San Diego Federal Savings and Loan Association
| Company type | Public (before failure) |
|---|---|
| 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, credit cards (until 1988) |
Great American Bank was a United States-based savings and loan association headquartered in San Diego. 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. Up until the 1980s, it operated under the title San Diego Federal Savings and Loan Association. The bank was ultimately seized and dissolved by federal authorities in 1991. Prior to its closure, Great American maintained a network exceeding 200 branches throughout California, Arizona, Washington, Montana, and Colorado.
History
The San Diego Building and Loan Association commenced operations on July 11, 1885, with an initial capital stock amounting to $500,000. 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 companies, growing from four local offices in San Diego County to over 100 locations across the state. The organization rebranded as Great American Federal Savings and Loan Association in 1982. Two years later, it switched back to a state charter and was renamed Great American First Savings Bank.
Throughout the 1970s and 1980s, Great American experienced rapid expansion through acquisitions and earned a reputation as a leading employer within San Diego. The bank actively contributed to numerous community initiatives.
Following its public stock offering in 1983 and a $60 million debt issuance in 1984, Great American extended its reach beyond California by acquiring Home Federal Savings of Tucson, Arizona amid a regional real estate upswing in 1986. In March 1987, it entered the Colorado market by purchasing the insolvent First Security Savings & Loan Association based in Grand Junction. Later that year, it expanded into the Pacific Northwest by acquiring Capital Savings Bank of Olympia, Washington, which operated 40 branches throughout Washington and Montana.
In 1987, after securing naming rights from Great American Bancorp for $2.1 million, the institution adopted the name Great American Bank. By August 1988, it divested from the credit card sector by selling its division—comprising 188,000 Visa and Mastercard accounts—to Household Bank N.A., a subsidiary of Household International.
By 1990, Great American was burdened with a large volume of nonperforming loans and no longer met regulatory capital standards. It sold its core portfolio of 130 California branches to Wells Fargo for $491 million before federal regulators intervened to seize the remaining 81 branches in August 1991. Subsequently, in May 1994, the Resolution Trust Corporation disposed of its Arizona branches to Banc One, Washington branches to First Interstate Bancorp and Sterling Financial Corporation, with additional locations sold to Washington Federal Savings, leading to the closure of all remaining offices.
The bank's strategic pivot from primarily home mortgage lending toward commercial real estate ventures and out-of-state investments—especially in Arizona—has been identified as a significant contributor to its eventual financial downfall.