<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 1)
HFNC Financial Corp.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, par value $.01 per share
- --------------------------------------------------------------------------------
(Title of Class of Securities)
404177-10-7
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(CUSIP Number)
Charles M. Shelton, Sr.
301 S. College Street
3600 One First Union Center
Charlotte, North Carolina 28202
Telephone:
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(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
With copies to:
Anthony Gaeta, Jr., Esq. Barney Stewart III, Esq.
Moore & Van Allen, PLLC Moore & Van Allen, PLLC
One Hannover Square, Suite 1700 100 North Tryon Street, Floor 47
Raleigh, North Carolina 27601 Charlotte, North Carolina 28202-4003
- --------------------------------------------------------------------------------
November 12, 1997
- --------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box .
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are sent.
The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934, as amended (the "Act") or otherwise subject to the liabilities of that
section of the Act but shall be subject to all other provisions of the Act.
Page 1 of 17
<PAGE> 2
CUSIP NO.: 404177-10-7
<TABLE>
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
THE SHELTON COMPANIES
IRS IDENTIFICATION NO.: 56-1195037
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
- ---------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
- ---------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
- ---------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
NORTH CAROLINA
- ---------------------------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
--------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 764,825
--------------------------------------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
--------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
764,825
- ---------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
764,825
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ---------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.45%
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14 TYPE OF REPORTING PERSON
PN
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</TABLE>
Page 2 of 17
<PAGE> 3
CUSIP NO.: 404177-10-7
<TABLE>
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
THE SHELTON FOUNDATION, INC.
IRS IDENTIFICATION NO.: 58-1596729
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT [ ]
TO ITEM 2(d) OR 2(e)
- ---------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
NORTH CAROLINA
- ---------------------------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
10,000
--------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY
--------------------------------------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
10,000
--------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
- ---------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
10,000
- ---------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ---------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
.058%
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14 TYPE OF REPORTING PERSON
CO
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</TABLE>
Page 3 of 17
<PAGE> 4
CUSIP NO.:404177-10-7
<TABLE>
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
CHARLES M. SHELTON, SR.
IRS IDENTIFICATION NO.: ###-##-####
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
- ---------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
PF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
- ---------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- ---------------------------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
--------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 809,625
--------------------------------------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
--------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
809,625
- ---------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
809,625
- ---------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ---------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.71%
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14 TYPE OF REPORTING PERSON
IN
- ---------------------------------------------------------------------------------------------------
</TABLE>
Page 4 of 17
<PAGE> 5
CUSIP NO.: 404177-10-7
<TABLE>
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
R. EDWIN SHELTON
SOCIAL SECURITY NO.: ###-##-####
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
PF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
- ---------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- ---------------------------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
--------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 804,825
--------------------------------------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
--------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
804,825
- ---------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
804,825
- ---------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ---------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.68%
- ---------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- ---------------------------------------------------------------------------------------------------
</TABLE>
Page 5 of 17
<PAGE> 6
CUSIP NO.: 404177-10-7
<TABLE>
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
SANDRA G. SHELTON
SOCIAL SECURITY NO.: ###-##-####
- ---------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS
PF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
- ---------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- ---------------------------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
--------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 40,000
--------------------------------------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
--------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
40,000
- ---------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
40,000
- ---------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ---------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.233%
- ---------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- ---------------------------------------------------------------------------------------------------
</TABLE>
Page 6 of 17
<PAGE> 7
CUSIP NO.:404177-10-7
<TABLE>
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DOROTHY M. SHELTON
SOCIAL SECURITY NO.: ###-##-####
- ---------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
- ---------------------------------------------------------------------------------------------------
3 SEC USE ONLY
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4 SOURCE OF FUNDS
PF
- ---------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
- ---------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- ---------------------------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
--------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 40,000
--------------------------------------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
--------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
40,000
- ---------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
40,000
- ---------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ---------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.233%
- ---------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- ---------------------------------------------------------------------------------------------------
</TABLE>
Page 7 of 17
<PAGE> 8
CUSIP NO.: 404177-10-7
<TABLE>
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
AMANDA S. HOUSER
SOCIAL SECURITY NO.: ###-##-####
- ---------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [X]
(b) [ ]
- ---------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ---------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS
PF
- ---------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
- ---------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- ---------------------------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
--------------------------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 4,800
--------------------------------------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
--------------------------------------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
4,800
- ---------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,800
- ---------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ---------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
.028%
- ---------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
- ---------------------------------------------------------------------------------------------------
</TABLE>
Page 8 of 17
<PAGE> 9
ITEM 1. SECURITY AND ISSUER
This statement amends and supplements the Schedule 13D relating to the
beneficial ownership of the common stock, par value $.01 per share (the "Common
Stock") of HFNC Financial Corp., a North Carolina corporation (the "Issuer")
filed jointly with the Securities and Exchange Commission (the "Commission") by
and on behalf of The Shelton Companies, Third Set Incorporated, Charles M.
Shelton, Sr., R. Edwin Shelton, Sandra G. Shelton, Dorothy M. Shelton, Amanda S.
Houser, Charles M. Shelton, Jr., Jennifer S. Eques, Winifred L. Shelton and
Lydia S. Surles (the "Original Reporting Persons").
Certain of the shares of the Common Stock included in the beneficial
ownership of the Original Reporting Persons were sold in open market
transactions more than sixty days prior to November 12, 1997. This amendment
reports the beneficial ownership of the Common Stock of the persons included
among the Original Reporting Persons who currently have a direct or indirect
ownership interest in the Common Stock. These persons are The Shelton Companies,
Charles M. Shelton, Sr., R. Edwin Shelton, Dorothy M. Shelton, Sandra G. Shelton
and Amanda S. Houser. In addition, this amendment adds The Shelton Foundation,
Inc. as an additional joint filing party. A Joint Filing Agreement is attached
hereto as Exhibit 1 with respect to the filing parties (the "Filing Parties").
ITEM 2. IDENTITY AND BACKGROUND
1. (a) The Shelton Companies, a general partnership.
(b) 3600 One First Union Center, 301 S. College Street, Charlotte,
North Carolina 28202.
(c) Real Estate and Securities Investments.
(d) No partner of The Shelton Companies was, during the last five
years, convicted in a criminal proceeding (excluding traffic violations or
similar misdemeanors).
(e) No partner of The Shelton Companies was, during the last five
years, a party to a civil proceeding of a judicial or administrative body and,
as a result of such proceeding, was or is subject to a judgment, decree or final
order enjoining future violations of, or prohibiting or mandating activities
subject to, Federal or State securities laws or finding any violation with
respect to such laws.
(f) Formed under the laws of North Carolina.
Charles M. Shelton, Sr. and R. Edwin Shelton are the general partners
of The Shelton Companies and jointly exercise dispositive and voting
power with respect to the Common Stock.
2. (a) The Shelton Foundation, Inc.
(b) 3600 One First Union Center, 301 S. College Street, Charlotte,
North Carolina 28202.
(c) Private Foundation.
Page 9 of 17
<PAGE> 10
(d) None of the officers and directors of The Shelton Foundation, Inc.
was, during the last five years, convicted in a criminal proceeding (excluding
traffic violations or similar misdemeanors).
(e) None of the officers and directors of The Shelton Foundation, Inc.
was, during the last five years, a party to a civil proceeding of a judicial or
administrative body and, as a result of such proceeding, was or is subject to a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, Federal or State securities laws or finding
any violation with respect to such laws.
(f) Incorporated under the laws of North Carolina.
The names, business addresses, present principal occupations or
employments and citizenships of the directors and officers of The
Shelton Foundation, Inc. are set forth in Schedule A.
3. (a) Charles M. Shelton, Sr.
(b) See Item 1(b) above.
(c) Mr. Shelton and R. Edwin Shelton jointly manage the business of The
Shelton Companies. For further information about the business of The Shelton
Companies, see Item 1(c) above.
(d) See Item 1(d) above.
(e) See Item 1(e) above.
(f) Mr. Shelton is a citizen of the United States.
4. (a) R. Edwin Shelton.
(b) See Item 1(b) above.
(c) Mr. Shelton and Charles M. Shelton, Sr. jointly manage the business
of The Shelton Companies. For further information about the business of The
Shelton Companies, see Item 1(c) above.
(d) See Item 1(d) above.
(e) See Item 1(d) above.
(f) Mr. Shelton is a citizen of the United States.
5. (a) Sandra G. Shelton
(b) 4417 Fox Brook Lane, Charlotte, North Carolina 28211
(c) Mrs. Shelton is a homemaker and also serves, part time, as an
officer and director of Third Set Incorporated, a real estate management
company.
(d) No.
(e) No.
(f) Mrs. Shelton is a citizen of the United States.
Mrs. Sandra Shelton owns 40,000 shares of the Common Stock. She has
orally authorized her husband, Charles M. Shelton, Sr., to exercise
dispositive power with respect to her shares and has orally agreed to
vote her shares in accordance with her
Page 10 of 17
<PAGE> 11
husband's direction. Accordingly, Charles M. Shelton, Sr. may be deemed
to share beneficial ownership with his wife of 40,000 shares of the
Common Stock.
6. (a) Dorothy M. Shelton
(b) 4329 Fox Brook Lane, Charlotte, North Carolina 28211
(c) Mrs. Shelton is a homemaker and also serves, part time, as an
officer and director of Third Set Incorporated, a real estate management
company.
(d) No.
(e) No.
(f) Mrs. Shelton is a citizen of the United States.
Mrs. Dorothy Shelton owns 40,000 shares of the Common Stock. She has
orally authorized her husband, R. Edwin Shelton, to exercise
dispositive power with respect to her shares and has orally agreed to
vote her shares in accordance with her husband's direction.
Accordingly, R. Edwin Shelton may be deemed to share beneficial
ownership with his wife of 40,000 shares of the Common Stock.
7. (a) Amanda S. Houser
(b) 3904-D Colony Road, Charlotte, North Carolina 28211.
(c) Mrs. Houser serves as the president of de la Maison, Inc., an
interior design company.
(d) No.
(e) No.
(f) Mrs. Houser is a citizen of the United States.
Ms. Houser owns 4,800 shares of the Common Stock. She has orally
authorized her father, Charles M. Shelton, Sr., to exercise dispositive
power with respect to her shares and has orally agreed to vote her
shares in accordance with her father's direction. Accordingly, Charles
M. Shelton, Sr. may be deemed to share beneficial ownership of 4,800
shares of the Common Stock.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
The Common Stock purchased in open market transactions by The Shelton
Companies and The Shelton Foundation, Inc. reported in Item 5 was acquired with
cash held by each such person.
ITEM 4. PURPOSE OF TRANSACTION
The persons filing this Amendment who purchased shares of the Common
Stock within sixty days prior to November 12, 1997, and the persons filing this
Amendment that hold shares of the Common Stock, acquired and hold the shares for
investment and to take such actions as they deem appropriate to enhance the
value of their investment. In this regard, the Filing Parties:
Page 11 of 17
<PAGE> 12
(a) may acquire additional shares of the Common Stock through open
market or privately negotiated transactions or may dispose of some or all of
their shares of Common Stock in open market or negotiated transactions;
(b) may seek to encourage an extraordinary corporate transaction
involving the sale of the Issuer through a merger or other acquisition
transaction with another financial services institution that would be profitable
to the Filing Parties;
(c) have, through a financial adviser, asked the Issuer to purchase all
or some of the Common Stock held by the Filing Parties which request was
refused, and may again ask the Issuer to institute, as permitted by applicable
law, a Common Stock buyback program to repurchase some or all of the Common
Stock held by the Filing Parties in one or more negotiated transactions or to
repurchase shares of the Common Stock in open market transactions, either of
which may involve the use of a material amount of the assets of the Issuer or
its subsidiaries.
(d) may propose or support, alone or together with other shareholders,
candidates for election as directors of the Issuer, including candidates to
replace some or all of the existing directors of the Issuer, and to seek, alone
or in conjunction with other shareholders, changes in the senior management of
the Issuer, including, if deemed appropriate by the Filing Parties, the
commencement of a proxy contest in connection with the election of directors at
the Issuer's next annual meeting of shareholders;
(e) may encourage the Issuer , subject to compliance with applicable
law , to declare and pay a special cash dividend to its shareholders if such a
dividend would enhance the acquisition value of the Issuer to another financial
services institution;
(f) may propose or support changes in the Issuer's Articles of
Incorporation that:(i), subject to certain exceptions, restrict beneficial
ownership of the Common Stock by a person or common group to not more than ten
percent to permit the Filing Parties, alone or together with other persons (if
the Filing Parties should decide to do so) to beneficially own more than ten
percent of the Common Stock without acquiring control of the Issuer; (ii)
currently prevent shareholders from calling a special meeting of the
shareholders; and (iii)prohibit shareholders from removing directors without
cause;
(g) may encourage, propose or support the formation of a special
committee of the Board of Directors of the Issuer (composed solely of
nonemployee directors) to vigorously explore alternative measures to maximize
shareholder value and the formation of a special committee of shareholders to
serve as an advisory body to a special committee of the Board of Directors to
aid and assist in maximizing shareholder value;
Page 12 of 17
<PAGE> 13
The Filing Parties are not considering taking any action contemplated
by subparagraphs (h) and (i) of this Item 4 except to the extent, as described
in subparagraph (b) above, any such action may result from the merger or other
acquisition of the Issuer by a third party.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) The Filing Parties currently may be deemed to be the beneficial
owners of 859,625 shares, or 5.0%, of the Issuer's Common Stock. Such shares are
held as set forth below:
Percentage of
Name of Person/Entity Shares Owned Common Stock
--------------------- ------------ ------------
The Shelton Companies 764,825 4.45%
The Shelton Foundation, Inc. 10,000 .058
Sandra G. Shelton 40,000 .233
Dorothy M. Shelton 40,000 .233
Amanda S. Houser 4,800 .028
(b) Of the 859,625 shares of the Common Stock beneficially owned by the
Filing Parties, Charles M. Shelton, Sr. and R. Edwin Shelton share dispositive
and voting power with respect to 764,825 shares held by The Shelton Companies,
The Shelton Foundation, Inc. has sole voting and dispositive power with respect
to its shares, Charles M. Shelton, Sr. shares dispositive and voting power with
respect to the 40,000 shares and 4,800 shares owned by Sandra G. Shelton and
Amanda S. Houser, respectively, and R. Edwin Shelton shares dispositive and
voting power with respect to the 40,000 shares owned by Dorothy M. Shelton.
(c) During the past 60 days, The Shelton Foundation, Inc. purchased
10,000 shares of Common Stock on October 22, 1997 in an open market transaction
at a price of $15.625 per share and The Shelton Companies purchased 5,306 shares
of Common Stock on October 31, 1997 in an open market transaction at a price of
$14.625 per share.
(d) Not applicable.
(e) The Filing Parties ceased to be the beneficial owners of more than
five percent of the Common Stock of the Issuer on September 30, 1997.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIP WITH RESPECT TO
SECURITIES OF THE ISSUER
See Item 2 for a description of the understandings and relationships
among the Filing Parties.
Page 13 of 17
<PAGE> 14
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Exhibit Number Description
-------------- -----------
1. Joint Filing Agreement of The Shelton Companies, The
Shelton Foundation, Inc., Charles M. Shelton, Sr., R.
Edwin Shelton, Sandra G. Shelton, Dorothy M. Shelton
and Amanda S. Houser
Page 14 of 17
<PAGE> 15
SCHEDULE A
INFORMATION CONCERNING DIRECTORS AND OFFICERS OF THE SHELTON FOUNDATION, INC.
CHARLES M. SHELTON, SR. - President and Director
a) Business Address: 3600 One First Union Center, 301 S. College Street,
Charlotte, North Carolina 28202
b) Principal Occupation
or Employment: General Partner of The Shelton Companies
(c) Citizenship: United States
AMANDA S. HOUSER - Vice President and Director
a) Business Address: 3904-D Colony Road,
Charlotte, North Carolina 28202
b) Principal Occupation
or Employment: President of de la Maison, Inc., an interior
design company
(c) Citizenship: United States
R. EDWIN SHELTON - Secretary, Treasurer and Director
a) Business Address: 3600 One First Union Center, 301 S. College Street,
Charlotte, North Carolina 28202
b) Principal Occupation
or Employment: General Partner of The Shelton Companies
(c) Citizenship: United States
BALLARD G. NORWOOD - Vice President, Assistant Secretary and Director
a) Business Address: 3600 One First Union Center, 301 S. College Street,
Charlotte, North Carolina 28202
b) Principal Occupation
or Employment: Executive Vice President of Third Set Incorporated,
a real estate management company
(c) Citizenship: United States
LYDIA S. SURLES - Vice President and Director
a) Home Address: 5708 Camilla Drive
Charlotte, North Carolina 28226
b) Principal Occupation
or Employment: Homemaker
(c) Citizenship: United States
Page 15 of 17
<PAGE> 16
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: November 18, 1997
THE SHELTON COMPANIES
By: /s/ Charles M. Shelton, Sr.
-------------------------------------------
Charles M. Shelton, Sr., General Partner
THE SHELTON FOUNDATION, INC.
/s/ Charles M. Shelton, Sr., President
------------------------------------------
Charles M. Shelton, Sr., President
/s/ Charles M. Shelton, Sr.
------------------------------------------
Charles M. Shelton, Sr.
/s/ R. Edwin Shelton
------------------------------------------
R. Edwin Shelton
/s/ Sandra G. Shelton
------------------------------------------
Sandra G. Shelton
/s/ Dorothy M. Shelton
------------------------------------------
Dorothy M. Shelton
/s/ Amanda S. Houser
------------------------------------------
Amanda S. Houser
Page 16 of 17
<PAGE> 17
Exhibit I
Joint Filing Agreement
In accordance with Rule 13d-1(f) under the Securities Exchange Act of
1934, as amended, the persons named below agree to the joint filing on behalf of
each of them of Amendment No. 1 to Schedule 13D (including any amendments
thereto) with respect to the common stock, par value $.01 per share, of HFNC
Financial Corp., a North Carolina corporation, and further agree that this Joint
Filing Agreement be included as an exhibit to such joint filings. In evidence
thereof, the undersigned parties, each being duly authorized, hereby execute
this Agreement on the 18th day of November, 1997.
THE SHELTON COMPANIES
By: /s/ Charles M. Shelton, Sr.
--------------------------------------
Name: Charles M. Shelton, Sr.
Title: General Partner
/s/ Charles M. Shelton, Sr.
------------------------------------------
Charles M. Shelton, Sr.
/s/ R. Edwin Shelton
------------------------------------------
R. Edwin Shelton
/s/ Sandra G. Shelton
------------------------------------------
Sandra G. Shelton
/s/ Dorothy M. Shelton
------------------------------------------
Dorothy M. Shelton
/s/ Amanda S. Houser
------------------------------------------
Amanda S. Houser
THE SHELTON FOUNDATION, INC.
By: /s/ Charles M. Shelton, Sr.
---------------------------------------
Name: Charles M. Shelton, Sr.
Title: President
Page 17 of 17
