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)
May 25, 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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As disclosed in the Company's March 31, 2000 Form 10-QSB, the
Supervisory Agreement (the "Agreement") entered into with the Office of Thrift
Supervision (the "OTS") identifies the Company's wholly owned subsidiary,
Carnegie Savings Bank (the "Bank"), interest rate levels as unacceptably high
and required the Bank to develop and pursue strategies to reduce interest-rate
risk ("IRR"). The Bank is currently working to take decisive action on its IRR
position. In accordance, with its asset and liability management plan, the board
of directors decided to lessen its IRR position by selling a portion of its
available for sale securities portfolio while simultaneously extending the terms
of the Company's borrowings. In implementing these strategies, the board of
directors attempted to balance the need to improve its interest rate risk
against the impact such restructurings will have on immediate and future
profitability. Accordingly, on May 25, 2000, the Company sold $2.7 million of
its available for sale securities and incurred a pre-tax loss of approximately
$295,000. With the proceeds of such sales and the extension of borrowings, the
Company paid down $4.3 million of its short term borrowings. Although this
strategy is expected to reduce the Bank's IRR in the short term, there is no
assurance that any additional restructurings in compliance with the Agreement
will not further adversely affect the Company's current income. The Agreement
will remain in place until terminated by the OTS.
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: June 8, 2000 By: /s/Shirley C. Chiesa
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Shirley C. Chiesa
President and Chief Executive Officer