Southern Oregon Business Journal - August 2021

Proudly Serving Benton, Coos, Curry, Deschutes, Douglas, Jackson, Josephine, Klamath, Lane, Lincoln & Linn Counties and Crook, Lake, Harney and Malheur Counties as well. Since 2015

The Journal for Business in Southern Oregon SouthernOregonBusiness.com

2021 OREGON WAGE INFORMATION - PAGE 22

LITHIA MOTORS' EVOLVING CUSTOMER-CENTRIC STRATEGY DRIVES MARKETING LEADERSHIP CHANGES - PAGE 5

August 2021 PEOPLE'S BANK REPORTS SECOND QUARTER EARNINGS - PAGE 33

INTERVIEW WITH TRAUTE MOORE, CO-OWNER OF SOUTH STAGE CELLARS PAGE 10

Sponsored by

The Southern Oregon Business Journal extends sincere thanks to the following companies for sponsoring the journal. Without their support we could not produce a FREE resource for Southern Oregon businesses.

A Few Words from Jim Internet!

With all of us now being able to meet in person, Zoom meetings are still a great way to meet. No drive time. Ef cient. Covid accelerated our use of it and it is now a standard. But none of it works if we don’t have internet. You can still meet in person or over a phone but you can’t Zoom if you don’t have internet. So it will be interesting to see how the state continues to invest in infrastructure to support the future while maintaining and growing the internet and wireless data networks.

OREGON PUBLIC COMPANIES

Oregon Connections!

On October 28 and 29, 2021 the 25th annual Oregon Connections conference will be held in Ashland, Oregon and the State’s Broadband Initiatives will be discussed in detail.

The Oregon Connections Telecommunications Conference draws attendees from all regions of the state to share ideas, experiences and knowledge about telecommunications.

The theme for this year is Oregon Connections: Onward!. The 2021 conference presenters and attendees will look forward as we begin to move beyond a disruptive pandemic.

Topics include a look at the impacts of the pandemic on broadband telecommunications and a look forward at public policy, broadband funding, emerging 21st century schools, libraries, health care systems, digital homes and workplaces, smart/precision agriculture, and smart transportation systems all enabled by communication and information technologies.

The conference features speakers, panels, group discussions, breakfast luncheon - refreshments, receptions and more.

The Southern Oregon Business Journal is a proud sponsor. Find out more at OregonConnections.info and see the ad on page 35 for more details.

Check out the news bytes on Page 41. It’s a new way for me to share with you headlines and an opening paragraph with links to the original news source or blog post by the company.

ARCIMOTO DEMONSTRATES FIRST DRIVERLESS FUV, DEBUTS PRODUCTION ROADSTER AND ARCIMOTO FLATBED - PAGE 6 LITHIA MOTORS' EVOLVING CUSTOMER-CENTRIC STRATEGY DRIVES MARKETING LEADERSHIP CHANGES - PAGE 5 PEOPLE'S BANK REPORTS SECOND QUARTER EARNINGS - PAGE 33

If you like this new format, I’ll expand on it in months to come.

Last month I shared the business model of the county fair and speci cally shared Jackson Counties fair plans. Well it happened and the results were staggering. The carnival partner made the most money ever in it’s history and the food vendors were up nearly 100% from 2019. It’s fun to be able to celebrate in person again. I hope to run into you at events all summer all over Oregon.

Jim Jim@SouthernOregonBusiness.com Founder Greg Henderson ghenderson703@gmail.com Greg started the Southern Oregon Business Journal in 2015 and retired in 2020.

PAGE 25 PHOTO :AVENUE OF THE BOULDERS BY PROSPECT

BY PAUL STEELE - PAULSTEELEPHOTO.COM

fi

fi

2 | Southern Oregon Business Journal August 2021

5350 HWY 66, Ashland, Oregon 97520

www.SouthernOregonBusiness.com A JOURNAL FOR THE ECONOMICALLY CURIOUS, PROFESSIONALLY INSPIRED AND ACUTELY MOTIVATED

August 2021 - Table of Contents

FEATURED INTERVIEW WITH TRAUTE MOORE, COOWNER OF SOUTH STAGE CELLARS - PAGE 10

FIVE WAYS TO IMPROVE INDOOR AIR QUALITY, ENERGY EFFICIENCY DURING WILDFIRES - PAGE 8

RESULTS IMAGERY TEAMS UP WITH ONE TREE PLANTED TO PLANT 100,000 TREES ANNUALLY IN OREGON IN RESPONSE TO WILDFIRES - PAGE 38

EMPLOYMENT PROFESSIONAL AND BUSINESS SERVICES A VARIED AND GROWING SECTOR - PAGE 18

NEW SOU CYBERSECURITY CERTIFICATE TO BENEFIT STUDENTS, EMPLOYERS - PAGE 42

2021 OREGON WAGE INFORMATION - PAGE 22 WAGE INEQUALITY IN OREGON: A WIDE GAP - PAGE 28

NEWS BYTES ABACELA WINERY NAMES GREGORY JONES AS ITS NEW CEO - PAGE 41 DUTCH BROS AND ITS CUSTOMERS RAISE MORE THAN $1.9M TO HELP END ALS - 41

WE’RE BETTER THAN THIS - PAGE 39

BIPEDAL ROBOT DEVELOPED AT OREGON STATE MAKES HISTORY BY LEARNING TO RUN, COMPLETING 5K - 41

PROTECTING YOUR BUSINESS ASSETS - PAGE 27

Lithia Motors' Evolving Customer-Centric Strategy Drives Marketing Leadership Changes

By Press Release

Lithia & Driveway (LAD) announced today senior leadership expansion in its marketing team as part of its aggressive strategic omni-channel plan to achieve $50 billion in revenues and $50 in EPS over ve years.

Ms. Celeste embodies the insights and innovative acumen necessary to continue to reimagine and catapult LAD to the next level of delighting the consumer. Her strong background in brand management, voice of customer, operational excellence, and creativity will add a vibrant voice to the company's vision to provide our consumers with personal transportation solutions wherever, whenever, and however they desire," said Bryan DeBoer, LAD's President and CEO.

LAD's 50-50 strategic plan is a uniquely compelling combination of traditional store networks aligned with a fast-growing Driveway e-commerce channel. A concentrated customercentric approach is foundational to the plan's overall success.

To help fuel and bolster the accelerated growth of these complementary channels and to meet the full vehicle ownership lifecycle needs of the consumer, LAD has brought Marguerite Celeste onboard as its new Senior Vice President and Chief Marketing Of cer.

Ms. Celeste is an alum of NBC Universal, DreamWorks Animation, The Walt Disney Company, and Lithia Motors.

From 2011 to 2013, she served as LAD's Director of Creative Services. "With an established knowledge of LAD's mission Growth powered by people and its core business values,

Fully aligned with this strategy is the transition of Tom Dobry to Vice President of Marketing.

In this new role, Mr. Dobry will focus on elevating and expanding LAD's traditional business and 260 local brands, in complementary fashion with the Driveway ecommerce channel. "By doing so, Mr. Dobry will concentrate his more than 11 years and experience of supporting our stores, operations teams, and critical acquisition growth," said DeBoer.

By leveraging Ms. Celeste's and Mr. Dobry's respective brand marketing insights and experience, LAD gains a more robust approach to meeting all the current customer communication challenges associated with its ambitious 50-50 Plan.

About Lithia & Driveway(LAD) LAD is a growth company powered by people and innovation with a 5-Year Plan to pro tably consolidate the largest retail sector in the country. As the leading provider of personal transportation solutions in the United States, LAD is among the fastest-growing companies in the Fortune500 and is currently ranked #231(#2on 10-Year EPS Growth, #3on 10-Year TSR and#12 on 10-year Revenue growth in 2021).By providing a wide array of products and services for the entire vehicle ownership lifecycle through various consumer channels, they build magnetic brand loyalty. Operational excellence is achieved by focusing the business on convenient and transparent consumer experiences supported by proprietary data science to improve market share, consumer loyalty and pro tability. LAD's omni-channel strategy will continue to pragmatically disrupt the industry by leveraging experienced teams, vast owned inventories, technology, and physical network. Continuing to lead the industry's consolidation and Driveway's ecommerce in-home experiences further accelerates the massive regenerating capital engine. Together, these endeavors create a unique and compelling high-growth strategy that provides transportation solutions wherever, whenever, and however consumers desire.

fi

fi

fi

fi

Southern Oregon Business Journal August 2021 | 5

BUSINESS NEWS

BUSINESS NEWS

Arcimoto Demonstrates First Driverless FUV, Debuts Production Roadster and Arcimoto Flatbed

By Press Release

Eugene based Arcimoto, Inc.® (NASDAQ: FUV), makers of fun, affordable, and ultraef cient electric vehicles for everyday drivers and eets, and its partners debuted the rst production Roadsters, demonstrated the rst ever driverless FUV, unveiled new torque vectoring technology that will improve handling of all Arcimoto vehicles via a future software update, and revealed the Arcimoto Flatbed utility vehicle at this year’s FUV and Friends Summer Showcase at the Portland International Raceway on July 26.

The Arcimoto Roadster Arcimoto unveiled the rst production Roadsters, designed to be the ultimate onroad fun machines, which were out tted with prototype accessories including a surf rack, a OneWheel carrier, and the Doge Carrier sidecar.

“From the very rst ride, I knew the Roadster would deliver a ride like no other machine on the road. It’s the purest incarnation of the Arcimoto Platform: low and forward center of gravity, the dualmotor front wheel drive system that pulls you down the road, and the ability to

fl

fi

fi

fi

fi

fl

fi

fl

fi

6 | Southern Oregon Business Journal August 2021

actively shift your weight in concert with the ride. The Roadster is an extension of your will to move, and we are very excited to bring it into the world,” said Frohnmayer.

Torque Vectoring and Drive-By-Wire Sta Systems, founded by brilliant electrical engineer and Arcimoto alum Erik Sta , demonstrated a new torque vectoring technology that dramatically improves steering at low speeds. The improvements are planned for all Arcimoto vehicles via a software update expected to be released in 2022. The torque vectoring implementation is part of a broader effort to enable true

Eugene-based SherpTek, makers of precision engineered truck decks and truck trays designed to be the lightest on the market, unveiled the rst two prototypes of the Arcimoto Flatbed, built based on feedback from the City of Orlando following a joint municipal pilot program in 2020.

“We utilized every single square inch of space that we could,” said Ryan Goodwin, CEO and Founder of SherpTek while demonstrating a fully loaded Flatbed.

“This thing is packed with all my mountain biking gear, all my kiteboarding gear, my stand-up paddleboard for whitewater... It's got a cooler full of drinks, a table, a chair, a yoga mat. It’s out tted for a day full of activity.”

Oregon Governor Kate Brown addressed the crowd to open the Showcase just prior to signing House Bill 2021 on Tuesday, which lays out one of the most aggressive timelines for eliminating carbon dioxide emissions in the country. “House Bill 2021 will make sure Oregon will have the most progressive clean energy standard in the entire country— 100 percent clean, green by 2040,” she said. “Clearly climate change is here and we have to do everything in our power to move forward and tackle it. drive-by-wire in order to lay the foundation for autonomous and remote-controlled Arcimotos.

“This is a game changer, and the single biggest improvement to the handling of our vehicles since we unveiled Arcimoto’s Generation 8 prototype in 2016,” said Frohnmayer.

Driverless Arcimotos Faction Technology, based in South San Francisco, demonstrated the rst ever

driverless FUV using remote control, a step forward toward true ride-on-demand, where riders will be able to summon a vehicle to their location and then hop in and drive.

“Our vision is very much in line with Arcimoto’s mission, which is to rightsize transportation for both delivery and ride on demand, ” said Ain McKendrick, Faction Founder and CEO. “Driverless combines autonomy with the ability to remote assist a vehicle when you need it, because the magic is really when the vehicle arrives driverlessly.”

Arcimoto is the only [public] EV company in Oregon, but it’s not going to be the last if I have anything to say about it.”

Other partners that attended the Summer Showcase included the automotive legends at Munro & Associates, Sundberg-Ferar, Redivivus, UBCO, T3 Motion, JuiceBar, GT Automotive Design, and the Equal Vote Coalition. A full video recap of the Summer Showcase will be shared soon. For more information, visit Arcimoto.com.

fi

fi

fi

Southern Oregon Business Journal August 2021 | 7

ENERGY

Five ways to improve indoor air quality, energy ef ciency during wild res

By Karen Chase

W

Photo Credit : Energy Trust of Oregon

ith wild res burning across Oregon, including the nearby Bootleg re, and abovenormal re activity predicted for the western U.S., communities across Oregon and Washington are facing the threat of another smoke- lled summer.

Wild res can pose health threats due to the microscopic particles from smoke.

And that smoke can also make your

heating and air condition systems work harder, contributing to increased energy use and higher bills.

While re season is an anxiety-inducing time, Energy Trust of Oregon is offering tips for improving indoor air quality and reducing energy use now, which can help reduce stress later.

“Sadly, many Oregonians are again coping with smoke and other impacts of devastating wild res,” said Scott

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

8 | Southern Oregon Business Journal August 2021

Leonard, residential spokesperson for Energy Trust. “With these dry, hot conditions expected to continue through the summer, we want to make sure everyone has information on how to improve their indoor air quality while keeping energy costs low.

Here are Energy Trust of Oregon’s top ve tips for keeping your loved ones healthy, maintaining the comfort of your home and

Make sure to switch back to a standard lter after wild re season. If your HVAC system is designed to work with a highrated MERV lter, this isn’t an issue, but you should still replace the lter regularly.

Switch to “fan only” mode temporarily

It is a good idea to use your HVAC system in “fan only” mode during wild re season. This ensures your system is operating continuously to run your indoor air through the lter.

Remember to go back to “auto” mode before cold weather returns and heating season starts, so that the system kicks on only when needed. That way, you will avoid increasing your energy use and raising your costs.

Tighten seals around windows, doors and window air conditioners If your doors or windows are drafty, install weatherstripping to help prevent smoke from drifting into your house.

If you have a window air conditioner, close the outdoor air damper. If you cannot close the damper, do not use the window air conditioner. Make sure the seal between the air conditioner and the window is as tight as possible.

If you have a portable air conditioner with a single hose, typically vented out of a window, do not use it in smoky conditions. If you have a portable air conditioner with two hoses, make sure that the seal between the window vent kit and the window is as tight as possible.

Avoid creating more ne particles & air out your home after a smoke event Avoid activities that create more ne particles indoors: smoking cigarettes; using gas, propane or wood-burning stoves and furnaces; spraying aerosol products; frying or broiling food; burning candles or incense; vacuuming, unless you use a vacuum with a HEPA lter.

When air quality improves, air out your home by opening windows or the fresh air intake on your HVAC system.

Use a portable air cleaner or highef ciency lter to remove ne particles from the air Run it as often as possible on the highest fan speed.

For more information on indoor air quality during wild res, check out these resources from the U.S. Environmental Protection Agency (EPA).

You can also nd low- and no-cost ways to save energy and money any time from Energy Trust of Oregon.

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

Southern Oregon Business Journal August 2021 | 9

fi

fi

fi

fi

Filters with a high minimum ef ciency reporting value (MERV) have a much ner weave that catches far more particles compared with standard lters.

High-rated MERV lters can also make some HVAC systems work harder, which can increase energy use. Consult the manufacturer’s manual or website for the best advice on the lters you should be using.

saving on energy costs during wild re season.

Replace your air lter frequently Typically, you should replace your lter every three months. During smoke events, your lter may need to be replaced every six weeks to maintain healthy indoor air quality and avoid extra energy use. Check your lter for dust and debris buildup at least once a month during heavy use and more often in heavy smoke conditions.

CAPICHE CONVERSATIONS:

By Chris Cook, Capiche, capiche.us and capiche.wine President and CEO of Capiche & Capiche Wine, Chris Cook is a leadership coach focused on happiness, culture, living your brand, and winery marketing & PR. She brings decades of experience in marketing and a love of entrepreneurship.

Interview with Traute Moore, CoOwner of South Stage Cellars

Interview conducted by Melissa L. Michaels, Capiche Contributor/Strategic Partner, Michaels & Michaels Creative, LLC

I

n 1939, seven-year-old Traute Moore ed to St. Louis from her hometown of Vienna, Austria, with her mother following the Anschluss. Before her father was able to join them, Hitler banned travel by boat. Five years later, they were reunited, and Traute’s life was to become marked by a series of happy coincidences that would lead to her and her husband, retired physician Don Moore, embarking on a viticultural adventure at Quail Run Vineyards. Their son,

fl

10 | Southern Oregon Business Journal August 2021

Michael Moore, would assume management of the vineyard, which evolved to become the largest wine-growing operation in Southern Oregon. In 2008, they launched their own brand, South Stage Cellars, which now boasts a bevy of award-winning wines and a charming tasting room in historic Jacksonville, Oregon. In 2017, Capiche conducted a wine club survey and produced a report with extensive recommendations that, once implemented, not only boosted

membership numbers and loyalty but also broadened the demographics from primarily Baby Boomers to Millennials, predicted to outpace Gen Xers in wine consumption by 2026.

Q: Traute is such a unique name, and the pronunciation—Troutee—is even more unusual. Tell me about your name and the history behind it.

A: My name is Austrian. Traute is just a shortening of a very-dif cult-to-pronounce name. I was born in Vienna. My mother and I came to St. Louis when I was 7 years old, around 1939. We got out of Austria because of Hitler. My father was supposed to join us later, but by the time he was ready to leave, Hitler had closed all the boats. We were reunited with him when I was 12 years old.

Q: The story of how you and your husband, retired physician Don Moore, made a discovery that would change the course of your lives is a delightful example of crisis blossoming into opportunity. Please tell us how Quail Run Vineyards wound up becoming the next chapter of your lives together.

A: We had sold our partnership in a California orange grove and had taken a vacation. While rafting on the Klamath River, our car window was broken and our clothes stolen. We came to Ashland for repairs and saw we were in a farming area.

A realtor kept telling us there was a little

grape vineyard for sale, and after the fourth time, we said, “Okay, let’s look at it.” We both fell in love with the view and said, “We can learn to farm grapes.”

in the region. We also took trips together, and, in Australia, we realized how highly Porter was regarded as a viticulturist when a whole department at the University of Adelaide came to honor him.

Q: Joe Dobbes was another key collaborator. What role has he played over the years, and how did his efforts help bolster Quail Run’s burgeoning reputation?

Q: In another happy accident, you went huckleberry-picking with Corrine and Porter Lombard, a couple you were to later nd shared a passion for viticulture. How did Porter in uence Quail Run’s growing endeavors?

A: Don always loved plants, and he and Porter became good friends and advised a number of people planting new vineyards

A: Joe Dobbes was winemaker at Willamette Valley Vineyards, and we were selling grapes to them for what became their second label, Grif n Creek. We became very close to Joe and eventually decided to have our own label. We asked Joe—who at that point had his own winery, Wine by Joe—if he would make the wines, and South Stage Cellars was born in 2008. We eventually worked with several other winemakers in addition.

Q: You guys were the quite the trailblazers, becoming the rst in Oregon to grow the Rhone varietals Syrah, Viognier, and Grenache, which

fi

fi

fi

fi

fl

Southern Oregon Business Journal August 2021 | 11

Interview with Traute Moore Continued from page 11

turned out to be a perfect t for the Rogue Valley. How does it feel playing such a pivotal role in nurturing Southern Oregon into the ourishing wine industry it is today?

A: Don, an internist, was always a scientist and liked experimenting. The rst grape we introduced was Syrah from a Hermitage clone cutting from Joseph Phelps. We were leasing farmland with different altitudes and aspects and began experimenting with other varieties such as Dolcetto, Pinotage, and Carménère, sometimes moving a grape to a different area where we thought it would do better. Soon, other vineyards began planting some of these varieties, and now Southern Oregon has become quite famous for them.

fl

fi

fi

fi

fi

fi

12 | Southern Oregon Business Journal August 2021

Q: Today, you are growing 350 acres of 28 grape varieties under the leadership of your son, General Manager Michael Moore, formerly a lmmaker (not that Michael Moore 😉 ). How did Quail Run become the largest wine-growing operation in Southern Oregon? Can you give some examples of major labels that rely on your phenomenal grapes?

A: We sell to about 40 wineries now, and some are small and others large, such as A to Z, Jackson Family, Willamette Valley Vineyards, and King Estate. Growing grapes is an art, just as winemaking is, and we treat each variety a bit differently and work closely with our winemakers. Determining when and how to control leaf removal and— especially—when to harvest are not done by just numbers but by taste and observation.

Q: Michael has embraced this role with relish, instituting some signi cant agricultural innovations that have changed the way Quail Run operates. Can you describe some of these modi cations and why they matter?

Q: As you mentioned earlier, you launched your own brand in 2008.

South Stage Cellars now boasts more than 20 labels. What was it like going from a primarily viticultural supplier operation to marketing your own brand?

A: We had two separate teams. Michael became responsible for the vineyards and winery relations, and I was in charge of developing the tasting room, working with our servers, attracting visitors, and establishing a wine club. It was gratifying to see that people appreciated our wines and the variety we had to offer.

Q: How would you describe South Stage Cellars wines, and what are some of the awards you’re most proud of?

A: We have wine varieties from all regions of the world: France, Spain, South America, Africa, and Australia. We had an educational event called “Wines Around the World” that gave historical information along with wine and food tasting for the various regions. Our Malbec received a Double Gold in the San Francisco Chronicle Wine Competition. Our Carménère won Best Red at the Oregon Wine Experience, and our Romeo and Juliet won Best of Show at the Oregon Wine Experience and Best of Show and Best White at the McMinnville Oregon Wine

fi

Southern Oregon Business Journal August 2021 | 13

fl

A: Michael has continued to experiment, especially with irrigation times and canopy control. He is a dedicated farmer, speaks uent Spanish, and works closely with the crews and asks for their opinions and observations. He takes great care with the spray program and operates as closely to an organic farm as possible. We have been LIVE-certi ed for years.

Competition in 2020. We have won numerous Gold medals and other awards for nearly every wine we make.

Q: Over time, your wines have evolved, just as your winemaking has. Describe the journey from your rst wine production in 2008 to your current process.

A: We made standalone wines and/or blends with every grape variety we grew. It was not the best business method because we have an awful lot of wine in storage, but it makes it interesting for our customers to try so many different wines. Our wines were previously made up north, and it was dif cult to be involved in the winemaking and tasting process. Currently, all our wine is made locally by Weisinger and Barrel 42, which allows us to make smaller quantities and be involved in the acid balance and avors prior to bottling.

14 | Southern Oregon Business Journal August 2021 fi

fi

fl

Interview with Traute Moore Continued from page 13

Q: In 2008, you established a tasting room in historic downtown Jacksonville. Built in 1865, this striking brick building is listed on the National Register of Historic Places and creates a quaint, welcoming atmosphere for guests, especially when paired with your wine garden. What sets your tasting room apart from others in the Rogue Valley?

A: We strive to make our customers comfortable and relaxed. Both in the building and garden, we have intimate, private spaces where friends can sit. We have music and areas for people to dance.

The wine garden is especially beautifully landscaped, and we have a rotating painting exhibit on the walls inside the building. And our customers enjoy the great wine variety we have to offer. We offer live music three nights a week and dinner on Wednesdays, plus small bites at all times.

Q: In 2017, Capiche conducted a wine club survey, which unearthed some surprising data that would help you transform your wine club into the success it is today. What were the most interesting ndings, and how have you put Capiche’s recommendations into action?

A: Chris made a number of important suggestions that we have followed. We are increasing our advertising on Facebook and Twitter. We have a revised website. We offered educational events with talks by winemakers and special wine tastings, and we are involved with other community organizations that have programs at our facility. We are very careful to have welltrained and friendly staff who make sure each guest receives the proper attention.

We are members of the Wine Cruise event

with six other wineries in the Jacksonville area. We have found it very valuable to have our servers do secret shopping so they can see what is useful and not in other situations. And we are playing more jazzy music at our evening events.

Q: Given that your wine members were primarily older, how did Capiche recommend broadening the appeal for a younger audience, particularly Millennials, the largest living generation and predicted to overtake Gen Xers in wine consumption by 2026?

A: Our servers happen to be young men and women, and when I go to the tasting room, I notice we have people of all ages now. A lot of young people are enjoying

wine and music. Connie Thomas, our tasting room manager, has been doing a wonderful job of training the staff and is present on the oor at all major events during the week. Our servers don’t just stand behind the bar but circulate among the guests to take orders and suggest food or drinks.

Q: What did you discover about people’s music preferences, and are you catering to those desires in your current live music offerings?

A: Learning about musical preferences was interesting—our members prefer jazz overall. Because of that, we expanded our musical offerings to include several jazz groups and focus on music that has a lively rhythm and invites dancing. We have a variety of performers, including solo

fi

fl

Southern Oregon Business Journal August 2021 | 15

Interview with Traute Moore Continued from page 15

singers, guitar players, duos, trios, and entire bands. It is wonderful to have so many really good musicians to choose from.

Q: What strengths did Chris Cook bring to her wine survey, research, and consultation services for South Stage Cellars?

A: The survey of our operations was very useful in understanding the composition of our wine club and the pros and cons our customers pointed out. It has shown us both our strengths and weaknesses. We learned that we need to communicate more frequently with our members by email and Internet to make them aware of our events.

To grow our wine club, we need to enhance loyalty by making our members feel special through programs and rewards directed to

fi

fi

16 | Southern Oregon Business Journal August 2021

them. And, nally, we need to have adequate staf ng and make sure all our customers are treated with courtesy. Most helpful was Capiche’s list of suggestions.

Chris has done a very professional and thorough job that helps us see ourselves as others see us.

Chris has also brought the members of Southern Oregon’s wine industry together in her monthly programs. This ability to meet face to face and exchange information on our various wine club and tasting room operations has been extremely helpful to each of us.

Q: In 2018, tragedy struck when you lost your tasting room manager, Porscha Schiller, to cancer. Can you talk about Porscha’s legacy as well as what your new manager, Connie Thomas, brings to the tasting room experience?

A: Porscha was my manager for many years as well as a dear personal friend. She set the tone for South Stage with her exciting personality and her wonderful ideas, especially the Rising Stars Program, which really started the music that we now have, and her enthusiasm for whatever we were offering to our customers. She made the tasting room fun and exciting.

Connie, our current manager, has an extraordinary palate and deep knowledge of wine. She brings a dedicated business sense to South Stage and treats it as her own. She has very high standards for keeping things at their best, making sure the staff is properly trained and the place looks beautiful as well as serving the best wine and food to our customers. She does an impeccable job of scheduling staff, events, and musicians and managing all the details of running things smoothly. Her quiet, calm friendliness relaxes both staff and customers, and I feel incredibly fortunate to have her as a friend and manager.

Q: Still sharp as ever, you’re approaching 90 and showing no signs of slowing down. What do you foresee for the next decade of your life?

A: Slowing down and fading out. But South Stage brings me joy, and I plan to stay involved as long as I can with the tasting room, my family, and the vineyards. I am not able physically to walk the vineyards now, but I can be Michael’s sounding board, especially at a year when water and obtaining workers is so critical with climate change and nothing will be the same as before in the vineyards.

Southern Oregon Business Journal August 2021 | 17

EMPLOYMENT

Professional and Business Services A Varied and Growing Sector

Brian Rooney Regional Economist Douglas and Lane counties brian.t.rooney@oregon.gov Originally Posted At :

https://www.qualityinfo.org/-/professional-and-business-services-a-varied-and-growing-sector

P

rofessional and business services has added a lot of jobs in recent years. It is a large and varied industry super sector that includes everything from law of ces, engineering services, and computer

fi

fi

18 | Southern Oregon Business Journal August 2021

systems design to company headquarters, temporary help rms, call centers, and janitor services. It is separated into three sectors: professional and technical services, management of companies, and

administrative and waste services. More information on the employment and wages of the industries in professional and business services can be found at our QualityInfo.org website.

The next largest sector is administrative and waste services with 7,462 rms and

Finally, the management of companies and enterprises industry included 1,344 rms and 48,855 workers. This subsector is largely made up of bank holding companies and company headquarters. Wages are the highest among the three subsectors, averaging $138,714 annually.

A relatively small amount of professional and business services jobs are in government with 6,174 in 2020.

Like the private sector, the industries are varied, but jobs in engineering, landscape architectural services, computer systems design, and janitorial services are the most prevalent.

Employment Trends Professional and business services in Oregon has grown almost continuously since the early 1990s, declining for only short periods during recessions.

fi

fi

Southern Oregon Business Journal August 2021 | 19

fi

The overall super sector employed 241,890 in 2020, roughly 13% of total employment in the state. The largest sector was professional and technical services, which included 17,830 rms with 98,339 workers. The largest industries in professional and technical services are computer systems design and related services with 16,735 workers, engineering services with 11,098 workers, and accounting and bookkeeping services with 11,005 workers. Wages in this sector are high, averaging $79,760 in 2020.

94,696 workers in 2020. The largest industries in administrative and waste services are temporary help services with 29,393 workers, landscape services with 10,928, janitorial services with 10,585, and telephone call centers with 9,420 workers. Wages are relatively low in this subsector, at an annual average of $43,917.

Much of the growth in the 1990s can be attributed to the increased use of employment services, especially temporary help rms that take care of hiring for companies in a wide range of industries. Employment services added 28,800 jobs for a growth rate of 181% over the decade. The fastest growing industry in the sector was computer systems design, which grew by 263% while adding 8,400 jobs.

fi

20 | Southern Oregon Business Journal August 2021

Between 1990 and 2000 the sector grew rapidly, adding 83,300 jobs and growing by 80% compared with 29% for total private-sector employment.

Professional and business services accounted for 23% of total growth during the decade.

The relatively mild economic downturn that lasted from 2000 to 2003 was particularly hard on professional and business services. While total employment declined by only 3%, professional and business services dropped 6%. This period included the recession known as the Dotcom Bust, which was a correction in the high-tech industry. The computer systems design industry lost roughly 3,500 jobs or 30% of its employment. In addition, employment services lost 10,200 jobs, or 23%. Telephone call centers actually grew during this period, adding roughly 2,700 jobs.

After a short recovery period between 2004 and 2007, the economy fell into the Great Recession. Professional and

business services dropped 16,000 jobs or 8.2%. The professional and technical sector dipped only slightly during the recession because computer systems and design actually gained 600 jobs over the period. Management of companies also added about 1,700 jobs. The largest loss came from the volatile temporary help industry, which lost 14,800 jobs or 35% between 2006 and 2009. The temporary help industry also helped the overall super sector start to recover earlier from the recession, making it a leading indicator.

After the Great Recession, the professional and business services sector in Oregon outpaced the growth of the overall economy, adding 72,722 jobs between 2010 and 2019 for a 40%

Management of companies had the highest percentage increase after the recession, adding 65% and 19,955 jobs although some of that growth is from rede ning companies into the industry.

In the administrative and waste management subsector, which added 22,756 jobs between 2010 and 2019, temporary help services grew by 7,824 (+28%) to reach 35,646 although the industry has not regained its 2006 peak of 38,825 jobs. Telephone call centers added 2,500 (+26%) jobs between 2010 and 2013 to reach 12,300, but dropped jobs since to reach 9,828 in 2019.

Professional and business services fared somewhat better than total employment during the COVID-19 recession, dropping 5% compared with almost 7% for all private-sector industries. In the professional and technical services subsector the losses were somewhat less, dropping 1,423 jobs (-1%), likely because many jobs in this sector can be done from home. The largest industry level job losses in professional and technical services were in other services related to advertising which lost 571 jobs (-73%) and photographic services with a decline of 202 jobs (-54%). There were signi cant increases in physical,

engineering, and biological research at 337 jobs (7%) and other technical consulting services with 291 jobs (6%).

Management of companies and enterprises was down 1,615 jobs (-3%) during the COVID-19 recession.

The administrative and waste services sector includes many frontline jobs that cannot be done from home or are related to industries that were negatively affected by COVID-19 restrictions. This sector had a loss of 8,744 jobs (-10%). The largest loss was in temporary help services with a decline of 6,253 (-21%). Other signi cant losses were in telephone call centers which dropped 970 (-7%), collection agencies with a decline of 364 (-55%), and travel agencies which lost 313 (-64%).

Differences in the Sector’s Industry Mix Determine Wages The professional and business services super sector is so varied that different geographies have different industry mixes within it. Areas with a high proportion of employment in the higher-paying professional and technical and management of companies industries will have relatively higher average wages while those that have a high proportion in industries such as call centers and temporary help rms will have relatively lower wages.

headquarters and therefore have high annual average wages. However, some nonmetropolitan counties have high wages within the super sector. For instance, Morrow County has a large share in data services, Hood River has a relatively large share of employment in engineering, and Gilliam County has employment in management of companies and waste remediation.

Other rural counties that have employment in a company headquarters can have high wages within professional and business services.

Outlook Professional and business services is expected to continue adding jobs into the future. Oregon Employment Department projections for 2019 through 2029 show it is expected to add 33,000 jobs for a 13% growth rate. At the industry level, computer systems and design is expected to add the most jobs at 4,400 and grow the fastest at 26%.

Some metropolitan counties like Washington and Multnomah have large shares of employment in professional and technical industries and company

fi

fi

fi

Southern Oregon Business Journal August 2021 | 21 fi

growth rate. This compares with a growth rate of 22% for total employment. The professional and technical sector added the most jobs of the three sectors, especially the computer systems design industry, which added 7,309 jobs (+76%) and management consulting services which added 4,667 jobs (+97%).

EMPLOYMENT

By Jason Payton

2021 Oregon Wage Information

Occupational Economist jason.m.payton@oregon.gov Original posted at https://www.qualityinfo.org/-/2021-oregon-wage-information

H

ow do we know the worth of our work? How do we know we are paying employees a competitive wage? The only way to know is to get a snapshot of what other workers are getting paid for doing similar work. If you don’t know where

22 | Southern Oregon Business Journal August 2021

to start, the Oregon Employment Department is here to help.

The 2021 version of the Oregon Employment Department’s Occupational Wage Information is now available. Thanks

to survey responses from employers around the state, wage estimates for nearly 740 occupations have been published.

The annual average wage for all occupations in Oregon was $58,443 in 2021, or $28.10

per hour. Of the occupations with published data, gambling dealers had the lowest average wage of $13.14 per hour.

Orthodontists had the highest average wage ($147.76 per hour). Dental specialists like orthodontists have such a high average wage because it take many years of education and experience in order to perform that level of work.

The cost of living, mix of industries, and available workforce can be different across the state. We may see a higher number of software engineers and folks working in corporate headquarters in Portland, while natural resource jobs may be more concentrated in rural communities, and leisure and hospitality jobs focused near the coast. Wage estimates re ect these differences. The average hourly wage for Multnomah, Washington, and Clackamas counties was $31.39 in 2021. Jobs in Eastern Oregon ($22.51) and Southwestern Oregon ($22.75) had lower average wages than jobs around the Portland tri-county area.

Wage estimates are not immune from the in uences of the pandemic. We have seen shifts in employment levels and wages in different parts of the state. For instance, the average wage for Northwest Oregon ($25.86) was greater than the Mid-Valley ($25.83) for the rst time since 2016. While variations from one year to another can usually be stocked up to adjustments for in ation and changes in what businesses are sampled in the survey, national data from the Bureau of Labor Statistics show that states that experienced a higher relative decline in leisure and hospitality employment saw higher than expected changes in average wage.

Prior to the pandemic Northwest Oregon had a higher share of workers employed in leisure and hospitality than the Mid-Valley area. Leisure and hospitality jobs in many cases pay a lower than average wage. If the shutdowns from the pandemic adversely affected jobs on the lower end of the pay scale, then the average wage for the jobs that remain in the area will increase because those lower-paying jobs are not

counted. That may be what we are seeing in Northwest Oregon, and generally across the country. We will have to watch wage estimates for the next couple of years to see if average wages in Mid-Valley move ahead of Northwest Oregon as leisure and hospitality employment recovers.

Looking at average wages is like looking at a car without seeing what is under the hood. You can get a sense for the style and make of the vehicle, but you are missing the complex mechanics that make the wheels turn. We need to look at the wage ranges of different occupations to see how pay for one career aligns with another.

Wage ranges give us a better idea of what we could expect if we were to hire, or work in a particular occupation. We provide wage ranges by publishing a series of percentiles for each occupation. A percentile wage shows the percentage of workers in an occupation that earn less than a given wage and the percentage that earn more. In most cases, wages in the 10th or 25th percentile likely re ect workers just entering a career,

fl

fi

fl

fl

fl

Southern Oregon Business Journal August 2021 | 23

or who have less education attainment than others performing similar work. To better calibrate our understanding of wage ranges let’s look at the wages for maintenance and repair occupations in Oregon.

Most maintenance jobs in Oregon pay between $14.84 and $40.45 per hour.

More than 30% of these jobs in Oregon are either general maintenance workers or automotive service technicians. Wages for the two occupations are very close to the state median wage. The wage ranges between entry-level workers and experienced employees is similar to the wage range for all maintenance and repair jobs. Other maintenance occupations that

fi

fi

24 | Southern Oregon Business Journal August 2021

require more experience or licensing can pay signi cantly more.

higher wage than 75% of all maintenance and repair jobs.

For instance, electrical power line installers and maintenance workers install or repair cables or wires used in electrical power or distribution systems. These are some of the highest paying maintenance jobs in Oregon. The pay premium comes from having to work in dif cult or hazardous conditions. Many power line installer job openings require the completion of an apprenticeship, as well as obtaining licensing such as a commercial driver’s license. The wage range estimates show that essentially all power line workers earn a

Occupational wage information allows us to better understand what people get paid for the work they do, and how that may differ across the state. To get additional wage estimates for hundreds of careers please visit QualityInfo.org.

Southern Oregon Business Journal August 2021 | 25

26 | Southern Oregon Business Journal August 2021

BUSINESS TOOLS

Protecting Your Business Assets

By Jim Teece

O

ur business is over 30 years old and we have had oods, re, freezing and COVID impact our business over the years.

Here are 10 ways to reduce the impact if you are ever unable to access your of ce.

We have an of ce at home as well to act as an offsite command center and we have had to use it several times as such.

You want most of your important info securely stored in the cloud as a backup, but you also want hard copies of certain items in a re proof safe In case the internet or cell service goes down and in a re it does and will.

If you are evacuated from both your of ce and your home you need to have a backup to the backup.

Use a cloud based service like Google Docs I create lists using the spreadsheet tool and print hard copies for my off site backup.

Employee Names and Numbers - Make a list of your employees with addresses and cell numbers and spouse names if applicable. You should have a hard copy that is current and accessible by anyone that needs to get to it.

Insurance info - Who your agent is and your policy numbers as well as 800 numbers for emergencies etc.

that. It may not be current if it’s August and it was printed in January but it will get you close. Train yourself to add to it as you make a major purchase. You might be doing this in your accounting system. That is ne, as long as you also print it out.

Bank Info - What is your routing number and account number as well as contact info for your bank.

Passwords - This one is scary and almost not recommended, but the reality is that you need to be able to access your accounts and if you don’t remember your passwords then you have to go the long way to access your account. If you have 2 factor authentication turned on and the cell service is off, you need to have a backup for being able to log in. If you are in the middle of the crisis and local communications are out, you need to focus on surviving and helping others.

Don’t worry about your accounts.

Key vendors. Maybe you will receive a huge penalty if you are late on a payment or services will get tuned off and it’s mission critical to your business. Make sure you have a list of these vendors and accounts and due dates. You will want to call them and explain the situation and ask them to grant you some unpenalized time to get back on track. Send them a link to news about the re.

Asset list - Once a year you le a property tax listing your xed assets, serial numbers,

Data Backup. Having your offsite data

date purchased and value. Have a copy of

backup is critical. Make a point of taking a

backup of your companies important data offsite and lock into a re proof safe. We do a daily backup with weekly offsite that is done over 4 different drives overwriting the oldest one and a quarterly backup that is never erased. You will want to backup to the cloud as well, daily.

Security. With power loss alarm systems fail.

You might need to hire a security team to patrol your of ce. Have that relationship on stand by and ready to go.

Porta Potties - One year oods took out the water supply for a couple of weeks. We still went to work, but I needed to provide bathroom service for my employees.

Because I had the relationship already established and we called the night of the event leaving a message and getting in the queue, we were able to reserve one of the last ones they had and we became heroes to our entire neighborhood.

The key is preparedness. In todays digital world, you need to have access to the critical data even if there is no electricity or internet.

fi

fi

fi

fi

fi

fl

fi

fi

fi

fi

fl

fi

fi

fi

Southern Oregon Business Journal August 2021 | 27

Wage Inequality in Oregon: A Wide Gap

EMPLOYMENT

By Barbara Peniston Special Projects Analyst barbara.e.peniston@oregon.gov Original posted at https://www.qualityinfo.org/-/wage-inequality-in-oregon-a-wide-gap

61.7% since 1990. Between 1990 and 2020, the real wages of the lowest-paid of the top 10% rose 43.6%. The maximum wage of the lowest 20% increased by 34.9%, undoubtedly boosted signi cantly by recent increases in Oregon’s minimum wage. (In 2015, the increase over 1990 for the maximum wage of the lowest earning percentile had been only 8.3%.)

Over the past 30 years, the distribution of wage income in Oregon has generally continued to become more unequal. In 2020, employees who worked all four quarters of the year earned a total of $94.2 billion in covered wages, more than twice the (in ation-adjusted) total earnings of four-quarter workers in 1990. The number of four-quarter workers rose by 57% during that time period, with the average fourquarter in ation-adjusted wage rising from $44,200 to $61,500. The gains in wage income, however, have not been evenly shared by all workers. High-wage workers’ slice of the wage pie has increased in size, while that of low- and middle-wage workers has shrunk.

One way to track the degree of wage inequality is to compare wages by earnings percentile. To derive the value of a given earnings percentile, the wages of each worker are computed and then all workers’ wages are sorted from lowest to highest.

The wage associated with a given percentile is the highest wage earned by that percentage of the workforce.

In 2020, the bottom 20% of year-round Oregon wage earners made $24,195 or less and the bottom half of wage earners made $45,454 or less. The top 10% of year-round workers in the state made more than $114,252 and the highest earning 1% made more than $300,962, their real (in ation-adjusted) wages having risen by

Top Earners Pull Away From the Pack

fi

fl

fl

fl

fl

28 | Southern Oregon Business Journal August 2021

The gap between the 50th percentile wage value and higher percentile wage values has gradually widened over time. The ratio of the 99th percentile to the 50th percentile wage was 5-to-1 in 1990, steadily widened to more than 7-to-1 in 2015, and since then has decreased just slightly. Over the same period, the gap between the wage of the bottom 20th percentile and the 50th percentile shrank a little, from just over to just under 2-to-1.

Middle-Wage Workers Get Left Behind Between 1990 and 2020, the median in ation-adjusted wage of all four-quarter Oregon workers rose by only 23.4%; an increase, on average, of 0.7% per year.

Between 2019 and 2020 the median rose to the 30-year high of $45,454, up 6.1% over 2019. The large jump in the median was likely due primarily to the loss of lowerwage jobs during the pandemic.

The median wage of the top 1% of all fourquarter workers rose by 57.2% over the past 30 years, from an in ation-adjusted $258,060 to $405,720. The upward trend was disrupted during the 2001 and 2008 recessions and again in 2012, when the wages of the top earners dropped for two straight years. It is likely that annual bonuses for this group of workers were considerably lower during these periods of economic slowdown. After two years of signi cant increases (7.5% in 2014 and 4.6% in 2015), the median wage of this group remained relatively stable through 2018, dropped a little in 2019, and rose by 6.3% in 2020.

Between 1990 and 2020, the median wages of the top 0.1% of Oregon's yearround wage earners doubled, growing by 105.3%. That was nearly twice the growth of the rest of the top 1%. Members of this group earned a minimum of $792,981 in covered wages in 2020. Their median wage that year was $1,083,558, about 8% lower than the pre-recessionary high ($1,172,877) that was achieved in 2000.

The Pie Grows, but Slices for LowerWage Earners Shrink The percentage take – the slice of Oregon’s total wages pie – of the top 1% of Oregon's

four-quarter wage-earners has increased more than 30% over the past 30 years. This group of workers, and the remainder of the top 20%, were the only groups whose slice of the wages pie increased. Workers in the middle quintile (the middle 20% percent of four-quarter workers) saw their share of total wages shrink by 10.9% – more than any other group. The second lowest and second highest quintiles experienced nearly identical percentage losses, of 7.4% and 7.3%, respectively. The lowest quintile's slice of the wages pie saw no change between 1990 and 2020. Just two years earlier, the comparable 1990 to 2018 percent changes, from the lowest to the

fl

fi

Southern Oregon Business Journal August 2021 | 29

wage, which rose in several steps from $4.75 per hour to $12.00 per hour between 1997 and 2020, have also helped lower-wage workers increase their share of total wages.

Bumps on the Road, but the Gini Coef cient Continues to Increase Beyond the comparisons of percentile groups, there are other indicators that help to measure wage inequality. One of those commonly used by economists is the Gini coef cient, based on the Lorenz curve that graphically displays the

highest percentile, were -2.6%,-8.9%, -12.0%, -7.9%, 6.4%, and 38.9%.

The dramatic changes seen in just two years likely resulted in large part from the disproportionate loss of lower wage jobs during the 2020 pandemic, and the increase in the percentage of all four-quarter wages earned by middle-wage workers. In 2018, for example, the lowest 20% accounted for 5.6% of all fourquarter wages; the second lowest earned 3.3%. In 2020,

fl

fi

fi

fi

fi

fi

fi

30 | Southern Oregon Business Journal August 2021

these two groups earned 5.9% and 3.5%, respectively, of all four-quarter wages. At the other end of the earnings spectrum, the top 1% of four-quarter workers earned a

degree of income or wage inequality among workers. The larger the Gini coef cient, the greater the degree of wage inequality. A score of zero indicates perfect wage equality, where all workers earned the same wage. A score of one would indicate that only one worker earned all the wages. It is helpful to use annual Gini coef cients to see the pattern of changes in wage inequality over time.

The degree of wage inequality in Oregon has generally increased since 1990, though not steadily.

The state’s Gini coef cient for all yearround workers rose from 1991 through the mid-1990s, and then was largely at

combined total of 7.4% less in 2020 than in 2018. Oregon's increases in the minimum

before rising to a peak in 2000. Since 2000, the coef cient fell slightly in 2001 and

2002, during the rst economic slowdown of the decade. Afterwards, it began a steady rise to a second peak in 2007, as the state’s economy recovered from the recession earlier in the decade. The coef cient decreased a little again in 2008 and 2009 and subsequently rose to reach its highest point in 2015. In each of four subsequent years, it dropped slightly, again possibly a result in part of Oregon’s minimum wage increases. In 2020, it saw no change.

Some Workers Are Not Included in This Study This study analyzes wage records submitted quarterly by all employers for workers subject to unemployment insurance (UI) taxes in Oregon. That includes workers at

most private employers as well as state and local government workers. Federal government workers covered by a separate UI system are not included. Roughly 90% to 95% of all private employees are covered by UI, with notable exceptions including the self-employed, workers paid solely by commission, and employees of small agricultural employers. Although workers not covered by UI affect wage distribution and inequality in Oregon, we were not able to include them because of the lack of data.

Wage distributions will vary depending on whether all workers or only full-time yearround workers are included. For many individuals, annual earnings are in uenced by the number of hours or quarters worked during the year. Many workers have part-

time or seasonal jobs. Others may take a new job in Oregon at some point during the year or leave the state for a job. Still others will drop from the wage les for various reasons, including death, disability, or retirement. Because such factors tend to reduce annual wages, the wage distribution will likely be wider for all workers than for those who are working full-time yearround. In 2020, the average wage for fulltime year-round workers was $88,896, compared with just over $46,299 for all workers. Roughly two-thirds of Oregon workers are employed year-round; of these, slightly less than one-third work full time.

fl

fi

fi

fi

Southern Oregon Business Journal August 2021 | 31

Better Together People’s Bank and Willamette Community Bank have merged to become a new, combined organization.

We are excited to work with like-minded partners to extend our services to customers and businesses in the northern Willamette Valley, providing banking services that are truly in touch with the needs of our local residents.

Because together, we’re better.

COMMUNITY BANKING Press Release dated July 21, 2021 Original posted at https://www.peoplesbank.bank/about/press-release---july-21--2021

Medford, Oregon - People’s Bank of Commerce (OTC PINK: PBCO) announced today its nancial results for the second quarter of 2021.

People’s Bank reported quarterly net income of $2,953,000, or $0.61 per diluted share, for the 2nd quarter of 2021 compared to net income of $1,385,000, or $0.39 per diluted share, in the same quarter of 2020, a 56.4% increase. The bank recognized year-to-date net income of $5,846,000 versus $2,496,000 for the rst half of 2020, a 57.3% increase from the prior year.

Earnings per share for the trailing 12 months were $2.37 per share, up from $1.31 per share for the same period of 2020, an 82.5% increase. Second quarter income continued to be positively impacted

by PPP fee income due to pro-ration of the remaining unamortized origination processing fees at payoff. During the quarter, the bank had a credit to the provision for loan losses, in spite of achieved portfolio loan growth, as economic indicators utilized in the ALLL

People's Bank Reports Second Quarter Earnings

methodology continued to improve.

Coupled with the bank’s recent acquisition of Willamette Community Bank (WMCB) in 1st quarter, the bank was able to achieve higher earnings per share than in previous periods.

During the quarter, deposits declined $6.4 million, or an annualized 3.5%, as the bank utilized CDAR’s to assist with managing balance sheet growth, resulting in approximately $21.6 million that was taken off balance sheet. In addition, the bank evaluated and reduced deposit rates in the recently acquired WMCB division, as a means to assist with managing the bank’s overall net interest margin. This resulted in additional deposit attrition of approximately $14.0 million during the quarter. On an annual basis, deposits grew by $318.5 million, an 80.8% increase from June 30, 2020, due in large part to the bank’s acquisition of WMCB in rst quarter, but also partly due to the bank’s participation in the PPP loan program, which has created signi cant liquidity in the banking system overall. We anticipate that some of the deposit growth from PPP

will be temporary as bank clients look to make capital improvements and diversify investments as risk from the Pandemic eases over time.

Beginning in 2nd quarter, the bank began to deploy some of its excess liquidity to the investment portfolio as an alternative to deposits at the Federal Reserve Bank.

Through the end of the quarter, the bank increased its investment portfolio by $52.5 million, a 101.7% increase from the prior quarter. This shift from overnight investments to a balanced investment time horizon will assist with managing the yield on earnings assets in the low-rate environment we are experiencing today without reducing liquidity.

As of June 30th, core portfolio loan growth, excluding PPP, totaled $10.6 million during 2nd quarter, representing an annualized growth rate of 10.4%. The bank’s pipeline of approved credits remains strong, although some delays in funding have occurred due to increased time for completion of appraisals. In addition, increasing construction costs due to supply

fi

fi

fi

fi

Southern Oregon Business Journal August 2021 | 33

shortages have impacted construction costs in our markets.

Over the past year, the bank took an active role in originating loans through the Small Business Administration’s Paycheck Protection Program (PPP) beginning in April 2020 with Round I and again during rst quarter 2021 with the approval of Round II. These loans were used to support payroll and other eligible expenses during the COVID-19 pandemic. During the initial round of PPP, the bank funded 1,056 PPP loans totaling $95.4 million (WMCB originated 148 PPP loans for $25.8 million re ected in the bank’s Q1 and Q2 PPP loan activity). Through the end of 2nd quarter, the bank received Round I forgiveness totaling $112.1 million, representing more than 95% of the loans funded through Round I. The second round of PPP was opened at the beginning of Q1 2021. The second phase was opened to allow new borrowers to participate as well as allow certain eligible borrowers to take a second draw PPP loan.

Through the sunset of Round II, the bank funded an additional $48.6 million representing 629 PPP loans and $2.8 million in PPP processing fees. Of the loans funded in Round II, 73 loans representing

fi

fi

fi

fi

fi

fl

34 | Southern Oregon Business Journal August 2021

$3.2 million had been forgiven through by the end of 2nd quarter 2021. “With funding for Round 2 PPP discontinued in May, the bank now is focused on assisting clients with obtaining forgiveness,” commented Julia Beattie, President and Chief Credit Of cer.

During the quarter, the bank experienced a decrease in classi ed assets, primarily attributed to principal payments on nonaccrual loans and a reduction in ORE. The ALLL for WMCB was eliminated at the completion of the merger and a fair value adjustment was applied to the outstanding portfolio. During 2nd quarter, the ALLL was updated based on new loan growth achieved during the quarter and updated economic expectations which were factored into the bank’s analysis. As of June 30, 2021, the ALLL was 0.92% of portfolio loans excluding PPP and the unallocated reserve stood at $1.02 million or 25.2% of the ALLL. Second quarter 2021 non-interest income totaled $2.9 million, which represents an increase of $825 thousand over the 2nd quarter of 2020. During Q1 2021, the bank recognized a bargain gain of $2.3 million from its acquisition of WMCB, which was a one-time, non-recurring component of non-interest income. During the quarter, Steelhead Finance factoring revenue increased $779 thousand, a 96.4% increase

over the same quarter in 2020. Conversely, mortgage income decreased $263 thousand, or a 27.4% decrease from 2nd quarter 2020. “Over the past year, People’s Bank has performed extremely well during the pandemic, due in large part to the bank’s Steelhead Finance factoring and mortgage divisions, which have positively impacted the bank’s income during the lowrate environment,” commented Ken Trautman, CEO. “Mortgage slowed during the rst quarter due to slightly higher interest rates and a lack of inventory in our markets coupled with staff turnover experienced during the quarter. Both the Steelhead and mortgage divisions are unique in that expenses can be scaled with changes in volume,” added Trautman.

Non-interest expense totaled $5,948,000 in 2nd quarter, down $1,737,000 from the rst quarter. This was primarily the result of onetime merger related expenses of $2.87 million recognized when the merger with WMCB was completed in March 2021.

For the twelve months ending June 30, 2021, excluding one-time merger adjustments, earnings per share would have been $2.47, versus $1.21 for the same period ended June 30, 2020.

About People’s Bank of Commerce People’s Bank of Commerce’s stock trades on the over-the-counter market under the symbol PBCO. Additional information about the Bank is available in the investor section of the bank’s website at: www.peoplesbank.bank.

Founded in 1998, People’s Bank of Commerce is the only locally owned and managed community bank in Southern Oregon. People’s Bank of Commerce is a full-service, commercial bank headquartered in Medford, Oregon with branches in Albany, Medford, Ashland, Central Point, Grants Pass, Klamath Falls, Lebanon, and Salem.

Southern Oregon Business Journal July 2021 | 35

Welcome to Umpqua BroadBand!

High Speed Internet for Rural Douglas County.

Rural homes, farms, ranches and businesses now have an option. We have towers strategically located all over the Umpqua Valley. We have hundreds of happy customers that have made the switch to Umpqua Broadband™, replacing their slow DSL or Exede wireless service. umpquabroadband.com 845 SE Mosher Ave, Roseburg, OR 97470 (541) 672-3793 customercare@umpquabroadband.com

36 | Southern Oregon Business Journal August 2021

Please SUPPORT YOUR JOURNAL. If you want to continue seeing news about Southern Oregon Businesses and Oregon News that will impact all of our businesses then please support us.

Be sure to visit SouthernOregonBusiness.com and sign up for FREE emails. We don’t spam and we do not sell your email address. We will send you an email at least once a month to let you know that our newest print version is out and available online.

SouthernOregonBusiness.com

Southern Oregon Business Journal March 2021 | 37

Results Imagery teams up with One Tree Planted to plant 100,000 trees annually in Oregon in response to wild res.

BY KYLE NELSON CEO/CCO RESULTS IMAGERY, INC.

O

n February 1, 2021 in Bend OR, Results Imagery announced it’s goal of planting 100,000 trees annually in support of reforestation efforts throughout the state of Oregon.

Founders of the e-commerce content brand stated “This is our home and we need to do all we can to give back as a company and maximize our impact.

With One Tree Planted we’ll be doing just that.”

“It allows our clients to be part of the reforestation journey with us” said CEO Kyle Nelson.

The company has also taken its program a step further, offering brands that are doing social good a 5% discount on any work they do with Results Imagery.

“It doesn’t just stop with Results Imagery planting trees,” says President and COO Eli Libby. “There are so many brands doing powerful social impact work and we want to do everything we can to share their work through top-quality photo and video. We’re here to tell their story and the 5% discount re ects our commitment to doing just that.”

For more information on Results Imagery’s Reforestation Program, please visit: https://www.resultsimagery.com/snapone-plant-one

The plan for reaching this annual goal is tied to a new Corporate Social Responsibility (CSR) program that the company has launched that ties in directly with their media work. Results Imagery empowers brands with photo & video content. For every photo taken and every minute of post-production video created, Results Imagery has committed to plant one tree.

fi

fl

fi

38 | Southern Oregon Business Journal August 2021 fi

fl

SMALL BUSINESS IMPACT

About Results Imagery We bring products to life. We specialize in streamlining the process for online retailers, brands and agencies to obtain quality product photos and videos ef ciently and with conversion top of mind. We understand the ebbs and ows of eCommerce, but the one thing that is always a must is product imagery.

About One Tree Planted One Tree Planted is a 501(c)(3) nonpro t organization. As an environmental charity, we're on a mission to make it simple for anyone to help the environment by planting trees!

A

merica is a country known for overcoming extreme obstacles.

In fact, it seems we seek them out just to prove we can beat them. If you’re rmly planted on our soil in work-boots and determination you may be one who refuses to use the word ‘obstacle’ instead, calling it ‘opportunity’. That’s a mindset, mindover-matter kind of determination. And our history has thousands of excellent examples.

We’re Better Than This

Throwing vast amounts of money at things may be the wrong thing to do.

Political favoritism is likely to (eventually if not immediately) cause more problems than it cures.

Finding individual fault can be divisive and a waste of time.

Sloth is one of the Seven Deadly Sins; don’t be lazy.

Today we have some problems. Pretty big ones. Maybe not the biggest ever but certainly the biggest in a couple of generations. The truth of the matter is we probably wouldn’t be too concerned about some of them if they were standing alone. It’s the number of them coming at us all at once that can be eyepopping. They must be sorted into a priorities list organized in a way to get them quickly and ef ciently resolved.

Goals are dreams with a deadline.

Don’t bank on dreams.

Gifts and handouts can become habits, like riding a tiger that becomes more dif cult to dismount the longer you stay on board.

We have the Covid pandemic, wild res, homelessness, PTSD, business closures, unemployment, a housing problem with income gaps, education challenges, water shortages, heat waves, climate change, hunger, infrastructure failures, inequity in many things, drugs, crime and violence, healthcare affordability and availability, and, and, and... the list can go on.

Finding fault is one thing of which there is no shortage. No surprise, since the skills we have in abundance are those we practice most. Too many seem to be vying for the gold medal in expressing what is wrong. The competition is erce, but in my book deserves no praise.

At a business meeting, I once had a boss who said from that point on, “Every complaint must be accompanied

Maybe that would be a good place to stop. A couple of things to realize:

with a suggestion for solving the issue of concern.”

Technology with its array of social media creations can be both a curse and a blessing depending on our abilities to use them. Devising methods to effectively map our way through the jungle of thoughts and ideas ying in our faces is a must. The Type ‘A’ person who races to the front of the room determined to be the one in charge may not be the best leader. Consider the quiet thinker sitting in the rear.

Then sort through the possibilities to select the best ideas. Discard bad ideas without remorse. That’s decision making.

Scattered thoughts might spur your mind to grasping ways of mending a few of our challenges. Your thoughts are extremely important. Share them.

Who knows, one of them may be the valuable gem we’ve all been waiting for.

Greg Henderson is the retired founder of the Southern Oregon Business Journal. A University of Oregon graduate and a six year U.S. Air Force veteran, he spent nearly 30 years in banking and nance. His articles have appeared in dozens of publications concentrating on some 20 industry sectors. Contact him at ghenderson703@gmail.com

fi

fl

fi

fi

fi

fi

Southern Oregon Business Journal August 2021 | 39

fi

by Greg Henderson

Sponsors The Southern Oregon Business Journal extends sincere thanks to the following companies for their continued presence as important cogs in the wheels of industry in southern Oregon.

REACH

YOUR TARGET THROUGH

ADS Please check out our advertisers. We appreciate them for supporting the Southern Oregon Business Journal.

Managed Home Net Back Cover

People’s Bank page 32

Thousands of Business People get a chance to see your ad in the monthly Business Journal.

Oregon Connections Conference page 35

Send your ad copy to: Jim@SouthernOregonBusiness.com Jim Teece - Publisher

Amerititle page 4

Umpqua Broadband page 36

40 | Southern Oregon Business Journal August 2021

SOU page 43

NEWS BYTES

By Jim Teece

Abacela winery names Gregory Jones as its new CEO Abacela winery in Roseburg has named former Lin eld University director of wine studies Gregory V. Jones as its new CEO. Abacela’s owners, who also happen to be Jones’ parents, are pleased as punch. https://www.abacela.com/blog/Abacela-winery-names-Gregory-Jones-as-itsnew-CEO

DUTCH BROS AND ITS CUSTOMERS RAISE MORE THAN $1.9M TO HELP END ALS Dutch Bros and its customers raised a record breaking $1.9 million during its 15th annual Drink One for Dane day. The funds will be donated to the Muscular Dystrophy Association (MDA), the leading non-pro t organization in ALS research, care, advocacy, educational and professional programming https://www.dutchbros.com/news-events/dutch-bros-and-its-customersraise-more-than-19m-to-help-end-als

Bipedal robot developed at Oregon State makes history by learning to run, completing 5K Cassie the robot, invented at Oregon State University and produced by OSU spinout company Agility Robotics, has made history by traversing 5 kilometers, completing the route in just over 53 minutes https://today.oregonstate.edu/news/bipedal-robot-developed-oregon-statemakes-history-learning-run-completing-5k

.

.

fi

fi

Southern Oregon Business Journal August 2021 | 41

New SOU Cybersecurity Certi cate to bene t students, employers

EDUCATION

By Joe Mosley, Director of Community and Media Relations mosleyj@sou.edu

The Cybersecurity Certi cate can supplement a student’s bachelor’s or master’s degree program, or can be earned as a stand-alone credential. SOU’s 20 certi cate programs differ from the university’s 17 new microcredential offerings, in that they are more indepth and require additional coursework.

Both are aimed at preparing students for a changing job market by teaching speci c skills.

Southern Oregon University is addressing the pervasive issue of cyber criminals and a nationwide demand for workers trained to protect their organizations by offering a new certi cate program in cybersecurity. The program allows both existing SOU students and mid-career adult learners to become certi ed with job-ready cybersecurity skills after completing 36 college credits – nine courses.

issue that won’t go away anytime soon,” she said. “We want to give our students the tools they need to prevent, detect and counteract any attempts to compromise the computer systems of their employers.”

The new Cybersecurity Certi cate Program includes 20 credit hours of core, required courses on legal and ethical issues, computer organization, networks and security. Another 16 hours of elective coursework can include classes in computer forensics, programing, UNIX system administration, wireless networks and highlevel studies in networks, security or computer science.

“This is a program designed with the needs of both regional employers and job-seeking students in mind,” said computer science instructor Priscilla Oppenheimer, whose industry experience was a key in the design of SOU’s cybersecurity curriculum.

Oppenheimer designed and manages the cybersecurity research lab for SOU’s Computer Science Department. She previously developed and taught classes on computer networking and security for Cisco Systems, and has instructed network engineers worldwide in the design, development, con guration and support of complex and secure computer networks.

“We hear about hacks and cyber attacks almost every day in the news, and it is an

Students in the program should enter with precalculus and programming knowledge, similar to SOU’s two-course sequence in precalculus and the rst two courses of the Computer Science Department’s programming sequence. Most students are expected to complete requirements for the certi cate in about four terms, tting courses in around other work or educational commitments.

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

fi

fl

fi

fi

fi

42 | Southern Oregon Business Journal August 2021

“There is a huge nationwide demand for employees who are equipped to protect the computer systems of both large and small companies,” said Sherry Ettlich, chair of SOU’s Science, Technology, Engineering and Mathematics Division. “We chose to launch this certi cate, rather than the major that many other universities offer, to provide greater exibility and better serve those wanting to add this expertise while working in IT or related positions, or while working toward SOU degrees in computer science or other academic disciplines.

“SOU and the STEM Division are responding to the real-world needs of today’s employers, and preparing our students to succeed.”

The U.S. has an estimated 500,000 open jobs in cybersecurity as companies and organizations seek to protect themselves from the massive cost and disruption of security breaches.

Students in SOU’s new certi cate program will learn about common threats and vulnerabilities, security principles, cryptography, risk management, access control, wireless networking and network device con guration. They will be taught to develop secure software and to design and manage secure networks.

Leadership Begins at Southern Oregon University.

“SOU encourages leadership that starts with being inclusive.

Diverse people and ways of thinking create and nurture innovative leadership.”

Precious Yamaguchi, PhD Associate Professor, Communication

sou.edu

• 855-470-3377 Southern Oregon Business Journal March 2021 | 43

l

Southern Oregon Business Journa 5350 HWY 66, Ashland, OR. 97520 www.southernoregonbusiness.com