Great American Bank
| Company type | Public |
|---|---|
| Industry | Banking, Savings and loan |
| Founded | July 11, 1885 in San Diego, California, United States |
| Defunct | 1991 |
| Headquarters | San Diego , United States |
Area served | California, Arizona, Washington, Montana, Colorado |
| Products | Savings and loan services |
Great American Bank was a United States-based savings and loan association with its headquarters located in San Diego. Originally established in 1885 under the name San Diego Building and Loan Association, it holds the distinction of being Southern California's inaugural savings and loan institution. The organization operated as San Diego Federal Savings and Loan Association until the 1980s. In 1991, federal authorities intervened, taking control and ultimately dissolving the bank. At its height, Great American maintained a network of more than 200 branches spanning California, Arizona, Washington, Montana, and Colorado.
History
The San Diego Building and Loan Association was created on July 11, 1885, with an initial capital stock amounting to $500,000 divided into 2,500 shares. In 1936, it transitioned from a state charter to a federal charter, adopting the name San Diego Federal Savings and Loan Association. Beginning in December 1980, the institution completed eight mergers with other savings and loan entities, prompting a rebranding to Great American Federal Savings and Loan Association in 1982. This change mirrored its expansion from just four offices in San Diego County in 1970 to over 100 locations throughout the state. In 1984, it switched back to a state charter and took on the name Great American First Savings Bank.
Throughout the 1970s and 1980s, Great American experienced rapid growth via acquisitions and established itself as a prominent employer within San Diego. The bank also actively contributed to numerous community-focused programs.
After conducting a public stock offering in 1983 followed by a $60 million debt issuance in 1984, Great American bolstered its capital base to support further growth. The institution entered the Arizona market in 1986 by acquiring Home Federal Savings of Tucson during a period of real estate expansion. In March 1987, it purchased the failing First Security Savings & Loan Association located in Colorado. Later that year, the bank expanded into the Pacific Northwest through acquiring Capital Savings Bank of Olympia, which operated 40 branches across Washington and Montana.
In 1987, after securing naming rights from Great American Bancorp for $2.1 million, the company adopted the name Great American Bank. By August 1988, it had divested its credit card division—servicing 188,000 accounts—to Household Bank N.A., a subsidiary of Household International.
By 1990, Great American faced significant challenges due to a large volume of non-performing loans that led to regulatory capital deficiencies. It sold its core group of 130 California branches to Wells Fargo for $491 million before federal regulators took control of the remaining 81 branches in August 1991. The Resolution Trust Corporation subsequently disposed of the bank’s Arizona branches to Banc One, its Washington branches to First Interstate Bancorp and Sterling Financial Corporation, and other assets to Washington Federal Savings, with all remaining offices closing by 1994.
The bank’s strategic pivot away from traditional home mortgage lending toward commercial real estate investments and out-of-state expansion—especially within Arizona—played a significant role in its financial troubles.