
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 31, 1993                   TAG: 9303310078
SECTION: BUSINESS                    PAGE: B8   EDITION: METRO 
SOURCE: GEORGE KEGLEY STAFF WRITER
DATELINE:                                 LENGTH: Short

CHARTER FED TO AVERT RECEIVERSHIP

A U.S. Supreme Court decision Monday against Charter Federal Savings Bank of Bristol could put the firm in receivership because of its capital position, but that probably won't happen, said Douglas Deppen, chief financial officer.

Deppen said Charter intends to announce its plans for recapitalization on Friday.

Federal regulatory action could follow the high court's denial of Charter's request for review of an adverse Court of Appeals decision in Charter's lawsuit against two federal agencies. Charter has been in contact with regulatory agencies about its options.

Robert J. Bartel, chairman, said he's optimistic that the Office of Thrift Supervision will give Charter a reasonable opportunity to recapitalize before taking any regulatory action.

In its suit, Charter tried to compel the OTS and the Federal Deposit Insurance Corp. to honor a contract made when the firm acquired four financially ailing thrifts. Charter sought unsuccessfully to include its debts as supervisory goodwill.

Without that goodwill, Charter on Dec. 31 had a tangible capital deficiency of $25.4 million. Its savings accounts remain insured for up to $100,000 by the FDIC.

After the court decision, Charter's stock fell $1.63. It closed at $4 on Tuesday.

Charter has several alternative recapitalization plans, Bartel said. He said he's "enthusiastic about the savings banks's future after the goals have been achieved."

by CNB