<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 AND EXCHANGE ACT OF 1934
Date of earliest event reported: October 15, 1996
FIRST PALM BEACH BANCORP, INC.
(Exact name of registrant as specified in its charter)
Delaware #0-21942 65-0418027
(State or other (Commission (I.R.S. Employer
jurisdiction of File No.) Identification No.)
incorporation)
215 South Olive Avenue
West Palm Beach, Florida 33401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: (561) 655-8511
Not Applicable
(Former name and former address, if changed since last report)
<PAGE> 2
Item 5. Other Events.
First Bank of Florida ("First Bank"), formerly First Federal Savings
and Loan Association of the Palm Beaches, the wholly-owned subsidiary of
First Palm Beach Bancorp, Inc., has discontinued its indirect automobile
lending program. As a result of higher than anticipated charge-off experience,
primarily during the later part of the fiscal year ended September 30, 1996,
additional allowances for losses of $4.5 million related to indirect loans and
repossessed assets were recorded during the quarter ended September 30, 1996 to
provide for possible future losses. An analysis of overall performance of the
indirect lending portfolio led to the decision to discontinue the program.
First Bank's indirect loan balance at September 30, 1996 was approximately
$148.2 million. Management anticipates that the loss reserves of $6.2 million
at September 30, 1996, related to indirect loans and repossessed assets, will
be adequate to cover reasonably anticipated future charge-offs. The preceding
sentence is a "forward-looking statement" within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "Act") which involves estimates,
assumptions and uncertainties. The following important factors, should they
occur, could cause actual loan loss and reserve experience as well as other
related results to differ materially from the expectations expressed in the
forward-looking statement:
1. Unanticipated changes in general economic conditions, such as
unemployment and interest rates.
2. Unanticipated changes in the number of repossessions and the
loan balances outstanding at the time of repossession.
3. Unanticipated changes in the resale value of repossessed
automobiles.
4. Unanticipated changes in the ability of the borrowers to
maintain insurance on the collateral securing the Bank's loan,
the cost of such insurance, and the ability to recover
insurance proceeds.
This disclosure is intended to comply with the terms of the safe harbor for
forward-looking statements provided by the Act.
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 hereunto duly authorized.
FIRST PALM BEACH BANCORP, INC.
Date: October 21, 1996
By: /s/ Louis O. Davis, Jr.
------------------------
Louis O. Davis, Jr.
Chief Executive Officer
and President
