WASHINGTON - The Federal Deposit Insurance Corp. is satisfied with Crossland Savings' first six months as a ward of the government, said Harrison Young, the FDIC's director of resolutions.
Crossland is closing branches, cutting staff, and selling assets - just as the FDIC expected Jan. 24 when it pumped $1.2 billion into the failing bank, Mr. Young said in an interview.
The New York-based savings bank earned $9.9 million in the second quarter, up from $4.5 million in the first quarter.
By the end of August, Mr. Young said, Crossland's assets will be below $7 billion, compared with $9.2 billion in January.
Crossland has closed 14 branches in Florida and three in New York City. The administrative staff has been cut 10% since the takeover, he said. More people will be off the payroll when a mortgage subsidiary is sold in September or October, Mr. Young said.