Valley Federal Savings & Loan, a Van...

Valley Federal Savings & Loan, a Van Nuys-based thrift, said Imperial Corp. of America withdrew its application to buy five Valley Federal branch offices in the San Joaquin Valley.

Imperial, the San Diego-based parent of Imperial Savings & Loan, withdrew its application from the federal Office of Thrift Supervision because Imperial Savings is not yet in compliance with certain requirements of the Community Reinvestment Act, said Imperial spokesman Tim Larrick.

The act requires S&Ls; to lend money in amounts related to areas where deposits are received. Imperial is taking steps to meet the criteria under the act, and it might resubmit its application to buy the Valley Federal branches, Imperial said.

The proposed sale was first announced in August. Terms were not disclosed, but Valley Federal said the sale would enable it to save about $2 million in operating costs a year.