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RTC REVIEW

RESOLUTION TRUST CORPORATION

VOL III NO. 1

January 1992

Albert V. Casey, Pnsldeot & CEO

David C. Cooke, Executive Director

RTC Closed 9 Thrifts in November and an Additional Thrift in
December.

584 Thrifts Closed by RTC from its Inception in August 1989
Through December 1991. 19 Million Deposit Accounts have been
Protected.

•

Recoveries from Principal Collections, Net of Assets Put Back to
RTC, Total $5 Billion in November, $218 Billion Since Inception.

Note: The date of the RTC Review has been changed
to reflect the month in which it is issued instead of the
month of the data contained In the Review. There will
be .ru2.November1991orDecember1991 issue.

RTC CASELOAD
In November, the RTC closed 9 savings associations. The RTC also took 7 institutions
into its conservatorship program. As a result,
the number of conservatorship institutions
dropped to 91 at the end of November. These
resolutions increased the number of receiverships to 583 at the end of November.
The pace of resolutions slowed considerably
towards the end of 1991 as the RTC reached
its funding limits. In November, Congress
passed the RTC Refinancing, Restructuring,
and Improvement Act of 1991, which
provided an additional $25 billion in loss
funds for the RTC. Following this action, the
RTC initiated the marketing process for 53

institutions. It is expected that these institutions will be resolved in early 1992.

RTC November Caseload
($ in billions)

Nwnl2a
End of October
New Conscrvatorships
Resolved Cases
End of November

I ,ial2ilitics

$52.2

$53.0

$40.7

0.5

0.4

9
91

1.6

2.3
$51.1

$38.9

$48.7

2.2

ts based on preliminary 11/30/91 and 10/31/91 financial reports
Liabilities and Deposits based on 10/31/91 financial reports.

CONSERVATORSHIP, RECEIVERSHIP ASSETS
UNDER ATC MANAGEMENT
As of November 30, 1991

RECEIVERSHIPS

CONSERVATORSHIPS
Aa of November 30, 1991

AB of November 30, 1991

0th.
Loarw

0th.
Miga. 16.5%

Del.

Loarw

Del.

11.4%

Loarw
26.0%

MBS 9.4%
4.8%

MBS
1.3%

REO 12.8%

(Percentage Of Gross Asse15)

(Percentage Of Gross Assets)

CONSERVATORSHIP INSTITUTIONS
(dollars In bllllona)

RECEIVERSHIP INSTITUTIONS
(dollars In bllllon■)

Amount
$ 8.0
4.6

Percent
Gross Assets
16.5%
9.4

Perf. Lns. - Total
1-4 Family Mtgs.
Cstm. & Land
Other Mtgs.
Other Loans

21.9
11.0
1.8
6.9
2.3

45.1
22.5
3.7
14.2
4.6

Perf. Lns. - Total
1-4 Family Mtgs.
Cstrn. & Land
Other Mtgs.
Other Loans

34.1
15.1
1.8
12.7
4.5

38.6
17.1
2.0
14.4
5.1

Del. Lns. - Total
1-4 Family Mtgs.
Cstrn. & Land
Other Mtgs.
Other Loans

5.5
0.6
1.9
2.4
0.7

11.4
1.2
3.8
5.0
1.4

Del. Lns. - Total
1-4 Family Mtgs.
Cstrn. & Land
Other Mtgs.
Other Loans

23.0
2.6
7.4
10.1
2.8

26.0
3.0
8.4
11.5
3.2

Real Estate Owned
Subsidiaries
Other Assets

5.3
1.1
2.1

11.0
2.3
4.3

Real Estate Owned
Subsidiaries
Other Assets

11 .3
6.4
8.1

12.8
7.3
9.2

Cash & lnvst. Sec.
Mtg. Backed Sec.

Gross Assets

$ 48.7

Percent
.Amount Gross Assets
Cash & lnvst. Sec. $ 4.3
4.9%
Mtg. Backed Sec.
1.1
1.2

100.0%

Gross Assets

Data based on preliminary 11/30/91 information
Number of institutions: 91

$ 88.2

100.0%

Data based on preliminary 11/30/91 information
Number of institutions: 583
* Excludes $11 .2 billion in cash, investments
(including restricted investments), and accounts
receivable accumulated by Receiverships.

-2-

ASSET INVENTORY

THRIFT CLOSINGS

In November, the amount of assets under
RTC management, including both conservatorships and receiverships, dropped from
$141 billion to $13 7 billion. Over the last five
months, assets under RTC management have
dropped $31 billion.

The RTC closed 9 institutions in November
and 1 institution in December.
As of the end of November, RTC resolutions
had protected 18.7 million deposit accounts
from financial loss. These accounts had an
average account balance of $9,500. An additional 6000 accounts were protected in
December.

The $137 billion of assets under RTC
management on November 30, consisted of:
$18 billion in cash and securities, $26 billion
in performing 1-4 family mortgages, $30 billion in other performing loans, $29 billion in
' delinquent loans, $17 billion in real estate, $8
billion in investments in subsidiaries, and $10
billion in other assets.

The 9 resolutions in November brought the
total number of thrift closings to 583 from the
establishment of the RTC in August 1989
through November 30, 1991. These thrifts
held $181 billion in assets at the time of
closure. Of the total, $40 billion of assets, or
22%, were sold to acquirers (after taking into
account assets returned thus far to the RTC
under putback provisions of resolution transactions). Additional assets may be returned
to the RTC in future months.

The 91 conservatorships held $49 billion in
gross assets on November 30, 1991. Of the
total, cash and securities (including substantial amounts pledged as collateral against borrowings or reinvested proceeds of asset sales)
represented 26%; performing 1-4 family
mortgages, 23%; other performing loans,
23%; delinquent loans, 11 %; real estate,
11 %; investments in subsidiaries, 2%; and
other assets, 4%.
The 583 receiverships held $88 billion in assets on November 30. Because many of the
relatively marketable assets have been sold
before an institution enters a receivership,
most of the assets retained by the RTC in
receivership consisted of lower quality, less
marketable assets. Thus, real estate and
delinquent loans represented 39% of
receivership assets. Cash, securities, and performing 1-4 family mortgages represented
only 23% of receivership assets. Moreover, a
substantial amount of the securities and performing mortgages in receiverships were junk
bonds and substandard loans. The $88 billion
excludes approximately $11 billion in cash,
investments (including restricted investments), and accounts receivable accumulated
by receiverships.

Estimated resolution costs for the 583 closed
thrifts totalled $77.2 billion, 36% of their total
liabilities at the time of resolution. If the
insured deposits of all 583 institutions had
been paid out to depositors, the estimated
resolution cost would have been $79. 7 billion.
The $2.5 billion difference represented the
estimated savings, or premiums, over insured
deposit payout costs. These savings were
equal to 2% of core deposits, represented by
deposits with balances below $80,000.

-3-

Of the 583 cases, 343 were purchase and assumption transactions {P&As), in which all
deposits, certain other liabilities, and a portion of the assets were sold to acquirers.
Another 156 were insured deposit transfers
(IDTs), in which the acquiring institutions
served as paying agents for the RTC, established accounts on their books for the
depositors of the failed institutions, and acquired some of their assets in many cases. The
remaining 84 were insured deposit payouts
(POs) in which the RTC directly paid

depositors their insured deposits and retained
all of the assets.

from inception through November were 38 %
of the beginning book value of assets. ·

Most attractive franchises were resolved
using P&As, and these acquirers paid considerably higher premiums over deposit payout
costs: 2.4% of core deposits, compared to .7%
for IDTs. Although only 59% of RTC resolutions were P&As, these transactions accounted for 77% of the deposits that have
been made whole by the RTC from its inception through November 1991.

November sales and collections of $5. 7 bil lion
included $1.5 billion in sales proceeds from
conservatorships, $1.4 billion in other conservatorship asset collections, $0.4 billion in
resolution sales, and $2.5 billion in receivership sales and principal collections.

The P&A transactions included 25 Accelerated Resolution Program (ARP) cases,
in which the institutions were closed without
first being placed in the conservatorship program.

ASSET REDUCTIONS
In November, the proceeds of asset sales and
other principal collections were $5.7 billion.
This included sales and principal collections
in conservatorship institutions, assets passed
to acquirers of resolved thrifts, and sales and
principal collections in receivership. Due to
asset putbacks of $552 million, net asset
reductions were $5.1 billion in November.

Since its inception, the RTC collected $72
billion through conservatorship sales, $59 billion in other conservatorship collections, $40
billion in resolution sales (net of putbacks),
and $47 billion in receivership sales and principal collections. From inception through
November, the RTC collected $100 billion
from securities, $86 billion from mortgages,
$18 billion from nonmortgage loans, $7 billion from real estate, and $8 billion from other
assets.
In terms of book value, November sales and
collections were $6.2 billion. The average
recovery rate on the collection of these assets
was 93%. From the inception of the RTC
through November, book value asset reductions were $229 billion, and the RTC
recovered 95% on these collections.

November activity brought total sales and
principal collections since inception to $218
billion, net of putbacks to date. As noted
earlier, additional assets may be returned to
the RTC under unexpired putback provisions
of resolution transactions.

The RTC also collected $0.6 billion in
receivership income in November. From its
inception to November 30, 1991, the RTC has
collected $8.4 billion in receivership income.

The $218 billion in sales and principal collections represented 63% of the total book value
of assets of all 674 institutions taken over by
the RTC at the time they came under its
control. The comparable figure for the 583
resolved institutions was higher -- 72% -reflecting the volume of assets passed at
resolution and the amount of time that these
institutions have been under RTC control.
For the 91 conservatorships existing on
November 30, sales and principal collections

Assets put back to the RTC in November,
primarily from assets passed to acquirers in
earlier months, totalled $552 million. From
the inception of the RTC through November,
asset putbacks totaled $22.3 billion, which is
about 36% of the assets intially passed to
acqmrers.

ASSET PUTBACKS

-4-

ASSET COLLECTIONS
CONSERVATORSHIPS, RESOLUTIONS AND RECEIVERSHIPS
SALES AND COLLECTIONS
(DOLLARS IN MIWONS)

INCEPTION 1989 THROUGH NOVEMBER 1991

NOVEMBER 1991

($ In milllons)

($ In mllllons)

~;;::s:~....is...--.JI

Other
Other Assets

{1'/"'7'7'74'..~~

Loans

$7,957

$248

Securities $99,737

Securttles $2,298

Inception Through November 1991
Reaolution

Receiwrahlp

Collection a

Sale• (Net) •

Salee & Collection•

$45,085

$28,323

$18,427

$9,902

$99,737

17,823

21,331

20,280

28,382

85,597

Other loan•

3,555

7,321

3,188

4 ,328

18,370

REO

4,891

1,972

8,718

Other Aaaet,

1,382

1,551

480

4,543

7,957

$72,338

$58,528

$40,389

$47,128

$218,3TT

Conaervatorahipa
Salee
Securitiee
Mortgagee

TOTALS

Total

November 1991
Coneervatorship1
Sales

Collection•

Reaolution

Receiwrship

Sales

Sale• & Collections

Total

Securitiee

$894

$282

$448

$2,298

Mortgage•

871

440

103

1,270

2,484

153

248

188

284

414

440

$1,468

$1,418

$398

$2,453

$5,734

Other Loan•
REO

Other Aaeet•
TOTALS

1991 Year to Date
Reaolution

Conaervatorship1

Receiwrahip

Sale•
$13,058

Collection,

Mortgagee

9,854

6,391

9,045

20,930

48,220

Other Loan,

1,334

2,043

1,100

3,002

7 ,480

REO

1,398

1,394

2,825

311

902

234

3,189

4 ,638

$25,953

$24,412

$18,730

$34,880

$103,955

Securitiee

Other Aaaet1
TOTALS

$15,075

Salee & Collection,
Sale•
$8,318
$8,344

Net Reaolution Sales are net of all putback1 recorded to date.

-5-

Total

$42,794

RESOLUTION SALES
&
ASSET PUTBACKS
(DOLLARS IN MILLIONS)

lnceQtion Through November 1991

1991 Year to Date

Groa

Reeolution

A888I

Salff

Putbackl

Asset

Reeolution
Net

Putback■

Sale•

•

Net

Securities

$17,480

$1,053

$18,427

Securities

$8,318

$943

Mortgage,

37,996

17,735

20,260

Mortgages

9,045

9,024

5,998

2,830

3,168

Other loan•

1,100

788

312

105

1.088

608

480

$62 ,687

$22,278

$40,389

Other Loan•

REO

OtherMNtl
TOTALS

REO

OtherAAet1
TOTALS

$7,376

234

458

(225)

$18,730

$11,243

$7,487

AAet putback1 during 1991 }'Ml' to date include a888l1 put back from reeolution1 prior to 1981

a■

well aa 1991 resolutions.

Note: Data on a888t putbackl and llllle1 exclude eome a888l1 returned to the ATC by acquirer1 during the month of resolution which
are not recorded as llllle1.

sociates, Sioux Falls, SD, for $17.2 million. The
loans were assets retained by the RTC following
the resolution of Midwest Federal Savings Bank
of Minot, Minot, ND, on September 21, 1990.

MAJOR ASSET SALES
Some recent RTC asset sales include:
•

A portfolio containing 175 non-investment-grade
commercial loans and real estate properties was
sold to Portfolio Funding Corporation, Los Angeles, CA, for $506 million. The loans and
properties were assets of six failed savings and
loan institutions in Arizona, California, and
Colorado.

•

A portfolio of 367 performing single-family
mortgages was sold to New South Federal
Savings Bank, Birmingham, AL, for $15.1 million.
The loans were assets retained by the RTC following the resolution of Capital-Union Federal
Savings Association, Baton Rouge, LA, on
June 21, 1991.

•

Nine hundred acres of Superstition Springs, a
planned residential and commercial development
in Mesa and Gilbert, AZ, was sold to Superstition Springs Investors Limited Partnership,
Phoenix, AZ, for $19.9 million. The remaining
300 acres of Superstition Springs are currently
under the control of bankruptcy courts. The
property was an asset retained by the RTC following the resolution of Western Savings and Loan
Association, FA., Phoenix, AZ, on May 31, 1990.

•

Sunburst Apartments, a 256-unit complex in
Lewisville, TX, and Creekwood I Apartments, a
232-unit complex in Irving, TX, were sold to
Cook Inlet Region Inc., Anchorage, AK, for
$14.1 million. The complexes were assets
retained by the RTC following the resolution of
Southwest Federal Savings Association, Dallas,
TX, on July 26, 1991.

•

Two nursing homes/retirement centers, Albany
House of Evanston, Evanston, IL, and Hampton
Plaza Health Care Center, Niles, IL, were sold to
G.W. Burton & Associates, Inc., Niles, IL, for ap-

•

A portfolio containing 186 performing commercial loans was sold to LA. Amundson & As-

-6-

proximately $14.1 million. The properties were
assets of Home Federal Savings of Kansas City,
Kansas City, MO, which has been operating
under RTC supervision since March 15, 1991.
•

•

A portfolio of 41 mortgage-backed securities was
sold to First Tennessee Bank, Memphis, TN, for
$10 million. The securities were assets of Far
West Federal Savings Bank, Portland, OR, which
has been operating under RTC supervision since
May 23, 1991.
Festival Shopping Center, a 167,436-square-foot
retail center in Littleton, CO, was sold to Festival
Associates, L.P., Denver, CO, for $5.5 million.
The property was an asset retained by the RTC
following the resolution of First Savings of Arkansas, FA., Little Rock, AR, on July 26, 1991.

SOURCES AND USES OF FUNDS
From its inception through November 30,
1991, the RTC obtained $144 billion in funds
from the .following external sources: $50 billion in FIRREA appropriations, $30 billion in
funding from the Resolution Trust Corporation Funding Act of 1991, and $64 billion in
Federal Financing Ban1c (FFB) borrowings.
The RTC also obtained $39 billion m
recoveries from receiverships.

SOURCES AND USES OF FUNDS
($ in bllllons)
Inception through November 30, 1991

SOURCES:
Initial Treasury Appropriations
FHLB Contribution
REFCORP Borrowin~
FFBBorrowin~
Funds from RTC Funding Act of 1991
Total External Sources
Recoveries from Rcceive~hips
TOTAL SOURCES
USES:
Resolutions and Rcceive~hip Funding
Consctvato~hip Advances Outstanding •
FFB Interest
Other Disbursements (Net) 00
TOTAL USES
NEf CASH AVAll.ABLE

1.2
30.1
64.0
3Q.Q
144.1
39.2

ll8.U
S 163.5
5.1
4.7
0.1

l.lll

L2.2

• Comervatonbip balancca are net principal balar>c:a oui.unding.
" Includes apenoa paid on behalf ol comervatonbipo and other corponte
diabunementJ, lao inlft"esl paymenll and C2pelllC reimbunementa received
Crom conservatonbipo and other oourca.

RTC. Outstanding advances to conservatorships existing at the end of September totalled
$5.1 billion. Interest on FFB borrowings was
$4.7 billion. This left $9.9 billion in cash on
hand on November 30.

The FIRREA appropriations include $30.1
billion from REFCORP, $18.8 billion in
Treasury funding and $1.2 in FHLB contributions. The Resolution Trust Corporation
Funding Act of 1991 provided for an additional $30 billion in loss funds through Treasury
appropriations.
Working capital, obtained from the FFB, issued for the temporary funding of assets
retained by the RTC when institutions are
resolved. Working capital has also been used
to replace high-cost liabilities and meet liquidity needs of conservatorship institutions.
The RTC's outstanding borrowings and other
liabilities are subject to a limitation
prescribed by FIRREA

S 18.8

NEWS NOTES
RTC TO SOLICIT BIDS FOR ACQUISITION OF 53 SAVINGS ASSOCIATIONS

The RTC has directed its Resolutions Group
to begin the sales process for 53 savings associations located in 27 states. The thrifts
collectively have deposits of approximately
$17.7 billion.
"With additional short-term funding of $25
billion, the Corporation can restart its S&L
marketing effort and move forward with an
aggressive campaign to get the sale of these
insolvent thrifts back on schedule," said RTC

The 583 resolutions through November 30
required outlays of $163.5 billion from the
-7-

President and Chief Executive Officer Albert
V. Casey.

ship program. Bear, Stearns served as the
lead managing underwriter for the offering.

Included among the 53 thrifts being marketed
are 14 large institutions that will be handled
by the Major Transactions group in
Washington. The remaining 39 thrifts will be
handled by the RTC's Regional Offices in
Atlanta, Dallas, Denver, and Kansas City.

The Series 1991-M7 securities are backed by
approximately $240 million of multifamily,
fixed- and adjustable-rate mortgages
originated by 21 savings associations prior to
their placement in the RTC's conservatorship
program. Kidder, Peabody & Co. Inc. served
as the lead managing underwriter for the offering.

A listing of the groups of thrifts is available
from the RTC Reading Room in Washington,
DC, or by calling 202-416-6940.
RTC HOLDS FOUR OFFERINGS OF
MORTGAGE-BACKED SECURITIES

The RTC held four offerings of mortgage
pass-through securities in December totaling
about $1.8 billion. The securities, all rated
AA or AAA, were RTC Mortgage PassThrough Certificates, Series 1991-16 and
1991-17, and RTC Multifamily Mortgage
Pass-Through Certificates, Series 1991-M6
and 1991-M7.
The Series 1991-16 securities are backed by
approximately $560 million of single-family,
adjustable-rate mortgages originated by approximately 110 savings associations prior to
their placement in the RTC's conservatorship
program. Bear, Stearns & Co. Inc. served as
the lead managing underwriter for the offermg.
The Series 1991-17 securities are backed by
approximately $385 million of single-family,
fixed-rate mortgages originated by 15 savings
associations prior to their placement in the
RTC's conservatorship program. The First
Boston Corporation served as the lead
managing underwriter for the offering.
The Series 1991-M6 securities are backed by
approximately $650 million of multifamily,
fixed- and adjustable-rate mortgages
originated by three savings associations prior
to their placement in the RTC's conservator-

The mortgages backing the offerings are performing and generally do not conform to Fannie Mae's or Freddie Mac's standards. By
securitizing non-conforming mortgages, the
RTC can produce a more marketable asset,
significantly improving cash recoveries for
the taxpayer.
In April, the RTC filed a shelf registration
statement with the Securities and Exchange
Commission for the sale of $4 billion of
mortgage pass-through securities backed by
mortgages from RTC conservatorship and
receivership institutions. In September, the
RTC filed with the Securities and Exchange
Commission for the sale of an additional $10
billion of such securities. There have been 19
previous takedowns from the RTC's $14 billion shelf totaling approximately $8.4 billion.
SIX PEOPLE CHARGED FOLLOWING
RTC LAND FLIP PROBE; TWO PLEAD
GUILTY

Six individuals were arrested and recently
charged with wire fraud for their participation
in a scheme to commit 10 land flips in the
Boston, Massachusetts, area. The charges
followed an investigation by the RTC's Office
of Inspector General (OIG) and the Federal
Bureau of Investigation (FBI).
A land flip is a series of real estate sales
resulting in the inflation of the stated market
value of a parcel of property to unrealistic
levels, which allows the fraudulent securing of
-8-

a mortgage greatly in excess of the property's
true value.

Manufacturers Hanover Trust Company,
New York, New York.

An eight-count indictment unsealed December 5, 1991, in federal district court in Boston
charged Mark Lunardo and his wife, Gina
Lunardo, of Andover, Massachusetts; Robert
E. O'Connor of Westfield, Massachusetts;
and William W. Lilly, formerly of Lynnfield,
Massachusetts, with undertaking a scheme to
commit wire fraud in connection with a series
of land flips. Lilly is already serving a fiveyear sentence on unrelated bank fraud charges.

The indictment alleges that the Lunardos,
Tevrows, O'Connor, and Lilly devised a
scheme to defraud mortgage companies by
obtaining mortgages on 10 properties on the
North Shore in Massachusetts greatly in excess of their true market value. The Tevrows
and Lilly allegedly located property to be
flipped and found the "straw" buyers and
sellers of the property. The Lunardos, who
operated USA-1 Financial Services, Inc., a
mortgage origination Hrm, allegedly
prepared fraudulent mortgage applications
with falsified tax returns and other documents, which were forwarded to lenders
doing business with USA-1 Financial.

A one-count information was also released
December 5, 1991, charging Barry Tevrow
and his wife, Diana Tevrow, of Swampscott,
Massachusetts, with conspiracy to commit
wire fraud in connection with the same land
flip scheme. On January 15, 1992, the Tevrows pleaded guilty to the charge. Sentencing
for the couple is scheduled for April 10, 1992.
The couple each face a maximum penalty of
five years imprisonment and a $250,000 fine.
'The indictments and arrests to date in this
case reflect the combined efforts of the U.S.
Attorney's Office, the FBI, and the RTC Inspector General's office to uncover
fraudulent real estate transactions in the Boston area," said RTC Inspector General John
Adair. "Fraudulent transactions, such as land
flips, can create losses for thrifts and other
financial institutions under the RTC's control."
The RTC OIG entered the case because a
number of the land flip transactions under
investigation were financed through
mortgages obtained fraudulently from CenTrust Mortgage Corporation (CMC), Deerfield Beach, Florida. CMC was a wholly
owned subsidiary of CenTrust Savings Bank,
FSB, a Miami, Florida, institution placed
under RTC supervision in February 1990.
CenTrust is now in receivership, and CMC
was sold in November 1991 by the RTC to

O' The indictment further alleges that
Connor, who operated Altowne Appraisal
Services, Inc., prepared falsified appraisals to
support the fraudulently inflated property
prices. After financing was obtained, the coschemers allegedly split the illicit profits,
which exceeded $2.3 million.

If convicted of the charges, each defendant
faces a maximum sentence of five years imprisonment and a $250,000 fine on each
count.
JOSE P. CEPPI NAMED RTC ASSISTANT
GENERAL COUNSEL FOR NEW OUTSIDE COUNSEL MANAGEMENT SECTION

The RTC's Board of Directors has named
Jose P. Ceppi as Assistant General Counsel
to direct the RTC Legal Division's new Outside Counsel Management Section.
The section's duties will include preparing,
recommending, and implementing policies
for outside counsel and Legal Division staff
dealing with outside counsel, and ensuring
compliance with those policies. The section
will also oversee the Legal Division's
-9-

Minority- and Women-Outreach Program,
which includes coordinating the RTC's ongoing efforts to expand the number of minorityand women-owned law firms that are eligible
to provide legal services, as well as the referral
of work to these firms and to minority and
women attorneys in other law firms.
"We're very enthusiastic about the creation of
a section in the Legal Division devoted to
enhancing the RTC's use of outside counsel
and the minority- and women-outreach effort," said RTC General Counsel Gerald L.
Jacobs.
·
Mr. Ceppijoined the RTC in January 1990 as
Litigation Counsel. Prior to that appointment, he was a partner with the Los Angelesbased firm of McClintock, Weston. He had
been with the firm since August 1988. Mr.
Ceppi also served as a trial attorney for the
Federal Home Loan Bank Board. Mr. Ceppi
graduated from Towson State University in ·
1978, and from Georgetown University Law
School in 1981.

FURIBER INFORMATION
All RTC public documents, including RTC
press releases and policy statements, are
available from the RTC Reading Room at
202-416-6940. Written requests should be
mailed to the RTC Reading Room; 801 17th
Street, NW; Washington, DC 20434-0001.
To receive the RTC Review monthly, write
to: RTC Office of Corporate Communications, 10th Floor; RTC Review Mailing List;
80117th Street, NW; Washington, DC204340001.
All RTC news releases are also available
through FaxMedia, a facsimile dial-up service. To access FaxMedia, interested individuals can dial 301-670-0088 from their fax
machine's telephone handset. Following the
voice prompts, individuals should enter "77"
to select the RTC News Release Library
index, which will be printed from their fax
machine. To retrieve the desired news
releases, individuals should redial the FaxMedia number listed above and enter the
numbers of the news releases they want to
receive. Users have 24-hour access to RTC
news releases through FaxMedia, and are
responsible for all phone charges.

-10-

RTC Resolutions
Inception to November 30, 1991
(dollars in billions)
Number
Estimated

~umbe~
Deal
of
Type• Cases

Estimated

Percentage

Total Savings 0.,er
Savings/
of Assets
Assets Payout Cost Core Deposits • • Passect•• •

of
Total

Accounts

Deposits

(OOO's)

156
343
84

$30.8
142.7
7.5

$0.1
2.4
0.0

.670/o
2.36
0

12.60 0/o
25.59
0

$31.5
137.2
9.2

2,978
15,092
605

Total

583

$181.0

$2.5

1.98%

22.32%

s1n.9

18,674

IDT

• Deal Type:
IDT • Insured Deposit Transfer

PA - Purchase of Assets and Assumption of liabilities
PO • Insured Deposit Payout
• • Core deposits are estimated as deposits with balances below $80,000.
• • • Assets passed are net of putbacks.
Note: Asset and estimated cost data reflect post-closing revisions and may differ
from data previously released. Total Deposits and Number of Accounts are
as of the quarter before resolution.

Commonly Called ATC Telephone Numbers

National Sales Center

(202) 418-4200

Low Income Housing Program

Real Estate Information Center and Orders for Asset Inventory

(800) 431-0600

Reading Room - Public Information

(202) 416-6940

Asset Specific Inquiry Service

(800) 782-3006

Main Operator

(202) 416-6900

Bulk Sales Information

(800) 782-8806

ATC Western Regional Office

(800) 283-7823

Securities Salee (Capital Markets)

(202) 41&-7554

ATC Southwestern Regional Office

(800) 782-4674

Contracting Office

(800) 541-1782

ATC North Central Regional Office

(800) 365-3342

Inquiries Regarding S&Le for Sale

(800) 782-4033

ATC Eastern Regional Office

(800) 234-3342

Office of Corporate Communications - Media lnquirie1

(202) 41&-7566

Note: Region• are • lolloWII:
West - AZ., CA, CO, HI, NM, tN, UT
Southwest - TX
North Central - M, AR, IA, ID, IL. IN, KS, KY, LA, Ml, MN, MO, MS, MT, NO, NE, OH, OK. OR. SO, WA, WI, WV
East - AL, CT, DC, DE, FL, GA. MA, MO, NC, NH, NJ, NY, PA, PR. RI, SC, TN, VA, VT, WI

-11-

(202) 416-7348

ATC Resolutions
November 1991
(Dollars in Millions)

Aleetl Pall88d

Deal

lnlltitutlon Name /City/ State

N
I

Type*

RelOlutlon
Date

Total

Acqulrer Name /City/ State

,._.,

Elltimated

to Acquirer1

Percentage

RelOlutlon

Net of

of"8Nt1

Colt

Putbackl

Pall88d

First FS&LA of Fargo, FA, Fargo, ND

11/01/91

First NB of ND, Grand Fork1, ND

$38.1

$4.9

$32.5

85.09%

Firlt FS&LA of Crelton, FA, Creston, IA

11/01/91

First FSB of Creston, Creston, IA

eo.9

6.1

45.0

73.94%

Columbia FSA of Hamilton, Hamilton, OH

11/01/91

Home FB, a FSB, Hamilton, OH

37.4

2 .8

2.7

7.33%

Vermillion FSB, Abbeville, LA

11/01/91

First Acadlana NB, Opeloueat, LA

14.1

0.7

12.1

85.91%

First FS&LA of Pittsburg, FA, Pittsburg, KS

11/01/91

Farm & Home SB, Kanaaa City, MO

119.1

3.4

116.5

97.76%

American SB, FSB, Ada, OK

11/01/91

Home FS&LA of Ada, Ada, OK

n.o

52.0

10.4

13.51%

First FSB of Zion, Zion, IL

11/01/91

Advantage Bank, Kenosha, WI

33.1

10.0

20.8

62.89%

Atlantic Financial Savings, Bala Cynwyd, PA

11/15/91

Branch Sale to varioue Institution•

1,163.9

1,220.4

123.0

10.56%

United SB, FSB, Preston1burg, KY

11/22191

Pikeville NB&TC, Pikeville, KY

32.8

0 .0

32.8

100.00%

1,576.5

1,300.1

395.8

25.11%

$180,976.9

STT,248.e

$40,388.9

22.32%

Total
Grand Total-Inception through November 30, 11181

NA • Not Applicable

• Deal Type:
IDT • lnaured Depoelt Transfer

PA • Purchaee of Aseet1 and Anumption of Llabilitiea
PO " lnaured Depoeit Payout

Note: Assets and estimated cost data reflect poet-closing revisions and may differ from preliminary data previously releaaed.

Asset Reductions
By Type of Asset
(Dollars in Millions)

Inception
Through
11/30/91

November
1991

1991
To Date

Cash & Securities
Book Value Reduction
Discount from Book Value
Sales & Principal Collections

$102,138
2,401
99,737

$2,305
7
2,298

$43,734
941
42 ,794

Mortgages
Book Value Reduction
Discount from Book Value
Sales & Principal Collections

89,191
3,594
85,597

2,633
149
2,484

48 ,994
2,774
46,220

Other Loans
Book Value Reduction
Discount from Book Value
Sales & Principal Collections

19,414
1,044
18,370

303
56
248

8,033
553
7,480

Real Estate
Book Value Reduction
Discount from Book Value
Sales & Principal Collections

9,484
2,767
6,716

417
153
264

4,385
1,559
2,825

Other Assets
Book Value Reduction
Discount from Book Value
Sales & Principal Collections

8,788
831
7,957

511
71
440

5,242
606
4,636

Total Assets
Book Value Reduction
Discount from Book Value
Sales & Principal Collections

229,015
10,638
$218,377

6,170
436
$5,734

110,388
6,432
$103,955

Notes: Data for Inception through November 30, 1991 are net
of putbacks recorded to date.
Resolution sales are shown at book value.

Proceeds of asset sales at resolution are not
separable from amounts paid for deposits of resolved thrifts.
Sales and principal collections are gross of seller financing which
totalled $366 million from inception through November 30, 1991.

-13-

Beginning Assets and Asset Reductions
Inception Through November 1991
($ in billions)
583 Closed Institutions
Cash&

Other

Securities /3 Mortgages

Loans

Real

Subsid-

Other

Estate

iaries

Assets

Total

75.5

$135.7

$23.2

$21.4

$8.1

15.8

$279. 7

37.5

13.5

3.3

4.3

0.2

1.0

59.8

Payment & Maturities .........................

19.4

17.9

6.6

0.0

0.6

0.3

44.8

Other Changes (Net) /1 .......................

(14.1)

5.5

(3.2)

2.8

(0.6)

3.7

(5.9)

32.7

98.8

16.5

14.3

8.0

10.8

181 .0

Assets at Takeover.....•....................•.....
Reductions During ConservatorshiQ
Sales Proceeds..................................

Assets at Resolution .................•.•••••.•••••
Resolution & ReceivershiQ Reductions
Assets Passed (Net of Putbacks)........

16.4

20.3

3.2

0.1

0.4

0.1

40.4

Assets Retained (After Putbacks).......

16.2

78.6

13.3

14.2

7.6

10.7

140.6

Principal Collections..........................

9.9

26.4

4.3

2.0

1.4

3.2

47.1

Other Changes (Net) /2.......................

0.7

2.4

1.7

1.0

(0.3)

(0.4)

5.2

$5.6

$49.8

$7.3

$11 .3

$6.4

$7.9

$88.2

Receivership Assets as
of November 30, 1991 ....•...............••••.•.

91 Conservatorshi12 Institutions
Cash&
Securities
Assets at Takeover.....•...•.........•••••••..••..

Mortgages

Other

Real

Subsid-

Other

Loans

Estate

iaries

Assets

Total

$24.0

$31.0

$3.9

$6.1

$1.7

$2.9

$69.6

7.7

4.2

0.3

0.4

0.0

0.1

12.6

Reductions During ConservatorshiQ
Sales Proceeds.........................••.......
Payment & Maturities..................•......

8.9

3.5

0.7

0.0

0.5

0.2

13.8

Other Changes (Net) .........................

(5.2)

(1.1)

(0.1)

0.3

0.0

0.6

(5.5)

$3.0

$5.3

$1.1

$2.1

$48.7

Conservatorship Assets as
of November 30, 1991 ......•.................•••

$12.6

$24.5

-14-

•

Beginning Assets and Asset Reductions
Inception Through November 1991
($ in billions)
All 674 Institutions
Cash&
Securities /3 Mortgages
Assets at Takeover.....•.....•....................

$99.5

$166.7

Other

Real

Subsid-

Other

Loans

Estate

iaries

Assets

$27.0

$27.5

$9.8

Total

$18.7

$349.3

Reductions During ConservatorshiQ
Sales Proceeds ... ............ ....... ............

45.2

17.6

3.6

4.7

0.3

1.1

72.4

Payment & Maturities .........................

28.3

21.3

7.3

0.0

1.0

0.5

58.5

Other Changes (Net) /1 ...... .................

(19.3)

4.4

(3.3)

3.1

(0.6)

4.3

(11.3)

32.7

98.8

16.5

14.3

8.0

10.8

181.0

Assets at Resolution ..............................
Resolution & ReceivershiQ Reductions
Assets Passed (Net of Putbacks)........

16.4

20.3

3.2

0.1

0.4

0.1

40.4

Assets Retained (After Putbacks).......

16.2

78.6

13.3

14.2

7.6

10.7

140.6

Principal Collections ..........................

9.9

26.4

4.3

2.0

1.4

3.2

47.1

Other Changes (Net) /2.......................

0.7

2.4

1.7

1.0

(0.3)

(0.4)

5.2

$18.2

$74.3

$10.2

$16.6

$7.6

$10.0

$136.9

Conservatorship and
Receivership Assets as
of November 30, 1991 ...........................

Includes net losses on sales, charge-offs of goodwill and certain equity
investments and other assets, accumulation and investment of cash, and new
loans and asset purchases.

/2 Includes asset balance adjustments and principal losses.
/3 Excludes accumulation of approximately $11.2 billion of receivership cash and
investments available for the payment of expenses and dividends.

-15-

Full text of RTC Review : January 1992, Vol. III No. 1

FRASER