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MANASSAS, VA., THRIFT IN RECEIVERSHIP; DEPOSITS REMAIN INSURED TO $100,000

 MANASSAS, VA., THRIFT IN RECEIVERSHIP;
 DEPOSITS REMAIN INSURED TO $100,000
 WASHINGTON, April 3 /PRNewswire/ -- The Office of Thrift Supervision (OTS) today placed Commonwealth Savings Bank of Virginia, FSB, Manassas, Va., in receivership and chartered a new federal mutual institution to take its place.
 The new institution, Commonwealth 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 Commonwealth's day-to-day operations. The main office and all three 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 Commonwealth was operating in an unsafe and unsound condition in that it had insufficient capital, with no prospect of replenishment without federal assistance.
 Commonwealth's condition is the result of losses on poorly underwritten high-risk real estate development loans, and to a lesser degree, the decline in the local real estate market. Appraisals on repossessed real estate were inadequate and operating losses were high. As of Dec. 31, 1991, Commonwealth reported delinquent loans and real estate owned of $23.6 million, or 29.9 percent of total assets.
 Net losses were $2.5 million for the fourth quarter of 1991 and $3.98 million for the year. The institution is insolvent in that it has negative tangible, core and risk-based capital.
 Commonwealth Savings Bank of Virginia, FSB, was a federally chartered stock institution. Shareholders will retain no interest in the new thrift.
 As of Dec. 31, 1991, Commonwealth Savings Bank of Virginia, FSB, reported assets of $78.7 million, liabilities of $79.8 million and tangible capital of negative $1.1 million, for a tangible capital-to- assets ratio of negative 1.4 percent.
 -0- 4/3/92
 /CONTACT: Paulette Odum, 404-888-8549, or Janis Smith, 202-906-6677, both of the Office of Thrift Supervision/ CO: Office of Thrift Supervision; Commonwealth Savings Bank of
 Virginia, FSB ST: Virginia IN: FIN SU:


SB-MK -- DC021 -- 4921 04/03/92 15:01 EST
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Publication:PR Newswire
Date:Apr 3, 1992
Words:367
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