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OTS PLACES CHICAGO'S IRVING FEDERAL IN RECEIVERSHIP; DEPOSITS PROTECTED

 WASHINGTON, Nov. 20 ~PRNewswire~ -- The Office of Thrift Supervision (OTS) today placed Irving Federal Bank for Savings, Chicago, in receivership and chartered a new federal mutual institution to take its place.
 The new institution, Irving Federal Bank for Savings, F.S.B., will assume certain assets and liabilities of the old thrift, and will operate in conservatorship under the oversight of the Resolution Trust Corporation.
 The takeover did not result in any interruption of Irving Federal's day-to-day operations. The institution and its 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 Irving Federal Bank for Savings was operating in an unsafe and unsound condition in that it had insufficient capital, with no reasonable prospect of replenishment without federal assistance.
 Irving Federal's condition is due to losses on an excessively high level of problem loans, and the establishment of additional reserves to cover further losses anticipated on these assets. The bulk of these problem loans consist of large commercial real estate loans, land development loans and construction loans for single and multi-family housing and office buildings in the Chicago area. The projects underlying these problem loans lacked acceptable sales and lease-up performance. As of Sept. 30, 1992, Irving Federal reported non-performing assets of $70.8 million, or 28.7 percent of total assets.
 Irving Federal reported net losses of $6.75 million in 1991, and $6.2 million for the nine months ended Sept. 30, 1992. As of the latter date, the institution also reported insolvency based on negative tangible, core and risk-based capital levels.
 As of Sept. 30, 1992, Irving Federal Bank for Savings reported assets of $246.97 million, liabilities of $246.89 million and tangible capital of negative $439,000, for a tangible-capital-to- tangible-assets ratio of negative 0.18 percent.
 -0- 11~20~92
 ~CONTACT: Diana Januska, 312-565-5307, or Janis Smith, 202-906-6677, both of the Office of Thrift Supervision~


CO: Office of Thrift Supervision; Irving Federal Bank for Savings ST: Illinois IN: FIN SU:

TW -- DC026 -- 0079 11~20~92 18:39 PST
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Publication:PR Newswire
Date:Nov 20, 1992
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