California Federal Bank and Glendale Federal Bank Complete Merger.SAN FRANCISCO--(BUSINESS WIRE)--Sept. 11, 1998-- Privately Held Cal Fed Becomes Public With Golden State Bancorp as Holding Company for New Entity Cal Fed to be Largest California-Based Thrift First Nationwide Holdings Inc., parent company 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. FSB (FrontSide Bus) See system bus. FSB - front side bus (Cal Fed), and Golden State Bancorp Inc. (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) ), parent of Glendale Federal Bank, today completed their merger through a tax-free exchange tax-free exchange An exchange of assets between taxpayers in which any gain or loss is not recognized in the period during which the exchange takes place. Rather, taxpayers are required to adjust the basis of assets exchanged. of shares. The merged bank, California Federal Bank, is headquartered in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . The merged holding company, Golden State Bancorp, remains a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. under its current ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors , and will also be headquartered in San Francisco. With approximately $52 billion in assets, the combined bank will become the largest California-based thrift and the second-largest thrift in the nation, following the planned mergers of others in the industry. "With this merger we now have a very significant and sizeable California franchise in place," said Gerald J. Ford Not to be confused with former American president Gerald Ford. Gerald J. Ford (born 1945) is a successful Texas banker known for buying and selling thrift banks. Ford bought his first bank in 1975 for $1.2 million and later sold it for a profit of $80 million. , chairman and chief executive of both Golden State and Cal Fed. "We gain the competitive advantages of a larger financial institution teamed with the community-bank spirit of the smaller institutions we've combined over the past four years." "We're taking the best aspects of both organizations and expanding on them," said Carl Webb Carl Webb (born March 20, 1981 in Mount Isa, Queensland) is an Australian professional rugby league player for the North Queensland Cowboys in the National Rugby League (NRL) competition. , president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of the new bank and holding company. "We plan to grow in areas like investment sales, small business and consumer lending, and retail mortgage loan origination. We also expect to continue the strong growth in checking account deposits experienced by both banks. At the same time, we anticipate the merger and conversion will reduce annual expenses for the combined company by about $160 million during 1999." While the merger is effective today, Glendale Federal branches won't adopt the Cal Fed name until November 16, when all accounts from both institutions will be converted to one system. Then customers of both Cal Fed and Glendale Federal will be able to conduct business at any of the "new" Cal Fed locations. Prior to the November conversion, customers of either institution may make automated teller machine automated teller machine (ATM), device used by bank customers to process account transactions. Typically, a user inserts into the ATM a special plastic card that is encoded with information on a magnetic strip. (ATM) withdrawals at any Cal Fed or Glendale Federal branch without paying a "foreign" ATM transaction fee. After the conversion and consolidation of 56 branches, the new California Federal Bank will have 359 branches: 352 in California and seven in Nevada. With a strong presence in California's seven most populous regions, the bank will have a statewide depository market share of approximately 6.4 percent. The bank's retail deposits total $24 billion, serving 1.5 million households. The merger adds approximately 244,000 mortgage loans to the servicing portfolio of Cal Fed's mortgage subsidiary, First Nationwide Mortgage Corp. (FNMC), headquartered in Frederick, Maryland. FNMC is now the eighth largest mortgage loan servicer in the country, servicing approximately 1 million loans with a principal balance totaling some $96 billion. Mortgage loan originations for the first six months of 1998 totaled $6 billion at FNMC and $1 billion at Glendale Federal Bank. The new California Federal Bank and its subsidiaries now employ approximately 8,000 people. As a result of the merger, MacAndrews & Forbes Holdings Inc. received shares of common stock of Golden State Bancorp approximating 31 percent of the fully diluted shares of Golden State common stock, and Hunter's Glen/Ford, Ltd., a partnership controlled by Gerald J. Ford, received shares of Golden State common stock approximating 12 percent of the fully diluted shares of Golden State common stock. MacAndrews & Forbes and Hunter's Glen are the former owners of First Nationwide Holdings. "With our history of successful consolidations," Gerald Ford concluded, "we sincerely believe this merger will benefit our customers, shareholders, employees and the communities we serve." The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding the Company's expectations, intentions, beliefs, estimates and projections regarding the future. Forward-looking statements include the Bank's statements regarding pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma assets, deposits, cost savings, customers served and mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. operations after the Bank's merger with Glendale Federal Bank. Such statements reflect the current views of the Bank with respect to future events and are subject to certain risks, uncertainties and assumptions. It is important to note that the Company's actual results could differ materially from those described herein as anticipated, believed, estimated or expected. The Company assumes no obligation to update any such forward-looking statement. CONTACT: Cal Fed Bank Media Contacts: Janis Tarter, 415/904-1199 Mary Rische, 415/904-1203 Investor Contact: Jeff Misakian, 818/500-2824 |
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