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BLACK SMOKE RISES IN AIR FROM ALLRED STREET BLAZE
Building Was Burned To Ground By Fire
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SUMMERVILLE FIREMAN SPRAYS BURNING DEBRIS AT GARAGE
Facility Was Destroyed By Flames Monday Afternoon
First Federal Conversion Set
A plan for converting the
First Federal Savings and
Loan Assn. in Summerville
from a mutual firm to a stock
comgany will be submitted to
the Federal Home Loan Bank
Board (FHLBB) in mid-July. A
decision on the proposal is ex
pected during September.
The reorganization plan
became necessary because the
association has a negative net
worth, or is technically insol
vent. However, the accounts of
all 8,500 depositers are fully
protected by the Federal Sav
ings and Land Insurance Corp.
(FSLIC), said Ronald G. Hollis,
president of First Federal.
INVESTORS
Hollis and employees of
First Federal plan to become
investors themselves in the
reorganized company, he said,
along with several other local
and out-of-town investors.
He has raised $1.5-million
in new funds to bring the
liabilities of $35-million even
with the $37-million in assets,
Hollis said, but various in
vestor and FHLBB conditions
must be worked out prior to
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WAL-MART SHOPPIN (,-‘;orzeverYWhere open July 4th
H
Master Card or Visa. Open even‘]g:wAY 27 NORTH ENTE R
nd open Sunday afternoon-ch
eck for local store'hours.
submission of the plan next
month.
Although he has until Aug.
5 to submit the bid, Hollis said
he expects to turn the
documents over to the FHLBB
by July 15.
BIDS
The Wall Street Journal
reported that the FHLBB is
seeking bids from some 700
potential investors to purchase
21 savings and loan institu
tions in the nation that are
technically insolvent. Those
bids are due on Aug. 5 and all
sales are expected to be closed
35 days thereafter. The Sum
mervifie S&L is one of those 21
institutions, Hollis said. He
isn't aware of any other in
vestors who might be in
terested in the Summerville
company.
“Institutions that are in a
low or negative net worth posi
tion continue to o%erate
because they typically have a
cash flow tfi]at allows that to
occur,”’ said Rebecca Valil, vice
president of the FHLBB of
Atlanta.
IN BUSINESS
“Mortgages continue to
pay off; tEey are able to meet
day-to-day operating re
quirements. The issue of
capital and net worth only
comes into play in a long-term
sense. In many cases, they are
working with us to find an ac
quirer or merger partner to
bring it back into a positive net
worth situation,”” she was
quoted as saying in The Atlan
ta Journal last week.
Hollis said First Federal is
turning a profit and plans to re
main 1n business in Summer
ville. It is making loans and ac
ce?tinf deposits, the banking
official said.
Sheshunoff Information
Services Inc., Austin, Texas,
reported that First Federal was
one of four Georgia S&Ls that
had a ratio of regulatory
capital to assets that were in
minus figures. The others are
located in Cartersville, Colum
bus and Warner Robions. First
Federal's ratio was listed at
minus 8.92.
DIRECTORS
Hollis is one of four
I'ire B
ire purns
Garage In
S ill
ummerviiie
A North Summerville
arage was destroyed by
fiames Monday afternoon, ac
cording to the Summerville
Fire Department.
The garage on Allred Street
was owned by L. C. Price, said
reports. The fire sent huge
clouds of black smoke boilinfi
through much of the Nort
Summerville area. Firefighters
were on duty from 5:23 to 6:27
{J.m. Cause of the fire wasn't
isted.
Extensive damage was
reported to a mobile home
behind Summerville Motel
Sunday, said reports. Owner of
the trailer wasn't listed.
Firemen extinguished a
woods and grass fire on
Wildlife Lake Road Sunday
afternoon.
Summerville firefighters
also foui/lllt a grass and woods
fire off Mahan Road on June
1 22, said reports.
Smoking brakes were listed
as the cause of a fire call Tues
day afternoon. The Tri-City
Concrete truck was parked on
the Jordan Gas Co. parking lot,
the report indicated.
Fil
14 File
Reports
Fourteen candidates had fil
ed campaign disclosure forms
with the office of Chattooga
County Probate Ju‘gfe Jon
Payne as of late Wednesday
afternoon. The five day ‘‘grace
period” ends today.
The deadline for filing the
reports was last Saturday but
candidates have another five
days past the deadline to file
' the documents.
~ Filing were Lann Cordle,
' Don Hayes, Al Palmour, Joe
' Cox, William Mitchell, Carlton
Vines, Tim Perry, Fondren
Wright, David Tidmore, Harry
Powell, Jim Parker, Gar
McConnell, Hugh Don Ha.fi
and O. G. Morefiead. ?
Complete financial and
campaign reports on each can
didate will be featured in next
week’s edition of The News.
members on First Federal’s
board. The others are longtime
director “Tip’’ McCollum, as
well as Summerville
businessman Milford Morgan
and attorney Albert Palmour,
both new directors. Hollis is
also currently serving as chief
executive officer and chairman
of the board, as well as presi
dent. All other previous girec
tors have resigned.
The S&L's problems began
several years ago, Hollis said in
a candid interview with The
News. Bad bond market in
vestments caused the firm to
lose $2.8-million and bad loans
cost the company to lose
another $1.5-million, he said.
Another $500,000 in loans is
also expected to be bad, Hollis
added.
When he became president
in June, 1986, he was not aware
of the problems but discovered
them within 48 hours and call
ed in the FHLBB and the
bank’s auditors. No criminal
conduct was involved, he em
phasized. The facility is now
operated under the stringent
regulations of the FHLBB,
Hollis added.
It took about three months
to determine the extent of the
problem, Hollis said.
DISCOVERY
After discovery of a pro
blem, it usually takes two or
three years to work out of the
dif%iculty, the S&L president
said.
SOLVED
All the institution's finan
cial problems should be solved
by mid- to late-September,
Hollis said. “‘Nobody’s goini to
lose a cent, not one thin nickel;
the¥‘ never have.”
he only situation that
could cause problems for the
S&L, Hollis said, is if local
residents lose their confidence
in the institution, the FHLBB
and the FSLIC.
Although reports about
financial problems at First
Federal have been circulating
since June, 1986, the facility
has retained the support of
Chattooga Countians, Hollis
indicated.
First Federal was organiz
ed in 1956 as a mutualg com
pany — that is, the depositors
owned the business. Hollis’
plan calls for converting the
S&L over to a company owned
by stockholders.
Jail Meal Bids
Bids are scheduled to be
opened at 10 a.m. Thursday,
July 7, on meals for the Chat
tooga County Jail.
The mexally bids are being
sought by Commissioner
Harry Powell. The service con
tract on the meals will be for
six months, according to an ad
placed in The News.
R&M Cafeteria, Highland
Street, Summerville, hofds the
contract for the jail meals.
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WATGHES --'0"3;;’?" i T
Bulova Seiko © Pul &Y e
aO/ oS/ AL STERLING .
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20% o{7 FASHION 2
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Hurry in to Fullers Now While Selections Are
Good . . . At These Prices You Can Buy for Yourself
Or for Gifts!
After-Inventory | &Q/ y
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Prices /(l \ o / : \
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Low! - ‘WS@S < 3 V /
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DISCONTINUED ‘
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The Summerville News, Thursday, June 30, 1988 . . ..
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