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American Savings Will Be Acquired by Kansas Thrift

July 02, 1987|GREG JOHNSON | Times Staff Writer

SAN DIEGO — Imperial Corp. of America's Kansas-based American Savings subsidiary has agreed to sell its 16 branches to Columbia Savings of Emporia, Kan., Imperial said Wednesday. Terms of the deal, which would end Imperial's 25-year presence in Kansas, were not announced.

American Savings, which also operates four Silver State Savings branch offices in Colorado, reported earnings of $2.1 million in 1986 and of $500,000 for the first quarter of 1987. The company has assets of nearly $750 million.

Imperial, which has assets of $9.8 billion,

reported a $19-million net profit for the first quarter ended March 31.

The branch sale is part of Imperial's plan to become a unitary savings and loan company--i.e., one that owns only one thrift, spokesman Tim Larrick said. Unitary holding companies "have greater business flexibility and less regulatory constraint" than do multiple S & L holding companies, Larrick said.

Imperial Corp. is also the parent company of Imperial Savings Assn. of San Diego and of Silver State Savings of Colorado, which will be merged into Imperial Savings after American Savings is sold to Columbia.

Imperial is selling American Savings because, Larrick said, customers in Kansas want more traditional S & L savings accounts and Imperial has been changing its blend of offerings to emphasize the investment, credit and mortgage offerings that Californians are demanding.

Imperial, which will continue to operate the four Silver State Savings branches after the sale, is "in the process of making a decision on what will happen" in the Colorado marketplace, Larrick said. He added that Imperial may expand its Colorado operation through acquisitions.

In order to sell the Kansas branches to Columbia, Imperial first must merge American Savings and Silver State Savings Bank with Imperial Savings & Loan. Imperial hopes to conclude the deal, which requires regulatory approval, by the end of the year.

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