LOS ANGELES - Foothill Group Inc. said its board has approved the formation of a thrift holding company that will be spun off to shareholders.

The subsidiary, Foothill Thrift and Loan, currently has $16.2 million in equity. Foothill Group said the holding company should raise $10 million to $15 million in new equity, much of which would go toward improving capital ratios.

After the spinoff, the holding company would have no further connection with Foothill Group, which has diversified financial interests. Foothill Thrift specializes in commercial real estate financing for small businesses and entrepreneurs. The briefs were compiled from staff and wire reports.

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