MARINE VIEW SAVINGS BANK, SLA TRANSFERRED TO RESOLUTION TRUST CORPORATION
MARINE VIEW SAVINGS BANK, SLA
TRANSFERRED TO RESOLUTION TRUST CORPORATION
TRENTON, N.J., Nov. 1 /PRNewswire/ -- New Jersey Banking Commissioner Jeff Connor today approved the referral of Marine View Savings Bank, SLA, a mutual savings and loan association based in Middletown, N.J., to the Resolution Trust Corporation (RTC), the federal agency created to protect insured depositors of troubled savings and loans.
Depositors of the old institution will become depositors of the new RTC institution and will experience no change in service as the RTC attempts to resolve the savings and loan.
"The transfer of Marine View will protect its customers while facilitating an orderly resolution of the institution's problems," Connor said. "Customers should know that this action is the first step in the failed savings and loan's resolution process. At this point they will experience no interruption in service nor any change in access to accounts, and of course they are insured up to $100,000 by the Federal Deposit Insurance Fund."
The commissioner said Marine View could not operate without federal assistance because of its investments in real estate projects and a high level of non-performing assets. The savings and loan lost $2.6 million last year. With assets of $126 million, the institution did not meet any of the three required minimum capital standards (tangible, core and risk-based). The federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) required these minimum capital measurements for savings and loans as a standard for safe and sound operation. Given the level of non-performing assets, the troubled real estate projects, and the pattern of losses, Connor said he did not anticipate Marine View being able to generate sufficient earnings to return to a safe and sound condition.
Besides its headquarters in Middletown, the institution operated branches in Atlantic Highlands, Eatontown and Lincroft. Marine View was incorporated in 1938.
/CONTACT: Christopher W. Cooney of the Department of Banking, 609-292-7001/ CO: Department of Banking; Marine View Savings Bank, SLA ST: New Jersey IN: FIN SU MK-LJ -- PH033 -- 0313 11/01/91 15:09 EST