In 1969,
Old Stone Corporation was formed as the holding company for the savings bank. In the early 1970s the bank adopted as its mascot and "spokesperson" cartoon character
Fred Flintstone, who would say in commercials "Yabba-dabba-doo, love that Old Stone Bank!" The bank's ATMs were called "Ready Freddy". Old Stone Bank collapsed in the 1980s when the federal government convinced it to take over two failed
savings and loan institutions, but reneged on its promise that it would not hurt the bank to do so. In 1992, Old Stone filed a lawsuit against the government alleging breach of contract. They were awarded $192 million in 2004, but an appeals court reduced the award to 74.5 million, and the
Supreme Court declined to hear a further appeal. The savings bank was seized by the
Office of Thrift Supervision on January 29, 1993. In July 1994, Providence-based Citizens Bank, a subsidiary of
Citizens Financial Group, acquired all of the deposits and some of the offices of Old Stone from the
Resolution Trust Corporation for $133.6 million. As a result of the merger, Citizens closed 11 of the 28 of the former Old Stone branches along with 7 Citizens branches since there was extensive branch overlaps with the two banking organizations.
Interstate expansion In its first expansion move, Old Stone Corporation acquired the ailing
Seattle,
Washington-based Citizens Federal Savings and Loan Association for an undisclosed amount with the assistance of the
Federal Savings and Loan Insurance Corporation. This federal bailout had cost the tax payers $78.7 million. The new acquisition was renamed Old Stone Bank of Washington. Five years later, Old Stone sold its Washington savings bank to
Washington Mutual in June 1990 for $10 million. ==Old Stone Bank Building==