Insolvent Santa Ana Thrift Up for Sale

Perpetual Savings Bank, an insolvent Santa Ana thrift seized by federal regulators almost 18 months ago, is being offered for sale by the Federal Home Loan Bank Board along with nine other ailing S&Ls; around the nation.

With only $38 million in assets, the tiny, two-branch Perpetual is one of the smallest troubled thrifts being marketed in the second phase of what the bank board calls its expedited resolution program.

Under that program, regulators streamline the often complex process of selling an S&L; and offer substantial financial assistance to healthy thrifts that are willing to take over the assets of an insolvent institution.

Two of the nation’s largest problem thrifts, Butterfield Savings in Santa Ana and American Savings of Stockton--whose parent, Financial Corp. of America, is headquartered in Irvine--were sold in the past two months in the first phase of the expedited program, which some wags refer to as “McDeal.”

Perpetual was seized by regulators March 18, 1987, and since then has been run by a management team hired by the bank board. In addition to its headquarters in Santa Ana, it has one branch near Los Angeles International Airport.

A spokeswoman for the Federal Home Loan Bank of San Francisco said the bank board will be accepting applications from potential bidders for Perpetual and the nine other thrifts through Friday and then will make detailed financial information about the S&Ls; available so that formal bids can be submitted by Nov. 14.

If any bids are accepted, the bank board anticipates completing the sales within 35 days.