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OFFICE OF THE COMPTROLLER OF THE CURRENCY DECLARES COMMUNITY NATIONAL BANK AND TRUST COMPANY INSOLVENT

OFFICE OF THE COMPTROLLER OF THE CURRENCY DECLARES COMMUNITY NATIONAL
 BANK AND TRUST COMPANY INSOLVENT
 WASHINGTON, Nov. 8 /PRNewswire/ -- At 3 p.m. EST today, Stephen R. Steinbrink, senior deputy comptroller for Bank Supervision Operations, Office of the Comptroller of the Currency (OCC), declared Community National Bank and Trust Company of New York, Staten Island, N.Y., insolvent and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
 The bank became a concern to the OCC in 1989. Poor lending practices, inadequate supervision by the board of directors and ineffective internal systems resulted in excessive losses. The OCC took enforcement actions against the bank in 1990 and 1991. These actions were attempts by the regulator to focus the attention of bank management on correcting the bank's problems. Management's efforts were not successful.
 The bank grew rapidly in 1988 and 1989. The bank's underwriting practices during this time period were weak, and many of these loans became problems for the bank. As the level of problem loans in the bank grew, the bank suffered from increasing loan losses. These losses finally exhausted the bank's capital funds, resulting in its insolvency.
 Community National Bank and Trust Company of New York received a national bank charter on Nov. 16, 1965. On Sept. 30, 1991, it had total assets of approximately $334 million. The bank's net loss for the nine month period was over $36 million. The bank lost $16 million in 1990.
 The FDIC is expected to release additional information later today.
 -0- 11/8/91
 /CONTACT: Frank Vance of the Office of the Comptroller of the Currency, 202-874-4700/ CO: Office of the Comptroller of the Currency; Community National
 Bank and Trust Company of New York ST: District of Columbia, New York IN: FIN SU: MH -- DC016 -- 2700 11/08/91 16:21 EST
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Publication:PR Newswire
Date:Nov 8, 1991
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