FIRST SOUTHEAST FINANCIAL CORPORATION
DEFERRED COMPENSATION PLAN
FOR KEY EMPLOYEES
AND NONEMPLOYEE DIRECTORS
Financial Statements
June 30, 1996
(with Independent Auditors' Report thereon)
<PAGE> <PAGE>
FIRST SOUTHEAST FINANCIAL CORPORATION
DEFERRED COMPENSATION PLAN
FOR KEY EMPLOYEES AND NONEMPLOYEE DIRECTORS
Table of Contents
June 30, 1996
Page(s)
Independent Auditors' Report . . . . . . . . . . . . . . 1
Statement of Assets Available for Plan Benefits . . . . 2
Statement of Changes in Assets Available
for Plan Benefits. . . . . . . . . . . . . . . . . . . 3
Notes to Financial Statements. . . . . . . . . . . . . 4-5
<PAGE>
<PAGE>
Logo of
Crisp Hughes & Co., L.L.P
- Independent Auditors' Report -
The Board of Directors
First Southeast Financial Corporation
We have audited the statement of assets available for plan benefits of the
First Southeast Financial Corporation Deferred Compensation Plan for Key
Employees and Nonemployee Directors ("the Plan") as of June 30, 1996, and the
related statement of changes in assets available for plan benefits from
October 28, 1995 until June 30, 1996. These financial statements are the
responsibility of the Plan's compensation and benefits committee. Our
responsibility is to express an opinion on these financial statements based
on our audit.
We conducted our audit 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 audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets available for plan benefits of the First
Southeast Financial Corporation Deferred Compensation Plan for Key Employees
and Nonemployee Directors at June 30, 1996, and the changes in assets
available for plan benefits from October 28, 1995 until June 30, 1996, in
conformity with generally accepted accounting principles.
/s/Crisp Hughes & Co. L.L.P
Asheville, North Carolina CRISP HUGHES & CO. L.L.P
September 9, 1996
(1)
<PAGE>
<PAGE>
FIRST SOUTHEAST FINANCIAL CORPORATION
DEFERRED COMPENSATION PLAN
FOR KEY EMPLOYEES AND NONEMPLOYEE DIRECTORS
Statement of Assets Available for Plan Benefits
June 30, 1996
Assets available for plan benefits $ -
____________
See accompanying notes to financial statements.
(2)
<PAGE>
<PAGE>
FIRST SOUTHEAST FINANCIAL CORPORATION
DEFERRED COMPENSATION PLAN
FOR KEY EMPLOYEES AND NONEMPLOYEE DIRECTORS
Statement of Changes in Assets Available for Plan Benefits
For the Period October 28, 1995 to June 30, 1996
Net change to assets available for plan benefits $ -
___________
Assets available for plan benefits:
Beginning of period -
___________
End of period $ -
===========
See accompanying notes to financial statements.
(3)
PAGE
<PAGE>
This Page Was Left Blank Intentionally
PAGE
<PAGE>
FIRST SOUTHEAST FINANCIAL CORPORATION
DEFERRED COMPENSATION PLAN
FOR KEY EMPLOYEES AND NONEMPLOYEE DIRECTORS
Notes to Financial Statements
June 30, 1996
1. Summary of Significant Accounting Policies
Basis of Presentation - The accompanying financial statements of the
First Southeast Financial Corporation Deferred Compensation Plan for Key
Employees and Nonemployee Directors ("the Plan") have been prepared on
the accrual basis of accounting. Accordingly, contributions and interest
income are recorded when earned and benefits payable are recorded when
payable according to the provisions of the Plan.
The Plan was ratified by the stockholders of the Plan sponsor on October
28, 1995. The eligible key employees and nonemployee directors did not
make timely elections to participate in the current plan year.
Therefore, as of, and for, the period ended June 30, 1996, the Plan had
no participants.
2. Summary of Significant Provisions of the Plan
The following brief description of the Plan is provided for general
information purposes only. Plan participants should refer to the Plan
document for more complete information.
General - The Plan is a nonqualified plan established by First Southeast
Financial Corporation, Plan sponsor, on April 14, 1995, ratified by
stockholders on October 28, 1995, to enable key employees and nonemployee
directors of the Plan sponsor and its wholly-owned subsidiary, First
Federal Savings and Loan Association of Anderson ("Association"), to
defer compensation and meeting fees for personal income tax purposes.
The Plan is administered by the Compensation and Benefits Committee
("Committee") appointed by the Plan sponsor. The Plan is not subject to
the Employee Retirement Income Security Act of 1974.
Plan participants do not retain any proprietary interest in the Plan
sponsor or any of its assets and for all purposes are deemed to be a
general unsecured creditor of the Plan sponsor.
The interests of the Plan participants cannot be pledged or assigned and
shall not be subject to the claims of creditors of the Plan participants.
Eligibility and Contributions - The Plan covers key employees, as
designated by the Committee, and nonemployee directors of the Plan
sponsor and the Association. Participation is voluntary and participants
make no contributions to the Plan. An additional amount may be
contributed to the Plan on behalf of key employees at the sole discretion
of the Association's board of directors. All administrative costs of the
Plan are borne by the Plan sponsor.
(4)
<PAGE>
<PAGE>
FIRST SOUTHEAST FINANCIAL CORPORATION
DEFERRED COMPENSATION PLAN FOR KEY
EMPLOYEES AND NONEMPLOYEE DIRECTORS
NOTES TO FINANCIAL STATEMENTS, Continued
___________________________________________________________________________
Vesting Provisions - Participants are fully vested in the Plan at all
times.
Retirement and Death Benefits - Key employee plan participants (or their
beneficiaries, collectively "Plan Participants") are eligible for
distribution of their benefits upon retirement, death, or termination of
service as an employee. Nonemployee director plan participants (or their
beneficiaries, collectively "Plan Participants") are eligible for
distribution of their benefits upon retirement, death, or termination of
service as a director. A nonemployee director may also specify in their
election that distributions commence on any date on which the Director
attains age sixty-five without regard to whether the Director is then
serving on the Board.
(5)
<PAGE>
<PAGE>
Logo of
Crisp Hughes & Co., L.L.P
Consent of Independent Auditors
We have issued our report dated September 9, 1996, with respect to the
statements of net assets available for benefits and statement of changes in
assets available for plan benefits of First Southeast Financial Corporation
Deferred Compensation Plan for Key Employees and Nonemployee Directors (the
"Plan"). We consent to the inclusion of our report in the annual report on
Form 11-K of the Plan.
/s/Crisp Hughes & Co., L.L.P
CRISP HUGHES & CO., L.L.P.
Asheville, North Carolina
September 9, 1996
<PAGE>
