Cruise Ship Magnate Set to Rescue Foundering CenTrust

A proposed merger of troubled CenTrust Bank with a bank owned by a billionaire cruise ship magnate was announced Wednesday as part of a plan to ward off regulators from the Miami savings and loan.

The non-binding agreement calls for CenTrust and Ensign Bank to begin talks to reorganize under a new holding company. The merger would include a cash infusion from Ensign’s parent, Hamilton Holding Co., which is controlled by Carnival Cruise Lines Inc. principal owner Ted Arison.

The merger hinges on several conditions, including federal approval of CenTrust’s plans to sell 63 of its 71 branches to Great Western Bank of Beverly Hills.

In a separate development, federal thrift regulators placed severe restrictions on the operations of Santa Barbara Savings & Loan Assn., the main thrift subsidiary of Financial Corp. of Santa Barbara. Financial Corp. said the restrictions were imposed because the thrift is undercapitalized under federal standards.

The restrictions prohibit the thrift from all new lending and investment activity, accepting uninsured deposits or paying dividends on its stock.