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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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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) May 17, 2000
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Prestige Bancorp, Inc.
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(Exact Name of Registrant as Specified in Charter)
Pennsylvania 33-32692 25-1785128
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(State or Other (Commission File Number) (IRS Employer
Jurisdiction of Incorporation) Identification No.)
710 Old Clairton Road, Pleasant Hills, PA 15236
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (412) 655-1190
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Reasons for Report:
Prestige Bancorp, Inc. (the "Company") announces today that it is
taking immediate action to comply with an informal supervisory directive issued
by the Office of Thrift Supervision (the "OTS") to Prestige Bank, a Federal
Savings Bank (the "Bank") during a routine regulatory examination of the Bank.
The Company is the parent holding company of the Bank.
The informal directive was issued May 17, 2000 and is effective as of
that date (the "Effective Date") and will among other things, place restrictions
on the Bank's growth. Accordingly, during each calendar quarter, the Bank may
have an increase in assets in an amount not to exceed net interest credited on
deposit liabilities. The Bank may seek modification of this restriction by
submission of a written request to the assistant regional director of the OTS.
Additionally, the Bank is to limit the extension of loans for a business purpose
to those which have been committed to on or before the Effective Date or those
which are loans in process. The OTS has also directed the Bank to take actions
to review and revise its operational policies and procedures to correct
weaknesses in the Bank's commercial lending activities, the asset quality of the
commercial loan portfolio, the Bank's loan administration and the Bank's
internal review procedures concerning loan classifications for its various
loans. In conjunction with the OTS, the Bank is evaluating the level of its loan
loss reserves and this review may result in requiring further additions to the
loan loss reserves.
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The Company agrees with the OTS that the foregoing measures will assist
the Bank in managing asset quality and interest rate risk. The Company will work
closely with the OTS to formalize arrangements concerning the Bank's operations
and activities. The Bank is a well capitalized institution and this directive
does not result in any interruption of the Bank's day-to-day operations.
Management anticipates that compliance with this directive will not alter the
Bank's classification as a well capitalized institution.
The Bank is a federally chartered stock savings bank with its corporate
office in Pleasant Hills, Pennsylvania, and branch offices in Mt. Oliver,
Pleasant Hills, Bethel Park, Elizabeth and Washington, Pennsylvania. It has been
in existence since 1935. The Company's common stock is traded on the
over-the-counter market with quotations available through NASDAQ under the
symbol "PRBC".
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.
Date: May 24, 2000
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Registrant: PRESTIGE BANCORP, INC.
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Signature: /s/ John A. Stiver
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Title: President
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