RISING DELINQUENCIES and loan losses in a portion of its mortgage-backed securities portfolio have forced Roosevelt Financial Group to take a $17.8 million charge against first-quarter earnings, reducing results to $5.7 million from $23.5 million. "We think it's easier to sell people on conservatism," said CEO Stanley Bradshaw. Page 6 NEARLY 2 1/2 YEARS after regulators took over First City Bancorporation of Texas, a federal bankruptcy court in Dallas has finally approved the company's plan to emerge from Chapter 11. Page 6 COMMUNITY BANKING: A CONNECTICUT bank on the verge of failure pulled off a miraculous recovery, raising almost $4.8 million in a public offering hours before a regulatory deadline. Page 8 A DISGRUNTLED former director of a Connecticut bank blasted executives and the board for rejecting a buyout offer from Fleet Financial Group. Page 9 MORTGAGES: LENDERS ARE increasingly using tax assessments - rather than appraisals - when evaluating property as collateral for home equity loans. Page 10 THE NATION's 300 largest thrifts increased their assets by about 2% last year, buoyed by continuing strong demand for adjustable-rate mortgages. Page 10 INVESTMENT PRODUCTS: FOLLOWING the lead of other large banks, First Union Corp. will bring the administration of its mutual funds in-house. Page 20 MELLON BANK Corp. was the largest bank seller of mutual funds last year - towering above second-place Chemical Banking Corp. - according to federal data. Page 21 TECHNOLOGY: FOR MANY BANKS, satellite technology could be the most effective way to migrate over time to a client/server architecture, Fred L. Cisewski writes. Page 24 FINANCE: NATIONSBANK, First Union, and Delcor Inc. hope the third time is the charm in their pursuit of National Gypsum. The latest offer, for $1.2 billion, or $54 per share, seems to have garnered the best reception from the wallboard maker's special bid-evaluating committee. Back page BARNETT BANKS shares surged to a new 52-week high TUESDAY as a Lehman Brothers analyst said directors likely will approve either a 15% dividend hike or a 5% stock repurchase program at a meeting today. Back page

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