Troubled Valley Federal Sells 9 Branches to S

Financially troubled Valley Federal Savings and Loan in Van Nuys said it completed the sale of nine branches with total deposits of $230 million to HomeFed Bank of San Diego for a profit of $4.5 million. Valley Federal declined to disclose the sale price of the branches, which are in Orange County, the San Joaquin Valley and the central coast area of California.

Valley Federal was slapped with tight government controls on Jan. 11, which prevented the S&L; from making any new loans because its capital levels have fallen well below federal standards. Valley Federal said the sale of the nine branch offices would reduce its operating costs by $2.7 million a year.