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 GLENDALE, Calif., Sept. 23 /PRNewswire/ -- Glendale Federal Bank (NYSE: GLN) today announced that the Office of Thrift Supervision (OTS), in response to the completion last week of Glendale Federal's recapitalization, has rescinded its amended prompt corrective action (PCA) directive issued to the Bank in June 1993.
 Stephen J. Trafton, Glendale Federal Bank's chairman and chief executive officer, said, "The rescission of the PCA directive by the OTS is a recognition of Glendale Federal Bank's dramatically improved capital position. This is truly a significant step, which removes a number of operating restrictions from the bank."
 Glendale Federal Bank recently completed one of the nation's largest recapitalizations of an undercapitalized financial institution by raising more than $450 million in new capital. As a result, the bank's pro forma capital ratios as of June 30, 1993 increased to 4.14 percent tangible, 4.91 percent core and 9.86 percent risk-based capital. These ratios are well above the 4.5 percent core and 9.0 percent risk-based capital ratios that had been required by the PCA directive to be achieved by Sept. 30, 1993.
 With this action by the OTS, Glendale Federal Bank becomes subject only to the capital standards provided in federal law and regulations that are applicable generally to other savings institutions. Under those established in the 1991 federal banking legislation (FDICIA), the bank now meets the definition of an "adequately capitalized" institution.
 Notwithstanding rescission of the PCA directive, Glendale Federal Bank remains subject to some operating restrictions applicable generally to institutions which are subject to greater than normal supervision levels by the OTS. Trafton added, "The remaining restrictions do not materially affect our ability to focus on our primary task of meeting family financial needs within the communities which we serve and providing value to our investors. With our improved capital, and without the more restrictive provisions of the PCA directive, we hope to be able to complete the task of rebuilding the bank's earnings stream."
 As a result of the rescission of the PCA directive, Glendale Federal Bank's performance of its capital restoration plan is, in effect, complete and the bank will no longer be required to meet the 5.0 percent core and 10.0 percent risk-based capital levels that had been required by the PCA directive.
 Glendale Federal Bank is one of the nation's largest savings institutions, providing community banking services through 215 banking offices in California, Florida and Washington State.
 -0- 9/23/93
 /CONTACT: Judy Cunningham, 818-500-2274, or Jeff Misakian, 818-500-2824/

CO: Glendale Federal Bank ST: California IN: FIN SU:

MF-LM -- LA005 -- 5064 09/23/93 09:04 EDT
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Publication:PR Newswire
Date:Sep 23, 1993
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