Little Effect Expected From Bank Closures

CHATSWORTH —  While the concept of the ubiquitous bank branch may be going the way of the Pony Express, banking and economics experts predict that most San Fernando Valley consumers will still have ready access to cash and services.

Eleven Washington Mutual branches in the Valley and nearby communities are scheduled to close by mid-1999 as a result of that company’s acquisition of H. F. Ahmanson & Co., parent of Home Savings of America.

The consolidation follows a spate of similar merger-inspired branch closings, ranging from Washington Mutual-Great Western earlier this year to Bank of America-Security Pacific in the early 1990s.

Given their generally higher income and education levels, many Valley consumers are prime candidates for electronic banking, via the Internet or by telephone, experts said. And while many Valley branches have been shuttered, new ATMs and supermarket branches have sprouted to help fill the void.

“As far as consumer services, I don’t think the Valley is underserved,” said David Fleming, chairman of the Economic Alliance of the San Fernando Valley. “If it were, I think the private sector would step in.”

Bob Meyler, president of the United Chambers of Commerce of the San Fernando Valley, said he’s seen evidence of that ebb and flow along one of the Valley’s busiest financial strips.

“I’ve seen a lot of banks along Ventura Boulevard that have been closed because of a merger and the next day they open under a new name,” he said.

Although it may seem like branches are closing ever faster, figures from the FDIC show that the number of branches in Los Angeles County has held fairly steady over the past few years.

The 1,740 bank branches in Los Angeles County at the end of 1995 had dropped to 1,720 by the end of 1996 and 1,690 by the end of last year, figures show. That’s a change of slightly more than 1% each year.

One of the branches that Washington Mutual plans to close is on Riverside Drive in Toluca Lake, the Valley community with the greatest concentration of senior citizens--18%, according to 1990 census data.

That’s one of two segments of the population least likely to bank in cyberspace, the other being low- to moderate-income consumers, officials say.

For those consumers, experts said, the industry must look to alternative delivery systems, such as mini-banks set up in commonly accessible settings like schools and churches, and even bankers on wheels.

“We have a number of institutions [nationwide] that use mobile units, similar to a Winnebago, that provide services on designated days,” said Ronald Bieker, director of the consumer affairs division at the FDIC.

He said some institutions in the East have installed automated loan machines that function in much the same way as ATMs.

“So we’re really seeing institutions take a proactive approach to how they are going to deliver their services,” Bieker said. “We’ve had to move beyond brick and mortar.”

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Branches to Close

Here is a list of the 11 bank branches that Washington Mutual plans to close in the San Fernando Valley and nearby communities. The bank said all of the branches are about a mile or less from a surviving branch.

Home Savings

* 5671 Kanan Road, Agoura Hills

* 21816 Victory Blvd., Canoga Park

* 2045 E. Palmdale Blvd., Palmdale

* 301 S. Maclay Ave., San Fernando

* 18751 Ventura Blvd., Tarzana

* 10101 Riverside Drive, Toluca Lake

Washington Mutual

* 17851 Chatsworth St., Granada Hills

* 10201 Reseda Blvd., Northridge

* 8201 Van Nuys Blvd., Panorama City

* 13701 Riverside Drive, Sherman Oaks

* 12185 Ventura Blvd., Studio City

Source: Washington Mutual