County banks shine in returns on equity and assets.

5 S&Ls, 5 thrifts and 13 commercial banks win accolades

Five stars were won by each of 23 banking and thrift institutions based in Los Angeles County for achieving in 1991 both a return on assets of at least 1 percent and a return on equity of at least 15 percent.

Five savings and loan associations, five thrift and loan associations and 13 commercial banks attained this lofty status, according to Santa Monica-based California Research Corp. data, reports President Salvatore Serrantino.

Mutual Savings & Loan Association of Pasadena racked up a stellar 2.70-percent ROA on $371 million assets and an 18.85-percent ROE. The S&L is a subsidiary of Berkshire Hathaway Inc., which has the highest share price (about $9,000) of any stock on the New York Stock Exchange and which is run by investing legends Warren E. Buffet of Omaha and Charles T. (Charlie) Munger of Pasadena.

Standard Savings Bank of Los Angeles earned a 1.90-percent ROA on $275 million assets and an 18.49-percent ROE.

First Public Savings Bank of Los Angeles earned a 1.47-percent ROA on $227 million assets and a 15.55 ROE.

Torrance Bank, a $166 million-assets state savings bank based in Torrance, earned a 1.21-percent ROA and a sizzling 25.22-percent ROE.

Malaga Bank, a one-office state savings bank that is very competitive at the local level in Palos Verdes, Serrantino noted, earned a 1.01-percent ROA on $151 million assets and a torrid 22.44-percent ROE.

Community Thrift & Loan Association, with $171 million assets in Monterey Park, earned a 2.93-percent ROA and a 29.78-percent ROE -- each a foot-stomping achievement. The T&L, Serrantino said, is 99-percent-owned by TELACU Industries Inc., which started as a heavily taxpayer-supported private institution called The East Los Angeles Community Union.

Southern Pacific Thrift & Loan Association, a $115 million-assets T&L based in Culver City, earned a 1.95-percent ROA and a 21.54-percent ROE.

Golden Security Thrift & Loan Association, a $35 million-assets T&L based in Alhambra, earned a 1.54-percent ROA and a 17.14-percent ROE.

Countrywide Thrift & Loan Association of Pasadena earned a 1.44-percent ROA and a 21.01-percent ROE. The $252 million-assets T&L is a subsidiary of Pasadena-based Countrywide Credit Industries Inc., Serrantino observed.

Imperial Thrift & Loan Association of Burbank earned a 1.39-percent ROA and an 18.05-percent ROE. The $400 millions-assets T&L is a subsidiary of Imperial Bancorp, the parent also of the $3.76 billion-assets Imperial Bank, Inglewood, which earned only an 0.16-percent ROA and a pallid 2.94-percent ROE, according to Serrantino.

Among the commercial banks, Founders National Bank, Los Angeles, earned a cheering 2.40-percent ROA and an outstanding 24.33-percent ROE. Founders National, with assets of $61 million, had been an unfortunate S&L before being converted to the biggest black-owned commercial bank in the L.A. area, Serrantino said.

Charter Pacific Bank, Agoura Hills, earned a heart-warming 2.30-percent ROA on $81 million assets and a 21.87-percent ROE.

Western Industrial National Bank, with assets of $48 million in South El Monte, earned a 1.97-percent ROA and a 15.49-percent ROE.

California Center Bank, Los Angeles, earned a 1.62-percent ROA on assets of $176 million and an ROE of 19.08 percent.

Pacific Western National Bank, with assets of $63 million in Pico Rivera, earned a 1.49-percent ROA and a 15.07-percent ROE.

Foothill Independent Bank, Glendora, earned a 1.46-percent ROA on $261 million assets and a 20.36-percent ROE.

Cathay Bank, Los Angeles, earned a 1.46-percent ROA on $749 million assets and a 16.10-percent ROE.

Santa Monica Bank, with $881 million assets, earned a 1.44-percent ROA and a 15.48-percent ROE.

General Bank, a Los Angeles-based bank with $789 million assets, earned a 1.42-percent ROA and a 20.70-percent ROE.

Hanmi Bank, Los Angeles, earned a 1.42-percent ROA on $274 million assets and an 18.76-percent ROE.

Far East National Bank, Los Angeles, earned a 1.37-percent ROA on $351 million assets and a 20.72-percent ROE.

First Central Bank National Association, Cerritos, earned a 1.28-percent ROA on $117 million assets and a 20.01-percent ROE.

Reviewing the results of the study, Serrantino cited "stellar performers" in every size group (except for the billion-dollar-assets group) and area.

However, one thing does pop out in the review, he said: the outsized proportion of superior-performing institutions that are controlled primarily by ethnic Asian, principally ethnic Chinese, shareholders. These institutions benefit from large spreads between the cost of their funds and their loan rates, Serrantino said, because strong customer loyalty permits the institutions to avoid price competition.