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FIRST FS&LA OF RUSSELL COUNTY, ALA., PLACED IN RECEIVERSHIP BY REGULATORS

 FIRST FS&LA OF RUSSELL COUNTY, ALA., PLACED IN RECEIVERSHIP
 BY REGULATORS
 WASHINGTON, July 24 /PRNewswire/ -- The Office of Thrift Supervision (OTS) today placed First Federal Savings and Loan Association of Russell County, Phenix City, Ala., in receivership and chartered a new federal mutual institution to take its place.
 The new institution, First Federal Savings and Loan Association of Russell County, 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 (RTC).
 The receivership did not result in any interruption of First Federal's day-to-day operations. The institution and its two branches, located in Phenix City and Abbeville, 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 prospect of replenishment without federal assistance. Although the association reported that it exceeded its minimum tangible capital requirement as of March 31, 1992, adjustments for additional losses brought the thrift below its required minimum.
 First Federal's condition is due primarily to write-downs on poorly underwritten loans and a high level of non-earning assets. The association made a substantial number of out-of-state commercial and multifamily real estate loans. Net losses were $885,000 for the four quarters ended March 31, 1992. Assets of $15 million, or 16.7 percent of total assets, were classified as substandard, doubtful or loss. The institution had been operating under regulatory restrictions since 1991.
 As of March 31, 1992, First Federal Savings and Loan Association of Russell County reported assets of $89.8 million, liabilities of $87.8 million and tangible capital of $2 million, for a tangible capital-to-tangible assets ratio of 2.3 percent. The set-aside of additional reserves against bad assets reduced the ratio to 1.4 percent of tangible assets.
 -0- 7/24/92
 /CONTACT: Paulette Odum, 404-888-8549, or Gwendolyn Gregg- Cauthen, 202-906-6677, both of the Office of Thrift Supervision/ CO: Office of Thrift Supervision; First Federal Savings and Loan
 Association of Russell County ST: District of Columbia, Alabama IN: FIN SU:


TW -- DC016 -- 3014 07/24/92 11:58 EDT
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Publication:PR Newswire
Date:Jul 24, 1992
Words:396
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