Following a third-quarter loss, American Diversified Savings Bank in the Costa Mesa confirmed Wednesday that it has laid off about 85 employees nationwide in the last month as it consolidates its operations.
American Diversified lost $2.2 million in the quarter ended Sept. 30, according to a report filed with the Federal Home Loan Bank in San Francisco. The regulatory agency's reports also showed that the savings bank had a profit of $11.2 million in the second quarter and a loss of $5.3 million in the first quarter.
The layoffs, mostly in out-of-state operations involving its American Diversified Capital Corp. subsidiary, represent about 6% to 7% of the total employees at the S&L and its subsidiaries, said Lester Day, the firm's president. He added that he does not expect further layoffs.
Lost Key Executive
Adding to American Diversified's woes, Day said, is the fact that its executive vice president, Wyn Pope, left the firm in mid-January because of health reasons.