Archive for Wednesday, October 24, 1990


October 24, 1990


The Columbia Savings Assn. office at 2435 Iowa and three other Columbia Savings branches in other cities will close at the end of the business day Oct. 31 as part of cost-cutting plans by its parent company, Western Financial Corp., the company announced Tuesday.

The other Columbia Savings branches that will be closed are in Cottonwood Falls, Topeka and Overland Park.

Western Financial said that full-service banking will continue to be available at the 24 offices in Columbia Saving's statewide banking network.

COLUMBIA savings has two other Lawrence branches at 544 Columbia Dr., and 901 Vt.

Complete records on all accounts at the branches being closed will be consolidated and immediately available for transactions at other branches, the company said.

Although the 2435 Iowa branch office will be closed, the company said that the VIA automatic teller machine at the location will remain open 24 hours a day.

Tom Lewin and Joe Morris, the company's two spokesmen, were in a board of directors meeting in Western Financial's Overland Park office this morning and were unavailable for comment.

THE COMPANY sent a statement out Tuesday afternoon that said as part of its overall plan to reduce overhead at all levels of the organization, it would consolidate the banking services and customer deposits of the four branch locations.

"The consolidation move is consistent with Columbia Savings' plan to follow a path of additional shrinkage to meet new federally mandated capital requirements," the statement said.

Since Columbia Savings did not meet the new federally mandated capital requirements for thrift institutions, it was required to submit a capital plan to the Office of Thrift Supervision, which was approved March 19.

THE COMPANY took additional charge-offs and strengthened its general reserve for loan and real estate losses in the second quarter of 1990. Those actions, which totaled $8.9 million, caused Columbia Savings to show a net loss of $7.43 million, or $3.48 per share, for the quarter that ended June 30.

As a result of the charge-offs and increases in the general reserve for loan and real estate losses during the second quarter, the company will be required to file another new capital plan.

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