Home Savings drops school and government accounts

YOUNGSTOWN — Home Savings and Loan, which has been struggling with disappointing earnings and sagging stock values, said business conditions are forcing it to drop the accounts of local schools and governments.

Boardman and South Range schools are among those that are in the process of switching banks. Home Savings is giving the schools until Aug. 11 to find a new place for their money, but two the two schools are acting more quickly.

Doug McKay, Home Savings’ top official, would not be interviewed for this story, a company spokeswoman said. However, he said in a news release that Home Savings would rather focus on its retail deposits and loans because the accounts with the schools and governments are more expensive to maintain.

“Along with this and other initiatives, we are doing all we can to manage the impact of this economic slowdown and hope to resume our growth strategies shortly,” said McKay, who is chairman and chief executive of United Community Financial Corp. in Youngstown, the parent company of Home Savings.

For more information, see Wednesday’s Vindicator or www.vindy.com.