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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) September 25, 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 Jurisdiction of (Commission File (IRS Employer
Incorporation) Number) 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:
ITEM 5. OTHER EVENT
Prestige Bancorp, Inc. (the "Company") announces today that
Prestige Bank, a Federal Savings Bank (the "Bank"), a wholly owned
subsidiary of the Company, has entered into a Supervisory Agreement with
the Office of Thrift Supervision (the "OTS"). This Supervisory Agreement
formalizes the current understandings of the OTS and the Bank pursuant to
an informal directive issued by the OTS to the Bank on May 17, 2000.
In conjunction with a routine regulatory examination of the Bank
by the Office of Thrift Supervision (the "OTS"), the OTS requested the Bank
to enter into the Supervisory Agreement. The Supervisory Agreement was
signed on September 20, 2000, (the "Effective Date") and will, among other
things, place restrictions on the Bank's growth. The Bank may seek
modification of this limitation on growth by submission of a written
request to the Regional Director and by obtaining the prior written
approval of the Regional Director. Under the Supervisory Agreement, the
Bank may not increase its assets in an amount exceeding net interest
credited on deposit liabilities (or earnings credited on share accounts)
during any calendar quarter, without prior written approval of the regional
director of the OTS (the "Regional Director"). Additionally, the
Supervisory Agreement requires the Bank or its Board of Directors to review
and revise various policies including 1) interest rate risk management, 2)
strategic planning to direct the operations and affairs of the Bank and in
managing and reducing the interest rate risk of the Bank, 3) investment and
underwriting policies, 4) transactions with the
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affiliates of the Bank, and 5) internal loan and asset classifications
policies. The Supervisory Agreement continues the restriction imposed on
the Bank by the directive not to extend loans for a business purpose except
for those business loans which the Bank was committed to extend on or
before May 17, 2000 or which are loans in process. The Bank may request
prior written nonobjection of the Regional Director of a waiver of this
limitation on the extension of an individual commercial loan to a customer.
The restrictions on the Bank's operations are immediately effective and the
revision of certain of the Bank's policies must be completed within 30 days
of the Effective Date, unless extended by the OTS. As part of the
Supervisory Agreement the Bank has agreed within 30 days of the Effective
Date to retain a consultant to assist in the formation of a strategic plan
for the Bank and to assess the Bank's board, officers, management and staff
to carry out the affairs of the Bank and perform present and anticipated
duties for the Bank. The Supervisory Agreement will remain in place until
terminated by the OTS.
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 implement the Supervisory
Agreement.
John A. Stiver has determined to resign from his position as
Chairman of the Board of Directors of the Bank, although he will remain as
a director of the Bank. In addition, Mr. Stiver has resigned as the Chief
Executive Officer of the Bank and will act as the interim Chief Executive
Officer of the Bank while the Board of Directors of the Bank conducts a
search for a new Chief Executive Officer. Mr. Stiver will remain as
Chairman, CEO and President of the Company and will concentrate his efforts
on Bancorp level issues. Once appointed, the new chief executive officer of
the Bank will concentrate on addressing issues of concern under the
Supervisory Agreement and managing the business of the Bank.
The Bank is a well capitalized institution and the Supervisory
Agreement does not result in any interruption of the Bank's day-to-day
operations. Management anticipates that compliance with the Supervisory
Agreement 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".
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
The following exhibits are filed in accordance with the provisions
of Item 601 of Regulation S-K:
(c) Exhibits
(99) Additional Exhibits
99.1 Supervisory Agreement Among Prestige Bank, a
Federal Savings Bank, John A. Stiver, Patricia
A. White, James M. Hein, Charles P. McCullough,
Mark R. Schoen, Martin W. Dowling, Michael R.
Macosko, and the Office of Thrift Supervision,
U.S. Department of Treasury dated September 20,
2000. Filed herewith.
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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: September 25, 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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