Anchor Financial Corp. and M&M Financial Corp. Sign Definitive Agreement to Merge.MYRTLE BEACH, S.C.--(BUSINESS WIRE)--May 15, 1998--Anchor Financial Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AFSC AFSC American Friends Service Committee AFSC Alaska Fisheries Science Center AFSC Air Force Systems Command AFSC Air Force Specialty Code AFSC Air Force Space Command AFSC Armed Forces Services Corporation AFSC Army Field Support Command ) and M&M Financial Corporation, parent company of First National South and headquartered in Marion, South Carolina Marion is a city in Marion County, South Carolina, United States. The population was 7,042 at the 2000 census. It is the county seat of Marion CountyGR6. , today announced the signing of a definitive agreement to merge. The agreement has been unanimously approved by the boards of directors of both companies and is subject to the approval of shareholders of both companies and appropriate regulatory agencies. The transaction is expected to be completed in the third quarter. Upon completion, M&M Financial s First National South banking offices, with locations in Florence, Marion, Mullins, Nichols, and Myrtle Beach, South Carolina Myrtle Beach is a city and in Horry County, South Carolina, United States. It is part of the Grand Strand, a stretch of beaches along the South Carolina coastline, and the combined Myrtle Beach-Conway-North Myrtle Beach MSA. , will become part of Anchor s banking network. The result of this combination will bring Anchor Financial Corporation s asset size to more than $1 billion and expand its banking network to 28 offices in South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. and North Carolina. The proposed transaction is expected to be accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. and provides for a tax-free exchange of 0.87 shares of Anchor Financial Corporation common stock for each outstanding share of M&M Financial common stock. Based on Anchor Financial Corporation s April 28th closing stock price of $40.50 and M&M Financial s approximately 1.0 million outstanding shares of common stock, the transaction would have a value of approximately $35.24 per share, or a total purchase price of $35.5 million. The merger is expected to have a positive impact on Anchor s earnings beginning in 1999. Anchor Financial Corporation had announced a merger agreement just four weeks ago with ComSouth Bankshares, Inc., parent of the Bank of Charleston and the Bank of Columbia, and expects that merger to be completed during the third quarter of 1998. Stephen L. Chryst, president and chief executive officer of Anchor Financial Corporation, stated, The partnerships established with M&M Financial Corporation and ComSouth Bankshares fit well together and within Anchor Financial Corporation. We re pleased with the progress being made and the strength these partnerships give the Corporation. Anchor Financial Corporation, with assets of $624.7 million, is the parent of The Anchor Bank, which operates nineteen banking offices in South Carolina and North Carolina. The Anchor Bank offers a full line of banking products and services. Anchor Financial Corporation s common stock trades on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. (SM) under the symbol AFSC. M&M Financial Corporation has assets of $170 million and is the parent of First National South which offers a full line of banking products and services. -0- Safe Harbor Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Statements in this news release looking forward in time involve risks and uncertainties, including regulatory approvals, completion of the due diligence process, success of acquiring new locations and integrating newly-acquired branches, additional expansion opportunities, the effect of changing economic conditions, product demand, changes in the regulatory environment, and other risk factors detailed in Anchor s Securities and Exchange Commission filings. CONTACT: Anchor Financial Corporation Tommy E. Looper looper, name for caterpillars that move with a looping motion, including the inchworm and the cabbage looper. looper or cankerworm or inchworm , 843/946-3164 |
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