Magazine article American Banker

New Thrift Steps in for Golden Pacific: Two Banks Fail in Texas and Oklahoma, Boosting This Year's Total to 85

Magazine article American Banker

New Thrift Steps in for Golden Pacific: Two Banks Fail in Texas and Oklahoma, Boosting This Year's Total to 85

Article excerpt

WASHINGTON -- The Federal Home Loan Bank Board said Friday that it has chartered a new federal mutual association to acquire the assets and liabilities of the Golden Pacific Savings and Loan Association in Windsor, Calif., which the board said was insolvent.

The newly formed mutual association, with assets of $43.2 million, will be known as Golden Pacific Savings and Loan Association, a Federal Savings and Loan Association. The acquisition means uniterrupted service for the association's depositors.

Meanwhile, two more commercial banks were closed Friday, bringing this year's total to 85, according to federal bank regulators.

In Texas, the 22-year-old Western State Bank in Denton was closed and the Federal Deposit Insurance Corp. was named receiver. Deposits of $22.5 million in 5,300 accounts were assumed by the Texas Bank of Denton, a new state bank, which paid a $100,000 purchase premium. The FDIC is keeping assets of about $5 million.

The 85th bank failure was the First National Bank in Terrel, Okla., closed Friday by the Comptroller of the Currency. The bank, established in 1920, had about $3 million, in deposits and 695 accounts, according to the FDIC.

The Bank Board -- with agreement from the California commissioner of savings and loans -- appointed the Federal Savings and Loan Insurance Corp. as receiver for the former Golden Pacific Savings.

To facilitate the acquisition, the FSLIC will purchase income capital certificates, a form of net worth, from the new association in an amount sufficient to insure its financial stability. …

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