RTC sells assets of Gaithersburg thrift

November 19, 1994|By Kevin L. McQuaid | Kevin L. McQuaid,Sun Staff Writer

The Resolution Trust Corp. announced yesterday that four area financial institutions have acquired the remaining assets of Standard Federal Savings Bank for franchise fees totaling $8.36 million.

The four institutions -- Enterprise Federal Savings Bank, Loyola Federal Savings Bank, Farmers & Mechanics National Bank and Maryland Federal Savings and Loan -- bought 11 branches and will assume $99.7 million in insured deposits and other assets.

The largest purchaser of the Gaithersburg-based thrift's remaining assets was Enterprise Federal, which acquired four branches with deposits of $33.8 million. Enterprise Federal, a newly chartered federal savings bank, becomes the first minority-owned thrift chartered in Prince George's County.

The RTC intends to provide Enterprise Federal with certain minority preferences, including interim capital assistance and the option to purchase loans at market value from the RTC's portfolio.

The 11 branches are set to reopen under new ownership Monday, with deposits insured by the Federal Deposit Insurance Corp. and the Savings Association Insurance Fund.

The two branches Loyola Federal bought are in Laurel and Owings Mills.

The RTC seized Standard Federal in October 1992 because it did not meet capital requirements. At the time, the thrift had $1.83 billion in assets, $882 million in deposits and a $36 billion mortgage servicing portfolio. In November 1992, Mellon Bank Corp. bought eight of its branches for $12 million.

The RTC estimated its total cost to manage and sell the thrift was $371.6 million.

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