Sewickley Herald

              Serving:
Aleppo
Beil Acres ' Edgeworth Glenfleld Haysville Leet Township Leetsdale Osborne Sewickley -Sewlckley Heights Sewickley {4ills
Vol. 86 No. 51®
The Sewickley
Herald
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f^ARK OP INT£G»TY
Wednesday, December 20, 1989
19 Gateway Press Newspapers
suburban PITTSBURGH'S LARGEST CIRCULATION
50 Cents
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I wo views of Christmas
SACRED AND’ SECULAR come together this week as the valley prepares for on a Christmas tree at Old Economy. Belsnickel was an alter ego for Santa Claus, ChristniasphMonday. At left, Conor Platt, Bethany Csensich and Andrea Hopkins the bringer of coal and dispenser of lashes to naughty children. Thejiocal Jewish maneuver the figure of St, Joseph into place for an outdoor creche at St. James community is celebrating Hanukkah beginning on Friday, for more on that see Catholic School. At rightv Belsnickel, a figure but of German Christmas tradition, page 27.
assists Uttle Abby Hager and docent Mary Lou Golembeski in placing an ornament	-
First Federal: future uncertain here
By Tony Soltis
, Fijrst F.ederal Sayings and Loan dfficials say its still too early to tell whether Sewickley will be looking at vacant office space at the'eoMei’ of Broad and Thorn-streets.	"
The merger between the Pittsburgh thrift and Pittsburgh National Bank could lead to a phasing out of the local branch, because PNB already has an office at the corner of Beaver and Blackburn.'
However, it might be two years before any action could take place. The merger, still subject to regulatory-approval, will .take about two years to complete, says Anita Wolk, director of corporate communications at-First Federal.
First Federal, Pittsburgh’s' largest savings and loan, says it arranged a merger with PNiB in reaction to new federal capital requirements.
James Mastroianni, manager of the Sewickley branch, says news of the merger was a surprise. “We just found out last Monday (Dec, 11).”
“The terms of everyone’s accounts will Stay the same,” promises Ms. Wolk. “No (customers) need to do anything.,. Just sit back and
wait. Then enjoy more access.”
Although First Federy says it has shp\vh a profit in each of its 55 years; new federal regulations require thrifts to show a tangible, capital (real assets minus ' iiEtbilities) tantamiount to at least 1.5 percent of assets. They also must show core capital totaling three percent of their assets.
The new rules, which went into effect Dec. 7, were designed to fortify thrifts against the huge losses and scandals that have scarred the savingS-and-loan industry. But even the strongest savings and loans in the nation have trouble in the capital market aiid could have difficulty in satisfying the new regulations.
“Obviously, we’re not happy about it,” says Ms. Wolk. She acknowledges the rules have positive aspects, but mainly one negative one. “It took away good will. And the only reason we had good will was due to mergers and the industry had asked for those.”
“Good will” is a term used by thrifts to count their negative net worth as positive capital when it resulted from mergers with each other, ,which they were encouraged to do in the early ’80s.
Ms. Wolk emphasizes, that First Federal, the third largest
thrift in Pennsylvania, was riot forced into seeking a merger, but merely sought the best long range situation. She confirnis the. bank was a victim of the regulations, “but rather than waiting, we Went to the top... It’s the best situation for workers, customers and taxpayers.”
James C. McDonough, First Federal CEO, said Pittsburgh National was chosen as a merger ■partner because of its strong capital “ base and outstanding reputation. PNC is the largest bank holding company in the state.
The merger is unique in that it requires no government assistaiice, icash payment or issuance of stock because the thrift'is a solvent mutual institution and has no shareholders.
Pittsburgh National, the largest subsidiary of PNC Financial Corporation, will then hold approximately 25 percent of the Pittsburgh region’s retail market, about the same as Mellon Bank.
First Federal lists $3 billion iri total assets, which are primarily comprised of mortgage-related products. The thrift has more than 700 full-time and 200 part-time employees and operates 64 branches in 12 counties in western Pennsylvania.
V '■ • (
In council
Sewickley Hills discusses emergency management
By Tony Soltis
Sewickley Hills wants an emergency management plan in case of a disaster, but council postponed action until they reorganize in January.
Council President Thomas Klixbull tabled discussion on the plan because of the voluininous amount of work that is needed to complete the task, even though, Councilman Raymond Ott Jr. volunteered the planning commission for the job.
Solicitor Alvin Dillman, who had been asked to prepare an ordinance to adopt the plan, said preparing an ordinace was easy, but designing such a plan is difficult, For the plan to be complete, an inventory of all available equipment, owned both publicly and privately, needs to be taken,
“I don’t think you should be paying me at my rates to call somebody up and ask if (he’ll) get out of bed in an emergency,” Dillman said.
The complexity of such a plan as outlined by Allegheny County
for a borough of Sewickley Hills’ size, produced several quips by Dillman: “There are more jobs called for than there are residents,” and “If everyone is given a responsibility and shows up, that could be our evacuation p an.”
Because council is legally responsible in case of a disaster, Councilman Carl Boyer asked if. the plan could be adopted and then later implemented.
Dillman told him that adopting a blank plan probably would not satisfy council’s legal responsibility.
Council voted unanimously to accept the 1990 budget, which does not call for any shift in the borough tax rate.
Two and one half mills will remain the real-state tax — even though the 1990 budget of $90,600 is about $17,000 higher than the current budget.
The increase in the new budget includes monies for road improvement that were not spent in 1&89, according to Maria Carlini, the borough secretary.
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MONROEVILLE
247-1600
373-3333
Just off Exit f/6 fa Turtipilco
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586-2886	I
856-2886	I
776-2933
Rt.8 Just 10 Minutes North off Pa Turnpike Exit iiA