Withdrawal Rate Slows at American S
American Savings & Loan Assn. suffered a net deposit outflow of $25 million from its 122 branches Tuesday, a rate slower than the $60 million in net withdrawals that officials of the thrift’s parent company said occurred Monday.
The outflow comes in the wake of Friday’s announcement by the S&L;’s parent company, Irvine-based Financial Corp. of America, that it was facing a loss of between $500 million and $700 million in 1984, mainly because of problem real estate loans.
However, FCA officials called the withdrawals of the past two days insignificant compared to the events of last summer, when lack of confidence in FCA’s management sparked depositors to withdraw $6.84 billion from July through September.
Meanwhile, FCA announced that its directors had decided to omit the dividend on the company’s common stock. The announcement said the board would consider restoring the dividend for the next quarter. FCA had been paying 17 cents per share until the last quarter, when it cut the dividend to 5 cents.
Directors did declare a quarterly cash dividend of $1.5875 per share on the floating rate preferred stock series A, payable April 30 to shareholders of record March 30, and a quarterly cash dividend of 15 cents per share on the 6% serial preferred stock, payable April 30 to shareholders of record March 30.
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