Foothill Group Expects to Spin Off Its Thrift

The Foothill Group, a financial services firm with headquarters in Agoura Hills and Los Angeles, said it expects Thursday to spin off its troubled thrift subsidiary to Foothill’s shareholders.

The spinoff is to be completed upon the sale of $14 million of preferred stock in a new thrift-holding company called Pacific Crest Capital Inc., which will be a separate, public company.

Under the previously announced spinoff of Foothill Thrift, which has been dragging down its parent company’s earnings, Foothill Group stockholders are to receive one common share of Pacific Crest for each 15 common shares of the Foothill Group. Also, $14 million of orders were received for preferred stock to be issued by Pacific Crest, money that would finance the thrift as it tries to get through California’s weak economy.