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COASTAL BANC SAVINGS ASSOCIATION COMMENTS ON USA TODAY REPORT

 COASTAL BANC SAVINGS ASSOCIATION COMMENTS ON USA TODAY REPORT
 HOUSTON, June 30 /PRNewswire/ -- Coastal Banc Savings Association, (NASDAQ: CBSA) reports that its non-performing assets at Dec. 31, 1991 were only $3.3 million or a mere 10.2 percent of tangible capital, and that the Houston-based thrift should not have been listed in a June 29 USA Today article as a problem thrift.
 The report in USA Today was based on a misinterpretation of information filed by thrifts with the Federal Deposit Insurance Corp. It failed to differentiate between covered assets, (those problem assets acquired in the Southwest Plan for which the book value and an agreed upon yield are guaranteed by the federal government), and all other problem assets. The Southwest Plan, conducted during 1988, was the federal regulators' means of arranging for acquisition of failed and failing thrifts by healthy institutions and investor groups. In return for acquiring the troubled institutions, the acquirors were made whole through yield maintenance guarantees and book value guarantees for the problem assets they acquired.
 Coastal Banc's Chairman and CEO, Manuel J. Mehos, explained "The newspaper assumed that all REO (real estate owned) assets represents problem assets. It failed to recognize that virtually all of the REO in our regulatory reports represent covered assets under terms of our Southwest Plan acquisitions made in 1988."
 At Dec. 31, 1991 Coastal Banc had non-performing assets of $3.3 million and tangible capital of $32.27 million.
 Since then, Coastal Banc Savings completed its initial public offering in March, issuing approximately $24 million of stock. At March 31, 1992, Coastal Banc had assets of approximately $1 billion, tangible capital of $58.01 million and problem assets of only $3.9 million, representing just 6.7 percent of tangible capital. Coastal Banc Savings Association is a Texas-chartered, federally insured savings and loan association headquartered in Houston. It operates 16 branch offices in metropolitan Houston and the more rural areas west and southwest of Houston.
 -0- 6/30/92
 /CONTACT: Manuel Mehos of Coastal Banc Savings, 713-623-2600, or Karen Fox of the Churchill Group, 713-781-0020, for Coastal Banc Savings/
 (CBSA) CO: Coastal Banc Savings Association ST: Texas IN: FIN SU:


LR -- NY038 -- 5107 06/30/92 10:44 EDT
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Publication:PR Newswire
Date:Jun 30, 1992
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