California Federal Bank Unit Agrees to Acquire Downey Auto Finance Corp.Business Editors DALLAS--(BUSINESS WIRE)--Jan. 24, 2000 Auto One Acceptance Corporation, a subsidiary of California Federal Bank California Federal Bank, often abbreviated to "Cal Fed", was a savings and loan bank in California. It existed from 1926 until 2002, when its parent company Golden State Bancorp was acquired by Citigroup, resulting in the bank being merged into Citibank. , today signed a definitive agreement to purchase Downey Auto Finance Corp., a Newport Beach-based automobile finance company, from Downey Savings and Loan Association savings and loan association, type of financial institution that was originally created to accept savings from private investors and to provide home mortgage services for the public. The first U.S. savings and loan association was founded in 1831. , F.A. The deal is anticipated to close by the end of the first quarter. The terms of the transaction were not disclosed. Downey Auto's operations will be merged into Auto One, which is headquartered in Dallas. Auto One will maintain a significant employee base in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . Cal Fed acquired Dallas-based Auto One Acceptance Corporation in September 1997. &uot;We entered the automobile financing arena with our Auto One purchase,&uot; said Scott Kisting, Cal Fed's executive vice president of consumer and business banking. &uot;We continue to be pleased with that acquisition, so we have decided to build on that business. The Downey Auto acquisition makes sense for both Cal Fed and Auto One, as it gives us a larger auto loan distribution network, increases our portfolio size, and provides additional production and underwriting resources. This will help us achieve a more substantial standing in the auto finance industry and is part of our corporate goal to diversify our sources of income.&uot; Auto One president Dan Leonard added, &uot;Downey Auto is a prime lender that's active in California, Nevada, Oregon, Washington and Arizona. Auto One is primarily a subprime lender with a presence in Texas, the Southeast, the Northeast and the Midwest. The addition of Downey Auto allows us to market our products in places where we haven't before had an active dealer base. It's an ideal fit.&uot; By adding Downey Auto's managed portfolio of $366 million, Auto One's portfolio will grow to more than $1.1 billion. Downey Savings and Loan Association, F.A., whose holding company is Downey Financial Corp., is headquartered in Newport Beach. With assets in excess of $9 billion, Downey Savings has 104 locations throughout California and also offers home loans nationwide. The stock of Downey Financial Corp. is traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. and Pacific Exchange under trading symbol Trading symbol See: Ticker symbol &uot;DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary .&uot; California Federal Bank is the second-largest bank headquartered in California, with approximately $57 billion in assets and 349 branches. The bank is a subsidiary of San Francisco-based Golden State Bancorp (NYSE NYSE See: New York Stock Exchange : GSB GSB Graduate School of Business (Stanford) GSB Graduate School of Business (Chicago) GSB Government of the Student Body (Iowa State University, Ames, IA) ). Cal Fed is a full-service community-oriented bank offering consumers and businesses the products and experience to help them achieve their financial goals. For more information on the companies, see our web sites at www.autoone.com, www.calfed.com and www.goldenstatebancorp.com. |
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