<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 (No fee required)
For the fiscal year ended March 31, 1999
----------------------------------
or
Transaction report pursuant to Section 15(d) of the Securities Exchange
- ----- Act of 1934 (No fee required)
For the transaction 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 Employees Stock Ownership Plan, 2355 Main Street, Tucker,
- ----------------------------------------------------------------------------
Georgia 30084-4442
- ---------------------
B. Name of insurer of the securities held pursuant to the plan and the
address of its principal executive office Eagle Bancshares, Inc. 4419 Cowan
----------------------------------
Road, Tucker, Georgia 30084-4441
- -----------------------------------
<PAGE> 2
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the employee benefit plan)
have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
Tucker Federal S&L Assoc. 401(K) & ESOP Plan
--------------------------------------------
(Name of Plan)
Date September 27, 1999 By /s/ Ernest F. Ritter, Jr.
------------------ -------------------------
(Signature)1
Ernest F. Ritter, Jr.
Vice President
- ---------------------------------------------
1 Print name and title of the signing official under the signature.
<PAGE> 3
TUCKER FEDERAL SAVINGS AND LOAN
ASSOCIATION
401(K) SAVINGS AND EMPLOYEE STOCK
OWNERSHIP PLAN
FINANCIAL STATEMENTS
MARCH 31, 1999 AND 1998
<PAGE> 4
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(K) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
FINANCIAL STATEMENTS
MARCH 31, 1999 AND 1998
CONTENTS
INDEPENDENT AUDITOR'S REPORT
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits
as of March 31, 1999 and 1998
Statements of Changes in Net Assets Available
for Benefits for the years ended March 31, 1999 and 1998
Notes to Financial Statements
SUPPLEMENTARY SCHEDULES:
Form 5500 Item 27a - Schedule of Assets Held
for Investment Purposes
Form 5500 Item 27d - Schedule of Reportable
Transactions
<PAGE> 5
[WINDHAM BRANNON, P.C. LETTERHEAD]
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, 1999 and 1998, and the
related statements 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 audits 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, 1999 and 1998, 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
<PAGE> 6
the 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
August 23, 1999
<PAGE> 7
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(K) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
MARCH 31, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Participant Directed
-------------------------------------------------------------------------------
Guaranteed Eagle Unallocated
Interest Balanced Core Equity International Bancshares Employer
Fund Fund Fund Equity Fund Fund Contribution
---- ---- ---- ----------- ---- ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Cash $ -- $ -- $ -- $ -- $ 26,165 $ --
--------- --------- ---------- -------- ---------- -------
Investments, at fair value
Shares of registered investment companies:
MassMutual Guaranteed Interest Fund II 924,598 -- -- -- -- --
MassMutual Balanced Fund -- 821,252 -- -- -- --
MassMutual Core Equity Fund -- -- 1,201,485 -- -- --
MassMutual International Equity Fund -- -- -- 605,262 -- --
Eagle Bancshares, Inc. Common Stock -- -- -- -- 1,466,799 --
--------- --------- ---------- -------- ---------- -------
Total Investments 924,598 821,252 1,201,485 605,262 1,466,799 --
--------- --------- ---------- -------- ---------- -------
Receivables:
Overpayments -- -- -- -- -- --
Participant contributions 9,125 12,569 26,740 9,852 25,192 --
Employer contributions 39,292 44,019 86,463 38,583 -- 32,874
--------- --------- ---------- -------- ---------- -------
Total Receivables 48,417 56,588 113,203 48,435 25,192 32,874
--------- --------- ---------- -------- ---------- -------
Total Assets 973,015 877,840 1,314,688 653,697 1,518,156 32,874
LOANS PAYABLE -- -- -- -- -- --
INTEREST PAYABLE -- -- -- -- -- --
DISTRIBUTIONS PAYABLE -- -- -- -- -- --
PENDING FUND TRANSFERS (14,859) 4,220 24,280 4,227 84,741 --
--------- --------- ---------- -------- ---------- -------
NET ASSETS AVAILABLE FOR BENEFITS $ 958,156 $ 882,060 $1,338,968 $657,924 $1,602,897 $32,874
========= ========= ========== ======== ========== =======
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Non-Participant
Directed
----------------------------
Eagle Eagle
Bancshares Bancshares
Allocated Unallocated Cash Total
--------- ----------- ---- -----
<S> <C> <C> <C> <C>
ASSETS:
Cash $ 75,322 27,921 $ 50,641 $ 180,049
----------- ---------- -------- ------------
Investments, at fair value
Shares of registered investment companies:
MassMutual Guaranteed Interest Fund II -- -- -- 924,598
MassMutual Balanced Fund -- -- -- 821,252
MassMutual Core Equity Fund -- -- -- 1,201,485
MassMutual International Equity Fund -- -- -- 605,262
Eagle Bancshares, Inc. Common Stock 4,056,077 1,498,357 -- 7,021,233
----------- ---------- -------- ------------
Total Investments 4,056,077 1,498,357 -- 10,573,830
----------- ---------- -------- ------------
Receivables:
Overpayments -- -- 32,985 32,985
Participant contributions -- -- -- 83,478
Employer contributions -- 123,037 -- 364,268
----------- ---------- -------- ------------
Total Receivables -- 123,037 32,985 480,731
----------- ---------- -------- ------------
Total Assets 4,131,399 1,649,315 83,626 11,234,610
LOANS PAYABLE -- (1,977,814) -- (1,977,814)
INTEREST PAYABLE -- (63,489) -- (63,489)
DISTRIBUTIONS PAYABLE (5,331) -- (5,305) (10,636)
PENDING FUND TRANSFERS (1,698) (22,590) (78,321) --
----------- ---------- -------- ------------
NET ASSETS AVAILABLE FOR BENEFITS $ 4,124,370 $ (414,578) $ -- $ 9,182,671
=========== ========== ======== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
1
<PAGE> 8
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(K) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
MARCH 31, 1998
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Participant Directed
-----------------------------------------------------------------------------
Guaranteed Eagle
Interest Balanced Core Equity International Bancshares
Fund Fund Fund Equity Fund Fund
---- ---- ---- ----------- ----
<S> <C> <C> <C> <C> <C>
ASSETS:
Cash $ -- $ -- $ -- $ -- $ 103,401
-------- ----------- ----------- ----------- -----------
Investments, at fair value
Shares of registered investment companies:
MassMutual Guaranteed Interest Fund II 942,779 -- -- -- --
MassMutual Balanced Fund -- 661,138 -- -- --
MassMutual Core Equity Fund -- -- 1,016,396 -- --
MassMutual International Equity Fund -- -- -- 836,849 --
Eagle Bancshares, Inc. Common Stock -- -- -- -- 1,596,536
-------- ----------- ----------- ----------- -----------
Total Investments 942,779 661,138 1,016,396 836,849 1,596,536
-------- ----------- ----------- ----------- -----------
Receivables:
Participant contributions 9,987 11,552 18,439 14,049 20,245
Employer contributions 38,797 33,679 57,896 43,590 --
-------- ----------- ----------- ----------- -----------
Total Receivables 48,784 45,231 76,335 57,639 20,245
-------- ----------- ----------- ----------- -----------
Total Assets 991,563 706,369 1,092,731 894,488 1,720,182
LOANS PAYABLE -- -- -- -- --
INTEREST PAYABLE -- -- -- -- --
DISTRIBUTIONS PAYABLE -- -- (173) -- --
PENDING FUND TRANSFERS 3,687 (1,165) (1,529) (135) (858)
-------- ----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR BENEFITS $995,250 $ 705,204 $ 1,091,029 $ 894,353 $ 1,719,324
======== =========== =========== =========== ===========
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Participant Non-Participant
Directed Directed
------------ --------------------------
Unallocated Eagle Eagle
Employer Bancshares Bancshares
Contribution Allocated Unallocated Total
------------ --------- ----------- -----
<S> <C> <C> <C> <C>
ASSETS:
Cash $ -- $ 55,642 $ -- $ 159,043
---------- ---------- ------------ ------------
Investments, at fair value
Shares of registered investment companies:
MassMutual Guaranteed Interest Fund II -- -- -- 942,779
MassMutual Balanced Fund -- -- -- 661,138
MassMutual Core Equity Fund -- -- -- 1,016,396
MassMutual International Equity Fund -- -- -- 836,849
Eagle Bancshares, Inc. Common Stock -- 5,939,364 170,107 7,706,007
---------- ---------- ------------ ------------
Total Investments -- 5,939,364 170,107 11,163,169
---------- ---------- ------------ ------------
Receivables:
Participant contributions -- -- -- 74,272
Employer contributions 22,214 -- 274,168 470,344
---------- ---------- ------------ ------------
Total Receivables 22,214 -- 274,168 544,616
---------- ---------- ------------ ------------
Total Assets 22,214 5,995,006 444,275 11,866,828
LOANS PAYABLE -- -- (165,072) (165,072)
INTEREST PAYABLE -- -- (5,036) (5,036)
DISTRIBUTIONS PAYABLE -- -- -- (173)
PENDING FUND TRANSFERS -- -- -- --
---------- ---------- ------------ ------------
NET ASSETS AVAILABLE FOR BENEFITS $ 22,214 $5,995,006 $ 274,167 $ 11,696,547
========== ========== ============ ============
</TABLE>
The accompanying notes are an integral part of these statements.
2
<PAGE> 9
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(K) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Participant Directed
----------------------------------------------------------------------
Guaranteed Eagle
Interest Balanced Core Equity International Bancshares
Fund Fund Fund Equity Fund Fund
---- ---- ---- ----------- ----
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income $ 64,298 $ 10,879 $ 8,552 $ 3,562 $ 68,688
Net appreciation (depreciation) in current value of -- 22,375 22,458 (41,598) (600,809)
investments --------- --------- ----------- --------- -----------
Total Investment Income 64,298 33,254 31,010 (38,036) (532,121)
--------- --------- ----------- --------- -----------
Participant contributions and rollovers 130,144 142,476 307,535 125,300 327,666
--------- --------- ----------- --------- -----------
Employer contributions:
Other receivables -- -- -- -- --
Employer match 45,171 47,696 94,575 41,227 --
ESOP contribution -- -- -- -- --
Forfeitures (5,879) (3,677) (8,112) (2,644) --
--------- --------- ----------- --------- -----------
Total Employer Contributions 39,292 44,019 86,463 38,583 --
--------- --------- ----------- --------- -----------
Total Additions (Reductions) 233,734 219,749 425,008 125,847 (204,455)
--------- --------- ----------- --------- -----------
DEDUCTIONS FROM NET ASSETS:
Administrative fees 4,996 4,036 6,134 3,563 --
Benefits paid to participants 268,121 40,955 172,303 310,692 98,530
Interest expense -- -- -- -- --
--------- --------- ----------- --------- -----------
Total Deductions From Net Assets 273,117 44,991 178,437 314,255 98,530
--------- --------- ----------- --------- -----------
Net increase (decrease) prior to interfund transfers (39,383) 174,758 246,571 (188,408) (302,985)
Interfund transfers 2,289 2,098 1,368 (48,021) 186,558
--------- --------- ----------- --------- -----------
NET INCREASE (DECREASE) (37,094) 176,856 247,939 (236,429) (116,427)
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 995,250 705,204 1,091,029 894,353 1,719,324
--------- --------- ----------- --------- -----------
End of Year $ 958,156 $ 882,060 $ 1,338,968 $ 657,924 $ 1,602,897
========= ========= =========== ========= ===========
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Participant Non-Participant
Directed Directed
------------ --------------------------
Unallocated Eagle Eagle
Employer Bancshares Bancshares
Contribution Allocated Unallocated Cash Total
------------ --------- ----------- ---- -----
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income $ -- $ 269,718 $ -- $ -- $ 425,697
Net appreciation (depreciation) in current value of -- (2,041,967) (418,281) -- (3,057,822)
--------- ----------- --------- -------- ------------
investments
Total Investment Income -- (1,772,249) (418,281) -- (2,632,125)
--------- ----------- --------- -------- ------------
Participant contributions and rollovers -- -- -- -- 1,033,121
--------- ----------- --------- -------- ------------
Employer contributions:
Other receivables -- -- -- --
Employer match 103,908 -- -- -- 332,577
ESOP contribution -- 127,323 123,037 -- 250,360
Forfeitures (71,034) -- -- -- (91,346)
--------- ----------- --------- -------- ------------
Total Employer Contributions 32,874 127,323 123,037 -- 491,591
--------- ----------- --------- -------- ------------
Total Additions (Reductions) 32,874 (1,644,926) (295,244) -- (1,107,413)
--------- ----------- --------- -------- ------------
DEDUCTIONS FROM NET ASSETS:
Administrative fees -- -- -- -- 18,729
Benefits paid to participants -- 391,533 -- -- 1,282,134
Interest expense -- -- 105,600 -- 105,600
--------- ----------- --------- -------- ------------
Total Deductions From Net Assets -- 391,533 105,600 -- 1,406,463
--------- ----------- --------- -------- ------------
Net increase (decrease) prior to interfund transfers 32,874 (2,036,459) (400,844) -- (2,513,876)
Interfund transfers (22,214) 165,823 (287,901) -- --
--------- ----------- --------- -------- ------------
NET INCREASE (DECREASE) 10,660 (1,870,636) (688,745) -- (2,513,876)
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 22,214 5,995,006 274,167 -- 11,696,547
--------- ----------- --------- -------- ------------
End of Year $ 32,874 $ 4,124,370 $(414,578) $ -- $ 9,182,671
========= =========== ========= ======== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE> 10
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(K) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED MARCH 31, 1998
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Participant Directed
----------------------------------------------------------------------
Guaranteed Eagle
Interest Balanced Core Equity International Bancshares
Fund Fund Fund Equity Fund Fund
---- ---- ---- ----------- ----
<S> <C> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income $ 69,745 $ 20,604 $ 13,145 $ 11,143 $ 35,165
Net appreciation in current value of investments -- 115,630 239,167 127,230 580,142
--------- ----------- ----------- ----------- ----------
Total Investment Income 69,745 136,234 252,312 138,373 615,307
--------- ----------- ----------- ----------- ----------
Participant contributions 120,573 101,032 170,796 141,356 244,955
--------- ----------- ----------- ----------- ----------
Employer contributions:
Employer match 40,174 35,076 58,610 44,142 --
ESOP contribution -- -- -- -- --
Forfeitures (1,049) (1,397) (712) (552) --
--------- ----------- ----------- ----------- ----------
Total Employer Contributions 39,125 33,679 57,898 43,590 --
--------- ----------- ----------- ----------- ----------
Total Additions 229,443 270,945 481,006 323,319 860,262
--------- ----------- ----------- ----------- ----------
DEDUCTIONS FROM NET ASSETS:
Administrative fees 5,154 3,035 3,683 3,267 --
Benefits paid to participants 117,082 35,904 45,033 22,387 81,784
Interest expense -- -- -- -- --
--------- ----------- ----------- ----------- ----------
Total Deductions From Net Assets 122,236 38,939 48,716 25,654 81,784
--------- ----------- ----------- ----------- ----------
Net increase prior to interfund transfers 107,207 232,006 432,290 297,665 778,478
Interfund transfers (20,374) (35,318) 122,849 60,105 121,944
--------- ----------- ----------- ----------- ----------
NET INCREASE 86,833 196,688 555,139 357,770 900,422
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 908,417 508,516 535,890 536,583 818,902
--------- ----------- ----------- ----------- ----------
End of Year $ 995,250 $ 705,204 $ 1,091,029 $ 894,353 $1,719,324
========= =========== =========== =========== ==========
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Participant Non-Participant
Directed Directed
------------ ---------------------------
Unallocated Eagle Eagle
Employer Bancshares Bancshares
Contribution Allocated Unallocated Total
------------ --------- ----------- -----
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Investment income
Net appreciation in current value of investments $ -- $ 155,561 $ -- $ 305,363
-- 2,207,172 82,401 3,351,742
----------- ---------- ------------ ------------
Total Investment Income -- 2,362,733 82,401 3,657,105
----------- ---------- ------------ ------------
Participant contributions -- -- -- 778,712
----------- ---------- ------------ ------------
Employer contributions:
Employer match 79,408 -- -- 257,410
ESOP contribution -- -- 274,168 274,168
Forfeitures (57,194) -- -- (60,904)
----------- ---------- ------------ ------------
Total Employer Contributions 22,214 -- 274,168 470,674
----------- ---------- ------------ ------------
Total Additions 22,214 2,362,733 356,569 4,906,491
----------- ---------- ------------ ------------
DEDUCTIONS FROM NET ASSETS:
Administrative fees -- -- -- 15,139
Benefits paid to participants -- 399,624 -- 701,814
Interest expense -- -- 58,923 58,923
----------- ---------- ------------ ------------
Total Deductions From Net Assets -- 399,624 58,923 775,876
----------- ---------- ------------ ------------
Net increase prior to interfund transfers 22,214 1,963,109 297,646 4,130,615
Interfund transfers (110,342) 110,795 (249,659) --
----------- ---------- ------------ ------------
NET INCREASE (DECREASE) (88,128) 2,073,904 47,987 4,130,615
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of Year 110,342 3,921,102 226,180 7,565,932
----------- ---------- ------------ ------------
End of Year $ 22,214 $5,995,006 $ 274,167 $ 11,696,547
=========== ========== ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE> 11
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(K) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999 AND 1998
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
Tucker Federal Bank (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 the
Company. The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA).
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, the plan and the Tucker Federal Savings and Loan
Association Employee Stock Ownership Plan were merged. The plan documents were
restated to reflect the provision of both plans. Under the Plan, participants
may direct deferred salary monies towards purchasing Bancshares' stock as a
participant directed investment choice in the Plan.
In February 1998, the Trustees of the Plan approved for inclusion into
the Plan the assets of the Southern Crescent Financial Corporation Profit
Sharing Plan ("Merged Entity"). The assets of the merged entity are
approximately $575,000, and will be rolled into the Plan in the near future.
The employees of the Merged Entity enrolled into the Plan as of April 1, 1998.
Also, the Trustees agreed to allow the Merged Entity employees having at least
one year of employment prior to April 1, 1998, to share in the March 31, 1998
ESOP contribution.
CONTRIBUTIONS
For the years ended March 31, 1999 and 1998, employees could
contribute to the participant directed portion of the Plan up to twenty-five
percent of their compensation to the Plan, not to exceed $10,000 and subject to
certain other limitations. In 1999 and 1998, the Company matched 50% of
employee contributions up to 6% 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.
5
<PAGE> 12
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(K) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999 AND 1998
The Company may also contribute to the non-participant directed
portion of the Plan, from its current or accumulated net profits, an amount
determined annually at the discretion of the Company's Board of Directors. The
Company's contributions for the Plan years ending March 31, 1999 and 1998 were
$250,000 and $274,168, respectively.
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 ERISA.
PARTICIPANT ACCOUNTS
Each participant's directed account is credited with participant
voluntary contributions, the Company's matching contribution and earnings of
their directed account. Participants having 1,000 or more hours of service
during the Plan year and being employed on the last day of the Plan year have
an ESOP account which is credited with the Company's ESOP contribution and
dividend income. The ESOP contribution is allocated in the same proportion that
the annual compensation for each participant bears to the total annual
compensation paid to all participant's for the Plan year. Dividends are
allocated based on the number of shares owned by each participant's ESOP
account. As ESOP contributions and dividend income are used by the Trust to
reduce the principle balance of any outstanding ESOP loan, Eagle Bancshare's
stock equal in value to such ESOP contributions and dividend income is
allocated to each participant's ESOP account.
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, 1999 and 1998 were
$91,346 and $60,904, respectively. As of March 31, 1999, $152,756 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. In addition, $1,811,511 of the net asset balance represented amounts
allocated to accounts of retired or separated participants entitled to receive
future benefits.
All Eagle Bancshare's stock held in the Trust shall generally be voted
by the Trustees. However, each participant may direct the Trustees as to the
exercise of any voting rights attributable to shares then allocated to
participant directed and non-participant directed Eagle Bancshare accounts. As
a matter of practice, on all shareholder voting matters the Trustees solicit
instruction from participants.
6
<PAGE> 13
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(K) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999 AND 1998
INVESTMENTS
Participants direct their voluntary contributions and the employer
matching contributions into five investment options, which may be changed
quarterly.
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.
The Plan's investments are stated at fair value. Shares of registered
investment companies owned in the Plan are valued at quoted market prices which
represent the net asset value of the securities held by the registered
investment company.
As of March 31, 1999 and 1998, Bancshares' stock was recorded by the
Plan at a fair value of $17.25 and $25.38 per share, respectively. Fair value
is determined by its quoted market price.
7
<PAGE> 14
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(K) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999 AND 1998
Purchases and sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date.
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.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets, liabilities, and
changes therein, and disclosure of contingent assets and liabilities. Actual
results could differ from those estimates.
3. INVESTMENTS
All of each participant's directed investments except Eagle Bancshares
Fund are held by Massachusetts Mutual Life Insurance Company in pooled separate
account funds and guaranteed interest account funds. A description of each
investment option follows:
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 Mass Mutual 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.
8
<PAGE> 15
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(K) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999 AND 1998
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 Mass Mutual 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 Mass Mutual International
Equity Fund - a mutual fund which invests in a 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.
Additional investments at March 31, 1999 and 1998 consist solely of
407,028 and 303,685 shares of Bancshares' common stock at a fair value of
$7,021,233 and $7,706,007 (See Note 2) and a cost of $5,593,630 and $3,361,793,
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
and was repaid during 1998.
On July 10, 1998, the Plan entered into $2,000,000 term loan agreement
with Bancshares. The loan bears interest at a rate of 8.50% 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 ten years with a maturity date of July 10, 2008.
9
<PAGE> 16
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(K) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
#58-0674574 PLAN #002
MARCH 31, 1999
Form 5500, Item 27a - Schedule of Assets Held for Investment Purposes:
<TABLE>
<CAPTION>
Identity of Issue Description Current Value
- ----------------- ----------- -------------
<S> <C> <C>
MassMutual Guaranteed
Interest Fund II $ 924,598
MassMutual Balanced Fund 2,253.2365 units 821,252
MassMutual Core Equity Fund 238.9108 units 1,201,485
MassMutual International Equity Fund 2,475.1536 units 605,262
Eagle Bancshares, Inc. 407,028 shares of common stock 7,021,233
------------
Total Investments $ 10,573,830
============
</TABLE>
10
<PAGE> 17
TUCKER FEDERAL SAVINGS AND LOAN ASSOCIATION
401(K) SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN
#58-0674574 PLAN #002
MARCH 31, 1999
Form 5500, Item 27d - Schedule of Reportable Transactions:
There are no reportable transactions involving Bancshares' stock for
the Plan year ended March 31, 1999.
Massachusetts Life Insurance Company is not required to provide
reportable transaction schedules.
11
