February 22, 2012 in City

Columbia Bank eyes move, faces suit

Building owner alleges breach of contract

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On Feb. 22, Columbia Chief Operating Officer Mark Nelson said that the bank made multiple attempts to sign a new lease. He said the bank met its deadlines and when negotiations didn’t produce a new agreement, Columbia found new office space.

Columbia Bank’s effort to escape a $91,000 monthly lease for its downtown Spokane branch has spurred a breach of contract lawsuit.

The Tacoma-based lender bought the best loan assets and bank branches of the failed Bank of Whitman last summer, and now wants to relocate its branch from the high-profile brick and glass building along Riverside Avenue between Wall and Howard streets.

Whitman, which had been based in Colfax, signed a 25-year lease in 2007 with BKW Spokane LLC, a company owned by businessman Robert Samuel.

Columbia took over in August, changed the signs, kept most employees and began competing for Spokane deposits and borrowers.

After making the lease payments and accepting sublease payments from other building tenants, Columbia notified BKW that it would move out in June after attempts to renegotiate the lease this year failed.

Columbia Bank now intends to occupy street level office space in the Fernwell Building a block to east, said attorney Bob Dunn, who filed the lawsuit on behalf of the building owner.

BKW seeks $20 million from Columbia, which did not respond to interview requests Tuesday.

Financial institutions that take over troubled or failed banks at the behest of the Federal Deposit Insurance Corp. are granted some special provisions allowing them flexibility to make changes such as renegotiating leases or moving.

Columbia’s takeover of Whitman gave it quick access to Eastern Washington’s banking business. Columbia also took over branch locations in Pullman, Colfax, Clarkston, Ritzville, Othello, Walla Walla and one in North Spokane.

One comment on this story so far. Add yours!

• 

  greenlibertarian on February 22 at 8:52 p.m.

  No surprise here.

  Could never understand why the Bank of Whitman EVER occupied such luxurious digs.

  Got a feeling there was some graft involved.