FORM 10-Q



                      SECURITIES AND EXCHANGE COMMISSION
                           Washington, D. C. 20549



                 QUARTERLY REPORT UNDER SECTION 13 or 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarter ended September 30, 1996   Commission file number 0-13759


                         ANCHOR FINANCIAL CORPORATION
             (Exact name of registrant as specified in its charter)



          South Carolina                                     57-0778015
(State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                        Identification number)



    2002 Oak St., Myrtle Beach, S. C.                           29577
(Address of principal executive offices)                     (Zip Code)



Registrant's telephone number, including area code  (803) 448-1411


        Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act 
of 1934 during the preceding 12 months (or for shorter period that the 
registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.

Yes  X     No     


	Indicate the number of shares outstanding of each of the issuer's 
classes of common stock, as of the latest practicable date.


           Class                             Outstanding at November 12, 1996
(Common stock, $6.00 par value)                         2,559,340


<PAGE>
                  ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES



                                      INDEX
           


                                                                       PAGE NO.


Part I - Financial Information

	Consolidated Balance Sheet - September 30, 1996
        and December 31, 1995                                             1

	Consolidated Statement of Income - Three Months
        and Nine months ended September 30, 1996 and 1995                 2

	Consolidated Statement of Cash Flows -
        Nine months ended September 30, 1996 and 1995                     3

        Notes to Consolidated Financial Statements                        4-7

	Management's Discussion and Analysis of
        Financial Condition and Results of Operation                      8-12


Part II - Other Information

        Item 1 - Legal Proceedings                                        13
        Item 2 - Changes in Securities                                    13
        Item 3 - Defaults Upon Senior Securities                          13
	Item 4 - Submission of Matters to a Vote
                    of Security-Holders                                   13
        Item 5 - Other Information                                        13
        Item 6 - Exhibits and Reports on Form 8-K                         13


<PAGE>

ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
                                                        September 30,    December 31, 
                                                            1996            1995
                                                         (Unaudited)         <F1> 
<S>                                                    <C>             <C>
Assets
Cash and due from banks                                $ 23,171,294    $ 20,516,188
Interest-bearing balances due from banks                     99,000          99,000
Investment securities:
    Held-to-maturity, at amortized cost (fair
     value of $20,461,662 in 1996 and $32,881,489
     in 1995)                                            21,126,073      31,403,494
    Available-for-sale, at fair value (amortized
     cost of $83,263,053 in 1996 and $52,407,146
     in 1995)                                            82,983,686      52,043,206
             Total investment securities                104,109,759      83,446,700

Loans                                                   322,215,245     285,129,012
    Less - unearned income                                  (23,983)        (25,477)
         - allowance for loan losses                     (3,609,181)     (3,045,656)
             Net loans                                  318,582,081     282,057,879

Premises and equipment                                   15,787,880      13,866,646
Other assets                                              9,281,935       7,520,004
             Total assets                              $471,031,949    $407,506,417

LIABILITIES AND STOCKHOLDERS' EQUITY
 Liabilities:
   Deposits:
     Demand deposits                                   $ 73,253,657    $ 61,748,670
     NOW and Money Market accounts                      207,179,821     168,984,005
     Time deposits $100,000 and over                     25,437,246      35,505,253
     Other time and savings deposits                     92,705,400      87,637,828
             Total deposits                             398,576,124     353,875,756
     Federal funds purchased and securities sold
      under agreements to repurchase                      7,493,970       1,748,127
     Other short-term borrowings                          7,468,640         954,451
     Long-term debt                                      18,000,000      15,000,000
     Subordinated notes                                   5,000,000       5,000,000
     Other liabilities                                    3,533,776       2,386,065
             Total liabilities                          440,072,510     378,964,399
 Stockholders' Equity:
   Common stock, $6.00 par value; 7,000,000 shares
    authorized; shares issued and outstanding -
    2,555,171 in 1996 and 2,540,420 in 1995              15,331,026      15,245,910
   Surplus                                                  930,033         875,331
   Retained earnings                                     15,625,033      12,964,631
   Unrealized gains (losses) on investment securities
     available-for-sale, net of tax                        (183,044)        292,755
   Unearned ESOP shares                                    (743,609)       (836,609)
             Total stockholders' equity                  30,959,439      28,542,018
             Total liabilities and
              stockholders' equity                     $471,031,949    $407,506,417

<F1>	Obtained from audited financial statements.
</TABLE>

The accompanying notes to consolidated financial statements are an integral part
of these financial statements.
<PAGE>

ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
                                    Nine months ended              Three months ended
                                      September 30,                   September 30,
                                1996             1995            1996           1995  
<S>                           <C>             <C>             <C>            <C>     
INTEREST INCOME:
Interest and fees on loans    $21,826,929     $18,550,502     $7,553,937     $6,509,009
Interest on investment
  securities:
   Taxable                      4,309,942       3,261,802      1,607,569      1,120,463
   Non-taxable                    151,273         141,624         49,750         47,450
Other interest income             267,962         346,828         41,751        267,834
  Total interest income        26,556,106      22,300,756      9,253,007      7,944,756
INTEREST EXPENSE:
Interest on deposits           10,637,068       9,135,728      3,614,580      3,288,696
Interest on short-term
  borrowings                      130,341         229,804         58,736         36,333
Interest on long-term debt        823,947         242,479        280,123        167,490
Interest on subordinated notes    329,284         330,208        110,578        111,703
  Total interest expense       11,920,640       9,938,219      4,064,017      3,604,222

Net interest income            14,635,466      12,362,537      5,188,990      4,340,534
Provision for loan losses         590,000         455,500        200,000        206,000
Net interest income after
  provision for loan losses    14,045,466      11,907,037      4,988,990      4,134,534

NONINTEREST INCOME:
Service charges on deposit
  accounts                      1,447,640       1,127,199        483,444        365,894
Commissions and fees              707,379         492,190        301,562        204,815
Trust income                      183,891         160,631         57,446         57,254
Gains on sales of
  mortgage loans                  145,467         200,867         47,247         73,212
Gains (losses) on sales of
  investment securities, net      (14,523)         36,884         (3,860)             0
Other operating income            284,002         157,665         70,377         54,039
  Total noninterest income      2,753,856       2,175,436        956,216        755,214

NONINTEREST EXPENSE:
Salaries and employee
  benefits                      6,155,825       5,316,075      2,122,853       1,888,043
Net occupancy expense             983,405         749,985        343,718         270,607
Equipment expense                 955,282         761,889        316,170         276,494
Other operating expense         3,397,331       3,189,106      1,071,834         989,585
  Total noninterest expense    11,491,843      10,017,055      3,854,575       3,424,729

Income before income taxes      5,307,479       4,065,418      2,090,631       1,465,019
Provision for income taxes      1,868,229       1,431,661        765,579         518,666
Net income                     $3,439,250      $2,633,757     $1,325,052      $  946,353
                                                                                
Net income per share           $     1.31      $     1.04     $     0.50      $     0.37
Weighted average common
  shares outstanding            2,616,014       2,540,420      2,630,707       2,540,420
</TABLE>

The accompanying notes to consolidated financial statements are an integral
part of these financial statements.
<PAGE>

ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
                                                            Nine months ended
                                                               September 30,
                                                           1996           1995
<S>                                                   <C>           <C>
Cash flows from operating activities:
 Net income                                           $ 3,439,250   $ 2,633,757
 Adjustments to reconcile net income to net cash
  provided by operating activities:
  Accretion and amortization of investment securities     (39,058)       58,716
  Depreciation of premises and equipment                  928,133       744,355
  Amortization of intangible assets                       297,748       241,926
  Provision for loan losses                               590,000       455,500
  Gains on sales of investment securities                  14,523       (36,884)
  Gains on sales of mortgage loans                       (145,467)     (200,867)
  Gains on sales of premises and equipment                  3,833       (21,730)
  Change in interest receivable                           151,921        (2,944)
  Change in prepaid expenses                               54,462       270,708
  Change in income taxes payable                            2,206        42,832
  Change in deferred taxes                               (260,434)      237,587
  Change in interest payable                              127,685       226,531 
  Change in accrued expenses                              265,370        83,838
  Origination of mortgage loans held for sale          (8,172,600)   (9,677,155)
  Proceeds from sales of mortgage loans held for sale   8,097,817    10,385,880
    Net cash provided by operating activities           5,355,389     5,442,050

Cash flows from investing activities:
 Purchase of investment securities held-to-maturity    (2,053,654)   (3,980,698)
 Proceeds from maturities of investment
   securities held-to-maturity                         12,296,120     5,943,525
 Purchase of investment securities available-
   for-sale                                           (52,074,966)  (13,489,344)
 Proceeds from sales of investment securities                      
   available-for-sale                                  10,458,539     2,286,575
 Proceeds from maturities of investment
  securities available-for-sale                        10,007,056     3,930,783
 Net change in loans                                  (36,893,953)  (27,760,287)
 Capital expenditures                                  (2,894,742)   (2,761,091)
 Proceeds from sale of premises and equipment              41,542        62,159
 Other, net                                            (1,000,595)     (541,876)
    Net cash used for investing activities            (62,114,653)  (36,310,254)

Cash flows from financing activities:
 Net change in deposits                                44,700,369    41,914,051
 Net change in federal funds purchased and
   securities sold under agreements to repurchase       5,745,843    (4,130,158)
 Net change in short-term borrowings                    6,514,189    (4,807,664)
 Proceeds from issuance of long-term debt               3,000,000    10,000,000
 Proceeds from issuance of stock in
   accordance with:
   Dividend Reinvestment Plan                              30,405             0 
   Stock Option Plan                                       74,412             0
 Net change in unearned ESOP Shares                       153,000       101,375
 Cash dividends paid                                     (803,848)     (685,912)
    Net cash provided by financing activities          59,414,370    42,391,692

Net change in cash and cash equivalents                 2,655,106    11,523,488
Cash and cash equivalents at January 1                 20,615,188    19,937,551
Cash and cash equivalents at September 30             $23,270,294   $31,461,039
</TABLE>

The accompanying notes to consolidated financial statements are an integral 
part of these financial statements.
<PAGE>

                   ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)

NOTE 1:	BASIS OF PRESENTATION

       	The accompanying consolidated financial statements are 
        unaudited; however, such information reflects all adjustments 
        (consisting solely of normal recurring adjustments) which are, 
        in the opinion of management, necessary for a fair statement of 
        the financial position and operating results of Anchor Financial 
        Corporation and its subsidiaries for the periods presented.  A 
        summary of the Corporation's significant accounting policies is 
        set forth in Note 1 to the Consolidated Financial Statements in 
        the Corporation's Annual Report on Form 10-K for 1995.

       	The results of operations for the three and nine month periods 
        ended September 30, 1996 are not necessarily indicative of the 
        results to be expected for the full year.

       	For purposes of the Consolidated Statement of Cash Flows, the 
        Corporation has defined cash and cash equivalents as cash on 
        hand, amounts due from banks, and federal funds sold. Generally, 
        federal funds are purchased and sold for one-day periods.


NOTE 2:	RESERVE FOR LOAN LOSSES

       	Activity in the reserve for loan losses for the nine months 
        ended September 30, 1996 and 1995 are summarized as follows:

<TABLE>
<CAPTION>
                                                   1996             1995 
        <S>                                     <C>              <C>
        Balance, beginning of year              $3,045,656       $2,795,941
        Provision charged to operations            590,000          455,500
        Recoveries of charged off loans            235,792           60,275
        Loans charged off                         (262,267)        (395,731)
                                                $3,609,181       $2,915,985

</TABLE>

NOTE 3: NONPERFORMING ASSETS

        The following is a summary of nonperforming assets at September 
        30, 1996 and 1995.  The income effect of interest foregone on 
        these assets is not material.  The Corporation did not have any 
        loans with reduced interest rates because of troubled debt 
        restructuring, foreign loans, or loans for highly leveraged 
        transactions.  Management is not aware of any situation, other 
        than those included in the summary below, where known information 
        about a borrower would require disclosure as a potential problem loan.

<PAGE>

                  ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                      1996              1995
        <S>                                       <C>               <C>
        Nonaccrual loans                          $  166,683        $   407,909
        Loans past due ninety days or more             8,164             39,008
        Other real estate owned                            0              6,500
        Total nonperforming assets                $  174,847        $   453,417


</TABLE>

NOTE 4:	INCOME TAXES

       	The significant components of the Corporation's deferred tax assets 
        and (liabilities) recorded pursuant to Statement of Financial 
        Accounting Standards No. 109, "Accounting for Income Taxes," and 
        included in other assets in the consolidated balance sheet, are as 
        follows:

<TABLE>
<CAPTION>


                                                       1996             1995   
        <S>                                         <C>              <C>
        Deferred tax liabilities:

        Tax depreciation over book                  ($554,331)       ($499,063)
        Net unrealized gain SFAS 115                        0          (79,966)
        Other, net                                   (220,486)        (151,839)
        Total deferred tax liabilities               (774,817)        (730,868)

        Deferred tax assets:

        Allowance for loan losses                     911,717          687,819
        Deferred loan fees and costs                  238,467          244,466
        Deferred compensation                         197,983          167,487
        Net unrealized loss SFAS 115                   96,323                0 
        Other, net                                    163,925          105,972
        Total deferred tax assets                   1,608,415        1,205,744

        Net deferred tax asset                       $833,598       $  474,876


</TABLE>
<PAGE>

                     ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
                      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                     (Unaudited)



NOTE 5: LONG-TERM DEBT
 
        Long-term debt at September 30 is summarized as follows:

<TABLE>
<CAPTION>

                                                          1996          1995 
        <S>                                           <C>           <C>
        Parent Company:

        8.60% subordinated notes due in 2003 <F2>     $ 5,000,000   $ 5,000,000

        Subsidiaries:

        5.71% Federal Home Loan Bank advance due 
          in 1998                                       5,000,000             0
        5.48% Federal Home Loan Bank advance due
          in 1999                                       3,000,000             0
        6.08% Federal Home Loan Bank advance due
          in 2000                                       5,000,000     5,000,000
        7.21% Federal Home Loan Bank advance due 
          in 2005                                       5,000,000     5,000,000

        Total long-term debt                          $23,000,000   $15,000,000


        <F2>  Debt qualifies for inclusion in the determination of total 
              capital under the Risk-Based Capital Guidelines.

</TABLE>

        The principal maturity of long-term debt for the next five years 
        subsequent to September 30, 1996 is $5,000,000 in 1998, $3,000,000 
        in 1999, $5,000,000 in 2000, and $10,000,000 there after.


NOTE 6: PER SHARE DATA

       	Net income per share is computed by dividing net income by the 
        weighted average number of shares outstanding and dilutive common 
        share equivalents using the treasury stock method.  Common share 
        equivalents include common shares issuable upon exercise of 
        outstanding stock options.  Unallocated common shares held by the 
        Employee Stock Ownership Plan are excluded from the weighted 
        average number of common shares outstanding.

<PAGE>
                   ANCHOR FINANCIAL CORPORATION AND SUBSIDIARIES
                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)


NOTE 7: IMPAIRED LOANS
			
        Adoption of SFAS Nos. 114 and 118 as of January 1, 1995 resulted 
        in the identification of certain loans which were considered 
        impaired under the provisions of SFAS No. 114.  Impaired loans 
        are loans for which it is probable that all amounts, including 
        principal and interest, will not be collected in accordance with 
        the contractual terms of the loan agreement.  Impaired (including 
        cash basis) loans at September 30, all of which are held by the 
        bank subsidiaries, are summarized in Note 3.

        At September 30, 1996, impaired loans had a related specific 
        allowance for loan losses totaling $17,000.  There were no 
        material commitments to lend additional funds to customers whose 
        loans were classified as impaired at September 30, 1996.  


NOTE 8: OTHER MATTERS

        At September 30, 1996, outstanding standby letters of credit totaled 
        $418,858.

        For the nine months ended September 30, 1996 and 1995, the 
        Corporation paid interest of $11,792,955 and $9,711,687 
        respectively.  The Corporation paid income taxes of $2,018,630 
        during the nine months ended September 30, 1996 and $1,151,242 
        during the same period in 1995.



<PAGE>
                     Management's Discussion and Analysis


Net Income

       	Net income for the third quarter of 1996 was $1,325,052 an increase of 
$378,699 or 40.0% from the $946,353 for the same period in 1995.  Net income 
per share for the third quarter increased 35.2% from $0.37 in 1995 to $0.50 
in 1996. 

        The primary factors affecting this increase were an increase of
$848,456 in net interest income and an increase in noninterest income of
$201,002.  These positive factors were partially offset by increases in
noninterest expense of $429,846 and the provision for income taxes of $246,913.
The provision for loan losses decreased slightly during this period.

        Net income for the nine months ended September 30, 1996 was $3,439,250,
an increase of $805,493 or 30.6% from the $2,633,757 for the same period in 
1995.  Net income per share for this period increased 26.8% from $1.04 in 
1995 to $1.31 in 1996.  Excluding securities transactions, net income 
increased $839,243 or 32.2%.

       	The primary factors affecting this increase were an increase of 
$2,272,929 in net interest income and an increase in noninterest income of 
$578,420.  These positive factors were partially offset by increases in 
noninterest expense of $1,474,788, the provision for income taxes of 
$436,568, and the provision for loan losses of $134,500.

        Annualized return on average total assets for the third quarter of 1996
was 1.12% compared with 0.95% in 1995.  For the nine months ended September 
30, 1996, annualized return on average total assets was 1.02% compared with 
0.94% in 1995. Annualized return on average stockholders' equity for the 
third quarter of 1996 was 16.79% compared with 13.38% in 1995. For the nine 
months ended September 30, 1996, annualized return on average stockholders' 
equity was 15.10% compared with 12.83% for the same period in 1995.

Net Interest Income

        Net interest income, the major component of the Corporation's net
income, was $5,188,990 for the third quarter of 1996, an increase of $848,456
or 19.6% from the $4,340,534 reported for the same period in 1995.  This 
increase was primarily attributed to the increased volume of earning assets 
during the period and an increase in the tax equivalent net yield on earning 
assets from 4.79% in 1995 to 4.82% in 1996.  The increased volume of earning 
assets was primarily the result of quality loan demand during the period.

        Interest income increased $1,308,251 or 16.5% for the three months
ended September 30, 1996 compared with the same period in 1995.  The increase
was due to an increase in the volume of earning assets since the yield on 
earning assets  decreased from 8.74% in 1995 to 8.58% in 1996.  Average 
loans increased $56.0 million or 21.2% and average investment securities 
increased $26.8 million or 33.5% for the third quarter of 1996 compared with 
the same period in 1995.  Average interest earning assets represented 91.6% 
of average total assets during the third quarter of 1996 compared with 91.3% 
in 1995.  The composition of average interest-earning assets changed 
slightly as the percentage of average loans to average interest-earning 
assets increased from 73.0% in 1995 to 74.5% in 1996.  A slight decrease in 
the yield on loans caused by a lower prime lending rate was the primary reason
for the decline in the yield on earning assets during the period.

<PAGE>

       	Interest expense increased $459,795 or 12.8% for the three months
ended September 30, 1996 compared with the same period in 1995.  The increase
in interest expense was due to an increase in the volume of average interest-
bearing liabilities since the rate paid on average interest-bearing 
liabilities decreased from 4.80% for the three months ended September 30, 
1995 to 4.52% for the same period in 1996.  Average interest-bearing 
liabilities increased $60.1 million or 20.2% for the third quarter of 1996 
compared with the same period in 1995.  Average interest-bearing liabilities 
represented 83.2% of funding sources during the third quarter of 1996 
compared with 82.2% in 1995.
	
       	For the nine months ended September 30, 1996, net interest income 
increased $2,272,929 or 18.4% from the same period in 1995.  The primary 
reason for this increase was the increased volume of earning assets during 
the period because the tax equivalent net yield on earning assets decreased 
from 4.88% for the first nine months of 1995 to 4.75% for the same period in 
1996.  The decrease in net yield during the third quarter primarily reflects 
the effect of a slight change in the mix of earning assets and funding 
sources.  The increased volume of earning assets was primarily the result of 
quality loan demand during the period.

        Interest income increased $4,255,350 or 19.1% for the nine months ended
September 30, 1996 compared with the same period in 1995.  The increase was 
due to an increase in the volume of average interest-earning assets since 
the yield of earning assets decreased from 8.79% in 1995 to 8.59% in 1996.  
Average loans increased $53.8 million or 21.0% and average investment 
securities increased $21.1 million or 27.5% for the nine months ended 
September 30, 1996 compared with the same period in 1995.  Average interest-
earning assets represented 91.5% of average total assets during the nine 
months ended September 30, 1996 versus 91.3% in 1995.  The composition of 
average interest-earning assets changed slightly as the percentage of 
average loans to average interest-earning assets decreased from 75.2% in 
1995 to 74.8% in 1996.

        Interest expense increased $1,982,421 or 20.0% for the nine months
ended September 30, 1996 compared with the same period in 1995.  The increase
in interest expense was due to an increase in the volume of average interest-
bearing liabilities, since the rate paid on these funds decreased during the 
period. Average interest-bearing liabilities increased $65.9 million or 
23.3% for the nine months ended September 30, 1996 compared with the same 
period in 1995.  The rate paid on average interest-bearing liabilities 
decreased slightly from 4.70% for the nine months ended September 30, 1995 
to 4.57% in 1996.  Average interest-bearing liabilities represented 84.3% of 
funding sources during the nine months ended September 30, 1996 compared 
with 83.2% in 1995.  

Provision for Loan Losses

        A $200,000 provision for loan losses was made during the third quarter
of 1996 compared with a provision of $206,000 in 1995.  The provision for loan
losses declined during the third quarter of 1996 primarily due to the 
significant decline in levels of net charge-offs and nonperforming loans. 
The provision for loan losses for the nine months ended September 30, 1996 
was $590,000 versus $455,500 for the same period in 1995.  The increase in 
the provision for loan losses for the nine months ended September 30, 1996 
was primarily due to loan growth since credit quality measures remain 
favorable.

       	At September 30, 1996 and 1995 the ratio of annualized net charge-offs
to average loans was 0.01% and 0.18%, respectively.  The ratio of nonperforming
assets to total loans and other real estate owned was 0.05% at September 30, 
1996 compared with 0.17% at September 30, 1995.

<PAGE>

        The reserve for loan losses at September 30, 1996 and December 31, 1995
represented 1.12% and 1.07% respectively of total loans outstanding.  Based 
on the current evaluation of the loan portfolio, management believes the 
reserve at September 30, 1996 is adequate to cover potential losses in the 
portfolio.

Noninterest Income

       	Noninterest income for the third quarter of 1996 increased $201,002 or 
26.6% from the same period in 1995.  Noninterest income before investment 
securities transactions for the third quarter of 1996 increased $204,862 or 
27.1% from the same period in 1995.  The primary factors attributing to this 
increase were increases in service charges on deposit accounts of $117,550 
or 32.1%, and commissions and fees of $96,747 or 47.2%.

       	The increase in service charges on deposit accounts was due to the 
significant growth in deposits and an increase in certain prices.  The 
increase in commissions and fees resulted primarily from increased revenue
generated by credit card merchant services.  During the third quarter of 1996
mortgage banking income (which includes profits from the origination and sale
of loans) decreased $25,965 or 35.5% from the same period in 1995.  The 
significant decrease in mortgage banking income was the result of lower 
refinancing activity experienced during the third quarter of 1996.     

        Noninterest income for the nine months ended September 30, 1996
increased $578,420 or 26.6% from the same period in 1995.  Noninterest income
before investment securities transactions for the nine months ended
September 30, 1996 increased $629,827 or 29.5% from the same period in 1995.
The primary factors attributing to this increase were increases in service
charges on deposit accounts of $320,441 or 28.4% and commissions and fees of
$215,189 or 43.7%. 
 
       	The increase in service charges on deposit accounts was due to the 
significant growth in deposits and an increase in certain prices.  The 
increase in commissions and fees resulted primarily from increased revenue
generated by credit card merchant services. Other operating income for the nine
months ended September 30, 1996 increased $126,337 or 80.1% from the same
period in 1995.  The increase in other operating income was primarily due to
non-recurring life insurance proceeds received from deferred compensation plans
of previous directors of $100,657.  During the first nine months of 1996 
mortgage banking income decreased $55,400 or 27.6% from the same period in 
1995.  The decrease in mortgage banking income was the result of lower 
refinancing activity experienced during the first nine months of 1996.     

Noninterest Expense

       	Noninterest expense for the third quarter of 1996 increased $429,846 
or 12.6 % from the same period in 1995.  This increase was the result of 
increases in salaries and employee benefits, net occupancy expense, and 
equipment expense caused by the Corporation's continued strong growth.  

        Salaries and employee benefits for the third quarter of 1996 increase
$234,810 or 12.4% from the same period in 1995.  This increase was 
primarily due to the increased number of employees from expansion into 
new markets and investments in new personnel to further develop the 
infrastructure of the Corporation.

        Net occupancy expense increased $73,111 or 27.0% and equipment expense
increased $39,676 or 14.4% for the third quarter of 1996 compared with 
the same period in 1995.  These increases were primarily due to the 
addition of banking locations in Mt. Pleasant, South Carolina and 
Wilmington, North Carolina.  Other operating expense for the three months 
ended September 30, 1996 increased $82,249 or 8.3% compared with the same 
period in 1995. 

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       	For the nine months ended September 30, 1996, noninterest expense
increased $1,474,788 or 14.7% from the same period in 1995.  This 
increase was the result of increases in each of the categories of 
noninterest expense again caused by the significant growth of the 
Corporation.

       	Salaries and employee benefits for the nine months ended September 30, 
1996 increased $839,750 or 15.8% from the same period in 1995.  This 
increase was primarily due to the increased number of employees from 
expansion into new markets and investments in new personnel to further 
develop the infrastructure of the Corporation.

       	Net occupancy expense increased $233,420 or 31.1% and equipment 
expense increased $193,393 or 25.4% for the nine months ended September 
30, 1996 compared with the same period in 1995.  These increases were 
primarily due to the addition of banking locations in Mt. Pleasant, South 
Carolina and Wilmington, North Carolina.  Other operating expense for the 
nine months ended September 30, 1996 increased $208,225 or 6.5% compared 
with the same period in 1995.  

Income Taxes

       	The provision for income taxes for the third quarter of 1996 increased 
$246,913 or 47.6% from the same period in 1995.  For the nine months ended 
September 30, 1996, the provision increased $436,568 or 30.5% from the same 
period in 1995.  The provision for income taxes increased in 1996 primarily 
due to higher income before taxes since tax rates remained approximately the 
same as 1995.

Financial Position

        For the third quarter of 1996, average total assets increased 18.4%
while average deposits increased 17.1% from the third quarter of 1995.  For the
nine months ended September 30, 1996, average total assets increased 21.4% 
while average deposits increased 19.8 % from the same period in 1995.

       	Due to the seasonal nature of the Myrtle Beach and Hilton Head Island 
market areas, deposit growth is strong during the summer months and loan 
demand usually reaches its peak during the winter months.  Thus, the 
Corporation historically has a more favorable liquidity position during 
the summer months.  To meet loan demand and liquidity needs during the 
winter months, the Corporation typically invests sizable amounts of its 
deposit growth during the summer months in temporary investments and 
short-term securities maturing in the winter months.  Additionally, the 
Corporation has access to other funding sources including federal funds 
purchased from  correspondent banks and a line of credit with the Federal 
Home Loan Bank ("FHLB").
	
       	The Corporation utilizes long-term advances from the FHLB as part of 
its funding strategy.  FHLB long-term advances totaled $18,000,000 at 
September 30, 1996 versus $10,000,000 at September 30, 1995.

        The Corporation continues to have a strong capital position by industry
standards with the ratio of average stockholders' equity to average total 
assets for the first nine months of 1996 being 6.7% versus 7.4% for the same 
period in 1995.  At September 30, 1996, the total risk-based capital ratio 
was 11.6% compared with 12.2% at December 31, 1995.  The leverage ratio at 
September 30, 1996 was 6.4% compared with 6.8% at December 31, 1995.

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Other Events

        On October 4, 1996, the Corporation merged its two banking
subsidiaries, The Anchor Bank and The Anchor Bank of North Carolina. The Anchor
Bank survived the merger and The Anchor Bank of North Carolina's five branch 
offices are now part of The Anchor Bank branch system.  By bringing the two 
subsidiary banks together, the Corporation will achieve greater economies of 
scale and improved efficiencies. The Anchor Bank of North Carolina customers 
continue to be served by the same employees who assisted them in the past 
and did not need to make any changes in their banking routine. Customers of 
both institutions are now able to do their banking at any of The Anchor 
Bank's eighteen branches along the coast of North Carolina and South 
Carolina.  

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                            PART II - OTHER INFORMATION


ITEM 1.	LEGAL PROCEEDINGS

        There are no material legal proceedings.

ITEM 2.	CHANGES IN SECURITIES

        None.
		
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES

        None.

ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS

        None.

ITEM 5.	OTHER INFORMATION

        None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        (a)  27 Financial Data Schedule (for SEC purposes only)

        (b)  No reports on Form 8-K have been filed during the quarter ended
             September 30, 1996.


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                                  SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.




                                          /s/ Stephen L. Chryst    
                                          Stephen L. Chryst, President and
                                            Chief Executive Officer



                                          /s/ Tommy E. Looper   
                                          Tommy E. Looper, Executive Vice
                                            President and Chief Financial
                                            Officer
	


                                          /s/ John J. Moran         
                                          John J. Moran, Senior Vice President
                                            and Comptroller




Date:  November 12, 1996

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