UnionFed Financial Sells Branches

UnionFed Financial Corp., a savings and loan holding company that has struggled through six years of heavy losses and near failures, said Monday that it completed the sale of 13 of its 14 branches for $6.9 million to Glendale Federal Bank.

The parent company of Union Federal Bank sold $820 million in deposits along with a similar amount of cash and loans, including its entire portfolio of single-family home loans.

Depending on how those loans pay off, according to the sale agreement, UnionFed may be entitled to an additional payment from Glendale Federal. UnionFed refused to disclose how much that payment could be.

The Brea holding company also refused to disclose how many employees were laid off and whether it would move its headquarters back to Los Angeles, where its lone remaining branch is now located. It moved to Brea in 1990.

Glendale Federal said it has offered jobs to all but a few of Union Federal’s 110 employees at the 13 branches.

Within three months, Glendale Federal expects to close Union Federal’s Anaheim and Encino branches and consolidate accounts in nearby GlenFed branches. It will continue to operate the remaining five Orange County and six Los Angeles County offices.