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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) June 2, 2000
LIFE FINANCIAL CORPORATION
(Exact Name of Registrant as Specified in Charter)
DELAWARE 0-22193 33-0743195
(State or Other Jurisdiction (Commission File No.) (IRS Employer
of Incorporation) Identification No.)
10540 Magnolia Avenue, Suite B, Riverside CA 92503-1814
(Address of Principal Executive Office) (Zip Code)
(909) 637-4000
(Registrant's Telephone Number, Including Area Code)
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ITEM 5. OTHER EVENTS
On June 2, 2000 Life Financial Corporation's principal subsidiary, Life
Bank (the "Bank"), received an informal oral notice from the Office of Thrift
Supervision (the "OTS") that the OTS considers the Bank to be "adequately
capitalized." The change in the Bank's capital category from "well capitalized"
to "adequately capitalized" resulted from a determination by the OTS that for
purposes of the Bank's risk-based capital calculations, certain of the Bank's
assets which the Bank had risk-weighted in the 100% risk-weight category must
instead be treated as low-level recourse assets. This change in the risk-
weighting of these assets for risk-based capital calculations resulted in a
decrease in the Bank's risk-based capital ratios. The ratios are calculated by
dividing the amount of the Bank's regulatory capital by its risk-weighted
assets. In addition, the OTS informed the Bank that it should calculate and
present its various capital ratios based on both the assets at the end of the
relevant period and average assets during the relevant period. The Bank's risk-
based capital ratios following the OTS' determination and the ratios required to
be "adequately capitalized" are set forth below:
<TABLE>
<CAPTION>
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MARCH 31, 2000
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Actual Required
--------------------- --------------------
End of Period Amount Ratio Amount Ratio Excess/(Deficit)
------------------------------- -------- -------- -------- -------- ---------------
<S> <C> <C> <C> <C> <C>
Total Capital (to risk-weighted
assets) $25,708 8.62% $23,848 8.00% $ 1,860
Core capital (to Adjusted
tangible assets) 32,247 6.43% 20,075 4.00% 12,172
Tangible Capital (to tangible
assets) 32,247 6.43% 7,528 1.50% 24,719
Tier 1 capital (to risk-weighted
assets) 22,959 7.70% 11,924 4.00% 11,035
Average
-------------------------------
Total Capital (to risk-weighted
assets) $25,708 7.87% $26,118 8.00% $ (410)
Core capital (to Adjusted
tangible assets) 32,247 6.17% 20,899 4.00% 11,348
Tangible Capital (to tangible
assets) 32,247 6.17% 7,837 1.50% 24,410
Tier 1 capital (to risk-weighted
assets) 22,959 7.03% 13,059 4.00% 9,900
</TABLE>
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<TABLE>
<CAPTION>
DECEMBER 31, 1999
----------------------------------------------------------------
Actual Required
-------------------- --------------------
End of Period Amount Ratio Amount Ratio Excess/(Deficit)
------------------------------- -------- -------- -------- -------- ---------------
<S> <C> <C> <C> <C> <C>
Total Capital (to risk-weighted
assets) $24,573 7.45% $26,393 8.00% $(1,820)
Core capital (to Adjusted
tangible assets) 31,112 6.04% 20,617 4.00% 10,495
Tangible Capital (to
tangible assets) 31,112 6.04% 7,731 1.50% 23,381
Tier 1 capital (to
risk-weighted assets) 21,824 6.62% 13,197 4.00% 8,627
Average
-------------------------------
Total Capital (to risk-weighted
assets) $24,573 6.81% $28,868 8.00% $(4,295)
Core capital (to Adjusted
tangible assets) 31,112 5.88% 21,167 4.00% 9,945
Tangible Capital (to
tangible assets) 31,112 5.88% 7,938 1.50% 23,174
Tier 1 capital (to
risk-weighted assets) 21,824 6.05% 14,434 4.00% 7,390
</TABLE>
The percentages and ratios to be well-capitalized under prompt and corrective
action provisions as issued by the OTS are 10.0% risk-based capital, 5.0% core
capital, 2.0% tangible capital and 6.0% tier 1 risk-based capital.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial Statements of business acquired
Not Applicable
(b) Proforma Financial Information
Not Applicable
(c) Exhibits
Not Applicable
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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
By: /s/ Robert K. Riley
-------------------------------------
Robert K. Riley
President and Chief Executive Officer
June 9, 2000
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