RICHMOND, SEPT. 28 -- Crestar Bank of Richmond has bought Seasons Federal Savings Bank and Security Federal Savings Bank in a deal approved by the Resolution Trust Corp. (RTC) board of directors and announced tonight
Services to the failed thrifts' former customers will continue without interruption, according to the RTC.
Seasons Federal's four banking offices and Security Federal's nine banking offices closed today and will reopen Monday. They will operate according to Crestar's normal schedule.
The RTC is a federally chartered corporation established in 1989 to contain, manage and receive failed savings associations and recover funds through the management and sale of the institutions' assets. The Security Federal transaction is expected to cost the RTC -- and thus, taxpayers -- $41.1 million. The Seasons Federal is expected to cost $47.9 million.
Crestar will assume all Seasons Federal deposits totaling about $125.1 million. Crestar also will initially purchase $124.9 million of the failed institution's assets.
Crestar will assume Security Federal assets totaling about $179 million and will initially purchase $186.1 million of the failed thrift's assets.
Seasons Federal of Richmond had total assets of $150 million and total liabilities of $181.1 million. Security Federal had total assets of $218.5 million and total liabilities of $248.4 million.
During a 120-day transition, virtually all 115 employees of the two former institutions have been provided temporary jobs with Crestar.