Mission Savings and Loan Association in Riverside, Calif., agreed last week to be bought by a consumer finance company, Central Financial Acceptance Corp.
Based in Commerce, Calif., Central Financial specializes in lending to low-income Hispanic people. The company offered about $4.7 million for $47 million-asset Mission Savings and plans to try to "bank the unbanked" by opening thrift branches in its existing offices.
"We look forward to utilizing our affiliation with CFAC to offer banking services to CFAC's customers, many of whom are underserved by existing financial institutions in their communities," said Donovan P. Ternes, Mission Savings' president and chief executive officer.
No layoffs are expected as a result of the transaction, which is expected to close in five to 10 months. Mr. Ternes is expected to remain president and a member of the thrift's board.
Central Financial also said it has reached an agreement to install cash dispensing machines in 10 Southern California Kmart stores. The machines give customers access to cash from an established line of credit using the company's Efectiva card.