Reflecting the increasingly different types of services it now offers, National Permanent Federal Savings & Loan has decided to change its name.
Beginning June 1, the savings and loan institution will be called the National Permanent Bank FSB.
The change will also make National Permanent a federal savings bank--the first in the District. Under law, a federal savings bank can offer more unsecured commercial loans than a savings and loan institution. Additionally, a federal savings bank does not have to target as much of its loans for residential mortgages as S&Ls to qualify for the full bad-debt deduction, which equals 40 percent of taxable income.
But more than anything else, bank officials said the name change will make its customers and potential customers aware of the fact that National Permanent can offer a wide variety of financial services that it only recently has been allowed to offer under federal rules.
"The key is in the word bank," said Clayton Keel, an executive vice president of National Permanent. "The public seems to know what a bank is more than an S&L. We're becoming more like a new bank everyday with all the new powers we have, so 'bank' more accurately describes more of what we will be doing in the future."