S & L

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Executive Summary

Of all the lists compiled by the Business Journal, the list of savings and loans in L.A. County has probably seen the most changes over the past few years.

After a furious wave of consolidation and a change of regulations that has prompted some thrifts to become banks, there are only 16 S & Ls; left in L.A. County. The 16th, Westcoast Savings & Loan, might have made the list, but was not able to provide information in time.

Last year’s No. 1 thrift, Home Savings, was bought out by Washington Mutual Inc., and Glendale Federal Bank, second on the 1998 list, was acquired by the parent company of California Federal. Combined, the two institutions were responsible for roughly $70 billion in deposits.

Savings and loans were originally started to promote home ownership and give consumers the opportunity to earn interest on their deposits. Banks were not given to loaning money for housing, concentrating mostly on commercial customers. Today, the differences are mostly academic.

Pacesetter

First Federal Bank, L.A. County’s biggest S & L;, has 24 branch offices, six loan offices, 550 employees and total assets of $3.6 billion. Founded in 1929, the institution has recently started expanding its services to become less a traditional thrift and more a full-service community bank.

“Our strategy is to stay small enough so that we are an alternative to all of the large mega-banks,” said Babette Heimbuch, president and CEO. “There are enough people out there who do not want to deal with a big huge bank and would much rather deal with a community bank.”

First Federal is in the process of entering an agreement to purchase Professional Bancorp Inc., owner of First Professional Bank, which would increase the thrift’s stability without, Heimbuch says, turning it into a huge, impersonal organization. “We call it niche banking,” Heimbuch said. “We are there for people who don’t want to fit into the big banking routine.”

While the thrift industry has experienced a strong year thanks to rising housing values, Heimbuch says it may be time for more caution in the mortgage lending business. “The concern that everyone has is that we have reached the top of the (housing) market,” she said.

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