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InterWest expenses hit $11 million
"Oak Harbor-based InterWest Bancorp, Inc. announced Wednesday that it expects to incur $11 million in expenses for the quarter ending June 30. The estimated expenses include $2 million in severance agreements, $4.4 million in loss on the sale of securities, $2.5 million in conversion and integration expenses and $1.3 million of write-downs on real estate held for sale and development.The expenses resulted from a variety of factors, including the process of consolidating InterWest's 55 financial centers - which include Pacific Northwest Bank and Bank of Tukwila branches - into a single commercial bank; a recent change in executive management at InterWest; and an increased focus on providing commercial banking services.This consolidation and conversion process is very time intensive and is scheduled to be completed in the first quarter of 2001. However, it will be what our customers, shareholders and employees have been waiting for, said Patrick M. Fahey, InterWest's president and chief executive officer. These are important steps in InterWest's strategy to increase its emphasis on commercial banking with a single brand identity recognized throughout the Pacific northwest, Fahey said.The change in executive management started April 17, when Fahey was appointed president and CEO of InterWest Bancorp, Inc. and chairman, president and CEO of InterWest Bank while still maintaining his positions as chairman, president and CEO of Pacific Northwest Bank. In May, InterWest appointed Kim Brace executive vice president and chief administrative officer; David Straus executive vice president and chief credit officer; and Charles Foisie executive vice president and banking group manager. The new positions eliminated the need for some executive and senior management positions as well as various administrative functions, and InterWest will pay approximately $2 million in severance and incentive agreements, said H. Glenn Mouw, InterWest executive vice president and chief financial officer. "