October 2020 In This Issue We’re In Good Company Page 1 President’s Message By Glen Simecek, President and CEO, Anyone needing further evidence of Page 3 ABA Column Bankers Association this fact should take a quick glance at the Some trace the recent Puget Sound Business Journal lists Page 4 Upcoming Virtual saying back to the of Washington’s most generous corporate Programs fables of Aesop. philanthropists. Events Calendar Others say its ori- Among large corporations, three banks – gins are found in the JP Morgan Chase & Co., Wells Fargo, and Page 5 Bankers Connect with Book of Proverbs. Bank of America – were recognized in the State, Federal Lawmakers It’s an adage quoted top 10 donors. U.S. Bank, KeyBank, Colum- by generation after bia Bank, and Banner Bank also made the BankWork$ Graduates Double Income generation of anx- top 25, meaning that banks filled almost a ious parents implor- third of those slots. Page 6 WBA Member News ing their children to Among midsize corporate philanthropists, pick good friends. another five were highlighted, including Page 7 2020 Virtual Education/ “You’re known by the company you keep.” First Financial Northwest Bank, which Human Resources At WBA, we’re very fortunate indeed to topped the list. Other banks listed in this Conference be known by the company we keep. Our category were HomeStreet, Heritage Bank, members not only provide the financial 1st Security Bank of Washington, First Fed- MDP Graduates 23 underpinnings of our state’s economy, but eral, and Kitsap Bank. Page 8 Finding Success with the they also are leaders in making our com- Three more banks were recognized in the Disrupted Customer munities better places to live, work, and small corporate philanthropist listing, and raise a family. Page 9 Industry News Continued on page 2 Continued from page 1 once again a bank – Sound Community Bank – occupied the top spot. Coastal Community Bank and Pacific Crest Sav- Issues & Answers – October 2020 ings Bank were the other two smaller banks noted for their The official publication of the Washington Bankers contributions. Association is sponsored by Harland Clarke and WBA Collectively, these institutions gave more than $20 million Professional Services to community non-profits across the state of Washington last year. Considering they represent only a fraction of the WBA WBA Staff Education Committee Chair: Steve Politakis, CEO, Kitsap Bank membership and many other member banks play similarly Glen Simecek, President & CEO important roles in their local communities, our industry’s (206) 447-1700, WBA PROS Chair: Ken Johnson, [email protected] EVP/Operations, Banner Bank contributions have a truly staggering impact. Liz Wilson, EVP & Chief Operating Every bit as impressive as the sheer dollar volume of this Officer ABA Community Bank Council support is the range of charities and causes that have been (206) 344-3495), Rep: Eric Pearson, President & CEO, the beneficiaries of these contributions. They include pro- [email protected] Community First Bank grams to reduce homelessness and create more affordable Kyle Hayden, Senior Accountant Directors housing; develop local job opportunities and stronger neigh- (206) 344-3476, Jay Coleman, SVP & Regional [email protected] borhoods; local K-12 schools and after-school education Credit Officer, KeyBank providers; colleges, universities, and workforce development Katherine Nyerick, Program Jeff Deuel, President & CEO, organizations; youth development services; domestic vio- Manager Heritage Bank (206) 344-3484, lence shelters and services; food banks; health care providers; [email protected] Steve Hatfield, Region Bank and the arts. President, Wells Fargo Duncan Taylor, Director of Put simply, our communities would not be as strong or as Membership & Operations Brian Hawley, SVP & Regional vibrant without the support of WBA member banks. (206) 344-3492, President, Union Bank [email protected] Our collective contributions are especially important to re- Jack Heath, President & COO, member as the impacts of the COVID pandemic continue to Sherry Krainick, Operations Washington Trust Bank Specialist be felt across the state. Banks have already played a key role (206) 447-1700, Susan Horton, Chairman, President in helping families, businesses, and communities weather the [email protected] & CEO, Wheatland Bank storm so far. From helping employers qualify for job-saving Megan Managan, Director of Greg Oakes, President & CEO, PPP loans to pitching in to support community response Communications & Government Cashmere Valley Bank Relations efforts, WBA members have led the way in responding to the (206) 344-3472, Thomas Perrick, SVP, JPMorgan social and economic challenges posed by this public health [email protected] Chase crisis. Based on our pre-session conversations with legislators, we Laurie Stewart, President & CEO, 2020-2021 Board of Sound Community Bank can expect banks to be asked to do even more in the months ahead. One of the most pressing issues on lawmakers’ minds Directors Clint Stein, President & CEO, Chair: Joe Kiley, President & CEO, Columbia Bank in our virtual meetings with them was loan forbearance – First Financial Northwest Bank what does it mean for the borrower? For the lender? How Dave Swartley, SVP/Managing ABA GR Committee Director State Government does it all work? Representative: Mark Mason, Relations, U.S. Bank Answering these questions will be an important part of our President & CEO, HomeStreet Bank Jennifer Williams, Consumer advocacy efforts in Olympia in 2021. As will be providing Immediate Past Chair: Jon Jones, Banking & Investment accurate and candid information to legislators who may not CEO, Washington Business Bank Operational Excellence Executive, always understand what is and what isn’t realistic to expect of Bank of America Secretary/Treasurer: Brent Beardall, lenders. President & CEO, WaFd Bank The good news is that data like that found in the PSBJ philanthropy ratings once again clearly demonstrate our Contact Us industry’s commitment to the local community and our Contact the Washington Bankers Association at 1601 5th willingness to invest to make it better. Compelling evidence Avenue, Suite 2150, , WA 98101 is right there in the numbers. Call us at (206) 447-1700 and visit us on the And in the company we keep. web at www.wabankers.com.

Connect With Us Connect with the WBA online by following us on our social media accounts.

On the Cover Fall colors glow at the Seattle Japenese Garden, located in the southern end of the Washington Park Arboretum. Photo courtesy Rachel Samanyi.flickr Personal Finance for the Pandemic Era: Why Bankers Should Deliver Fin Ed Lessons Today By Rob Nichols, President and CEO, American Bankers tools to facilitate savings, and banks are a reliable source Association for both. The pandemic has forced many To help banks meet that demand—and prevent fi- lessons on us, not the least of which nancial regrets in the first place by teaching financial is the importance of being prepared. fundamentals to today’s youth and young adults—the I don’t mean being-well-stocked-on- ABA Foundation has adapted its financial capability toilet-paper prepared. I mean having programming for today’s virtual world. Teach Children the ability and resources to survive to Save lessons went virtual in April, and Get Smart an uncertain and even perilous About Credit, our fall program, has also been adjusted to period. For businesses, that clearly include new resources and notes for delivering effective requires having a well-crafted and virtual presentations, as well as new modules around tested business continuity plan. For saving for the unexpected. households, the most important pre- We all know that strong personal finance skills are paredness tool may be a well-funded savings account. essential to success in life. In fact, a majority of respon- Those who may not have fully appreciated this before dents in the latest Charles Schwab Financial Literacy COVID-19 certainly understand it now. In fact, a Bank Survey said that money management was the most Rate survey this summer found that Americans’ top important skill for children to learn, outranking the financial regret is not having enough emergency savings dangers of drugs and alcohol, healthy eating and exercise to withstand the crisis, followed closely by not having habits and safe driving practices. And nine in 10 agreed enough retirement savings. that a lack of financial education contributes to some This presents an important opportunity for banks, of the biggest social issues our country faces, including which can—and should—help support both established poverty, unemployment and wealth inequity. and fledgling savers as they pursue their savings goals. Which brings us to another lesson learned from the Nothing is more fundamental to financial wellness than pandemic: Significant disparities in health, education savings. and job opportunities persist. Those disparities have Given the massive economic dislocation caused by the exposed some populations to greater risk—of catching pandemic, this may seem an odd time to exhort others COVID-19 or losing a job—and they’ve left some chil- to save. Many are suffering from loss of income and dren more vulnerable than others to the negative effects find it challenging to pay their expenses; how can they of school closures. possibly set aside money for a rainy day when it’s already Education, including financial education, can help pouring? But there’s reason to view this as the ultimate reduce these disparities and give all Americans an equal teachable moment, and an ideal time to convert lessons opportunity to prosper. Few are more qualified to deliver into action. lessons in personal finance than bankers, so I strongly In a July survey of hourly workers (by DailyPay and encourage you to register as a volunteer for a financial Funding Our Future), 51 percent said that coming out of education program today. The ABA Foundation makes it the pandemic, they are more likely to save for the future, easy—and free. Visit aba.com/FinEd to learn more and as opposed to 15 percent who said they were less likely sign up. This is one of the most important ways bankers to do so. Meanwhile, 65 percent said they don’t have any can make a long-term difference in the lives of others. type of savings account, and 62 percent said they would The more individuals we reach with this valuable in- be able to save more if there was an easier way to set formation, the better off our communities will be. And aside a portion of their paycheck. there’s no doubt it is better to learn personal finance These data point to a clear demand for information and lessons in a class-Zoom than in a crisis. Registration Now Open Learn from ABA Subject Matter Experts at Northwest Compliance for 2021 Executive Conference Oct. 15-16 Development Program The OBA/WBA Virtual Northwest Compliance Con- ference will be held October 15-16 and we are thrilled to Registration is now open for our flagship DevPro, the have ABA subject matter experts joining us. 2021 Executive Development Program. Beginning in late January, this 12-month program fo- Hear from ABA Executives Nessa Feddis, Rod Alba, cuses on preparing a new generation of executive leaders Kitty Ryan, Rob Rowe, Krista Shonk, and Diana Banks within the bank. To date, almost 400 students have com- for the latest updates from a regulatory and legislative pleted the program since 2010, and many have advanced perspective on mortgage issues, fair lending, BSA, CRA, to senior- and executive-level roles within their organiza- and flood insurance. tions. Due to the ongoing uncertainty surrounding in-person See the full agenda (now updated!) online and register classes, WBA has planned 2021 as a virtual program, but to reserve your spot today at www.wabankers.com/nwcc. if the situation changes we will move classes to an in-per- son format, which will be communicated to students as Space for the Development Programs will be limited to soon as possible. keep classes small. Returning in 2021 is our newest session, exploring WBA is also moving the following conferences to a fintechs and how they play into the banking landscape. virtual format: Northwest Compliance Conference, Taught by Dave DeFazio, partner at StrategyCorps, and Northwest Agriculture Conference, Fintech Conference, Joe Sullivan of Market Insights, students will learn about Women in Banking Conference, and the Bank Executive the wide variety of fintechs and how they can view part- Conference. nerships with these innovators. This year’s Women in Banking Conference is taking on a WBA understands that a crucial piece of the EDP ex- new schedule to better fit the virtual format. The confer- perience is networking with fellow students. To replicate ence will be held on October 29-30 from 8:30 am to noon that in the virtual classroom, we’ve built in time during both days. Featured speakers include Cindy Solomon, each month’s session specifically for networking. This Kristen Hadeed, FDIC Chair Jelena McWilliams, and allows students and advisor Joe Zavaglia to connect on Fiserv’s Virginia Heyburn. Banks have two registration issues facing the industry. options for this event, either individual or bank-level. The EDP fills quickly and is open to students from Bank-level allows any banker within the organization to Washington, , and , so register before De- attend both days of the event. cember 1 to ensure a spot and the best pricing possible. In late October, the WBA is joining forces with the Registration is also open for the 2020 Retail Branch Oregon and Idaho Bankers Associations for the 2020 Manager Development Program, which will also be held Virtual Northwest Agriculture Conference. On October virtually. Given the rapid changes in the retail banking 27, bankers can learn from Dr. David Kohl as he discusses space, WBA updated this program with input from the the current ag banking landscape and hosts a discussion Retail Banking Committee to make sure sessions reflected session with bankers about the industry. Attendees will the current environment within branches. also learn from Bill Bryant about imports and exports in Classes for the Executive Risk Management Develop- the , University of Idaho Professor Ben ment Program begin in November. This program has also Eborn about the regional economy, and ABA’s Ed Elf- been updated to fit the current environment and the vir- mann with a national update. Bank clients are also invited tual format. As risk management becomes an increasingly to attend the event for reduced admission. focused piece of the industry, banks need to have quali- On December 1, WBA will partner with the Utah Bank- fied and informed bankers. The ERMDP can help elevate ers Association for the Virtual Bank Executive Confer- your bank’s risk management to a new level. ence. Thanks to the nature of virtual platforms, WBA is also Please visit the WBA website at www.wabankers.com for opening these programs to our partner banker associ- more information about registration for any of our upcom- ations, including Oregon, Idaho, Montana, and Utah. ing fall programs.

October 15-16 – Virtual NW Compliance Conference November 5 – Virtual Fintech Conference October 27-28 – Virtual Northwest Agriculture November 12 – Virtual Executive Risk Management Conference Development Program October 28 – Virtual Retail Branch Manager December 3-4 – Virtual Bank Executive Conference Development Program January 26, 2021 – Virtual Executive Development October 29-30 – Virtual Women in Banking Program Conference Events *Classes and conferences will be virtual unless otherwise noted. Calendar To register or to learn more about any of the listed events, please visit www.wabankers.com. WBA Members Connect with State, Federal Lawmakers and Agencies Throughout September, WBA member bankers have the oppor- tunity to meet and learn from state and federal lawmakers, as well as federal regulatory agencies. The WBA hosted a series of virtual Legislative Roundtables where bankers and lawmakers from different regions of the state discussed current issues. Bankers banks who participated in this had the chance to share how their year’s events. forbearance programs are work- At the end of the month, WBA hosted a variety of meetings with ing for customers and what their members participated in the Washington’s Congressional del- outlook on the housing and rental Western States Virtual Washington egation, sharing with lawmakers markets in the state might look D.C. Fly-In. Bankers heard from how the PPP worked in real time like. federal agency leaders from OCC and learned what the outlook will Lawmakers at the events asked Acting Comptroller Brian Brooks, be for future stimulus packages. questions on policies affecting FDIC Chair Jelena McWil- Thank you to the American their constituents, ranging from liams, and CFPB Director Kathy Bankers Association for organiz- how the housing market may im- Kraninger. Bankers were able to ing the virtual fly-in and to all of pact residents, what banks are do- learn about the current issues at the bankers and banks who partic- ing in their communities, and how each of the agencies and ask ques- ipated. the Paycheck Protection Program tions and share how these policies If you are interested in learning helped local businesses. are impacting the bank and their more about WBA’s advocacy efforts Thank you to all the bankers and customers. and how to become more involved, During the same week, WBA visit www.wabankers.com. Top left: Washington bankers meet with state representatives from the Tri-Cities area during the Legislative Roundtables. Top right: Rep. Suzan Del Bene spoke with bankers about PPP and forgive- ness during the virtual Washington D.C. Fly-In. Left: Glen Simecek asks a question of CFPB Director Kathy Kraninger during the Washington D.C. briefing. Right: Rep. Denny Heck spoke to bank- ers about challenges facing businesses during the COVID-19 pandemic. Study Shows BankWork$ Graduates Double Income, High Return on Banks’ Investments By Megan Managan, Director of Communications & Program Manager Mercedes Rippel. “The staff was amazing Government Relations, Washington Bankers Association in getting all the data they requested. We were hauling boxes Before the pandemic forced BankWork$ to pivot to a work- out of the storage unit and digging through everything.” er readiness curriculum, CareerWork$, parent organization The analysis, completed by Kinetic West in April used data of BankWork$, commissioned an analysis of past graduates from BankWork$ participants over 2014 and 2015. and how their lives were impacted by the program. It found that students who completed the BankWork$ “We thought it might be positive information,” said YWCA program on average see a 134 percent increase in wages over Seattle | King | Snohomish’s Mike Schwartz. “We track the first three years after graduating, compared to wages participants for 12 months after completing the program, earned in the year before joining the program. After just one but this was a real opportunity for us to see longer term. It year, graduates saw a 61 percent increase in wages. Gradu- exceeded our expectations.” ates are likely to earn more than $1 million more in wages “It was an intensive project,” said YWCA BankWork$ Continued on page 9 WBA Member News As much of the West Coast was mired in smoke from the fire, the bank donated $25,000 to help those impacted by the fires in California, Oregon, and Washington.

Commencement Bank Branches Donate to Local Food Kitsap Bank Hosts From Shred to Fed Event Banks This fall, Kitsap Bank partnered with local food banks to Commencement Bank turned missing their annual com- help those in need through the bank’s From Shred to Fed munity appreciation barbecue events into an opportunity to events. highlight the need for food banks in their communities. Branches throughout the bank’s network hosted a shred The bank’s branches shared the importance of supporting event for people to bring sensitive documents for safe these local efforts during the COVID-19 pandemic, collect- destruction each Saturday in September and October and ing donations for local organizations and schools. The bank encouraged monetary donations to the local food bank at donated to Olympia School District to help provide foods the same time. to kids who rely on the district for meals, as well as Nour- During the first weekend, the bank raised $2,300 for the ish Pierce County which helps provide food to residents in Sequim Foodbank and over $6,000 for the Port Townsend need. Food Bank.

Sound Community Bank Leader Named PSBJ Director of the Year Sound Community Bank President & CEO Laurie Stewart was recently named one of the Puget Sound Business Jour- nal’s 2020 Director of the Year. The award recognizes outstanding contributions to a range of companies in the Pacific Northwest. These directors -ad vocated for diversity on boards and helped their companies and non-profits navigate through the ongoing pandemic and its economic fallout. Pacific Crest Savings Bank Donations to Clothes for Kids Bank of America Employees Volunteer, Each fall, Pacific Crest Savings Bank collects Donate During COVID donations for Clothes for Kids, and this year, Members of the Greater Seattle Bank of despite the pandemic, the bank continued the America team found creative ways to volunteer tradition. despite the ongoing pandemic. The bank raised over $9,500 for the organi- Members of Michael Bailey’s team participat- zation, which helps provide clothing to kids in ed in mock interviews for Year Up Seattle, a need. program that helps students learn about vari- ous industries and participate in internships. Olympia Federal Donates to South Sound Other members of the team, including Steve YMCA Harlow, senior vice president, and private In August, Olympia Federal Savings donated client advisor, helped the United Way of King to the South Sound YMCA as part of the bank’s County gather snack packs for summer youth Two Cents program. programs to provide a nutritious breakfast and The bank donated $2,673 thanks to a two- lunch. cent donation from each debit card transaction by bank customers. Heritage Bank Employee Donates to Food Lifeline As children and families prepared to go back to school, Columbia Bank Donates to Wildfire Relief Loan Operations Manager Kim at Heritage Bank helped In mid-September, Columbia Bank announced a donation to the American Red Cross to help with wildfire relief. Continued on page 10 with a different lens can change the Trainers, Human Resource Bankers way we work together and tackle prob- lems. Learn Virtually at Annual Conference After lunch, attendees chose between As they’ve adapted to new online for- work on Paycheck Protection Program two breakout sessions, focused on mats for most of the year, bank trainers loans and the training and and human resource professionals work they are human resourc- adapted to the new virtual 2020 Educa- doing to sup- es. tion/Human Resources Conference in port employees, Katheryn mid-September. customers, and Bradley, a Bankers from throughout Oregon communities. sharehold- and Washington learned together She was fol- er with Lane during the day and a half event, em- lowed by Edu- Powell, outlined ceed by Coyte Cooper, a performance cation Commit- what employees coach, and motivational expert. tee Chair Steve need to know In his keynote address, Cooper out- Politakis, CEO about leave and lined how attendees can flip the script of Kitsap Bank, accommoda- to reprogram their brains to think in a who provided tion during the positive way instead of getting dragged an update on the industry, including pandemic, including what new laws down by negative thoughts. He said some of the recent successes and chal- and regulations may impact individual using his techniques to think about lenges facing our region. Next, Duncan organizations. challenges in a good way will help Taylor, WBA’s director of membership Todd Hudson, head of the Maverick inspire your work and habits. and operations, outlined various ways Institute, focused his session on learn- Laurie Stewart, president and CEO of the banks can utilize online training ing at the speed of lean, including ways Sound Community Bank and current platforms. that banks can use a lean system to be ABA Chair, provided a quick update In the last session of the morning, more productive. on the industry and why continued Rachelle Strawther, director of lead- Betsy Hubbard, founder and pres- advocacy throughout the banking ership training and development at ident of Mindset Digital closed out industry is crucial. She commended Gonzaga University, discussed design the day with her session on commu- bankers in Washington for their strong thinking, and how looking at issues Continued on page 9

“I was able to take away so much 23 Students Graduate First Virtual from the class,” said one student. “I would highly recommend it to anyone. Management Development Program Plus, the virtual classes were set up At the end of August, WBA celebrat- emotional intelligence, sales, and more. very well with amazing instructors.” ed the graduation of its first all-vir- Graduates of the program said they Congratulations to: Kelly Adamson, tual program, the 2020 Management felt the virtual classes were highly ben- Washington Trust Bank; Shawna Al- Development Program. eficial and were glad to hear that other exander, Cashmere Valley Bank; Edith Twenty-three students completed the students were dealing with similar Amante, Cashmere Valley Bank; Erica classes, which ranged from learning challenges in the workplace given the Anaya, North Cascades Bank; Frank about the last economic downturn, to rapid number of changes they’ve faced Barker, Sound Community Bank; Mi- communication strategies, leadership, this year. chelle Beier, Sound Community Bank; Stefanie Boller, Bank of Eastern Ore- gon; Tiffany DeLeon, North Cascades Bank; Christopher Dungca, WaFd Bank; Jenelle Ellis, Kitsap Bank; Jana Flores, Cashmere Valley Bank; Breana Gaches, WaFd Bank; Shelly Hankins, Bank of Eastern Oregon; Erin Hayden, First Sound Bank; Carrie Heaton, Kit- sap Bank; Richard Kilby, WaFd Bank; Alexa Meagher, Commencement Bank; Genevieve Reynolds, Heritage Bank; Jamie Shigeno, WaFd Bank; Teresa Smith, North Cascades Bank; Rick Wagner, First Federal; Samantha Wells, WaFd Bank, and Anni Woo, WaFd Bank. The next Management Development Program will be held in 2021. WBA Endorsed Vendor: Harland Clarke Finding Success With the Disrupted Consumer By Stephenie Williams, Executive Director, Acquisition magnified by the events of 2020. It’s not far-fetched to Solutions assume that consumers will seek advice on how to in- The massive economic harm inflicted by the coro- crease their savings. Financial institutions that choose navirus lockdowns on consumer finances has been a consultative approach by taking the time to find out stunning. Months of frantic financial uncertainty have exactly what their savings goals are and helping to prompted consumers to conduct a form of “service achieve them, tend to build lasting and meaningful relationship triage,” in which they evaluate which relationships with greater results. relationships truly provide value to them, and which they’ll leave behind in their transition to economic Growing Core Deposits: A Three-Pronged Ap- recovery and well-being. proach The sudden shift in consumer attitudes and behavior Now more than ever, low-cost deposit acquisition has raised the broader question of what this means for should be every financial institution’s number-one financial institutions, leading them to the pursuit of priority. Having a sustainable surplus of core deposits critical answers. is vital in a lending environment that is more challeng- Some questions can be answered more definitively ing and competitive than ever. Harland Clarke recom- than others. But it’s very clear that in order to compete mends a three-pronged approach, with equal weight for and retain the newly enlightened and thought- given to each part. ful consumer, financial institutions must focus their 1. Attract New Money from New Customers attention on providing the loans to restore lifestyles Be clear on who you’re targeting and saturate the to pre-pandemic levels, as well as assist in building a market with a highly visible, omnichannel marketing stronger cushion of future savings to be better pre- strategy. In light of the enormous levels of email clutter pared for the next unexpected financial crisis. caused by the response to the coronavirus, we recom- But there is a brand new hurdle to overcome. Con- mend a campaign that focuses on an old standard, sumers are hesitant to return to bank branches. Eighty- direct mail. two percent of customers are concerned about going Then, measure the response and adjust the plan to into their bank. That, of course, means fewer of the provide your audience with more relevant content. To face-to-face consultations that are vital to successful target more surgically, utilize consumer profiles and banking relationships. Frustrating, certainly. data analytics to uncover affluent prospects with high To do nothing, of course, is not an option. A prov- balances and attract them with deposit incentive offers en and practical strategy, and one that we at Harland that increase response rates. Or drive fee income by Clarke recommend, is to deliver a cross-channel brand targeting customers who use their debit cards fre- experience that is compelling, consistent and continu- quently. ous. Once you’ve perfected your strategy, don’t make the A renewed dedication to savings mistake of going silent. Engage sporadically and you Recent studies show that most Americans lack sav- risk losing prospects to the growing legion of swooping ings to pay for emergencies: competitors, both traditional and disruptive. • Thirty-eight percent of consumers had less than 2. Grow Deposit Balances From Existing Customers $1,000 saved to cover expenses in event of a job loss We all know the cost to acquire exceeds the cost to re- • Sixty-five percent of younger Millennials (ages 18 tain, making it measurably important to never take the to 24) can’t cover six months’ worth of living needs of your existing customer base for granted, or expenses, followed by 60 percent of older they are likely to leave. An effective strategy to deepen Millennials (ages 25 to 34) existing relationships is to identify low-service custom- • Only 27 percent had $10,000 or more in savings ers and aggressively cross-sell them new products and • Average savings is $8,8635 services.

The impact of those numbers, no doubt, have been Continued on page 11 Continued from page 5 er from poverty to self-sufficiency with a single adult in King over their lifetime than they otherwise would have, based on County becoming self-sufficient, by the state’s standards, wage data from the Washington State Employment Security within three years, versus 27 years for a non-participant. Department. “We’ve seen that as students start the program homeless or Thanks to the robust partnerships with local banks, the living with family, and shortly after they are hired, can move program has expanded in recent years, now including class- out,” said Rippel. es in South King County, Seattle, Snohomish County, and Another bonus for banks hiring graduates, 52 percent of on the Eastside. Thanks to BankWork$ participants those partnerships, accord- are bilingual or multi-lin- ing to the study, graduates’ gual, which helps improve employment is 39 points access to banking services higher three years after for people who speak lan- completing the program guages other than English. than those who don’t enroll. And 82 percent of Bank- For partner banks who have hired BankWork$ graduates, Work$ graduates are people of color, reflecting the diverse there has long been anecdotal evidence – these hires stay communities where many banks have branches. longer and are promoted faster. YWCA data has found that “This helps diversify the industry and customers see people one year after graduation the retention rate is 80 percent, in the branches who look like them,” said Schwartz. compared to closer to 65 percent for most job placement The study also found that approximately 20 percent of programs. Washington state households are underbanked, but when “One of the great things about banking is that you don’t employees at their bank speak their language and look like have to have a degree to have a career and many banks will them, it’s more likely to encourage relationships. help with higher education,” said Rippel. “If students have Since its inception in Los Angeles in 2006, BankWork$ the motivation they will move up quickly.” has launched over 3,400 careers across the country. WBA Another plus for banks who hire graduates, the return on members have benefited from hiring these graduates since investment per program graduate is 16:1, based on local tax- the beginning of the program in Seattle in 2011. While the es paid by graduates. Because graduates pay an estimated 70 program’s classes are currently on hold due to the pandemic, percent more in local, state, and federal taxes, BankWork$ CareerWork$ has been working behind the scenes to pre- students help support local economies and local businesses. pare BankWork$ curriculum to move to more of a hybrid This also means, according to the study, that states spend approach, incorporating more computer skills in addition to less on social services for these graduates, compared to the in-person classes. non-participants. To learn more about the program, visit www.bankworks. Another benefit the study found is that graduates shift fast- org.

Continued from page 5 relating to the pandemic and what nication in the current environment. banks need to know and consider She discussed how people are easily for their employees. Kassy LaBorie, a distracted and bombarded with mes- principal consultant for Kassy LaBorie sages today, so making sure messaging Consulting, covered the best ways is short and understandable is key to to engage in virtual online training. getting the word out. Now that we all live in a virtual world, On the second day, Kevin Parker, LaBorie shared her tips for helping owner of Dutch Brothers Coffee in trainers make the most out of their Spokane, discussed resiliency, posi- sessions. tivity, and how to adapt. A survivor Shanon Olsen, vice president of busi- of the Columbine shooting in 1999, ness development for Henley Leader- Parker talked about how this year, in ship Group, closed the conference with particular, has challenged everyone a session on collaboration. She dove on multiple levels and provided some into ways teams can break down orga- simple tips to overcome feelings of nizational silos to work better together, being overwhelmed. even in a virtual format. In the next set of breakouts, Mike The 2021 Education/Human Re- Kitson, a shareholder with Lane Pow- sources Conference will be held on ell, covered employment law updated May 10-12, 2021 at the Historic Dav- enport in Spokane. Continued from page 6 donate supplies for those in need to Food Lifeline. She volunteered during the Food Lifeline Food Drive Pa- rade which collected 661 pounds of goods and raised $775. That equals approximately 3,875 meals for families through- out the greater Seattle area.

First Interstate Bank Hosts Third Annual Volunteer Day Employees across the First Interstate Bank footprint took an afternoon off in early September for their third annual Volunteer Day, when employees are encouraged to volun- teer in their community. Projects ranged from working at the Spokane Neighbor- hood Action Partners making hygiene kits for the commu- nity, to working in animal rescues and sewing masks. During the event, employees served 266 organizations with 1,881 employees volunteering for a total of 6,657 hours. The bank also donated $66,000 in mini-grants to local organizations.

1st Security Bank of Washington Hosts Shred Events In mid-September, 1st Security Bank of Washington host- ed a Shred-It event at the Hadlock branch. Employees from the Hadlock and Port Townsend teams volunteered at the event, accepting sensitive documents for correct disposal. The bank also hosted two other events later in the fall at their Aberdeen and Lacey branches.

Bret Bajema Bobbi Stringer Industry News Branch Manager at Olympia Consumer Loan Coordinator/ Federal Savings Underwriter at First Federal New Hires Promotions Angela Roberts Sharon Davis Theresa Stevens Dean Oberst Loan Officer at Olympia Federal Executive Vice President, Bank Quality Control Coordinator at Senior Vice President and Credit Savings Operations and Client Experi- Washington Trust Bank Risk Manager at Washington ence at Seattle Bank Trust Bank Maria Cook Erin Anderson Loan Officer at Olympia Federal Diana Steiner Controller at Peoples Bank Rachel Rudenski Savings Executive Vice President, Credit Branch Manager at Olympia and Loan Operations at Seattle Ken Kilbreath Federal Savings Aubri Burmood Bank Senior Vice President and Loan Officer at Olympia Federal Wealth Strategist at Key Bank Mari Madsen Savings Have Industry News to share Family Wealth Loan Underwriter at Olympia with WBA? Email megan@ Federal Savings Tim Schell wabankers.com or call (206) Mortgage Loan Representative 344-3472. at Peoples Bank Continued from page 8 equity lines continued their multi-year, pre-pandemic Take a generational approach to how you engage cus- fall to levels that have caused some of the nation’s larg- tomers. For instance, educate younger segments on the est banks to no longer accept them. value of saving (a challenge for this generation) — and Personal loans are thriving. Growing at a faster rate show them how. And for your more mature segments, than auto, mortgage, credit card and student loan encourage customers to consolidate and centrally man- debt, personal loans have experienced an 11 percent age their financial assets. year-over-year increase from 2018, with more than 38 3. Retain Your Most At-Risk Customers million accounts nationwide today. Among the reasons customers choose to switch finan- Auto loans are speeding ahead. The average new auto cial institutions is that, if they have a single service, it’s loan worked out to a shocking $32,187 during the first relatively easy to go for the better rate. Understanding quarter of 20199 and eight percent of respondents in the numbers behind attrition provide you with the in- an Experian® survey conducted during the COVID-19 sight you need to gain the loyalty of at-risk, single-ser- crisis said they still planned to apply for a new auto vice, rate-motivated customers. loan in the next six months. Though it may feel counterintuitive, connecting with Not surprisingly, effective loan marketing strategies at-risk customers through lifestyle-based messaging, parallel those of deposit acquisition: acquire, grow, and and not product-specific messaging, has proven an retain. Sending the right offer to the right customer at effective strategy. the right time increases the likelihood of response. Also, the importance of delivering a frictionless Consider implementing a single-loan, pre-approv- customer experience and making it easy to work with al campaign to acquire new loan customers. Grow your institution cannot be overemphasized. Even the existing relationships utilizing a credit pre-screened, most stable and connected customers will consider multi-loan pre-approval solution that reaches existing leaving after a bad experience. customers through online and mobile banking. Mar- keting single and multiple-loan products to qualified Prepare for the Post-Pandemic Lending Shift consumers, not only increases your institution’s overall Consumers are looking forward to getting back on loan potential, but also lowers its cost per loan – plus, their feet. And with a strong desire to quickly return to it delivers a positive customer experience. pre-pandemic lifestyles, they’ll soon be borrowing like Retain at-risk customers through next-level cross-sell never before — if not already. engagement. Our clients have achieved great results While mortgage applications continue to hold steady using our trigger-based, pre-approval solution that throughout the pandemic (in the week ending May 8, reaches customers with an offer when an inquiry is 2020, purchase applications rose 10.6 percent), home detected from any of the three leading credit bureaus. Within 24 hours of an inquiry alert, financial institu- tions can immediately offer a credit-screened, prese- lected mortgage, auto, credit card and personal loan by phone, mail or email to customers while they’re still shopping. There’s a science behind every approach. If you want to attract, grow and retain high-value customers, you must be able to engage them on their terms. If you do it successfully, you become the resource they turn to again and again. Let’s continue the discussion.

Stephenie Williams is the Executive Director of Acqui- sition Solutions for Harland Clarke. Stephenie has over twenty years of experience in Direct Marketing, Strategic Planning, Product Management, and Promotions in the financial services, retail and automotive industries. THANK YOU TO OUR SPONSORS!

Gold

Silver

Bronze

2020 Virtual Education/ Human Resources Conference