UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 18, 2006
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SE FINANCIAL CORP.
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(Exact name of Registrant as specified in its Charter)
Pennsylvania 0-50684 57-1199010
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1901-03 East Passyunk Avenue, Philadelphia, Pennsylvania 19148
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (215) 468-1700
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Not Applicable
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(Former name or former address, if changed since last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act
SE FINANCIAL CORP.
INFORMATION TO BE INCLUDED IN THE REPORT
Section 8 - Other Events
Item 8.01 Other Events.
The Registrant is filing this Current Report on Form 8-K to report on
certain loans held by its wholly-owned subsidiary, St. Edmond's Federal Savings
Bank (the "Bank").
1. The Bank has determined a $1.3 million construction loan that was downgraded
to substandard during the quarter ended April 30, 2006 to now be impaired. As
previously disclosed, the increase in the provision for loan losses for the nine
months ended July 31, 2006 to $368.2 thousand, as compared to $96.4 thousand for
the nine months ended July 31, 2005, was attributable to the downgrade of this
loan as well as growth of the loan portfolio. The Bank has filed to sell at
sheriff's sale all properties that are the subject of the collateral for this
loan and is seeking collection on the borrower's personal guarantee. An
additional reserve of $330,000 for this loan has been established and this
amount will be reflected in the provision for loan losses for the quarter ending
October 31, 2006. The current total reserve for this loan is approximately
$460,000. There can be no assurance, however, that additional provisions
relating to this loan will not be necessary.
2. The Bank has downgraded three participation loans to the same borrower from
special mention to substandard. The aggregate balance of the Bank's three
participation interests in loans to this borrower is $1.5 million. These loans
are secured by 58 properties, and the borrower has begun to liquidate the
properties securing the loans in order to service the principal and interest
payments. The Bank has confirmed that the lead bank on these participation loans
is also considering a classification of substandard. Additional reserves of
$119,000 for these loans have been established and this amount will be reflected
in the provision for loan losses for the quarter ending October 31, 2006. There
can be no assurance, however, that additional provisions relating to these loans
will not be necessary.
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.
SE FINANCIAL CORP.
Date: October 18, 2006 By: /s/Douglas P. Moore
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Douglas P. Moore
Chief Financial Officer