Giants hang tight as weaker thrifts slide; Home Savings, Great Western still dominate rankings.

The past year has been one of slowing and consolidation for most of Los Angeles County's thrift industry, according to the Business Journal's List of the 25 largest Los Angeles County-based savings and loan associations (see page 42).

Retaining their top positions were industry leaders Home Savings of America and Great Western Financial Corp., among the cadre of giant, conservative S&Ls expected to increasingly dominate the market as weaker companies fall by the wayside.

Both companies, however, have trimmed sails with the turbulent economy. Home Savings, for instance, reduced its total assets by 2.7 percent to $47.8 billion between mid-1990 and mid-1991, compared to a 9 percent increase in the preceding 12 months.

And Great Western increased its assets by only 1.5 percent in the latest period, compared to growth of 7.7 percent a year earlier.

The next three institutions on The List, CalFed Inc., Glendale Federal Bank and Coast Federal Bank, have all been downsizing their operations sharply in order to comply with higher federal capital ratio guidelines.

The search for capital has also led Century Federal Savings & Loan, one of the county's few remaining mutual institutions where depositors own the institution, to convert to a shareholder-owned organization.

Gone from The List are several high-flying S&Ls that picked risky investment scenarios.

Most prominent among the institutions gone from The List is Columbia Savings & Loan Association, which invested heavily in junk bonds that soured with the slowing economy and the disappearance of a market for the bonds. The institution was seized by regulators March 22.

Other institutions on last year's List which have been seized by regulators include Progressive Savings Bank of Pasadena and Brookside Savings & Loan of West Los Angeles.

Valley Federal Savings & Loan continues battling to survive under new management. The S&L, which got into hot water with mobile home loans, has been profitable since it was realigned last year, but it is awaiting word from federal regulators about whether it will be allowed to continue operating.

In stark contrast to the retrenchment at most institutions, FirstFed Financial Corp., Pomona First Federal Savings & Loan Association and some others have taken advantage of their own good loan quality and the rising problems of others to boost their market shares.