This is a printer friendly page!
Independent
surveys show that West Coast Bancorp has very high customer and employee satisfaction
ratings, which are the necessary ingredients for successful organic growth
Financial
Regional - Pacific Banks
(WCBO-NASDAQ)
West Coast Bancorp
5335 Meadows Road, Suite 201
Lake Oswego, OR 97035
Phone: 503.598.3241
Robert D. Sznewajs
President and CEO
Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
Published - May
11, 2007
BIO:
Robert (Bob) D. Sznewajs, President & CEO, has more than 30 years of experience in the
banking industry and was named President & CEO of West Coast Bancorp in January 2000
after serving as Vice Chairman at U.S. Bancorp.
He earned a bachelor of science in accounting and a
master of business administration in finance from the University of Detroit and is a
certified public accountant.
Bob’s professional affiliations include Board of
Directors of the Portland Branch of the Federal Reserve Bank of San Francisco, Oregon
Bankers Association Board of Directors (OBA), Christie School Board of Directors,
Association for Corporate Growth (ACG) Board of Directors and Coinstar Board of Directors.
As President of West Coast Bank, Bob Sznewajs
oversees more than 800 employees and 60 branches throughout Oregon and Washington.
Company Profile:
West Coast Bancorp (NASDAQ:WCBO), one of Oregon Business Magazine's 100 Best Companies
to Work For, is a Northwest bank holding company with $2.5 billion in assets, operating 60
offices in Oregon and Washington. The company combines the sophisticated products and
expertise of larger banks with the local decision making, market knowledge and customer
service of a community bank.
CEOCFO:
Mr. Sznewajs, it has been almost two years since we have spoken. West Coast has been on a
growth strategy plan; how is that going?
Mr. Sznewajs: “The growth strategy plan
is going fine. We have had significant balance sheet growth, which has translated into
strong earnings per share growth. This year our first quarter earnings per share (EPS)
growth was 10% over the first quarter of last year. Our growth has been virtually all
organic with the exception of a small acquisition we made in mid 2006 with Mid-Valley Bank
in the Willamette Valley. We’ve grown organically by adding to our product set along
with people and new locations.”
CEOCFO: What brings someone to West Coast
Bank?
Mr. Sznewajs: “We believe that high
employee satisfaction and high customer satisfaction are the ingredients necessary for
successful organic growth.”
“We have very high employee satisfaction. It is
something that we monitor all the time. We’ve conducted an annual employee opinion
survey for five or six years now. That employee satisfaction is verified in the fact
through an independent third party. For four consecutive years, we’ve ranked among Oregon’s
100 Best Companies To Work For based on a direct survey from an independent party. We are
ranked against other companies our size, so it is not only an absolute, but is relative to
other companies in the area.
“We also have high customer satisfaction.
Greenwich Associates has conducted independent surveys of our commercial customers over
the last two years based on sales size below and above $10 million in the Portland
metropolitan area. In each of those surveys, we ranked as having the highest overall
business customer satisfaction of any bank in the Portland area.”
CEOCFO:
Are there one or two items both for the employee side and the customer side that are key
to the satisfaction?
Mr. Sznewajs: “No, it covers a broad
range of things, because customers look for a lot of different avenues. For example, our
customers are extremely happy with the local service they get in the branch. They are
extremely happy with the relationship officers that they do business with, and they
indicate that the level of accuracy in handling their financial affairs is very high. On
the employee side, the people like their jobs. They like the culture and, for the most
part, believe that things are fair and people are treated even-handedly.”
CEOCFO:
It is a matter of attitude, respect and how you treat everyone!
Mr. Sznewajs: “Yes, it is very
important that customers and employees know their value and that they are treated fairly
with respect and dignity. It doesn’t mean they have to like every decision, but they
do feel like they have a reasonable voice.”
CEOCFO:
Are there new products and services in the works?
Mr. Sznewajs: “We are going to add a
new website. That is an area where we have had a lot customer feedback. Our current
website allows customers to comment about our online Internet banking. Quite honestly,
they don’t give us very high marks for it; however, we have made some improvements
over the last couple of months. Customers can now see their transaction balance as soon as
they complete a point-of-sale transaction. We have devoted a lot of time and effort to the
website, have listened to what customers have had to say, and believe that the changes we
roll out over the next six to twelve months will go a long way towards enhancing customer
satisfaction as it relates to our website.”
CEOCFO:
What areas of your business are the most profitable for you and how do you grow in all
areas?
Mr. Sznewajs: “Profitability is usually
a combination of things. Our job is making loans, gathering deposits and handling
peoples’ affairs with a high degree of accuracy and in an efficient manner. The
pricing is a competitive environment set by the marketplace for deposits, home equity
loans, business and other loans, and it is our job to deliver a return to our
shareholders.”
CEOCFO:
Many banks have been having a hard time in the current interest rate environment. West
Coast is having less of a hard time; what are you doing differently?
Mr. Sznewajs: “I can only speak for us.
The financial goals that we set out for our shareholders are EPS (earnings per share)
growth of greater than 10% (we have actually done closer to 14% over the last three or
four years), and a return on equity in excess of 15%, which we have also exceeded. Our
goal is to manage the balance sheet and the income statement in such a way that we can
deliver sustainable, predictable returns to our shareholders. Our job is to manage both
through the interest rate cycle and the business cycle. We have to not only be aware of
the current environment from each of those, but also anticipate what that environment is
going to be and structure our resources and our balance sheet so that we can meet our
goals regardless of what is going on in those two cycles.”
CEOCFO:
What is the economy like in the area you serve?
Mr. Sznewajs: “We are blessed with a
very good economy. We have low unemployment, in migration and good rising values of real
estate, although not to the degree that some extreme areas have had (like San Diego, California
or Naples, Florida). It has been a balanced economy; we have had good growth and values,
a strong employment picture and the desire of people to live in the Northwest.”
CEOCFO:
Do you see the balance changing between commercial and consumer?
Mr. Sznewajs: “On the deposit side, our
deposits are basically split fifty/fifty between business and personal, which is a big
improvement from where we were four or five years ago. On the asset side of the balance
sheet, only 10% of our loans are to the consumer and that doesn’t include small
business, which is somewhere between personal and commercial because of the way people
operate. I am very pleased with the split we have.”
CEOCFO:
New branches for the future?
Mr. Sznewajs: “Yes. We have relocated
three branches and announced two new branches so far this year. I expect there will be a
couple more by the end of the year or early next year, so we will continue on with new
branches.”
CEOCFO:
Please tell us about the Coinstar machines that you are adding at your branches.
Mr. Sznewajs: “The coin counting
machines are very similar to what you might find in grocery stores. I am a director of
Coinstar (Coinstar Inc, Nasdaq-CSTR), so I have knowledge about the company. I very much
like the value proposition of putting the machines in some of our branches, which allows
customers to have their coins counted with no fee. With certain machines, customers can
redeem their coin for a gift card of some sort. In other cases, they get a voucher to swap
for cash or to deposit in their account. This is a service for small business as well as
consumers. Later this year, the small business customers will be able count their coins
and have the money deposit directly into their account without a voucher. The service is
helpful for our employees and it provides another branch service for the customer.”
CEOCFO:
Please tell us about community involvement for the bank.
Mr. Sznewajs: “A high percentage of our
people are very involved in their communities…the branches are probably in 35 or 40
different communities in Oregon and Washington. We run a decentralized model from that
point of view. We expect and encourage our people to be involved in the community, become
a community leader, contribute and represent the bank well. All regions have their own
marketing budgets to use at a local level; I want them to decide what they want to do,
which activity they want to support and become involved with.”
CEOCFO:
How do you maintain the personal touch as you grow?
Mr. Sznewajs: “It takes a lot of hard
work and dedication. We maintain a personal touch by interaction with people to determine
what they are thinking about things. Certainly, the employee opinion survey is a powerful
tool that we use and actively manage. Clearly, not every area of the bank has the optimal
survey results from our perspective, so we develop an action plan to work on the things
that need improvement. The senior management team is very involved and it is a high
priority for all of us.”
CEOCFO:
What should we look for in the next few years at West Coast Bank?
Mr. Sznewajs: “Our strategy is going to
be the same…to continue to grow organically. If an acquisition came along, we would
certainly look at it and be anxious to do it if we felt it was the right thing at the
right time; however, our strategy is not dependent upon an acquisition. We will continue
to opportunistically add new people, grow branches and enhance our products.”
CEOCFO:
Why should investors be looking at West Coast?
Mr. Sznewajs: “Investors should look at
us because of the financial goals that we have held for ourselves. We are doing greater
than 10% growth and earnings per share, delivering better than a 15% return on equity. If
that fits their investment style and what they are looking for, then I think we should be
a candidate. I think it is important that the interest of those shareholders be aligned
with the interest of management and the plan, and, obviously, to hold management
accountable to do what they say they are going to do.”
CEOCFO:
In closing, what should people remember most when they think of West Coast Bancorp?
Mr. Sznewajs: “Our employees view us as
a fun place to work, where they can make friends, enjoy the day and work as an opportunity
to grow both personally and professionally.”
disclaimers
Any reproduction or further distribution of this
article without the express written consent of CEOCFOinterviews.com is prohibited.
|
