EDITORIAL\F.I.B. R.I.P.\First Interstate's takeover by Wells Fargo is an unsettling sign\of the times.

IT'S hard to generate much enthusiasm for Wells Fargo's $11.6 billion hostile takeover of First Interstate Bancorp, the last major bank company based in Los Angeles.

As we pointed out when Wells began staking its claim last year, the merger was certain to result in thousands of lost jobs and shuttered branches. Now the grim totals are in: Wells plans to eliminate up to 85 percent of First Interstate's 5,900 California jobs and close 350 of 450 branches.

"You can't sugarcoat it," said First Interstate Chief Executive William Siart."

While the deal does represent a huge bonanza for First Interstate shareholders, who stand to make around $50 more a share than when the original offer was made in October, it's arguable whether Wells' shareholders will be similarly rewarded - especially over the long haul. Ironically, Wall Street has been lukewarm about the deal; while it provides Wells with added visibility throughout the West, some analysts question whether the premium being paid will dip too deeply into the bank's future earnings.

It should be noted that First Interstate has been a tempting - and often-mentioned - target for years. Given the banking industry's ongoing consolidation, it was inevitable that sooner or later, First Interstate would succumb.

It's just too bad that the winning bid didn't come from a bank with little or no presence in the Los Angeles area - a circumstance that would have resulted in far fewer branch closings and layoffs.

Clearly aware of the concerns, Wells announced that it will have dual headquarters in Los Angeles and San Francisco (though San Francisco will remain home to the top executives). In addition, the bank has pledged $45 billion over the next 10 years for low-income areas, including $25 billion for small businesses. That's the largest such commitment ever made in the banking industry and 2-1/2 times the size of the community lending pledged by New York's Chase Manhattan as part of its merger last year with Chemical Bank.

An impressive start, to be sure. We would expect Wells to make good on those commitments, well after the takeover hoopla dies down. While it won First Interstate the old-fashioned way - with more money - the bank has a responsibility to provide the same level of service as when First Interstate was in town. If it fails to deliver, there are plenty of small to mid-size banks in the area only too happy to fill the void.