Closed Tuesday, February 14, 1989 · Houston, Harris County, Texas
University Savings Association
University Savings Association's estimated cost to the Resolution Trust Corporation makes it the tenth-costliest failure on FDIC record since 1934. By total assets it is the 45th-largest of the 3,375 bank failures since 1934 for which the FDIC records a size, counted in dollars of the day. Equity capital was below zero at its last report.
On the books, 1984 to 1988
Total assets peaked at $4.6 billion in the third quarter of 1988. Equity capital had covered 3.9% of assets in the first quarter of 1984. By then 21% of its loans were 90 days or more past due or no longer accruing interest. It reported a net loss in three of its final five reporting years. The deepest annual loss, $335 million, was booked in 1988.
Size against the other 1989 failures
Total assets of each 1989 failure, log scale; University Savings Association in red.
By assets it ranked sixth of the 530 failures in 1989. Within Texas it ranks seventh by size of the 738 failures recorded since 1934. In the size ranking of that year, just above it was Lincoln Savings and Loan Association of Irvine, California ($4.9 billion, loss 65% of assets); just below, Bright Banc Savings Association of Dallas, Texas ($4.4 billion, loss 30% of assets). Every 1989 failure in the explorer.
Failures in Texas
In 1989 regulators closed 223 banks in Texas; this was the 15th. The previous failure there was Bright Banc Savings Association of Dallas, on February 10, 1989. The next was First Continental National Bank of Houston, on February 15, 1989. Harris County has 99 failed banks on FDIC record since 1934. Closest in time: Citizens Bank (1989), Citizens Bank Houston (1989), First Continental National Bank (1989), Texas National Bank (1989), Security Bank (1989).