Magazine article American Banker

Home Savings Again No. 1 in Thrift Deposits: 3 Citicorp Units among Top 10 in Net Worth-to-Assets Ratio

Magazine article American Banker

Home Savings Again No. 1 in Thrift Deposits: 3 Citicorp Units among Top 10 in Net Worth-to-Assets Ratio

Article excerpt

NEW YORK -- Home Savings of America, Irwindale, Calif., has regained its position as the largest savings institution in deposits with $19.3 billion on June 30, up 4% from yearned 1984, when it ranked second with $18.6 billion.

Home Savings -- which had ranked as the nation's top savings and loan association in deposits for 28 consecutive years until being surpassed by American Savings & Loan Association, Stockton, Calif., at yearend 1983 -- supplanted American Savings. Home was helped by its second-quarter acquisition of five Ohio-based associations. These institutions had combined assets of $445 million.

American Savings, which is a subsidiary of the troubled Financial Corporation of America, fell to second place with deposits of $17.9 billion at mid-year, down 11.7% from $20.3 billion just six months earlier. But American retained its No. 1 ranking in terms of assets, despite a 4.1% drop to $27.7 billion at midyear, from $28.9 billion at yearend 1984.

Home Savings posted a 3.2% gain in assets over the first half of 1985 to $24.4 billion, to narrow the asset spread between itself and American.

Among the top 300 thrifts, American Bankers identifies the 10 with the best regulatory net-worth-to-total-assets ratio at midyear. The ratio is an indicator of an institution's ability to withstand financial shocks. It is also a gauge to measure an institution's ability to expand its deposit and asset base.

Among these 10 institutions, the three thrift subsidiaries of the nation's top banking company, Citicorp, New York, ranked first, second, and fourth, respectively.

Citicorp Savings of Florida, Miami, was tops with a ratio of 28.8%. It had regulatory net worth of $919.6 million and total assets of $3.19 billion on June 30. A spokesman stated that the institution had been "capitalized heavily within the last six months."

Peter Lefferts, chairman of the Miami subsidiary, said: "We had always planned to keep the S&L well capitalized, because we believe that strength is one of our appeals." He added: "We certainly want to expand our presence as we develop the operating base, but that can be achieved with capital injections at the right time. We have nothing planned."

Citicorp Savings, San Francisco, was second. It had a 62.1% insurance in its regulatory net worth to $812.2 million on June 30, from $501.1 million at yearend. Over the same period, its assets rose 7% to $4.2 billion. As a result, its net-worth-to-assets ratio rose to 19.46% from 12.85% at yearend. Its yearend ratio was the best among the top 300 thrifts on Dec. 31, 1984.

Citicorp Savings of Illinois, Chicago, had the fourth best ratio of 14.91%.

The third best ratio was posted by Citizens Savings BAnk, Providence, R.I. The bank, a subsidiary of Citizens Financial Group Inc., went public over the first half of 1985, converting from a mutual to a stock savings bank and raising about $150 million in capital. As a result of the conversion, net worth rose 136% to $226.9 million at midyear, and its ratio rose to 18.45% from 9.24%, which was the fifth best ratio on Dec. 31, 1984.

Regulatory net worth includes permanent, reserve, or guarantee stock; paid-in surplus; qualifying mutual capital certificates; income capital/net worth certificates; qualifying subordinated debentures; appraised equity capital; reserves; undivided profits; and net undistributed income.

The American Banker surveyed approximately 550 savings banks and savings and loans to identify and rank the top 300 thrifts in deposits and in assets. When thrifts do not provide the American Banker with data, other publicly available sources of information are used. Listed below are some of the more interesting findings from this year's survey. …

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