Los Gatos Weekly-Times

Washington Mutual decides to merge its two local banks

By Jeff Kearns

In the wave of mergers and acquisitions sweeping through the banking industry, two Los Gatos banks, both on the same block, turned up under the ownership of a third bank last year, Seattle-based Washington Mutual.

In November, Washington Mutual announced that the Great Western branch would remain open and the American Savings branch would close.

Last week, however, Washington Mutual announced that the branch of Great Western Savings at 449 N. Santa Cruz Ave. will close, and operations will be combined with American Savings, located across the street at 400 N. Santa Cruz Ave.

Washington Mutual acquired both banking chains last year, and the Los Gatos American Savings branch will change its name to Washington Mutual sometime in April. Great Western will close its doors in May.

Calls to regional offices of both banks were referred to a Washington Mutual spokesman in Southern California, Tim McGarry, who wouldn't comment on the nature of the reversal, except to say that there have been a number of changes.

"Generally, branch administration people look at both branches and examine the advantages and disadvantages of each," he said. McGarry identified accessibility, traffic, parking and space available for safe-deposit boxes as the usual criteria.

Marilyn Johnson, now the manager of both Los Gatos banks, says that the American Savings location, where she works now, was selected for a variety of reasons. "We occupy a prime corner in town, and this building is larger, which allows for more room for staff and safe deposit boxes," she said.

Some customers are upset about the switch.

"I've been banking at Great Western for 12 years, and it's great for parking," Monte Sereno resident Dianne Brun said. "The other building is just terrible. Most of the people I know who bank [at Great Western] aren't going to continue banking [at American Savings] because of the parking."

Washington Mutual, after both mergers, has 850 branches in the western U.S. and Florida and will continue to consolidate branches throughout 1998 and 1999.

The merger so far has resulted in 200 to 300 layoffs, McGarry says, but none are planned for Los Gatos, according to Johnson. "We need all the staff," she said. "The employees at both branches have been working overtime for a while now, and we don't want to lose anyone."

Heidi Krueger, formerly the branch manager at Great Western, left her job after accepting a severance package.

Washington Mutual is currently in the process of closing 85 Great Western and American Savings banks in California. Most closings are scheduled for the second quarter of 1998, including five Great Western branches and four American Savings branches in Santa Clara County.

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