Beach Savings Bank Seeks OK for Stock Offering

Beach Savings Bank in Huntington Beach has asked regulators to approve a $3-million stock offering that will allow it to nearly triple the amount on deposit. The offering of 300,000 shares of common stock would be added to the 200,000 shares outstanding and give the thrift a $5-million capital base.

Under state regulations, the savings and loan, which has $25 million in deposits, can bring in only $3 million more with its current capital base of $2 million, according to Alfred I. Puchner, president and chief executive. With $5 million in capital, the thrift could take in more than $70 million in deposits, he said.

Beach Savings has an application pending before state and federal regulators to buy two branches of Fullerton Savings & Loan Assn. The branches, in Newport Beach and Fountain Valley, have a total of $25 million in deposits, he said.

In addition, Puchner, who owns 11.5% of the stock, and several other shareholders are seeking permission to buy some of the new stock. New rules require owners of 10% or more of a thrift’s stock to seek federal regulatory approval for the purchase of more stock, Puchner said.