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OCC CLOSES CROWN NATIONAL BANK

 WASHINGTON, May 7 /PRNewswire/ -- At 5 p.m. EDT today, the Office of the Comptroller of the Currency (OCC) closed the Crown National Bank, Charlotte, N.C., and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The board of directors, by resolution, consented to the appointment of a receiver. The board's action was taken in response to the bank's substantial depletion of earnings and capital.
 The bank became a matter of concern in early 1991 when significant weaknesses and deficiencies in the bank's loan portfolio management were discovered. The bank's management practiced poor loan underwriting techniques and had weak administration standards. Because of these practices, the bank accumulated a large amount of poor quality assets and incurred losses. New managment improved the lending activities and operations in general. However, continued losses from poor quality assets, reduced interest income and excessive operating expenses continued to erode the bank's capital.
 In April 1991, the board of directors entered into a formal agreement with the OCC to address the bank's problems. Loan and operating losses persisted and caused the bank's condition to further deteriorate. Attempts to merge the institution were also unsuccessful. For the period ended March 31, 1993, the bank lost an additional $628,000.
 Crown National Bank received its national bank charger on Dec. 14, 1989. As of March 31, 1993, the bank had total assets of $26 million.
 Additional information about the bank will be released later by the FDIC.
 -0- 5/7/93
 /CONTACT: Frank Vance Jr. or Dean DeBuck of the Office of the Comptroller of the Currency, 202-874-4700/


CO: Office of the Comptroller of the Currency; Crown National Bank ST: North Carolina IN: FIN SU:

MH-DC -- DC010 -- 6133 05/07/93 17:02 EDT
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Publication:PR Newswire
Date:May 7, 1993
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