Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, March 22, 1992 TAG: 9203220124
SECTION: VIRGINIA PAGE: D6 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
The RTC - the federal agency overseeing failed savings and loan institutions - also is closing seven other TrustBank branches in Charlottesville, Norfolk, Virginia Beach and Washington, D.C.
It will pay off $178.1 million in insured deposits at the closed branches. According to a RTC statement, the payoff began this weekend. Checks will be mailed directly to depositors.
TrustBank's Roanoke Valley branches were at 4415 Electric Road and 1722 Hershberger Road.
Meanwhile, 24 TrustBank branches - most of them in Northern Virginia - were acquired by other banks, including institutions in California and Florida. The savings and loan was based at Tysons Corner in Northern Virginia.
The thrift's Lynchburg branch, with $12.8 million in insured deposits, was acquired by Virginia First Savings Bank of Petersburg. The office will reopen on Monday.
Deposits at branches being acquired by other banks can continue conducting business with the new owners, the RTC said.
The RTC took over TrustBank in January 1991 when federal regulators said the thrift lacked sufficient capital to operate soundly and had no prospect of replenishment without federal assistance. RTC said it developed business and marketing plans before offering TrustBank to potential buyers.
TrustBank once was the state's eighth-largest savings and loan. It had assets of $1.12 billion and liabilities of $1.11 billion, the RTC said. That included $900.6 million deposited in 100,358 accounts.
Seven bidders submitted proposals to the RTC to buy TrustBank branches.
The agency estimated the ultimate cost to the government for the rescue and sale of TrustBank at $227.1 million.
Earlier this month another Roanoke thrift, CorEast Federal Savings Bank, was sold by the RTC. CorEast was broken into pieces and sold to 10 Virginia competitors.
by CNB