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85 Positions Cut by Thrift in Costa Mesa

January 30, 1986|JAMES GRANELLI | Times Staff Writer

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.

The S&L's financial results for the quarter ended Dec. 31 were not completely compiled Wednesday, according to Day. He said he "would think" that the institution had a profitable quarter but that he was not sure.

Meantime, federal and state regulators have been examining the books of the privately held savings institution since December, said William Crawford, commissioner of the state Savings and Loan Department. Describing the audit as "sort of routine," Crawford said: "Whenever we see certain flags go up, we go in and examine."

He declined to say what warning signs the department saw.

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