Thrift to Open Branches in Latino, Black Communities

Two months after community groups labeled its lending practices discriminatory, American Savings Bank is expected today to open a branch in East Los Angeles and another in July in South-Central Los Angeles as part of an overall effort to improve lending to low-income communities.

Community groups applauded the openings, noting that American’s actions come as other savings institutions are closing branches in such communities. American also joins other major California savings institutions, including Security Pacific National Bank and Wells Fargo Bank, that have boosted lending to the poor and minorities recently.

Nonetheless, community leaders expressed concern about American Savings’ general lending practices to low-income families and minorities.

“American Savings is one of the leading redliners in California,” said John C. Gamboa, executive director of the Latino Issues Forum in San Francisco. “I hope this is a sign that they’re changing their attitudes on redlining.” Redlining is the practice of discriminating against a certain area in providing financial services.

Mario J. Antoci, the Stockton-based thrift’s chairman and chief executive, said the community groups confused American Savings Bank with its troubled predecessor, American Savings & Loan. American Savings Bank, acquired by the Robert M. Bass Group of Texas in late 1988, was formed out of American Savings & Loan.

“What they did or didn’t do has absolutely nothing to do with what we are doing,” Antoci said. In 1989, 31% of its single-family home loans went to low- to moderate-income and minority home buyers, he said.