RTC To Sell 56 HomeFed Bank Branches
SAN DIEGO (AP) _ The Resolution Trust Corp. will sell 56 HomeFed Bank branches in central and northern California, marking the government’s first moves to liquidate the failed thrift’s retail network, officials said.
The branch sales, expected to be final within 30 days, will fetch the government a premium of about $34.7 million above the roughly $1.6 billion in deposits at the branches, RTC officials said Wednesday.
The deals call for five buyers to assume all deposits at the branches. Customers won’t see any changes in the terms and conditions of their accounts, including interest rates paid, the RTC said.
San Diego-based HomeFed Bank, with more than $13 billion in assets, became the largest savings and loan failure in history when it was seized by the government last July. It has remained open under RTC management.
The government said the five winning bids were the least costly among 73 offers submitted. The total premium for the deposits is 2.1 percent, about average these days for failed thrifts, said consultant Barry Rubens of Santa Monica-based California Research Corp.
″It’s a fair price,″ he said.
The sales will leave HomeFed with 144 branches and deposits totaling $5.4 billion.
The largest single bloc of branches - 24 offices in several Bay Area communities with $655.9 million in deposits - will be sold to Home Savings of America. The Irwindale thrift will pay a premium of $11.7 million for the branches and deposits.
U.S. Bank of California, a unit of U.S. Bancorp of Portland, Ore.; Bay View Federal Bank of San Mateo; Los Angeles-based First Interstate Bank of California; and Watsonville Federal Savings & Loan will buy the other 32 branches.
Home Savings and U.S. Bank of California plan to resell several of the newly-acquired branches to other financial institutions, the RTC said.