PASADENA, Calif. -- Cenfed Financial Corp. said its Cenfed Bank unit agreed to sell $127 million in deposits to California Federal Bank.

In a press release, Cenfed said California Federal will buy the deposits, which are all of the deposits in four of Cenfed's California branches, and will pay a purchase premium on the nonjumbo accounts.

The company said California Federal also will buy Cenfed's Atascadero, Calif., branch. which is one of the four having its deposits sold.

Cenfed said the purchase premium it will receive should offset one-time charges associated with terminating leases and writing off unamortized goodwill and fixed assets.

The company said the agreement should close late in the third quarter or early in the fourth quarter and is contingent upon getting approval of the Office of Thrift Supervision.

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