Arizona’s Largest S&L; Seized by Regulators : Thrifts: Phoenix-based MeraBank is the sixth Arizona S&L; to be taken over, leaving only four in private hands.

Federal regulators Wednesday seized Phoenix-based MeraBank, Arizona’s largest savings and loan and the latest victim of the state’s real estate slump.

The Resolution Trust Corp. took over MeraBank after the Office of Thrift Supervision declared that the thrift was operating in an unsafe and unsound condition.

The action comes despite a Dec. 7 pledge by the thrift’s parent company, Pinnacle West Capital Corp., to inject $450 million by March 31 into its troubled subsidiary in exchange for a release from further obligation.

The thrift office said it still expected Pinnacle West, which owns Arizona’s largest utility, Arizona Public Service Co., to comply with the agreement.

However, it said the infusion would still leave MeraBank far short of its capital requirement and said the thrift continued to weaken.

At the end of November, MeraBank was $337 million in the red. With $6.6 billion in assets, it is Arizona’s largest S&L.; It was ranked 29th nationwide at mid-year by Sheshunoff Information Services Inc., an Austin, Tex., consulting firm.

Regulators said all MeraBank branches will remain open for business as usual, operating under a new government-owned thrift called MeraBank Federal Savings Bank. Deposits will be insured up to $100,000 per account.

MeraBank is the sixth Arizona savings and loan to be seized by the government, leaving only four operating privately. The state’s second largest, Western Savings & Loan Assn. of Phoenix, was seized in June and put up for sale in January.