Rancho Bernardo Bank Chief Resigns, Organizes Buyout

Jim Gough, the savings-and-loan industry consultant who has served as president of Rancho Bernardo Federal Savings Bank since the summer, resigned Tuesday to form an investment group that hopes to buy the troubled institution from the federal Resolution Trust Corp.

Gough said his resignation, effective Friday, was “designed to eliminate any possible conflict of interest” as his group prepares to make a bid for Rancho Bernardo Savings when federal regulators auction it off in 1991.

Federal regulators seized the savings bank Oct. 26 after determining that its tangible capital had fallen to a negative $808,953. The institution, which has $119 million in assets, reopened that same day as a newly chartered federal savings bank, with Gough still serving as president.

The unexpected seizure dashed Gough’s plan to take control of Rancho Bernardo Savings by pumping more than $6.5 million into it. Gough became involved with the financial institution early this year through the Office of Thrift Supervision’s San Francisco-based Capital Enhancement Group, which attempts to “marry” investors with S&Ls; that need capital.

Gough and regulators initially thought that Rancho Bernardo Savings would be able to meet minimum capital guidelines with Gough’s planned cash infusion. However, the institution’s financial problems proved to be deeper than expected, and federal regulators seized it before Gough’s group made its investment.

Federal regulators have said that the institution’s $5 million in losses during recent quarters was generated by a troubled real estate development that predated Gough’s arrival.

Gough said Tuesday that his investor group, which has already raised $2.5 million, stands a good chance of gaining control of Rancho Bernardo Savings when regulators place it on the auction block next year.

Gough said his group is familiar with the S&L;’s assets because of his role as president.

“I don’t think anybody knows Rancho Bernardo Savings from its asset side as well as my group does,” Gough said.