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
Date of Report (Date of earliest event reported): July 9, 1998
CRESTAR FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Virginia 1-7083 54-0722175
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
919 East Main Street 23261-6665
Richmond, Virginia (Zip Code)
(Address of principal executive offices)
(804) 782-5000
(Registrant's telephone number, including area code)
Item 5. Other Events
This Current Report on Form 8-K is being filed in order to include as an
exhibit hereto the July 9, 1998 press release issued by Crestar Financial
Corporation announcing the purchase by Fleet Financial Group of a portion of
Crestar Bank's bank card loan portfolio. Under terms of the transaction, Crestar
Bank anticipates recording a gain, net of transaction costs, of approximately
$54 million (pre-tax). Crestar Bank is a wholly-owned subsidiary of Crestar
Financial Corporation.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Financial Statements of Businesses Acquired.
None.
(b) Pro Forma Financial Information.
None.
(c) Exhibits.
Exhibit No. 99.1 Press release dated July 9, 1998.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CRESTAR FINANCIAL CORPORATION
Date: July 9, 1998 By: /s/ James D. Barr
-----------------
James D. Barr
Group Executive Vice President,
Controller and Treasurer
EXHIBIT 99.1
[Crestar logo]
News
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Contact: Barry Koling Eugene S. Putnam, Jr.
Corporate Communications Investor Relations
(804) 782-7845 (804) 782-5619
For Release July 9, 1998
Fleet Financial Group To Purchase Block of Crestar Bank Card Accounts
Richmond, Virginia -- Crestar Bank announced today that Fleet Financial Group
will purchase an unspecified portion of Crestar's $1.1 billion bank card
portfolio. The accounts and balances represent performing loans to borrowers
located outside Crestar's primary geographic market of
Virginia-Maryland-Washington, D.C. Crestar continues as a major provider of bank
cards and other consumer finance products.
Under terms of the transaction announced today, Crestar anticipates recording a
gain, net of transaction costs, of approximately $54 million. Crestar
anticipates a portion of the gain will be used to cover certain incremental
expenses during the third quarter of 1998, with the balance reflected in third
quarter earnings.
"The sale of this portion of our bank card portfolio is consistent with
Crestar's stated strategy of focusing primarily on providing a wide range of
financial services to customers in our geographic footprint," said William V.
Bunting, Crestar's Group Executive Vice President for Consumer Finance. Mr.
Bunting said the decision to sell a portion of the bank card portfolio was made
as part of Crestar's process of "always looking at individual business lines to
ensure consistency with corporate strategic considerations."
Mr. Bunting said approximately 75 employees are affected by the sale but that no
layoffs will occur. All employees involved will be offered opportunities to fill
existing and upcoming vacancies within Crestar.
Crestar Bank is a unit of the $26.2 billion-asset Crestar Financial Corporation,
based in Richmond, Virginia. Crestar offers a broad range of financial services
to consumers, businesses, institutions and governmental customers in Virginia,
Maryland and Washington, D.C. Crestar's multi-channel distribution system
includes 396 banking offices, 684 ATMs and a complete range of 24-hour
electronic banking alternatives such as telephone, PC and Internet banking.
Other Crestar subsidiaries provide insurance, mortgage banking, equipment and
automobile leasing and full-service securities and investment advisory services.
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