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
June 28, 2000
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(Date of earliest event reported)
Pittsburgh Financial Corp.
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(Exact name of registrant as specified in its charter)
Pennsylvania 0-27522 25-1772349
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
225 Ross Street, Pittsburgh, Pennsylvania 15219
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(Address of principal executive offices) (Zip Code)
(412) 227-1945
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(Registrant's telephone number, including area code)
N/A
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(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS
Pittsburgh Financial Corporation (the "Company") is a registered bank
holding company that holds all of the issued and outstanding shares of
Pittsburgh Savings Bank (dba BankPittsburgh) (the "Bank"). As a Pennsylvania-
chartered savings bank the deposits of which are insured by the Federal
Deposit Insurance Corporation ("FDIC"), the Bank is subject to the
supervision, examination and regulation of the Pennsylvania Department of
Banking (the "Department") and the FDIC (collectively, the Department and the
FDIC are referred to herein as the "Regulators"). The Regulators have
recently completed an examination of the Bank pursuant to which the Regulators
found certain risk management practices of the Bank were deficient and resulted
in less than satisfactory liquidity and interest rate risk positions. Although
the Regulators also concluded that capital and earnings were adequate and that
asset quality had improved and was considered strong, the Regulators
determined that the Bank should enter into a Memorandum of Understanding
("MOU") with the Regulators in order to ensure that the Bank takes appropriate
steps to improve its liquidity and interest rate risk management position. On
June 28, 2000, the Bank's Board of Directors entered into an MOU with the
Regulators that requires the Bank to initiate various procedures to improve
its funds management and interest rate risk management practices.
The MOU requires that the Bank implement the policies and take the
various actions discussed in this paragraph within 60 days of June 28, 2000.
Among the actions required by the MOU is the development by the Bank of a
funding plan (the "Funding Plan") to establish objectives to improve the
Bank's liquidity and funds management practices. The Funding Plan will
include, at a minimum, strategies to: (1) reduce dependence on short-term
borrowings; (2) improve liquidity levels; (3) improve the level of core
deposits; and (4) reduce the level of pledged assets. The MOU requires the
Bank to submit the Funding Plan to the Regulators for their approval. Until
the Funding Plan receives regulatory approval, the Bank's asset growth is
limited to growth that can be funded through internal sources or core deposit
growth. Pursuant to the MOU, the Bank also has agreed to revise its
Contingency Liquidity Policy to include all realistic available options to the
Bank in the event of liquidity problems and a detailed description of the
steps that would be taken under each option to access funds. The Bank will
also (1) ensure that adequate personnel are in place to measure, monitor and
control levels of interest rate risk; (2) improve interest rate risk and
liquidity monitoring tools; and (3) institute a system of internal,
independent review of reports prepared for the Bank's board of directors and
its committees. Quarterly reports will be submitted by the Bank to the
Regulators describing the actions taken to ensure compliance with the MOU.
The Bank has already begun to take various actions to implement the
requirements of the MOU. It believes that the adoption of new policies, the
revisions to existing policies and procedures and the implementation of the
other changes required by the MOU will improve the Bank's funds management and
risk management practices.
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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.
PITTSBURGH FINANCIAL CORP.
Date: June 30, 2000 By: /s/ J. Ardie Dillen
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J. Ardie Dillen
Chairman of the Board, President and
Chief Executive Officer
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