www.oregonbankers.com
SPRING 2020
BANKING MATTERS A Publication of the Oregon Bankers Association
Trina Henderson of Willamette Community Bank delivering flowers to a local retirement community for Easter Sunday. See our feature story on the coronavirus pandemic on Pages 18-22. SPRING 2020 • BANKING MATTERS
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SPRING 2020 • BANKING MATTERS
CONTENTS
Banking Matters A P U B L I C AT I O N O F
Message from the OBA President.......................................................................................................4 Message from the OBA Chair..................................................................................................................5 Message from Synergy Chair..................................................................................................................6 Advocacy OBA Elected Officers Chair Craig Wanichek Summit Bank Eugene, Oregon Chair-Elect Jeff Sumpter Lewis & Clark Bank Oregon City, Oregon
Governor, OBA and CUs Promote PPP Opportunity .......................................................................7 Coronavirus Strikes. America’s Banks Step Up...................................................................................8 Acrimonious 2020 Legislative Session Ended as COVID-19 Crisis Reared Its Head...........................................................................................................9 State Treasurer Headlines Program During Oregon Bank Executive Exchange........... 10
Oregon BankPAC 2020 Elections Are Fast Approaching – Support Oregon BankPAC Today.....................11
Resourcefulness Amidst Challenges............................................................................................. 13 Education 2020 OBA Education Programs: Past, Present and Future....................................................... 14 OBA Online Education Resources – Always Here When You Need It............................... 14
Secretary-Treasurer Gordon Zimmerman Citizens Bank Corvallis, Oregon
Counsel’s Corner A Bankruptcy Response to COVID-19: The Small Business Reorganization Act ....... 15
Peer Groups OBA Peer Groups Connect Bankers in Challenging Times........................................................ 16
SUBMISSIONS Banking Matters invites news items and editorials from members and partners of the Oregon Bankers Association. The editor reserves the right to refuse any advertising or editorial copy deemed to be unsuitable for publication. The editor reserves the right to set the publication date in accordance with the association’s needs. Send submissions to Andee Rose at arose@oregonbankers.com. POLICY Banking Matters seeks to reflect the banking news of Oregon and other news of direct interest to the Oregon Bankers Association. With the exception of official announcements, the Oregon Bankers Association disclaims responsibility for opinions and statements in Banking Matters, and does not seek to promote any product or service not specifically named as an OBA endorsement. This publication is designed to provide accurate information in regard to the subject matter covered. It is presented with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. ADVERTISING Please support our advertisers who help make this publication possible. For information on advertising in this publication, download the Banking Matters Media Kit at oregonbankers.com/publications or contact Katie Schubert at (503) 576-4118 or kschubert@oregonbankers.com.
Oregon Banks use PPP to Support their Small Business Customers.............. 18 Associate Member Directory................................................................................................................23 OBA Education Foundation.....................................................................................................................26 OBA Education Foundation Renews Partnership with University of Oregon...............26
Synergy by Association.............................................................................................................................27 Introducing Virtual Compliance Officer.................................................................................................27 Comfort Meets Community in an Environment Fueled by Innovation..............................28
Banking on Good Design...........................................................................................................................30 News & Notes Andrew Stolfi Appointed DCBS Director; Steve Gordon Named Chief of Regulation and Supervision at DFR...................................................................................................................................34 SBDC’s are Helping Businesses During COVID-19.........................................................................34 First Federal Announces Plans for New Three-Story Headquarters....................................34 OBA Members Named to List of 100 Best Companies to Work For..................................34 Oregon Pacific Bank Opens New Medford Branch........................................................................34 Banner Bank’s Cindy Meyers Honored as Hermiston’s Woman of the Year...............35
Cornerstones of our Communities Bank of Eastern Oregon Supports Schools with Mascot Debit Card Program..........36 Columbia Bank Provides $50,000 to Organizations Tackling Affordable Housing...36 JPMorgan Chase Teams Up with Schoolhouse Supplies to Donate Classroom Care Packages to Portland-Area Teachers.......................................................................................................36 Banks Support their Communities During the Pandemic..........................................................37
Bankers on the Move....................................................................................................................................38 Upcoming Events.............................................................................................................................................39
OREGON BANKERS ASSOCIATION 777 13th Street SE, Suite 130 Salem, OR 97301 (503) 581-3522 | fax (503) 581-8714 www.oregonbankers.com
SPRING 2020 • BANKING MATTERS
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MESSAGE FROM THE OBA PRESIDENT Bankers: A Force for Good
By Linda Navarro, President & Chief Executive Officer, Oregon Bankers Association
Hello Heroes, Yes, that’s you, Oregon bankers. I am beyond proud of our industry and the tireless work you have done to provide uninterrupted financial services during this pandemic. Your essential work has kept deposits safe, payment systems operating and loans flowing. From working the drive-thrus, to meeting with loan customers, to putting in round-the-clock hours processing Paycheck Protection Program (PPP) loans, bankers are seeing their customers through financial hardship. The work you do – now and always – is important, honest and critical to a healthy economy. That said, our work will never be done in educating influencers about this fact. Today more than ever we need to be bold in sharing the truth about our industry and the necessity of preserving a healthy banking environment in Oregon. A colleague recently shared with me the Sherlock Holmes quote: "Never theorize before you have data. Invariably, you end up twisting facts to suit theories, instead of theories to suit facts." This is sage advice whether investigating a crime or drawing conclusions during a global pandemic. Personally, it rings true for me when I think about the recent proposed policies and narratives that have surfaced to control and demand actions by banks that are not grounded in facts. From draft orders and legislation that propose mandating changes to existing commercial loan terms to claims that banks aren’t willing to work with their customers to modify loan terms are fueled by misperceptions, not facts. What is a fact is that this pandemic has been painful for families and businesses across the globe, including here in Oregon. We have all been working together – and must continue to do so – to weather the storm. Banks share the pain, as do the customers we serve. It is critical that our industry be allowed to continue working with our customers and communities to provide the personal support and individualized solutions that have the best chance of helping everyone survive and thrive. It is in our best interest to
do so, and most importantly, it is in the best interest of those we serve. This is what we have always done, and we must be allowed to continue to do it to help bolster economic recovery. Here is what I ask of you: 1. Keep doing what you always do. Most importantly, keep being the force for good that describes the 20,000+ Oregon bankers that take care of their customers and communities. 2. Amplify your voice in your community. Share how your bank has gone the extra mile, whether in PPP lending, special contributions to nonprofit and community organizations, loan payment relief, fee waivers, propping up COVID-19 emergency loan funds, and more. Consider sharing your story – and the facts that back it up – at your local Rotary or Chamber meeting. Tweet about it. Share it with a local lawmaker. How about writing a guest opinion piece or pitching a story idea for a local paper? Consider asking customers to share their experiences working with your bank. 3. Engage in banking industry advocacy. The very best voice for our industry is your voice. When local bankers take time to talk to their legislators and other public officials, the message is far more likely to penetrate. OBA is always here to drive industry advocacy, but please help us share the real story of the vital Oregon banking community. 4. Support the OBA. Participate in peer groups. Take advantage of our education programs. Respond to our calls to action and requests for feedback. Give to Oregon BankPAC. Give to the OBA Education Foundation. The facts are no doubt on our side. The problem is that facts only speak for themselves when they are heard. Let’s all do our part in spreading the word.
From our team to yours, thank you for tirelessly supporting your local communities!
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SPRING 2020 • BANKING MATTERS
MESSAGE FROM THE OBA CHAIR Lessons Learned From PPP, COVID-19 By Craig Wanichek, President & Chief Executive Officer, Summit Bank
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ou learn a lot about your team in times of stress. We were so proud of what we learned about our team during the very arduous Paycheck Protection Program (PPP) process. I also heard from bankers across the state that they too were proud and impressed by the work of their teams. Employees from large and small banks stepped up to provide billions of dollars in loans to save jobs and put people back to work. Our colleagues have worked tirelessly through this crisis to help businesses and nonprofits navigate this unprecedented time. Whether it was PPP, loan modifications or financial advice, Oregon bankers have been there to support our clients. Hopefully, this is a once in a lifetime event. However, we will all likely face additional emergency/disaster situations in the future. What can we learn from the last month or so? We employed the OODA loop decision-making process – Observe, Orient, Decide, Act. This strategy was developed by military strategist and United States Air Force Colonel John Boyd. It is a four-step decisionmaking process of assimilating available information and putting a quick decision in action. Then we do it again. As we all know, the rules and structure of PPP changed daily if not hourly. We did not always have the perfect or necessary information, but we still had to decide what to do quickly and act. The one thing that is a constant, as a volcano of issues, questions and challenges were flowing at us, is our values. Any decision had to be reviewed through the lens of our core values. If the decision was in alignment with our core values, we would act. There were many intractable events where the consequences of our decisions were simply unknown. Our core values gave us stability in a very unstable environment.
We have learned a great deal about what to do in the face of a crisis; whatever we face next, I know bankers will be there to step up and help.
We also learned a few things we should do to prepare for the next crisis. The pressure and around the clock intensity highlighted a few areas of opportunity at the bank. We identified certain roles or duties where we did not have the proper level of back-up or redundancy. Our communication strategy should have included communicating early and often with our other local professional firms. Working closer with CPA firms and law firms in the beginning of PPP would have saved time and laid a better foundation for firms to work from rather than, at times, getting separate and disparate advice. We also need to have established communication lines with local, state-wide and national political leaders. Being a voice in the process at all of the different levels is very important. As these leaders were promoting the activity or getting involved, they at times were also providing inaccurate information. As Linda knows, we were in constant contact with the OBA. OBA was an invaluable resource, then as it is today. All of the engagement we had with the American Bankers Association, Independent Community Bankers of America and National Association of Government Guaranteed Lenders were also imperative sources of detailed and timely information. We had a leadership strategic planning meeting at the beginning of March (which seems like a year ago). We discussed our outlook and strategies. On March 2, the U.S. had 6 deaths and 102 cases. During the meeting, I thought this COVID virus was a low probability, high potential impact event, and we just spent a little time discussing. I was 50% right . Luckily, we had established a strong disaster recovery plan that we were able to put into action immediately as we experienced changes. I hope future pandemics are truly very low probability and we get back to normal soon. I am very proud of our industry, in particular the front-line employees. The caring of bankers for their clients and communities was never more apparent. You read about the work of people on the front-line, and very rarely are bankers celebrated for the work they are doing every day to help our clients. We have learned a great deal about what to do in the face of a crisis; whatever we face next, I know bankers will be there to step up and help.
Another successful tenant of our response was constant communication. We established a core team around PPP and our COVID-19 response. In the beginning, the COVID-19 response team met at least daily if not more. Some of the meetings were short, but we got together to discuss any and all issues that we were facing as a group. We also communicated at a minimum of daily with all of the colleagues throughout the bank. We communicated extensively with our clients. We used our website, email, personal calls and social media. We contacted key vendors as they were facing as much uncertainty as we were. It was very important to know when the armored car was coming, or cleaning supplies, including toilet paper. You cannot take anything for granted. During the PPP process, we would leave our video conferencing going for hours at a time. If anyone had a question from anywhere, they could just ask everyone. Our colleagues from home would throw out a question, and someone else would answer.
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MESSAGE FROM SYNERGY CHAIR Synergy by Association Charts Course for Growth By Synergy Chair Trey Maust, Executive Vice Chairman, Lewis & Clark Bank
T
he tumultuous landscape caused by the coronavirus pandemic is a stark reminder of why industry advocacy is so critical to the future of our banks and our communities. OBA has been on the front lines ensuring that member banks are well represented in Salem and Washington, D.C. We would be hard-pressed to find a more dedicated and effective advocate. As OBA’s wholly-owned subsidiary, Synergy by Association is doing its part by forging ahead under a new three-year strategic plan finalized late last year. The plan includes three strategic priorities focused on Synergy’s role as a long-term source of income to the OBA. Following are Synergy’s 2020-2022 strategic priorities: 1) Grow existing partner programs 2) Launch new revenue-generating opportunities 3) Align structure and resources for maximum success Synergy is making strides in its efforts to grow existing programs. New state bankers associations have joined Synergy’s national programs, with more in the works. A new agreement with enhanced benefits has been executed with Shred-it for secure document and hard drive destruction. In addition to re-launching existing partner states on the Shred-It program, Synergy will be working in earnest to add new states to this program. While Synergy is intensely focused on program growth, its eyes are also fixed on identifying new revenue opportunities. There are a number of solutions working their way through Synergy’s due diligence process. Expect to see some of these very soon. Synergy is also exploring ways to offer solutions outside of its traditional endorsement model. Current events have necessitated new thinking about how we do business. This creates an opportunity for Synergy to deliver solutions that banks need to serve their customers in new operating environments.
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Last but not least, the Synergy team has recently been realigned for maximum effectiveness. Last month, Synergy made the following personnel announcements: • Andee Rose has assumed the role of Synergy’s senior vice president and is taking on additional leadership and business development responsibilities. She will continue to oversee OBA and Synergy’s marketing and communications. • Darrin Quillen has assumed the role of Synergy’s vice president. In addition to managing partner programs, Darrin will work closely with Andee on business development opportunities and will continue to assure quality service, growth and satisfaction with Synergy’s programs. • OBA and Synergy have hired Katie Schubert to serve as marketing coordinator. Among other things, Katie will provide support to Synergy’s partner programs and the organization’s marketing needs. In addition to Synergy’s talented team, Linda Navarro will continue to serve as Synergy’s President and CEO. Several OBA team members also support Synergy by Association’s operations. While we are pleased with the progress so far, there is more we all can do to advance Synergy’s priorities. As OBA members, please take a look at Synergy’s endorsed partners and see if there are more you could utilize. Adopting Synergy programs is an essential way to support OBA and banking advocacy as we navigate these unprecedented times. Visit www.synergybai.com/program-partners or contact Darrin Quillen at (503) 576-4116 or dquillen@synergybai.com for more information.
ADVOCACY Governor, OBA and CUs Promote PPP Opportunity
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s Paycheck Protection Program (PPP) lending slowed in May, over $100 billion in appropriated funds remained in the program. Oregon Governor Kate Brown took an interest in assuring some of the remaining funds made their way to additional Oregon businesses, particularly those that are in historically underserved communities.
The Governor’s first step was to call together a group of credit union and bank leaders to discuss the status of the program and outreach opportunities. Immediately following the discussion, her staff went to work with OBA and the Northwest Credit Union Association (NWCUA) to accomplish their multi-part action plan that included: • Issuing a joint press release between OBA, NWCUA and the Governor promoting the availability of PPP funds, which also linked to an updated list of Oregon lenders still taking PPP applications.
• Hosting a Zoom meeting with various business groups – including those representing businesses owned by people of color – to discuss PPP concerns, potential barriers and ways to raise PPP awareness and access. This also involved follow up communication with participating organizations. • Crafting and circulating a letter among the National Governors Association to secure additional signers. The letter was addressed to Treasury Secretary Steven Mnuchin asking for clarity in a number of areas related to PPP, including forgiveness terms. These efforts focused on assuring any Oregon business that was qualified and interested in a PPP loan was aware that they could still apply and join the more than 55,000 Oregon businesses that have received more than $7 billion in PPP funds.
• Engaging in an interview with the Portland Business Journal promoting the availability of PPP funds.
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SPRING 2020 • BANKING MATTERS
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ADVOCACY Coronavirus Strikes. America’s Banks Step Up.
By Rob Nichols, President & Chief Executive Officer, American Bankers Association
T
he world is grateful for all who have served on the front lines battling the COVID-19 crisis — the doctors and nurses who have put their lives at risk to care for the sick and dying as well as those who have kept our grocery stores and pharmacies stocked. These essential service providers are the pandemic’s heroes, putting the needs of others ahead of their own. There is another category of worker that also fits this bill. It’s the women and men who work for America’s banks. You, too, are first responders — not to the health crisis but to the economic crisis spawned by it. And if I could drive by your offices (home or otherwise) honking and holding up signs in appreciation, I would.
Your personal efforts, combined with banks’ institutional responses — waiving fees, offering low-rate personal loan programs, deferring payments and even effectively fronting customers their economic impact payments — demonstrate that banking is first and foremost about helping others.
As always, our efforts are carefully coordinated with the ABAState Association Alliance, which has never been more important or more valuable to the industry as a whole. For the first several weeks of the crisis, state association and ABA leaders held daily conference calls to discuss what banks were reporting from the front lines, identify solutions and relay needed policy fixes or guidance to policymakers. The flow of information was equally important in reverse. Sometimes the clarity we all needed from Washington was slow to arrive, but policymakers understood and appreciated that our appeals were solutions-focused and made in good faith. In fact, our most effective advocacy often involved direct phone calls, emails and texts to lawmakers, regulators and top Treasury and SBA officials, with public finger-pointing taking a back seat. ABA’s efforts throughout the crisis, like your state association’s, have been focused on ensuring you have what you need to continue supporting your institutions, customers and communities through this these extraordinary times. We deeply appreciate all of your efforts and are committed to supporting you as we work to rebuild the economy. Because every hero needs a sidekick, and we are proud to be yours.
Whether working from your main office or the kitchen table, in the first several weeks of the pandemic you extended critical lifelines to countless households and small businesses suffering from the loss of income resulting from stay-at-home orders. From the loan officer who learned that the trick to getting into E-Tran (the Small Business Administration’s portal for submitting Paycheck Protection Program applications) was to try at 2:00 a.m., to the staff who put in extra time to help customers needing forbearance or other accommodations and the employee disinfecting the ATM each day, you proved that serving your communities is not just your job, it’s your calling. Your personal efforts, combined with banks’ institutional responses — waiving fees, offering low-rate personal loan programs, deferring payments and even effectively fronting customers their economic impact payments — demonstrate that banking is first and foremost about helping others. America’s banks weren’t just deemed essential businesses by governors in state after state; they became essential partners in delivering massive amounts of federal government relief. Despite its faults, the SBA’s unprecedented PPP program — which in its first phase processed 14 years’ worth of SBA loans in less than 14 days — simply could not have been executed without banks acting as the middlemen. And thanks to the sophisticated payment system the industry has built over the years, banks have been key conduits for distributing — safely and quickly — tens of millions of economic stimulus payments to individuals. ABA has been proud to support you in your efforts and to tout publicly all you have done, as we did through aba.com/ CoronavirusResponse and the press statements, media interviews and digital ads that pointed people to that page.
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SPRING 2020 • BANKING MATTERS
Recognized for Our Work in Your Field Nine Farleigh Wada Witt Attorneys Serving Financial Institutions in Oregon Named as Best Lawyers® 2019 Mark Wada ● Brian Witt ● Brad Stanford Dean Sandow ● Kim McGair ● Mark McCulloch Kelly Tilden ● Marisol McAllister ● David Ludwig
121 SW Morrison Street, Suite 600, Portland, Oregon 97204 503.228.6044 • www.fwwlaw.com
Crisis Reared Its Head
ADVOCACY Acrimonious 2020 Legislative Session Ended As COVID-19 Crisis Reared Its Head By Kevin Christiansen, VP – Government Affairs Director, Oregon Bankers Association
T
he 2020 Oregon legislative session officially adjourned at 11:59 pm on March 8, 2020, although the session really ground to a halt in late February when House and Senate Republicans walked out over cap-and-trade legislation. With the walkout, the legislature lacked the votes necessary for quorums in each chamber. Under Oregon’s Constitution, two-thirds of each chambers members, must be present to conduct business on the House and Senate floors. Democrats held supermajorities of 38 to 22 in the House and 18 to 12 in the Senate but remained two votes shy of the constitutional quorum requirement in each chamber. While quorum-denying walkouts have been utilized by both parties in the past – most recently in 2019 by Senate Republicans to stop another cap-and-trade bill – this is the first session that adjourned because of a walkout. The bitter end to the session left legislators of both parties pointing fingers.
And Then There Were Three
The walkout came after three bills, of approximately 250 introduced, were voted out of both chambers. All other bills that did not move through both chambers died on March 8. The three bills that passed did not impact the banking industry, but OBA’s government relations team was busy all session tracking a variety of other bills that would have impacted banks and bank customers. Examples of these dead bills related to access to credit (House Bill 4033), the use of cash (House Bill 4107), technical changes to the corporate activity tax passed in 2019 (House Bill 4009), non-competition agreements (Senate Bill 1527) and real estate transfer taxes (House Joint Resolution 203). Other 2020 bills that died related to guns, mental health, forest management and more. Some of these bills may be re-introduced in a future legislative session. The bill at the center of the Republican walkout was the cap-andtrade proposal, Senate Bill 1530. While the cap-and-trade bill died when the session ended, several days later Governor Kate Brown took unilateral executive action and issued Executive Order 20-04, an order to address greenhouse gas emissions. Sector-specific caps on pollution, Clean Fuels Program modifications, higher energy efficiency standards for buildings and prioritizing climate action in state agency decision-making were among the topics included in the executive order. It is unclear, especially in light of the COVID-19 crisis, whether a special session will be called later in the year to again consider cap-and-trade legislation.
State Action and COVID-19
Like the rest of the country, Oregon has been grappling with the COVID-19 pandemic. Federal, state and local governments have taken a variety of actions in an attempt to address the impacts of this unprecedented health crisis. The situation remains fluid and changes continue to occur, sometimes with little or no notice.
Like the rest of the country, Oregon has been grappling with the COVID-19 pandemic...The situation remains fluid and changes continue to occur, sometimes with little or no notice.
At the state level, the Governor has issued a series of executive orders addressing social distancing and prohibitions related to mass gatherings (Executive Order 20-07); school closures (Executive Order 20-08); stay at home order and closure of certain businesses (Executive Order 20-12); a temporary statewide moratorium on residential and commercial evictions (Executive Order 20-13) and more. Most of these orders expire at the end of the current emergency or upon order of the Governor. Less definitive action has taken place on the legislative front. A special session may still take place to address issues related to the pandemic, but no plans are confirmed. In late March, the legislature established the Joint Special Committee on Coronavirus Response, a bipartisan and bicameral committee, to explore statelevel options to address the COVID-19 crisis. A variety of proposals have been considered; however, agreement on a final legislative package has remained elusive. The OBA team has been advocating on behalf of the industry as the legislature – and local governments - have considered a variety of ideas. Many of the concepts do not directly relate to banking, such as assistance for the healthcare community. Other ideas directly impact banking, like instituting a moratorium on commercial foreclosures. As negotiations persist, OBA will continue to actively represent the Oregon banking community and the customers we serve.
Thank You!
Thank you to all the bankers who helped with industry advocacy during the 2020 session and during the COVID-19 crisis. Whether it’s serving on a committee, testifying before the legislature, contacting a legislator or letting us know the benefits or concerns your bank has with a particular piece of legislation, we appreciate your help.
If you have any questions about the 2020 session, particular legislation or steps the state is taking to address the COVID-19 crisis, contact OBA’s Vice President and Government Affairs Director Kevin Christiansen at (503) 576-4123 or kchristiansen@oregonbankers.com.
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Oregon Bank Executive Exchange
ADVOCACY State Treasurer Headlines Lunch Program During Oregon Bank Executive Exchange
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rior to Governor Brown’s executive order limiting gatherings, OBA held its 2020 Bank Executive Exchange. Bankers from around the state spent the morning of March 6 in Portland engaged in small group discussions about current issues facing the banking industry. While COVID-19 and its potential impacts were weighing heavily on the minds of many participants, bankers also engaged in a robust exchange of ideas on topics like talent retention, technology, regulatory hot buttons and succession planning.
In addition to meeting with their peers, participants were joined by Oregon State Treasurer Tobias Read for lunch. Treasurer Read updated bankers on developments involving the Treasury and answered questions. The lively give-and-take highlighted issues such as the Oregon Treasury Short Term Investment Pool, the OregonSaves retirement program, financial literacy projects and more. The annual Exchange provides networking for bankers and informs the OBA on important concerns facing our industry. Far Left: Oregon State Treasurer Tobias Read delivers remarks during the group luncheon. Top Right: Bankers engage in group discussion on a variety of topics ranging from banking younger generations to board diversity to pandemic preparedness. Exchange participants receive a debrief on group discussions.
Left: OBA’s Kevin Christiansen with Gary Propheter, Bank of Eastern Oregon, and Kate Salyers, Citizens Bank. Right: Jamie Shulman, Northwest Bank, delivers a recap of his group’s discussion.
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SPRING 2020 • BANKING MATTERS
Oregon BankPAC is Needed Today
OREGON BANKPAC 2020 Elections Are Fast Approaching – Your Support of Oregon BankPAC is Needed Today W
OREGON BANKPAC FUNDS Raised as of March 31, 2020
ith our focus on COVID-19 response, it is easy to forget that other important events are still moving forward. But we can’t lose sight that we are still in the midst of an important election year. The leaders we elect in November will guide Oregon’s economic recovery.
$152,605
It is vital that the banking industry’s voice is heard in these elections, and BankPAC is a key mechanism. Funds are used to help elect officials who are open to engaging in dialogue on issues impacting banking and the broader Oregon business community.
$300,000
To have the most impact in the November elections, your strong support of Oregon BankPAC is needed now. Please join your peers and make a personal contribution today by visiting OBA’s website at www.oregonbankers.com/oregon-bankpac.
50.8%
Giving to BankPAC is easy, and many Oregonians who contribute to BankPAC qualify for a $50 per individual/$100 per couple Oregon Political Contribution Tax Credit. This is a dollar for dollar credit, not a deduction. Income limits on the tax credit impact only those with adjusted gross incomes above $100,000 for individuals and $200,000 for joint filers. Consult your tax advisor for more information. If you have questions about Oregon BankPAC, contact Jennifer Schubert at jschubert@oregonbankers.com or (503) 576-4126. Contributions to Oregon BankPAC are not tax deductible. All contributions are voluntary and will be used for political purposes; you may refuse to contribute without reprisal. Contribution levels are only suggestions. You may contribute more or less than the suggested amounts, and you will not be favored or disadvantaged based on the amount of your contribution or your decision not to contribute. Contributions from foreign nationals are prohibited. State and federal law requires us to use our best efforts to collect and report the name, mailing address, occupation, and name of employer of individual contributors.
Total Raised
2019-2020 Goal
of 2-Year Goal
Thank You!
2020
Community Applause Award co-sponsored by:
Look around Oregon bankers… There are heroes among you! Who are they? Which of your bank business customers go that extra mile to benefit your community? The Community Applause Awards, co-sponsored by the Oregon Bankers Association and Oregon Business magazine since 1996, are an opportunity for you to acknowledge the efforts of your for-profit Oregon business customers who play a significant role in their community. The winning company will be recognized at an awards luncheon where it will receive a commemorative plaque and $1,000 to donate to a nonprofit organization of its choice. A professional video will be produced featuring the company, an organization it supports and the nominating banker and will be presented at the awards luncheon. The luncheon will be held in conjunction with the Oregon Bank Leadership Symposium taking place December 7, 2020 in Portland. The winning company will also be featured in the March 2021 edition of Oregon Business magazine and the winter issue of Banking Matters magazine.
How to Submit a Nomination Visit oregonbankers.com/community-applause-award to submit your nomination online or use the form below. Please also submit a document highlighting the community activities in which your nominee has been involved during the past year. Nominations must be submitted by August 26, 2020. The banker whose nominee was selected by our independent panel of judges will be notified no later than September 20. Nominees not selected will receive a personalized letter and a certificate of recognition. Please limit your bank’s nominations to four companies.
NOTE: Before submitting this nomination, please confirm that you (nominating banker) AND the nominee (business owner or other representative) can attend the awards luncheon taking place December 7, 2020 in Portland. (Each bank is allowed up to four nominations. Please duplicate this form for any additional nominations.)
Your Name Bank
City
State
Zip
Your Email
You are Nominating
• Explain why you were motivated to nominate.
Nature of Business Business Owner Name
• Include testimonials and letters from public officials and nonprofits.
Business Phone Number
• Document any volunteerism by employees.
Business Contact Email Physical Address of Business City
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*Tips for a successful nomination: • Be specific. Detail what organizations and causes the business has supported.
Name of Business
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Oregon Bankers Association Attn: Katie Schubert PO Box 13429, Salem, OR 97309 kschubert@oregonbankers.com Fax (503) 581-8714
Your Title
Your Address
Your Phone Number
RETURN NOMINATIONS TO:
State
Zip
• List prior awards or accolades received.
Challenges
GUEST ARTICLE Resourcefulness Amidst Challenges
by Lindsey Adegbite Attorney, Sherman Sherman Johnnie & Hoyt, LLP an OBA Premiere Associate Member
Congratulations to
Roby’s
Furniture & Appliance
t may be an understatement to say that things have changed as a result of this worldwide pandemic. For most of us, both our personal and professional lives have changed. While some are facing lost jobs or a decrease in income, homeschooling our children, or experiencing the effects of the virus first-hand, others are on the front lines trying to minimize the impact COVID-19 is having on our health, livelihood and economy.
Recipient of the 2019 Community Applause Award
Among those on the front lines are the professionals who make up our financial institutions. Many banks are devoting tireless hours to help businesses by processing Paycheck Protection Payment (PPP) loans while being creative and innovative to find solutions for their customers. It is truly remarkable, and we thank you.
from your friends at Citizens Bank
Each day, new challenges arise for financial institutions in their effort to serve customers during these unique times. Often, the challenge is simply that we have never been in this situation – there is no precedent. One recent challenge is whether stimulus payments provided by the CARES Act are subject to garnishment. Governor Kate Brown issued Executive Order 20-18 to address the stimulus payment’s impact on Oregon garnishments. Despite this Order, there are still unanswered questions regarding the protection of garnishment from a U.S. government agency or a state child support enforcement agency as well as operational challenges for financial institutions. We hope that additional clarification will come in the future.
Citizens Bank is proud to partner with Roby’s Furniture & Appliance as we share their strong community focused corporate culture.
Another hot topic is how to notarize a document during remote work and social distancing. In order to conduct many types of business, a signature in front of a notary is required. However, with increased technology, the surge of people working remotely, and the need to discontinue most face-to-face business, notarization has become a challenge. The biggest obstacle in allowing remote online notarization is ORS 194.235 and the requirement that the individual making the statement or executing the signature appear personally before the notarial officer. For remote notarization to proceed, statutory changes may be needed. Stay tuned as this issue continues to be explored.
Since 1957, Citizens Bank has been committed to improving the communities where we live and work while supporting the continued prosperity of local businesses.
I
We anticipate many more opportunities for financial institutions to navigate changes in the way they operate and service customers while remaining nimble and resourceful. Sherman Sherman Johnnie & Hoyt looks forward to partnering with you as you navigate this time.
www.citizensEbank.com Member
FDIC
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OBA Online Education Resources – Always Here When You
EDUCATION 2020 OBA Education Programs: Past, Present, and Future
O
BA education programs continue to offer top quality training opportunities. When looking for education, please look first to OBA. Your bank’s participation in OBA programs provides vital support to the Association, allowing us to offer valued member services. With programs offered in both traditional classroom settings and online channels, there are a wide array of programs to meet your needs, including these 2020 programs:
The 2020 Executive Development Program kicked off in January with 21 students. Held monthly, a few sessions have been rescheduled due to Oregon’s Stay Home, Stay Safe policy, but students still have had the opportunity to connect with bonus virtual sessions. OBA held a BSA/AML Workshop in February in partnership with Synergy by Association partner Compliance Alliance. This interactive workshop provided a comprehensive overview of top industry concerns related to BSA/AML compliance. OBA’s Commercial Lending Boot Camp will be held September through November in Wilsonville if allowed. Providing the foundation to master commercial lending, these three intensive
two-day sessions dive into essential elements of building a safe and sound loan portfolio. Sessions include Fundamentals of Credit Analysis, Loan Underwriting, and Loan Review and Problem Loans. Each of these sessions are also offered a la carte. OBA’s Banking Fundamentals workshop will be held in Salem November 4 - 5. Whether you’re new to banking or just need a refresher, this program covers all the basics and give you the knowledge needed to succeed in the banking industry. OBA has partnered with OnCourse Learning and Total Training Solutions (TTS) to provide a full suite of live or on-demand webinars. For additional details and a current listing of OBA’s education programs, visit www.oregonbankers.com/banker-education.
Participants of OBA’s BSA/AML Workshop learned about the five pillars of BSA, CDD and beneficial owners, monitoring for high-risk activities, banking marijuana and hemp and convertible virtual currencies.
OBA Online Education Resources – Always Here When You Need It
W
hether you're working from home or in the office, OBA’s online education programs are here for you. Now is a great time to access these convenient training opportunities and take advantage of steep discounts available through May 31 through our partner Total Training Solutions (TTS), including:
• 25% off all recorded webinars with the use of discount code WebinarOD25 at checkout. • 60-day extension of the on-demand access period for all ‘Live Plus Five (Days)’ registrants. Be sure to register for OBA online education programs through the links provided in OBA in emails or through our website at www.oregonbankers.com/online-training.
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SPRING 2020 • BANKING MATTERS
Total Training Solutions (TTS), an OnCourse Learning company, is the leading provider of regulatory compliance webinars. TTS’ nationwide network of subject matter experts ensures quality training. OnCourse Learning offers a full suite of educational products including state and federally approved pre-licensing and continuing education programs, accredited course content, exam preperation tools, publications, e-books, events and a sophisticated and customizable learning management system and course-authoring tool.
COUNSEL’S CORNER A Bankruptcy Response to COVID-19: The Small Business Reorganization Act
By Erich M. Paetsch, Lawyer - Creditors’ Rights & Bankruptcy Attorney, Saalfeld Griggs, PC, an OBA Platinum Associate Member
I
n response to the COVID-19 pandemic that is drastically impacting the United States we know, many lenders are significantly increasing loan loss reserves.1 Recognizing that the economic impact of public health measures has rapidly pushed the U.S. into a projected recession, lenders are preparing for collateral damage to loan portfolios. Coincidentally, on February 19, 2020, the Small Business Reorganization Act of 2019 (SBRA) took effect. SBRA was a congressional response to concerns that most small business debtors filing bankruptcy face difficulty successfully reorganizing under Chapter 11 of the Bankruptcy Code. As a result, SBRA provides a new mechanism for small businesses to reorganize under the Bankruptcy Code: subchapter V of chapter 11. Because struggling small businesses impacted by COVID-19 may pursue relief under the SBRA, it is important for lenders to be familiar with this new option and how it impacts prior experience and traditional assumptions.
Eligibility To file for bankruptcy relief under SBRA, a small business must meet the definition and debt limits imposed by Congress. Any debtor engaged in commercial or business activities is eligible except those whose primary activity is the owning of single-asset real estate. SBRA permits a debtor with no more than $2,725,625 in secured and unsecured debt to seek relief under its provisions. However, in recognition of the need for bankruptcy reorganization due to the economic impact of COVID-19, Congress temporarily increased the so-called debt cap to $7,500,000 as part of the Coronavirus, Aid, Relief and Economic Security Act (CARES) through March 27, 2021. As a result, many more small businesses are now eligible for and may elect for SBRA treatment under the Bankruptcy Code.
Governance and Oversight SBRA retains many of the governance and oversight features lenders are already familiar with as part of a business bankruptcy. Like other business bankruptcies, the small business debtor remains a debtor-in-possession (DIP) under SBRA. This means the DIP continues to run the business during the bankruptcy and controls the property of the business. However, a unique feature of SBRA is that only the DIP has the power to file a plan of reorganization under SBRA. This effectively tilts the governance power in favor of the debtor and away from creditors. Without such powers, SBRA limits the impact lenders can have in objecting to the DIP’s preferred form and process for reorganization. Perhaps the single biggest change under SBRA is that a trustee will be appointed regardless of DIP status. This is a substantial change from many prior small business cases that lacked oversight or meaningful creditor engagement. The duties of a trustee under SBRA are familiar. They are like those of a trustee under Chapter 12 of the bankruptcy code, including conducting a meeting of creditors, collecting and distributing payments, etc. However, SBRA includes some important additional duties including that the trustee must appear at all status conferences and must “facilitate the development of a consensual plan of reorganization�.
Presumably, this provision is intended to improve the chances of a successful reorganization plan. As a result of COVID-19, the SBRA requirement of an independent trustee facilitating a mutually beneficial plan may benefit everyone working to find common ground and a successful reorganization story for less sophisticated small businesses. However, we have little guidance on what trustee facilitation looks like and what standards courts might impose upon the trustee and parties to ensure facilitation occurs.
Time Frames Unlike many business bankruptcies, SBRA imposes strict time limits for action upon the filing of an eligible bankruptcy petition. The court is required to hold a status conference within 60 days of the petition date to further the prompt resolution of the case and the DIP must file a report detailing its efforts to obtain an agreed-upon plan of reorganization by that time. The DIP also had a deadline to file its plan within 90 days of the petition date and cannot exceed five years in length. Each deadline is significantly quicker than prior requirements under the Bankruptcy Code.
Significant Changes Impacting Lenders The SBRA includes two major changes, among others, that lenders should note. Traditionally, proposed plans in Chapter 11 of the Bankruptcy Code must satisfy something called the absolute priority rule. Lenders are familiar with this standard because it requires a Chapter 11 plan to be “fair and equitable� to classes of impacted creditors. Litigation surrounding the absolute priority rule is commonly used by lenders to challenge treatment in proposed bankruptcy plans. SBRA completely eliminates voting or the absolute priority rule process removing these requirements to improve a lender’s position in a plan. Instead, lenders are left with a more general fair and equitable standard that is not further defined in SBRA. In addition, SBRA permits a DIP to modify or “cram down� a claim secured by the principal residence of the DIP in Chapter 11. This was not permitted before SBRA. As a result, individuals filing for bankruptcy under Chapter 11 who could not previously cram down a residential secured loan may now do so.
Conclusion As lenders anticipate the economic repercussions of public health measures used to combat the spread of COVID-19, inevitably borrowers will turn to the Bankruptcy Code. The recent adoption of SBRA is a new tool that many small businesses may pursue for relief from challenging economic conditions. Understanding SBRA and how it alters prior experiences and common assumptions about small business Chapter 11 bankruptcies is important to ensure a lender can react quickly to newly appointed SBRA trustee’s efforts to rapidly facilitate an acceptable plan of reorganization.
1 See Laura Noonan, “US Banks Brace for Financial Losses� Financial
Times, April 18, 2020.
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Committee terms of service are tw OBA member bank is eligible to pa member with their bank’s approva OBA’s Manager of Member Engag (503) 576-4126 or jschubert@ore
PEER GROUPS OBA Peer Groups Connect Bankers in Challenging Times By Jennifer Schubert, Manager of Member Engagement, Oregon Bankers Association
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t was great to see the smiling faces of bankers at OBA peer group meetings earlier this year when we could all still come together. As Oregon transitioned to “Stay Home, Stay Safe,” OBA peer groups pivoted to virtual meetings. These meetings have allowed us to continued to connect bankers during these uniquely challenging times. Meetings have focused on the industry’s response to COVID-19 with discussions on new programs to support businesses, loan relief, revised guidance, Allowance for Loan and Lease Losses impacts, branch operations, staffing issues, new leave policies and leave tracking requirements, electronic signatures, and of course, compliance with all of these changes.
OBA Membership Committees & Roundtables • • • • •
Agriculture Roundtable Bank Operations Committee Community Engagement Roundtable Compliance Roundtable Financial Institutions Security Task Force (FIST)
OBA committees and roundtables are here to connect bankers in both good and challenging times. For more information, visit OBA’s website at www.oregonbankers.com/peer-groups or contact Jennifer Schubert at jschubert@oregonbankers.com.
Members of the Bank Operations and Human Resources Committees participated in a valuable session about preventing workplace violence and recognizing and responding to early warning signs. They also discussed business resilience and efforts banks are taking to protect their teams and customers during the COVID-19 pandemic.
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• • • • • • •
Finance & Accounting Committee Government Relations Committee Human Resources Committee Lending Committee Marketing Roundtable Technology Committee Trust Committee
wo years. Any employee of an articipate as an OBA committee al. For more information, contact gement Jennifer Schubert at egonbankers.com .
PEER GROUPS
During their February meeting, the Finance and Accounting Committee discussed cybersecurity insurance and mitigating bank risk with Synergy Business Partner Ryan Hartzell of Hagan Hamilton Insurance Solution. Interested in learning more? Contact Ryan at (503) 565-3309 or ryan@haganhamilton.com.
The Trust Committee took a deep dive into marijuana and hemp exposure with Erich Paetsch and Shannon Martinez of Saalfeld Griggs. Special thanks to Saalfeld Griggs for stepping up to support Oregon banks by becoming OBA’s first Platinum Level Associate Member.
The Lending Committee enjoyed connecting with their peers after a group discussion on CECL implementation.
In addition to peer discussion, OBA peer groups play a vital role in reviewing legislation impacting banking. At their January meeting, the Lending Committee also considered bills being introduced during Oregon’s 2020 Legislative Session.
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Business Customers
Bankers all over Oregon are doing their part to help their customers during uncertain times.
Oregon Banks use PPP to Support their Small Business Customers By Tom Unger, ABC, APR, Fellow PRSA
T
he coronavirus whipped through Oregon consumers and businesses in March, April and May like a tornado, leaving in its wake illness, isolation, shuttered businesses and hundreds of thousands of layoffs.
The largest healthcare crisis of the century also, practically overnight, caused both a financial and a humanitarian disaster in our state. Deemed an essential industry, bankers kept working. The crisis became a shining moment for many members of the Oregon banking industry, especially when the Small Business Administration (SBA) rolled out the new Paycheck Protection Program (PPP) on April 3. The program provided forgivable loans to businesses so they could keep paying their employees and meet other expenses. In the first few weeks of the program, Oregon bankers worked tirelessly seven days a week to process as many PPP loan applications as possible for their customers.
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SPRING 2020 • BANKING MATTERS
The SBA had allocated the entire $349 billion initially budgeted for the stimulus loan program by April 16. According to an SBA report, Oregon banks provided 18,732 PPP loans totaling more than $3.8 billion in Round 1. Once an additional $300 billion in funds were authorized, Oregon banks got to work making another 35,00040,000 loans totaling more than $3.2 billion. “We are honored to be in such capable hands,” one Oregon PPP loan recipient emailed his banker. “Your teams have been proactive, caring, compassionate and reassuring to those of us navigating the various available programs. They have been instrumental in helping us make critical business decisions. This is community banking at its finest and a real-life example of putting people first.” While the crisis and the loan program continue to change daily, here are stories from six Oregon banks and four of their customers from that historic two-week period in April:
Heritage Bank Headquartered in Olympia, Wash., Heritage Bank has nine branches in the Portland metro area. It quickly made its branch lobbies accessible by appointment only and relied on its drive-throughs for most transactions, said President and CEO Jeff Deuel. “Most of our customers are understanding and appreciative of our efforts to keep them and our employees safe,” said Deuel. The emergency loan program “came on us quickly and without a lot of detail early on,” said Deuel. “At least half of the bank has worked on this to make sure we get as many of our customers into the queue before it runs out of money.” PPP was less about underwriting loans and more about getting the necessary customer documents to process them, Deuel said. “We had enough people to put on it. The number of applications was large for us, but not so large that we couldn’t get our arms around it,” said Deuel. “It was an opportunity for our industry to step up and provide the services that everyone needs in this environment. Banks are healthy, supportive and in a position to make things like PPP available to help people.”
The bank refined the process to the point where it could process and submit an application in one day. Heritage Bank worked with close to 3,000 PPP loan customers, just in Round 1, including Broadway Medical Clinic in Portland. The clinic had to lay off 30% of its staff when the number of patients seeking help dropped by twothirds, said Clinic Administrator Candy Chapman. The clinic set up tents in its parking lot to become among the first medical facilities in Portland to operate a drive-up virus testing site. When the crisis hit Oregon, Heritage Bank extended the clinic’s line of credit to fund its normal operations and helped the clinic apply for a PPP loan. “They told us exactly what we needed to send to them to get it through the system quickly and accurately,” Chapman said. It took only five days after the bank submitted the application for the clinic to receive its funds.
Left: Seattle Shellfish CEO Jim Gibbons.
The clinic is using the loan to gradually re-hire some of its employees and help fund health insurance for all its staff.
Right: Broadway Medical Clinic obtained a PPP loan with the help of Heritage Bank. The clinic set up a drive-up virus testing site in its parking lot. Photo by Baker Poulshock.
The Commerce Bank of Oregon A division of Zions Bancorporation, The Commerce Bank of Oregon has 21 employees. Its only branch is in downtown Portland. The team there worked around the clock to submit successful PPP applications for its customers, said CEO Mike Barr.
The bank’s customers include Seattle Shellfish, based in Shelton, Wash. CEO Jim Gibbons said he saw the crisis impact early because the firm exports 85% of its geoduck clams to restaurants in China. Orders from there stopped suddenly in late January.
“It was a lot of trial and error. It was a mess,” said Barr. “But we got $70 million in during Round 1, which is pretty good for a bank our size.”
To survive, Gibbons reduced his staff of 82 down to 20 by mid-March. The Commerce Bank increased his credit line and then banker Richard Glassman helped him apply for a PPP loan. It took less than a week to get the funds.
The key to success was submitting the applications one at a time instead of trying to automate the process, said Barr. Each one took about an hour and even a tiny mistake could slow it down, he said. “The phones were burning off the hooks,” said Barr, who has worked in banking for 30 years. “It was pretty overwhelming. I’ve never seen anything like this … The damage this has done to the economy is unbelievable. About 75% of our customers are negatively impacted by this.”
“They were super responsive and it worked out really well,” Gibbons said. “They’re very professional and they know what they’re doing.” Orders from China resumed and Gibbons was able to increase his staff to 52. Continued on next page...
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...continued from page 19.
Oregon Pacific Bank Florence-based Oregon Pacific Bank has been able to keep all five of its branches open and fully staffed, even though it has restricted its lobbies to appointment-only for many weeks, said President and CEO Ron Green. Oregon Pacific Bank has also reminded its customers of the many ways to bank, other than in person. But in the retirement community of Florence, a large percentage of customers have not yet embraced digital banking, Green Business owner Lisa Walter Sedlacek obtained a PPP loan with the help of Oregon Pacific Bank. Photo courtesy of Laurel Bay Gardens.
said. Some of the drive-up lanes there became plugged when clients with automatic deposit for Social Security wanted to check their account balances. In Round 1, the bank processed 470 PPP loans totaling almost $95 million for customers, despite the SBA and Treasury Department guidance changing daily, Green said. “Getting this money in the hands of these businesses has been our primary focus,” said Green. “I can’t tell you how proud I am to be a community banker because we are making a difference in people’s lives.” One of those businesses is Laurel Bay Gardens in Florence, owned by Lisa Walter Sedlacek. She operates a two-acre nursery and provides landscape installation and maintenance services. A drop in business caused Sedlacek to reduce the work hours of her 13 employees. Sedlacek worked with Oregon Pacific Bank to submit a PPP application online. It took only seven days for her to receive the funds. “It was an amazing process. In 31 years (of doing business), I’ve applied for loans many, many times. This was the easiest.” The PPP loan will enable Sedlacek to increase her employees’ hours back to normal. “We’re super fortunate to have Oregon Pacific as our bank,” she said.
Community Bank Like many banks, Community Bank was quick to offer its customers in Oregon and Washington a 90-day payment deferral on consumer and commercial loan payments, said President and CEO Tom Moran. The bank, based in Joseph, Ore., closed its branch lobbies and directed customers to its drive-up windows, online and mobile banking solutions.
“It was slow going at first. But once we understood the program requirements and refreshed our SBA credentials, the application submission process became easier,” said Moran.
“It’s been working fine now that both customers and employees are getting used to this arrangement,” Moran said.
Speaking to the negative conditions of the broader economy, Moran added, “Community Bank is secure and extremely liquid. Our balance sheet is appropriately positioned to face a crisis of this nature.”
Early on, the bank contacted deposit clients to remind them of the FDIC insurance safety features. It also encouraged customers to set up or use the many available options to quickly access their accounts.
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The PPP quickly became the focus for most of Community Bank’s small business customers. Requests for more information and loan applications from customers and non-bank customers flooded in.
SPRING 2020 • BANKING MATTERS
People’s Bank of Commerce “Our young employees will look back in 20 years and say, ‘You would not believe what we did,’” said Ken Trautman, president and CEO of this sixbranch bank based in Medford.
Mytinger worked with Knox to apply on April 5. The loan, which funded 10 days later, enabled him to rehire the six people and prepare the company for when business picks up again.
People’s Bank assigned its senior executives, along with its loan and bank operations staffs, to different locations. If the virus broke out in one spot, not everyone would be impacted.
“The People’s Bank staff have gone above and beyond,” said Mytinger. “They are the epitome of a community bank. I know their entire loan department has worked tirelessly through the last two weekends doing PPP applications and guiding and coaching customers.”
When the PPP started, the bank immediately started submitting loan applications. Early on, its 110 employees worked tirelessly to secure $61.4 million for 373 in the first round of funds.
Despite the challenging stiuation, bankers continue to work diligently to support their customers.
Continued on next page...
“That was critical for us and we feel pretty good about that,” said Trautman. “Right now, our biggest focus is getting our clients the aid that’s available, and we’re just about there.” One of those clients is John Mytinger, owner of a Medford firm that sells and services office equipment. With so many people working from home, the need for office equipment repairs or replacement dropped, he said. “On the 18th of March it seemed like someone turned off the lights,” said Mytinger. “By the 20th, it was a ghost town. It happened that fast.” Mytinger temporarily reduced his staff of 12 by half. His banker, Thomas Knox, later called him and asked if he had thought of applying for a PPP loan. John Mytinger of Office Tech in Medford.
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...continued from page 21.
Willamette Community Bank Based in Albany, this three-branch bank reduced the lobby hours of its Salem location and converted its Albany and Lebanon sites to drivethrough service only (except by appointment), said President and CEO Joan Reukauf. More than half of the 40 employees have been working from home, including Reukauf. Branch staff have worked part-time, on-call, and on a rotating schedule. Because they’re on call, the bank is still paying branch staff for full-time hours. Anyone working in a branch also receives hazard pay because of the risks. “Who knew a deposit slip would be considered hazardous material?” said Reukauf. The PPP was a “no brainer” because business customers needed the loans to survive, she said. The program was a challenge for many reasons, including the suddenness in which it was introduced and the lack of guidance for applying. It also initially took more than four days for bankers to be able to access the SBA portal to input loan applications, she said. “I won’t say it hasn’t been painful. It’s been very painful,” Reukauf said. Willamette Community Bank started calling its customers to reassure them about the bank and to assess their needs.
“We knew it was going to affect everyone,” she said. “This was a true test of community banks,” adding her bank saw a high demand initially for PPP loans. “Customers were anxious and worried. They were clawing at our doors,” said Reukauf. Reukauf has also worked to keep up her employees’ spirits. The team members use video conferencing to play Bingo and hold fun meetings, like weekly happy hours and “Coffee Houses”. The bank encourages everyone to drink a cup of coffee, virtually, with their co-workers and answer fun questions such as “What is the first thing you are going to do when quarantine is over?”
A Time to Shine
“Oregon’s banks have gone above and beyond in helping their customers weather the “Being apart from each other has been extremely difficult,” said Reukauf. “We’re just like a family. impact of COVID-19. This We keep each other lifted to make it through the dreadful crisis has helped day.” shine a spotlight on the crucial Banks are truly an essential service during a crisis, role banks fill in the economic said Reukauf. health of their communities and this state. Our hard-working “People will worry about three things the most in a crisis: shelter, food and money,” she said. “We bankers have become heroes want to be there to provide financial resources to their customers. I couldn’t be and advice. We are critical to the success of prouder of our industry.” customers who want to survive.” Tom Unger is an independent communicator in Milwaukie, Ore. He can be found online at NewsWritingPro.com.
Linda Navarro, President & CEO of the Oregon Bankers Association
Your ambitions are limitless—and your potential for growth should be too. For banking professionals eager to take their career to the next level, Willamette’s MBA program provides the opportunity to further your leadership capabilities, and gain the knowledge you need to tackle today’s challenges. Willamette MBA is pleased to partner with Oregon Bankers Association to provide a tuition discount to qualified applicants from member banks.
willamette.edu/go/oregonbanker
Ambition Welcome
Joan Reukauf
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MBA ’15
ASSOCIATE MEMBER DIRECTORY Synergy Endorsed Business Partner
OBA Platinum Member
OBA Premier Member
Abrigo
Cannon Financial Insttute
Spencer Thomas (706) 389-7623 sthomas@cannonfinancial.com www.cannonfinancial.com Member Since: 2019
Timothy J. Fransen (503) 219-3807 tfransen@cosgravelaw.com www.cosgravelaw.com Member Since: 2015
Allied Video Productions
Cascadia Search Group
D.A. Davidson & Co.
Libby Sharman (984) 242-2691 libby.sharman@abrigo.com www.abrigo.com Member Since: 2019
BrAd Steiner (503) 363-7301 brad@alliedvideo.com alliedvideo.com Member Since: 2019
Alpha Ledger
Manish Dutta (949) 887-2582 manish.dutta@alphaledger.com www.alphaledger.com Member Since: 2019
AuditOne LLC
Jeremy Taylor (949) 981-0420 jeremy.taylor@audit-one.com www.auditonellc.com Member Since: 2011
Ball Janik LLP
Gabe Weaver (503) 944-6141 gweaver@balljanik.com www.balljanik.com Member Since: 2018
BancAlliance
Brendan Hart (301) 232-5423 bhart@alliancepartners.com www.alliancepartners.com Member Since: 2019
BankMarketingCenter.com
Neal Reynolds (678) 528-6688 nreynolds@bankmarketingcenter.com www.bankmarketingcenter.com Member Since: 2017
Business Loan Store
Terry Painter (503) 376-7303 terry@businessloanstore.com businessloanstore.com Member Since: 2020
Stan Taylor (360) 474-5872 staylor@cascadiasearch.com www.cascadiasearch.com Member Since: 2013
Cherrywood Enterprises, LLC
Cosgrave Vergeer Kester LLP
Rory McKinney (714) 327-8800 rmckinney@dadco.com www.davidsoncompanies.com/dc Member Since: 2016
Delap LLP
Craig M Geisler (561) 508-7650 cgeisler@cherrywoodenterprises. com www.cherrywoodenterprises.com Member Since: 2019
Scott Williams (503) 697-4118 swilliams@delapcpa.com www.delapcpa.com Member Since: 2008
CliftonLarsonAllen LLP
James Oliver (206) 716-7344 jeoliver@deloitte.com www2.deloitte.com/us
Crystal Hernandez (425) 828-1536 crystal.hernandez@claconnect.com www.claconnect.com Member Since: 2018
Deloitte & Touche LLP
Member Since: 2019 Eide Bailly LLP
Commerce Street Capital, LLC
Mitch Rasmussen (208) 383-4767 mrasmussen@eidebailly.com www.eidebailly.com Member Since: 2012
Computer Services Inc. (CSI)
Patricia Kibbe (800) 878-6613 patti.kibbe@evergreen504.com www.evergreen504.com Member Since: 2015
Cook Security Group
Dean T. Sandow (503) 228-6044 dsandow@fwwlaw.com www.fwwlaw.com Member Since: 2004
Dory A. Wiley (214) 545-6804 dwiley@cstreetcap.com www.commercestreetcapital.com Member Since: 2018 Zaid Akhter (800) 545-4274 zaid.akhter@csiweb.com www.csiweb.com Member Since: 2015
Elysia Sprenger (503) 351-1262 elysia.sprenger@ cooksecuritygroup.com www.cooksecuritygroup.com Member Since: 2007
Corrigan & Company
Michael Corrigan (805) 963-2090 mcorrigan@corrigan-co.com www.corrigan-co.com Member Since: 2004
Evergreen Business Capital
Farleigh Wada Witt
FHN Financial
Trae Winston (901) 435-8757 trae.winston@fhnfinancial.com www.fhnfinancial.com Member Since: 2009 Continued on next page...
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ASSOCIATE MEMBER DIRECTORY Finastra
Todd Seydel (503) 274-7280 todd.seydel@finastra.com www.dh.com Member Since: 2013
Fiserv
Scott Arneson 425-931-2823 scott.arneson@fiserv.com www.fiserv.com Member Since: 2004
Foster Garvey PC
Jason Ayres (503) 553-3129 jason.ayres@foster.com www.foster.com Member Since: 2019
FPS GOLD
Jef Bosgraaf (801) 429-2253 jbosgraaf@fpsgold.com www.fpsgold.com Member Since: 2018
Haberfeld Associates
Jamie Orth (970) 520-9788 jorth@haberfeld.com www.haberfeld.com Member Since: 2018
Hagan Hamilton Insurance Solutions
Ryan Hartzell (503) 560-2075 ryan@haganhamilton.com www.haganhamilton.com Member Since: 2006
Harland Clarke
Michael Kelly (801) 608-2038 michael.kelly@harlandclarke.com www.harlandclarke.com Member Since: 1990
ICBA Securities
James L. Reber (800) 422-6442 jreber@icbasecurities.com www.icbasecurities.com Member Since: 2013
Independent Community Bankers of America
Brandy Smallbrock (320) 533-1467 brandy.smallbrock@icba.org www.icba.org Member Since: 2018
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SPRING 2020 • BANKING MATTERS
IP Services
Milliman, Inc.
Scott Alldridge (541) 343-5974 scott.alldridge@ipservices.com www.ipservices.com Member Since: 2010
Lawrence P. Daniels (206) 504-554 3larry.daniels@milliman.com www.salarysurveys.milliman.com Member Since: 2015
Kaufman, Hall & Associates, Inc.
Moss Adams LLP
Keefe, Bruyette & Woods
Mathew Wiseman (888) 370-5552 matt.wiseman@ncontracts.com ncontracts.com Member Since: 2019
Keenan & Partners
William Gardiner (503) 227-3816 bill.gardiner@nfp.com www.equiasalliance.nfp.com Member Since: 2012
KeyState Captive Management
NorthWest Construction Control Inc.
Jeff Wildenthaler (224) 724-3659 jwildenthaler@kaufmanhall.com www.kaufmanhall.com/software/ axiom-financial-institutions Member Since: 2019 Jeffrey J. Wishner (415) 591-5035 jwishner@kbw.com www.kbw.com Member Since: 2003
Tom Keenan (503) 705-6393 tkeenan@keenanandpartners.com Member Since: 2010 Josh Miller (702) 598-3738 jmiller@key-state.com www.key-state.com Member Since: 2015
Lane Powell PC
Kenneth R. Haglund (503) 778-2148 haglundk@lanepowell.com www.lanepowell.com Member Since: 2002
Lee-Built Construction
Bob Cross (541) 688-2042 bob@leebuilt.com www.leebuilt.com Member Since: 2008
Gabe Nachand (503) 471-1277 gabe.nachand@mossadams.com www.mossadams.com Member Since: 1987
Ncontracts
NFP Executive Benefits
Keith Schlemlein (253) 862-8780 keith@nwccinc.com www.nwccinc.com Member Since: 2009
NW Monitoring
Tom Finnerty (503) 460-7724 tom@nwmonitoring.com nwmonitoring.com Member Since: 2020
NWFA Trust & Brown & Brown Insurance
Loomis
Donna Losch (253) 396-5544 dlosch@bbtacoma.com www.nwfatrust.com Member Since: 2004
Miller Nash Graham & Dunn LLP
Isaac Mares (855) 337-6811 Ext. 12878 isaac.mares@officedepot.com business.officedepot.com Member Since: 2003
Tom Merrill (503) 232-2825 tom.merrill@us.loomis.com www.loomis.us Member Since: 2004
Stephen M. Klein (206) 777-7506 steve.klein@millernash.com www.millernash.com Member Since: 2004
Office Depot
Oregon Small Business Development Center Network
Mark Gregory (541) 463-5250 gregorym@lanecc.edu www.bizcenter.org Member Since: 2015
ASSOCIATE MEMBER DIRECTORY Partner Engineering and Science, Inc.
RLR Management Consulting Inc.
PayLynxs, Inc.
RSM US LLP
Robert Best (253) 572-7111 robert.best@rsmus.com www.mcgladrey.com Member Since: 2004
Margarita Castanon (651) 310-7394 mcastan2@travelers.com www.travelers.com Member Since: 1990
PCBB
Saalfeld Griggs PC
TSI - Reconveyance Services
Pearl Meyer
SHAZAM
Piper Sandler & Co
Sherman Sherman Johnnie & Hoyt, LLP
Michael Pereira (208) 717-9455 mpereira@partneresi.com www.partneresi.com Member Since: 2018
Sylvia Basso (503) 987-0343 sbasso@paylynxs.com www.paylynxs.com Member Since: 2019 Matt Helsing (415) 399-5826 mhelsing@pcbb.com www.pcbb.com Member Since: 2002 Greg Swanson (415) 651-4831 greg.swanson@pearlmeyer.com www.pearlmeyer.com Member Since: 2009 Adam Keefer (415) 978-5057 adam.keefer@psc.com www.pipersandler.com Member Since: 2005
Portland Business Alliance Andrew Hoan (503) 224-8684 ahoan@portlandalliance.com www.portlandalliance.com Member Since: 2013
Mitch Razook (760) 200-4800 mitch.razook@rlrmgmt.com www.rlrmgmt.com Member Since: 2018
Erich M. Paetsch (503) 399-1070 epaetsch@sglaw.com www.sglaw.com Member Since: 2001 Jason Lesteberg (866) 330-9063 jlesteb@shazam.net www.shazam.net Member Since: 2019
Kenneth Sherman, Jr. (503) 364-2281 ken@shermlaw.com www.shermlaw.com Member Since: 2007
Shred-it
Luke Johnson (360) 721-5119 lucas.johnson@stericycle.com www.shredit.com Member Since: 2009
Todd Organization
B. Wade Garber, CFP, CLU, REBC (503) 572-5463 garberw@toddorg.com www.toddorg.com Member Since: 2012
Travelers
Gary Enriquez (360) 637-4396 genri@trusteeservicesinc.com www.trusteeservicesinc.com Member Since: 2015
United Bankers’ Bank
Donna Blake (800) 752-8140 donna.blake@ubb.com www.ubb.com Member Since: 2008
vCom
Molly French (925) 415-2223 mfrench@vcomsolutions.com www.vcomsolutions.com Member Since: 2018
Vining Sparks
Joe Haley (800) 733-8594 jhaley@viningsparks.com www.viningsparks.com Member Since: 2017
Promontory Interfinancial Network LLC
Sortis Holdings Inc.
Tony Kullen(503) 479-8871 tkullen@wrightlegal.net www.wrightlegal.net Member Since: 2019
Qualtik
SUM Design Studio + architecture
For more information about OBA’s Associate Members visit web.oregonbankers.com/AssociateMembers.
Cricket Barlow (703) 292-3473 cbarlow@promnetwork.com www.promnetwork.com Member Since: 2007 Janet Hager (800) 503-1450 janet.hager@qualtik.com qualtik.com Member Since: 2019
Redhawk Network Security, LLC
Cynthia Aceves (503) 407-6218 cynthia.aceves@redhawksecurity.com www.redhawksecurity.com Member Since: 2018
Jef Baker (503) 512-5432 jef.baker@sortis.com www.sortiscapital.com Member Since: 2018
Matt Loosemore (503) 715-5847 matt@sumdesignstudio.com hwww.sumdesignstudio.com Member Since: 2019
TIB - The Independent Bankers Bank N.A. Deborah Nelson (707) 688-5200 dnelson@tib.bank www.tib.bank Member Since: 1990
Wright Finlay & Zak LLP
Not a Member? Learn more about Associate Membership and its benefits at www.oregonbankers.com/join.
SPRING 2020 • BANKING MATTERS
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OBA EDUCATION FOUNDATION OBA Education Foundation Renews Partnership with University of Oregon
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T
he Oregon Bankers Association’s Education Foundation has renewed its partnership with the University of Oregon. The renewal of this partnership signifies a three-year $60,000 investment dedicated to furthering academic and career opportunities for students in the commercial banking space and in attracting diverse students to the banking field.
The Foundation needs your support to sustain impactful programs like the one with UO. Donating is as simple as texting OBAEF to 44321 and following the prompts. The OBA Education Foundation is a 501(c)3 nonprofit organization. Donations to the Foundation are generally tax-deductible. Consult your tax advisor for more information.
Focused on growing the next generation of bankers, the OBA Education Foundation has been a partner with the University of Oregon’s Lundquist College of Business since 2011.
For more information about the UO partnership, see the Winter 2019 issue of Banking Matters.
A key component of the partnership has been the development and launch of commercial banking curriculum at the university. In the last year alone, over 175 students completed the course. A number of these students have gained employment at OBA member banks.
For more information about the Foundation, visit our website at www.OBAEdFoundation.org or contact OBA’s Lori Kaliher at (503) 576-4108 or lkaliher@oregonbankers.com.
SPRING 2020 • BANKING MATTERS
Introducing Virtual Compliance Officer Compliance Alliance Now Offering Shared Services for Compliance By Chance Williams, President, Review Alliance
T
he banking industry is constantly innovating and finding new ways to be competitive. This is especially true in smaller community banks. Bankers know how difficult it is to stay afloat in today’s regulatory landscape. Regulations continue to get more complex, and in smaller banks, compliance officers are wearing so many hats it can be challenging to keep up.
Key benefits of using a shared services model:
Small community banks have struggled to find, and/or retain qualified individuals to fill the role of compliance and/or BSA officers. This has resulted in many institutions finding themselves in a vicious cycle of training individuals for the job, just to have them leave for a larger institution that can pay a higher wage.
• • •
With more and more community banks having employees who are wearing multiple hats it can be difficult to give adequate training and time to each area of responsibility. Many times, this is due to the inability to hire from within the smaller communities or find the time to give adequate training due to the level of responsibilities. So how can we address these types of situations? Review Alliance is here to help! Our new Virtual Compliance Officer (VCO) program is the newest innovation to help banks with their compliance needs. Shared services have become the way of the future. VCO allows community banks to leverage knowledge outside of their local community and outsource the heavy lifting involved with compliance and BSA monitoring.
• • • •
• •
Qualified professionals Consistent coverage Employees can focus on core objectives Consolidation of information and reports for senior management Holistic and integrated analysis Transparency and continuous improvement A clear outline of responsibilities leading to more effective monitoring and reporting Standardized processes and procedures Labor cost reductions
If your compliance officer needs a helping hand, or if your bank simply has trouble finding someone to dedicate to the cause, a shared service model is a perfect solution.
Compliance Alliance and Review Alliance, part of Bankers Alliance, are co-owned by Synergy by Association and state bankers associations across the country. Find out how to partner with a trusted compliance resource that truly makes a difference by calling the Bankers Alliance Membership Team at (833) 687-0701 or by emailing info@bankersalliance.org.
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SPRING 2020 • BANKING MATTERS
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Environment Fueled by Innovation
CLACKAMAS COUNTY BANK
Comfort meets community in an environment fueled by innovation 28
SPRING 2020 • BANKING MATTERS
F
ounded in 1911, Clackamas County Bank is the oldest community bank in Oregon. Evolving from hitching posts and water troughs to interactive transaction machines, the bank has a storied family history that includes surviving the Great Depression and being home to the first female bank president in Oregon. But throughout the years, the bank’s Gresham branch outgrew its location, which was also rented.
Workspace Interiors leveraged the bank’s membership in the Oregon Bankers Association to receive additional discounting for this project through the Association’s endorsed program with Office Depot. In December 2018, ground was broken for the new 8,400-squarefoot two-story office with multiple amenities, and Workspace Interiors was there from the beginning. The new building nearly doubled the bank’s previous space in Gresham and was designed to accommodate investment property and casualty services as well as regular banking. In addition to space for current and future staff, the location features a twolane drive-through area, including automatic and interactive teller machines along with a community room and kitchen, which business and community groups can use for meetings and events.
RENDERING RESULTS, FROM START TO FINISH Because Clackamas County Bank hadn’t built a new facility in decades, having a consultative approach was essential. Workspace Interiors presented a variety of “good,” “better” and “best” design options to the bank’s stakeholders. The entire project was rendered in 3D color images of the actual furniture and finishes to help members of the project team clearly visualize the results so
that they could make informed and unanimous selections during each step of the project. These options were then provided to the bank’s interior design firm, SUM Design Studio + architecture. Workspace Interiors also provided specifications and handled all installation of the furniture, which included pieces from known brands such as OFS and ESI.
OPTIMIZING ENVIRONMENTS AND MAXIMIZING VALUE The partnership with Synergy by Association, Inc. along with presentations and ongoing interface from Workspace Interiors reassured everyone involved of the value that Workspace Interiors provided. This also allowed Clackamas County Bank to leverage a reserved manufacturing and shipping schedule. Workspace Interiors received the bank’s products and stored them locally to meet the bank’s opening date, which occurred four months after work began. During that time, weekly meetings were held in-person in Oregon, along with videoconferencing and phone meetings so that the bank could select components and elements that would help bring its new location to life. From design to build, every component of the project shared a singular focus: be inviting to the community and customers of Clackamas County Bank. With the addition of a large community room that includes amenities such as a full kitchen and outdoor deck with fireplace — as well as private conference rooms — the bank is now able to extend invitations to local nonprofits as well as to its customers to reserve and use these spaces.
“We hope everybody wants to use it,” said Julie Snell, executive vice president and chief information officer of Clackamas County Bank. “A lot of the nonprofit groups will utilize it and enjoy being there. We feel like giving back to community, so we wanted a nice place to hold meetings and events.”
INSPIRING INNOVATION THROUGH NATURE The new location is comprised of a central floor with the main branch area as well as offices and support spaces. Workspace Interiors provided custom solutions for the private offices. The second floor contains loan offices and the aforementioned community room. Off to the side of the community room, visitors can enjoy a large outdoor fireplace during cold months. Rainwater is collected over the entry canopy and flows down the face of the building in an open downspout manner, so visitors can actually see the water going into the rain garden. Clad with 80% brick, light gray and dark gray, the branch includes natural wood and natural Loon Lake stone. This new look complements the culture of the bank: a warm, inviting place that offers a professional but very personal atmosphere for its customers.
STRIKING THE PERFECT BALANCE BETWEEN FORM AND FUNCTION Partner with Workspace Interiors to gain extensive expertise in existing trends, proven solutions and innovative products, so you can get the most out of your workplace — from concept to completion. To learn more, call 877.543.0944, email info@officedepot.com or visit WorkspaceInteriorsOD.com.
SPRING 2020 • BANKING MATTERS
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BANKING ON GOOD DESIGN
Financial institutions are turning to design to better engage with customers By Matt Loosemore, Principal, SUM Design Studio + Architecture, an OBA Associate Member
I
n the past decade, every industry has seen a monumental shift in how they function, how they provide services, and how they interact with consumers. Financial institutions are no different. With new technologies, a new demographic that wants a more experiential connection, and a shift in consumers going online, financial institutions are pivoting how they run their operations. Small institutions with a handful of local branches or large corporations with national branches have one thing in common needed to thrive in the next decade: building design. Here are four ways financial institutions can meet the ever-changing industry’s challenges with design.
OFFER TECH AMENITIES They’re almost as old as the first car that rolled off the lot: drivethrough tellers and ATM machines. Many of the financial clients we have worked with are continuing to install ATMs, of course, while many are utilizing the more flexible Interactive Teller Machines. We’re also seeing more financial institutions use Teller Cash Recyclers rather than cash drawers. Modern financial institutions are also increasingly using less formal teller solutions, essentially a teller with a tablet, so a customer’s transaction can happen anywhere in a branch.
MAKE ROOM FOR PLACEMAKING Your entry sequence is your opportunity to present how and where your customers will make their transactions. Many financial institutions are offering inviting spaces and teller pods, while others still use the traditional teller row. It’s all based on your brand, the community and the demographic. It’s no secret that many branches are successfully employing other placemaking
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SPRING 2020 • BANKING MATTERS
options like coffee shops within branches, tech bars that allow transactions with smartphones or tablets, and going from teller rows to teller pods to ITMs.
PROVIDE LANDSCAPE AMENITIES Beyond the actual building itself, landscaping also plays an important role in providing consumers with a sense of place. Many cities and jurisdictions require specific types of plants (like drought resistant species) or low-maintenance grasses. For our recently completed Clackamas County Bank project (see “Real-world look: Clackamas County Bank” sidebar), we added bioswales in landscaped areas and designed an exposed rain gutter system to collect rain into a stainless steel gutter system that drains into the garden. It’s a way of celebrating the water instead of trying to hide it and it goes beyond corporate cookie cutter lawns.
THINK BEYOND BLUEPRINTS Designing a new branch is a process. Sit down with your architect, provide your feedback, and agree on the design early on. Choose an architect who says they support a collaborative process that ensures you’re being engaged and a part of the decision making. Matt Loosemore is co-founder and a principal at SUM Design Studio + architecture. He earned his BA and BS in architecture from Washington State University in 1996. He played major roles working at different local Portland firms in the beginning of his career. In his 24 years of experience in the industry, he has worked on numerous projects which vary in scale, typology and clientele.
Real-World Look: Clackamas County Bank
S
UM Design Studio + architecture recently completed the Clackamas County Bank in Gresham, a 8,400-square-foot, two-story bank branch that offers drive-through facilities, 26 new parking spaces in a surface parking lot and two short-term bicycle spaces located outside the building. The new branch is comprised of a main floor area, offices and support spaces. The second floor houses loan offices and a community room where local organizations can gather for meetings and events. “We have a popular community room in our Sandy branch that local nonprofits use and as a part of the Gresham community, we wanted to give back and provide a similar place to gather,” says Julie Snell, retired executive vice president, Clackamas County Bank. Adjacent to the community room, visitors can enjoy a large deck and outdoor fireplace during cold months. Rainwater will be gathered over the entry canopy and flow down the face of the building in an open downspout manner so that visitors can actually see the water going into the rain garden.
Aesthetically, the new bank will use interesting and durable, allnatural exterior materials. Clad with 80% brick, (two-tone and dark gray shades) the branch also includes natural wood and natural stone. “We looked around at other buildings and found a look we liked,” says Snell. “We then handed that off to SUM, they provided options and we voted on the final. SUM’s experience helped us define our exterior look.” The newest branch will employ a teller row, traditional ATM machine and an ITM that allows customers to interact with employees. Featuring wood frame construction, exposed concrete slab on the inside and amenities like showers for their employees, the new branch represents a fresh connection in Gresham for the oldest community bank in Oregon. “We were established in 1911, currently have the fifth generation of the founding family involved in the management of the bank and have been in the Gresham community since the 1980s,” says Snell. “We’ve always been a relationship bank and look forward to providing the Gresham community with our great service and a wonderful new branch.”
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SPRING 2020 • BANKING MATTERS
31
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12/10/19 12:50 PM
NEWS & NOTES Andrew Stolfi Appointed DCBS Director; Steve Gordon Named Chief of Regulation and Supervision at DFR Governor Kate Brown has appointed Andrew Stolfi as the director of the Department of Consumer and Business Services (DCBS), Oregon’s largest business regulatory and consumer protection agency. As the head of the agency’s Division of Financial Regulation and as Oregon’s insurance commissioner, Stolfi spearheaded the state’s negotiations with Oregon insurers, which led to an agreement to waive cost-sharing for patients in Oregon who need COVID-19 testing. As director of DCBS, Stolfi will oversee the Building Codes Division, Division of Financial Regulation, the Oregon Health Insurance Marketplace, Oregon OSHA, the Ombudsman for Injured Workers, Small Business Ombudsman, Workers’ Compensation Division, Workers’ Compensation Board, as well as the Central Services Division. He will also continue to serve in his role as the insurance commissioner. Steve Gordon has been promoted to the position of chief of regulation and supervision for banking and securities at the Oregon Division of Financial Regulation (DFR). Gordon has previously served as the CFO of a local bank; manager of housing finance for Oregon Housing and Community Service; the CFO for Assisted Living Concepts, the first publicly traded assisted living management company; and, a financial examiner with the Department of Financial Regulation.
OBA Members Named to List of 100 Best Companies to Work For Now in its 27th year, Oregon Business magazine’s annual roster showcases businesses with the most satisfied employees. Congratulations to the following OBA members who were recognized in 2020 as a best company to work for: • • • • • •
Cook Security Group D.A. Davidson & Co. Farleigh Wada Witt Hagan Hamilton Insurance Solutions Oregon Pacific Bank Willamette Community Bank
Oregon Pacific Bank Opens New Medford Branch In March, Oregon Pacific Bank officially opened a new branch in Medford, Oregon. Leading the opening of the Medford branch were Commercial Team Leader Tom Skinner and Relationship Banking Officer Dawn Hartley. Together, the two developed a team of experienced bankers with close ties to the Medford community. The new Medford branch will focus on providing relationship-based services to local professionals, business owners, commercial real estate investors and nonprofit organizations.
SBDC’s are Helping Businesses During COVID-19 The Oregon Small Business Development Centers (SBDCs) have been busy during the COVID-19 crisis. As banks are working hard to keep up with Paycheck Protection Program (PPP). SBDCs are providing technical assistance for businesses that need it most. As the largest non-lending business assistance provider in Oregon, the SBDCs provide confidential, expert advising at no-cost to business. Recently, the advisers at the SBDC have been working around the clock to help businesses through this crisis. Much of this work involves helping with PPP and Economic Injury Disaster Loans. The Capital Access Team, a dedicated team focused on helping businesses access capital, is watching these programs closely to provide the best information to businesses through the 19 SBDCs across Oregon. Many Capital Access Team members are retired OBA members who have chosen to continue to serve their communities. “The SBDCs are in the best position to assist businesses as they go through this crisis, but we don’t do it alone. Businesses need great lenders to work with,” said Mark Gregory, state director of the Oregon Small Business Development Center Network. “We have approximately 120 advisers in Oregon, while the SBA has six staffers in the state. We can naturally reach and help more businesses survive.” To refer clients to the SBDCs, visit bizcenter.org/centers to find your local Center.
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WINTER 2020 • BANKING MATTERS
First Federal Announces Plans for New Three-Story Headquarters; Construction Underway First Federal announced in March that its new headquarters will open in its existing McMinnville location in the summer of 2021. The new 3-story building will be developed by OBA Associate Member SUM Design Studio + Architecture and R&H Construction. When completed, the building will encompass more than 31,000 square feet of office and retail space with additional room for future expansions. As a staple of the Yamhill community, First Federal’s new building will enable consolidation of the bank’s current headquarters operations, driving improved efficiency, collaboration, and productivity to benefit First Federal’s customers, employees and communities. The building will create a central hub that houses First Federal’s executive leadership as well as multiple groups that support the bank’s commercial and consumer banking departments.
NEWS & NOTES Banner Bank’s Cindy Meyers Honored as Hermiston’s Woman of the Year During Hermiston’s 50th annual Distinguished Citizens Awards, Cindy Meyers was awarded the title of “Woman of the Year.” Meyers was recognized for her dedication and support of nonprofit organizations including Altrusa, the Agape House and Umatilla County Fire District # 1. In addition to her involvement in various nonprofit organizations, Meyers was praised for her professional success as a vice president of Banner Bank. Presenter Bob Green declared, “As a banker the past 37 years, she has excelled as one of the most accomplished bankers in the area.” He added that “she has a huge heart and cares deeply for her clients, many of whom have become her friends…Her influence has been felt and cherished by countless numbers who have been touched by her caring and kindness.”
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As Meyers thanked her family and friends for the honor, she stated, “I celebrate, day in and day out, amazing folks who do amazing things…I’m proud to be involved and assist in the lives of the people of this community.”
If you are responsible for the insurance program for your financial institution, I would enjoy the chance to talk with you and help you make sense of your insurance programs. I am the point of contact for your insurance policies.
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Welcome Back OBA Associate Members! Business Loan Store Business Loan Store is a commercial mortgage brokerage, founded in 1997. We are located in Portland, Oregon and lend on commercial real estate in all 50 states. Our funds come from Fannie Mae, Freddie Mac, FHA, Commercial Mortgage Backed Securities (CMBS), Life Companies, REITS, Private Investors and Hedge Funds. Terry Painter President (541) 840-3078 terry@businessloanstore.com
Northwest Monitoring (NWM) is a Portland, Oregon based construction consulting and inspection services firm founded in 2007. NWM provides residential, commercial, land development and modular construction loan monitoring, project cost reviews, and general consulting services for clients throughout the Western United States. We are able to provide these services by relying on our years of experience in construction management, owner’s representation, cost estimating and real estate. Tom Finnerty Chief Operating Officer (503) 460-7724 tom@nwmonitoring.com
SPRING 2020 • BANKING MATTERS
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Cornerstones of our Communities Bank of Eastern Oregon Supports Schools with Mascot Debit Columbia Bank Provides $50,000 to Organizations Tackling to JPMorgan Chase Teams Up with Schoolhouse Supplies Card Program Affordable DonateHousing Classroom Care Packages to Portland-Area Teachers
Cornerstones of our Communities
Bank of Eastern Oregon Supports Schools JPMorgan Chase Teams Up with Schoolhouse Supplies to Donate with Mascot Debit Card Program Classroom Care Packages to A number of school districts across Eastern Oregon are benefitting from Bank of Eastern Oregon’s mascot debit card program. For Portland-Area Teachers each card transaction performed, the bank contributes five cents plus the annual renewal fee ($10) directly to associated student body programs in Heppner, Athena, Boardman, Condon, Ione, Irrigon and Colfax, Washington. Since the inception of the school mascot debit card program, more than $35,000 has been contributed.
Columbia Bank Provides $50,000 to Organizations Tackling Affordable Housing Columbia Bank announced earlier this year that, through its Warm Homes grant campaign, the bank is providing two one-time grants for $25,000 each to organizations in Idaho and Washington working toward affordable housing solutions. To date, Columbia has provided $250,000 through the Warm Homes campaign. This year, Priest River Ministries – Advocates for Women of Priest River in Idaho and Vine Maple Place of Maple Valley, Washington will receive the grants. The bank’s Warm Homes program provides funding for current or new entrepreneurial transitional or permanent affordable housing solutions. These solutions work in concert with additional programs and services targeted at lifting low income or underserved families and individuals out of the cycle of homelessness. “We are pleased to add two more deserving organizations to our Warm Homes grant program,” said David Moore Devine, Columbia’s executive vice president and chief marketing and experience officer. “Each of the organizations were selected for their entrepreneurial approach and their deep commitment to reducing homelessness through warm, safe and sustainable housing.”
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SPRING 2020 • BANKING MATTERS
School supplies are in high demand. Frequently, teachers are forced to spend their money to supplement their classrooms, and for new teachers, this can be a real financial burden. In an effort to empower teachers and support students, JPMorgan Chase partnered with Schoolhouse Supplies to lessen the burden on new teachers in the Portland-Metro area. Many school districts have to wait until after school begins before hiring teachers, causing some educators to miss opportunities for free supplies that occur during the summer. The Classroom Care Packages program provides educators with needed supplies for their classrooms. Last month, JPMorgan Chase employees and Schoolhouse Supplies teamed up to distribute new teacher kits to 180 local teachers. The kits will positively impact over 4,500 students throughout the local Portland community. In addition, JPMorgan Chase surprised Schoolhouse Supplies Executive Director Alice Forbes with an additional $10,000 for operating support. This year marks Schoolhouse Supplies 20th anniversary. The organization is an award-winning nonprofit that supports public education in the Portland area by providing free school supplies to students in need. The organization believes that every child deserves school supplies and has the right to a quality education regardless of circumstance. With the community’s support, Schoolhouse Supplies has distributed over $30 million in free school supplies in the past 20 years.
Banks Support their Communities During the Pandemic
By Tom Unger, ABC, APR, Fellow PRSA
Banks have found other ways besides the Paycheck Protection Program featured on Pages 18-22 to support their customers and communities during the virus crisis, including loan payment deferrals, grants and volunteerism. Here are just a few examples: Bank of America committed $1.5 million to nonprofits in Oregon and SW Washington that are helping those people impacted by the pandemic, said Oregon President Roger Hinshaw. The bank has also committed to having no coronavirus-related job losses or layoffs throughout 2020. Working with the City of Portland Mayor and Prosper Portland, many OBA member banks donated $10,000-$50,000 to create the Small Business Relief Fund. The fund provides immediate capital to struggling small businesses throughout Oregon. “A shining star was Umpqua Bank, which contributed $750,000 of the $3 million initially invested to get the program off the ground,” said OBA President and CEO Linda Navarro.
Willamette Community Bank is buying take-out lunch for its employees in Albany, Lebanon and Salem every Friday to help support local restaurants, said President and CEO Joan Reukauf. “We all agreed it’s so important to support our local neighbors at this time,” said Reukauf. Reukauf’s employees also filled 50 pots with flowers and holiday decorations. The employees delivered the pots to the Oaks Retirement Center in Lebanon, which distributed them to residents there a few days before Easter, said Executive Administrative Assistant Trina Henderson. “They were just so kind,” said Jenni Stewart Grove, the center’s Marketing director. “It’s a mental stress for people to be on their apartments by themselves. The flowers were so bright and cheerful. The residents just loved it.”
First Federal in McMinnville created a grant program to support nonprofit customers in their service area during the pandemic. And thanks to one of its generous customers who chipped in $15,000 of his own funds, the bank was able to donate $3,000 each to 14 Yamhill County nonprofit groups hard hit by the virus. Heritage Bank loan officer Kristin Timm sewed masks and offered to bring them to the Broadway Medical Clinic in Portland for the patients. “She reached out on her own to offer masks,” said Clinic Administrator Candy Chapman. “Not only did they see us as a business partner, they recognized the value we provide the community.” U.S. Bank announced a $30 million commitment to human services organizations and local nonprofits to support COVID-19 recovery efforts in communities across the country. That includes a $100,000 donation to the Oregon Small Business Stabilization Fund. The bank has also established a virtual volunteer network of employees who will assist nonprofits with financial education, mentoring, marketing and project management during the crisis. Umpqua Bank created two new programs: a 3:1 match for any donations its employees make to organizations on the front lines of the pandemic, and a Virtual Volunteerism program that provides its employees the resources to help them volunteer virtually for nonprofits. Gifts from hundreds of bank employees generated more than $70,000 in donations for 37 nonprofits in April. During that same month, employees volunteered more than 750 hours virtually for community organizations. Trina Henderson of Willamette Community Bank delivering flowers to a local retirement community for Easter Sunday.
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Bankers on the Move
BANKERS ON THE MOVE Beneficial State Bank:
Oregon Coast Bank
Angie Podolak was hired as SVP & human capital director.
Jedd Fly has been promoted to assistant vice president.
Columbia Bank
Becky Lytwyn has been promoted to senior vice president, real estate lending.
Aaron Deer has been named executive vice president and chief financial officer.
Teresa Murray has been promoted to senior lender.
First Interstate Bank
David Jahnke has been named chair of the board of directors. Northwest Bank
Tom Lee has been promoted to market president Oregon division. Oregon Bankers Association
Darrin Quillen has been promoted to vice president of OBA’s subsidiary, Synergy by Association. Andee Rose has been promoted to senior vice president of OBA’s subsidiary, Synergy by Association.
Associate Members on the Move Lane Powell
Kristen Price has joined as associate. Miller Nash Graham & Dunn, LLP
Edward T. Decker has joined as associate. Garrett Ledgerwood has joined as senior counsel. United Bankers’ Bank
Jae Evans has been appointed to the board of directors.
Oregon Pacific Bank
Dawn Hartley has joined as relationship banking officer. Tom Skinner has joined as commercial team leader.
Curt Johnson has been appointed to the board of directors. Mike Johnson has been appointed to the board of directors.
Pacific West Bank
Freddie Messenger has joined as vice president and controller. Wells Fargo
Katie Schubert has been hired as marketing coordinator for OBA and Synergy by Association.
Perry Pelos has been named chief executive officer of commercial banking.
Banking Expertise As legal counsel to the Oregon Bankers Association for over 40 years, we know the legal landscape faced by financial institutions. From everyday guidance on operations questions to loan document drafting, review, and negotiation to “bet the bank” decisions, we have the experience and tools to deliver results that will make a difference.
693 Chemeketa St. NE
Ken Sherman, Jr.
Gina Anne Johnnie
Lindsey Adegbite
ken@shermlaw.com
gina@shermlaw.com
lindsey@shermlaw.com
503.364.2281
www.shermlaw.com
Salem, OR 97301
Solving Problems · Expanding Opportunities · Managing Risks 38
SPRING 2020 • BANKING MATTERS
UPCOMING EVENTS JUNE
JULY
Su
M
T
W
Th
F
Sa
7 14 21 28
1 8 15 22 29
2 9 16 23 30
3 10 17 24
4 11 18 25
5 12 19 26
6 13 20 27
Su 5 12 19 26
M 6 13 20 27
AUGUST
T
W
Th
F
Sa
7 14 21 28
1 8 15 22 29
2 9 16 23 30
3 10 17 24 31
4 11 18 25
Su
M
T
W
Th
F
Sa
2 9 16 23 30
3 10 17 24 31
4 11 18 25
5 12 19 26
6 13 20 27
7 14 21 28
1 8 15 22 29
= Holidays observed by the Federal Reserve
JUNE
JULY
AUGUST
JUNE 3 | 10:00 AM Human Relations Committee Meeting Virtual Meeting
JULY 14 | 9:00 AM OBA Executive Development Program Virtual Meeting
AUGUST 6 | 9:30 AM Financial Institutions Security Task Force Meeting Tualatin Country Club • Tualatin, OR
JUNE 3 | 1:30 PM CBO Board of Directors Meeting Virtual Meeting JUNE 9 | 9:00 AM OBA Executive Development Program OSU Portland Center • Portland, OR JUNE 10 | 10:00 AM Bank Operations Committee Meeting Virtual Meeting JUNE 22 | 2:30 PM OBA Board of Directors Meeting Virtual Meeting JUNE 23 | 10:00 PM Synergy by Association Board of Directors Meeting Virtual Meeting
AUGUST 11 | 9:00 AM OBA Executive Development Program OSU Portland Center • Portland, OR AUGUST 14 | 10:30 AM OBA BankPAC Trustees Meeting The Association Center • Salem, OR AUGUST 26 | 10:00 AM OBA Education Foundation Board Meeting Bank of America Financial Center • Portland, OR AUGUST 27 | 12:00 PM Synergy by Association Board of Directors Meeting The Association Center • Salem, OR AUGUST 28 | 12:00 PM OBA Government Relations Committee Meeting The Association Center • Salem, OR
For more information or to register for one of these upcoming OBA events, please visit our website at web.oregonbankers.com/events.
COVID 19 RESOURCES www.oregonbankers.com/coronavirus-response
SPRING 2020 • BANKING MATTERS
39
Oregon Bankers Association 777 13th Street SE, Suite 130 • PO Box 13429 Salem, OR 97309
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Session Dates: August 23 – September 4, 2020 Location: University of Washington, Seattle, WA To learn more about PCBS or to apply to the program, call:
(425) 278-0250 or visit:
www.thePCBS.org 40
SPRING 2020 • BANKING MATTERS