Golden West Financial Takes Title To Florida Thrift with 15 Branches
OAKLAND, Calif. - Golden West Financial Corp. said it has taken title to the common stock of Beach Federal Savings and Loan Association of Boynton Beach, Fla., which Golden West had been managing since 1989 under an agreement with federal regulators.
Golden West renamed the thrift World Savings and Loan Association of Florida and injected $100 million in capital, bringing core capital above 6% of assets and in compliance with regulatory requirements.
The Florida unit has 15 branches and $1.5 billion of assets. Golden West owns World Savings and Loan Association of Oakland, the nation's fourth-largest thrift, with $23 billion of assets and 212 offices in eight states.
Golden West agreed to take title to Beach Federal when a $1.06 billion promissory note from the defunct Federal Savings and Loan Insurance Corp. was paid. The Federal Deposit Insurance Corp., manager of the FSLIC resolution fund, said in May that it would prepay the note in July.
"The new World Savings of Florida subsidiary brought with it $1.5 billion in savings deposits, offset by approximately $1.4 billion in cash and $121 million in one-to-four-family residential mortgages," said Herbert M. Sandler, chairman and chief executive officer of World Savings.
He said that the acquisition will have a positive effect on earnings "over time," but that for two to three quarters "earnings may be slightly less than what they would have been without the addition of World of Florida."
"Future earnings will also be positively affected by favorable tax consequences resulting from the Beach acquisition," he added.