Canadian Firm Has 8.6 Percent of GlenFed, May Seek Control
GLENDALE, Calif. (AP) _ One of Canada’s leading trust companies, Royal Trustco Ltd. of Toronto, said Friday it has acquired an 8.6 percent stake in GlenFed Inc., the fifth- largest thrift holding concern in the United States.
The announcement caused GlenFed’s stock to rise $1.25 to $25.62 per share for the day. The company has 21.5 million shares outstanding.
In a filing with the Securities and Exchange Commission in Washington, Royal Trustco said it took the action ″in the context of an overall review of the United States financial-services industry, including the thrift industry in general and particular institutions.″
Royal Trustco said the review ″could include the possibility of seeking to acquire a controlling interest in a United States thrift institution.″
GlenFed had no comment beyond acknowledging Royal Trustco’s stake and noting that the Canadian company didn’t specifically indicate it may seek control of GlenFed, the parent of Glendale Federal Savings & Loan Association.
Royal Trustco spokesman Bill Inwood said his company hasn’t exceeded the 5 percent ownership limit in other U.S. thrifts. Under SEC regulations, an investor doesn’t need to disclose ownership below 5 percent.
Canada’s trust companies are similar to U.S. thrifts.
Royal Trustco, with $22 billion in assets, operates an extensive branch system and is heavily involved in mortgage lending.
For the nine months ended Sept. 30, Royal Trustco had a profit of $143 million on revenues of $1.6 billion.
GlenFed, with $19.5 billion in assets, posted an increase in profits of nearly 15 percent for its first quarter ended Sept. 30.
Earnings for the period rose to $37.8 million, or $1.72 per share, on revenues of $490.9 million, despite slower real estate activity and rising interest rates that reduced its spread - the difference between what it pays for funds and what it charges for loans.
GlenFed has 176 savings and loan branch offices in California and Florida, plus commercial lending, mortgage banking, title, insurance, real estate and discount stock brokerage activities in 11 states.