All Smiles at Heritage Bank's Tigard Office

ARTICLE BY JOHN STEARNS

Heritage Bank is providing $7 million in financing for a new surgical center in the Beaverton area that will focus largely on dental and eye surgeries—a project that reflects a key area of expertise within the bank’s Tigard commercial banking team.

“When it comes to dental, our appetite expands outside of the Portland region, as we canvas all of the Northwest—Oregon as a whole state, Washington, Idaho, and we selectively entertain transactions outside of market from trusted sources,” said Chris Kane, senior vice president, who leads the commercial banking team for the Tigard Commercial Banking Center.

That’s because there’s so much dental practice expertise with individual bankers on his team, Kane said.

Those bankers include Amber Clark, senior vice president-commercial banking officer, who specializes in the dental and medical sector, and brings a strong track record in the health care field to her role; and Brandon Posey, senior vice presidentcommercial banking officer, who also focuses heavily on commercial real estate in multifamily, industrial, office, retail and construction, but who also has dental expertise. The surgery center is one of Clark’s projects.

The facility’s majority owner, a dental surgeon, plans to sublease extra space in the building to other medical surgeons for various specialty procedures, Kane said, estimating the center will have about 16 doctors.

Dental-related deals are largely practice acquisitions—one doctor buying out another who might be retiring, for example—but also include equipment loans and real estate purchases for new offices.

When a doctor acquires a practice, there are lots of moving parts; thus, financing that acquisition is a niche specialty for the bank, Kane said.

“Banks all like collateral and things they can kick the tires on, but with practice transitions, or acquisitions, it’s largely an intangible asset (i.e., the patient base), which is really what carries the bulk of the enterprise value,” he said. “You’re buying a recurring revenue stream and that’s not something that you can physically see or touch. So, if you don’t understand the industry or what separates a good fit from a bad fit when you’re talking about changes of ownership, you can trip up pretty easily, resulting in a sizable airball in terms of liquidation value.”

While dental and health care deals comprise the most transactional volume for the office, the most value is in commercial real estate transactions.

The Tigard team also arranged roughly $20 million in financing for an upscale apartment project just across the Columbia River in Vancouver. The project, near the growing waterfront, is nearing completion and will begin leasing in 2025, he said.

“It was pretty cool to have the Heritage Bank name on one of the bigger, more high-profile multifamily properties that was going in there to house some of that growth” occurring in Vancouver, Kane said.

Another feather in the Tigard office’s cap is the recent landing of a third-generation Portland company’s business, Kane said. In part, the auto-parts supplier was looking for a service-oriented bank with a strong focus on small businesses, he said, proud of securing the company’s trust and business.

The office is also in the process of bringing aboard a well-known nonprofit’s deposit relationship, which includes a small lending component, Kane said.

Kane highlighted those projects and clients (a surgery center, apartments, family-owned auto-parts supplier and nonprofits) as reflecting the Tigard team’s diverse expertise.

The Tigard commercial crew, in addition to Clark and Posey, includes Patrick Ridenour, vice president-commercial banking officer, with a focus on commercial contractors, financial advisory firms and CPAs; and Teresa Carpenter, vice president-relationship banking officer, with a focus on nonprofits, labor unions and community-based businesses.

The office is located in the Lincoln Center campus at 10300 SW Greenburg Road, Suite 180. Others in the Tigard office include Stephanie Kreiger, assistant vice president-credit analyst senior; Nicci Walker, assistant vice president-credit analyst senior; Lynne Toepfer, assistant vice president-credit analyst senior; Paige Rinde, loan production assistant senior; and Megan Raz, loan production assistant.

Kane, who has about 23 years in banking, the last six with Heritage, also brings a background in the dental sector and health care, plus the commercial and industrial sector and commercial real estate.

He encourages bankers to develop a passion about a certain sector and then immerse themselves in learning it.

“I think what I always try to impart on folks is that whatever you do, pick an industry and become proficient in that area,” he said. “It could be wineries; it could be contractors. You want to be viewed by customers and prospects as an expert. It establishes credibility with prospective borrowers when bankers take the time to dive in and understand their industries.”

That kind of knowledge helps differentiate banks that largely offer the same products and services, Kane said.

“When you have bankers that can all talk the talk with a borrower and really become a consultant because they understand their industry so well, that carries a lot of value, even more so than offering the lowest rate or fee,” he said.

Heritage’s bankers also have become immersed in passions outside the office.

Examples include Clark, who volunteers regularly with the Dental Foundation of Oregon, which provides free care to underprivileged youth. She’s also active in several local dental societies and Oregon Health & Science University’s School of Dentistry.

Posey volunteers at nonprofit organizations that include the Red Cross, Park Foundation and Oregon Food Bank.

Ridenour volunteers with Oregon Dog Rescue as a puppy foster parent and at the Oregon Food Bank.

Kane volunteers at Portland organizations including Metropolitan Family Services, Oregon Food Bank and Trillium Family Services. He also has served as past board president for both the Risk Management Association (RMA) and Oregon Golf Club.

Heritage Bank encourages employees to be active in their communities and to pick organizations with missions that are important to them personally. In turn, this empowers employees to play a vital role in helping the region to prosper, Kane said. “The bank promotes everybody following their passion.”

BUSINESS IN TIGARD BY THE NUMBERS

Major industries: Retail, health care, education, technology, clean energy and advanced manufacturing

Highest paying industries: Management of companies and enterprises, utilities and construction

Economy: Approximately 3,400 businesses employing around 45,000 workers

Major employers: Consumer Cellular, Gerber Legendary Blades, LaCie, NuScale Power, Stash Tea Company, Medical Teams International

Employment rate: 64.8%

Source: visitoregon.com

ABOUT OUR TIGARD COMMERCIAL TEAM

Combined banker experience: More than 62 years

Charitable giving in 2023: $15,750

Top nonprofits: Lines for Life, Northwest Utility Contractors Association, American Student Dental Association OHSU, Multnomah Dental Society, Clackamas County Dental Society

CONTACT OR VISIT

10300 SW Greenburg Rd, Suite #180 Tigard, OR 97223 (503) 924-2312

Brian Graham, Branch Manager

Brian started his banking career 20 years ago at a large national bank. Since joining Heritage, he's found more opportunity to connect with his community and build relationships with customers. He specializes in consumer and small business lending as well as team development. Outside of work, he supports the Oregon Food Bank and is learning how to cook Italian cuisine.