BANKING/FINANCE

Malibu Savings Bank--headquartered in Orange County, not Malibu--is cutting its losses and gearing up for growth, most likely through acquisitions.

Barely a year ago, Malibu was put on the selling block by its owner, U.S. Shelter Corp., a South Carolina real estate development firm. But a tentative sale evaporated when a potential buyer had trouble getting approved.

Now, with new management and a renewed commitment by U.S. Shelter, Malibu is looking to grow, according to Donald C. Headland, who was hired as president in April.

“We’re in the process of putting together a business plan that would bring us some growth,” said Headlund, former head of giant Valley Federal Savings in Van Nuys. “We’re at $180 million in assets, and we would want to see a growth to about $250 million over a period of time.”

Among the S&Ls; that Malibu Savings executives have been looking at is Westco Savings Bank, a Wilmington thrift with about $200 million in assets. Acknowledging that his firm is up for sale, Westco Chairman Michael H. Wallace said that executives of the two S&Ls; have met several times to talk about a merger.

“In this industry, you have to be bigger to compete,” Wallace said. “Consolidation is necessary.”

Though Malibu lost $129,000 in the first quarter, its capital base is stronger than that required by regulators. Headlund said the S&L;, with offices in Costa Mesa and Malibu, most likely could grow by acquiring branches of other thrifts or the thrifts themselves.