CITICORP <CCI> SAVINGS EXTENDS CALIFORNIA REACH
Citicorp has extended its reach
into the California market with Citicorp Savings' acquisition
of 50 of Sears Roebuck's <S> Sears Savings Bank branches,
bringing its presences to 143 branches in 101 communities,
CitiCorp Savings said.
    Thrift industry analysts said the move, approved by the
Federal Reserve board today, is a plus for Citicorp and shows
its serious intent to penetrate the California market.
    The acquisition mostly extends Citicorp's reach into
Southern California, where 34 of the 50 branches are located.
Citicorp Savings was predominantly in Northern California.
    "This marks our first major expansion in California,
particularly in the south," said Citicorp Savings President
Edward Valencia, in a statement.
    Thrift industry sources said they do not see a major
near-term impact on the Southern California thrift market, but
do expect Citicorp to be a more aggressive competitor than
Sears was in that market.
    "We do believe they will be a better competitor than
Sears," said James Stutz, Executive Vice President of Home
Federal Savings and Loan Association <HFD>, based in San Diego.
    Banking industry sources said the move is viewed as
groundwork, to establish Citicorp throughout the California
market, well before the 1991 law change that will allow it to
operate as a bank in the state. They said Citicorp is likely to
convert the branches to banks at that time.
    In the near-term, however, analysts said with seven billion
dlrs in assets, Citicorp Savings is still not a major force in
the thrift market, against such large California thrifts as
Home Federal, Great Western Financial Corp <GWF>, H F Ahmanson
and Co <AHM>, Golden West  Financial <GWD> and Great American
First Savings Bank <GTA>.
 Reuter
