------------
Drive, Tucker, Georgia 30084-4441
- ---------------------------------
<PAGE> 2
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(k) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
FINANCIAL STATEMENTS
March 31, 1997 and 1996
- -------------------------------------------------------------------------------
CONTENTS
<TABLE>
<CAPTION>
<S> <C>
INDEPENDENT AUDITOR'S REPORT
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits
as of March 31, 1997 and 1996 Exhibit A
Statements of Changes in Net Assets Available
for Benefits for the years ended March 31, 1997 and 1996 Exhibit B
Notes to Financial Statements
SUPPLEMENTARY SCHEDULES:
Form 5500 Item 27a - Schedule of Assets Held
for Investment Purposes Schedule 1
Form 5500 Item 27d - Schedule of Reportable
Transactions Schedule 2
</TABLE>
<PAGE> 3
INDEPENDENT AUDITOR'S REPORT
To The Administrative Committee
of Tucker Federal Savings and Loan Association
401(k) Savings and Employee Stock Ownership Plan
We have audited the accompanying statements of net assets available for
benefits of the Tucker Federal Savings and Loan Association 401(k) Savings and
Employee Stock Ownership Plan (the Plan) as of March 31, 1997 and 1996, and the
related statement of changes in net assets available for benefits for the years
then ended. These financial statements are the responsibility of the Plan's
Administrative Committee. Our responsibility is to express an opinion on these
financial statements based upon our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the net assets available for benefits of the
Plan as of March 31, 1997 and 1996, and the changes in net assets available for
benefits for the years then ended in conformity with generally accepted
accounting principles.
Our audit was conducted for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental schedules of
assets held for investment purposes, and reportable transactions are presented
for the purpose of additional analysis and are not a required part of the basic
financial statements, but are supplementary information required by the
<PAGE> 4
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental schedules
have been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ WINDHAM BRANNON, P.C.
WINDHAM BRANNON, P.C.
Certified Public Accountants
October 10, 1997
<PAGE> 5
INDEPENDENT AUDITOR'S CONSENT
To The Administrative Committee
Tucker Federal Savings and Loan Association
401(k) Savings and Employee Stock Ownership Plan
We consent to the inclusion of our report on the audit of the financial
statements of the Tucker Federal Savings and Loan Association 401(k) Savings and
Employee Stock Ownership Plan financial statements as of March 31, 1997 and 1996
in the issuance of the Plan's 11-K.
/s/ WINDHAM BRANNON, P.C.
WINDHAM BRANNON, P.C.
Certified Public Accountants
October 10, 1997
<PAGE> 6
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(k) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
------------------------------------------------
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
March 31, 1997
<TABLE>
<CAPTION>
Participant Directed
-------------------------------------------------------------------------
Guaranteed Unallocated
Interest Balanced Core Equity International Eagle Employer
Fund Fund Fund Equity Fund Bancshares Contribution
---- ---- ---- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Cash $ -- $ -- $ -- $ -- $ 155,702 $ --
--------- --------- --------- -------- --------- --------
Investments, at fair value (Notes 2 and 3)
Shares of registered investment companies:
MassMutual Guaranteed Interest Fund II 970,503 -- -- -- -- --
MassMutual Balanced Fund -- 501,531 -- -- -- --
MassMutual Core Equity Fund -- -- 527,383 -- -- --
MassMutual International Equity Fund -- -- -- 516,044 -- --
Eagle Bancshares, Inc. Common Stock -- -- -- -- 593,354 --
--------- --------- --------- -------- --------- --------
Total Investments 970,503 501,531 527,383 516,044 593,354 --
--------- --------- --------- -------- --------- --------
Receivables:
Participant contributions 8,390 6,784 8,339 6,131 5 --
Employer contributions -- -- -- -- -- 110,342
Accrued income 1,624 3,133 5,565 3,595 505 --
--------- --------- --------- -------- --------- --------
Total Receivables 10,014 9,917 13,904 9,726 510 110,342
--------- --------- --------- -------- --------- --------
Total Assets 980,517 511,448 541,287 525,770 749,566 110,342
LOANS PAYABLE (NOTE 5) -- -- -- -- -- --
DISTRIBUTIONS PAYABLE -- -- -- -- (280) --
PENDING FUND TRANSFERS (72,100) (2,932) (5,397) 10,813 69,616 --
--------- --------- --------- -------- --------- --------
NET ASSETS AVAILABLE FOR BENEFITS $ 908,417 $ 508,516 $ 535,890 $536,583 $ 818,902 $110,342
========= ========= ========= ======== ========= ========
<CAPTION>
Non-Participant
Directed
------------------------
Eagle Eagle
Bancshares Bancshares
Allocated Unallocated Total
--------- ----------- -----
<S> <C> <C> <C>
ASSETS:
Cash $ 112,916 $ -- $ 268,618
----------- ----------- -----------
Investments, at fair value (Notes 2 and 3)
Shares of registered investment companies:
MassMutual Guaranteed Interest Fund II -- -- 970,503
MassMutual Balanced Fund -- -- 501,531
MassMutual Core Equity Fund -- -- 527,383
MassMutual International Equity Fund -- -- 516,044
Eagle Bancshares, Inc. Common Stock 3,807,982 812,818 5,214,154
----------- ----------- -----------
Total Investments 3,807,982 812,818 7,729,615
----------- ----------- -----------
Receivables:
Participant contributions -- -- 29,649
Employer contributions -- 250,000 360,342
Accrued income (139) -- 14,283
----------- ----------- -----------
Total Receivables (139) 250,000 404,274
----------- ----------- -----------
Total Assets 3,920,759 1,062,818 8,402,507
LOANS PAYABLE (NOTE 5) -- (836,295) (836,295)
DISTRIBUTIONS PAYABLE -- -- (280)
PENDING FUND TRANSFERS 343 (343) --
----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $ 3,921,102 $ 226,180 $ 7,565,932
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these statements. Exhibit A
Page 1 of 2
<PAGE> 7
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(k) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
------------------------------------------------
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
March 31, 1996
<TABLE>
<CAPTION>
Participant Directed
-------------------------------------------------------------------------
Guaranteed Unallocated
Interest Balanced Core Equity International Eagle Employer
Fund Fund Fund Equity Fund Bancshares Contribution
---- ---- ---- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Cash $ -- $ -- $ -- $ -- $ 29,903 $ --
---------- -------- -------- --------- --------- --------
Investments, at fair value (Notes 2 and 3)
Shares of registered investment companies:
MassMutual Guaranteed Interest Fund II 983,721 -- -- -- -- --
MassMutual Balanced Fund -- 331,327 -- -- -- --
MassMutual Core Equity Fund -- -- 342,663 -- -- --
MassMutual International Equity Fund -- -- -- 484,688 -- --
Eagle Bancshares, Inc. Common Stock -- -- -- -- 325,738 --
---------- -------- -------- --------- --------- --------
Total Investments 983,721 331,327 342,663 484,688 325,738 --
---------- -------- -------- --------- --------- --------
Receivables:
Participant contributions 16,305 10,525 10,436 7,575 17,732 --
Employer contributions -- -- -- -- -- 149,401
---------- -------- -------- --------- --------- --------
Total Receivables 16,305 10,525 10,436 7,575 17,732 149,401
---------- -------- -------- --------- --------- --------
Total Assets 1,000,026 341,852 353,099 492,263 373,373 149,401
LOANS PAYABLE (NOTE 5) -- -- -- -- -- --
DISTRIBUTIONS PAYABLE -- -- -- -- (1,442) --
PENDING FUND TRANSFERS 34,261 57,292 51,191 (94,259) (47,738) --
---------- -------- -------- --------- --------- --------
NET ASSETS AVAILABLE FOR BENEFITS $1,034,287 $399,144 $404,290 $ 398,004 $ 324,193 $149,401
========== ======== ======== ========= ========= ========
<Captioin>
Non-Participant
Directed
------------------------
Eagle Eagle
Bancshares Bancshares
Allocated Unallocated Total
--------- ----------- -----
<S> <C> <C> <C>
ASSETS:
Cash $ 39,189 $ 747 $ 69,839
----------- ----------- -----------
Investments, at fair value (Notes 2 and 3)
Shares of registered investment companies:
MassMutual Guaranteed Interest Fund II -- -- 983,721
MassMutual Balanced Fund -- -- 331,327
MassMutual Core Equity Fund -- -- 342,663
MassMutual International Equity Fund -- -- 484,688
Eagle Bancshares, Inc. Common Stock 3,674,582 1,028,763 5,029,083
----------- ----------- -----------
Total Investments 3,674,582 1,028,763 7,171,482
----------- ----------- -----------
Receivables:
Participant contributions -- -- 62,573
Employer contributions -- 160,637 310,038
----------- ----------- -----------
Total Receivables -- 160,637 372,611
----------- ----------- -----------
Total Assets 3,713,771 1,190,147 7,613,932
LOANS PAYABLE (NOTE 5) -- (1,000,000) (1,000,000)
DISTRIBUTIONS PAYABLE (86) -- (1,528)
PENDING FUND TRANSFERS -- (747) --
----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $ 3,713,685 $ 189,400 $ 6,612,404
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these statements. Exhibit A
Page 2 of 2
<PAGE> 8
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(k) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
March 31, 1997
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------------
Guaranteed Unallocated
Interest Balanced Core Equity International Eagle Employer
Fund Fund Fund Equity Fund Bancshares Contribution
---- ---- ---- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income $ 61,794 $ 14,496 $ 9,241 $ 2,403 $ 10,021 $ --
Net appreciation (depreciation) in current
value of investments -- 22,800 47,419 109,733 1,850 --
----------- --------- --------- --------- --------- ---------
Total Investment Income 61,794 37,296 56,660 112,136 11,871 --
----------- --------- --------- --------- --------- ---------
Participant Contributions 115,880 80,943 103,280 68,924 183,371 --
----------- --------- --------- --------- --------- ---------
Employer Contributions:
Qualified non-elective contribution -- -- -- -- -- 62,367
Employer match -- -- -- -- -- 201,896
ESOP contribution -- -- -- -- -- --
Forfeitures -- -- -- -- -- (153,921)
----------- --------- --------- --------- --------- ---------
Total Employer Contributions -- -- -- -- -- 110,342
----------- --------- --------- --------- --------- ---------
Total Additions 177,674 118,239 159,940 181,060 195,242 110,342
----------- --------- --------- --------- --------- ---------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to participants (99,688) (52,197) (51,235) (20,584) (27,158) --
Interest expense -- -- -- -- -- --
----------- --------- --------- --------- --------- ---------
Total Deductions From Net Assets (99,688) (52,197) (51,235) (20,584) (27,158) --
----------- --------- --------- --------- --------- ---------
Net increase prior to interfund transfers 77,986 66,042 108,705 160,476 168,084 110,342
Interfund transfers (203,856) 43,330 22,895 (21,897) 326,625 (149,401)
----------- --------- --------- --------- --------- ---------
NET INCREASE (125,870) 109,372 131,600 138,579 494,709 (39,059)
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 1,034,287 399,144 404,290 398,004 324,193 149,401
----------- --------- --------- --------- --------- ---------
End of Year $ 908,417 $ 508,516 $ 535,890 $ 536,583 $ 818,902 $ 110,342
=========== ========= ========= ========= ========= =========
<CAPTION>
Non-Participant
Directed
---------------
Eagle Eagle
Bankshares Bankshares
Allocated Unallocated Total
--------- ----------- -----
<S> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income $ 129,854 $ -- $ 227,809
Net appreciation (depreciation) in current
value of investments 119,229 116,304 417,335
----------- --------- -----------
Total Investment Income 249,083 116,304 645,144
----------- --------- -----------
Participant Contributions -- -- 552,398
----------- --------- -----------
Employer Contributions:
Qualified non-elective contribution -- -- 62,367
Employer match -- -- 201,896
ESOP contribution -- 250,000 250,000
Forfeitures -- -- (153,921)
----------- --------- -----------
Total Employer Contributions -- 250,000 360,342
----------- --------- -----------
Total Additions 249,083 366,304 1,557,884
----------- --------- -----------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to participants (270,994) -- (521,856)
Interest expense -- (82,500) (82,500)
----------- --------- -----------
Total Deductions From Net Assets (270,994) (82,500) (604,356)
----------- --------- -----------
Net increase prior to interfund transfers (21,911) 283,804 953,528
Interfund transfers 229,328 (247,024) --
----------- --------- -----------
NET INCREASE 207,417 36,780 953,528
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 3,713,685 189,400 6,612,404
----------- --------- -----------
End of Year $ 3,921,102 $ 226,180 $ 7,565,932
=========== ========= ===========
</TABLE>
The accompanying notes are an integral part of these statements. Exhibit B
Page 1 of 2
<PAGE> 9
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(k) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
March 31, 1996
<TABLE>
<CAPTION>
Participant Directed
-------------------------------------------------------------------------------
Guaranteed Unallocated
Interest Balanced Core Equity International Eagle Employer
Fund Fund Fund Equity Fund Bancshares Contribution
---- ---- ---- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income $ 59,114 $ 12,158 $ 8,286 $ 5,768 $ 10,923 $ --
Net appreciation in current
value of investments -- 34,137 61,592 31,361 65,767 --
----------- --------- --------- --------- --------- ---------
Total Investment Income 59,114 46,295 69,878 37,129 76,690 --
----------- --------- --------- --------- --------- ---------
Participant Contributions 158,796 75,074 69,820 71,768 107,716 --
----------- --------- --------- --------- --------- ---------
Employer Contributions:
Qualified non-elective contribution -- -- -- -- -- --
Employer match -- -- -- -- -- 164,747
ESOP contribution -- -- -- -- -- --
Forfeitures -- -- -- -- -- (15,346)
----------- --------- --------- --------- --------- ---------
Total Employer Contributions -- -- -- -- -- 149,401
----------- --------- --------- --------- --------- ---------
Total Additions 217,910 121,369 139,698 108,897 184,406 149,401
DEDUCTIONS FROM NET ASSETS:
Benefits paid to participants (64,561) (35,045) (46,245) (24,945) (11,916) --
----------- --------- --------- --------- --------- ---------
Net increase prior to interfund transfers 153,349 86,324 93,453 83,952 172,490 149,401
Interfund transfers (58,953) 58,878 63,137 (39,387) (23,675) --
----------- --------- --------- --------- --------- ---------
NET INCREASE 94,396 145,202 156,590 44,565 148,815 149,401
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 939,891 253,942 247,700 353,439 175,378 --
----------- --------- --------- --------- --------- ---------
End of Year $ 1,034,287 $ 399,144 $ 404,290 $ 398,004 $ 324,193 $ 149,401
=========== ========= ========= ========= ========= =========
<CAPTION>
Non-Participant
Directed
---------------
Eagle Eagle
Bankshares Bankshares
Allocated Unallocated Total
--------- ----------- -----
<S> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income $ 131,889 $ -- $ 228,138
Net appreciation in current
value of investments 1,009,033 (60,600) 1,141,290
----------- --------- -----------
Total Investment Income 1,140,922 (60,600) 1,369,428
----------- --------- -----------
Participant Contributions -- -- 483,174
----------- --------- -----------
Employer Contributions:
Qualified non-elective contribution -- -- --
Employer match -- -- 164,747
ESOP contribution -- 250,000 250,000
Forfeitures -- -- (15,346)
----------- --------- -----------
Total Employer Contributions -- 250,000 399,401
----------- --------- -----------
Total Additions 1,140,922 189,400 2,252,003
DEDUCTIONS FROM NET ASSETS:
Benefits paid to participants (267,348) -- (450,060)
----------- --------- -----------
Net increase prior to interfund transfers 873,574 189,400 1,801,943
Interfund transfers -- -- --
----------- --------- -----------
NET INCREASE 873,574 189,400 1,801,943
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 2,840,111 -- 4,810,461
----------- --------- -----------
End of Year $ 3,713,685 $ 189,400 $ 6,612,404
=========== ========= ===========
</TABLE>
The accompanying notes are an integral part of these statements. Exhibit B
Page 2 of 2
<PAGE> 10
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(k) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
March 31, 1997 and 1996
- -------------------------------------------------------------------------------
1. DESCRIPTION OF PLAN
The following description of Tucker Federal Savings and Loan
Association 401(k) Savings and Employee Stock Ownership Plan (Plan) provides
only general information. Participants should refer to the Plan agreement for a
more complete description of the Plan's provisions.
General
The Plan is a defined contribution plan covering all employees of the
Company with one year of service, one thousand hours of service in the Plan
year, and who are age twenty-one or older. It is administered by an
Administrative Committee and Trustees who are employees of the Company.
Committee members are designated by the Board of Directors of Eagle Bancshares,
Inc. and Subsidiaries (Bancshares), the parent company of Tucker Federal Bank
(Company).
Prior to April 1, 1994, the retirement plan known as the Tucker Federal
Savings and Loan Association and Subsidiary 401(k) Retirement Plan did not offer
Bancshares' stock as a participant directed investment choice. Effective April
1, 1994, however, the plan and the Tucker Federal Savings and Loan Association
Employee Stock Ownership Plan were merged and the plan documents restated to
reflect the provision of both plans. Additionally, the name of the 401(k) plan
was changed to Tucker Federal Savings and Loan Association 401(k) Savings and
Employee Stock Ownership Plan. Under the Plan, participants may direct deferred
salary monies towards purchasing Bancshares' stock as a participant directed
investment choice in the Plan.
Contributions
For the years ended March 31, 1997 and 1996, employees could
contribute up to twenty-five percent of their compensation to the Plan, not to
exceed $9,500, subject to testing limitations. For the year ended March 31,
1996, employees could contribute up to twenty-five percent of their compensation
to the Plan, not to exceed $9,500. The Company matched 50% of employee
contributions up to 3% of an employee's compensation. The matching percentage
and percentage of employee's compensation the Company matches is discretionary
and can be adjusted by the Board of Directors of the Company each year.
The Company also contributes to the Plan, from its current or
accumulated net profits, an amount determined annually at the discretion of the
Company's Board of Directors. The contributions for the Plan years ending March
31, 1997 and 1996 were $250,000 each year.
The non-participant directed portion of the Plan operates as a
leveraged employee stock ownership plan and is designed to comply with Section
4975(e)(7) of the Internal Revenue Code of 1986 (Code), and the regulations
thereunder, and is subject to the applicable provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
(Continued) - 1.
<PAGE> 11
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(k) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
March 31, 1997 and 1996
- -------------------------------------------------------------------------------
Participant Accounts
Each participant's account is credited with participant voluntary
contributions and an allocation of the Company's contribution and Plan earnings.
Allocations are based on participant earnings or account balances, as defined by
the Plan Agreement. The benefit to which a participant is entitled is the
benefit that can be provided from the participant's account. Forfeited balances
of terminated participants' nonvested accounts are used to reduce future Company
contributions. Forfeitures for the years ended March 31, 1997 and 1996 were
$156,979 and $15,346, respectively. As of March 31, 1997, $776,219 of the net
asset balance represented amounts allocated to accounts of persons who, at the
financial statement date, had elected to withdraw from the Plan but had not been
paid.
Investment Elections
Participants direct their voluntary contributions and the employer
matching contributions into five investment options. Participants may change
their investment options quarterly. A description of each investment option is
provided below:
Investments through Annuity Contracts with Massachusetts Mutual:
Guaranteed Interest Fund - This fund guarantees a fixed rate of
return to participants. The fund's portfolio is composed
primarily of high quality, fixed income investments including
public bonds, private placements, commercial mortgage loans, and
short-term investments.
Balanced Fund (Separate Investment Account M) - This account
focuses on an above average rate of return over an extended
period of time consistent with the preservation of capital
values during periods of adverse market conditions. The separate
account purchases shares of MassMutual Balanced Fund - a mutual
fund which invests primarily in a mix of fixed-income and equity
securities, and money market investments. Asset allocation
targets are 45% to 65% stocks, 10% to 25% bonds, and 10% to 45%
cash. As economic and financial market conditions change, the
allocations within the ranges are adjusted to take advantage of
the changing conditions.
Core Equity Fund (Separate Investment Account A) - This account
focuses on constructing a portfolio of companies of superior
investment quality, selling at discounted valuation levels. The
separate account purchases shares of MassMutual Value Equity
Fund - a mutual fund which invests primarily in common stocks of
larger, well-established companies with market capitalizations
in excess of $2 billion and a history of operations of five
years or more.
International Equity Fund (Separate Investment Account I) -
This account purchases shares of MassMutual International
Equity Fund - a mutual fund which invests in a
(Continued) - 2.
<PAGE> 12
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(k) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
March 31, 1997 and 1996
- -------------------------------------------------------------------------------
diversified portfolio of common stocks of companies domiciled in
foreign countries and the United States. The fund generally has
75% of its assets invested in foreign countries in industries
that are expected to experience above average rates of growth
over the long term. The fund is diversified by country and
industry group to moderate risk.
Eagle Bancshares Fund - This fund allows the employees to
accumulate capital ownership of Bancshares through investments
in the publicly traded shares of Eagle Bancshares, Inc. and
Subsidiaries.
Vesting
Participants are immediately vested in their voluntary contributions
plus earnings thereon. Vesting in the remainder of their accounts is based on
years of service. Participants become fully vested after six years of service
with the Company. Vesting begins with two years of service and continues on a
sliding scale through the sixth year.
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue contributions at any time and to terminate
the Plan subject to the provisions of ERISA. In the event of Plan termination,
participants will automatically become 100% vested in their accounts.
Benefit Payments
Upon termination, retirement, death, or disability, participants may
elect to have their account balance paid in a lump sum, in installments, or to
defer commencement of benefit payments. If employment is terminated during the
Plan year for reasons other than normal retirement or death, and the
participant's account balance is $3,500 or less, a lump sum payment of the
account balance will be made during the Plan year in which the event occurs or
as soon thereafter as is reasonably practical.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan administrator to make estimates
and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results may differ from those estimates.
(Continued) - 3.
<PAGE> 13
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(k) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
March 31, 1997 and 1996
- -------------------------------------------------------------------------------
Quoted market prices are used to value investments. Net appreciation or
depreciation in fair value shown in the accompanying financial statements is
calculated by comparing the fair market value of investments to their fair
market value at the beginning of the year and to the cost of purchases made
during the year. The trustee does not distinguish between unrealized and
realized gains for reporting purposes. Transaction costs are netted against
investment income.
As of March 31, 1997 and 1996, Bancshares' stock was recorded by the
Plan at a fair value of $16.25 and $15.50 per share, respectively, adjusted for
a one hundred percent stock dividend paid December 22, 1995. Fair value is
determined by its quoted market price.
Certain administrative functions are performed by officers or employees
of the Company. No such officer or employee receives compensation from the Plan.
The majority of administrative expenses for the Plan are paid directly by the
Company.
3. INVESTMENTS
A portion of the Plan's investments are held by Massachusetts Mutual
Life Insurance Company in both pooled separate account funds and guaranteed
interest account funds. The Plan's investments are stated at fair value. The
following table presents the current value of investments at March 31, 1997 and
1996, including those representing 5% or more of the Plan's net assets.
<TABLE>
<CAPTION>
1997
Current
Value
-----
<S> <C> <C>
MassMutual Guaranteed Interest
Fund $ 970,503
MassMutual Balanced Fund 1,805 units 501,531
MassMutual Core Equity Fund 151 units 527,383
MassMutual International Equity
Fund 2,463 units 516,044
-----------
Total Investments Held by
Massachusetts Mutual at Current
Value $ 2,515,461
===========
</TABLE>
(Continued) - 4.
<PAGE> 14
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(k) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
March 31, 1997 and 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1996
Current
Value
------
<S> <C> <C>
MassMutual Guaranteed Interest
Fund $ 983,721
MassMutual Balanced Fund 1,321 units 331,327
MassMutual Core Equity Fund 114 units 342,663
MassMutual International Equity
Fund 2,855 units 484,688
-----------
Total Investments Held by
Massachusetts Mutual at Current
Value $ 2,142,399
===========
</TABLE>
Additional investments at March 31, 1997 and 1996 consist solely of
320,871 and 324,457 shares of Bancshares' common stock at a fair value of
$5,214,154 and $5,029,083 (See Note 2) and a cost of $3,144,974 and $3,077,555,
respectively.
4. TAX STATUS
The Internal Revenue Service has determined and informed the Company by
letter dated April 8, 1996, that the Plan is qualified under the appropriate
sections of the Code.
5. LOANS PAYABLE
On February 15, 1996, the Plan entered into $1,000,000 term loan
agreement with Bancshares. The loan bears interest at a rate of 8.25% annually.
The proceeds of the loan were used to purchase Bancshares' common
stock. Unallocated shares are collateral for the loan. The agreement provides
for the loan to be repaid over five years with a maturity date of April 1, 2001.
The scheduled amortization of the loan for the next four years is as follows:
<TABLE>
<S> <C>
1998 $184,998
1999 200,738
2000 217,819
2001 232,740
--------
Total $836,295
========
</TABLE>
(Concluded) - 5.
<PAGE> 15
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(k) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
#58-0674574 Plan #002
March 31, 1997
- --------------------------------------------------------------------------------
Form 5500, Item 27a - Schedule of Assets Held for Investment Purposes:
<TABLE>
<CAPTION>
Identity Current
of Issue Description Value
- -------- ----------- -----
<S> <C> <C>
MassMutual Guaranteed
Interest Fund $ 970,503
MassMutual Balanced Fund 1,805 units 501,531
MassMutual Core Equity Fund 151 units 527,383
MassMutual International Equity
Fund 2,463 units 516,044
Eagle Bancshares, Inc. and 320,871 shares
Subsidiaries of common stock 5,214,154
----------
Total Investments $7,729,615
==========
</TABLE>
Supplemental
Schedule 1
<PAGE> 16
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(k) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
#58-0674574 Plan #002
March 31, 1997
- -------------------------------------------------------------------------------
Form 5500, Item 27d - Schedule of Reportable Transactions:
There are no reportable transactions involving Banchsares' stock for
the Plan year ended March 31, 1997.
Massachusetts Life Insurance Company, the trustee of the Plan, does not
provide reportable transaction schedules.
Supplemental
Schedule 2
