Magazine article American Banker

Run on Certain Sooner Federal Branches Subsides

Magazine article American Banker

Run on Certain Sooner Federal Branches Subsides

Article excerpt

OKLAHOMA CITY -- A run on Tulsa branches of Sooner Federal Savings & Loan Association, Oklahoma's largest savings and loan, appeared to be subsiding Friday.

Rumors of financial difficulties brought lines of customers making withdrawals Thursday, forcing the Tulsa branches to stay open late.

Oklahoma City branches of the Tulsa-based thrift were unaffected. "Here, it's absolutely been a non-event," said Norma Cooper, regional manager for Sooner Federal in Oklahoma City.

Rumors of financial problems are "totally baseless," said W.R. "Rick" Hagstrom, president and chief executive officer. Mr. Hagstrom, who took over as chief executive last week, described withdrawals at some branches as greater than normal Thursday. "I wouldn't call it a run," said Mr. Hagstrom.

He attributed the rumors to the closing of two unrelated financial institutions in Oklahoma and a recent nationally televised program concerning the failure of Commonwealth Savings Co., the nonfederally insured Nebraska thrift.

Kermit L. Mowbray, president of the 10th District Federal Home Loan Bank, was at Sooner Federal headquarters Friday to help restore confidence.

He said Sooner is "a strong association and is in no way considered to be in financial difficulty."

Mr. Hagstrom said the $1.6 billion-asset Sooner expects to report fourth-quarter net income of more than $3 million. Sooner Federal has previously reported profitable operations for its June 30, 1984 fiscal year and had profits of $1. …

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