Asset growth at Western S&Ls; slowed sharply.

According to the Federal Home Loan Bank of San Francisco, assets of savings and loans in California, Nevada and Arizona grew at an annualized rate of only 2.6% in the first quarter of 1985. That compares to a growth rate of 30.5% for all of 1984. The steep slowdown reflects a greater regulatory emphasis on asset quality, the FHLBB said. These S&Ls; also had a savings outflow of $1.5 billion in the first quarter, primarily because of a decline of more than $3 billion in jumbo savings accounts of more than $100,000.