FirstFed Financial Corp., Santa Monica, Calif., said it has promoted president and chief operating officer Babette E. Heimbuch to chief executive.
Ms. Heimbuch will succeed William S. Mortensen, who is retiring after 41 years with the parent of First Federal Bank of California. Mr. Mortensen, 63, will remain chairman of the thrift holding company.
Ms. Heimbuch is to assume her new title Jan. 1. The 48-year-old executive joined FirstFed Financial in 1982 as chief financial officer, just before the company converted from a mutually owned savings and loan association to a public company.
She has been in her current post since 1989.
FirstFed, which has $4 billion of assets, had announced Mr. Mortensen's plan to retire as CEO earlier this year.
In an interview Wednesday, Ms. Heimbuch said that FirstFed would remain a "typical" savings and loan, dedicated to single-family residential mortgage lending but with an additional emphasis.
"We will not give up our residential lending focus," she said, "but we are going to put more emphasis on commercial, industrial, and small- business lending. Although we are becoming more bank-like, it is going to take some time and momentum."
The thrift holding company plans to acquire some branches during the coming year, she added.
"Acquiring other banks is probably the best way for our institution, or any bank, to gain knowledge and incorporate different skills into our culture," she said.
Ms. Heimbuch added that Mr. Mortensen, who has been chief executive since 1968, had managed to make the changes needed to help FirstFed grow.
"He did not stand still and have the thrift become obsolete," she said. "It is to his credit that FirstFed is one of the few existing thrifts left standing in this community."
In a statement, Mr. Mortensen said the thrift holding company is well- positioned for the future and that Ms. Heimbuch's leadership would serve it well in the years ahead.
FirstFed Financial has 25 retail offices and four regional loan centers in Southern California.
