Jackson National Life Acquires California Thrift

Jackson National Life Insurance Company (JNL) says it has acquired First Federal Savings and Loan Association in San Bernardino, CA. The Office of Thrift Supervision (OTS) approved the acquisition this week, granting the nation's 19th largest insurer permission to acquire the financial institution. JNL purchased all of the stock of the firm in the $5.6 million transaction.

"We're excited about the opportunities with First Federal," said Robert P. Saltzman, president and CEO of Jackson National. "The thrift business has excellent potential and is complementary to our existing business."

Anne Bacon has been appointed interim president and chief executive officer. Bacon was formerly president and CEO of Redlands Federal Bank, which was acquired by Glendale Federal Bank in July 1998. A search for a permanent head of the thrift is ongoing.

"Members of the savings and loan won't see any of the negative changes that usually come with such an acquisition," said Bacon. "There will be no change in customer account numbers, checks, or accounts." Prior to the acquisition, First Federal had been unable to consistently make loans, due to capital restrictions. JNL will provide the financial backing that will allow the thrift to achieve the "well-capitalized" category established by the FDIC. This will pave the way for a permanent real estate lending operation, with an active outreach program for loans to the area's low- and moderate-income residents.

Jackson National—which already offers a variety of financial and insurance products and services through banks—plans to eventually market some of its products through the thrift. JNL officials said they also plan to change the name of the thrift to Jackson Federal Savings Bank.