Locals Offer Their 2 Cents on Glendale Bank Merger

GLENDALE —  Glendale Federal Bank may be no more, its identity and assets merged with an upstate competitor, but the city that gave the local thrift its name, that grew as the thrift grew, seemed divided Friday over what the merger means to Glendale.

On rain-drenched street corners, in the local coffee shops, and within Glendale Federal’s main branch downtown, gloom over possible layoffs was offset by glowing readings of the vibrant Glendale economy.

“It is a good bank,” said Richard Haas, 57, a lifelong Glendale resident and decade-long customer of Glendale Federal. “Look across the street, they’re putting up another skyscraper. This city is growing. If the bank pulls out, something substantial will go in.”

Haas’ caffeine-fueled optimism was tempered by nostalgia, time-burnished memories of a financial institution that took a role in helping Glendale emerge as the so-proclaimed Jewel City of California.

“There may be a new replacement there, but Glendale Federal was a terribly important part of the history of Glendale,” said City Councilwoman Ginger Bremberg. “They were a remarkably fine corporate citizen. Not everyone is.”

Founded in 1934 by local businessman Joseph Hoeft, Glendale Federal began with $5,600. Hoeft and his thrift are credited with creating the city’s symphony orchestra and helping Glendale Community College emerge as a premiere learning center from the state’s community college ranks.

Gladys Wymore, past president of the local chapter of the American Business Women’s Assn., said Glendale Federal always volunteered meeting space to her organization, and many others, and encouraged community involvement.

“Hopefully they’re not going to close the Glendale office,” said Wymore, 60, a longtime customer. “They’ve been here so long.”

As Glendale grew from a Valley outpost at the turn of the century to a city of nearly 200,000, Glendale Federal prospered. Today, the thrift employs some 3,000 people and operates out of 205 branches with assets totaling $19.2 billion. In Glendale, the institution operates out of a seven-building campus on Brand Boulevard and employs some 400 local residents.

“They have a lot of office space here, and a lot of employees,” said John Davitt, president and superintendent of the community college. “I’m hoping there isn’t a negative effect on downtown and the city.”

There was a time when Glendale Federal was a local bank with a local identity, said Mary Hamilton, a Glendale investment banker and 52-year resident. “But that changed years ago,” she said.

“They consider themselves an international business now,” Hamilton, 57, said. “This isn’t going to make much of a difference to the community. Glendale Federal has a history here, but it’s a global conglomerate now. In any case, the local economy is growing, coming back from the recession in 1992. We’re seeing new buildings go up and office space filled. Glendale will be fine.”

When it was announced Thursday morning that Glendale Federal would merge with San Francisco-based California Federal Bank, in a $2.5-billion deal, worry about layoffs quickly percolated through the city. Those worries were generally confirmed Friday, though the extent of the layoffs is unknown.

“Given the fact you have two banks that mirror each other’s operations, there’s a lot of overlap,” said Ken Preston, Glendale Federal spokesman. “You can expect some layoffs. I don’t know how many.”

On Thursday, inside the main branch’s spacious gallery less than an hour after the merger was announced, employees of the thrift wondered aloud about their future.

“I’ve been through mergers before at different banks,” said one teller, who asked not to be identified. “Usually there are layoffs. We’ll just wait and see what happens here.”

Her comments were met with nodding heads behind the counter Thursday, but by Friday, all employees had been ordered not to speak with the news media. Another employee who did speak, however, offered up his appraisal even more concisely: “Mergers are rarely good for the employees.”

“I worry about the people who work here,” said Joe Algara, as he sold newspapers from his uncle’s newsstand. The newsstand, right outside the double doors of the main branch, could not have opened without Glendale Federal’s help, he said.

“A lot of the people in there have been coming out with this look on their face like they’ve already lost their jobs,” Algara said. “They say they don’t know what’s going on. But the economy is strong here.”

But most everyone outside of the bank, long inured to mega-mergers in industries of all kinds, said life in Glendale will not suffer.

“Let’s face it, there’s a free market,” said Don Bandich, 53, who recently switched his savings account to Glendale Federal because of its low service fees. “If one bank offers crappy service, they won’t get customers. Glendale Federal didn’t get my business because they’re bad. So the new company will have to do the same.”

Glendale’s economy will probably not be hurt, because “we’re doing fine,” said Mayor Larry Zarian.

“But that bank took the name Glendale across the state and nation with pride. The loss of the name is sad.”