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OFFICE OF THE COMPTROLLER OF THE CURRENCY APPOINTS FDIC AS RECEIVER OF COLLEGE BOULEVARD NATIONAL BANK

 WASHINGTON, April 2 /PRNewswire/ -- At 6:00 p.m. EST today, the Office of the Comptroller of the Currency (OCC), appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of College Boulevard National Bank, Overland Park, Kansas.
 The FDIC Improvement Act of 1991 gives the OCC authority to appoint the FDIC receiver for national banks that meet specific criteria. The OCC used this authority when it found that College Boulevard National Bank was critically undercapitalized -- that is, it had less than 2 percent tangible equity capital. The OCC also found that the bank was in an unsafe and unsound condition to conduct business and had not filed an acceptable capital restoration plan. In light of these findings, the OCC determined that closure and the appointment of the FDIC as receiver was necessary to protect the interests of the bank's insured depositors.
 The bank was owned through Concord Bancshares, Inc. by Leopold M. Greif who resigned as chairman of the bank and consented to a prohibition from the banking industry in September, 1992.
 The bank rapidly expanded by aggressively booking real estate development loans that it funded with deposits that paid higher than market rate interest rates. Poor underwriting and loan administration (including poor appraisal review, lack of problem loan identification, and poor monitoring of financial statements and collateral documentation) led to increased loan losses that reduced the bank's capital to a critical level. The downturn in the local real estate market amplified the bank's problems. In August 1992, the bank entered into a Formal Agreement with the OCC that required the directors and management to take actions to correct the bank's problems.
 College Boulevard National Bank received a national bank charter on Oct. 25, 1982. On Dec. 31, 1992, it had total assets of approximately $203 million.
 Information about the FDIC's resolution of the bank will be released later by the FDIC.
 -0- 4/2/93
 /CONTACT: Frank Vance, Jr. of Office of the Comptroller of the Currency, 202-874-4700/


CO: Comptroller of the Currency ST: Kansas IN: FIN SU:

TM -- NY079 -- 2737 04/02/93 19:13 EST
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Publication:PR Newswire
Date:Apr 2, 1993
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