By PAUL MACOMBER

Former Western Bank executives John Anhorn and Rich Hieb are joining a new Bank of Southern Oregon holding company to expand the fastest-growing bank in Southern Oregon.

The pair left Western Bank two years after Washington Mutual acquired it in 1995; at the time they left they agreed not to compete with Washington Mutual for another year. That term ended Thursday night.

Anhorn will be president and chief executive of the new holding company; Hieb will be executive vice president and chief operating officer.

The holding company, to be known as Jefferson State Bancorp, remains to be approved by regulators and a vote of shareholders, scheduled May 14.

Hieb said Bank of Southern Oregon (BOSO) stock will be exchanged for Jefferson State stock. The stock closed at $12.63 a share on Friday, up $1.38 on the news. The stock has climbed 50 percent since a 3-for-1 split March 31.

The holding company will provide various opportunities for growth, the bankers said.

"We'll stick with basic banking, but we will be looking at non-traditional opportunities as well," Hieb said. "There are a lot of facilities in the area that are likely to become available in the next year."

Anhorn said there's no road map for acquisitions.

"In the past year, we've had a good opportunity to meet with a lot of people," he said. "We've had a chance to look at the other institutions. There's a lot of good competition in the valley."

John Duke, chairman of the BOSO board, said the new duo fit well in the organization.

"They share our customer-focused, community bank philosophy," he said in a news release. "At the same time, the board's goal is to build a bigger and stronger bank. John and Rich have the expertise and experience to do that."

Anhorn, 55, has 33 years of banking experience. In 25 years with First Interstate he held a number of executive positions, including Southern Oregon area manager. He was president of Western Bank for eight years. He's a 1960 graduate of Crater High School.

Hieb, 53, has nearly 35 years of experience in bank operations, including 18 years with Western Bank, where he was executive vice president and chief administrative officer. He spent 16 years with Idaho First National Bank.

The holding company concept is the brainchild of Mike Neyt, who will continue to be president of Bank of Southern Oregon.

"I'd rather be working with them than competing against them," said Neyt, who has done both and who will continue as president of BOSO. "I'm satisfied being the president of a good Medford bank."

Neyt worked with Anhorn when both were with First Interstate Bank. He subsequently founded Jefferson State Bank, which was acquired by First Interstate in 1989.