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IRVINGTON FEDERAL SAVINGS & LOAN PLACED UNDER GOVERNMENT CONTROL

IRVINGTON FEDERAL SAVINGS & LOAN PLACED UNDER GOVERNMENT CONTROL
 WASHINGTON, Feb. 28 /PRNewswire/ -- The Office of Thrift Supervision (OTS) today placed Irvington Federal Savings & Loan Association, Baltimore, in receivership and chartered a new federal mutual institution to take its place.
 The new institution, Irvington Federal Savings Bank, will assume certain assets and liabilities of the old thrift, and will operate in conservatorship under the management of the Resolution Trust Corporation.
 The receivership did not result in any interruption of Irvington Federal Savings & Loan's day-to-day operations. The institution's main office and its two branches 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 Irvington Federal Savings & Loan was operating in an unsafe and unsound condition and has suffered losses that have depleted all of its capital, with no prospect of replenishment without federal assistance.
 Irvington Federal Savings & Loan's condition is due primarily to poor asset quality and high operating expenses. For the year ended Dec. 31, 1991, the thrift reported a net loss of $1.3 million. A significant factor in the results was a $1.5 million provisions for losses.
 At year end, classified assets, those listed as substandard, doubtful or loss, made up of numerous small leases, loans and real estate holdings, amounted to $4.3 million, or 9.8 percent of assets.
 Irvington's ability to absorb losses was adversely affected by its December 1985 merger with insolvent Germania Federal Savings and Loan Association, Baltimore.
 Irvington Federal Savings & Loan reported assets of $43.8 million as of Dec. 31, 1991, liabilities of $43.4 million, and tangible capital of negative $155,000 for a tangible capital-to-assets ratio of negative 0.4 percent.
 -0- 2/28/92
 /CONTACT: Paulette Odum, 404-888-8549, or Thomas P. Mason, 202-906-6677, both of the Office of Thrift Supervision/ CO: Office of Thrift Supervision; Irvington Federal Savings
 & Loan Association ST: District of Columbia, Maryland IN: FIN SU:


DC -- DC013 -- 3721 02/28/92 12:34 EST
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Publication:PR Newswire
Date:Feb 28, 1992
Words:358
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