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GEORGIA THRIFT TO OPERATE UNDER GOVERNMENT CONTROL

 GEORGIA THRIFT TO OPERATE UNDER GOVERNMENT CONTROL
 WASHINGTON, Nov. 6 /PRNewswire/ -- The Office of Thrift


Supervision (OTS) today placed First Federal Savings Bank of Georgia, Winder, Ga., in receivership and chartered a new federal mutual institution to take its place.
 The new institution, First Federal Savings Bank of Georgia, F.A., will assume certain assets and liabilities of the old thrift and will operate in conservatorship under the management of the Resolution Trust Corporation.
 The takeover did not result in any interruption of First Federal's day-to-day operations. The institution and its four branches, located in Jefferson, West Athens, Watkinsville and Loganville, Ga., will remain open for business as usual. Holders of insured accounts are not affected by the action, which was taken by OTS to protect insured depositors and the interests of the thrift insurance fund. Deposits remain insured to the $100,000 legal limit.
 OTS initiated the action because First Federal was operating in an unsafe and unsound condition in that it had insufficient capital, with no reasonable prospect of replenishment without federal assistance.
 First Federal's losses stem from poorly underwritten acquisition, development and construction (ADC) loans originated under former senior management in the late 1980s, resulting in a high level of non-earning assets.
 As of June 30, 1992, non-current loans and repossessed real estate amounted to $14.4 million, or 12.9 percent of total assets. The institution's asset portfolio has deteriorated steadily during the past three years, leading to writedowns and the establishment of substantial loss reserves. Net losses were $3.4 million in 1991 and $736,000 for the first six months of 1992. The thrift had been operating under regulatory lending restrictions since 1991.
 First Federal Savings Bank of Georgia was a federally chartered stock institution. Shareholders will retain no interest in the new thrift.
 As of June 30, 1992, First Federal Savings Bank of Georgia reported assets of $111.5 million, liabilities of $111.4 million and tangible capital of $120,000, for a tangible capital-to-tangible assets ratio of 0.11 percent.
 -0- 11/6/92
 /CONTACT: Paulette Odum, 404-888-8549, or Marc Adams, 202-906-6677, both of the Office of Thrift Supervision/ CO: Office of Thrift Supervision; First Federal Savings Bank of
 Georgia ST: Georgia IN: FIN SU:


KD -- DC023 -- 8298 11/06/92 16:09 EST
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Publication:PR Newswire
Date:Nov 6, 1992
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