Long Beach selling deposits to become mortgage bank.

July 06, 1994, 1:00 a.m. EDT 1 Min Read

ORANGE, Calif. -- Long Beach Bank announced Friday that it has agreed to sell all of its $565 million of deposits to Home Savings of America. This sale is part of a plan by Long Beach Bank to reorganize as a mortgage banking company.

When the sale is finalized, Long Beach Bank's branches in Long Beach will become branches of Home Savings of America, and the Long Beach Bank branches in Beverly Hills, Pasadena, Tustin, and Thousand Oaks will be consolidated with nearby Home Savings branches in those places.

Long Beach Bank expects that the stock of a parent holding company of Long Beach Mortgage Co. will be distributed to Long Beach Bank's shareholders.

Long Beach Bank said it has a 12-year record of profits and is well-capitalized.

MORE FROM AMERICAN BANKER

Regulation and compliance

Pathward Bank to pay more than $700,000 for compliance failure

The Office of the Attorney General in New York says the bank violated the state's Exempt Income Protection Act, illegally transferring customers' money to debt collectors.

By Catherine Leffert

7h ago
Earnings

Citizens reports fast progress in building its private bank

The Providence, Rhode Island, company is having discussions with private wealth management teams elsewhere as it seeks to expand its fledgling private bank. In just three months, private banking deposits doubled to $2.4 billion.

By Allissa Kline

7h ago
Earnings

'Higher-for-longer' hits U.S. Bancorp as funding costs stay elevated

After the Minneapolis-based company reported stubbornly high commercial deposit costs, it reduced its full-year forecast for net interest income by $200 million-$500 million.

By John Reosti

9h ago
Regulation and compliance

CFPB makes structural changes after expanding authority over nonbanks

The CFPB has dissolved the Office of Supervision, Enforcement and Fair Lending and eliminated the job of associate director in a move that impacts how it designates nonbanks for supervision.

By Kate Berry

10h ago
Consumer banking

First Horizon bucks trend as deposit costs slow

Rising deposit costs have plagued banks in general, and the Tennessee bank had to pay up to bolster liquidity after its failed merger with TD. But First Horizon retained customers in the first quarter while not paying them the special rates they got last year.

By Polo Rocha

10h ago
Payments

Klarna turns a BNPL track record into a creditworthiness benchmark

U.S. customers who have previously used Sweden-based Klarna's buy now/pay later financing — and paid off their loans in full — will be prequalified for interest-bearing loans through a new version of the Klarna Visa card rolling out later this year.

By Kate Fitzgerald

11h ago