By Kevin Herrera
Daily Press Staff Writer

NORTH OF WILSHIRE The lack of affordable housing is partly responsible for another business moving out of town.

First Federal Bank of California, the fourth largest Los Angeles-based financial institution, has announced that it will be relocating its corporate headquarters and bank office operations early next year to a facility near the Playa Vista development.

The flagship branch at 401 Wilshire Boulevard will remain and continue to serve the financial needs of Santa Monicans, said Babette Heimbuch, chairwoman and CEO of First Federal, which has been based in Santa Monica since its inception in 1929.

“The new location will make recruiting new employees easier because of more affordable housing in the surrounding communities than is available in Santa Monica and the surrounding Westside,” Heimbuch said. “This back office relocation allows us to consolidate our lending operations that are currently in Los Angeles with our back offices, including our call center and banking operations unit. This translates into increased efficiency and significant cost savings for the bank.”

In addition to the Wilshire offices, which will continue to be home to the bank’s wealth management and trust division, First Federal will continue with “business as usual” at the Santa Monica, Main Street, Montana and Sunset Park branch offices, and the bank vows to continue to be an active participant in the many Santa Monica and Westside charitable and civic projects it currently supports. Those organizations include the Boys & Girls clubs, YWCA and Wise Senior Services.

The bank is planning to relocate in the Spring of 2008.

First Fed has 33 banking branches in Southern California and five additional lending offices in both Southern and Northern California.

kevinh@smdp.com