POLIFLY FINANCIAL CORPORATION
POLIFLY FINANCIAL CORPORATION NEW MILFORD, N.J., Jan. 24 /PRNewswire/ -- Polifly Financial
Corporation (NASDAQ: PFLY), the holding company for Polifly Savings and Loan Association, today announced that in conjunction with a routine regulatory examination of the association by the Office of Thrift Supervision (OTS), the OTS required the association to increase its provision for loan and real estate losses as of Dec. 31, 1991, by approximately $4.4 million and amend its regulatory capital plan approved by the OTS in March, 1991. The amendment to the regulatory capital plan will include the positive effects on the financial condition of the corporation resulting from the recently announced and soon to be consummated settlement of the lawsuit filed by the corporation against former director Robert K. Hartmann in the amount of $5 million and the termination settlement in June 1991, of the corporation's ESOP plan, as well as the addition of the loan loss reserve required by the OTS. Because the terms of the Hartmann settlement require payment of the settlement amount over 3-1/2 years and certain amounts must be deducted for fees and other expenses of litigation, the settlement will not fully offset the amount of the additional loan loss reserves announced today. The Hartmann settlement is expected to be consummated in 30 to 45 days.
Polifly also announced today that the OTS has requested the association to enter into a supervisory agreement which would, among other things, place restrictions on growth, investments, lending and capital distributions by the association and the compensation of directors, officers and employees of the association. The association was already subject to many of these same restrictions pursuant to the capital plan and directive issued by the OTS in March, 1991. The association expects to execute the supervisory agreement. -0- 1/24/92 /CONTACT: Joseph S. Paparatto, president & CEO of Polifly Financial, 201-261-6900/ CO: Polifly Savings and Loan Association ST: New Jersey IN: FIN SU: SM-TM -- NY080 -- 3278 01/24/92 16:53 EST
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|Date:||Jan 24, 1992|
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