HomeFed Lays Off 183 Workers in Wake of 2nd-Quarter Loss
HomeFed Bank has laid off 183 employees, or 3.7% of its work force, over the last two weeks in efforts to trim expenses in the wake of its $108-million second-quarter loss.
The savings and loan said 100 of the layoffs were a direct result of plans to scale back single-family loan originations. Another 60 of the layoffs were due to HomeFed’s closing its 12-office escrow division and another 23 due to cutbacks in its commercial banking operation.
HomeFed would not rule out further layoffs but said none are now planned.
HomeFed President Robert Adelizzi said the cutbacks were linked to HomeFed’s plan to “trim down the volume of our loan originations. . . . Instead of $6 billion in total loan originations, it may be closer to $3 billion” next year, Adelizzi said.
Adelizzi also said HomeFed intends to control its growth, keeping its asset level stable at the existing $19-billion level.
HomeFed’s second-quarter loss last month caused a significant reduction in its capital, the cushion that protects it against losses. As a result, the thrift announced plans to close its out-of-state loan offices, to stop making commercial real estate loans and to trim expenses.
