Aggressive bank to expand in LV Valley

Phil Levine

Monday, Nov. 8, 1999 | 11:21 a.m.

Seattle-based Washington Mutual Inc. will create 200 jobs with its Las Vegas expansion.

Washington Mutual is the nation's largest thrift bank, with $180 billion in assets. Thrifts focus their attention on servicing the retail consumer market. Emphasis is placed on products such as consumer loans, mortgages and more recently, online banking services.

Strictly commercial banks are primarily focused on accepting deposits, used as checking accounts.

Washington Mutual Inc. today announced plans to enter the already crowded Las Vegas banking industry. The Seattle-based bank plans to open 20 branches in Las Vegas and Henderson starting next spring.

The company's flagship office will be in the burgeoning Summerlin area at the corner of West Charleston Avenue and Hualapai Way.

The country's eighth-largest financial institution, Washington Mutual is already a major player in the western United States and Florida. As of Sept. 30, the bank reported assets of $180 billion.

Company officials say Las Vegas, where they already operate a mortgage office, is ripe for increased competition. Deanna Oppenheimer, president of Washington Mutual's Consumer Banking Group, said research conducted by the bank revealed nearly 25 percent of Las Vegans are unhappy with their current bank.

Washington Mutual plans to build the new Las Vegas branches to reflect its "new retail banking concept." A concierge will greet visitors at the door and customers will have direct Internet access. The new branches also will feature children's play sections, casually dressed tellers, and retail sales areas featuring consumer financial products such as software and magazines.

Oppenheimer said Southern Nevada's impressive economy and population growth made it an attractive banking market.

"We looked very closely at several markets, and Southern Nevada's bustling economy, supportive business environment and vibrant community were exactly what we were looking for," she said.

Washington Mutual's foray into Nevada comes at a time of great tumult in the state's financial sector. Industry experts say the bank's arrival in Las Vegas may prove especially troublesome for the state's biggest banks, Bank of America and Wells Fargo.

"They (Washington Mutual) are a strong consumer bank throughout the West and have been very aggressive in their California expansion," said Joe Morford, industry analyst with Dain Rauscher Wessels. "One of Washington Mutual's big selling points is offering customers free checking. I'd say their most immediate competitors would likely be other large retail banks, such as B of A and Wells Fargo. But given their emphasis on service, they may also draw customers from smaller community banks."

By offering an array of free banking services, Washington Mutual raises the competitive bar for other large banks in the market. The bank also is a major player in the growing online banking sector, an area currently dominated by Wells Fargo.

Mergers and expansions have become the norm in Nevada's banking sector. Just last month, Wells Fargo and Norwest completed the merger of their Nevada operations. Bank of America is still smarting from investor and consumer criticism following last year's merger with Charlotte, N.C.-based NationsBank; by year's end, Salt Lake City-based First Security and Zions Bancorporation, owner of Nevada State Bank, are expected to complete their merger.

Recently, Washington Mutual has relied on both mergers and expanded services to increase its share of the mortgage industry. Last year, the company paid $9.9 billion to purchase H.F. Ahmanson, one of California's largest thrifts. In September, Washington Mutual announced it would begin selling more mortgage loans to the Federal National Mortgage Association.