Hibernia Purges Top Managers, Posts $33.2 Million Loss

Hibernia Corp. on Tuesday ousted its entire senior management team, announced a $33.2 million second-quarter loss, and said it was "actively seeking outside investors, a merger partner, or both."

Sidney W. Lassen, chairman of the company's executive committee, was named acting president and chief executive.

New Orleans-based Hibernia announced definite plans to sell its Texas franchise, which encompasses 25 branches holding $1.1 billion of assets.

The announcement was made after the market's close. Hibernia common shares on Tuesday fell 87.5 cents to $4.25, surrendering all of the previous day's gain.

The decline followed NCNB Corp.'s denial it might provide additional equity for Hibernia.

Ailing Hibernia, which lost $50 million during the first quarter, said it would shrink in order to raise its capital ratios "within required government standards."

The $7.2 billion-asset unit said it had entered a consent agreement with the Office of the Comptroller of the Currency.

Among the departing executives was Martin C. Miler, the chairman and CEO who picked up more than $4 million in salary since 1987.

In a sweeping housecleaning, Hibernia also announced the departure of the lead bank's chairman, Thomas A. Masilla Jr., vice chairman O.C. Russell, Jr., and president Charles J. Shaw, Jr.

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