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.
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.