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Sterling Bank Buys First Newport

July 24, 1993

NEWPORT BEACH — First Newport Federal Savings Bank, the successor to a tiny bank that federal regulators seized in June, 1992, has been sold to Sterling Bank & Trust of Southfield, Mich., Resolution Trust Corp. officials said Friday.

Sterling Bank will reopen First Newport Federal's one office in Newport Beach on Monday, the RTC said. Depositors with insured accounts will be able to conduct regular banking transactions at the reopened office.

Sterling Bank purchased about $1 million of the closed bank's assets and assumed $13.3 million in insured deposits. The RTC advanced about $12 million to Sterling Bank and will keep about $13 million of the failed bank's assets.

Sterling Bank paid a "franchise premium" of $215,000 for the closed bank. The Michigan-based bank's bid was "determined to be the least costly" of four proposals submitted, RTC officials said.

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