Household Bank buys Yorkridge-Calvert

September 29, 1990|By Peter H. Frank

Household Bank FSB, continuing its buying binge in the Baltimore area, has taken over the deposits and offices of the failed Yorkridge-Calvert Federal Savings Association.

The nine offices of Yorkridge-Calvert will open Monday morning as a division of Household with no significant changes.

Yorkridge's $290 million worth of insured deposits will continue to be federally insured, according to the Resolution Trust Corp., the agency in charge of operating and disposing of the nation's insolvent thrifts.

Yorkridge-Calvert, which has been operated by the RTC since December, went on the market in June.

Household's winning bid for the insolvent thrift's deposits yesterday continued its history, going back to the 1984 purchase of the failed Fidelity Federal Savings and Loan As

sociation, of picking up the offices and deposits of one thrift after another in Maryland.

The company, which is based in Newport Beach, Calif., and is a subsidiary of Household International Inc., acquired nearly $900 million in deposits from the failed Baltimore Federal Financial FSA in April.

It recently agreed to purchase the deposits in the Towson office of Municipal Savings Bank FSB, a unit of Baltimore Bancorp.

Besides Yorkridge-Calvert's nine offices, Household has 26 offices in the Baltimore area.

"We have made a major commitment to the Baltimore-Washington corridor, and we see additional opportunities for growth in that corridor," said John G. Moran, president of Household's Eastern division.

Mr. Moran said Household will not change the business hours at the branches for now and that no decision will be made for a few monthson whether to close any offices.

"It will be business as usual at 9 o'clock" Monday morning, he said.

He said Household will continue to honor the terms and conditions of Yorkridge-Calvert's accounts and certificates of deposit.

Under the terms of the transaction, Household, in exchange for paying the RTC $1.2 million, will receive Yorkridge-Calvert's 53,000 depositaccounts and purchase $4.4 million in assets.

The RTC will retain $476.4 million in loans, mortgages and other assets. Those assets will be held for sale on the open market in an effort to recoup the RTC's costs and losses suffered by uninsured depositors and other general creditors.

The final cost of the transaction to the RTC is expected to be $43.9 million, the agency said.

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