Granite-South Boston Pact Approved

WASHINGTON - The Federal Deposit Insurance Corp. has approved the transfer of insured deposits of Granite Co-operative Bank of Quincy, Mass., to South Boston Savings Bank.

The failed bank's branches reopened Friday as branches of South Boston Savings, the principal subsidiary of Boston Bancorp, which has $1.9 billion in assets.

The FDIC became receiver of Granite Co-operative when it was closed by the state banking commissioner, Michael C. Hanson. Granite had $103.8 million in assets and $84.3 million in 14,100 deposit accounts.

Of the deposits, $7.4 million were in accounts exceeding the $100,000 insurance ceiling. The portion not FDIC-insured was covered by a $2.3 million transfer to the FDIC by the Co-operative Central Bank, which insures the state-chartered thrifts.

South Boston Savings paid a premium of $50,000 for the insured deposits and took $6.7 million of the failed bank's assets, but only $378,000 in loans, and three branches. The FDIC will retain Granite assets with a book value of $99.2 million.

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