Homestead Savings in Receivership
WASHINGTON - The Office of Thrift Supervision said it placed Homestead Savings Association of Middletown, Pa., in receivership on Friday.
It chartered a new institution, Homestead Federal Savings, to take its place under conservatorship of the Resolution Trust Corp.
|Unsafe Condition'
The OTS said Homestead was operating in an unsafe condition and with insufficient capital.
It lost $16 million in the 12 months through June 30, when it reported assets of $223 million, liabilities of $224 million, and $1.4 million in negative tangible capital. One-fifth of the assets were classified as substandard, doubtful, or loss.
Separately, the Federal Deposit Insurance Corp. said its board approved the assumption of the deposits of Hillsborough Bank & Trust Co., Milford, N.H., by Peterborough Savings Bank.
The latter paid a $268,128 premium for $59.4 million in 3,500 accounts.
