TWO UTAH FINANCIAL INSTITUTIONS FAIL
Two Utah financial institutions, the
Bank of Iron County and Summit Savings and Loan Association,
have failed, official spokesmen said.
    The board of directors of the Federal Deposit Insurance
Corporation (FDIC) has approved the assumption of the deposit
liabilities of Bank of Iron County, Parowan, Utah, by Dixie
State Bank, St George, Utah, an FDIC spokesman said.
    The bank, which had total assets of 20.1 mln dlrs, was the
first bank in Utah to fail this year and the 59th nationwide.
    Its three offices will reopen Monday as branches of Dixie
State Bank and its depositors will automatically become
depositors of the assuming bank.
    Dixie State Bank will assume about 19.9 mln dlrs in 6,300
deposit accounts and will purchase all of the failed bank's
assets at a discount of 3.575 mln dlrs.
    The Federal Home Loan Bank Board closed Summit Savings and
Loan Association, Park City, Utah, and directed the Federal
Savings and Loan Insurance Corporation (FSLIC) to transfer an
estimated 116.9 mln dlrs in insured deposits to United Savings
and Loan Association, Ogden, Utah, an FSLIC spokesman said.
    Summit, a 120.8 mln dlr institution, was insolvent, the
spokesman said. The bank board appointed the FSLIC as
conservator for the association on April 14, 1986.
    Summit has since operated as part of the bank board's
Management Consignment Program. United Savings has 205 mln dlrs
in assets and nine offices in Utah, and one in Idaho.
 REUTER
