Regulators Receive Report on Butterfield

The Downey Savings & Loan Assn. executives hired to manage Santa Ana-based Butterfield Savings & Loan Assn. after it was seized by federal regulators Aug. 7 have submitted their 90-day progress report to the San Francisco branch of the Federal Home Loan Bank Board. The report will remain confidential for now, a spokesman for the executive team said Thursday.

In addition, the Downey team’s three-month management contract has been converted to an indefinite term as the executives from the Costa Mesa-based S&L; try to return Butterfield to solvency, an FHLBB spokeswoman said. Among the S&Ls; assets are a Wendy’s hamburger franchise territory, more that a dozen Wendy’s restaurants and Love’s Enterprises Inc., a money-losing barbecue restaurant chain.

Butterfield grew from $100 million in assets in 1982 to $820 million in assets in 1984. But it marked up quarterly losses totaling $42 million in two years. By the time federal regulators declared it insolvent, Butterfield had $802 million in assets and a deficit net worth.