H. F. Ahmanson & Co.
| Company type | Private |
|---|---|
| Industry | Financial services, Insurance |
| Founded | 1927 |
| Founder | Howard F. Ahmanson Sr. |
| Headquarters | Irwindale, California , United States |
Area served | United States (primarily California) |
Key people | Richard H. Deihl (Chairman and CEO from 1983), William H. Ahmanson (President after 1968) |
| Products | Savings and loan services, Mortgage lending, Insurance |
Number of employees | Over 700 employees reduced in late 1980s (exact number unknown) |
| Parent | Washington Mutual (acquired in 1998), JPMorgan Chase (legal successor after 2008) |
H.F. Ahmanson & Co. was a holding company based in California, named after its founder Howard F. Ahmanson Sr. It is primarily recognized as the parent organization of Home Savings of America, which ranked among the largest savings and loan institutions in the United States.
Early history
Howard Fieldstad Ahmanson, born in Omaha, Nebraska, on July 1, 1906, established H.F. Ahmanson & Co. in 1927 prior to completing his studies at the University of Southern California. Initially, the firm concentrated on casualty insurance and rapidly grew to become California’s leading underwriter. The company leveraged foreclosure opportunities during the Great Depression to significantly enhance its financial standing.
In 1943, Ahmanson reacquired control of the Omaha-based National American Insurance Company, an entity once owned by his family but lost following his father’s death in 1925. This move marked a deliberate expansion of the company’s insurance operations within its corporate structure.
Post World War II era & 1950s
Following World War II, California experienced a substantial upswing in the housing market. In 1947, Ahmanson purchased the Home Building and Loan Association—a savings and loan institution with assets below $1 million—for $162,000. This acquisition laid the groundwork for what would evolve into H.F. Ahmanson & Company. Over the subsequent decade, Ahmanson absorbed 18 additional institutions, merging them under Home Savings and Loan to create a formidable financial entity.
Prior to the 1950s, mortgage lenders commonly bundled fire insurance policies with loans as an additional revenue source. However, state legislation enacted in the late 1940s curtailed this practice. The U.S. Department of Justice conducted a brief investigation into H.F. Ahmanson’s practices during the mid-1950s but ultimately discontinued the inquiry.
The company broadened its financial services portfolio by establishing Ahmanson Bank and Trust Company in 1957, National American Title Insurance Company in 1958, and National American Life Insurance Company of California in 1961.
1960s
Throughout the 1960s, H.F. Ahmanson experienced sustained expansion until downturns in the housing market combined with heightened federal regulations affected the savings and loan industry. In 1965, the company redirected its focus from tract housing developments toward apartment buildings, thereby circumventing significant sector challenges. Founder Howard Ahmanson regarded this industry contraction as a necessary correction.
Howard Ahmanson passed away from a heart attack on June 17, 1968. At that time, his net worth was estimated between $200 million and $300 million, primarily held within trusts and foundations. Leadership of the private corporation passed to his nephew, William H. Ahmanson, while Richard Deihl continued as CEO of Home Savings. The company maintained its reputation for prudent management and demonstrated resilience amid economic fluctuations.
The Tax Reform Act of 1969 compelled foundations to reduce concentrated equity holdings, leading H.F. Ahmanson to initiate several stock offerings. A notable $101 million public offering in 1972—then a record amount—represented only 6.4% of its $4.4 billion asset base, highlighting its robust financial position. Following enactment of the Bank Holding Company Act of 1970, H.F. Ahmanson divested Ahmanson Bank in 1976 to private investors from the Philippines but retained trust operations through its subsidiary, Ahmanson Trust Company.
During this decade, competition among savings and loan institutions intensified around offering high interest rates and expensive premiums to attract depositors. The legislation passed in 1966 ended these "rate wars," shifting competitive strategies toward advertising—a development that advantaged larger organizations like Home Savings with substantial marketing resources and allowed them to set loan interest rates across the industry.
1970s
The savings and loan sector faced significant difficulties during the late 1960s and early 1970s, as a construction boom led to numerous foreclosures in California amid restrictive monetary policies. Capital from outside California had initially poured into the state attracted by higher interest rates but withdrew once other states offered comparable returns. By the end of the 1970s, investment capital gradually flowed back into California institutions, even though consumer saving rates declined overall. To diversify income, savings and loan associations expanded into consumer lending and provided loans on properties other than single-family homes. Ahmanson anticipated these trends early on, having extended financing for apartment complexes since 1965 to mitigate risks associated with traditional mortgage lending. Importantly, the company steered clear of riskier financial products such as auto loans or unsecured commercial lending, which were factors in the collapse of some peer institutions.
During this era, federal policies favored H.F. Ahmanson & Company’s growth. The 1968 legislation ended a nine-year prohibition on holding company acquisitions, while a 1971 regulation broadened permissible lending areas from the main office to include each branch’s local market. These regulatory changes facilitated Home Savings' rapid expansion throughout California, including strategic acquisitions in the northern part of the state.
Ahmanson’s insurance division also experienced growth via acquisitions like Stuyvesant Insurance Group in 1974 and Bankers National Life Insurance Company in 1981.
1980s
Having reached saturation in California’s savings and loan market, Ahmanson pursued interstate growth by integrating out-of-state institutions into its Home Savings system under the Savings of America brand. From 1981 through 1987, mergers extended across Florida, Missouri, Texas, Illinois, New York, Ohio, Arizona, and Washington, expanding total assets to $27 billion by 1987.
These expansions were often supported by effective direct-mail marketing campaigns; for example, one Texas campaign generated $60 million within a single month. Although some communities like Berwyn, Illinois expressed resistance, regulatory bodies generally approved transactions smoothly after Ahmanson reassured that local deposits would remain invested within their respective regions. Savings of America branches attracted depositors by offering interest rates up to two percentage points higher than competitors.
In January 1988, Ahmanson acquired Bowery Savings Bank in New York City while retaining its 25 branches under the Bowery name. The company also strengthened its mortgage lending operations by opening Ahmanson Mortgage Company offices in multiple states along with two loan servicing centers located in California and North Carolina.
Richard H. Deihl assumed the roles of chairman and CEO in 1983. A veteran executive within the organization, Deihl avoided speculative junk bonds during the mid-1980s boom and instead focused on generating steady returns from home loans yielding between 1% and 1.5%. This prudent approach paid off as deposits surged by 75% and assets climbed more than 65% from 1988 to 1990 amidst widespread industry turmoil. Net profits averaged over $200 million annually throughout this timeframe.
Under Deihl’s leadership, headquarters were relocated to Irwindale, California to reduce operational costs, accompanied by workforce reductions exceeding 700 employees to improve efficiency. The company maintained a general expense ratio at approximately 1.5% of average assets—significantly below industry averages—and implemented rigorous lending standards; borrowers’ personal debt averaged only about one-third of their income, nearly three percentage points lower than government guidelines. By 1991, nearly 95% of Ahmanson’s loan portfolio was secured by residential real estate collateral.
1990s
Leveraging robust financial performance, Ahmanson pursued growth by acquiring distressed savings and loan institutions. Between 1990 and 1991, it secured Home Savings Bank of New York along with several branches from Coast Savings’ San Diego network. By 1992, the company expanded further by purchasing County Bank of Santa Barbara and rebranding its operations in New York and Connecticut as Home Savings of America. In 1993, it incorporated 24 branches acquired from HomeFed Bank.
The year 1994 marked a significant expansion for Home Savings of America with the acquisition of Fidelity Federal Bank, Long Beach Bank, and Hawthorne Savings and Loan Association, adding 21 Southern California branches and $1.1 billion in deposits. That same year, it also bought additional branches from Guardian Federal Savings and Northeast Savings, plus 23 branches from Western Federal Savings Bank via the Resolution Trust Corporation (RTC).
Despite this growth, Ahmanson encountered difficulties during California’s early-1990s economic downturn. Earnings declined to $156 million in 1992 amid falling real estate values and an increase in non-performing loans; mortgage refinancing represented 61% of its mortgage activities.
Prior to 1998, the company’s main subsidiaries included Home Savings of America; Ahmanson Mortgage Company; Ahmanson Marketing, Inc.; and Griffin Financial Services.
In 1998, Washington Mutual, headquartered in Seattle, acquired HF Ahmanson and Home Savings for $10 billion. This purchase, combined with acquisitions such as American Savings and Great Western Financial, positioned Washington Mutual as California’s second-largest bank with assets totaling $55 billion. The transaction also transferred ownership of a portion of the Ahmanson Ranch near Los Angeles to Washington Mutual, which later sold the land; it is now preserved as the Upper Las Virgenes Canyon Open Space Preserve.
After Washington Mutual’s collapse in 2008, JPMorgan Chase became the legal successor to H. F. Ahmanson and Co.
Growth Across California
In January 1991, Home Savings announced its plan to acquire 19 branches in the San Diego area from Coast Federal Bank for $20 million in cash; this acquisition was finalized by May of that year. This transaction boosted Home Savings’ total deposits to $38.6 billion, establishing it as the largest savings and loan institution in the U.S., with assets exceeding $50 billion, operating 374 branches across nine states along with 95 mortgage lending offices spanning 13 states. Five of the newly acquired branches were merged into existing Home Savings locations.
By March 1992, Home Savings had taken over 10 branches from the failed County Bank through the Resolution Trust Corporation, adding roughly $630 million in retail deposits across Santa Barbara, Ventura, and San Luis Obispo counties.
In August 1992, Home Savings agreed to purchase eight Central Valley branches from Coast Federal Bank containing approximately $275 million in deposits; the deal was completed in November. At this point, Home Savings managed assets over $47 billion and was recognized as the largest savings institution nationwide with a network of 378 branches.
December 1993 saw Home Savings acquiring eight Inland Empire branches formerly part of the failed HomeFed Bank from the RTC, bringing in about $190 million in deposits.
In March 1994, four California branches belonging to Connecticut-based Northeast Savings were added to Home Savings' portfolio for $60 million in deposits; three offices were subsequently closed post-acquisition. This deal closed by July 1994.
July of that year also included acquiring two Long Beach Bank branches plus deposits from four additional locations for $12.5 million. Long Beach Bank later transitioned into a mortgage banking firm focused on subprime loans before being acquired by Washington Mutual in 1999. In the same month, Home Savings purchased nine Fidelity Federal Bank branches based in Glendale and six from Hawthorne Savings & Loan; the Fidelity deal was finalized in August. Additionally, five Huntington Beach Guardian Federal branches were obtained from RTC for $1.8 million.
In September 1994, Home Savings expanded further by acquiring 23 Marina del Rey branches from Western Federal Savings Bank through RTC for $87.2 million.
February 1995 brought the acquisition of 52 Southern California Household Bank branches for $53 million, adding $1.35 billion in deposits; plans included closing around 20 overlapping branches to streamline operations. The transaction concluded by June.
In March 1996, Home Savings agreed to purchase 61 branch offices from First Interstate Bancorp for approximately $200 million—these were branches Wells Fargo had to divest before its acquisition of First Interstate. These locations held nearly $2.5 billion in deposits and about $1.3 billion in loans. Up to 27 overlapping offices were slated for closure; initially, closure of 14 was confirmed.
October 1997 featured an announcement that Home Savings would acquire Coast Savings Financial Inc., parent company of Coast Federal Bank, for $900 million in stock. Coast operated around 90 California branches; combined with Home’s more than 370 branches across California, Texas, and Florida, this created California’s third-largest financial institution. The merger was completed by February 1998 after receiving regulatory approval and shareholder consent.
Post-merger adjustments included shuttering 52 duplicate California branches while selling off remaining Florida locations separately—resulting in roughly 375 branches primarily situated in California and Texas by mid-1998.
This consolidation presented operational difficulties: customers reported lost mortgage documentation and missing safety deposit boxes amid branch integrations. Additionally, complaints arose concerning longer wait times and reduced service quality following branch closures.
Growth in Florida
In February 1997, H. F. Ahmanson revealed the divestiture of 12 Florida branches to SouthTrust, a Birmingham-based bank, for an undisclosed sum. At that point, Home Savings maintained operations in 39 branches throughout Florida. Later, in December 1997, Ahmanson finalized the sale of the remaining 27 Florida branches to SouthTrust for $300 million in cash.
Growth in New York
Home Savings made its initial entry into the New York market in August 1984 by acquiring Century Federal Savings and Loan Association, which operated 16 branches on Long Island. In October 1987, the company announced its purchase of Bowery Savings Bank, a thrift institution based in New York City with 25 branches, for $200 million in cash; this transaction was completed in February 1988, with Bowery continuing to operate independently.
In April 1990, Home Savings expanded further by acquiring Home Savings Bank of New York, which had 13 branches, for $300 million in stock. At that time, the company managed 26 Bowery branches and 18 Savings of America locations across New York City and Long Island. The acquisition was finalized in November 1990.
By April 1992, Ahmanson consolidated its New York operations under the unified Home Savings of America brand to create a cohesive national presence. In May 1993, it added 10 branches from Long Island Savings Bank to its portfolio.
In May 1995, Home Savings divested its entire New York network—comprising 60 branches throughout New York City, Long Island, and Westchester County—to GreenPoint Financial Corporation for $660 million, surpassing analysts’ expectations. This branch system had been developed through previous acquisitions including Century Federal (1984), Bowery (1988), Home Savings Bank (1990), and Long Island Savings Bank branches (1993).
Growth in Arizona
Home Savings entered the Arizona market in April 1987 by acquiring Tucson Savings & Loan Association, a single-branch institution located in Tucson, via a stock deal.
By August 1996, Home Savings announced its withdrawal from Arizona by selling its four branch locations to First National Bank of Arizona, a Bancorp Hawaii subsidiary, for an undisclosed price. This transaction was completed in March 1997, marking Home Savings' strategic exit from Arizona to concentrate on core regions.