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CALIFORNIA FEDERAL BANK COMPLETES SALE OF SUBSIDIARY

 LOS ANGELES, Calif., May 6 /PRNewswire/ -- California Federal Bank (NYSE: CAL) today announced that the sale of its consumer finance subsidiary, California Thrift and Loan, was completed yesterday, May 5.
 All the outstanding stock of California Thrift and Loan was purchased by CTL CREDIT INC. (NASDAQ: CTLI), a newly formed, independent company that funded the purchase through an initial public offering of 3.0 million shares of its common stock.
 The bank said that it expects no material gain or loss on the transaction, which was underwritten by Montgomery Securities of San Francisco.
 "With the successful sale of California Thrift and Loan, we have now essentially completed the ambitious restructuring program we began in mid-1989," said Jerry St. Dennis, chairman of California Federal Bank.
 "During the restructuring, which succeeded amidst the worst real estate recession in modern times, we sold five subsidiaries, exited the commercial banking and real estate development businesses, reduced annual expenses by $80 million and reestablished California Federal Bank as a strong consumer bank," St. Dennis said. "We are now looking forward to increasing the bank's share of business in its markets, particularly in the residential lending category," St. Dennis added.
 California Thrift and Loan is a 34-year-old FDIC-insured thrift and loan with 17 offices throughout California. CTL CREDIT INC. will offer automobile, real estate and lease financing in the western United States through the 17 California offices and seven offices in Arizona, Colorado, New Mexico, Oregon and Texas.
 California Federal Bank, FSB, with approximately $16.5 billion in assets, is the nation's fifth-largest publicly traded savings institution. The bank provides retail banking services through 182 savings and lending offices in California, Florida, Nevada and Georgia.
 -0- 5/6/93
 /CONTACT: James F. Hurley, 213-930-9750, or Frank W. Moore, 213-932-4203, both of California Federal Bank/
 (CAL CTLI)


CO: California Federal Bank; California Thrift and Loan;
 CTL CREDIT INC. ST: California IN: FIN SU:


EH -- LA023 -- 5508 05/06/93 13:32 EDT
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Publication:PR Newswire
Date:May 6, 1993
Words:325
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