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ALABAMA'S BIRMINGHAM FEDERAL IS PLACED IN RECEIVERSHIP; DEPOSITS INSURED

 ALABAMA'S BIRMINGHAM FEDERAL IS PLACED IN RECEIVERSHIP;
 DEPOSITS INSURED
 WASHINGTON, Aug. 21 /PRNewswire/ -- The Office of Thrift Supervision (OTS) today placed Birmingham Federal Savings and Loan Association, Birmingham, Ala., in receivership and chartered a new federal mutual institution to take its place.
 The new institution, Birmingham 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 Birmingham Federal's day-to-day operations. The institution and its four 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 the association was operating in an unsafe and unsound condition in that it had insufficient capital, with no prospect of replenishment without federal assistance.
 Birmingham Federal's condition is due primarily to poor net interest income and a high volume of foreclosed real estate, largely the result of poor-quality commercial real estate loans originated by former management in the 1980s. Write-downs on bad assets continued as the institutions portfolio deteriorated.
 Real estate owned amounted to $2.2 million, or 2.4 percent of total assets, as of June 30, 1992. Assets classified as substandard, doubtful or loss totaled $5 million, or 5.5 percent of assets.
 As of June 30, 1992, Birmingham Federal Savings and Loan Association reported assets of $91.8 million, liabilities of $91.3 million and tangible capital of $493,000, for a tangible capital-to-tangible assets ratio of 0.5 percent.
 -0- 8/21/92
 /CONTACT: Paulette Odum, 404-888-8549, or Gwendolyn Gregg- Cauthen, 202-906-6677, both of Office of Thrift Supervision/ CO: Office of Thrift Supervision; Birmingham Federal Savings and
 Loan Association ST: Alabama IN: FIN SU:


IH -- DC011 -- 2149 08/21/92 12:39 EDT
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Publication:PR Newswire
Date:Aug 21, 1992
Words:326
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