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: March 25, 1998
HOME PORT BANCORP, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
0-17099 04-3016821
(Commission File Number) (I.R.S. Employer
Identification No.)
104 Pleasant Street, Nantucket, Massachusetts 02554
(Address of Principal Executive Offices) (Zip Code)
(508) 228-0580
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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TABLE OF CONTENTS
FORM 8-K
March 25, 1998
Item Page
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Item 5. Other Events 1
Signature 3
Exhibit E-1
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Item 5. Other Events
On March 25, 1998, the Board of Directors of Home Port Bancorp, Inc.
("Home Port"), which owns all of the stock of Nantucket Bank, Inc. (the "Bank"),
announced that an investigation by the Bank's management revealed a
"check-kiting" scheme by one of its customers. The results of the described
"check-kiting" caused an overdraft which could result in a loss to the Bank of
up to $518,000, plus related costs.
The Bank is reporting the incident to regulatory and enforcement
authorities, and is taking vigorous legal action to seek full recovery of its
loss from the customer and other sources.
The discussions in this Form 8-K, including any discussion of impact,
expressed or implied, on Home Port's anticipated operating results may differ
from the results indicated by such forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended. Home Port's results
may differ from the results indicated by such forward-looking statements. Home
Port's operating results may be affected by many factors, including but not
limited to Home Port's continued ability to originate quality loans, fluctuation
of interest rates, real estate market conditions in Home Port's lending area,
general and local economic conditions, Home Port's continued ability to atract
and retain deposits, new accounting pronouncements, and changing regulatory
requirements. Abuse and other risks are detailed from time to time in Home
Port's filings with the Securities and Exchange Commission.
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Exhibit
No. Title
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99a Press Release
-2-
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Home Port Bancorp, Inc.
Dated: March 25, 1998 By: /s/ Karl L. Meyer
-------------------
Karl L. Meyer, Chairman of the Board,
President and Chief Executive Officer
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EXHIBIT INDEX
Exhibit
No. Title
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99a Press Release
E-1
Exhibit 99a
For More Information, Call:
William P. Hourihan, Jr., Senior Vice President of Home Port Bancorp Inc. and
President and Chief Executive Officer of Nantucket Bank
Telephone (508) 228-0580
NANTUCKET, Massachusetts March 25, 1998/PR Newswire/Home Port Bancorp, Inc.
(NASDAQ:HPBC)
Home Port Bancorp, Inc. ("Home Port") is a one-bank holding company
which owns all of the stock of Nantucket Bank. Home Port announced today that an
investigation by Nantucket Bank management revealed an apparent "check-kiting"
scheme by one of its customers, whereby checks drawn on Nantucket Bank were
timed to be covered by checks drawn on another bank while checks drawn on that
other bank were covered by checks drawn on Nantucket Bank. The consequences of
the described "check-kiting" caused an overdraft which could result in a loss to
Nantucket Bank of up to $518,000, plus related legal and other costs which
cannot be estimated at this time.
Nantucket Bank is reporting the incident to regulatory and enforcement
authorities and has instructed its legal counsel to take vigorous legal action
seeking full recovery of its loss from its customer and other sources. A
complaint has been filed by the Nantucket Bank in the Superior Court, Barnstable
County seeking such recovery. There is no assurance that Nantucket Bank will be
able to recover any of the $518,000 and related expenses. Accordingly, it is
expected that a charge for the full amount of the potential loss will be made
against Home Port's 1st quarter 1998 earnings.
