Great American Shareholders Vote to Merge
Great American First Savings Bank shareholders on Wednesday overwhelmingly voted to merge the San Diego-based thrift with Los Angeles Federal Savings Bank, a North Hollywood-based S&L; with $652 million in assets, leaving federal approval as the only remaining barrier.
The merger would give Great American a “strong foothold” in Los Angeles and Orange counties, which make up the “fastest-growing metropolitan area in the country,” according to Great American Chairman Gordon Luce, who said federal approval of the merger is expected “shortly.”
With the addition of Los Angeles Federal’s 16 branch offices--which will be operated as Great American First Bank, Los Angeles Savings Division--Great American will 56 offices in San Diego County, 25 offices in Los Angeles County and 22 offices in Orange County.
Wednesday’s vote followed upon the heels of the Federal Savings & Loan Insurance Corp. (FSLIC) Friday decision to approve Great American’s $102-million purchase of Home Federal Savings & Loan of Arizona. That approval required Great American to take control of Hacienda Federal Savings & Loan in Oxnard, with assets of $33.4 million, and First Federal Savings & Loan of Redding, with $38.5 million in assets.
That acquisition deal and the merger with Los Angeles Federal would make Great American the nation’s 10th largest S&L; with more than $10.6 billion in assets and 161 offices in California and Arizona.
Merger ‘Made in Heaven’
The merger, described earlier by Los Angeles Federal President Charles B. Shryock as “a marriage made in heaven,” grew out of discussions which culminated last October when directors of the two thrifts agreed to the merger.
Los Angeles Federal Chairman Jack Baillie will join Great American’s board and Shryock will become a Great American vice president.
When federal regulators issue what Luce described as a perfunctory approval, Los Angeles Federal, a mutual association which is owned by its depositors, will become a public company which will then be merged with Great American. On Wednesday, Luce described the Home Federal of Arizona acquisition as “a very successful acquisition . . . purchased at the right time for the right price.”
Although Luce said Great American is not actively seeking any further acquisitions or mergers, he did indicate that “the door is always open” for appropriate deals which would expand Great American’s banking business into contiguous areas.
