RTC Sells Thrift to Temple Inland
DALLAS - The Resolution Trust Corp. announced on Friday that it had sold Southwest Federal Savings Association, Dallas, to the thrift units of Temple Inland Inc., a paper and construction products company.
The RTC said Kilgore Federal will acquire 39 of Southwest branch offices. A remaining 20 Southwest and Guaranty were created three years ago under the so-called Southwest Plan, a controversial federal rescue program in which dozens of failed thrifts were merged and sold to investors.
Southwest was seized by the government in May 1990 on the second anniversary of its federally assisted formation.
Guaranty Federal, with about 52 branches and $2.9 billion of deposits, has earned only modest profits since its inception. The thrift reported a profit of $8.3 million last year, representing a 0.22% return on assets. It earned $1.7 million in the first quarter.