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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): September 25, 2000
LIFE FINANCIAL CORPORATION
(Exact Name of Registrant as Specified in Charter)
0-22193
(Commission File No.)
DELAWARE 33-0743195
(State or Other Jurisdiction (IRS Employer
of Incorporation) Identification No.)
10540 Magnolia Avenue, Suite B, Riverside CA 92503-1814
(Address of Principal Executive Offices) (Zip Code)
(909) 637-4000
(Registrant's Telephone Number, Including Area Code)
Not applicable
(Former Name or Former Address, If Changed Since Last Report)
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ITEM 5. OTHER EVENTS
On September 25, 2000, we consented to the issuance of an Order to Cease
and Desist (the "Order") by the Office of Thrift Supervision (the "OTS"). The
Order requires us, among other things, to contribute $5.2 million to the capital
of Life Bank, our principal subsidiary ("Life Bank"), not later than December
31, 2000, subject to extension by the OTS. We are also required to observe
certain requirements regarding transactions with affiliates, books and records,
tax sharing arrangements with Life Bank and the maintenance of a separate
corporate existence from Life Bank.
Also, on September 25, 2000, Life Bank entered into a Supervisory Agreement
with the OTS. The Supervisory Agreement requires Life Bank, among other things,
to achieve a core capital of at least 6% and a total risk-based capital of at
least 11% by March 31, 2001. In calculating these ratios, Life Bank must risk
weight all sub-prime loans it holds at double the regularly prescribed risk
weighting. The Supervisory Agreement also requires that Life Bank add at least
two new independent members to its Board of Directors, not pay dividends without
OTS approval and revise many of its policies and procedures, including those
pertaining to internal asset review, allowances for loan and lease losses,
interest rate risk management, mortgage banking operations, liquidity, separate
corporate existence, loans to one borrower and oversight by the Board of
Directors.
We and Life Bank are required to furnish quarterly reports to the OTS
detailing our compliance, or failure to comply, with the Order and the
Supervisory Agreement.
We have retained Keefe, Bruyette & Woods as our financial advisor in
connection with the Order and the Supervisory Agreement.
The OTS has also approved the election of Steven R. Gardner as the
President and Chief Executive Officer, and Roy L. Painter as the Chief Financial
Officer, of Life Financial and Life Bank.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits.
99.1 Stipulation and Consent to Issuance of Order to
Cease and Desist executed by Life Financial Corporation
on September 25, 2000.
99.2 Order to Cease and Desist issued by the OTS on
September 25, 2000.
99.3 Supervisory Agreement dated as September 25, 2000, by and
between Life Bank and the Office of Thrift Supervision.
99.4 Press Release issued September 26, 2000.
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SIGNATURE
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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 thereunto duly authorized.
LIFE FINANCIAL CORPORATION
Dated: September 29, 2000 By: /s/ Steven R. Gardner
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Steven R. Gardner
President and Chief Executive Officer
