WASHINGTON -- The Office of Thrift Supervision placed Jacksonville Federal Savings Bank in receivership and chartered a new federal mutual institution, Jacksonville Federal Savings Association, to take its place.

The OTS said the Florida thrift was operating in an unsafe and unsound condition and had insufficient capital, with no prospect of replenishment without federal assistance.

"Criticized assets" were 28% of the institutions $151 million in total assets as of March 31. An addition to loss reserves was expected to reduce tangible capital from $3.1 million to a negative $1.1 million, prompting the closing.

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