REGULATORS TAKE CONTROL OF POTOMAC SAVINGS, MD.
REGULATORS TAKE CONTROL OF POTOMAC SAVINGS, MD. WASHINGTON, Aug. 28 /PRNewswire/ -- The Office of Thrift
Supervision (OTS) today placed Potomac Savings Bank, F.S.B., Silver Spring, Md., in receivership and chartered a new federal mutual institution to take its place.
The new institution, Potomac Federal Savings Bank, will assume certain assets and liabilities of the old thrift and will operate in conservatorship under the management of the Resolution Trust Corporation. The receivership did not result in any interruption of Potomac's day-to-day operations. The institution and its two branches, located in Colesville and Wheaton, Md., 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 Potomac Savings was operating in an unsafe and unsound condition in that it had insufficient capital, with no reasonable prospect of replenishment without federal assistance. Potomac Savings' condition is due primarily to losses on poorly underwritten land, commercial real estate and other high-risk loans. The erosion of asset values was compounded by the downturn in the local real estate market. In addition, management failed to properly identify and evaluate problem assets. As of June 30, 1992, the institution reported non-performing assets of $20.86 million, or 28.8 percent of total assets. Net loss was $1.6 million for the first six months of 1992. The thrift had been operating under regulatory growth restrictions since 1991. Potomac Savings Bank, F.S.B., was a federally chartered stock institution. Shareholders will retain no interest in the new thrift. As of June 30, 1992, Potomac Savings Bank, F.S.B., reported assets of $72.4 million, liabilities of $71.9 million and tangible capital of $368,000, for a tangible capital-to-tangible assets ratio of 0.51 percent. -0- 8/28/92 /CONTACT: Paulette Odum, 404-888-8549, or Marc Adams, 202-906-6677, both of the Office of Thrift Supervision/ CO: Office of Thrift Supervision; Potomac Savings Bank, F.S.B. ST: Maryland, District of Columbia IN: FIN SU:
MH -- DC008 -- 4350 08/28/92 11:43 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Aug 28, 1992|
|Previous Article:||GROCE NAMED 1992 LITTLE LEAGUE BASEBALL VOLUNTEER OF THE YEAR|
|Next Article:||PIEDMONT REPORTS THIRD QUARTER RESULTS|