Investors Are Hot For Florida Thrifts

Lower interest rates have rejuvenated the savings and loan (S&L) industry, and thrifts that have become stockholder-owned institutions are finding themselves susceptible to takeovers. On August 2, 1985, the limit on single-stockholder shares in S&Ls expires, and investors are gearing up to increase their holdings. Much of the action is focused in Florida, whose retirement community and growing economy have created a thrift industry with $67.2 billion in deposits. In addition, Florida's liberal banking laws could draw out-of-state banks and S&Ls to its market. The $1.7-billion Atlantic Federal Savings & Loan Association is expected to be a likely takeover target in the anticipated consolidation of Florida's thrift industry. However, federal regulators may force out-of-state investors to buy troubled S&Ls before other takeovers are approved, and observers believe many of the available thrifts are overpriced because their portfolios contain low-interest mortgages.