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GOVERNMENT TAKES CONTROL OF OVERLAND PARK SAVINGS

 GOVERNMENT TAKES CONTROL OF OVERLAND PARK SAVINGS
 WASHINGTON, Nov. 13 /PRNewswire/ -- The Office of Thrift


Supervision (OTS) today placed The Overland Park Savings & Loan Association, Overland Park, Kan., in receivership and chartered a new federal mutual institution to take its place.
 The new institution, The Overland Park Federal Savings and Loan Association, will assume certain assets and liabilities of the old thrift, and will operate in conservatorship under the management of the Resolution Trust Corporation.
 The takeover did not result in any interruption of Overland Park's day-to-day operations. The institution 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 Overland Park was operating in an unsafe and unsound condition in that it had insufficient capital, with no means to achieve capital compliance through internal earnings.
 Overland Park's condition is due primarily to a substantial amount of deferred hedging losses, a high cost of funds and writedowns of mortgage derivative securities, impairing the institution's earnings potential.
 The thrift reported net losses of $522,000 in 1990 and $1.2 million for the first nine months of 1992. Earnings of $1.1 million reported in 1991 were due entirely to the reduction of a deferred tax liability.
 Overland Park reported that it failed its core and risk-based capital requirements as of June 30, 1992. Moreover, writedowns of mortgage derivative securities and increased reserves against bad assets will cause the institution to fall below its minimum tangible capital requirement of 1.5 percent of tangible assets at Sept. 30, 1992. The thrift relied heavily on non-recurring gains, such as asset sales, to produce earnings, and is unable to generate enough income from its core operations to recover. The institution had been operating under regulatory restrictions since 1990.
 On Oct. 19, 1992, OTS announced that former Overland Park director Fred N. Coulson III, president and director Wilson Siemens and director Anne Ralls agreed to pay the thrift restitution valued at $1.2 million for approving or participating in transactions not permissible for affiliated parties. The transactions involved the purchase and resale of Westwood Plaza Towers, a Kansas City, Kan., office complex. Coulson also agreed to a prohibition from the thrift and banking industries, and Siemens resigned as a director. All three directors disputed the allegations.
 The Overland Park Savings & Loan Association was a state- chartered stock institution wholly owned by Overland Park Financial Corporation, a holding company. Shareholders will retain no interest in the new thrift.
 As of June 30, 1992, The Overland Park Savings & Loan Association reported assets of $225.3 million, liabilities of $220.8 million and tangible capital of $3.9 million, for a tangible capital-to-tangible assets ratio of 1.73 percent, a core capital ratio of 1.73 percent, and a risk-based capital ratio of 4.17 percent. The institution has reported on a preliminary basis that, as of Sept. 30, 1992, additional losses will reduce tangible capital to $2.6 million, for a tangible capital ratio of 1.23 percent.
 -0- 11/13/92
 /CONTACT: Al Dermody, 214-281-2035, or Marc Adams, 202-906-6677, both of the Office of Thrift Supervision/ CO: Office of Thrift Supervision; Overland Park Savings and Loan
 Association ST: District of Columbia, Kansas IN: FIN SU:


KD -- DC025 -- 0904 11/13/92 17:09 EST
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Publication:PR Newswire
Date:Nov 13, 1992
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