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VISTA BANK, CANOGA PARK, CALIF., PUT IN RECEIVERSHIP BY REGULATOR

 WASHINGTON, Jan. 29 /PRNewswire/ -- The Office of Thrift Supervision (OTS) today placed Vista Bank, FSB, Canoga Park, Calif., in receivership and chartered a new federal mutual institution to take its place.
 The new institution, Vista 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 Corporation.
 The receivership did not result in any interruption of Vista's day-to-day operations. The institution 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 Vista was operating in an unsafe and unsound condition in that it suffered losses that likely would have depleted nearly all of its capital, with no reasonable prospect of replenishment without federal assistance.
 Vista's condition is due primarily to heavy losses on poorly underwritten, high-risk multifamily loans. Such loans comprised 82 percent of the institution's portfolio.
 Vista reported net losses of $1.3 million in 1991 and $1.87 million for the first nine months of 1992. Assets of $20.6 million, or 21.2 percent of total assets, were classified as substandard, doubtful or loss. Loan underwriting recently had improved, but appraisal policies and internal controls remained deficient. Moreover, the thrift failed to post adequate loss reserves against bad assets.
 As of Sept. 30, Vista reported that it exceeded its minimum tangible capital requirement of 1.5 percent. However, the thrift fell short of 5 percent core and 8 percent risk-based capital requirements imposed by OTS last year due to the high-risk nature of the institution's operations. As of Sept. 30, 1992, Vista reported core capital of $2.1 million, or 2.16 percent of assets, and risk- based capital of $3.4 million, or 3.9 percent of assets.
 The institution had few sources of capital, and was unable to generate sufficient earnings to overcome the continued deterioration of its asset portfolio, making recovery highly unlikely. Vista had been operating under regulatory growth and lending restrictions.
 Vista Bank, FSB, was a federally chartered stock institution. Shareholders will retain no interest in the new thrift.
 As of Sept. 30, 1992, Vista Bank, FSB, reported assets of $97.1 million, liabilities of $95 million and tangible capital of $2.1 million, for a tangible capital-to-tangible assets ratio of 2.16 percent.
 -0- 1/29/93
 /CONTACT: Laurie Lavaroni, 415-616-1556, or Gwendolyn Gregg-Cauthen, 202-906-7084, both of the Office of Thrift Supervision/


CO: Office of Thrift Supervision; Vista Bank, FSB ST: California IN: FIN SU:

TW -- DC025 -- 0987 01/29/93 17:48 EST
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Publication:PR Newswire
Date:Jan 29, 1993
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