<PAGE> 1
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): June 18, 1998
LOCAL FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State of Incorporation)
001-13949 65-0424192
(Commission File No.) (I.R.S. Employer Identification No.)
3601 N.W. 63rd Street, Oklahoma City, Oklahoma 73116
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: 405-841-2298
<PAGE> 2
ITEM 5. OTHER EVENTS.
On June 18, 1998, Local Financial Corporation ("Local Financial")
announced that its wholly-owned subsidiary, Local Federal Bank, F.S.B. ("Local
Federal"), had entered into a definitive agreement to acquire BankSouth
Corporation, a state bank holding company based in Lawton, Oklahoma
("BankSouth"). The acquisition is structured as a statutory share exchange of
BankSouth's common stock for approximately $19.8 million cash and BankSouth's
redeeming $770,000 of its preferred stock. The acquisition is subject to
regulatory approval and approval of the BankSouth shareholders. BankSouth
shareholders holding a majority of the voting stock have signed the definitive
agreement. The acquisition is expected to close in late 1998 and to be accounted
for as a purchase.
The press release issued in connection with this announcement is filed
as an exhibit to this report.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibit:
See Exhibit Index following the signature page of this report, which is
incorporated herein by reference.
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.
LOCAL FINANCIAL CORPORATION
Date: June 18, 1998 By: /s/Jan A. Norton
-------------------------------
Jan A. Norton, President
<PAGE> 3
EXHIBIT INDEX
TO
FORM 8-K CURRENT REPORT
DATE OF REPORT: JUNE 18, 1998
<TABLE>
<CAPTION>
CONSECUTIVE
EXHIBIT NO. DESCRIPTION PAGE NO.
- ----------- ----------- ----------
<S> <C> <C>
Exhibit 99 Press Release dated June 18, 1998 4
</TABLE>
<PAGE> 1
EXHIBIT 99
LOCAL FINANCIAL CORPORATION ANNOUNCES ACQUISITION
Oklahoma City, Oklahoma, June 18, 1998. Local Financial Corporation
(AMEX: [LO]) announced that its wholly-owned subsidiary, Local Federal Bank,
F.S.B., has entered into a definitive agreement to acquire BankSouth
Corporation, a Lawton, Oklahoma bank holding company, for approximately $20.6
million cash, which includes the redemption of its preferred stock.
BankSouth is the holding company of Citizens Bank, which has five
branches in Lawton, Oklahoma, and one in Norman, Oklahoma. BankSouth had total
assets, deposits, and shareholders' equity of approximately $177 million, $157
million and $12 million, respectively, as of March 31, 1998.
Edward A. Townsend, Chairman and CEO, said that he is pleased by the
opportunity to expand Local's banking activities in Lawton, the third largest
city in Oklahoma and the home of Ft. Sill. "Dr. Gib Gibson, current Chairman of
Citizens Bank will continue to play a significant role with Local Federal Bank
going forward," Townsend commented.
"The merger with Local will enhance our ability to serve our local
markets and I look forward to continuing to be actively involved with the bank,"
stated Dr. Gibson.
Local Financial Corporation is a $2 billion, Oklahoma-based holding
company with 44 branches throughout the state, two of which are located in
Lawton. "Local Federal Bank will become the leading depository institution in
Lawton with deposits of approximately $230 million," commented Townsend. Local
Financial's subsidiaries include Local Federal Bank,
<PAGE> 2
F.S.B. and Local America Bank, F.S.B. The company ranks fourth in deposits among
Oklahoma depository institutions.
The acquisition is subject to regulatory approval and approval of the
BankSouth shareholders. BankSouth shareholders holding a majority of the voting
stock have signed the definitive agreement. The acquisition is expected to close
late in 1998 and will be accounted for as a purchase.
-End of Press Release-
For any questions please contact Richard L. Park, (405) 841-2298
To the extent that statements in this report relate to the plans,
objectives or future performance of Local Financial Corporation, these
statements are considered to be forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements are based
on management's current expectations and the current economic environment.
Actual events and results in future periods may differ materially from those
currently expected due to various risks and uncertainties. Additional discussion
of factors affecting Local Financial's business and prospects is contained in
its periodic filings with the Securities and Exchange Commission.
