Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, March 12, 1992 TAG: 9203120081
SECTION: BUSINESS PAGE: B-5 EDITION: METRO
SOURCE: MAG POFF BUSINESS WRITER
DATELINE: LENGTH: Medium
Hughes, who had a loan with CorEast, said the problem with thrifts was caused by "too many people higher up with too much greed."
He came to the former CorEast office in downtown Roanoke on Wednesday to make a payment on his loan, only to be told that installments now must be mailed to the Richmond address printed on his payment book.
First Virginia Bank-Southwest acquired the insured deposits of CorEast branches in the Roanoke Valley. But Resolution Trust Corp., Reginald K. Hutcherson didn't stay with CorEast out of sentiment. "I go wherever it's most competitive," he said. the federal agency that's been running the failed thrift for the past year, earlier had sold CorEast's loans to other investors.
Kathy Byrd of Roanoke came to the CorEast office Wednesday to empty her safe deposit box. Her valuables had been in the box since the time CorEast was convenient to her job downtown, she said.
Byrd said she hadn't decided where to place the contents now.
A man and a woman who declined to give their names came to the former office with several savings passbooks and certificates owned by family members, along with the key to a safe deposit box.
Despite the multiplicity of accounts, they said they didn't care one way or another about CorEast's closing.
But they said they were delighted to learn that all of their signature cards and other records were at First Virginia Bank, so they had nothing to sign.
They were even happier to learn that former CorEast customers will have free use of a safe deposit box for a year.
James Hinson, president of First Virginia Bank-Southwest, said the policy was adopted because CorEast customers had varying periods of time left on their box rentals. Although First Virginia received none of the outstanding rent, it will credit all CorEast customers with a full year, he said.
First Virginia will move the safe deposit boxes from CorEast to its own branches within the next few weeks. People who rented them from CorEast will have access to their own boxes at First Virginia.
Reginald K. Hutcherson, former vice chairman of CorEast, said he had banked there for at least 35 years, from the time it carried the name First Federal Savings & Loan Association. He continued as a customer even after the Resolution Trust Corp. took over the thrift in February 1991 and terminated all of its managers.
But Hutcherson didn't stay with CorEast out of sentiment. He said he liked the service, the rates and the fee schedule. "I go wherever it's most competitive."
First Virginia, Hutcherson said, is "doing a good job" and paying attention to its new customers from CorEast. He said he found First Virginia personnel friendly.
He was impressed that First Virginia hired former CorEast employees to help with the transition. When he went to First Virginia, Hutcherson said, CorEast tellers greeted him by name.
"It was a good idea," Hutcherson said, and it helped CorEast customers feel welcome.
Another long-time CorEast customer, John E. Campbell of Roanoke, said he is "satisfied now" with the situation. "It's worked out OK. It sounds OK to me."
by CNB