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)
April 14, 2000
Carnegie Financial Corporation
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(Exact name of Registrant as specified in its Charter)
Pennsylvania 0-24579 25-1806857
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(State or other jurisdiction (SEC File No.) (IRS Employer
of incorporation) Identification Number)
17 West Mall Plaza, Carnegie, Pennsylvania 15106-2404
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (412) 276-1266
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Not Applicable
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(Former name or former address, if changed since last Report)
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INFORMATION TO BE INCLUDED IN REPORT
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Item 5. Other Events
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In conjunction with a routine regulatory examination of Carnegie
Savings Bank (the "Bank") by the Office of Thrift Supervision (the "OTS"), the
OTS requested the Bank to enter into a Supervisory Agreement (the "Agreement").
Carnegie Financial Corporation (the "Company") is the parent holding company of
the Bank.
The Agreement was signed today, April 14, 2000, (the "Effective Date")
and will, among other things, place restrictions on the Bank's growth. Under the
Agreement, the Bank may not increase its assets in an amount exceeding net
interest credited on deposit liabilities (or earnings credited on share
accounts) during any calendar quarter, without prior written approval of the
regional director of the OTS (the "Regional Director"). Additionally, the
Agreement requires the Bank or its Board of Directors to revise various policies
including 1) interest rate risk management, 2) strategic planning to improve
earnings, 3) loan documentation and underwriting policies, and 4) internal loan
and asset classifications policies. The restrictions on the Bank's operations
are immediately effective and the revision of certain of the Bank's policies
must be completed within 90 days of the Effective Date.
The Bank is a well capitalized institution and the Agreement does not
result in any interruption of the Bank's day-to-day operations. Shirley C.
Chiesa, President and Chief Executive Officer, stated that, "the Bank is taking
immediate action to comply with the Agreement."
The Bank is a federally chartered stock savings bank operating one
full-service office in Carnegie, Pennsylvania and has served its market since
1915. The Company's common stock is traded on the over-the-counter market with
quotations available through the OTC Electronic Bulletin Board under the symbol
"CAFN".
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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, thereunto duly authorized.
CARNEGIE FINANCIAL CORPORATION
Date: April 14, 2000 By: /s/Shirley C. Chiesa
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Shirley C. Chiesa
President and Chief Executive Officer
