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):
June 18, 2002
OHIO LEGACY CORP
(Exact name of registrant as specified in its charter)
Ohio 000-31673 34-1903890
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(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
305 West Liberty Street, Wooster, Ohio 44691
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(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code: (330) 263-1955
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N/A
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(Former name or former address, if changed since last report)
Item 5. Other Events
On June 18, 2002, each member of the Board of Directors of the
Registrant's wholly owned subsidiary, Ohio Legacy Bank, National Association,
Wooster, Ohio (the "Bank"), signed a formal agreement ("Agreement") with the
Office of the Comptroller of the Currency ("OCC") to address certain issues
raised at the Bank's January 28, 2002 examination. Under the Agreement, the Bank
is required to adopt and implement certain plans, policies and strategies
including a strategic and related staffing plan, management information system
and information security programs, and an independent, ongoing review system for
the Bank's loan and lease portfolios. In addition, the Agreement requires that
the Bank achieve, by June 30, 2002, and thereafter maintain, Tier I capital of
at least 11% of risk-weighted assets and Tier I capital of at least 8% of
adjusted total assets. Within ninety (90) days, the Bank also must develop a
three (3) year capital program which must include specific plans for
maintaining capital at these levels, growth projections, consideration of
sources and types of additional capital, and contingency plans should primary
capital sources become unavailable. The Agreement further provides that until
the Bank has received no supervisory objection to its Capital Plan and until it
has received notice that the Bank has achieved compliance with the OCC-approved
Strategic and Staffing Plan, the Bank's asset growth cannot exceed five percent
(5%) per calendar quarter.
Additionally, the Agreement prohibits the Board of Directors from
declaring or paying any dividends unless the Bank is in compliance with (1)
certain statutory requirements, its approved capital program, and the Tier I
capital levels set forth in the Agreement, and (2) has notified the OCC. As a
holding company without significant assets other than its ownership of the Bank,
the Registrant's ability to meet its cash obligations is dependent upon the
payment of dividends by the Bank.
At March 31, 2002 (the last call report), the Bank had Tier I
capital of 15.27% of risk-weighted assets and Tier I capital of 10.79% of
adjusted total assets. The June 30 quarter ending call report is not due to be
filed until the end of July 2002. Management believes that the required ratios
will be met as of June 30, 2002 as required. Management believes that it will be
able to adopt and implement the various plans, policies and strategies required
by the Agreement. However, no assurances can be given that management will be
successful in such efforts.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf of
the undersigned hereunto duly authorized.
OHIO LEGACY CORP
By: /s/ L. Dwight Douce
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Name: L. Dwight Douce
Title: President,
Chief Executive Officer,
and Director
Date: July 8, 2002