Longtime Spokane bank executive John Wagner has been named president of Spokane Valley-based Farmers & Merchants Bank, where hes charged with expanding the bank aggressively.


Wagner, 53, retired last month as president of Bank of Americas Eastern Washington region. He began his career with Seattle First National Bank here in 1977, and rose through the ranks as the bank became Seafirst, then was acquired by Bank of America.


He succeeds Jerry Layman, Farmers & Merchants president of 30 years, in his new position. Layman now shares the title of vice chairman of the company with his son, John R. Layman.


In the coming year, Farmers & Merchants plans to open two new branches and expand its work force by 21 percent, to about 155, Wagner says.


The bank hasnt identified locations for the two new branches yet, but is looking on Spokanes North Side and in the eastern part of the metropolitan area, Wagner says.


Jobs will be added throughout Farmers & Merchants operations, including in commercial lending, retail banking, administration, and information technology, Wagner says.


We made a commitment in the strategic plan to grow, Wagner says of Farmers & Merchants expansion plans. We are very focused on having a greater presence in the Inland Northwest.


That could include expansion to North Idaho sometime in the future, he adds, although there are no immediate plans for that.


Farmers & Merchants expected this week to open a new branch at Wandermere, on the North Side, and by Dec. 1 to open a branch inside a Safeway Inc. store at Shadle Center. With those additions, it will have eight freestanding branches and eight in-store branches in the Spokane area.


As of Oct. 31, it had assets of just over $300 million.


Wagner attributes part of Farmers & Merchants growth push to a passing of the management torch at the bank. Farmers & Merchants longtime chairman, August Klaue, died in 2002 and was succeeded by his son, David Klaue.


Wagner says of the younger Klaue and Layman, They view the business very consistently with their fathers relative to community reinvestment, but they are the next generation, and the next generation usually brings new desires and dreams. Together, were going to take the bank to the next level.


Farmers & Merchants is having a good year financially, with net assets and deposits both up about 14 percent in the first three quarters of the year compared with the year-earlier period. Loans grew by 19 percent.


Wagner says the bank is on track to boost its net income by 21 percent this year, compared with 2002.


I can tell you, were well capitalized and have money to invest in the community, he says.


Wagner says that as soon as word got out earlier this fall of his impending retirement from Bank of America, he was contacted by a board member at Farmers & Merchants who asked him if hed be interested in the job at the bank.


I decided I still needed to do some things in life, he says of his decision to continue working, and one of those things was to work for a small, community bank.


Ric Odegard, Wagners predecessor at Bank of America, also joined Farmers & Merchants after leaving the bigger financial institution. Odegard first worked for Farmers & Merchants as a consultant, then as its chief operating officer. He remains on the banks board.


Kurt Walsdorf has been named president of Bank of Americas Eastern Washington operations, succeeding Wagner. He has worked for Bank of America since 1984, and has held management positions in its commercial-banking operations in Spokane and Yakima.