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REGULATORS PLACE LEWISTON, MAINE, THRIFT IN RECEIVERSHIP; DEPOSITS FULLY PROTECTED

 REGULATORS PLACE LEWISTON, MAINE, THRIFT IN RECEIVERSHIP;
 DEPOSITS FULLY PROTECTED
 WASHINGTON, May 21 /PRNewswire/ -- The Office of Thrift Supervision (OTS) today placed First Federal Savings Bank, Lewiston, Maine, in receivership and chartered a new federal mutual institution to take its place.
 The new institution, First Federal Savings Association, will assume certain assets and liabilities of the old thrift and will operate in conservatorship under the management of the Resolution Trust Corp.
 The takeover did not result in any interruption of First Federal's day-to-day operations. The institution, located at 110 Canal St., Lewiston, 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 First Federal was operating in an unsafe and unsound condition in that it had insufficient capital, with no prospect of replenishment without federal assistance.
 First Federal's condition is the result of losses on poorly underwritten loans. As of March 31, 1992, the thrift reported delinquent loans and repossessed assets of $10.7 million, or 12.86 percent of total assets.
 Net losses were $847,000 for the first quarter of 1992 and $3.9 million for calendar year 1991. The institution is insolvent in that it has negative tangible, core and risk-based capital.
 As of March 31, 1992, First Federal Savings Bank reported assets of $83 million, liabilities of $83.5 million and tangible capital of negative $451,000, for a tangible capital-to-assets ratio of negative 0.54 percent.
 -0- 5/21/92
 /CONTACT: Aphrodite Plakias, 617-457-1903, or Janis L. Smith, 202-906-6677, both of the Office of Thrift Supervision/ CO: Office of Thrift Supervision; First Federal Savings Bank,
 Lewiston, Maine ST: Maine IN: FIN SU:


DC -- DC018 -- 2858 05/21/92 12:52 EDT
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Publication:PR Newswire
Date:May 21, 1992
Words:314
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