P.M. BRIEFING : Deal Canceled, Valley S&L; Says

Valley Federal Savings & Loan Assn. said today that Imperial Corp. of America has canceled its deal to buy five Valley Federal branches because it needs to improve compliance with Community Reinvestment Act (CRA) requirements.

Valley Federal, which has performed poorly in recent quarters, announced Aug. 18 it had agreed to sell the branches, all in the San Joaquin Valley: two in Fresno, two in Visalia and one in Hanford.

Imperial, parent of Imperial Savings, said it will improve compliance with CRA requirements before it tries to make the acquisition again. The CRA rules were upgraded in the recent Financial Institutions Reform and Recovery Act.

“CRA and low-to-moderate income housing financing will be an increasing responsibility of the thrift industry,” said Neil Pont, executive vice president for retail banking at Imperial Corp., of San Diego.