Exhibit 99
Press Release dated November 16, 2000
FOR IMMEDIATE RELEASE Contact: R.K. Guillaume (502) 562-5802
-or-
John Rippy (502) 562-7975
BANK OF LOUISVILLE TO APPEAL JUDGES RULING IN 7-YEAR-OLD
KENTUCKY CENTRAL LIFE CASE
LOUISVILLE, November 16, 2000 (AMEX Symbol: MAB)-- Bank of
Louisville, principal subsidiary of MidAmerica Bancorp, reported
today it will appeal the partial summary judgment issued
November 14, 2000, in Franklin Circuit Court that calls for the
Bank to pay $16.5 million to the State of Kentucky in a 7-year-
old case arising from the collapse of Kentucky Central Life
Insurance Company.
We strongly disagree with the findings and conclusions of the
recently appointed special judge and will immediately proceed to
appeal this decision, said Jonathan Goldberg, attorney for Bank
of Louisville.
While Judge Roy N. Vance who in September 2000 became the
third judge to preside over the case ruled in the Banks favor
on a number of important counts, Bank of Louisville disagrees
with the ruling that calls for it to pay $16.5 million to
Kentucky Centrals Liquidator, the Kentucky Department of
Insurance.
We are confident the Bank will prevail in the appeal process,
said R.K. Guillaume, Vice Chairman and Chief Executive Officer
of Bank of Louisville. We look at this latest decision as a
bump in the road this has been a 7 year process, and we dont
expect any final results in the near term.
Contrary to the judges ruling, Bank of Louisville maintains that:
* Bank of Louisville properly exercised its rights under the
enforceable loan documents executed by Dudley and Donald Webb,
their affiliated companies and Kentucky Central.
* The Webbs and Kentucky Central Life entered into the loan
documents with full knowledge of the Banks rights and upon
their receipt of adequate consideration from Bank of
Louisville. Bank of Louisville took as collateral an
assignment of Kentucky Centrals obligation to purchase real
estate owned by Webb concerns and agreed with the Webbs and
Kentucky Central Life to extend the time for Kentucky Central
Life to purchase that real estate.
* The documents allowed Bank of Louisville to sell the
securities upon default under the terms of the loan documents.
While the Bank is currently evaluating the possible financial
impact of the courts decision, it expects during the fourth
quarter to establish a reserve for this contingency in
accordance with applicable accounting principles. Preliminary
estimates indicate the expense could be as much as $30 million,
or $19.5 million on an after-tax basis.
Both the Bank and MidAmerica will remain well-capitalized for
bank regulatory purposes after the expected charge, which will
not impair MidAmericas ability to continue to pay dividends in
accordance with its current practices.
MidAmerica Bancorp is the largest independent locally managed
banking company in the Louisville metropolitan area, with
approximately $1.6 billion in assets and 29 banking centers.
# # #
The statements contained in this press release that are not
purely historical are forward-looking statements. Words such as
believe, estimates, plan, expects, similar expressions
are intended to identify forward-looking statements. All
forward-looking statements included in this document are based
on information available to MidAmerica on the date hereof, and
it assumes no obligation to update any such forward-looking
statement. It is important to note that MidAmericas actual
results could differ materially from those in such forward-
looking statements. Factors that could cause actual results to
differ materially from those projected include, among others:
customer concentration; cyclicality; fluctuation of interest
rates; risk of business interruption; adequacy of the allowance
for loan losses; valuation of other real estate; dependence on
key personnel; and government regulation.
