Great Western Bargains for Another Florida Thrift

Great Western Financial on Friday acquired yet another failed thrift in Florida, taking on 53 branches and $1.8 billion in deposits of the former AmeriFirst Federal Savings Bank in Miami.

Great Western paid a modest premium of $27.5 million, or about 1.53%. The cost to taxpayers of AmeriFirst’s failure--caused by losses on such investments as junk bonds and real estate--was projected at $806.7 million by the federal Resolution Trust Corp., the agency that is mopping up the nation’s savings and loan mess.

The Beverly Hills thrift, parent of Great Western Bank, has been on a torrid acquisition pace in Florida the past 21 months, acquiring $8.2 billion in deposits and 238 branches of seven Florida institutions. Most formerly belonged to failed thrifts, such as CenTrust Savings and Gibraltar Savings.

“It’s a buyer’s market and we’re just taking advantage of the opportunity,” said Ron Finch, Great Western senior vice president who heads the thrift’s Florida operations.

With 196 branches and $9.2 billion in deposits, Great Western now ranks as the fifth-largest financial institutions in Florida, where its main competition is from commercial banks. Great Western is the nation’s second-largest thrift with $39 billion in assets.

Great Western was one of six institutions bidding for AmeriFirst. The other names were not disclosed.