BANKING / FINANCE : Irvine City S&L; Decides to Switch and Stop Fighting

Irvine City Savings & Loan has changed its name to Irvine City Bank and switched to being a federally chartered institution from a state-chartered one.

While the move will allow the S&L; to offer certain banking services it couldn’t offer as a thrift, it also is an attempt to solve an old problem that has plagued it since it opened in 1984.

Located in a city that has seen its share of thrift disasters, Irvine City S&L; found that its name, or at least a close approximation of it, frequently ended up in newspaper and broadcast headlines.

When Consolidated Savings Bank fell to regulators in 1986, for instance, headlines typically blared something to the effect that “Irvine S&L; Fails.” And Irvine City’s depositors quickly called to find out what was going on.

James P. Giraldin, the S&L;’s president, and Douglas Weeks, his predecessor, were quick to call the media and point out the problem. Every now and then, however, a similar headline called unwanted attention to Irvine City S&L.; The most upsetting for Giraldin occurred last year with the collapse of Lincoln Savings & Loan, an “Irvine S&L;” that could become the nation’s most costly thrift bailout with an estimated cost to taxpayers of $2 billion.

“The very name itself, ‘savings and loan,’ has become a liability, making it difficult for all savings and loans to successfully compete with other financial institutions,” Giraldin said.

The name and the charter changes come as Irvine City Bank opens its third office in Irvine. The new branch at Heritage Plaza, like the others, will continue to provide home mortgages, which make up 95% of its portfolio, Giraldin said.