Free Response to Order to Show Cause - District Court of Federal Claims - federal

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 1 of 61

'IhL subdiary a u ~ l l swva m a holding mmpmy for 'lbc Inu at Clark, Lc m e h ) r a t i o n origbUy owned y ) a, a

-snd~byabommrdCSBabohad~l(n56d~~odcm7behmconncdioouilbam~maRam~
Inn in Clark, Ncw'Jc~c~. Upon lhc bormw's dcbuh d u tbe mortgage loaq CSB initiated fordmure a& againsi Ibe Ramada Inn and k g m cxcrdsing i(s right ar d c lo wnlrol tbc opcratiom and aRaLs of The Inn IBc Inn p e aPscqvp* a b d p l y hdd manwmcol mmpy, S i * Hdrl C o r p o m k lo qemlc the Ram& IM Which b awaiting k.riE's audion a6 r rcsllh of foredosure procccdiDga initiated by CSB.

mmpmy Ior Brurel BoQ Gardew Inc, a real cslate dcvclopmcnt ( s m p a ~ y which and markctine drrplc familv anachcd bomu in a rwidcntial subbrvirim in Baa Ratcm Fbida A D C C I t ISQ. tbuc are t r model units,'dcku rnm~leted h k units rudy for sale, thir~cco unik d u mar(ru&oa and air i t s for which drb has been poured A total dh.units ha* bcc. wld sina the date dbtencntion and a total of 615 units i n this m3 unit development have been s d d dacc vorL +any kgan in 1983.
7% d s i t h y am'cdy ads ar a hn
"

k -

l l k ~ r u t a i d L y k a d k J y ~ in d conrtrucb'm oltoaaboues and arndomiumr in a major p l d unit dcvcbpmcnt e tbc (PUDI knmm as Faunoor and located o u a d P r b d o s New J e w . At present, (be subsidiary b in thc procear o f &&fing(he d ~ ~ ~ J 0 p m u .lU r c . sUMRi\imOitbiD th PUD,ha&g&&sucas.hDy d h sompked four &diririan< chcPUD. S W amosa tbc k e c subdikions currally m d u dcvcbpmen&b e s u b s i d i i c u d v omti 10 model m&2 0 [ ~ 1 ~ 1 c c o d12b , vA& arc u d u mucrubio; 20 uniU for &cb lbc foundatio& haw b. i 7 ~& ; poured and 76 pLnrrdunils m a n o a a k hac bw doar AIpaed,there are appradmaldy UBOfaudies libinewilbiotbc PUD and the subsidury hr cooIra& or u holding deposits nu 42 of Lbc 145 units cnumuatd above. In additio. to tbe lhrec s u W o l l s currently mdcr a& developmcnl, Lbc subsidiary owns an additional three w i tbc~ PUD, c,,x o i a bas - i ~ d Lde n.r.uarv apd for the WP\UUCLI.OD 248 of u9~d~barrccrjKdthc~a~for312towbouvrandlhirddwhiehhacb&oaaxd .* f& fw d o 5 e c spa.

...

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--

'rk && hsr a curred bonk d u e da~oroldmatch, million and a aurcnt appraised d u e dN3minion l l ~ ~ $65
&ircllrrrrmy-bucd~am~to~~~&onal~ankin~bem~d&~ AWMcmaaodum bar m U y been submiUd reenomending tba tbc svbddiary utilize its udsling GISIIbaIauccs to prepay tbe mortgage in an ~ ~ o u i up a 52 million of t

n Nbsidayba 6mitcd p u t n u b B & C Land Pminuship, LP.and a Emited p a m uin 10 Watuvicol Associs(e5 LP, h
h&m a m idea& in each of the limited oar(rruabios 10 Waterview Arrodalrr LP. I M lhe b u i l h at 10Watuview O ~ CFSB bow rnajori&di&o&zatiom B & C h d ~ a r t n k f U. the L d on which 10 i MVUS -d b WatervicPrwar cmsbwed d u a 97y& &md & (TSB ic c u r r c ~ ld d + ~ c p u d i a I i u g and/or r a y d i a t i n g i e l~ ba.c. at 10 Watcnicw: aov reoudiation or s i d ~ c a o rene~otiatioo cilha of its t u lca~cs 10 Waterview m U t of w at .~ eliminate any cds(ing or h;hlrecquity which ;be subsidiary& b a n in the land or Lbc building.

In addition to these lhrec real wtate investment subsidiaries, there are currenlly 27 subridiariw holding single rurl Ah acre originally mongagcd to CSB and subsquenlly acquLcd Lbrough f o d a r u r c or by dad-in-liur ol c &ate forcclavur ' ~ U suhddiariw at lbcdatc of h t c ~ e n l i o nhvo of which have sold their single real estate I were 29 sucb I C , assets and d c h are now categorized ac formerly a& subsidiaries.
lk Z'nmainira real cslatc aweu have a told wmbined book value of amoximalcb $1252million Nmc d Lcrc single real estate nsd~ubsidiarics orwn a red wtatc arwl with a book value in wecv of Grnillion and Lbese nine assets ha\a m m b M bod: value dS8W. Tkc f o U o h g tables p r d d c s p d c Mormarion regarding the nioe largest assets and
~

summary idormation regarding all 27 of the assets.
18

IAL-S -T F~NP@&I~~!# @gTTT c,.

CONFIDENTIAL MATERIAL - SUBJECT TO PROTECTIVE ORDER

CAM090 OOi

Reply App. 00054

Case 1:93-cv-00531-LAS
(in m i I 5 0 ~ )

Document 205-3

Filed 10/19/2006

Page 2 of 61

The foUowiDa arc major subsidiary RE0 aycL\:
Asrc(

'w

of

Asel

SuQ'diary Name

Name

Aucl

Location Florida Florida NcwJwscy Florida Florida

Artel Value
f8.9 6.4 63 5.8 58 5.7

W d Ambuwood e Spcarum BILY'nw Park V a d Land cSB Northcrn R u l Eslate, Inc La MLrada Oficc/Rclail Buildings Talarieo Real -1% lnc Tdariw Warehouse Industrial Warcbourc CSB Pcmbroke Development, Ice The Landiags Undevdoped PUD Trads CSB Land Managuocob he Paramount P k u Ofice Building CSB New Jerscy Dcvclopmcnt Okl Mill IM Hotcl/Rutauml GB b t a m Livjqg Horny InrHuoler's Glen JsKcrson Vacant Land CSB Soulbun Propcrtiy he Bel-Air Aputmatc Aparimenl Complu CSB Flon'd. Buildios, k Radiwn Plau H a d Hotd

-

New Jurcy
New Jersey Florida Florida

5.0
11.6

266

Toul The following arc the numbu dsubsidiqRE0 a bylype and by slate:

t8U

New J e n y Florida Arizona
OdIicc parks, o & a Ruidential Dedopmentc Commercial, L d d Hotel, Motel Restaurant h a d , M i Uac, Other AgAdhrral
5
3 1 1

Ohio
1

Total
9
6 5
3

3
3 4 1
1

I

2
1

1

3 1
1

Told

I 3

11

2

27

--

The following are Lbe book d u e of aubsidiay RE0 avels by typc and by state: Nm Jersey Florida Arizona
- -

Ohio
522

Total
534.8 298
176 37.4

Offia Parks, O h Rwdcntial Dcvclopmmls Comrnm'cal, I n d ~ ~ l r i d H o t 4 M o t 4 Rutaur-C Land. M i Use. Olber AgicuXural
To(al
-

$Its
10.4

SZLl
19.4 13 1 268
54.9 .1

63
5.7

53
.1

54 .
.1
$22

5393

S18.6

$. 50

SlZS.1

.

1

Sevcn ofthe 27 real &ale avsls are currently in the proem of being t r m l e r r d to Midland in conjundion wilb s ~&~aodhrm~arsctc~~cxpcdcdtobcbadcmdboccormorcprmaneaSAMDA foDlradors on or before M r h 4,1993. ac

CONFIDENTRL MATERIAL - SUBJECT TO PROTECTIVE ORDER

CAM090 00;

Reply App. 00055

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 3 of 61

-plclcd md ha &xm~ m-mding i s i w on many d d c r e subsidiq coirporati~ which &ua b revlkd prior to their W i p Ck&q hlC d@we CBON Will i d a l l y f c on those subsidiaries mtb k o 0ulslandin.gissucs l o d ou nw io CW&~t apcdite the dlralucion straty(y of these suhidiaries. o

vleNhdduy capan6or.s c u r r c ~ t l yn d c p c e n ddiadutioq 18 corporations wbieb were cnrblirbed to i U Ch hnlR . d c m r d LhrO(LPh krtdosunor bv deed m licu dfucdorum aod Prhicb %re omr a c t h u b 15 inactive real -Y i C ~ u b a i d k k i c h wve l o m ~ ? y d a& &lo& u bldinp.red m t c a m md five hauive subsidiary &rporationc . . &bold& or non-rcal'es~;~~ op&g cornp& Bridge Aau( M n* al r k plmntIy in o & d m a CrrcManorandum mommmdiqgb c ~ c k c d u t i m dthc 18subbidary mrpmtions which nev& mmmcnad o a m t h ~ lncliminan due diliacncc of the 20 formcrly a& A subsidiuy corporations har been
~

..- -

-

.

formcrfv

A *tion

dd b + litigabbDi mm n *

reporf dated Dcamber 31,1957. h nttachcd i W i b i l X . Litiption Llsfin#. TEs report is a summary n CSB or its subsidiark Excluded from (his reporl arc forecloauc related actions and

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m W m 7 % related b a d w n s e h aDororimatclv S6 ~ --. T a d a n i d mndl B s d m , 'Ibc mbc b c b a r a r m m ~ ~ ~ h ' & h by mrju eatcgory. R d u t o W M VIk. - O&&on and WibU l - Enptoyee G v n p u u ~ ~ o n furthu information. X
hu-thc mnhwcr

AI

lgpZ CSB and its suhridiatics had 1.1% uoploycudkb induded approximately I Z par(-(imeand 1,0p U
waB
for
D D N D ~ I D ~ ~ & ~

C3th

Commudd Workout Opsralio~ Premium Fmance MorlgagcSdh M~e.proaudioll M e w Aduhklratian R d B r h M d Suppat 1 n l m a t i a . syskau Divirion

Im@

~ k d l c rDi*~ '
Corporate Srrvim
~ o n s r u o w ~

Human Rcvwm b t a o d Audit
AUO(bcr

On DDmDbaB, l 9 a war m l m a d d l appdmaIcIy9l cmplop-4 primady in Lbe morQa@prcddon mca,pined a 92 d%m dKmpcri$Crcdit lndwks, Ioc & N e w Bra& W m ' a d u an arrangement appmvcd by the RTC The unploycc Starting date. will be staggered ovcr tbe fist quarlcr of 1993. dowing CFSB to complete l b c promsing ofmcuY.~c appliatiops
-~SIM

L InlormaUn eI n f e ~CJILS-~S

S~s(cms and Computer Rwoums

~~Di%m o g Opuatiom;mdTdmommunicalionr The organization is located at Lhe Waterview a n i z a h in d t s dfour functional unils Managemcat/Ad&~r~tion; Data Rmssiog
(TSB

opatiam Cda i Pi n ,a m NmJaq.All Inlormabbn S$s~nns scrriocs arc mlrally managed aud supported with ihc uception oftbe matgage servicing system which is scruiced by Computer Povnr I c . Jacltsonvillc, Florida. n.

CONFlDENTlAl MATERIAL - SUBJECT TO PROTECTIVE ORDER

CAM090 007

Reply App. 00056

Case 1:93-cv-00531-LAS
P @ I ~ ~ u ~ M Ru

Document 205-3

Filed 10/19/2006

Page 4 of 61

Al p y d ad hmmrc~amc d & r n d t w a r s ~

i n l dDtdr we suppled m a d e w d d p, r DM Sytcm 39 man from Sdhvan Pha Comprchcncivc reporting r e d are s d a d by a separate x p l miter

trom Marrin. ROU Cdc

'Ibc IdamstioD Syr(emaDiviaioa support8 the urc of an h-house computcr rrrourccs with the uraption of Branch Automation Tbe E d ' s h-bwsc wmputcr rcsovrecs arc comprised of s h primary o p u a h g environmenu.

CentrJizcd CorcSyatcmr DcpPrlmcDt S U p W Syst~mr hem RocerciogSSstcrm B n n d Automath ~ ~ ~ I c r m LoaJ ~ r cNwL &terns .

JdvidlulFCSyrlu~u
rht!nliurd~W~~~

IBM Luge Sale Hait IBM Medium Scale Host NCR Chcd:Equipment NCR Branch Equipment AST Ccmpag SC& IBM AST Cuapaq PCs

~ j~ ~ b / a ~ I B M I ) B l - K 6 1 H I P O ( P U ~ U h s b , m e d d l 4 6 M ITbcopratisOcnvhormcabamggurod PS uilh75&dyla dIBMENl&aoraec, 8 a k d D M 3 W a b i d g c tape Hilb aulolo~dcn IDRC, tpoaddrm of and I B M W P r a l IapGooclBM38BJhigb qxod larvpinIu a we IBM 4Wl&h s p c d Mpd pint=. Mierdcbe and a d

m

'Ilx B a s sdc bbourc Data Ocnru IDO k btdhPm'um~. m J N

c

~

~

~ rn/~~,iisa~~,noabunting&eo~ c ~ t ~ ~ ~ ~ k h ~

m . 'Ibc DC Prnida h r c - s d e wocadoP for

-

i

s S

-.~cpcbPdbi-h-*&edKodaLRaxarwmiemacbin'lbcDC ~ & & m ~ ~ ~ ) r c m o t c 50 locations in Ncw Juacy, Washindon. D.C and Florida Front-end dcvibcs-g

~

A ful dimder rxmtqambad is M eflL4 wi(h C o m h M u Rcco%uySenicu,Ned Bergs4 NmJsrscy which boh the IBM H a l Syucm 38 .nd pcripbenl d e k

Dmartmmlal appbcatioo pmadngis p r d c d for via UI IBM S3S 52(12-B01. C ' operating en+ent. F F m e N n is u &w;lbi6+b& ~ I B M 5disk storage, one,DM3430 &pc address . I 6 3 &nvo-IBM 5262 line print& p c ~cnartmeo(dRareorirbcslcdhcbcDCaods~~~&atchPrcmotcdcvicaintaoW~i.NewJurevand --=~ ~bn'da.~etworiieg rcmotc dcviccs arc d G c n i b c d W u betail in (he communications acdion. and b

b~npp.tb~fwthc~R+uisN(R717Dcbeckpro&quipmwL Tlx.61~aSm o t kn aa d t h c DCbU 6 boned scurualeh, in the Psrai~~aov. Juacv locatbn Item oroa&m which iodudcs indearha New k d d and bck bm arc pr& &four banlu irk& 717D cbcel equipment e o & o f k q four.podct modules. CmsokWh aod ( r a m d o n Io host n povidcd via ~JI NCR Tt70 Tower. The cbcck proocauhgfwdon o p l a on a wo-shift baa;s h daw s wctk and a sin& sbii on Saturday. Dctailcd badware and ovcratinn svstcm software %,mation i pr&d;d in Exhibit Y. 1n&nn111im s Syslcmr. check processing for the ~ ; d - ~ l l & t i ; ~ c u t h c & and Regions arc provided fm via outside service contracts with S i p & and Sun Bank rcrpedively.

-

ONFl N I -StjR@T $0 G -A-0104023 P%@E&E

-"

CONFIDENTIAL MATERIAL - SUBJECT TO PROTECTIVE ORDER

C M 9 O 00;

Reply App. 00057

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 5 of 61

~ lretail h d x a bsvc i l d tk NCR F a n a Towu Syatcm. This s s u kcompriscd of aTowcr branch pmccyor uadl ytn - . e m TMX opaahg ryrtcm sad oomcdr to all t d u and &omu s c h PCwrlrsblimrvha locd branch the k . ibcTomrb&ibc~etw~f~~id~bbnbchvernLbc~.odtbemain[nmci.P.ni~oanvvir
- --

~

~

~

o

m

u

d

+

~

F

~

m

d

~

&

a

~

~

~

nnnlication h F i c i a l Plus from Svstcms Conemf6 which orovidu 4mnlrol ckctronic i o u r n k and on-line 1 -rr---and b p h y prom+. B& termin& emulath270 CRT p d g for dircd ~ G S S ibcInfoF'oint to mainfrunc whware applicatiwa

Slandardr alablhbuli 1957 lor Miamysluns ha* bem mnrhLly updakd to rclkd the rapid changu in hardware, n acd m h l &o+smr k dcpar(md pr& bdp d d supporf hardware and achware evaluations, acpuisiriont, iPrtrlla(ion, a d firs( lcvcl hardware m a i n t c m a . c

'&xe %ion

PIC

Ihrs o p a l h d W

s in @SB. ?bm additional LAN's arc being installed h rupporl d t h c CimIroUa's

&on com&ly

acd ihc P ~ r ~ D c p u L m c nP suws d bc upgraded to486 dsu processon ulilhbg Novcll Nuwarc J L c l 3 and taka riDg topdcgy. Applicatiom hupportcd on all . U art Lotus,WordPufcd a d dB= I . Ha V
will bc Cbrougb N d s SAA Gstcvmy.

Curr&l h b m t o v mnsh ofsppradmstcly 225 individual PC' and 100 &era

kj&

oldu 286 icchoolog* is kiqgradually r e p l e d by486 technology. Printus mpds( d
R r loRb'bil K Infmm'on Syrians. cu
.

-

am

h of d d rn&x

and HP

.

(FSB's

~l1-h

voLc and dah oomm-. .
mmm--are

nckwds arc anbaCymanagcd ty(hcTJuvnm&tnm uh bcatcd m W a l d w . bpndlul by Lbc Telccommunicaliom unil is rcrramblc la .O Dhaws ol

~s~cmpbysam)ruddacnicoindudiog~PXcircui~O~ATs,Ba)Savicq~ d t ~ i c ~ d c d dDID. S ~ A T & T , Spid, and t BOCE By Plbaliag t n B c t d three major bqg dktmnz sxhvark vcndon, CFSB prottds Ma, k o iucll6nm cln$ewQ e k oulaga mdprrmdcs an cmironmcnl olorm$im pmargtbc carrim ~~~d Term plan contraas arc atablishul d c n c w pmsilc to rcducc'pcr minuk' all a d s ,

mmaidlimchcAT.4TSyim 75a5 is P a X h d a d 'Ibe M&mq P & m , a a l and Dclray &acb O U c wu & arc each &bysSydun 75 PEX Slation quipmcnl (tclcphonc) standark arc b a d U p o D w u job fuodion All conlrol &cd i m b m t u d m a m e mwonmcnl, supported by WS/Banuy Backup and F r e suppression mem( where

IYS shied tk VMX Opcom Dial $stun as tbcAuto Anmdant/Vo.k Mail standard fatbc Compny. E PBX aite & i n d u b ooe VMX wtcm p dn l h a c suviocr AU cmployecs, with thc exception ofcu*omcr svn'ac age=& are &ig to US Voice Mi ac a backup to traditional m e l b d s of mevagc taking, al

CONFIDENTIAL MATERIAL - SUBJECT TO PROTECTIVEORDER

Reply App. 00058

CAM090 007

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 6 of 61

Ngb~plrtomrr~BD~~mbo(hWls'ppMypndClw*alu~rcmooirorcdbyAT&T3B2CallMaosgcment C l group supuvLors have tumindr mlh&ch lo monitor aaivily and agcnl puformana in redl time. . Group &orinma is monitored and reported to senior management.

(w

~ ~ J ~ b U I P I c d 3 a r b m e d ~ d i o g u p a r d c v i a r & c b l\aiyedpairisuscdtom~cd(Jcphony DM3270 WminalS a LAN'& Mar( cabk inrcllkcmsand urn armKdc arc performed by in-how le!cammutlicalion d
Ledadd.nr

m N E C kcys)shm.~ c toprouide voice wnicc in all retail branch and moRgagc productio.ofkc% 7lx r.jz4ems d ue P owned by CFSB, and do nO( provide any enhmccd sm such sc w a mail m aulo sttendmL c m i

h b Par6ppnny d b mtuand mureds to a!l I I e a & branch and morlgagepodudion b&cm a M t c m e rrchitcdure m m e d bv n and 56KB dipaal &ails mnncrtd d h N m r k m u l t b h ~ bb& ac pd& d m d m q and%able t reroute past IaJcdhdlities. o Equi.llctlt T e d d + As DIBU~. u+ m k l y c x r d 593% ihckhne oodca arckded in M d o q Parsippauy, CJmwatu (3uvwatcr Ddmy
nBm ihc -kir --

CFSB'r dau nenvorL c&btcs

BuQ.
ri&runnLgsr 9 m emsri w m t c &t cbc nenrcsf backbone d c Codex Corporation modcm?i and data o units wrnplclc (hc com~cdion.

I

~~~l'~&d~~~Vrmiasland~rintdcviecgandbm~arcdby~kmanaguo~syrtmh

t

NET and Codcr TL nelwcukis h d to ih Comdicco diusicr r u m w y d c , dodng f a full operation in (he event a k
db.s(cr axura i Lhc Parsippimy data antu. Refer toErhibil V. JnjonnoD'm S ~ t u n s . n

-

r3SB i g a u d y o r p n i z d bybinerr Gnu. Suppr( &virions are funcliondly o r g d d . The loll+ s

i a brief s

wpcion

d the funfcional support division&

I I i s dh%w i m k f a * building mainleuan%rcmrd management, microfiche department 4 mailroom st.8. Ccrporat~ e m w 1Lomanagw ertain quipment kaKa and fbdlitiw management functiopr S

'Ibic dX&n ir v b k for the h c i a i re& sylw and ibepcpmlion d 6nmaal repow l%c CanfrolIu's &&ion handles g m d , dkkional and wrporate accounting lrcasuy accounting and operations, payroll, m d hancial m d budgelink

~dvcrtiriDg public relations and other marketing support services are handled by this division.

CONFIDENTIAL MATERIAL - SUBJECT TO PROTECTIVE ORDER

CAM090 00;

Reply App. 00059

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 7 of 61

Tbir &&ion p-dcs
aaions d - i

Tk Lcgd dkkh

tillc and o h m o w c lending legal support to the residential lending and servicing &virions. Ibc ma~gcmcnl allorncy r&tionrbips and L c coordination of tbc Civil and &u legal of b iu L c Liligation scdion of this rcpoh b

'fhic divhion urruns wmpliaoa wilh the Baut's pcrsonncl paticia; &k

in L c hiring. puformancc evaluation and b cumbation of stfiead manage6 L c Bank's uaployce bwGt program& b

%Wa i rcqms'ble for Lbe managemcat d d eomputu - a o s a T l k iocludw the fundons h i the in lalorm&~IbCrioDdlbhisWri. I S D ~ ~ ~ ~ ~ ~ k ~ ~ d L c I B M m a ' m h a m c m d ~ m $ i

' h t d Audil D W n r&cm ibc advitics of Lbc Bad for aomphna wl Bank policies and proccduru and k ib Jinandalrudils of lbc..Bank'srccords to cnswc Lbcir accuracy and mmplctcnerr.

wrludu Lbe Treasury and Loan S d u fundous. Treasurer's maoagcd Ihe Bank's hwtmcnt and aal Iurnbo (D'a The m d m d---d e o r t k s m d d o and hwbdwalc h u w k *AjcbindudcFHLB d & i i akopuf-cm b q u k y d r n b rnanagcmcnt -&for ibc ~ a r k ~apital Tbc ~ &gmup negotiates d e s of a d c n t i r l banrand olbw h c i a l inslrumcnb and w u t w inlwcs(-rate r s management aatcgies lor Lbc Bank. ik
W &ion

-

CONFIDENTIAL MATERIAL - SUBJECT TO PROTECTIVE ORDER

CAM090 007

Reply App. 00060

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 8 of 61

~~~19~CSB~pboDdinRecjK~tyc6c~mdammfa3ualmuhraldoq68w~e ~ ~ F ~ .v a- c-b m d a c e d i a l o ~ o n b i r , a oRrCwaroamedamuwu. 'Ihiracrion was initistedbegusc cbc OTS dthc -- . - r &~crmiDcdthat CSB vms opcralieg bkmunsafe m d lurround condilion in that it bed insuficienl capital, with no reasonable p r o s p a o replenlrbmcnt witbout fcdual rrrulanoc. f
-

.

-as bn

CSB's condition was primarily due to heavy k e s on poorly uodcnvrittcn commercial real ulatc and residential under f a m e maDagcmenL Manyd(hcbanc wuc poorly documcntcd m d lackcd sdcquatc

As of September 30, 1992, aaccts of $23.9 miJli04 or I1 p c r d of total auclq were J s W as substandprd. as doubtlid or bsa C B rcporled ocl lasvs d SUlS million in 1990and SlM) mlin in 19% S ilo

CSB h d a signi6caot m o u n t of supuvkory goodwill retarded in aquisitions o s e w a l failiq or failed ihrif( f
in l % Z d l9ffl Under (hc OTS interpctation dFRRE.4such go& VAS not hdudabk in regulatory -'a apccmmt with thc f e d 4 regulalors a1 thc time d tbc acqwtioca oft b . d i n g thrifts allowed CSB to use cbc lomdo/iD acquirrd v capital for resuktw P CSB's &orycaeital kvcL wcrc skdicantly dammed
id*

lo'&& ru&good;g b mm b y o ra g d i capital The OTS ht&&n d F~RREA clLnioaled (be~eoelit of supenismy g w d u i 4 witb lhrin rcgulaton not booorhq wliv eommilmcnfs.
~ ~ ~ d ~ i r o d u ~ o p o a ( i n g m d s d d r r p o s i n g d c n um c d ~ n e a f r s h ~ i S9.l millioa fix tc Gs &e monlbr 01 1992. Bul p r d m were kuIIidcot lo -me k rI a dfl~cant l e d of n o o p u f d w od-pufmniq roc& T b q m&ybaccd cm ~ o r wnbgs uas higbly improbable. Current J c m m p m d ' r JTau auc alsoimpaired by s d c p r d real a w c markeL The hitution had ban operating under

-

fdowcd intcnrivc cffortr by OTS d(SB's holding company to rccapi(alize tbe i d r u t i m n c April 1992opiratha o f q c s r i o o a l Wg for (hriR rcsolutionc c8cQkJy rcrnovcd CSB t o m ARP,undu which CSB war n i c6giblc bralc wilb minimal ~ whancid t asis(aocc. S u b s ~ nallcrnplr to sell Ihe tluifi wilhour gowmmenl l IiDlDciJ d d w e ~u~

m~ r&w&dp

Si~cc dale d ~ l o r s bCFSB has rcslrided ffirtsiD produaa and sipiliutolly rcduoul inter& raler. on the i ~

dben.AIa ma& the Bank bac expukaccd m w t 0 ~ o f ~ U million in retail d c d b Lhrovgh Dcocmbu 31 199L g4
Pa ((.27 d a y ibe ~ & b u 4.1992 dale o coaruvalorship, act ar(iIica& oudlom l&led $63.4 m P m or f 5UB d crkddcdmwritia b a d d i h taxdcfured muiticr and brokeraze senicrr which w.m p r ~ o u d sold ia v

fw

New J m q d offices arc no loagu ofiercd
cFSB rclail &a k -

-

is wll-pzdtio~ed

in dnlc+ markets and offers a prime opportuaity for any aquiring

the Bmk's mnsumu b a d h g cffortr haw been focused upon op(imha(ion of the idtutiop Dwhg (be part & rrlail &ce ~ctworL Each rc(ail o&ce war evaluated on its fmandd pcrformancc compared to (bc potential of the k da w k l uca hlmy d h & i which w e detumioed to & subslaodard w e clcsed amrolidatd or aold lo ce aacuhsrtina.cdinaitucah opuaciaru st (he maining oficrr m r c sucamlincd and mark& efforts 1-ed on

aquisition/re1wlioo of high-balanced e p i l bowboldr.
d rclailoL6a.s hN w JUJCY Fbrida ar+ located in some oI the top performing market &sar L e a & m p k B e and ~ N c w J e r s c y m a r k c f l a d lobc suburban and upper middk dars in nature, but a h include some stable and s c h i c bl&&borboods m arcas. in Floridq che markcis aLo tend to bc suburban and upper middle dm, 4 IVC cbaradi&Cd by a prepondcrancc of senior cilirclrr.
r(ptc.

%NFI ENTIALCPR&5C~lVs8/h%T - -01M027
CONFIDENTIAL MATERIAL - SUBJECT TO PROTECTIVE ORDER

CAM090 0081

Reply App. 00061

Case 1:93-cv-00531-LAS
--cd.l

Document 205-3

Filed 10/19/2006

Page 9 of 61

dcpasie CFSB Rab s~cbewmDdlagcsl ~ l ~ - i a rW cid bsadpuulwd b ~ n v ~ u rwhk ~ ~ r rm u y. wnridcrably smJkr in &cap,(be Baok's Florida r e l d oficc n c & ~ ~ r k ~lcvcrlbelcrr affords a posaibk a q a g &titdon d ( e braocbcr (be opportunity lo be a s i i c a n t playu, r p e d l i d y in South Florida bCFSB

bac made cvvv d m to maintab (be stability of the maolgu pod hir or h u I l l n a l u c b d its h e result bac bee; a high level o customer scr;ia lea* Ga hi& degree of curtomu loyalty. f ~c(.il& maaagm are a h cocavlgcd to be a& in lbcir respike I d communities 'Ibe *outstanding' rating &CSB naivcdf a i(r Community Reinwslment Ad saivilics b lunhu cvidcna d Lo B n ' d h e d to the aks
~ a r CSB a

retail om-

.-

itr Ncv Juglmarker ucq (TSB b scsmd only to F a Fidelity BanL in term d rc(ail depxit mark& sharc. The b( ~ a n L UIC markd sham kadu in cigbt of its New Jency markel a r e a and amoDg the top three in ovcr ball nf the is -k&a h m G S B baa much more compcWioq but nmcrlbclcsr is among ibe top ten iusli~tiopr ovu M d in
itx mark&.

rn

.~bcILdr'r~d~~~&Eudi~rovcrallm~tkd~tionhearbdhNnvJvsy &+hcamticarbueCtWhaaddhcpresmcc. A w r a g c a f m u n t ~ l o r c o r b p m d u a ~ . t C P S B W
H d m mregcs 'Ibesc chamdddcq mmb$dPriL n rela(ivcly stabk dc&t nf cbe Bank's francbira
bare, furtbu d a n c e (he valuation

B 6 ~ ' ~ U performed by tbc RTCimmdatdy fdb& consubatorship Ulldtr the &au&ancq y ~ u iwrrrPd to luod antidpaled dcposil oulo rcdua hisbcr mrliog borrowiagr and to aaommDQtc the ordsrly disposilion d p l c d g d -. At Dcccmbu 35 1992 CFSB's RTC liquidity ratio was 2 . % 08. cunhra(ioo d d

-

cSB em*
M to

a kan fcvicw splcm wbucbypotcntid problem loans are cladid awl doscly mopritnrcd if unert&ty

UIC bhvc wlluiiity. Cludicd assus, a c b includes BSLCU rated subrtandard, doubtful o loss but r -dude sscu n t d a d d meatioa arc u lolloar.:

..

.

CONFIDENTIAL MATERIAL - SUBJECT TO PROTECTIVE ORDER

CAM090 001

Reply App. 00062

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 10 of 61

-

~

ad durifid hrsc mor(gagc lwar
cnrpccato b n .r Camumuw

145,055

236,020 @,6M 43m 759 442 .
95356

48,553 338
3,100

Premium h n lwar pa

T &

d d k d otbu l o w

41581

TDclldudIicdb

mx ui
-1

33L576
3,452 109,537 227,813

RA&re h d for devcloprncnt and & RE0 b-tubstnaa forcdcd loans
Told cksdicd investment in real &ate
--

l!E %"'
2 % @ m
361.791 561.827 10,042

340.802
6 n 3 ~
2Q5

T a d JassiGcd loans and iacs~mcnt real estate in
~mie.a&pbacLcddlia lavcslmeoO

ABCrrlslcdrpDcblm ~ c m a s n ~ m i m m s l d S i U 2 dim a D s a m b w 3 5 1992 andDetcmbw 351995 r c q ~ d & l y . t CbsiGul as# l a d rpcEial mention a s indude an oonpcrfmming laaac, RE0 and in-substmaforedored loans. s& s&

A majorily dCSBfsresidentialand Eommcrcial r d mate loam a c s r d by pmdcs l&tcd in Lbc states of Ncw Jurcy,,Pbrjda aad W o m i a whicb havc cxpcricaced a siphicant downturn in dcmand for such propsrtisa. CSB's
m w c m c a t rcgulerIy a n a l p cach podolio aad rum& appropriate additions to tbc allowance for l s e on loans and oss rJc s ~ a~ rquircd to rcllur eooditiom cai&g at each rcportkq date. c

CONFIDENTIAL MATERIAL -SUBJECT T O PROTECTIVE ORDER

CAM090 001

Reply App. 00063

Case 1:93-cv-00531-LAS
~ b fd+ c

Document 205-3

Filed 10/19/2006

Page 11 of 61

lrblc dclails the ldivity of Lbc allowana for losses on loans and real estatr

Dcccmbcr 35
fin th0wandrJ

Dcecmbcr 31, Additions
516,917 14,W

1991

Cbargcoffs
(511,043)
(210)

R~ovwicd
51,311 2916

Othw S1 . 5 8 (-1)

1992

Allowance for lossu on loaoa.
M ~ . g e a 514,371 Cammcrual red wtatc loans 33,177 ci~rpornle o w l n481 Conrumcr loans 1,706 PI-um f i a n a loans 1,908
64,643
AlbWpDce for I~L(CSon real estate:

(6,71716)

2.5
519 539
5370

W'W
135
W.696) (a)

Zl ss
37P37

2,600

t25,371 2.537 4,485 2,174

(3,'3=)

Vm

(u;m)

5 m n 9 Y -

Real d a t e owned - mmmerdal-- -rcal &Ue W Real cstste owned - wnrvmu haubatrncc imccloscd IOW i9,m
19.938

Z m
2m3

c-4)
( m S

L m

(W 1U59
23.6% (a>

l m

14,261
24662

.

(6.619)

lBas

4.2 093

million on loans ~asaMul and on loas

nc sllowancc for L s s on baDJ and real cslatc at D-mbcr oe

35 1992 indudss spe4c dmiticd ]oa,rupecljvcly.

r u r e m a of $24 million md

CONFIDENTIAL MATERIAL - SUBJECT TO PROTECTIVE ORDER

CAM090 00

Reply App. 00064

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 12 of 61

The folbriogubk .clr f d information on nonacuud loam, past due loam w@cb arc still accruing intcres(. REO, b - ~ u b s t a o ~ s d o d loam and rcstrudured loam im

December 31. Dcccmbcr 31,
(in haw&)
1997.

1991 fU.610

RuidctltLI furt morlpgc lomu ~ m m u d arl d t s r ~ l c loam Corporate ICUIU Conaumcr kunl
-

J48P07

W

747 3 -

60804 iWO5'
4,370
-

Total nonaocnul hum

85.347

U8.993 10.649 15.159 2,492
-

RcsidcntLI 6I6I mortgage 1 90 days past due C0mmuci.L red atate ban^ 90 days past due Corponrr b.ol 90 day pan due Premium h a brru 1IY)days past d m

-

-

-

u¶
7.554 5431 11M) 14,454

-

Total loanr 90 a more days pasl due, still a u d q
~ o ( rn o n p u f m k l

=COO

bans

REO,Ilc( oidowaneu d514.761 in 1992 and S in 1991 W In-subd.~ imccbscd loam, nct of allowanas d $26,662 in 1992 md 519,788 in 1991 T d ncapufming Restructured
10114 R E 0 and iu-substma forcdorcd loam

-.m

99801

1G==

177,359 416,669
1 .6 m0 9

109,537 208.025
484,855 63.955

I
.

Total n o n p u f m n k loan%REO,in-substana fordosed loans and rertructurcd -1

5519,938

W810

-

A &ailed acbedule ofa l l o m -

b r loses on lo.ns and real

estate at Be d a t a indicated i o U w

&-I
Rcdidmt*l 6ta1m d g w haus Gmmerdal dc&.tc lomu To(.lfus(m~Nt~lolnr ~ a p o n tb o c. s Coarvmcr b.os

Deccmbu31, lkcu11bcr35 19m 1~91 514,371

525m 252.47
50,618
4,485

3. 3m
47.548
13.481

Premium IiDlDa
Told d b u b u aY

2,m
W

1m ,

19oe
17.095
64.643
1Y)

8979
5937
-

, m losses on loans a im
RE0 lpsubstyrc iorcdoscd loans
AUowana for loses on real estate

14,261
26.662

19.788 19.938

4.2 093

CONFIDENTIAL MATERIAL - SUBJECT TO PROTECTIVE ORDER

CAM090 0 0

Reply App. 00065

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 13 of 61

.Ibc statistical idomation son&ed in the tables arhich arc included in Wbr MI. Laan Servicing I n f m a ~ i o n i i pr&dw d c d c d illuslrations of Lhc swiced podolio Eharadcricticr Highligbls include: servicing in all 50 slates &#I puuasgc dmvcnW hralc (43%) d g o ~ m m mprodud (45%); i l 3246 kt N m J u g y Pad 18%in a ncturcigbtd ~ ~ f c c d 4 1 8 b s d r p h . and, a six membu management lcam ~ t a mmbiocd 80+ p m d s 6h upcriena. G r w MNidng income W U$39 million in 1992 X M

-

age, souroe l a d gcogrsphic cmccolnlioD d b u all wntniutc to a r t W y high percenhge of dcfaulf m narcipllarlv bens io b a h u n and f r o* pbboUpb 4& h a ~ ~ ~ ( ~ r a CCJ&~CII~Y im~roved 1992 WCJC l b in r----, -I I( 1991d s p k c ~ ~ ~ o I ~l & i R &nnvlorn o a & in 1992by 1 5 ~ 1 - f a n d& & l ofS759 minion b BUJUBI~. E m bough Lht IXCMI w d y aE& cffiaendea rs wen rs dclinqucny (and value), UIC d o p t i ~ m & u c d l o ~ m a w a g c m m I b n . ~ b a n r p u ~ ~ m ~ u . E z c d ~ e of ks o a t ~~o (ban 570 per 1 IncrcmenInl cash arc wtimald by maaagcmcnl at kir Lhan bdf this amount.
~~

% -bdizd I .. -

Oearwatu Scnidn. Ccotu a r l 0 ~ m 6 lorn administration a r m u n h aad &led luo& d iocludim -d o m u and iDvcsto scniccq ex~& a&mtion, payoffaad arrumpii& dcIavX administration, forcclorwe a n i REO. Indditias(bcCen(rravrrbcMadumandlom&byotbusowcdby(3SB. Thicpodolio c~nlJDed additional 2 . 0 loans tolalliog $554 million IU o f b e a m k r 31. L99f an l00

&cbboard- and r s e h &-m - .. ..

EucnhOy a ulf-suf&icm(, indcpdcnlnat a d c r , Lhc stall J I S ~ perfoms d c r w r i h & buman m o v r o y lraining, a hcilib'u tile a n d md mmdclc sntun nulomation mine ar a remate d dicng Computu ~ & c r1nr's MSP as wen aa numc;ous PC applicatiok

-

WDUPa Lbe Pmippny. New JCNY faciliry. This -.dDg t repr~~nU a U&UC 6ct o f ~ ~ e r a t i o n d Ibe &mumu amar murh dit (the Hrme Eguiry R oW s a Lbey prcpnuisaU~ s know) nqwes the scrvicu to be rblc to dvaDcc fiwk to maurnem, rraodcilc daity borh amnrmu m d iovcsr&acmun& aod n o d f f ~ m o ~ s tsimilarc ~ a ~ to a dx&q or d l card s c m u ~ L 7hu i not (he type of szmdng normally auodstcd witb a mortgage s4ciag s

T ~ $ W d c h g ice b m m c fm tbc p d o l i a r s c h d for inbeston was $1.45 mWon in 1992 In addition, late m l l c d i o ~ ~ Sl37,aY). %u'c

CONFIDENTIAL MATERIAL - SUBJECT TO PROTECTIVE ORDER

CAM090 001

Reply App. 00066

Case 1:93-cv-00531-LAS
P .
oaup.oy

Document 205-3

Filed 10/19/2006

Page 14 of 61

boa
loeationt are ss BUm
Monthly Lcav Papeaa
0.614

(IFSB has certain h c d proputiw which are no longer b c i i wcd. C l o d 1d Localion
C!r&havco. c l t d e ,

Least Expiratim

FL

MD

Midon Bay, LighcaouccPwm O r h d q FL Tamp AEC S i m Reaton, VA W e W& FL
Nd d existing s u b b
& pren'oudy nocd, a a+

lo/%

lorn llrn
2/97 4/99

3/93 9/93

4 . m 10,m

5,263 1 4.524

w*

lo/m

4J4e

branch exists in the Washington,D.C uu So @

of Lbir lcarc arc sr f l dm
Monthly L e u Papcocr

Loarb

Lsass Expiation

Monthly Lease PspcDcr

PMC~OI!, NI Tomr Riw.

anrL.m

8/97
2/98

2/94

slA.489 5.098
3.497

CFSB owns h aecutivc 05a building l w t c d at 2LXJ South StrccI, M o r r i s t m New krscy. 'Ibc building is appmdmncbM,NQ&pmc and is carried a1 apprmjmatcly tS million No morf@gc exists on the buildin& Real ftd apprdmately S15QMO. &ate ~g m (bt buildhg

In additioq d B has a tbrcc-s(oryleased h a n d sclvicw m t c r totalling approdmalely l89,W square feel located i P u s i p p y , Ncw Jo~cy.'Ibc building is l e a d born Bcllcmcad hianagcmcnt Coltlpans hc hlvm separate pieces .
-

-

Lcare
Foolage Expiation

yearly Rent

-

Fs and seaad Door ul Third Door
-

l89,On
Caldatcd at 51630 per square 1001.

S3.081.629

N IDE I L- BJ T F8E\5$3-ft~51f~5'k

CONFIDENTIAL MATERIAL - SUBJECT T O PROTECTIVE ORDER

CAM090 0 0 8

Reply App. 00067

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 15 of 61

In addbia to rclll u p c m e d a w d n a t e l y S3 million, paymcols are made to BcOcmead Managcmenl Compny, I n c for mamgcmenl f e u and additional buildii maintcnanu smks of approxlnatcly EBO,KO and f60.000, rcspedivcly. Real wlate t a u paid by CFSB we aimaled lo be 5500.000. Ejlcur capaaly &Is at both l k Morrislow and Parsippany locations.
G. Candldaq for Comblnallon d h Another lnstllullon

S i n e CFSB is a large inslilulion, $48billion ofassels at date 01 sonscwatorship, the Bank is not considered lo be pmitioncd for combination or merger at this time. Homver, the pavibility could &I for one or more smaller institutions lo be combined d l h CFSB.

brmwscd, ihe RTC has m i @ the r c s p ~ ~ y b il id sutaiiaricr l o r cbird par(y mntrador Bridge o MI Managemen(, I n r Rdw lo Po* I Sccrion I.Subsiduiu for furthu a disadon . of (he subsicliaris.
& pr&o&

-

-

IPF

d B hsr teen purchasing bam fmm IPF undu thc t m d a W milbn loan p u r b ~ e n~ l~ l beween IPF c d D, IPFF . l & c d R&um F Holding b p . Inc and ( S B p i o r to d a t e d &temncion in or& to prend to ~ r o l u lhc fair markc4 nluc of IPF. currcnllv utimstcd to be beween $45 and SSO million. Bridte Asset l remmmenc6ng (he d u s t i o n of& &cling M, I he dnllcdand sill bssulx&ng a & Ma-durn - -r- M ~ ~ B ~ A r r d M ~ n s ~ m n ~ h c h s s b c r o u a l r i n n u i l b c b c ~ m c m d ~ a fundim-CQ hduding a r&slatcmcnt i a p r i loan repurchase anhncment v&h-~ernieal%ank. ~ri&e eet g M&WI, Inc bar iw&cda f-al rcview &adures i d 1- funding hmactioas and h a v ~ l t mnduaiag s a y limited licld review of the IPF rcmonal loan ~ r o c x s i n ~ ccnlcn and wmc d itr d w oflicu t o u l a b k b s l m l of comfort thst IPF hu adcquate i n l k a l m w o i relativc 6 the originatim and vrvidDg 01 I aud (hat losold to CFSB mccl the rquircments of the loan purchase agrecmenl.

~-.

~~

~~

On DeDMber 30,1992, h e Financial INWmenIs Depar(mcm in the V d e y Fuge Ol3cc asauncd ruponsibilhy lor the dkp%m.dIFP Bridge W Mmagmcol, Inc r d a i n i i respormbility f a tbe management oKlaigb( of IPFduriog uilh nm,Nablthcd and mnsl(mllyproPab1e company and approdmatcly .dzn maja .oe Ihe d p e r o d IPFB d w u t i c and international mpontions, invcslmcd bankersand &vcslment group have &rcucd inlercsl in a gsb arrdase dPF. BQb Br& Asel Mana~mcnc. and chc Fmandal InsrnuDcoU Dcpuimcnt bclievs the( IFF cam 4 Inr k u l d b c sdd m qui~&parv'bk 7%; avc&e w i g h t 4 matwily of tbe loan portjolio is lcrr than 9 months hat the m i d loan rctluins m a m e n 1 i nine monlblv i n s l a h e n u the T i ddkl~ n mukt be made st the time afthe a &&th;&lume ofthe loan sen;'dug podfalid h s&rwnt)y bpadcd by shon 1 I , chnngges i n d m loan wightica mbes and any negative publicity, adverse commcnls by competitors or Ion dky mark& p u s 4 d U have m immcdiatc impact upon profitability.
&a mrra)um:W A r r u Managcmeru, Inc, k Subs'diariu Depar(mmbthc FmaDdal hslrummls D c p i m m t and ihc ~ r v a t o r s h i hax ma& a moccrtcd elfro1 to amid any unocsrary interfcrena in the day lo day m a i o n s dIPF and p to c q d t e Lhc markcling elfati Sina Dco~hvXl, l9Qibc F ~ ~ ~ ; ~ ~ ~ IJcpa&cnt Ihar ingaged kgd c o d I I W V U ~ la with Lhe sale o the m m m m and its s u b i d i d e s and has irrued l . mndud tbe Durrvlrv due dilincna efforts c o ~ c c l d . . a task ordcr solicitation for and i s currcntlv in the v r m of selecting a linanaal advisor for the transadion McamrhJr, Bridge Aucc M-mcmt, lnc h complcied a rotidta~ion ; for-bwbcrr d u a l i o n w ~ c which il initiated a l n toDmcmbcr J0.199Land ha draft4 and submined a Cau Memorandum r e ~ u n c n d w l r Lhc d Amerain ipiraical ~ u o d a l c i l o preparc a businev valuation 01 IPF. The Fmandal lnstrumcnls ~c-~arrme;t--cufJy beliivu, b a r d upon Lhc number and quality of inlcrmcd acqutorg that IPF canbc sold prior lo thc end 01 the sceond quarter.

-

.

~~

.

As described in Pod I - Secrim I. Liligorion and Erhibir X - Lirig.lion. CFSB is a party to ccrlain legal . actions; thc oulcome of which could havc a rnatcrial financial impact.

CONFlDENTlAl MATERIAL - S U B J E C T T O PROTECTIVE O R D E R

CAMOW 00:

Reply App. 00068

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 16 of 61

'Ibc ar&tioo.l sbuavrc and saky kwh as arrrently cmrcitul4 appcar appropriate for this &itulion based on & siEC and wmpbo'Iyofbwine~ ~ ~ r aand bBD pmblcm~Tbeankries of four CSB olGctra haw been reduced. ~ t i m
, the hsinessd t b c Mor(gaec Prnduaion is o o m p l d 4 t st+ b k lnrb ofrelated loan admiitration iood support d b ~ l c lcomadad Ar (hc Mubip*Aqwu Preparation Plan b Mplemcntd, mply uill be

& d g d or, 8-

addiiional staff wiu bs hired.-

- .

& QdQa t EmdtIlCJO Badvoom OpeMlons md C o f

5hcInfrrmalioD S)sfemr %poridu
& J x b- ~ v , & y & I
5hc

d t c o l l y high k d s d svslcms sdabiiWmd re&

a Vdte Addul Cornpoco1 to t crganiratimLhat P smkr&I l c ValueAdded is k levels at m eorn~dtivcrice. Tbe

& e! mn f f& m+ n ean p& appradmatdy Lbirty perpat g r d i the &ling applicalion p d u d sct o little & no iwcmcnal crpcnrc.The D i i o n k housed in an ualled pb+ pknt wi& sufficient space to w a n d

d B is amenlly mkwhg pad evcoq indudiog ba.o+jnnLirn and purchase practices and may consider bhghg e i vl chargw against nurent and former ernplops secking damagu for fmuduknl or negligent lending aclivitica.

I

~~NP&'#PJ#&&&~T~ C-A A - ~ I
. ..

CONFIPEhlTlAl

MATEQIAI

-

IRJECT TO PROTECTIVE ORDER

CAM090 001

Reply App. 00069

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 17 of 61

1. 'Ibc p r m t i o n ofthe retail banking franchise value by mainlrioing Lbe New Jcney retail branch network bud Tbc Florida branched should be marketed as lhrcc s e p t c packaged.
2 'Ibe d &

and tiquclyiogdth balance sbecc cbrougb the s l of hnstmwt securities. mortgage-backed ae ~ e I D d k M i D ~ ~ ~ d i D . ~ t h e C a p i I P I M b k ~ ~ S p c d a l i ( t s . 'Ibcproceukwillh u W lo fund d c p d ou(0ow and rULc cxirting bo&owiap

3. RK! V&y Forge to d u r t c Lbc ~o~pcrfonning a ~ to dtposc of lbc propcnics as efficiently aa arrct, d pc,uibb, including REO pmprtiw held by subsidiariu
4. Tbc d c or diacontin~ucion a l l d u subsidiary opcntionr This includes the d c of assets dIPF. d

-

5. Salc d b e mortgage 8 e m h operation and semcing rights togctho as an ongoiry con-

7.

% IC

&continualion d rcddential lending and related subsequent saIw of chcse loans L Inwlon. o

B 'Ibc~ofpcnod~b~demabuingruviceloreCail~&omusandbornrwcrqa. well as to facilitate cbe pooling, pack& markding and liqueficahn o f ~ u c k

9 To evahulc ud a d j w d the,d the Cmlrdlu's D M M to accomplish b e additional tasks . &sMag reqllircd mdu RTC guidebss
10. To p

w ibc civil vJmager

for damages for fraudulent and ncgligwt action by cvrrult and formu cmployccb.

F N V-0104 i 6 T 8C-A @ I F P $B c
CONFlDENTlAl MATFRlAl

:. .-

- SIJR-IFCT TO PROTECTIVE ORDER

CAMOW 00t

Reply App. 00070

I . .

.

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 18 of 61

IV. Operational Issues
CFsB Operating Plan is bavd primarily upon h e cornponcnb outlincd in Pod Ill. Rcconvnmdaiw. 'This Thicon of the plan f d ihc b l e d stratcgy to implement h e rcmmmcndcd goak and objcaiw cnumcrated in that sccrion.
+

A. RcteU Ran*
It b ruommendcd tha! thc (;TSB rctail banlring francbLe be sold sa goingzonccm profitable operation It b believed that the greatest value would k obtained by the following: o Sell the 31 New Jusey retail ollices as one package. Sell the nine Florida retail oficcs m three packager the five South Florida ofliccs sr one package, the hvo a-tu o b and the Tampa omcc as a s m n d packagc, and thc Winter Haven oflice as a lhird package. o Qwthe Dislrid of Columbia retail oficc.
0

&cc locations together with the respcdin d c p i b and staK would be sold along with For each package, h e whatever s u p c n ' k o ~ m-8uncnt and back-oficc support may be required by each of t h aquiren.

B Managed D0msldog .
The O p a t i n g f'hBudget details t k anticipated Uqud Bank assm and sutncgucnt pa)rbun d born* and hiph-con d c ~ o s i l cI L ~roiection 'b rcducu the 54.7 billin of total liabilitiu at intcmntion date.,to -7 - million . ~ all~ecembc;31.1992 fo;a i a a l redudion d approximately 54.1 billion.

7hc resulling smaller inrtitulion mill be positioned to bc markctcd t0.a broadu rangc d third-party i n n a o n interested i atablishing or inerasing their NewJersey or Florida banking presence. n
The Opuating Plan Budgel, along wilh forcc&ed s l e s information, are addressed in detail in Port K IMepted Morlutiq~Plon.% RTCQcdit SpcdalLt, in wnjllllabn with the Assa Marketing Spedalists w i l l develop a ovwall . arrt eKdivc a s e l & p i t i o n strategy.

'Ibc Opcrafing Plan Budga i n P d n pcrvidcsthc anticipated timing of the planned sales and r c s l ~ c l u h g d v i t y . a and the assumplions used lo d c d o p the bud@ h m d n g opcraliq pofik has not b a n wablished a a major stratcgy because ihc opcrnhg wpehuc an appropriate s for an inuilulion ofthis sire

As ptoioluly noted and detaJd in Lhe Operating Plan Budget. CFSB is currently funding a portion of its operations
OmwghAAamcr from t k R T C Additional func6ngisapied to k prondcd through the s a k o a& f s. s O h sauow d funds indude loan principal repayments, scmcing fcc revenue and other traditional rourcu of liquidity unlil the

undetipng wclr arc d d .

As dcsm'bcd in Pod 11. SeniM D. Rrsn Q~roliy e Bank has $520 million of nonpcrforming assets at Deccmber 31, h 1991 C o m m d Workou Di\& k rcspndk for t k management of the commercial n o r r a ~ l aloans and RU), a s l dsui'bcd in ihac rdim The F b d o l u r c andREO d c p m e n t d thc Clcanvatcr, Florida Centw h rapom%le for the residential rust mortgage non-accrual loans and REO.
The CommuJal Workout Dinsion will continue mth ik primary lunction of resolving non-accrual loans through res~cturing 1 al amd managing and &ping olthe Bank's REO. Prccrdurer vill be f o U m d or 4 amply w& i RTCguidclks and vhich minimize potcntial l a v a . % rcspomibities of lhk dhision wiU eventually be assumed by a third party contraaor.

-

CONFIDENTIAL MATERIAL

- S U B J E C T T O PROTECTIVE ORDER

CAM090 0 s 0

Reply App. 00071

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 19 of 61

and R E 0 propcr(irs and to proms5 ihe new nm-acrmal To -hue lo msnsgctbc-1 rwdcntial IlrS delinqvmdcswbirb ucanb;ripated m a rcsuh d & e w i r d o n , ~ r c s p o r u b I d c of ihc FwsJmurc and RE0 t m mc r depanmenl will be usumed by a LhLd party m t r a d a r .

'Ibc~TChshtcd~A8ccM~edmtbcaxCmiafanhridiaria. u t M ~ c n t k a r r r ~ i n l b e ~ A r pa.^ ofkgaUydkdiq an iaadivc suhsidiaria Tbc RE0 properlies will bc p l a d undu SAMA/SAMbA mntrad & & Much I, 1993. A mnrkctiag plan lor all subY'diary operalions wiu be presented at a later date a l o q with (be lotcgratd Markdag P h
& p r e 6 0 d y mmtimd, responsibility l rbc sale of l P F w (ransferredto h e Fmantial Inrtrumenu depart men^ a Additional mark* informalion will bc prcscnted dong witb the Integrated Marketing P h .

%S72 bJlsD l p d o G o & a d by CFSB lor i l l l a n d &hers, h d iinP& I Sedan P Lwn S u v l c k . p w d i o and i Mibd W. LaM Servicing Informm'on, n prcscnUy senerating appron'mately 53.2 million per n mom& io gross su4cin.g k c and ancillary iaome. Tbe portfolio's high perantage of agency servicing rtrong net 1 and tbc &&cia produced by its remote ~ ~Suvi- t Centu opuacions reprsacol a W ~ c a n t u d u e to ihe Bank despite interest rate inspired m o f f and fairly bigb delinquency.

-

-

righls H o dh mad & d i ~ . ~ an& the Bank r & te t & in addidon, Lbe stand-alone Clcanvater plicb iu g x m n p&mana.nd ospadty for upamion bas value in sod d W Spccial . lmridcntion rbould be h a lo s c . the omration and scrvidnn MhU lonctbcr as an o n ~ o i c o n a m P r o ~ ~ ~ l v n~ amfydoodabududf& rsls,~ b oc~ m b i & ~ a sbauld a p & d &e nu& ofPmpc& b lo indudemPC& &bout wgutisc in tbkr field d o ha= a desire to immi in mortgage ban semdng and LIIIU maximize tbc total value Cu(.ia deed by CFSB b a n r w u m proririons. Tbe pdeotial rezour6c on loanr with prindpal bdsDadqpdmae $140 milliom at Deccmba 3I, %would bc a mraidcmLion in lbe pd&g of& ban servicing 'Ibc a n i l t & y dshadard r e p e ~ t a t i o m warranties born h e RrC will aLw siguificandy iolluencc the sad

%b n switiq a

wc;.P Ceatw &&on

a

cwcual pries for chL package.
'Ibc msd h k ban #olio can bc sold lhrouph normal market &4 rithuwirb lbe s w i d n a riehtr ietaiocd or r e l d . Sioa tb& b a pcrv'bility all of Lb;defaulted m ( e loam will ha= becD sold sepGtdi in advance d mark& . " lbc r e m w d u ofthe wrifotio. relention of tbe s u v i e i D ~ riebu and addinntbat value lo Lbe a-tu -operntions pJagc may again promote kardmum d u e realizati&.

-

'Ihc Connvw Lmam sa+ad for i n h l ~ ~ ~ t a s porn&

b M asset fm whi& some value should be r c d b i Haarcnr. the

u~iwsep u b l d d ~ hloquircn 4 bed,ar the operational conocnrr rrrodated witb a portfoljo such M this may bc
m i g h IbC camomk 'Ilk Qpc ofrcmkingaJI be most anradivc to finandd institutions that currently originate a,,d service similar om lypz% In la& IhL senicing may realize iLs higbcsl d u e by being offered to the owners d ~ b undulj4ng bnnr c

& notedinP&XI-S&F.

acCUpnncyIsnru, an area which m u t bc ad&&

within acefam puiod o f b e H

rbe repudiation ofevlaia leare obligations

'Ihc ksrw on ibc doscd locatioonr that have bcsn prcviousty idcn~iGcd rbe three kascd mor(gagc produdion ofiiccs and &&I rcpu&ld a smn sr possible, but no latu 16an A p d l 3993. In addition, (bc lease on tbc WYhington, D.C. bc , baom s b d d be raruQa(edbvMav L 1993. Tbe &anits olthic bra& &odd be transfcned to a New J u ~ c branch in v that CFSB h i b; uosu&ufuil& marketing Lde deposits t o a local fmmcial institution. cn
~

CONFlDENTlAl MATERIAL - SUBJECT TO PROTECTIVE ORDER

CAM090 OO!

Reply App. 00072

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 20 of 61

Ncgotjatias a c -@* r cmduded e the b e d building in Parsippany, New Juscy. Current plans are to duct n Ibr rmt a p s e m IkbuUw lo SlSaOpu ypurc f d w d to CL'minale Lhc nddiIio4 c h g e s for mansgemen1 few and b d d i q maintUUUI0c. &the ~ p l a y c w prcvhsty aEIodaled wilb mongage produaion are scheduled to vacate lhs prcmivsm IBIU IhP.March 31 1 empluycu from tk M n s o n NolJuscy location d be relocated to the Grst % oitw, l and s d noon in P.nrippmy. 'Ibs !e s for be third Door will be repudiated e f f d i n April I, 1993. ne . ae ovmd buJding hi M o k l o w is &atcd lo k sold .book d u e on July 1.1993. ~ I

~r prcviody disnrared, residential Curt mortgage loan origination ccatd Dcccmber 14,1992

6 -

M m 9 &pattRwb Mlrd besl k d m b e d as lean. 'Because of (be added reporting undu RTC ~ a n u r n t o d p wtid&cd BtVili0q(he M u g kvcl of (be Controllu's D i d o n is dparcidar &nccrn The wd
RTC d mDsYmonitor w sditu~ l eo D ai ( u d accordin&.

d m

(be staflinn of (be Controller's Divirion lo aecom~lirh the W l ~ ~ p p r o p r icertain pXcm are eliminated e u ec at~ L&r in the Bar&, cmployw from tbuc &her arur of the Bank will be rearrigned to lhs Cmtmllu's Diim

rarh rcqui;cd under RTC & a &

J. kcvnq d Bwl. and Records

appcprsdcquatc (oemurc (be sauray d books w d 1No major u p e ~ d i h v o anticipated in 4 me IhL arcs The Bank's Jntcrnal Auditing Division is responsible for monitoring (be adequacy of internal controb.

~nranalIC CI& D

a ~ltbough mark* tbc institutioll a whole is the mOdl desirable goal, it c n be offend in four or Gvc major mmponenls b d upon Lbc retail markct segments it SCIVU.

f8NPk'@LV#h3!A$%T c-A A - o 1 u :

CONFIDENTIAL MATERIAL - SUBJECT TO PROTECTIVE ORDER

CAM090 009

Reply App. 00073

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 21 of 61

VI. Operating Plan Budget
CFSB o p ~ t i n plan budgel i pruenld in (hc year cndcd Dcembu 31,1593. T)IL budgcl anlicipales gcncral and g s

administrative upcnrr of W.7 million lor the ycar. Opoaling expenses related to normal banking aaivi~ier are projccled to decline from 525.9 million in the fin1 quarler L $8.8 million in the fourth quarter. o
Total noapulonning W l s w c $520 million at Deccrnber 31,1992 and are upcded lo dedinc in W93 as tho rrrull of salrr and disposilionr. Additions arc cxpcded lo be minimal.

. .

CONFlDENTlAl MATFRlAl

- Sl IR~IFCT PROTECTIVE TO

ORDER

CAM090 009:

Reply App. 00074

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 22 of 61

TO:

Thomas Horton, 1 F i d Activitiu

THROUGH: J. hmey, Resolutions
FROM: DATE: SUBIEIT:

Plul

v

fly ' 1

Request for Waiver of C e d n Mongage Loans from Securitization for: Cancret Fedval Savings Bank. Parsippany. N1

.

There are approximately $517 million and $294 million of performing single family residenljal mongage loans at Canerct originated in New Jersey and Florida respectively, that we believe are integral to both the franchise value and the markerability of this institution in a Purchase and Assumption tansaction. Caneret has 31 branches in New Jersey with deposiu of approximattly $1.9 billion and 9 branches in Florida with deposits of approximately $343 million. If a waiver is granted to release these loans from Securitization hey can be offered for sale with the deposit franchise of Caneret. Resolutions will contact the Director of Asset Management and Sales in Ihe Valley Forge office to assisr in Lhe sales proof the loans. The basis for this requcst follows:
1.
2.

All loans were originated by and are serviced by Caneret, creating a unique franchise opportunity for aquiron. Inclusion of these loans in the P&A would provide acquirors with earning assets in lieu of RTC cash. Given the size of the ponfolio. this would represent an excellent PBA marketing element.

APPROVAL:

Thomas Horton, Vice President Field Activities

DATE

Reply App. 00075

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 23 of 61

llPnomun mI T h o u 8 P B0 . (Vice Pre8idont
riald Activitiu
FROM:

Cd D ~ ~ l a n e y m . Vica Pr08idmt Department or Operation8

~ o that the funding bill ham pammad and resolution8 ara being v mcheduled, va hava revievd the Au et 26, 1991, ammet freeza guideline8 and hava made threa rev mionr.

f"

o All performinq commercial loan8 vill b releaeed to U S D
for a commercial securitization effort to occur no earlier . 1 or parfoninq commercial loan. not than April 1994. 80 included in thie effort vill k u n d u the control of Ans~ but much malee MY not occur prior to April 1994 UI.8 Il8 they comply vith tha 45-day mettlament provimlon in the Auqumt 6 , 1991 8o.O.
. o All 1-4 mortgaqa loan8 will b available for male but can not mettla mora than 45 day8 prior to a mchedu1.d resolution data. Thoma loan8 vill b relaamod to )rWsDVaPip.lino . nanagement*8 control for detenination of tho bemt mala8 approach. Iwavar, to also confirm, PipeliM nM.ge&ent ha8 full reaponmibility for making mure that sufficirnt accaptabla loan product 10 available and can k delivered .for remolution8, a8 may be requirod to comply vith minority branch 8ala8 and other ramolution raauiremant.. In addition, Ramolutioru advieee that Uia loqimlation ham additional reauirement8 that AWSD mhould k menmitive to. . . includinq the-mila of axlmtlnq p u f o n i n q product at institution8 vitb minority brin& 0xpomuia:or at minority inmtitution8 like Life bavincr8 in Baton Rouqa. Louimiana. molding much product for rem6lution might bi i batter approach than melling existing product from them0 institutions and than trying to locata other performing loan8 fro8 other institution8 or recaivershipa in ordar to meet requirement8.

[ I G
EXHIBIT
Reply App. 00076

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 24 of 61

o Conauor loan8 a r e a l s o released t o AllsD aubjoct t o the 4s day r r t t l o ~ o n t proviaion i n tho Auquat 26 ammot i r o e z e guidolinoo.

~ 1 other prmvioua a s r o t aalo r r m t r i c t i o n a ( i n c l u d b thoma a t 1 o l d s t o n r ) a t i l l apply urd a11 p r o v i o w v a i v u r prov dod t o Rosolutionm t o i n c l u d r l o a m in tho roaolutian w i n i n form. I f t h e r o e r r any v t i o about there rovimlono, pleaao c o n t a c t ~ Barbara 8 1 e i a t i f t of my r t a f f a t (202)416-7461.

f

Attach.*nt
cc:

Lyn.tt. Andr0a.n Fimld Offico W 8 8 FSC VP'. p h i l i p Jonom T. Michaal Thompaon s a l l y C. McCortick Ron Baob.1 Sandra L Noblem . Dave J . Bodi Keg J . -80

W l l l i u 8 . ROO110 J. Paul R M O Uarah ~ C J U I I X n

r

Reply App. 00077

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 25 of 61

TO:
CC :

Herb J. H ~ ~ ~ P R ~ s o P R T C M :

BCC:

ha:

Ann Richards@HAfDING2@K1MC
Thureday, September 15, 1994 14:01:59

I

Subject : Dater Attach Certify: Forwarded by:

EDT

N
Herb J. HeldWIaeoPRTCDC

Forwarded to: cc: Forwarded data: Comment* by: Comentm:

Sharon DUM YoreQReso@RTCDC Tussday, September 20, 1994 Herb J. E ~ ~ ~ B R R s o B R T C D C 8:47:24

EDT

I

..........................

[Original neaaaga]

.........................
Should

we're chomping at the bit waiting to sell securities out of Carteret. they still remain frozen7

I

Reply App. 00078

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 26 of 61

/

Mtm: Attach:

1- 4: B bjactr u

B u b 3 . B~ld#lU.o@RKpC r o c ~ u t u ~. t h.id.y, 6.pt.rb.f 16, 1994 15126:56 EDT

Cutily:

r 0 r ~ u d . dby8

1

S u b J. [email protected]

?orwardad to:
~otu~rdod Zkr c-nt. by:
C LI

Bbuon Dunn Yoro@lUmo@llTCDE ~ u o = d . y , sopt20, 1994 8846154 .DT ~ u Jb ~ . l d @ ~ u o @ m .

w e

still vorking with a minority wholo bank biddor. W w i l l mod about o $1.4 b i l l i o n i n louu. ff Sandra ham th. louu and d w not n o d tho .ocuritio. than ohould b &la to r.1aa.o tho mocuritios. .

U.

CONF~MNTLALSUBJECT TO PROTECTIVE ORDER CAY-A4014279

Reply App. 00079

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 27 of 61

PNC BANK CORP Documenl Type: 10-Q Form Type: 10-Q Documtnl Date: September 30, 1993 Documtnl Control Number: 93524538 EDGAR Search

UNITED STATES SECURITIES AND EXCHRNGE COMMISSION WASHINGTON. D.C. 20549

FORM 10-0

(Mark One)
X ! OUmTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

F O ~ the quarterly period ended September 30, 1993

! TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(dl OF THE SECURITIES EXCHANGE ACT OF 1934

For

the transition period from

to

COMMISSION FILE NUMBER 1-9718

PNC BANK CORP. (Exact name of registrant as specified in its charter)

PENNSYLVANIA 25-1435979 (I.R.S. Employer Identification No.)

(State o r other ~urlsdictionof incorporation or organization)

(412) 762-2666 (ReglsLranL's telephone number, including area code)

Indicate by check mark whether t h e registrant (11 has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act oE 1931 during the preceding 12 months (or far such shorter perlod that the ~egistrantwas required to file such reports). and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of e a c h of the issuer's classes of common stock, as of the latest practicable d a t e . Common Stock ($5 par value): 234.445.135 shares as of October 28, 1993

Reply App. 00080

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 28 of 61

'rhe PNC ~ a n k Hotline at 800 982 7652 or Shareholder Relations at 800 843 2206.

malysts and institutional investors should contact William H . Callihan. Vice President, Investor Relations at 112 762 8257. News media representatives and others seeking general informarion should contact: Jonathan Williams, Vice President, Medla Relations, at 412 762 4550. 24 1 EXHIBIT 28.2 PRO FORMA CONSOLIDATED FINANCIAL INFORMATION PNC Bank Corp. has entered into deflnltive agreements to acquire Sears Mortgage Corporation, Sears Mortgage Securities Corporation and sears savings Bank:collectiuely "Sears Mortgage"). The acquisition is expected to be Completed by rhe end of the year and is subject to v a r l o u s regulatory approvals. Under the terms of the definitive agreements. PNC Bank Corp. w ~ l l acquire all of thestock of each Sears Mortgage entity for cash. PNC Bank Corp. will account for the acquisition using the purchase method and allocate the purchase price to all assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The amounts recorded will depend upon several factors, including prevailing interest rates and residential mortgage prepayment ratee, as well as Sears Mortgage's assets, liabilities and off balance sheet items on the date o f acquisition. Actual market rates and other factors may differ from those used in preparing the pro forma financial information. The pro forma financial information on the following pages presents (i) the historical consolidated balance sheets of PNC Bank Corp. and subsidiaries ("Corporation")and Sears Mortgage at September 10. 1993, givlng effect to the acquisition a s if it had occurred on that date and (ii) the historical consalldated statementsof income of the Corporation and Sears Mortgage for the n;ne month period ended September 30, 1993 and the year ended December 31, 1992, giving effecc to theacquisit~onas if it had occurred on January 1. 1993 and January 1, 1992, respectively. For purposes of presenting the pro forma financial information, intercompany transactions between Sears Mortgage entities have been eliminated and certain financial statement reclassification~have been made. The pro forma financial information includes only those actions to be completed on or prior tothe closing date and excludes (i) balance sheet changes, if any, that may occur after the closing date and (ii) the intended effect of expense savings to be initiated as part of the consolidation of the mortgage banking operacrons of the Corporation and Sears Martgage. The pro forma f~nancialinformation ie lntended for informational purposes and may not be indicative of the financial position or results of operations that actually would have occurred, or may be attained in the future, had the Corporation completed its acquisrtion of Sears Mortgage on the dates indicated. The pro forma financial information should be read in con]unction with the Corporation's 1992 m n u a l Report on Form 10 K, the Corporaclon's March 11. 1993 Quarterly Report on Form 10 Q (which includes as exhiblts the 1992 audlted financial statements for each Scars Mortgage entity), the Corporatlan's September 30, 1993 Quarterly Report on Farm 10 9, and the unaudited financial statements for each Sears Mortgage entlty as of and for the periods ended September 30, 1991. flled herewith as Exhiblts 28.3, 28.4 and 28.5.

Reply App. 00081

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 29 of 61

PNC BANK CORP, PRO FORMA CONSOLIDATED BALANCE SHEET funaudited1 September 30, 1993 (In rnllllonsl PNC Bank Corp. ASSETS Cash and due from banks (3281 fcl Short term lnvestments Secur~flesavailable for sale Mortgages held for sale Investment securities Loans, net of unearned lncome Allowance for crrdlt losses ~ e t loans 26.445 Sears Pro Forma Pro
Mortgage Adjustments Forrna(a)

$1,742 250 3.443 296 17.732 27,385 (9401 4,586

$258 244 957 1.391

$250 fbl

$1,922

194 7 (dl1.407 1.687 17,732 4,609 184 (dl 31.878 1300) l e ) (231 (9631 181 30.915

Purchased mortgage servicing Other ~ o t a lassets 2,344 291 $52,280

28

221 (53)(dl 2,582

40 (dl

289

$7,948

($2001

$60,028

LIAEILITIES Deposits Noninterest bearing Interest bearing Total deposits Federal funds purchased and repurchase agreements Other borrowings Notes and debentures Other

$172 (dl

9,948 (3001 (el 250 (bl 58 (d) 55 (£1

Total liabilrties SHAREHOLDERS'EQUITY Total liabilities and shareholders' equlty

See accompanying Notes to Pro Forma Consolidated Financial Information 3 PNC BANK CORP. PRO FORMA CONSOLIDATED STATEMENT OF INCOME funaudited1 Nine Months Ended September 30, 1993 (In thousands, except per share data) PNC Corp. INTEREST INCOME Loans and fees on loans Securities Other 923,293 Bank Mortgage Sears

$1,433,932 40,901 28.694

$338.015

22,404

Reply App. 00082

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 30 of 61

COST OF RESOLUTION (projected) TO ANTICIPATED THRIFT CLOSING
S6L NAME. W T E R E T FSB
Locat~on: NEWARK NJ Ant~cipaled Tnnsactlon Type: FIN. Date d Coat Test Data. 1013144 3/10/95 (in 000's) Projected Cost o f Resolution:

BRANCH PA

Expected Clmlng Date.

C a t of Propaed Tmnsaction (Per Cast T a t da1.d

03116D5 )

!

Mjustmnt for Operating Expenam.

Projected Ccmt d RmoluUon at Expaclad Data o l Closing

2225,304

Projected Cost o f Payout:

4

CoDt oi Payout on Propmad Tranvclion 0311645 ) (Par Cs.1 Tart d a M Add:

5

M i u s m n t i o r Opamtina Expannr

I

Projected ~ c md ~ a y o uat xpectad ~ a t o( Closing i t a

$350,771

~
1

1 7

PROXL7ED LUVlNLiS A m R ADJVSTMENT FOA OPERATINU EXPENSES

$134.467

Adjusmntior b m t i n g Expenses calculahd as f o l l ~ : Per Day Opemting L o u RTC R o Rlla Lou Ratlo Per Day Operating L o u (RTC Sham) Number d Day# lo Mmlng RTC Sham of Operating x p e m n ($12.759) 08.8524% 612.740) 130 B1.BsS)

: X
:
: X

Reply App. 00083

-

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 31 of 61

REPORT A
S6L NAME: WATERET FSB LOCATION: NEWARK NJ DEPOSITOR PREFERENCE STATE:
YES

FIN: DATE OF DATA:

8602

1
&=hi:

LIQUIDATION SUMMARY STATEMENT AND DISTRIBWION OF LOSS (In 000's) Uablllllss (Not Subordinaled):

I

Calh and Secudti1-4 Rnidential Loans 2nd Mortgage Loans 5+ Roridmntid Lcdns Consumer Loam Mher Loans Real Emta Ownad Omer &a09 Book h e *
10A 1lA 12A 13A 14A 15A 16A 17A 18A

Sec./Rs1. Dspatm Insumd b p a i b Unlnsumd bpaib Tobl b p a i h Sec./Rsl. U b . Mh.r L i a b l l i kc&LiabiiiUer
0 26A (252.17T 27A (51,970 (971) 28A

----------

0 1,268,540 1.876 1,271.416 948.485 (57.887

---------2.182.014 0 75,041

Non-book Aswb RTC M-T-M Asset Lms Est lndirscl Expensn Admin. Cab ol Payotl Adjusted Asseb Sec~Pref. Claim Available &sob T d i Lors - Sr. Claim

Nm-book Lab.-%. Nm-book Limb.-OUus Adlusbd Uabilihs Sec.Pml. Claim Chim Junior Claim'

---------2,237,955 B48,485 ---------1,289,470 (18.054

----------

----------

---------NET W M S

1,857.943 29A (94a485 JOA 908,455 31A 361,981

---------Net Seniw Claim
1.271.416

Prod 1.271.416 - 32A

PRO-RATA DISTRIBWION OF LOSS AND RECOVERY IN LlOUlDATlON %OF SR. CWMS UPECTED LOSS EXPECTED RECOVERY
938.1 13 1.342 0 909.455

............................................
33A 34A 35A

RTC lor Insured bpaib Mimured bpab Mher Cndilon

............................................
1,289,470 1W.0000X 380,015

1.260.540 1.876 10.M4

00.8524% 0.1476% O.WOO%

361.421 534 18.054

Reply App. 00084

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 32 of 61

REPORT B
SaL NAME: CARTERET FSB
LOCATION: NEWARK NJ FIN: DATE Of DATA: 8602 10131D4

TRLJJSACTION SUMMARY bbiiitisa Psrunrd OrigiMl BV d A u k q u i m d s b Gra8 C u h to kquiror Add: RTC Advances Gra8 RTC Funding hss: P n m i u ~ i . ~ o u n l Net RTC Fundiiq Asset Ratlined by RTC L o u on Retained Asub Net Recowry on Retained Asseb RTC COST SUMMARY 8 . ~ 8.dd.r by OpbOn lyp* 1 G r c a Cdsh to kqulror Recowy on Reelnod Assob Adj. t BV per P M & r s e n r n l o RTC Advmcsa G r o u 0x41 Vmlue on Put Asub R e c m y on Put Asub Ruapmm d Tranakr Volum Adjusbnant D i l l to Olh. h d i l o m (S.c.Ahuc.) lnwmd h p a i b Not Pouing l o kquiror En@y/Erlt F m (81FIIDT Only) AdrniniahWa Cab RTC Sham Bid AmDunt (Incl. 1rrgli.d Asut R r d u m s ) C a t d RDpcumd Tramaslion C a t t RTC d P1yoll o

(In 000's) BRNCHilnd IDRANCH cu ( 1.271.416 1,260,549

1

188

IlB
88 98 108
118

---------------------1,820,977 1,820,077 WINNER various

2.124.423 (303,M:

2.124.423 (303.44

I various
I

I
I

I
I

& n n p m r Payon ** Vninsumd h p o s i b S h l n d Loss

-

288

Actual or lmplmd Pnmum

134.558

t34.999

MnmA.Cmlmyn.ud.k#p.IlD.(mklllCb-rrndkrrq.dg0u

Reply App. 00085

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 33 of 61

REPORT c 2 RTC COST TEST FOR DEPOSITOR PREFERENCE STATE
INBTMTION: CARTERET FSB NEWARK NJ

FIN:
DATE OF DATA:

a602 lOISlIP4

1

LOCATION:

BEFORE PREYIUUS RECEIVED 1 c r r o w ~.poeim ( ~ n d C C ~ U . ~I ~ L ) A ADD OTHER LIABIUTIE8: 2C2 SC2 5C2 8c rd . u. 8c . . ud E L I Borrowlno. L'ibilill..

Loma In Conto. U.b (?).sued)

d Un1nsu.d

Dp 1 8 .oW

PxQ)

NA

HA

6C2 Tom1 LL.blllll.m (IUBTRACT BECURED UABIUTIEB: (BEFORE PREYIUUB RECEIVED)

15C2 W . 0 s :..L .

Awe252,177 51.970

RD R.1.8.vlngs

ofAdrnhl~~.UnCo~m

We 4S1

MAXIMUM DISCOUNT FOR BRANCH PA

leC2 M-T-M LOBS tlm.1. El I7C2 Ind*.ct ex pen..^ E1 m. il . . 1eC2 8.cuod.nd Pr.hn.d Dapolla lOC2 8.su.6 end Pr.krfod Crb. 2OC2 B N E I FREE ASSETS 21C2N.lLo.1 (A-8) 22C2Add: Adrnlmi~u.tiv. C.. o 1

010.425

~ 8 0 . ~ 1 -Payom

II
1,171 2eC2 Sacuod D.poliO P7C2 Pr.btr.d D.polb

UNINBURED CREDITOR. 5SC2OECIPREF UABIUTIE8 RETAINED

- OPllON I

- OPTION I1 - OPTWN Ill - OPTION N

3.242 3.242 5.242 3.242

O; N. ENTIA $0 C - # ~ %0130731 PI M ~T

b2bi6%%T

Reply App. 00086

ZEL EL0 V WV 3 t13atlX $ ~ l l ~ $ 0 6 d 0 1 3 3 W S ~VIIN~C~~JNO~

' N A ' U

UIdM ,."*a-IIY1.L-

mdN0

mdm)

3nNA

rn
llllLU 031 ll

MOO.
a3.lorrCn

3WWA

3AllVNU31lV

.1 -1 3

OEOl 'la I M W 3 Y M OOOLB

1111 3lU

Moo0

I

DYYa-&~Y,.I

!

vlva ssoi YT-I-w

c11u a3m31.i aNv ~tln13ntlls a3socrotld ale

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 34 of 61

Case 1:93-cv-00531-LAS

Document 205-3

Filed 10/19/2006

Page 35 of 61

REPORT E SUMMARY OF BIDS
(in OOO'm)
INSTITUTION: LOCATION.

CARTERET FSB

FIN: