WASHINGTON - For the price of a new subcompact car, a Philadelphia bank bought $11.8 million in deposits of a failed hometown thrift.
United Bank of Philadelphia, a $26.5 million-asset institution, paid the Resolution Trust Corp. $7,777 for the deposits of Chase Federal Savings and Loan Association of Philadelphia, the RTC announced.
|Best We Can Get'
Chase, which was a minority-owned institution, had $17.3 million of assets and $19.5 million in liabilities, the RTC said.
United Bank's bid was the only one received. United also is a minority-owned institution.
"The best we can get is the best we can get," an RTC spokeswoman said.
In addition to getting Chase's deposits, United will have the use of its buildings for five years, with an option to buy them.
United is also buying $1.8 million of Chase's cash and cash-equivalent assets for an additional $1.8 million.
And it will have the option of buying at market value up to $11.8 million in pools of loans from the RTC's portfolio.
Premier of Ohio Makes Purchase
Separately, $489 million-asset Premier Bank and Trust in Elyria, Ohio, will pay the RTC $947,500 for a $29 million-asset failed thrift.
Premier will assume the $18.7 million in deposits of Crestline Federal Savings and Loan Association in Crestline, Ohio.
In addition, Premier will pay $16.5 million for the same amount of the failed thrift's assets, which include cash as well as home, consumer, and commercial loans.