BANKING / FINANCE

S&L; Changing Its Stripes: Executives at Beverly Hills Federal Savings Bank in Laguna Hills have taken another step recently on the way to their ultimate plan of converting the savings and loan to a bank.

They changed the name of the S&L; to Beverly Hills Business Bank FSB. Those initials at the end identify it as a federal savings bank, which means it is still an S&L; even though its new name makes it sound like a commercial bank.

But eventually, the thrift will be converted to a bank, officials there have said.

The S&L; was seized in 1985 by regulators, who operated it for nearly four years before selling it on the last day of 1988 to Michigan National Corp., a bank holding company outside Detroit.

In December, the holding company hired Edward H. Sondker, a lawyer and 15-year veteran banker, as president and chief executive of the S&L.;

He and a new management team have started a corporate banking division and are redirecting up to 30% of the thrift’s $1.3 billion in assets toward commercial banking activities, primarily business lending.

The main reason the thrift hasn’t sought a banking charter is because it has so many tax benefits as a thrift, Sondker said. Previous losses from its collapse and the federal assistance Michigan National received to acquire the failed institution makes it economically unwise to change charters for a few more years, he said.