SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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) September 20, 2002
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METROPOLITAN FINANCIAL CORP.
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(Exact Name of Registrant as Specified in Its Charter)
Ohio 000-21553 34-1109469
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(State or Other Jurisdiction (Commission (I.R.S. Employer
Incorporation of Organization) File Number) Identification No.)
22901 Millcreek Blvd. Highland Hills, OH 44122
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(Address of Principal Executive Offices) (Zip Code)
(216) 206-6000
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(Registrant's Telephone Number, Including Area Code)
ITEM 5. OTHER EVENTS
On September 20, 2002, the Registrant issued a press release announcing an
adjustment to the value of its mortgage servicing rights and the engagement of
Ryan Beck as its financial advisor. The Registrant determined that incorrect
prepayment speed assumptions were used in its internal methodology to estimate
the market value of its mortgage servicing rights during the eighteen month
period ended June 30, 2002. An independent mortgage servicing valuation firm was
engaged to value the Registrant's mortgage servicing rights. Based on the
results of that independent valuation, the Registrant estimates that it
overstated the value of its mortgage servicing rights on its statement of
condition by approximately $5.0 million as of June 30, 2002. Furthermore, based
on an independent valuation of its mortgage servicing rights as of August 31,
2002, the Registrant estimates that the value of its mortgage servicing rights
has decreased by an additional $3.5 million between June 30, 2002 and August 31,
2002. Additionally, the Registrant has engaged Ryan Beck as a financial advisor
to evaluate strategic alternatives. The Registrant's press release is attached
as exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION, AND EXHIBITS
(c) Exhibits
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99.1 The Registrant's September 20, 2002 press release.
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.
METROPOLITAN FINANCIAL CORP.
By: /s/Kenneth T. Koehler
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Kenneth T. Koehler,
President & Chief Operating Officer
(on behalf of the Registrant)
By: /s/Marcus Faust
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Marcus Faust,
Executive Vice President & Chief Financial
Officer
By: /s/Timothy W. Esson
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Timothy W. Esson,
Vice President - Finance for the Bank
(as Principal Accounting Officer)
Date: September 24, 2002
EXHIBIT INDEX
Exhibit Number Exhibit Description
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99.1 The Company's September 20, 2002 press release.