Printer Friendly

LIFE SAVINGS BANK IN RECEIVERSHIP; NO INTERRUPTION IN DEPOSITOR SERVICE

 WASHINGTON, Jan. 29 /PRNewswire/ -- The Office of Thrift Supervision (OTS) today placed Life Savings Bank, Baton Rouge, La., in receivership and chartered a new federal mutual institution to take its place.
 The new institution, Life 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 takeover did not result in any interruption of Life Savings' 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 Life Savings was operating in an unsafe and unsound condition. In addition, the thrift had insufficient capital, with no reasonable prospect of becoming adequately capitalized without federal assistance.
 Life Savings' condition is due primarily to consistent operating losses resulting from high overhead expenses and investments in low-yield assets. For the three quarters ended Sept. 30, 1992, operating losses were $1.1 million.
 OTS explored the possibility of recapitalizing Life Savings without government financial assistance through capital infusions from investors. The efforts were unsuccessful.
 Life Savings Bank was a state-chartered stock institution wholly owned by Life Bancshares Inc., a unitary holding company. Life Bancshares will retain no interest in the new thrift.
 As of Sept. 30, 1992, Life Savings Bank reported assets of $16.8 million, liabilities of $16.5 million and tangible capital of $193,000, for a tangible capital-to-tangible assets ratio of 1.15 percent.
 -0- 1/29/93
 /CONTACT: Al Dermody, 214-281-2035, or Marc Adams, 202-906-7362, both of the Office of Thrift Supervision/


CO: Office of Thrift Supervision; Life Federal Savings Bank ST: Louisiana IN: FIN SU:

IH -- DC027 -- 1005 01/29/93 18:09 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 29, 1993
Words:312
Previous Article:VISTA BANK, CANOGA PARK, CALIF., PUT IN RECEIVERSHIP BY REGULATOR
Next Article:THE ZANUCK CO. AND MGM SET DANA CARVEY AND DIRECTOR MICK JACKSON FOR 'CLEAN SLATE'
Topics:


Related Articles
VISTA FEDERAL SAVINGS, RESTON, VA., IN RECEIVERSHIP; DEPOSITS INSURED
REGULATORS PLACE LEWISTON, MAINE, THRIFT IN RECEIVERSHIP; DEPOSITS FULLY PROTECTED
REGULATORS TAKE CONTROL OF FIRST AMERICAN, N.C.
CITADEL FEDERAL, S.C., TAKEN OVER BY GOVERNMENT
WINCHENDON SAVINGS BANK CLOSED; 'YOUR MONEY IS SAFE' CENTRAL FUND TELLS DEPOSITORS
ATTLEBORO PAWTUCKET SAVINGS BANK CLOSED; 'YOUR MONEY IS SAFE' CENTRAL FUND TELLS DEPOSITORS
GOVERNMENT TAKES CONTROL OF PIEDMONT FEDERAL SAVINGS
OTS PLACES CHICAGO'S IRVING FEDERAL IN RECEIVERSHIP; DEPOSITS PROTECTED
VISTA BANK, CANOGA PARK, CALIF., PUT IN RECEIVERSHIP BY REGULATOR
REGULATORS PLACE OLD STONE BANK IN RECEIVERSHIP; DEPOSITS INSURED

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters