Banking news and stories to help you maximize the financial success of your business Q3 2022
CUSTOMER SPOTLIGHT:
TRANSPO GROUP
Designing the way people move—in the U.S. and beyond
IN THIS ISSUE Meet our Tacoma commercial lending team Tips to avoid charity scams Heritage Business Express loans
a publication of
“[Heritage has] just been very supportive in understanding our needs that have been pretty unique.”
Contents
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Black United Fund
Transpo Group
Vecteezy
– Bruce Haldors, CEO of Transpo Group
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Business Profile: Transpo Group....................................................... 2 Heritage Direct: Building Custom Reports..................................... 9 Meet our Downtown Tacoma Commercial Lending Team........... 14 Lessons from COVID-19: Looking Ahead..................................... 17 A Simple Way to Manage Patient Payments................................. 18
Director of Marketing Shaun Carson
IN EVERY ISSUE Heritage Helps....................................... 8 Our community involvement is part of our company’s DNA and something we’re very proud of. In this section, we highlight the good we’re doing in our communities.
We want to hear from you! Email us at BankingBusiness@HeritageBankNW.com with your feedback and ideas about what you'd like to read about in future issues.
Business Banking Mentor................... 10 A guide to understanding your key financial documents.
PNWonderland.................................... 12 Explore the unique sights and experiences of our Pacific Northwest.
Fraud Protection/Cybersecurity......... 19 Tips for researching charities before giving to avoid scams.
Financial Dictionary............................. 19 Empowering you to make smart business decisions by demystifying banking terminology.
My Heritage.......................................... 20 Meet our relationship managers and learn about their heritage.
Banking Business is a quarterly publication of Heritage Bank
DID YOU KNOW? Community banks constitute 99% of all banks. They channel local deposits into the neighborhoods they serve—spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. icba.org/newsroom/news-and-articles/2021/01/08/ icba’s-open-letter-to-the-117th-congress
Editor-In-Chief Whitney Gibson
Creative Director Erica Bolvin
Managing Editor Stephanie Neurer Contributors Tamara Brown Brian Moore Dave Purcell Kathy Swift John Stearns
Cover photo Olli Tumelius, Tumelius Media, LLC 3615 Pacific Avenue Tacoma, WA 98418 800.455.6126 HeritageBankNW.com © 2022 Heritage Bank, member FDIC, Equal Housing Lender. The information in this magazine is general education or marketing in nature and is not intended to be accounting, legal, tax, investment or financial advice. Although Heritage Bank believes this information to be accurate as of the date published, it cannot ensure that it will remain accurate. Statements of individuals are their own and do not necessarily reflect the position or ideas of Heritage Bank. Contact us at 800.455.6126 or visit HeritageBankNW.com to make an appointment with one of our local experienced relationship managers to discuss your individual business banking needs.
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A MESSAGE FROM OUR CEO
I Heritage Bank
n order to remain competitive in a rapidly evolving landscape, it’s essential for all businesses to ramp up investment in technology and digital capabilities.
Fortunately, we live in an area regarded as one of the top tech hubs in the country. Once known for its extractive industries, the Pacific Northwest’s economy rapidly transformed as entrepreneurs and startups brought new technology and innovations to the region. Following in the footsteps of their predecessors, many companies have jumped on the bandwagon and embraced innovation and welcomed digital trends.
Just like any other company, Heritage has learned to adapt. It’s no secret that banks are notorious for their high paper and energy use. Though both are known to be costly and burdensome, they’re still the assumed default for many banking transactions. That’s why, over the last few years, there’s been a big push for more digital banking options, not only for convenience but also the desire for greener products. That’s why we’re leveraging technology developed in-house to automate routine processes and streamline business activities, while also offering digital products that customers have come to expect. On page 21, we talk about one of our new solutions, Heritage Business Express, that was designed specifically for local businesses. The loan process is fast, convenient and requires minimal paperwork—meaning quicker turnaround times and access to the funds you need to continue running your business. Thank you for reading Banking Business and for trusting us as your banking partner. Sincerely,
Jeff Deuel CEO
CORPORATE CITIZENSHIP 2022
Jeff Deuel is chief executive officer at Heritage Bank. He has more than 39 years of banking experience. Prior to joining Heritage, he worked at JPMorgan Chase, WaMu, Bank United, First Union, CoreStates and First Pennsylvania Bank. Jeff is a past chair of the Washington Bankers Association. He currently serves on the board of the Oregon Bankers Association and Pacific Coast Banking School. He is an avid cyclist and has climbed to the top of Mt. Rainier.
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Bruce Haldors, CEO of Transpo Group, overlooks the intersection outside Husky Stadium, where cars, buses, light rail, cyclists and pedestrians move in concert with one another.
Olli Tumelius
Moving 70,000 people in and out of Husky Stadium at the University of Washington, located in densely populated Seattle, takes a lot of coordination between the university, police, transit authorities and others. This includes everything from changing signal timing to traffic rerouting to special signage. Transpo Group provides that expertise and has also provided transportation demand management strategies for the broader campus to encourage multimodal travel and reduce single-occupancy vehicle traffic.
moving business for 2
Issue 6 | 2022 Q3
Banking Business a publication of Heritage Bank
Heritage helps Transpo Group navigate complex business needs for far-reaching transportation planning projects
Bruce Haldors is the first to admit that the Kirkland-based transportation planning and engineering business he leads, Transpo Group, might appear small on the outside. Beyond its extensive U.S. work, it also manages projects and offices in the Middle East, which adds a layer of complexity belying its modest size. Haldors is grateful Heritage Bank has helped Transpo— which has more than 300 active projects at any one time—navigate along the way. The banking relationship’s roots date back to 2005, the year after Haldors took over as CEO and switched Transpo’s banking business to what was then a Bellevue-based startup, Puget Sound Bank, which Heritage acquired in January 2018. The transition to Heritage was seamless. “They’ve just been very supportive in understanding our needs that have been pretty unique,” said Haldors, CEO and a company shareholder. “It’s not like we’ve been a very traditional, easy business to bank with. I suspect they’ve kind of pulled their hair out at times trying to figure out, ‘What the heck?’” he added with a chuckle. “But they’ve been with us through thick and thin, so that’s been great.”
rward Equal Housing Lender | Member FDIC
ARTICLE BY JOHN STEARNS
Over the past several years, Transpo has been moving away from consolidation of its U.S. and Middle East offices and toward independence of each entity, including independent ownership, and Heritage has been a catalyst in that process, he said. As part of the transition, banking that Heritage formerly did for U.S. and Middle East operations has changed; Heritage now handles all of Transpo Group’s banking needs for U.S. projects. Transpo switched to foreign banks for its overseas work, but Heritage has helped manage the transition. continued, next page
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Focusing on ‘how people move’
“Most banks probably would’ve said, ‘Well, forget it, you need to find somebody else to help you through this,’ but they helped us navigate that,” he said of the foreign business and banking needs. “And they’re big enough to understand what the avenues are to make that happen, yet small enough to kind of hold your hand through it.”
Working in the consulting engineering business, Transpo focuses on transportation-related projects, both public and private. It doesn’t actually build projects but sometimes manages construction of projects it designs. Its transportation project planning and engineering is not heavy civil/structural engineering of infrastructure like bridges and highways; it’s more related to traffic signalization, traffic and pedestrian flow, including multimodal transportation and other “above the pavement” work, he said.
Transpo’s banker with Heritage Bank, Katherine Thompson, remained through the transition and served Transpo well until she retired in April this year. Her replacement, Britni Babington, vice president relationship manager, has been equally helpful, Haldors said. Transpo has about 105 employees, of which approximately 55 are based in the U.S. and 50 in the Middle East. Most U.S. workers are in Kirkland (45) with the remaining 10 in a small office outside New York City or working remotely from other states. Employees are mostly engineers with a mix of transportation planners and specialists in areas that include mapping and information systems. Haldors is among 13 U.S. employees who own shares in Transpo, a few of whom also have ownership in the Middle East office but are transitioning to U.S.-only ownership as the two entities complete their separation. The Middle East office is expected to take a new name eventually.
Transpo Group
The company was founded in 1975 by four people who combined their individual consulting practices into one, hence the name Transpo Group. When Haldors took over in 2004, there were about 30 employees. Staff has more than tripled since then, reflecting Transpo Group’s focus on expanding its project reach.
That can include traffic management plans for movement in, out and around shopping centers, housing developments, stadiums, convention centers, university campuses and cities. It also includes planning how to manage traffic flow to mitigate disruption during highway construction. In Dubai, United Arab Emirates, Transpo designed and helped operate a massive control center for the city’s sprawling traffic and transit systems. “Anything we do is really about how people move safely and efficiently—whether it’s riding a bike, where the bike lanes need to be, or designing sidewalks or crosswalks, or helping understand where access needs to be, or whether it needs to be signalized, or whether we need to put a roundabout there or we need to close off an access,” he said, explaining a few areas of the company’s diverse consulting expertise. If somebody is building a project, an architect or engineer typically lays out the site, after which Transpo might advise where the best access is or what that access should be, Haldors said. If that access is already determined, Transpo is often hired to handle the government entitlement processes for the project to help clients obtain approvals they need and to validate that the transportation system works. Transpo also ensures projects provide safe and equitable access for people of different socio-economic backgrounds and physical abilities. A local Transpo project involves consulting for the $1.9 billion Washington State Convention Center (WSCC) expansion underway in downtown Seattle, continuing work Transpo has done for every expansion since WSCC opened in 1988. Transpo has developed multimodal trip
Transpo Group is wrapping up design and transportation management plans for the Washington State Convention Center's latest expansion, left, in downtown Seattle, including helping to mitigate impacts from the project that will finish this year. Transpo has consulted for WSCC on every expansion since WSCC opened in 1988.
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Issue 6 | 2022 Q3
Banking Business a publication of Heritage Bank
Transpo Group
Transpo Group conceived, planned, designed and helped operate this Enterprise Command & Control Center, or EC3, in Dubai, United Arab Emirates. The facility monitors and manages all movement of buses, taxis, emergency vehicles, ferries and private traffic in the city of 3 million people. Its functions include adjusting traffic signals in real time, for example, as traffic conditions and needs change to ensure the most efficient and safe movement of vehicles and people.
generation estimates for different WSCC event types, plus comprehensive access and circulation analysis of pedestrian and bicycle mobility, transit and freight. Its work has included planning for and mitigating WSCC parking demands, vehicle access and construction impacts, and it also developed a comprehensive transportation and dock management plan. Transpo’s WSCC work is nearly complete but it continues to finalize design and transportation management plans.
follow-up consulting work for projects that win grants.
It has also consulted on pedestrian and vehicle traffic flow in, out and around Husky Stadium at the University of Washington, working with UW, the city of Seattle, King County Metro, Sound Transit and others on special traffic signalization, ingress and egress signage and more to mitigate and minimize impacts on traffic and pedestrian movement of 70,000 fans.
In the Middle East, where Transpo Group opened an office about 10 years ago, work has tended to be larger scale based on significant open spaces in which to plan transportation projects, Haldors said, so the projects tend to be larger master-planning efforts. Lately, there’s been more focus on transportation coordination, including various modes of transit.
For the broader UW campus, Transpo analyzed how different travel modes will impact UW’s transportation system and Transpo completed a comprehensive mitigation plan that included transportation demand management strategies to reduce single-occupancy vehicles and improvements to transit and bicycle facilities to encourage use of those travel modes.
But the work there also is much different, including requests for Transpo to help staff transportation agencies to help manage and run them, which is not as common in the U.S.
It has advised on traffic management for widening projects along the northern section of Interstate 405 from Kirkland to Lynnwood. That included advising on lane closures and other access issues to minimize traffic interruptions, he said. Currently, Transpo is fielding calls to help transit agencies, cities and others apply for federal Infrastructure Investment and Jobs Act funding, which could lead to
“We’ve been inundated with a number of these grant applications already, helping cities apply for this money that’s available for them to help move their projects along,” Haldors said, noting many cities and organizations don’t have the staff or time to do the grant applications. “We have experience in doing that as well as understanding the system as a whole and helping put the argument together to why it makes sense.”
A big project Transpo conceived and then helped staff in Dubai was the Enterprise Command & Control Center, or EC3. Like the name suggests, the facility monitors and manages all movement of buses, taxis, emergency vehicles, ferries and private traffic in the sprawling city of about 3 million people. Staff take all the information on those transit systems and adjust them in real time as traffic conditions and needs change. For example, EC3 could change signal timing in an area to improve traffic flow, send more taxis to a zone, provide backup water transit if a ferry goes out of service and more, he said. The work improves traffic movement, which reduces environmental impact as well. continued, next page
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Transpo did everything from help conceive the plans for EC3, ultimately plan it, design it, then help operate it once it opened in 2018. “We took that the whole way. We just don’t do that scale of project here in the U.S.” for a city the size of Dubai, he said.
Sustainability is a big part of the company’s work Sustainability is central to Transpo’s projects and its own office functions.
Transpo’s engineering designs are intended to provide safe and efficient operations, use low impact development practices, integrate with improved water treatment systems and utilize new energy efficient technology for illumination and traffic signals. Transpo incorporates smart-city practices and technology into its planning and engineering work, and its transportation practices improve economic vitality, help with social equity challenges, incorporate demand management practices and improve freight and mobility, all of which integrate into sustainability, he said.
“We plan and design transportation systems that are intended to improve the mobility needs of our communities that are least impactful to the environment today as well as anticipating the needs of future generations,” Haldors said. “This includes designing communities that provide multimodal options and can adapt to future changes in behavior and technology as the world evolves. Not just thinking about moving cars and vehicles but how to move people in the most efficient and sustainable way. Transportation will always exist and continues to evolve and Transpo is at the forefront of developing transportation policies, planning communities and designing infrastructure that can adapt and stand the test of time.”
Internally, Transpo Group provides transit passes to employees, encourages flex time and remote work, uses motion lights in its office, is mostly digital and reuses and recycles throughout its offices.
As Haldors noted, improving traffic flow reduces greenhouse gas emissions and Transpo’s planning practices are forward thinking and focused on making communities more sustainable. That includes designing walkable communities, which improves physical health and mental wellness.
“They helped us through that process and that was great,” he said. “They were on it. I talked to a lot of friends of mine and colleagues, in other industries as well, and I don’t know that anybody had as good an experience as we did, as far as what I heard, just how quickly they jumped on it.”
Transpo Group
Transpo Group sponsors sections of roads near Transpo's U.S. headquarters in Kirkland as part of the "Adopt-a-Road" program. Pausing from litter pick-up are, from left, Transpo employees Melissa Whalen, Kassi Leingang, Damani Nkeiruka, Dan McKinney, Patrick Lynch, Bruce Haldors, Tuan Nguyen and Jessica Hild.
Heritage was ‘on it’ When the pandemic first hit, offices shut down and fear and uncertainty reigned nationally, Heritage Bank responded quickly to help, Haldors said. That included one round of Paycheck Protection Program (PPP) funding for Transpo, which proved extremely helpful as projects and contracts were temporarily halted while the country grappled with the emerging health emergency.
Does Haldors have any insight for other businesses about the benefits of working with Heritage? “It’s that personal touch and the hands on, and really understanding our business, and asking questions, and being engaged,” he said. “Engagement is the biggest thing. I don’t have experience with a ton of other banks other than in the Middle East. It’s more of a personal relationship that I have with these folks at Heritage…and it’s built on years of trust and experience and conversation. It was intentional, it wasn’t just happenstance. They were very intentional about making sure they understood our needs and how our business operates and what the challenges are.” ABOUT TRANSPO'S RELATIONSHIP MANAGER BRITNI BABINGTON Britni has over 10 years of banking experience. Her main responsibility as a relationship manager is ensuring all aspects of her customers’ financial needs are taken care of, from deposits to loans to treasury management services. She works with all types of operating companies, including service firms, dental and veterinary practices, manufacturers, distributors and more. She also assists with commercial real estate, including owneroccupied buildings, multi-family and residential development. Outside of work, Britni serves on the board for the Risk Management Association, Puget Sound Chapter and likes to spend time with family, go golfing and cook.
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Issue 6 | 2022 Q3
Banking Business a publication of Heritage Bank
This is the third article in a series brought to you by Heritage Wealth Strategies. Read the previous articles in our Q1 and Q2 issues and look for the rest of the series in upcoming issues of Banking Business.
Vecteezy
Retirement Mistakes Small Business Owners Make (and strategies to address them)
STRATEGY #3
SEPARATE YOUR RETIREMENT SAVINGS Trying to build retirement savings, while you foster your business, can be challenging. With only so many dollars to go around and an endless list of professional expenses, you might rather reinvest in your company. However, even if you are ready to sell your business at retirement, you need to have savings that are completely separate from your business. The reality is that solely relying on the value of your business to carry you into retirement is a risky approach, which can easily backfire. Not only can industries change, and companies falter, but many baby boomers are selling their businesses right now, which could potentially make a sale tougher in some markets. Would you and your family be able to enjoy a comfortable retirement without your current income or profits from selling your business? If the answer is no, now is the time to start building your savings.
What To Do Now
• Balance your personal and professional finances. When deciding how to invest your available assets or what salary to draw, make sure you focus on addressing both sides of your financial life. • Explore available retirement-savings tools with your financial professional. With the passage of the SECURE Act, many rules regarding retirement plans have changed, making this a great time to evaluate your strategy. • Review your budget and create a disciplined savings approach. Identify ways you might be able to trim your current expenses or save on your tax liabilities. Also, establish a habit of regularly contributing to your personal retirement savings. Equal Housing Lender | Member FDIC
61%
In one survey, of respondents claimed that
preparing for retirement makes them feel stressed. Source: EBRI.com, 2020
This material is for information purposes only and not intended as an offer or solicitation with respect to the purchase or sale of any security. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss during periods of declining values. Neither the named representative, nor the named Broker-Dealer or Registered Investment Advisor, gives tax or legal advice. Past performance does not guarantee future results. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial professional for further information. These are the views of FMG Suite LLC, and not necessarily those of the named representative, Broker-Dealer, or Registered Investment Advisor, and should not be construed as investment advice. Heritage Wealth Strategies is a marketing name of Cetera Investment Services. Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/ SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency. 1000 SW Broadway, Suite 2170, Portland, OR 97205, (888) 360-0052. HeritageBankNW.com
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BLACK UNITED FUND OF OREGON: ADDRESSING EQUITY & BUILDING ECONOMIC POWER
For almost 40 years, BUF has been focused on positively impacting Black, Indigenous, People of Color (BIPOC) and underserved communities in Oregon by increasing access to social, economic and educational opportunities and working to reduce systemic inequities. BUF’s work increases postsecondary success for both youth of color and lowincome youth, increases equity in the distribution of philanthropic support to communities of color and builds unity and resiliency among organizations served and led by BIPOC and females statewide. BUF has two signature programs that offer long-term, culturally specific support that comprehensively addresses equity and builds economic power through a variety of evidence-based means: Mentor4Success and Community Justice & Equity. These two programs focus on assisting youth, low-income individuals, underserved communities and Black-owned businesses. So, to help ensure their continued success, Heritage has pledged $40,000 over the next two years. Mentor4Success supports youth achievement by offering one-on-one mentorship, postsecondary application assistance, workshops and early career building support. The program serves all of Oregon as well as southwest Washington and is inclusive to those choosing to not pursue college and instead looking at the trades or direct-to-career routes. Despite its location in historically Black NE Portland, participants in BUF’s programs tend to live in underserved areas of Portland and in Oregon communities where Blackled, Black-focused resources are few and far between. In fact, many students travel regionally to attend BUF events and may even attend from out of state for virtual activities. 8
Issue 6 | 2022 Q3
Mentor4Success is BUF’s largest and longest-serving program and, over the years, has evolved with the help of a diverse group of supporters, community members, youth leaders, volunteers and educators to integrate new program aspects, deepened outcomes and evaluation and increase the total number of students served each year. The Community Justice & Equity (CJE) program equips and empowers local entrepreneurs by providing culturally specific support and access to the tools needed to build and sustain a small business. While the program is open to all, efforts especially focus on Black-owned businesses who have been disproportionately impacted by historic inequity and COVID-19. BUF’s full-time CJE coordinator, who identifies as a Black business owner himself, provides the one-onone mentorship that many business owners of color struggle to access. He also provides resource navigation to help these businesses obtain additional specialized support through technical assistance providers such as connecting them to culturally specific bookkeepers, marketing and design firms, website developers, strategists and more. Black United Fund
In 1983, leaders in Portland, Oregon noticed that charitable organizations were providing minimal support to communities of color. To combat this inequality, those same leaders started the Black United Fund of Oregon (BUF) as a way to help fund low-income areas.
The two programs are linked by a focus on job-preparedness and living wage employment. Youth begin the Mentor4Success program at age 14 and can remain engaged through their early career. Because the program focused on the trades, apprenticeships and other direct-to-career routes as well as conventional college tracks, there are a variety of pathways available to youth, many of them leading to entrepreneurial ventures and small business ownership. These individuals, in turn, continue to then receive access to culturally specific support via the CJE program, resulting in an inclusive, long-term economic development strategy focused on the success of underserved communities. If you’d like to learn more about these two programs or other ways you can get involved, visit Black United Fund of Oregon’s website at bufor.org. Banking Business a publication of Heritage Bank
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Building Custom Reports in Heritage Direct
n previous issues we’ve discussed the benefits of Heritage Direct, our business online banking system, including the ability to deposit checks from your mobile phone, setting up banking alerts and enhanced user maintenance. A common theme is that the digital capabilities allow you to manage your accounts and be more productive, even while on the go.
While it’s important to have access to your funds 24/7, it’s equally important to be able to report what’s going on—either daily or for a specific period of time. Reports provide you with a snapshot of your business and are generally created for a particular purpose or audience. They can be used to analyze trends, compare account details, track transaction history and identify any issues that may need correcting in the future. They’re also useful when specific data needs to be shared with leadership, board members, stakeholders, accountants, lawyers, etc. Heritage Direct* not only allows you to build custom reports but also lets you choose which users have access to do so. The system will save reports for 90 days but they can also be exported and downloaded in different file formats (CSV, Quicken/QuickBooks or TSV) should they need to be accessible for a longer period of time. Here is a list of categories and the custom reporting options within each.
Information Reporting Reports
> Account statement – displays balances and transactions in an account statement format for the time period selected.
Payment Reports
> ACH company – displays a list of all ACH companies that are in the system.
> Exchange rates – displays exchange rates in both credit and debit currencies by company.
> Payment detail report – provides details on payments created in a report format.
> Template detail report – provides details on payment templates in a report format.
Balance and Transaction Reports
> Different date range options available as well as custom ranges (up to 94 days of transactions).
> Transaction filters are available to only display certain types of transactions.
> Account filters are available to only display certain account(s).
> Account groups can be set up in advance to only display certain accounts.
> Saved report option available to speed up creation of commonly used report criteria.
Learn more about custom reporting and other features of Heritage Direct at HeritageBankNW.com or contact us at 800.455.6126 for assistance. * Custom reporting is only available for businesses using Heritage Direct Corporate. Additional reports may be available depending on user permissions.
> Cash position report – displays opening balances, total debits and total credits for an account. The reports also calculates an account’s current balances based on current-day transactions.
> Current day availability – displays current day
transactions, opening book and available balances for each account.
Admin Reports
> User permissions – provides details for user permissions in report format.
ABOUT THE AUTHOR: BRIAN MOORE Brian Moore has worked in banking for over 30 years, primarily in the back office. He joined Heritage Bank in 2018 in the Digital Services Commercial Department and is currently the lead specialist. Brian is a life-long Washington state resident who enjoys home improvement projects and flower gardening with his wife.
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UNDERSTANDING YOUR KEY FINANCIAL DOCUMENTS Shutterstock
BUSINESS BANKING MENTOR
A
s a new business, most of your time might be spent on day-to-day operations like sales, inventory and customer service. But long-term growth and success is just as important. That’s why it’s important to have a basic understanding of your business’ financial documents. Two key financial documents that your business may have is a balance sheet and profit and loss statement. Many businesses only look at their financial documents once a year, often when provided by the accountant for a year-end review (if applicable), which could be months after the information was reported. But close inspection of these documents can give clues to the ongoing health of your business. So, what’s the difference?
The difference between a profit and loss statement and balance sheet is that a profit and loss statement winds back to zero at the end of each financial reporting year, recording sales and expenses for a fixed period of time. On the other hand, a balance sheet is a cumulative record that summarizes your assets and liabilities.
Understanding Your Profit and Loss Statement
Your profit and loss statement will show you how much money the business is making.
A profit and loss statement typically will follow this format: Sales (turnover), minus the cost of sales (your direct costs like raw materials), equals your gross profit, minus fixed or indirect costs (your overheads like rent and salaries), equals your operating profit (your profit before tax), minus payable tax, equals net profit.
Using Your Profit and Loss Statement
Your profit and loss statement gives you the ability to study your gross profit and net profit margins. These can reveal trends that enable you to make timely changes. GROSS PROFIT MARGIN Your gross profit margin is your gross profit as a percentage of turnover. For example, if your turnover is $2 million and your cost of sales is $600,000, you’ve made a gross profit of $1.4 million (a gross margin of 70%). Therefore, every $100 of sales generates $70 that goes towards paying for expenses and towards your net profit. If your gross margin percentage starts to fall, find out why and take action. Some reasons may include: • Rising inventory costs. • Offering discounts. 10
Issue 6 | 2022 Q3
Banking Business a publication of Heritage Bank
Shutterstock
WE'RE HERE TO HELP Contact one of our business banking experts for a review of your accounts. We can help you identify which products and services will help you see the big picture of your day-to-day banking and even save you time and money.
• Theft by customers or staff. • Selling an increased proportion of products that have lower margins. NET PROFIT MARGIN Your net profit margin compares your net profit (gross profit less fixed or indirect costs) to turnover. For a business with a turnover of $2 million and a net profit of $300,000, the net profit margin would be 15% ($300,000 divided by $2,000,000). If your net profit margin falls, it could mean you’re paying proportionately more in expenses than you should be. If your turnover increases from $2 million to $3 million but your net profit only goes up from $300,000 to $350,000, this can look good until you see your net profit percentage: $350,000 divided by $3,000,000 equals 11.6%. That means your net profit margin has actually dropped from 15% to 11.6%. Your profit has increased by $50,000 but you’re not making as much profit as a ratio from that increased turnover. This could be fine, and you may have reasons this occurred. The key is to be aware of it. In this scenario, identify which costs have increased out of proportion to the rise in sales so you can identify the slippage.
Understanding Your Balance Sheet
Your balance sheet shows how sound and financially viable your business is, providing a snapshot of your business’ financial strength at the end of a specified period. In general, it summarizes the assets and liabilities belonging to a
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business. The difference between your assets and liabilities can generally tell you what your business is worth. Examples of the assets side of the balance sheet are: • Fixed assets such as machinery. These are generally longer-term assets and include intangible assets like goodwill and intellectual property rights. If a piece of equipment was purchased ten years ago and still is still used, it’ll be reflected on the balance sheet. • Current assets are short-term assets and includes stock, debtors (customers who owe you money) and cash. Liabilities are similarly divided into short- and long-term items: • Current liabilities are amounts you owe that are due for payment within one year. • Long-term liabilities fall due after more than one year, like long-term bank loans and leases. • Shareholder funds include shared capital (amounts paid into the company for shares) and reserves (including retained profit).
Using Your Balance Sheet
Your balance sheet gives you a quick summary of your business performance and contains information and figures that can be used to measure the health and profitability of your business. These are called key performance indicators (KPIs). Always consult your accountant or business adviser to help you understand how to get the information you need from your balance sheet and profit and loss statement.
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PNWONDERLAND
EVOLUTION OF BUSINESS IN THE PACIFIC NORTHWEST It’s no surprise that the Pacific Northwest is home
to some of the largest and well-known businesses in the country. Amazon, Starbucks, Costco, Microsoft, Nordstrom and Boeing to name a few. Some have even become highly regarded around the world. Their commonality? They all leveraged the Northwest’s pioneer spirit and reputation for amazing ideas—becoming legends in the business world and true American success stories.
It wasn’t until the 1880s that the Northern Pacific Railroad was completed. Running from St. Paul, Minnesota (through Portland, Oregon) to Tacoma, Washington, the region finally had a link to the rest of the world. This was a key turning point for them. Railroads connected different corners of the country and revolutionized the American economy by making the shipment of goods quicker and more accessible. It also brought in more people, which influenced the social, political, cultural and economic characteristics of the PNW.
A Growing Region
As the population grew, so did the focus on extractive industries. Logging, mining, fishing—and the eventual mechanization of them—were the dominant activities in the region and brought immense change to the Northwest. During World War I, the region saw a surge in war-related manufacturing, with timber payrolls accounting for 55% of all salaries in the Northwest.2 Logging and milling remained the leading industries until another surge in war-related manufacturing occurred during World War II. Thousands of workers moved to Washington to build bombers, tanks and other weapons,1 the most notable being the Boeing B-17 Flying Fortress.
The Northwest’s economy was becoming more diverse, one that was centered on emerging technology sectors thanks to the aerospace industry and its higher percentage of engineers. These visionaries weren’t afraid to explore new ideas, think outside the box and create new businesses. 12
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Top: Inside Boeing's Everett manufacturing plant. (Photo: Jetstar Airways, courtesy Creative Commons) Above: Fallers undercutting fire-killed tree with power saw. Stimson Lumber Co., Tillamook Burn, OR. (Photo: Robert L. Furniss. May 18, 1943 Courtesy US Forest Service)
A New Age
Founders like William E. Boeing and John W. Nordstrom both saw an opportunity in the Northwest. It was the industrialization, the resources and the potential that gave them the infrastructure to be creative. They—and others of their time— became powerful and influential drivers of economic growth and we are still feeling the effects of their decisions today.
As a result, exciting new opportunities, entrepreneurs and startups are popping up every day. Commercial space, electric propulsion, medical devices, artificial intelligence, virtual reality and robotics are creating new jobs and new sectors, all built with the same resilience, perseverance and pioneer spirit that has gained the Pacific Northwest its international reputation for innovation and invention.1 Banking Business a publication of Heritage Bank
1 choosewashingtonstate.com/research-resources/about-washington/brief-state-history/ 2 www.washington.edu/uwired/outreach/cspn/Website/Classroom%20Materials/Pacific%20Northwest%20History/Lessons/Lesson%2014/14.html
The Beginning
The PNW was involved in some global trading in the 17th century but was mostly isolated from the rest of the United States. Settlers were at the mercy of waiting months for shipments to arrive from the eastern seaboard, which meant learning how to live off the land and relying on one another to survive. This type of daily life—uncertainty and inconvenience— was not for everyone. “It took grit and perseverance to turn adversity into opportunity and opportunity into progress.”1
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Your Timeline for Keeping Important Documents Knowing which financial and personal paperwork to keep or toss is very important. Here’s a suggested timeline for keeping or shredding documents.
Documents that should be kept indefinitely in a secure location:
Suggested timeline for retaining other important documents: • Supporting documents for tax return: Seven years—this is the recommended minimum period to retain. Remember, tax return copies should remain on file forever. • Investment records and statements: Seven years— these are needed for tax filings and should be kept for at least three years. You may want to keep them for the same amount of time as the supporting documents for tax returns. • Credit card statements: 45 days to seven years— keep up to seven years if the statement may be used for taxes, as proof of purchase or for insurance. • Bank statements: One to over three years—keep statements for three years or longer if you apply for Medicaid or if they pertain to taxes, business expenses, home improvement, mortgage payments or a major purchase.
• Pension plan documents
• Medical and dental records: One to five years—keep for at least one year and up to five years to be safe. Retain information about prescriptions, specific medical histories, health insurance information and contact information for your physician.
• Copies of wills, trusts, healthcare proxies/living wills and powers of attorney; your attorney and executor should also have copies
• Utility and phone bills: One month to one year— shred bills after you’ve paid them unless they contain tax-deductible expenses. If you can use them for business deductions, keep them for a year.
• Military discharge papers
• Insurance policies: Until closed—keep as long as the policies remain in force.
• Birth/death certificates and Social Security cards • Marriage licenses and divorce decrees
• Copies of burial deeds and plots • Safe deposit box inventory • Copies of all tax returns This material is for information purposes only and not intended as an offer or solicitation with respect to the purchase or sale of any security. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss during periods of declining values. Neither the named representative, nor the named Broker-Dealer or Registered Investment Advisor, gives tax or legal advice. Past performance does not guarantee future results. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial professional for further information. These are the views of FMG Suite LLC, and not necessarily those of the named representative, Broker-Dealer, or Registered Investment Advisor, and should not be construed as investment advice. Heritage Wealth Strategies is a marketing name of Cetera Investment Services. Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency. 1000 SW Broadway, Suite 2170, Portland, OR 97205, (888) 360-0052.
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• Mortgages and other home documents: Ownership plus six years—mortgages, deeds and home improvement documents should be kept on file for the length of ownership plus six years after selling the home. • Appliance manuals and warranties: If owned—keep on file for the length of ownership. • Vehicle titles and loan documents: If owned—keep on file for the length of ownership. • Pay stubs: Until end of year—there’s no requirement for keeping pay stubs. Keep up to three months of pay stubs if you’re applying for a loan. The benefit of keeping a year’s worth of pay stubs is that you can compare them against your W-2. Remember, any information you discard should be shredded if it has your personal information on it.
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Kim Nguyen, Photos by Kim
From left: Alec Zarelli, Darriel Menefee, Brett Willis, Heath McLellan, Carol Smith, Chuck Folsom, Jace Dwinell, Erik Freeberg. Not pictured: Gary Gahan, Carmen Goers.
HERITAGE’S DOWNTOWN TACOMA COMMERCIAL LENDING TEAM BRINGS DEEP EXPERIENCE TO MULTIPLE INDUSTRIES
Article by John Stearns
Chuck Folsom would like prospective commercial borrowers to know that Heritage Bank is ready to go beyond the transactional details of interest rate and loan terms. “If they are looking for a bank to establish a relationship with, where they can say they know their banker and want to feel like they have somebody who’s trying to add value,” the bank is ready to help, said Folsom, senior vice president and commercial banking regional manager. Folsom oversees commercial bankers in Heritage’s central region and works out of the bank’s downtown Tacoma office at 909 A Street, where the group relocated last fall from an older building nearby on Pacific Avenue.
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Folsom has worked in banking since 1985, the last 11 years with Heritage, and he has a team of similarly experienced colleagues eager to assist borrowers. His crew includes teams in Puyallup and Kent-Auburn. They include Heath McLellan, senior vice president team leader; Jace Dwinell, vice president commercial banking officer; Gary Gahan, senior vice president commercial banking officer; Carmen Goers, vice president commercial banking officer; Erik Freeberg, assistant vice president commercial banking officer; Darriel Menefee, vice president commercial banking officer; Carol Smith, senior vice president commercial banking officer; Brett Willis, senior vice president commercial banking officer; and Alec Zarelli, vice president commercial banking officer.
Banking Business a publication of Heritage Bank
“The experience and depth of knowledge that our team has, I don’t know if I’ve ever been fortunate to work with a team that has this much experience, connections, knowledge,” said Folsom, who grew up in Steilacoom, Washington, and has lived in and worked mostly in south King and Pierce Counties, the latter his home the last 16 years. In addition to their lending roles, the bankers are active in their communities. Folsom is a longtime member of the Green River College Foundation board of directors. Other bankers’ roles include serving on the Pierce College board of trustees, helping with Pull For A Soldier (an event of the Permission to Start Dreaming Foundation to help veterans, first responders and their family members), assisting the First Tee organization that teaches children life skills through golf and serving at rotary clubs. The bank also has a strong relationship with local nonprofit housing providers. The commercial bankers have forged relationships and expertise with borrowers in myriad industries. “We work on the whole gamut of commercial, industrial, small business loans, medium business loans, owner-occupied real estate,” Folsom said. With owner-occupied real estate, for example, business owners often want to own the real estate occupied by their business, for which Heritage can arrange lending. The bank actively lends in business sectors that include medical/dental, multifamily, aerospace manufacturing, restaurants and social services. Loan uses include acquiring property, buildings, businesses, equipment and more. Heritage also offers lines of credit, or guidance lines, for uses like vehicle purchases or supporting inventory and accounts receivable.
BUSINESS IN TACOMA BY THE NUMBERS Major industries: military, healthcare, finance and insurance, aerospace, trade and logistics, government and education Major employers: Joint Base Lewis-McChord, Multicare Health System, State of Washington, CHI Franciscan Health, Tacoma Public Schools, City of Tacoma, Tacoma Public Utilities 8 Fortune 500 companies based in Seattle-Tacoma metro area #2 state for growth #2 best state economy #12 best places for businesses and careers Statistics courtesy of choosetacomapierce.org/locating-yourbusiness/major-employers/
ABOUT OUR COMMERCIAL TEAM Combined banker experience: 231 years Areas of expertise: commercial real estate, investor real estate, commercial and industrial lending, equipment financing, SBA lending Volunteer hours served in 2021: 283 Charitable giving in 2021: $52,875 Top nonprofits: Pierce College Foundation, Amara, Permission to Start Dreaming Foundation, Charles Wright Academy, Emergency Food Network, Rotary Clubs
The Tacoma office’s lending mix reflects the broader bank’s commercial lending as a whole. In the first quarter of 2022, Heritage’s systemwide loan portfolio by dollar value comprised: 39.4% non-owneroccupied commercial real estate, 24.5% owner-occupied commercial real estate, 17.1% commercial and industrial and 5.8% construction and land development. The balance included residential real estate, consumer and PPP loans. Heritage’s systemwide commercial business loans by industry exposure comprised: 50.6% real estate rental and leasing, 16.6% all other industries, 10% health care and social assistance, 6.2% accommodation and food service, 5.1% retail trade, 5% construction, 3.3% other services (except public administration) and 3.2% manufacturing. continued, next page
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At the end of 2021, Heritage had $3.19 billion, or 83.7% of its loans receivable, in commercial business loans bank wide. Heritage offers different types of commercial business loans, including lines of credit, term equipment financing and term owner-occupied and non-owner occupied commercial real estate loans. It also originates loans that are guaranteed by the U.S. Small Business Administration, for which the bank is a preferred lender, the U.S. Department of Agriculture and the Federal Agricultural Mortgage Corp., according to its 2021 annual report.
ABOUT OUR DOWNTOWN TACOMA BRANCH Yvonne DeGuzman, Branch Relationship Officer Yvonne’s focus is on building relationships with current and new customers. After 20 years in banking, her passion is to help individuals and businesses succeed financially with the partnership of team members from other lines of business. Yvonne is also active in her community by volunteering at the Emergency Food Network. Outside of work, she enjoys cooking, bowling, hiking and watching football with her family.
The bank will provide loans in the eight-figure range. Folsom said commercial bankers tend to develop expertise in different industry niches over their careers. He noted one of the office’s bankers has a strong network in multifamily financing. Another is strong in lending for dental and medical practice acquisitions. Bankers in his office have projects that include lending for a new medical office in Puyallup, tenant improvements for a pizza chain in Yelm, another for a Mexican restaurant expansion in Bellevue and purchasing a retail space in Gig Harbor.
909 A Street, Suite 710 Tacoma, WA 98402 253.572.5772
Kim Nguyen, Photos by Kim
Bankers also help their customers do deals outside the immediate area, Folsom said. One banker is helping a client on a warehouse development loan in Arlington and another client on a multifamily project in Chelan. Another lender is putting a project together in Wenatchee.
“A lot of times what happens is the business owner becomes successful, and that’s what we want, that makes it a win-win for us, too, and they end up branching off usually into real estate development or commercial real estate purchases—and that’s where you kind of start to develop the full (banking) relationship,” Folsom said. That relationship also includes talking with clients about their business. Folsom, for example, has spent enough time with clients in manufacturing, specifically aerospace, that he can talk with customers about what’s occurring in the sector, as other bankers can do in their areas of expertise. One thing Folsom would like to impart to prospective borrowers, “If they’re looking to establish a relationship and feel like they have a banker they can talk to and help them meet their goals of their business or of their lives… Heritage would be a good place for them.”
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Issue 6 | 2022 Q3
Banking Business a publication of Heritage Bank
Lessons from Covid-19: Looking Ahead It may be tricky thinking about the future right now, but in time the economy will improve. So it’s worthwhile to consider what steps you could put in place to prevent or reduce the impact of a repeat situation.
close the doors. Decide on how much working capital you need and then outline where this may come from when you really need it (business savings, access to loans or your own capital).
It’s not just for COVID-19 either, as there’s always the possibility of a “black swan” event (recession, natural disasters like floods or earthquakes, loss of a key customer or supplier, etc.).
Seek wider insight
Check that you have the right team.
Once employees are left to self-manage, you’ll see who you relied on the most, which skills were missing and what you didn’t need. You may have also found certain staff (if they’re not needed for direct customer contact) work better from home, potentially reducing office costs.
It’s often in times like these that you’ll find you can’t do it all on your own. Identify who you can call on to gain advice about growth and future strategies. Some sources include: •
Obtaining advice from your trusted advisors: your lawyer, accountant, banker, mentor, etc.
•
Getting market research feedback from your customers, your suppliers and other stakeholders. Speaking to other small business owners. Making sure you are regularly getting current information on your industry, research and development breakthroughs and particularly on what your competitors are doing.
• •
Remove bottlenecks.
When you consider what you needed to make your business work in times of stress, identify any bottlenecks or issues, such as one key customer for most of your revenue or one major supplier for the majority of your raw materials or supplies. Other actions you can take include:
Update a one-page strengths, weaknesses, opportunities and threats (SWOT) plan every quarter.
Most businesses either don’t write a business plan or create it once and then never touch it again. To keep ahead, have a plan that you review on a regular basis and just asks the most critical questions which are:
•
Reducing the length of your supply network or at least have alternatives that don’t require materials to come from outside the country or state.
•
Identifying any critical supplies, raw materials or ingredients and have an extra month of inventory (without unnecessary stockpiling) to keep you going if supply suddenly ceased.
•
Strengths: what you’re (still) good at and what you’re doing to protect this from competitors.
•
Documenting any lessons learned that will help you run a better business and then implement them.
Weaknesses: what (still) isn’t working that well and ways to eliminate them.
•
Opportunities: what new products, services, customers, markets, technology or trends could change the way your business works.
•
Threats: the events outside your control that you need to minimize.
•
Focus on cash flow
If the current crisis has taught us anything, it’s having cash reserves to outlast a dramatic fall in sales without having to
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A Simple Way To Manage Patient Payments
Vecteezy
Heritage Bank partners with Elavon to provide payment processing solutions for all types of businesses. A new tool for our customers who are medical providers is Payment Navigator* Medical Office, a flexible, secure web-based solution that enables your practice to manage all patient payments from a single system. Data from Elavon's 2021 Healthcare Payment Insights Report reveals that the pandemic changed how patients interact with their health care providers and confirms that the demand for digital payment options continues to grow. By improving payment coordination and giving your patients the options they want, you can reduce bad debt, boost productivity and provide a positive patient experience. Payment Navigator Medical Office allows your staff to: • Securely process co-pays, deductibles, co-insurance and self-pay balances. • Standardize processing for all payment types: cash, check, payment cards and FSA/HSA. • Accept payments via any compatible Apple® tablet or mobile device. • Consolidate patient information and payment data to ease administration. • Available reporting allows payment posting to your accounting system for reconciliation. Contact your relationship manager today to learn more about merchant services or to get started.
DEBIT AND CREDIT CARD PROCESSING We can securely process: • • • • • • •
Smart/chip cards Digital wallets like Apple Pay™ and Google Pay™ Contactless payment cards PIN debit Electronic Benefit Transfer (EBT) Corporate and purchasing cards Fleet cards
SECURE PAYMENT SOLUTIONS Elavon’s smart/chip card/EMV terminals are equipped with the latest technology to keep your business safe from fraudulent credit card activity. MERCHANT ACCOUNT CHECKUP Already accepting credit or debit cards? We can review your current merchant account to see if there are opportunities to add value and save you money.
*Payment Navigator is powered by InstaMed.
48%
59% of patients would choose
of patients want contactless debit/credit payment options
recurring bill payments
75% of consumers would consider a
lump-sum bill discount
Data graphics courtesy of Elavon. Read more at www.elavon.com/str-campaigns/elv-insights. *Data based on a February 2021 survey of U.S. consumers. Details and methodology available in full report.
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Banking Business a publication of Heritage Bank
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FINANCIAL DICTIONARY Interest Rate Swap
BEFORE YOU DONATE
You want your donations to count, so it’s important to do some research before giving to a charity. Here are some things you can do to learn more about a charity and avoid donating to a scam. > Search online for the cause you care about—like “hurricane relief” or “homeless kids”—plus phrases like “best charity” or “highly rated charity.” Once you find a specific charity you’re considering giving to, search its name plus “complaint,” “review,” “rating,” “fraud” or “scam.” If you find bad reviews, it might be best to find another organization. > Check out the charity’s website. Does it give you details about the programs you want to support or how it uses donations? How much of your donation will go directly to support the programs you care about? If you can’t find detailed information about a charity’s mission and programs, be suspicious. > Use one of these organizations that can help you research charities: • BBB Wise Giving Alliance (Give.org) • Charity Navigator (CharityNavigator.org) • CharityWatch (CharityWatch.org) • Candid (Candid.org) > Find out if the fundraiser and the charity are registered. Some states require that charities register with the state regulator. Check to see if a fundraiser or charity is registered with your state’s charity regulator. > Check if the donation will be tax deductible. If this is important to you, confirm that the organization you’re donating to is registered with the IRS as a tax-exempt organization. Look up the organization in the IRS’s Tax Exempt Organization Search. > Don’t donate with a wire transfer or gift card. Anyone asking you to donate this way is typically a scammer. If you think you have been the victim of a charity scam, contact the FTC at ReportFraud.ftc.gov to report the scam and take to protect yourself.
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An interest rate swap is a tool borrowers can use to manage their interest rate risk over time. An interest rate swap is a contract, separate from the loan agreement, between a borrower and bank where one set of cash flows is exchanged for another based on a specified principal amount. Swaps are often used if a business can borrow money at one type of interest rate (for example, a variable rate) but prefers another. Interest rate swaps can convert floating rate debt to a fixed rate, convert fixed rate debt to floating or lock in a fixed-rate prior to funding. The swap reduces (or increases) exposure to fluctuations in interest rates depending on the cash flow characteristics desired by the parties. Generally, because of the reduced overall risk, the borrower can obtain a marginally lower interest rate than would have been possible without the swap. Monthly or quarterly interest payments under the contract make up the difference between the actual interest rate on the loan and the targeted rate. An interest rate cap or collar establishes upper and/or lower limits on interest rate levels. To learn more, speak with our capital markets group manager, Dave Purcell, at 206.204.4064 or contact your relationship manager. Dave Purcell started the Capital Markets Group at Heritage Bank seven years ago. He has been in banking for almost 30 years, mostly working with banks and customers to manage financing risks. The Capital Markets Group helps relationship managers and Heritage Bank customers manage their interest rate risk related to loans over time through the bank’s swap program.
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MY HERITAGE
Bringing Creativity to Life and Banking Bankers aren’t all about numbers. I like complementing my quantitative daily life with some creativity—and it’s been that way since I was a little girl. It might have started when I was 11, when I crocheted my first granny-square quilt. It was an awful mix of green, brown, orange and gold acrylic yarn. My mom loved it and kept it on the sofa for years. I now prefer natural fibers like wool and silk and a more subtle color palette. I love doing art quilts, which is really fabric art and a lot of times they end up as wall-hangings, not really quilts that go on a bed or other furniture. I’m also an avid crafter with a firm belief that glitter makes everything better. Mostly I knit, crochet and quilt, but I also love to make paper and table art for the fundraising auctions of nonprofits I support. Sometimes my creations are wearable. Case in point, I created tutus for me and a fellow banker, Sharon Wynde, for Tutu Tuesday (February 22, 2022). We wore our tutus to an event on the Portland waterfront to celebrate.
I even wrote and illustrated a book (just one copy of one book) for my great-nephew, Ronan, when he was three. He loves animals, especially funny-looking ones like salamanders. In the book, Ronan makes a birthday wish that he would become a newt and then he goes on a wild adventure. Eventually, he decides he wants to be a boy again and return to his family. I bound the book with help from a YouTube video. While I loved my short stint as an “author,” I’m better at reading, which is one of my passions. Mysteries are my thing and I typically figure out “who did it” halfway through the book. I knew I had made it in the literary arena when a clerk at the famous Powell’s Books in Portland complimented me on my eclectic reading choices. I love puzzles, too: thousand-piecers. Figuring out where pieces go and solving complex patterns isn’t unlike solving a mystery in a book. In my earlier years, I was an avid mountain climber and scaled such peaks as Mount Adams, Mount Hood, Mount St. Helens (post eruption); the Middle and South Sisters in central Oregon; and peaks on the Olympic Peninsula. I belonged to the Mazamas mountain climbing group in those days. Before that, I used my creativity to gain entrance to a fancy downtown Chicago health club by becoming an aerobics instructor because I could not afford the membership right out of college. When going out to bars with friends after work, guys were always more impressed that I was an aerobics instructor than a commercial lender. Speaking of college, I had a great gig my senior year at Carleton in Minnesota where I grew up. I was among five students chosen to live in the college’s guest house where well-known visitors and guest speakers stayed. We got free lodging in return for making the guests feel welcome, arranging cocktail receptions and other social events. I think it made the transition into business easy for me because I learned to have conversations with interesting and impressive people—mathematicians, politicians, rich guys—and to make them feel welcomed and valued for their contributions to the school. It just really helped me to become a good banker.
Kathy Swift
While I learned the nuts and bolt of finance at Northwestern University, where I got a master’s degree in managementfinance and accounting, my experience at Carleton laid the foundation for knowing how to talk with people, ask good questions, listen and understand.
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Today, listening to and learning from people helps me be a better advocate for their credit and organization as I look to provide financing. While I work in nonprofit lending now, it Banking Business a publication of Heritage Bank
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taps all the skills I’ve developed over the years. Nonprofit lending is one of the more difficult, in part because of unpredictable income streams due to government budgets and/ or fluctuating private donations. But it’s also one of the most rewarding because of the good that nonprofits do for our communities. I settled in nonprofit lending because I’m driven to serve others and the work is intellectually stimulating. I feel I’m making a difference in my community and it’s using every bit of my skill set. My comfort with complexity, from challenging puzzles to entangled mysteries, plus my creative leanings help me with nonprofit banking and affordable housing finance. The issues of homelessness and housing affordability are huge for our communities, and a person could get discouraged at the size of the problem. I think my enthusiasm and ability to find solutions help my customers be successful, which makes our community a better place to live. Likewise, being a banker at Heritage allows me to give generously to the nonprofits doing the good work of education, social support and housing security. This work continues a lifelong passion for helping others. I now contribute to more than 20 local nonprofits and volunteer hundreds of hours annually. The bank wholeheartedly supports its employees’ volunteer work and giving. I love coming to work every day because it’s always something different, it’s always complicated and there’s risk, but I figure out how to mitigate it for the bank so that we have good loans on our books. Also, the bank has a strong community investment presence. We really believe that a strong community and the social safety net within it are important to the community’s health. ABOUT THE AUTHOR Kathy Swift, senior vice president nonprofit development officer in Heritage Bank’s Portland office, has more than 30 years of banking experience as well as expertise managing a portfolio of for-profit and nonprofit companies, including real estate loans, lines of credit, tax-advantaged bonds and affordable housing credits.
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Get back to business with a fast and convenient loan process. When you choose a community bank, you may not realize what sets them apart from a larger national bank. They focus on their neighborhoods by keeping loans and deposits local, which helps businesses and communities thrive; their bankers focus on relationship building so they can get to know you, your business and your goals; and they are the small business lender of choice, with 80% of community bank customers being satisfied with their overall experience compared to 68% for large banks and 43% for online lenders.1 Heritage Business Express was created with local businesses in mind. It offers a fast and convenient loan process that requires minimal paperwork. The flexible loan products can help business owners purchase new facilities, equipment or help your company with seasonal cash flow. In many cases, these loan products will be structured differently than a conventional commercial loan. Our dedicated team has a streamlined process to review loan applications, allowing for quicker decision making and access to the funds you need to continue running your business. Visit HeritageBankNW.com for a comparison of our business lending options and to connect with a commercial lender near you. LOAN DETAILS: • Competitive variable and fixed rates with a variety of terms available • Owner-occupied commercial real estate loans available with fixed interest rates for 10 years with 25-year amortizations • Equipment term loans available with fixed interest rates and full amortization up to seven years • Limited financial information required REFERENCES
1
icba.org/about/community-banking
“Heritage Business Express has allowed us to help our customers with immediate needs such as equipment purchases. And we can complete the process right in the branch, making it an approachable way for our business customers to be approved for smaller loans quickly.” — Jenni Stovall, Financial Service Associate
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ONLINE AND MOBILE BANKING DESIGNED FOR YOUR BUSINESS
Do all your banking nearly anywhere your business takes you with Heritage Direct. In today’s connected world, you need business banking services that can keep pace with the way you do business. Heritage Direct gives you real-time account management for greater control and access to your funds—anytime, anywhere. Thanks to advanced internet security technology, your company’s information will remain protected. Banking on the go has never been easier or more secure.
– See what’s important to you with customizable dashboards – Enjoy a consistent digital experience across all of your devices – Export 365 days of balance and transaction reporting history – Simplify bookkeeping with Direct Connect to QuickBooks and Quicken
Download the mobile app today!* Search “HB Direct” in your app store.
*Message and data rates from your wireless carrier may apply.
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HeritageBankNW.com | 800.455.6126 |
