Second Washington bank plans local offices

Phil Levine

Tuesday, March 28, 2000 | 11:02 a.m.

A second Seattle-based bank is preparing to enter the financial fray in Las Vegas.

Washington Federal Savings, a cross-town rival of fellow thrift Washington Mutual Inc., is preparing to open its first Las Vegas-based branch in mid-June.

The bank's first local office will be located at 9340 Sun City Blvd. in Summerlin.

Washington Federal will arrive in Las Vegas only weeks after Washington Mutual opens the first 13 of its 21 Las Vegas branches.

Five Washington Mutual offices are slated to open next week.

Although Washington Federal cannot compete with Washington Mutual in asset size -- $6.2 billion vs. $190 billion -- bank representatives say that smaller size may prove to be an asset.

"We're an old-fashioned, traditional thrift," said Washington Federal Chief Executive Officer Guy Pinkerton. "We build our business on one-to-one relationships and develop customers one at a time.

"We're not a transaction-oriented institution. Our customers tend to be people who are looking for good, safe returns on their money."

Pinkerton said initial market reaction to the bank's first Las Vegas branch may spur Washington Federal to open "as many as five or six" local offices over the next two years.

Washington Federal Vice President and Regional Manager Pam Callahan said her company will place less emphasis on size and flair than larger banks such as Washington Mutual.

"We're not as splashy or as big as they (Washington Mutual) are, but instead we will rely heavily on high quality, personalized service," she said.

"That personalized service will be targeting individual customers -- particularly retirees as we do in Arizona -- as well as offering individual and family loan products."

Not that Washington Federal will be confused any time soon with a local community bank.

With 107 offices in five Western states, the bank has solidified its presence in several growing markets.

Prior to its Las Vegas arrival, Washington Federal's closest offices were located in Utah and Arizona.

In January, the thrift reported first quarter earnings of $27.4 million or 51 cents per share, compared with $28.3 million or 50 cents a share a year earlier.

As is the case with many other thrifts and banks, Washington Federal stock has lagged in recent months.

Company shares are currently trading in the $17 range, off sharply from a 52-week high of $25.

The bank's considerable loan activity is focused on individuals and families, rather than businesses.

Single-family mortgage loans make up about two-thirds of its loan portfolio.

Callahan said the Summerlin office would likely be the first of several Washington Federal branches to open in various sections of Las Vegas.

"We expect to grow our franchise in this area and are looking at the fast-growing Henderson area as the next market we may want to go into," she said.

Pinkerton added that he could foresee a scenario wherein Las Vegas served as the regional "launching pad" for Washington Federal growth in the Southwest.

"There are other nearby markets -- Reno, Phoenix and Tucson, for example -- where we could see opportunity for growth," he said.

"On a conservative basis, we may want to grow our franchise in the area, with Las Vegas serving as our regional launching pad."