BANKING / FINANCE : American Savings Bank Touts Loans at East L.A. Branch

American Savings Bank has taken some heat over its alleged lack of community involvement, which is required under the federal Community Reinvestment Act.

But the Irvine thrift began beating back the criticism by opening two branches in poorer areas of Los Angeles, one last year in East Los Angeles and one last January in the city’s Crenshaw District.

Now it is touting the yearlong performance of its East Los Angeles branch.

That branch, which opened May 5, 1990, has made more than 1,500 home loans totaling about $220 million to residents in the area. The funding exceeded the S&L;’s goals by 65%, the thrift said.

The branch has only $9 million in deposits, but American spokesman Paul Wood said the branch is working at improving the deposit base. Typically, American and other large S&Ls; want their branches to hold more than $40 million in deposits to make them economically viable.

The opening of the branches is part of the thrift’s neighborhood partnership program, which is designed to meet the financial needs of minority and low- to moderate-income residents living near those branches.

Last year, more than 35% of American’s new home loans went to minorities and nearly 40%--with some overlap--were made to low- and moderate-income home buyers.