County S&Ls; Tentatively Agree to Be Sold

Two county thrifts--Pioneer Savings & Loan in Newport Beach and Constitution Federal Savings & Loan in Tustin--have tentatively agreed to be sold, according to S&L; officials and documents.

Spring Mountain Escrow Group--headed by Newport Beach financier Frank O’Bryan--has filed an application with the state Department of Savings and Loan to buy Pioneer from Rancho Mirage home builder James F. Deane.

Pioneer has not had a profitable year since it opened in 1985. The S&L;’s assets dropped to $15 million at the end of June from a high of $22.2 million in December, 1986.

Officials for Pioneer and Spring Mountain declined comment. It was learned, however, that Anne Bacon, formerly of Downey Savings & Loan and Butterfield Savings & Loan, would take over as president of Pioneer under the purchase agreement.

Constitution Federal has tentatively agreed to merge with Sherman Oaks Savings Bank. Edward Jones, president and chief executive of Sherman Oaks Savings, said the deal still needs regulatory approval.

“It hasn’t been publicly announced, because we still haven’t filed for regulatory approval, though we have discussed it with regulators, and we believe we have the necessary assets,” Jones said. “The company has been looking for a suitable acquisition candidate to grow.”

Constitution posted its first profit in 1987 after six consecutive years of losses, totaling $6.7 million. But the $1.4-million profit stemmed entirely from the sale of two branch buildings, rather than existing operations. It lost $276,000 in the first six months this year.

Constitution had $72 million in assets at the end of June, $67.6 million in deposits and 26 employees.

The bank has three branches: Tustin, Monterey Park and Cypress.

The bank is owned by more than 500 shareholders, including New York tax shelter specialist Burton H. Trupin.

Sherman Oaks Savings was created in 1987 when its parent company, Sherman Oaks Financial Corp., bought Westmark Savings Bank in Newport Beach and renamed the institution.

It had assets of $45 million at the end of June, deposits of $42.7 million and eight employees and one branch in Sherman Oaks in the San Fernando Valley. The bank’s holding company is owned by a group of 35 shareholders, including financier Stanley I. Glickman.