Security Pacific Buys Last Big Failed S&L; in Arizona

Security Pacific Corp., signaling that it is back in the hunt for large failed thrifts, late Friday said it paid $35 million for the last major one available in Arizona: Southwest Savings & Loan in Phoenix.

The Los Angeles-based banking firm gets $1.4 billion in deposits and 47 branches from the Resolution Trust Corp. under the deal. Security Pacific early last year was one of the most active institutions in bidding on and buying failed savings and loans, acquiring such California thrifts as Gibraltar Savings and Mercury Savings.

Although the bank bought a modest-sized Arizona thrift this year, it has been relatively inactive lately while its executives deal with increasing loan problems and dismantle its merchant bank.

Security Pacific Vice Chairman Jerry A. Grundhofer said he believes that the bank now ranks second or third in deposits in Arizona, behind Valley National Bank and close to Los Angeles-based rival First Interstate Bancorp.