Southland thrifts, banks scoop up First Interstate executives.

L.A. COUNTY - In the wake of the takeover of L.A's biggest and most profitable bank, local thrifts trying to become bank-like and local banks trying to drum up more business are scrambling to sign up former First Interstate Bancorp executives.

H.F. Ahmanson & Co. announced last week that it had hired Bruce G. Willison, former CEO of First Interstate Bank of California, as president and chief operating officer.

In addition, Chatsworth-based Great Western Bank hired former First Interstate retail banking head Jaynie Miller Studenmund and Beverly Hills-based City National Bank hired former First Interstate private banking executive Vernon C. Kozlen.

And the L.A. office of Big Six accounting firm Deloitte & Touche has hired Stuart Laff, former First Interstate corporate properties executive, as its new director of corporate real estate consulting services.

Willison's hiring was announced a week after the resignation of Fredric J. Forster, former president and chief operating officer of the Irwindale-based Ahmanson, parent of Home Savings of America. Forster decided to resign before Home tapped Willison, said Mary Trigg, Ahmanson spokeswoman.

The decision to hire Willison, a commercial banker, came as no surprise to banking experts, because Ahmanson in recent months has been loudly trumpeting its new strategy of making its Home Savings of America more bank-like.

Willison's appointment was one of four major hires of former First Interstate executives since San Francisco-based Wells Fargo & Co. completed its acquisition of L.A.'s biggest bank, First Interstate, on April 1.

Also last week, Great Western Bank announced that it had hired Studenmund, former head of retail operations for First Interstate Bank of California, to oversee retail operations in California and Florida for the Chatsworth-based thrift.

And another top First Interstate executive, Kozlen, former head of private banking for the L.A.-based bank, was hired by Beverly Hills-based City National Bank to manage its investment and private trust division.

Prime talent available

According to banking industry headhunters, a number of local financial institutions have been trying to snap up executives of First Interstate, which was considered by many banking experts to be one of the most profitable and best-run banks in the U.S.

Many First Interstate executives will be snatched up by other local financial institutions in the next few months, said Robert Rollo, president of R. Rollo Associates, a downtown L.A.-based executive search firm.

"There are a number of outstanding executives coming out of First Interstate," Rollo said. "You have to remember they are coming out of a bank that was sold for the highest premium ever paid for a bank in the U.S."

The Willison and Studenmund appointments are more evidence of thrifts seeking expertise to become more bank-like, banking experts said.

Jonathan Gray, analyst with New York investment firm Sanford C. Bernstein & Co. Inc., who has been somewhat critical of Home Savings in recent months, said he has heard "positive comments" about Willison.

"If you accept as a given that moving towards becoming a consumer bank is the right strategy - and I do not know if that is clear - then it would be very helpful to have someone with Mr. Willison's experience," Gray said.

Charlotte Chamberlain, analyst at L.A. investment firm Wedbush Morgan Securities, noted Studenmund and Willison worked closely together at First Interstate.

Rumors abound

There has long been speculation that Great Western and Home Savings may merge. Last week, some in the investment community were speculating Studenmund and Willison could initiate merger talks, Chamberlain said.

But Willison dismissed the notion: "That is a pretty good stretch of the imagination."

He noted a lot of First Interstate executives will land at local thrifts, and many of those thrifts happen to be the subject of merger and acquisition speculation.

Willison said his job is to help Home Savings CEO Charles Rinehart get the company's return on equity up to 15 percent.

He said he is also prepared to work on helping Home Savings to beef up its small business lending, a traditional bank operation that Home Savings has recently begun.

Studenmund said she would not have taken the job at Great Western if she did not think there was "a deep commitment" from CEO John Maher to make the company more bank-like.

Traditional savings and loans with a core business of making home loans and taking in long-term, high interest deposits cannot make enough money to satisfy shareholders, she said.

New culture sought

Studenmund said she plans to impose a more aggressive sales-oriented culture at Great Western. She also indicated there could be layoffs.

Banking sources said City National's hiring of Kozlen, who was in charge of First Interstate's division which served high net worth individuals was a coup for Russell Goldsmith, chief executive officer of the Beverly Hills-based bank.

Goldsmith has been very vocal in recent months about how City National intends to take business customers and high net individual customers away from Wells Fargo, which he predicts will drive customers away by providing impersonal service.

Kozlen said, "Clearly, we are prepared to take advantage of the disruption" that will occur when Wells Fargo integrates First Interstate's private banking division with its own.

He noted, too, that City National officials have committed to beefing up its investment and trust division.

Kozlen joined City National April 8, succeeding Charles D. Kenny, who resigned to pursue other opportunities, according to a City National statement.