Office of Thrift Supervision

OTS Approves AIG Acquisition of American General Bank

WASHINGTON — The Office of Thrift Supervision today announced the approval of the application from American International Group, Inc. (AIG), New York, N.Y., the savings and loan holding company of AIG Federal Savings Bank (AIG Bank), Wilmington, Del., to acquire control of American General Corporation (American General), Houston, Texas, and American General Finance, Inc. (AGFI), a wholly-owned subsidiary of American General and parent savings and loan holding company of American General Bank, FSB (American General Bank), Midvale, Utah, and to merge American General Bank into AIG Bank.

In addition to approvals from other state and federal regulators, AIG required OTS approval for the change of control of American General’s federal savings bank in order to complete the acquisition, which was announced March 11.

OTS approval of the application is conditioned upon AIG Bank providing revised a business plan — including a plan for, at a minimum, successfully meeting its Community Reinvestment Act (CRA) responsibilities — within ninety days after approval of the application.

In addition, because the public has not had the opportunity to review a long-term CRA plan for the merged institution, the new plan will be subject to public notice and comment.

AIG has agreed to engage in a public review and comment period after submission of the revised business plan. If any commenter requests an informal or formal meeting on the new plan, OTS will grant such request at that time. This determination is designed to enable the public to have meaningful input on the CRA obligations of the merged institution based on its revised business plan.

AIG became a thrift holding company in December 1999, when OTS approved its application to charter AIG Bank.

In June 1999, American General and AGFI became savings and loan holding companies when they acquired Standard Pacific Savings, F.A., Newport Beach, Calif., and merged it with its Utah-based industrial loan company, American General Financial Center, creating American General Bank.

Upon consummation of the merger with American General Bank, AIG Bank will remain a wholly-owned subsidiary of AIG and AGFI will no longer be a savings and loan holding company. AIG Bank’s total assets will increase from approximately $610 million to approximately $731 million.

AIG, with assets at March 31 of $320 billion, is engaged through affiliates in a broad range of insurance and financial services activities in the U.S. and in approximately 130 countries and jurisdictions worldwide.

American General is one of the nation's largest diversified financial services organizations with assets of $124 billion at March 31. Headquartered in Houston, provides retirement services, investments, life insurance and consumer loans to more than 12 million customers.

AIG Bank does not plan to close any banking offices upon consummation of the subject transaction and plans to operate American General Bank’s offices as branch offices of AIG Bank. Upon consummation, AIG Bank will have the following banking offices — its main office in Wilmington, Del.; one branch office in Midvale, Utah (currently American General Bank’s main office); two branch offices in California (one in Newport Beach and one in San Clemente); and one agency office in Evansville, Ind.

The Office of Thrift Supervision (OTS), a bureau of the U.S. Treasury, regulates and supervises the nation's thrift industry. OTS's mission is to ensure the safety and soundness of thrift institutions and to support their role as home mortgage lenders and providers of other community credit and financial services. For copies of news releases or other documents visit the OTS web page at www.ots.treas.gov.

Created: Wednesday, 8/1/2001