Great Americans Agree

Great American First Savings Bank of San Diego will pay $2.1 million to Great American Bancorp of Century City to relinquish the use of the name of its subsidiary, Great American Bank. Both financial insitutions said the deal was made to avoid market confusion over the similar names.

The potential for confusion has existed since 1982 when Great American First Savings Bank changed its name from San Diego Federal Savings and Loan Association. At the time, the S&L; was “unaware” that the Great American name was already in use in Los Angeles, spokesman Ken Ulrich said.

The possibility of confusion over the names increased over the past year after Great American First Savings Bank acquired Los Angeles Federal Savings and Home Federal of Arizona, which operated a combined 24 branches in Los Angeles and Orange counties.

The payment is not a settlement of litigation, but a “normal transaction,” Ulrich said. Great American Bank Chairman Jack Sweeney said a new name for his one-branch bank has not yet been selected.

Great American First Savings Bank has $13.5 billion in assets and Great American Bank has $100 million. Great American First Savings will amortize the cost of the $2.1 million payment over 25 years.