FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 24, 2001
Klamath First Bancorp, Inc.
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(Exact name of registrant as specified in its charter)
Oregon 0-26556 93-1180440
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State or other jurisdiction Commission (I.R.S. Employer
of incorporation File Number Identification No.)
540 Main Street, Klamath Falls, Oregon 97601
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number (including area code): (541) 882-3444
Not Applicable
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(Former name or former address, if changed since last report)
Item 5. Other Events
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On April 24, 2001, the Registrant announced its new strategic direction,
including a management reorganization and balance sheet and product
restructuring.
For further information, reference is made to the Registrant's press
release dated April 24, 2001, which is attached hereto as Exhibit 99 and
incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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Exhibit
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99 Press Release dated April 24, 2001
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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, hereunto duly authorized.
KLAMATH FIRST BANCORP, INC.
/s/ Kermit K. Houser
DATE: April 24, 2001 By: --------------------------------------
Kermit K. Houser
President and Chief Executive Officer
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Exhibit 99
Press Release Dated April 24, 2001
[Klamath First Bancorp Logo]
Klamath First Bancorp Unveils New Strategic Direction
KLAMATH FALLS, Ore. -- April 24, 2001 -- Kermit Houser, President and CEO
of Klamath First Bancorp, Inc. (Nasdaq:KFBI), parent company of Klamath First
Federal Savings and Loan ("Klamath First"), today unveiled the company's new
strategic direction, designed to improve financial performance and customer
service.
"These changes included management reorganization, balance sheet and
product restructuring, much greater emphasis on sales, service and marketing,
and expansion of our delivery channels. These strategic changes and
initiatives received the unanimous approval and support of our board of
directors," said Houser.
Management Reorganization
Management changes include the promotions of Robert A. Tucker to
Executive Vice President and Chief Credit Officer; Marshall J. Alexander to
Executive Vice President, Chief Financial Officer and Investor Relations;
Craig Moore to Senior Vice President, In-House Counsel, Corporate Secretary
and Senior Internal Auditor; and, James Essany to Senior Vice President of
Marketing and Advertising.
To enhance sales, service and branch office staff development, the new
position of Branch Administrator was created, and filled by Senior Vice
President Isabel Castellanos, who came to the company with twenty-one years of
retail banking experience. The company will also hire a Commercial Banking
Administrator to build its commercial lending presence throughout its service
area.
Balance Sheet and Product Restructuring
The company determined that the traditional lending practices of booking
30 year fixed rate loans for its own portfolio no longer has the spread income
required of a high performing lending institution. The company is now selling
the majority of its new fixed rate mortgage production, both servicing
retained and servicing released, through various secondary market channels.
Greater emphasis will be placed on higher yielding/shorter term loans such as
commercial real estate lending, small business, commercial/industrial and
consumer lending.
During the past quarter, the company securitized approximately $190
million of its fixed rate loans with Fannie Mae, allowing Klamath First to
sell the securities in the open market at par or premium when appropriate. Of
the $190 million securitization, $77 million was sold for a pre-tax profit of
$2.5 million. The sale proceeds were reinvested into securities with shorter
durations and less price volatility than the previous fixed rate mortgages.
"This has improved our interest rate risk position and will provide
future cash flows to fund lending opportunities. With today's rates, we
continue to have the opportunity to sell the remaining $113 million
securitization for an additional $2.0 million profit to meet liquidity or
other needs if necessary," said Houser.
Enhancements to Sales, Service and Marketing
Houser stressed, "It is imperative that we improve our sales success with
a focus on customer service and product knowledge." To accomplish this, the
company recently launched a formalized Teller Training Program and a statewide
service and sales training program will be rolled out to all branches and
employees in May, 2001.
Expanded Delivery Channels
A new full-service branch in Redmond, Oregon is scheduled to open May 11,
2001, providing greater coverage in the fast growing area of Deschutes county.
In addition the company has received regulatory approval to establish
full-service in-store branches at Wal-Mart's newly expanding Pendleton and
Ontario, Oregon Supercenters with openings scheduled for June and July 2001.
These unique branches will be open for extended hours, seven days each week,
offering all of the company's products. "The staff at in-store branches will
work with Wal-Mart promotions to market our company's financial products in
these huge (192,000 and 145,000 square foot, respectively) Supercenters," said
Houser.
About Klamath First Bancorp, Inc.
Klamath First Bancorp, Inc. is the holding company for Klamath First
Federal Savings and Loan Association (``the Association''), which operates 36
offices in 22 counties throughout Oregon. The Association serves the State of
Oregon through these offices by offering a full range of products and
services, including commercial, consumer and real estate loans, various
checking and savings products for both the consumer and business customer, 24
hour telephone banking, and on-line banking with bill pay through its web site
http://www.klamathfirst.com/. Consolidated assets and net earnings as of the
quarter ended December 31, 2000 were $987.5 million and $1.7 million,
respectively.
Safe Harbor Clause: Except for the historical information in this news
release, the matters described herein are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 and are
subject to risks and uncertainties that could cause actual results to differ
materially. Such risks and uncertainties include those related to the economic
environment, particularly in the region where Klamath First Bancorp, Inc.
operates, competitive products and pricing, fiscal and monetary policies of
the U.S. Government, acquisitions and the integration of acquired businesses,
credit risk management, change in government regulations affecting financial
institutions, and other risks and uncertainties discussed from time to time in
Klamath First Bancorp, Inc.'s SEC filings including its 2000 Form 10-K.
Klamath First Bancorp, Inc. disclaims any obligation to publicly announce
future events or developments which affect the forward-looking statements
herein.
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Contact:
Klamath First Bancorp, Inc.
Kermit K. Houser, 541/882-3444 x133
or
Marshall J. Alexander, 541/882-3444 x120