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HOME UNITY IN RECEIVERSHIP; DEPOSITS ARE FULLY PROTECTED

 HOME UNITY IN RECEIVERSHIP; DEPOSITS ARE FULLY PROTECTED
 WASHINGTON, June 4 /PRNewswire/ -- The Office of Thrift Supervision (OTS) today placed Home Unity Savings and Loan Association, Lafayette Hill, Pa., in receivership and chartered a new federal mutual institution to take its place.
 The new institution, Home Unity 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 Home Unity's day-to-day operations. The institution and its 15 branches, all located in the Philadelphia metropolitan area, 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.
 Home Unity was being marketed through the government's Accelerated Resolution Program (ARP), designed to sell certain troubled or insolvent thrifts without subjecting them to a lengthy and more costly federal conservatorship. However, lack of congressional funding for the ARP forced regulators to take control of the institution.
 OTS initiated the action because Home Unity was operating in an unsafe and unsound condition in that it had insufficient capital, with no prospect of replenishment without federal assistance.
 Home Unity's condition is due primarily to the recognition of loan loss provisions, losses on asset sales, and the regulatory treatment of $18.2 million in supervisory goodwill associated with Home Unity's 1982 acquisition of Intercounty Savings Association, Blue Bell, Pa.
 While net income was $186,000 for the first quarter of 1992, Home Unity lost $19.3 million for calendar year 1991. The institution is insolvent in that its liabilities exceed its assets.
 Despite its condition, Home Unity was eligible for the ARP because of its strong branch network and because most of its loan losses emanated from a small cluster of assets that could have been isolated and resolved.
 "It is with great reluctance that we seize institutions like Home Unity, which could have attracted a buyer and been resolved at less cost to the taxpayer," said OTS Director Timothy Ryan. "But lack of congressional funding for thrift resolutions has left us no choice. Unsafe and unsound institutions cannot continue to operate without some resolution plan underway."
 Home Unity Savings and Loan Association was a state-chartered stock institution. Shareholders will retain no interest in the new thrift.
 As of March 31, 1992, Home Unity Savings and Loan Association reported assets of $684.8 million, liabilities of $701.8 million and tangible capital of negative $17 million, for a tangible capital-to- assets ratio of negative 2.48 percent.
 -0- 6/4/92
 /CONTACT: Roy Jensen, 201-413-7501, or Janis Smith, 202-906-6677, both of the Office of Thrift Supervision/ CO: Home Unity Savings and Loan Association; Office of Thrift
 Supervision ST: Pennsylvania IN: FIN SU:


MH -- DC023 -- 7158 06/04/92 15:41 EDT
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Publication:PR Newswire
Date:Jun 4, 1992
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