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Executive Summary:

In past years, the Business Journal has listed the top 25 S & Ls; in L.A. County but as of this year there are only 20 left, so the list has been reduced to the top 15. Further reductions are imminent with the pending acquisitions of the two largest local S & Ls; left: American Home Savings by Washington Mutual and Glendale Federal by California Federal.

Rapid consolidation has become the norm in the thrift industry. Only last year, before becoming takeover victims themselves, Glendale Federal took over Cenfed Bank in Pasadena and Home Savings acquired Coast Federal Bank, the seventh- and third-ranked thrifts, respectively, on last year’s list.

Mergers and acquisitions aside, S & Ls; are becoming less distinguishable from commercial banks. Traditionally, S & Ls; served as depositories for consumer savings and provided home mortgage loans. Many of them now offer checking accounts and issue commercial and non-mortgage consumer loans.

The Pacesetter:

H.F. Ahmanson & Co., parent company of Home Savings of America, has been beaten at its own game. Last year, the company lost out to Washington Mutual Inc. in its attempt to acquire Great Western. Ahmanson proceeded to acquire Coast Savings instead, but in March the company announced that it had agreed to be acquired by Washington Mutual.

Seattle-based Washington Mutual has become experienced in integrating new banks into its fold. In the last decade, it completed 21 mergers and acquisitions. After integrating American Savings last year and Great Western earlier this year, the bank plans to convert Ahmanson’s operations in two stages. In the fourth quarter of this year, Ahmanson’s 40-plus branches in Texas will be converted, and in the second quarter of 1999 Washington Mutual expects to convert the California branches.

In all, Washington Mutual anticipates that between 160 and 170 branches and between 3,000 and 3,500 jobs will be eliminated as a result of the acquisition of Ahmanson. It will become the seventh-largest bank in the nation, based on combined 1997 year-end assets of nearly $150 billion.

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