With 1st Interstate gone, Sanwa wins title as L.A.'s biggest bank.

The banking industry's consolidation wave is evident in this year's List of 25 largest banks based in Los Angeles County.

The largest locally based institution is the downtown-based Sanwa Bank California, with $7.75 billion in assets as of June 30.

That's a far cry from the day when such industry giants as Security Pacific, First Interstate and Union Bank dominated not only the industry but the downtown skyline. In headier days, First Interstate assets exceeded $70 billion.

Some would argue that even Sanwa is not truly a local bank; it is only the legal outpost of Sanwa Bank Ltd., based in Osaka, Japan, the third-largest bank in the world.

It is, however, a state-chartered institution with its own books and accounting system.

Sanwa is well capitalized, and management is reviewing options for deploying that capital, including making acquisitions, according to bank spokesman Keith Karpe.

The second-largest bank in Los Angeles County is the Beverly Hills-based City National Corp., posting assets of $3.86 billion.

No. 3 is the Inglewood-based Imperial Bancorp, which had $3.08 billion in assets as of June 30.

L.A.'s proximity within the Pacific Rim is evident in the number of Asian banks on the top 25; no less than 10 reflect Japanese, Korean or Chinese management or ownership, including, Sanwa, the biggest local bank.

Among the most striking aspect of the List is the number of banks with growing assets and profits - an indication of an improving local economy.

Only two of the 25 banks had smaller profits in the year ended June 30 compared with the previous year, and only three reported smaller assets.

And either by acquisition or internal growth, many banks reported stellar boosts in assets and profits.

For example, No. 2 City National posted a 36.9 percent jump in assets, and a 40.9 percent leap in profits. No. 3 Imperial Bancorp enjoyed a 17.2 percent rise in assets and a 280.6 percent leap in profits.

Throughout the List, double-digit jumps in assets and profits are liberally sprinkled.

Given the wave of takeovers that have claimed many of Los Angeles' larger and older banks, many of the remaining banks are relative youngsters.

Sanwa was born in 1972, City National in 1954, and Imperial in 1968.

In the old days, such granddaddies as Security Pacific (1871) and Union Bank (1914) lent an aura of stability and continuity to the banking scene.

The oldest bank on the list this year is the Farmers & Merchants Bank of Long Beach, which was established in 1907. The baby bank on the List is Beverly Hills-based Republic Bank California N.A., formed n 1984.

Los Angeles banks appear to be well-capitalized, according to the rating system of Bauer Financial Reports, based in Coral Gables, Fla.

Every bank on the List exceeded the 3-star rating, meaning it met current regulatory capital requirements. Seven of the 25 banks had a five-star rating from Bauer (double the regulatory requirements for capital), and another 10 achieved the still-high four-star rating.