PLAYING IT SAFE
Deposits Jump 14% at OC Savings and Loans in Debut Business Journal Ranking
By RAJIV VYAS
People are socking away more of their holdings in their local savings and loan, as they look for more safety than the stock market offers and slightly higher interest on their deposits than at commercial banks.
Thrifts operating in Orange County reported a 14% increase in deposits for the 12 months ended June 30, according to this week’s Business Jour-nal list, which ranks savings and loans by OC deposits.
That beat the year-earlier growth of 8%. Statistics were provided by the Federal Deposit Insurance Corp. and the Treasury Department’s Office of Thrift Supervision.
The 17 thrifts on this year’s list reported total deposits of $15.8 billion, up from $13.9 billion a year earlier.
No. 1 Washington Mutual Bank in Irvine repeated as the list leader, with deposits of $6.6 billion, a 20% increase vs. a year ago.
Its companywide assets grew 22% to $228.9 billion. The thrift dwarfs its OC competitors, with more than double the deposits of the No. 2 thrift.
Seattle-based Washington Mutual, the largest U.S. thrift, increased its market share of OC deposits to 42% from 37% last year. The S & L; didn’t add any new branches during the period, but its deposits per branch rose to $126.6 million from $106 million.
Washington Mutual boosted its workforce by 16% to 3,070 and plans to open another building in Irvine next year to house its growing staff.
The S & L; has been No. 1 on the list for the past three years. Acquisitions have been a big part of its local growth. It bought American Savings in 1996, Great Western in 1997 and Home Savings of America in 1998.
No. 2 World Savings Bank in Laguna Hills moved up a spot with 18% growth in deposits to $2.5 billion. The Oakland-based savings and loan didn’t open any new branches here,it has 19,but it has been aggressive in OC.
Last year, World Savings, a unit of Golden West Financial Corp., the No. 2 thrift in the U.S. behind Washington Mutual, boosted its deposits 28%. World Savings’ companywide assets grew 8% to $62.3 billion in the past 12 months.
No. 3 Newport Beach-based Downey Savings & Loan Association dropped out of the No. 2 spot with a slim 1% growth in assets to $2.2 billion. Downey’s total assets were up 3% to $11.1 billion.
The fastest-growing thrift was No. 8 Irvine-based Commercial Capital Bank, which moved up nine spots. Its deposits grew by 611% to $241.6 million. Last year the thrift also was the fastest growing, with a 203% growth in deposits.
Commercial Capital started as a mortgage company,FIP Mortgage,in 1998. In January 2000, the company acquired Mission Savings & Loan Association, a bank based in Riverside County.
Twelve thrifts posted an increase in OC deposits, with four declining. One S & L; was unchanged.
The biggest decline in deposits was at No. 11 Costa Mesa-based Pacific Premier Bank. Its deposits fell 26% to $89.7 million.
“We closed and consolidated” three branches, said Premier Chief Executive Steven Gardner.
There were no newcomers to the list, although three thrifts dropped off.
Last year’s No. 5 Fidelity Federal Bank and No. 9 People’s Bank of California were bought by California National Bank. No. 18 Sterling Bank & Trust closed its OC branch.
The thrifts together added 645 jobs in OC, an increase of 12% to 6,096. Washington Mutual, which accounts for half of the workers employed by OC savings and loans, added 413 workers alone.
The top-three institutions boosted their OC market share a tick, to 71% from 70%.
