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PLANTERS NATIONAL BANK OF ROSEBUD PLACED UNDER FDIC RECEIVERSHIP

 WASHINGTON, Feb. 25 /PRNewswire/ -- At 5 p.m. (EST) today, Susan F. Krause, senior deputy comptroller for bank supervision policy, Office of the Comptroller of the Currency (OCC), appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of The Planters National Bank of Rosebud, Rosebud, Texas.
 The FDIC Improvement Act of 1991 gives the OCC additional authority to appoint the FDIC receiver for national banks when they meet specific criteria. The OCC used this authority when it found that Planters National Bank was critically undercapitalized -- that is, it had less than 2 percent tangible equity capital. The OCC also found that the bank was in an unsafe and unsound condition to conduct business. In light of these findings, Krause determined that the appointment of the FDIC as receiver was necessary to protect the interests of the bank's insured depositors.
 The bank became a matter of supervisory concern in late 1986. Weak supervision resulted in poor asset quality, inadequate maintenance of the allowance for loan and lease losses, and poor compliance with regulations. The board signed a Commitment Letter to correct these problems on Feb. 26, 1987. However, the bank failed to achieve compliance with the Commitment Letter. Simultaneously, the bank began to experience high losses in their loan portfolio, requiring increases to the loan loss reserve. The board of directors stipulated to an Order of Cease and Desist on Aug. 9, 1990. Following a change in management, the operating losses were eventually stemmed and the condition of the bank stabilized. However, the volume of problem assets continued to be high and capital was so severely depleted that return to viable condition was unlikely.
 The Planters National Bank of Rosebud received a national bank charter on Jan. 27, 1906. On Dec. 31, 1992, it had total assets of approximately $14 million.
 The FDIC will release additional information about the resolution of the bank.
 -0- 2/25/93
 /CONTACT: Frank Vance of the Office of the Comptroller of the Currency, 202-874-4700/
CO: Office of the Comptroller of the Currency; Federal Deposit Insurance


Co rporation; The Planters National Bank of Rosebud ST: District of Columbia; Texas IN: FIN SU:

IH-TW -- DC026 -- 0606 02/25/93 17:34 EST
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Date:Feb 25, 1993
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