Long Beach Bank Sells Deposits to Home Savings
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ORANGE — Long Beach Bank said Friday it has sold its $565 million in deposits to Home Savings of America and will close four branches as part of a move to reorganize as a mortgage banking company.
The Orange-based savings bank will sell its two branches in Long Beach to Home Savings of America and will close its branch offices in Beverly Hills, Pasadena, Tustin and Thousand Oaks. As a result, 47 of the bank’s 867 employees could be laid off, said Jon Daurio, corporate counsel for Long Beach Bank.
Home Savings of America’s branches in nearby locations will service accounts of the closed branches. Daurio said some of the laid-off workers could be hired by Home Savings or the mortgage banking operation of Long Beach Bank.
The Long Beach Bank’s board decided it should operate as a mortgage banking company and no longer be a federally insured depository institution. It will change its name to Long Beach Mortgage Co. and keep its headquarters in Orange, Daurio said.
The company expects that the stock of Long Beach Mortgage Co.’s parent company will ultimately be distributed to Long Beach Bank’s shareholders in connection with the reorganization.
The deal is subject to conditions such as the approval of the Office of Thrift Supervision and shareholders of Long Beach Bank. The deposit sale transaction is expected to close this fall.
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