Banking Business Q3 2023

Shaun Carson Editor-In-Chief

Whitney Gibson

Creative Director

Erica Bolvin

Managing Editor

Stephanie Neurer Contributors

Phil Bridge

Lauren Kramer

Matt Ray

John Stearns

Kathy Swift 3615 Pacific Avenue Tacoma, WA 98418

© 2023 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.

Housing Lender | Member FDIC

“We really care about these businesses that we bank. It really makes the job a lot more fun.”

- Beth Meidinger, SVP, Commercial Banking Team Leader, Seattle

Cover image: Olli Tumelius

Skydive Kapowsin Shutterstock Vancouver Farmers Market

In this issue, we’re excited to introduce two new sections: the Nonprofit Corner and Industry Profile. Both focus on niche markets and provide an in-depth analysis of trends, challenges and innovations plus industry-specific tips and tricks.

Growing your business can be an exciting yet challenging decision. While every business is unique, there are some key indicators that can help you determine if your business is ready for expansion. Consistent profitability, market opportunities, adequate resources and positive customer feedback to name a few. One of our feature articles, Budgeting for Expansion” on page 7, provides a more in-depth look at when it might be time to take that next step.

For those who like to live life on the edge, be sure to check out our customer profile on page 2. The owner of Skydive Kapowsin, Jeff Farrington, talks about his 44-year-old skydiving company in Shelton, Washington, and his family’s passion for the sport—who collectively has well-over 50,000 jumps! Plus, on page 22, commercial banking officer Marlene Johanson shares her own experience skydiving and how it helped conquer her fear of heights.

There are also several articles around current fraud trends, new banking technology and investment planning. And to keep things fun, on page 12 we list some local farmers markets to visit this summer!

Remember, if you have feedback or ideas on what you’d like to read about in the future, email us at BankingBusiness@HeritageBankNW.com, and visit our website to subscribe so you never miss an issue!

Thank you for reading Banking Business and for trusting us as your banking partner.

Jeff Deuel CEO

Heritage Bank

Jeff Deuel is chief executive officer at Heritage Bank. He has more than 40 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.

STORY BY JOHN STEARNS

Geoffrey “Jeff” Farrington’s skydiving skills have earned him movie roles for stunts—appearing in “Operation Dumbo Drop,”

“Air Force One,” and “Tears of the Sun”—and experiences around the world, but one of his biggest thrills is seeing the excitement of customers when they complete their first jump with his team at Skydive Kapowsin.

“When tandems took off, it just allowed us to bring skydiving to the masses,” Farrington said of tandem jumping that attaches a professional skydiver to firsttime jumpers. “It’s just exciting, on a day-to-day basis, having somebody come in after making their jump and they’re so excited and having fun.”

Fun is the name of the game. Safety, of course, comes first and is the foundation on which thrills occur.

Farrington, who turns 76 in August, his wife, Jessie, and their two grown children, Andy Farrington and Keri Bell, are co-owners of Skydive Kapowsin, which is located in Shelton, Washington, about 25 miles north-northwest of Olympia. They’re all pilots and parachutists.

It was Jessie who got Jeff hooked on skydiving, a skill Jessie learned from her father, a World War II fighter pilot who flew for and jumped with a skydiving club in the mid-1960s at Thun Field, now known as Pierce County Airport-Thun Field, about 17 miles south of downtown Tacoma. When Jessie and Jeff met at White Pass Ski Area in 1971 and Jessie’s conversation turned to skydiving, Jeff expressed interest in trying it. Jessie was his instructor and he made his first plunge in 1971. He was hooked.

Later married, the couple saw a business opportunity as skydiving began to gain popularity. They bought 200 acres in Kapowsin, a few miles south of Thun Field and developed a residential airpark, Kapowsin Field, which gave them a place to do business and fuel their love of the sport. They founded Kapowsin Air Sports in 1979. As business took off and the couple needed more space, they sold that property and moved the business to Shelton in 2006. Skydive Kapowsin leases property from the Port of Shelton and has two hangars on the site to

Skydive Kapowsin

accommodate the business and five airplanes.

Its fleet includes a Cessna 182 that carries four passengers, a Pilatus PC-6 Porter that carries about eight passengers, two Cessna Grand Caravans that carry 15 to 17 people and a De Havilland Canada Super Twin Otter that can carry 22 people. Asked if he owns all the planes, Farrington joked, “me and Heritage Bank.”

While Skydive Kapowsin attracts customers from all over the world, most of them originate from an area roughly stretching from Bellingham, Washington, to Portland, Oregon, he said.

Its programs include tandems for beginners; a seven-level program to learn to skydive, with the first jump including two instructors holding the customer’s parachute harness during freefall and ensuring proper parachute deployment before allowing the customer to make a solo descent guided from the ground by an instructor using a radio; and flight packages for experienced jumpers. Jumps occur from elevations of roughly 8,000 to 18,000 feet, depending on experience, weather and other factors.

The company also offers video and photo packages to capture the special moments.

A banking relationship takes flight

Farrington and Donna Moir, a commercial banking officer for Heritage Bank, sit together on the Economic Development Council of Mason County. Moir, over time, sought banking business from Farrington and when Heritage offered what he called a “very attractive” fixedrate loan to buy a plane, Farrington became a customer about three years ago. The bank’s role helping buy the airplane was turbulence free.

“I bought an airplane from Cessna directly and got a good deal on it because I had the funding in place and ready to go,”

Farrington said of going to Cessna’s factory in Wichita, Kansas.

Skydive Kapowsin also has a business account at the bank. Farrington likes the personal attention he gets from his local Heritage branch in Shelton.

“I like being able to walk into the branch without an appointment and the manager will fit me in,” he said.

The business did tap Heritage early in the pandemic for Paycheck Protection Program funding when no one knew where the economy was headed.

“We closed for three months right at the start,” Farrington said.

When summer came, the business limited the number of people in its planes, did social distancing and enjoyed a brisk business as people flocked to outdoor activities as a safe recreation option.

The hangar door in the summer is also open most of the time, and with a door opening measuring 70 feet wide by 20 feet high, it’s like being outside, he said.

“People just wanted something to do, so they came out and skydived,” he said.

Asked what insight he might have for other businesses considering Heritage Bank, Farrington said he recommends people to Heritage all the time. Referring to someone he knows working on a local business project, Farrington emphasized the proximity and friendliness of the local branch.

A family passion shared with others

Skydive Kapowsin is a family affair, and skydiving has led Farrington, Jessie and Andy to movie jobs. Farrington was actor Danny Glover’s stunt double in “Operation Dumbo Drop” because Farrington could jump with a round parachute and was a master parachute rigger. (Parachutes are rectangular today, “but we call then square,” Farrington said, noting they improve maneuverability and lead to softer landings.) In the movie, he was part of a scene throwing a make-believe, parachute-equipped Dumbo out of an airplane over Thailand.

In “Air Force One” and “Tears of the Sun,” Farrington served in stunts representing military jumpers. One stunt, for “Air Force One,” involved jumping at night onto a sloped roof of a Cleveland church.

ABOUT DONNA MOIR (pictured at left with Jeff Farrington)

Donna has been with Heritage Bank since 2007 and has been in banking for 40 years. Before becoming a commercial banking officer, she was a loan officer at Farm Credit Services. Now she focuses on assisting small businesses as well as businesses in the agriculture and aquaculture industries with SBA, USDA and FSA guaranteed loans.

Olli Tumelius

“We were excited to say that this is a one-and-done stunt,” he recalled of the challenging landing.

He hasn’t had any close calls in his roughly 10,000 jumps, other than a broken ankle when he was still using round parachutes. Things are so much easier now with the new rectangular chutes.

“Jumping out of an airplane is inherently dangerous, of course, but we’ve made it such that, to tell you the truth, it really isn’t; it’s a controlled risk,” he said. It may seem counterintuitive, but you don’t get that rollercoaster, sinking-stomach feeling in a jump, he said.

“(During) free fall, you average about 120 mph, but it doesn’t really feel like you’re falling,” Farrington said. “It feels like you’re floating on air. If you forget your goggles, then you notice it…and when you get a little older like me, your skin flaps a little bit,” he added with a laugh. He acknowledges that people jumping for the first time are nervous. But when they see customers in the hangar laughing, giggling and excited after jumping, they calm down pretty quickly, he said.

“Our instructors do a good job of walking them through what they’re going to do and how they’re going to do it, and people ask them, ‘How many jumps do you have?’ I would say our instructors average 3,000 jumps—and they’re excited, too.”

Most instructors, parachute riggers and pilots are part-time contractors with Skydive Kapowsin. Their numbers swell to about 30 to 40 during the busy summer season, with about 10 during offseason. Many travel to other skydive businesses in the Sun Belt in winter. The company’s chief pilot and mechanic is a firefighter who works at Skydive Kapowsin when he’s not on fire duty.

Farrington’s son, Andy, 40, has the most jumps in the family, an estimated 30,000, and, like his father, is a master parachute rigger.

Andy is also a member of the Red Bull Air Force unit, doing skydives, B.A.S.E. jumps and wingsuit flying. Red Bull’s website lists him as the unit’s youngest member and notes that he won the Pro Swooping Tour, captured the Red Bull Championship in 2003 and won first place in accuracy and second place overall at the canopy piloting world championships.

Fun fact, according to the Red Bull site: Andy had about 100 jumps in utero with his mother, Jessie, “riding tandem, so to speak.” The site adds, “Maybe that explains why he’s such a natural in the sky.” He did his first tandem jump at age 12 and first solo jump at 16.

Not to be outdone, sister Keri has more than 13,000 jumps and is a member of a women’s jump team, Highlight Pro Skydiving Team. The team’s mission, according to its website: to inspire women and girls to live bold, brave lives of their own design.

A Seattle Times story in 2021 called her one of the most recognizable women in skydiving. In the Times story, team co-founder Melanie Curtis, called Bell “an absolute legend in the sport of skydiving.” Added Curtis, “She is literally one of the most experienced skydivers in the community. She’s phenomenal.”

Skydiving is big among other family members, too.

Farrington notes that with nieces, nephews and others, there can be 10 family members in a plane on any given day. With the ease and safety of tandem jumping, more people have added skydiving to their bucket list, and Skydive Kapowsin takes care to accommodate each customer’s needs, Farrington said.

When a 94-year-old woman wanted to jump a couple years ago, staff wheeled her to the plane in her wheelchair, lifted her into the aircraft, and Keri took her on a tandem jump.

“It’s just that type of thing,” he said. “Her kids felt comfortable, she felt comfortable, we went out to the landing area and picked her up in her wheelchair and brought her back to the hangar.”

Several days before Farrington spoke for this story, Skydive Kapowsin took a man for his first jump on his 80th birthday.

“They’re excited that something they’ve wanted to do, they’ve talked about doing for a long time, and at some point somebody says, ‘Well, it’s time to do it,’ and they come out and do it,” Farrington said.

This list represents a sample of important information we suggest organizing and keeping in an accessible location. As each person’s situation is unique, your records may include additional documentation.

FINANCIAL RESOURCES

– Bank statements, safe deposit box lease, etc.

– Investment and retirement statements

– Health account statement (FSA, HSA, etc.)

– Social Security and pension statements

– Loans, lines of credit and credit card statements

– Prior year tax return with all documents

PROTECTION & INSURANCE

– Auto, homeowners/renters and umbrella

–

–

Life Insurance, disability and long-term care

Warranty and protection plans

– Inventory of personal property

– Medical, dental, vision and prescription(s)

– Medicare/health insurance cards

– Important personal health considerations

LEGAL DOCUMENTS

– Estate plan (will, power of attorney, trust, healthcare power of attorney, living will, etc.)

–

Beneficiary designations

– Final arrangements, burial deeds and plots

– Copy of birth certificate, passport, Social Security card, marriage certificate, divorce decree, prenuptial agreement, military discharge

– Real estate purchase, sale and improvements

– Vehicle title and registration

KEY CONTACTS

Family contact

Power of attorney

Executor

Banker Attorney

Tax advisor

Insurance agent

Health care provider

BUSINESS OWNERS

– Documents: formation, operating, succession

– Financials: bank, loans/lines of credit, balance sheet, income statement, tax return, valuation

– Contracts: leases, real estate, services, buy-sell

– Insurance: business insurance, key person

– Key contacts: owners, investors, employees, vendors, suppliers, customers

HELPFUL TIPS

– AdviceWorks, our online account management portal, provides a summary for your Heritage Wealth relationship and can link outside accounts

– Statements and insurance policies should be less than one year old

– Year-end statements are ideal for investment and retirement accounts

– Insurance documents should include declaration pages outlining coverages

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

financial institution guaranteed

a deposit

insured by any federal government agency. 1000 SW Broadway, Suite 2170, Portland, OR 97205, (888) 360-0052

Budgeting FOR Expansion

An increase in demand needs to be sustainable to justify the possible additional costs for new equipment, more inventory, raw materials, work in progress and employees.

So, what exactly are you aiming for?

Your expansion plans should consider the economies of scale relevant to your situation—in other words, sweet spots in output where profit becomes optimal. They should also consider the limits of these economies of scale. For instance, are you limited by the ability of your suppliers to increase their supply while maintaining quality?

BUDGETING FOR GROWTH

Both your fixed and variable costs are likely to be higher. Forecasting your cash flow for expansion is a crucial exercise. Analyze your variable and fixed costs in detail by making sure your forecast includes not only the projected costs for your growth plan but the day-to-day running of your business pre- and post-expansion. Make sure you’re getting the balance right to cover these higher costs.

Aim to cover any large expenses incurred while expanding, for instance, through purchasing new equipment. You also need to know that once you’ve got the nuts and bolts in place, your new, larger business will be able to stay in the black day-to-day. This will probably involve forecasting further ahead than you usually do.

Forecasting will help to highlight any potential areas of risk or hidden problems. In addition, if you’re not quite sure about some details of your strategy, running scenarios through your forecasts will help to improve the pace and scope of your plan.

Run a pessimistic, realistic and optimistic version of your final financial forecast. This will help avoid the temptation to be overly optimistic and demonstrate to potential lenders and investors how carefully you’re thinking about the implications of growing your business.

Get your accountant or financial advisor to confirm what you’ve planned is realistic. Try to also consult experts in the

field and other business owners who have experience in growing a business. Their advice may help you draw up a realistic expansion plan and avoid some hidden pitfalls.

FINANCING YOUR EXPANSION

Depending on the type of business and scale of planned growth, using your own operating revenue or cash reserves may cover it. This allows you to proceed with no external interference from lenders but does expose the business to financial risk. As the funds for expansion won’t come in one large injection, it also places limits on the pace at which the business can grow.

In terms of external financing, the most obvious option is to discuss plans with your bank and try to secure a loan. If you welcome the idea of having additional skills and experience on hand, you may want to see if you can attract investors as another option.

Some owners seek to raise capital in other ways: crowdfunding, angel investors, friends and family or bootstrapping (borrowing and finding as many ways as possible to get what you need without paying for it).

INVESTING TIME INTO PREPARATION

As in all areas of business, planning and budgeting for expansion requires careful thought and time.

No matter what your financing plan is, it makes sense to invest time in optimizing your cash flow in the lead up to expansion, as you’ll need as much cash on hand as possible for any unforeseen issues. If you feel there’s room to improve in this area, use your expansion as a motivator to really tighten up your credit control and spending.

Run your business through a financial health check. It’s a good idea to find out if you have any problems that need addressing before you launch your expansion plans.

When you’re ready, talk to us about our range of lending options so we can help tailor a package to suit your growth plan.

GET RE A DY FOR

We’re excited to announce that the bank will once again close for a dedicated afternoon of giving back. On Wednesday, September 13, employees will have the opportunity to volunteer their time and skills at local nonprofits and organizations throughout Washington, Oregon and Idaho. We will be actively engaging in various activities aimed at making a positive impact in our communities.

As our valued customers, you are an integral part of our success and the reason we exist. We firmly believe in the power of giving back, and we want to extend that commitment beyond our day-to-day operations. This is an opportunity for our employees to connect with the community, demonstrate compassion and contribute to causes that align with our shared values. While our doors may be closed for a few hours, our commitment to serving you remains unwavering. We

have taken all necessary measures to ensure minimal disruption to your banking experience during this time. We will have limited customer service staff available during this time to address any immediate banking needs, online and mobile banking services will continue to be available and our ATMs will remain fully operational. We invite you to join us in celebrating the spirit of service by considering your own acts of kindness or community involvement. Together, we can create a ripple effect of positive change that extends far beyond the walls of our bank.

All Heritage Bank locations will close at noon on Wednesday, September 13, 2023, and will remain closed for the remainder of the day. We will open at our regular time the following day.

Check out our 2022 Community Investment Report for a recap and photos of last year’s event.

“I am proud of our dedicated employees and their willingness to go the extra mile to help the communities we serve. Their enthusiasm extends beyond traditional banking, and we are privileged to have such exceptional individuals on the team. By offering our skills, expertise and time, we hope to make a substantial difference in the lives of those who need it most. We look forward to sharing the stories and positive impact created by our employees during our upcoming bank-wide volunteer day.”

– Jeff Deuel, CEO

Gaining Inspiration for New Ideas

It’s great when you get that “light bulb” moment and are inspired to create a new product or service. Unfortunately, inspiration doesn’t always strike when you need it to, like when you’re thinking of ways to invigorate your business with a new idea or simply trying to run your business. To come up with something new that solves a need for a specific market, there are a few places you can look.

Search online

The first and most obvious place to start is online. The internet has splintered into millions of special interest groups, and there will be at least a few that relate to your industry. Look at third-party selling sites like Amazon or Google and read through the product reviews. You’ll be surprised how many ideas you can get just by reading about what products people buy and what they like and dislike about them.

When you’re searching, try “new product ideas,” “future (your industry) trends,” “new product trends” or anything that relates to what you do. You can also browse news sites for current information about products or services similar to yours.

If you find a valuable news source, industry leader, blog or the like, subscribe to their content. You never know what they may post that sparks a new idea.

Check out your competition

Search for businesses that are similar to yours. Review their products and services and look for ways you could improve your own. The idea is not to copy them but to find inspiration from what your competitors are doing differently. Research businesses like yours that operate in other countries to find new ideas far away from your current operation.

Attend conferences, events and trade shows

Get in front of new ideas by attending (virtual and physical) events that demonstrate new ideas or research. It doesn’t always have to be in your industry either, as often good ideas can be gained from listening to experts from other fields.

Check specialized websites

Many websites and media outlets are specialized in identifying and showcasing current trends. Sites such as fastcompany.com, trendhunter.com and bestproducts.com focus especially on innovative or ground-breaking products. Ask colleagues or other business owners where they look for inspiration and ideas.

Use social media

Facebook, LinkedIn, Twitter, Instagram, Pinterest and YouTube are all great resources for new product ideas and inspiration. The trick is knowing how to search them and filter out the unnecessary noise.

• Twitter has an advanced search option to search for phrases such as “new products,” “I wish there was XYZ,” “does anyone know how to,” “is there a product that does XYZ,” etc. You get the idea; you’re trying to find out what people want.

• Instagram use hashtags, such as #awesomeproducts, #amazingproducts, #trends, etc.

• If a particular photo in Pinterest has a high number of likes, it can be a sign that the product or service shown has real market potential.

• YouTube will show a series of similar videos from any search request. Keep following the trail.

Find out what people want

Talk to your customers and prospects to tap into their minds and passions. What new products, solutions, communications and experiences truly resonate? Try to find out what the pain points are. What problems need to be solved? Regularly brainstorm with staff and even suppliers. Start with problems you are personally invested in. Think about what’s out there in the marketplace and what you wish was there. Talk to your family, friends and customers about products and solutions they’d like to be able to purchase. Look outside your own industry. Try to determine how other businesses are solving problems. They might be using an approach that for them is routine but hadn’t occurred to you before.

Track everything

Every time you encounter frustration with a customer experience, write it down. Ask yourself: is this a problem I can solve? Ask others if they’ve run into the same difficulty and what they’d like to see done about it. Could you turn that solution into a new business idea?

Summary

The key to gaining inspiration is keeping an open mind. When you’re searching online or talking to people, use your imagination to refine unique observations into a genuine problemsolving solution.

Unlocking Tailored Lending Options for Your Nonprofit

Embrace the power of a supportive banker to unlock new avenues of financial support and propel your nonprofit toward greater impact and success.

In the world of nonprofit organizations, having a supportive banker who understands your unique financial landscape and is willing to explore creative lending options can be a game-changer. While traditional funding sources may have limitations, a banker who goes beyond the conventional can unlock new avenues for financial support, enabling your nonprofit to thrive. In this article, we’ll delve into the benefits of having a banker on your side and why their knowledge in specialty lending options is vital for the success and sustainability of your nonprofit.

IN-DEPTH KNOWLEDGE AND UNDERSTANDING

A supportive banker with experience in the nonprofit sector brings invaluable knowledge and understanding to the table. They comprehend the challenges nonprofits face in cash flow seasonality, fundraising fluctuations, grant cycles and the reality of restricted funds available. This understanding allows them to assess your financial needs accurately and propose lending options that align with your organization’s mission and objectives.

TAILORED FINANCING SOLUTIONS

Creative bankers recognize that one-size-fits-all lending options may not suit a nonprofit’s diverse requirements. They are adept at tailoring financing solutions to accommodate the unique circumstances of your organization. Whether it’s a line of credit to manage cash flow gaps, program-specific loans, bridge financing for grant cycles or impact-focused financing, a supportive banker can customize lending structures to meet your specific needs. It’s important to your nonprofit’s long-term financial sustainability that your banker respect your and your board’s risk appetite with respect to debt and for the banker to fully inform you of the risks they anticipate that you may not have considered.

FLEXIBLE REPAYMENT TERMS

Nonprofits often face a temporary cash need due to periodic grant disbursements or donor contributions that are paid out over a long period of time. They also may incur expenses ahead of receiving service revenue under contracts from

government entities, foundations or from tuition payments from parents. This can lead to a seasonal working capital financing need. A creative banker understands this dynamic and can structure loan repayment terms accordingly. This customization provides your nonprofit with the breathing room needed to manage finances effectively.

COLLABORATION FOR IMPACT

A supportive banker can be a strategic partner in advancing your nonprofit’s mission. They can offer insights into funding trends, government initiatives or philanthropic partnerships that align with your organization’s focus areas. By fostering a collaborative relationship, your banker can connect you with potential funders, facilitate introductions or provide guidance on fundraising strategies, amplifying your impact and expanding your network.

INNOVATIVE FINANCING APPROACHES

Beyond traditional loans, creative bankers can help nonprofits explore alternative financing approaches. They can introduce concepts such as program-related investments, social impact bonds or crowdfunding platforms tailored to nonprofit initiatives. These innovative financing methods tap into the growing interest of impact investors and socially conscious individuals, potentially attracting new sources of funding for your organization.

Visit HeritageBankNW.com to connect with one of our experts and discuss your needs, questions and eligibility.

And, see page 20 for details on Converge, a new product we offer that allows you to accept donations anywhere.

SNAP & STEP LOAN PROGRAMS

At Heritage, we have a team dedicated to the nonprofit sector. They’ve spent years working with all different types of nonprofits—from schools to heath care facilities to affordable housing developers—and regularly think outside the box when it comes to devising sustainable financing solutions. Below are two loan programs that are a little more “unconventional”—but may be an option depending on your nonprofit’s circumstances and future plans.

The SNAP loan program was started in 2007 by the Oregon Facilities Authority (OFA) as a way for nonprofit organizations to obtain taxexempt financing quickly and easily. The program is an alternative to taxable commercial financing and can potentially save interest costs over the life of the loan.

Nonprofits typically use SNAP loan financing to purchase or construct facilities or to refinance loans previously taken out for those purposes. A bank (such as Heritage) makes the loan, which is then converted into a SNAP loan with OFA’s assistance. Both the bank and OFA use standardized documents that make the bond documentation process straightforward and far less expensive than a traditional tax-exempt bond.

Learn more about the SNAP loan program at oregonfacilities.org/snaploan-program.

The Streamlined Tax-Exempt Placement (STEP) program, run by the Washington State Housing Finance Commission, uses standardized documents so issuing tax-exempt bonds is simpler and more feasible to a wider range of borrowers and projects. ond. Because interest payments become tax-exempt income to the bank, the lender passes on their tax savings to the borrower in the form of a lower interest rate. Lower interest rates could potentially mean a lower debt service or a larger loan for the borrower. Lenders use the same underwriting criteria and determine the interest rate as they would for any typical commercial loan.

Learn more about the STEP loan program at wshfc.org/facilities/step.htm

ABOUT THE CONTRIBUTOR: PHIL BRIDGE

Phil Bridge joined Heritage Bank in 2018. As the senior vice president regional credit officer, he works with the bank’s lending teams between Tacoma, Washington, and Eugene, Oregon. He has over 15 years of commercial banking experience and expertise in loan portfolio analysis, lending and credit administration/management.

ABOUT THE CONTRIBUTOR: KATHY SWIFT

Kathy Swift, senior vice president nonprofit development officer at 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.

7 farmers markets To Visit This Summer

BY LAUREN KRAMER

armers markets deliver a burst of color, expression, personality and local fare wherever their location. Magnets for locals and visitors, they promise not just delectable food but also a safe, enjoyable opportunity for conversation with growers and artisans. Whether you’re looking for a quick, healthy snack, inspiration for your next meal, art, lotions, pottery or other unique handmade items, you’ll find them all at a farmers market. In a world still reeling from the isolation of the pandemic, markets are a place where folks of all backgrounds can connect and reduce the loneliness while shopping for food in an environment that radiates warmth, friendliness and the fresh bounty of its terroir.

Every market has a unique personality and character, but below are some markets throughout the PNW that shine.

Washington

Washington state’s second largest market, the Olympia Farmers Market (olympiafarmersmarket.com), has four market days per week, each one featuring live music. Open year-round, the market rotates between 55 and 75

vendors, offering produce, dairy, meat, seafood, flowers and artisanal products. This market had its beginnings way back in the 1970s and is considered the jewel of Olympia, drawing farmers from three counties. It works hard to create partnerships in the community, for example with Youth Farmers of America. “We believe youth is the future of farming, and we’re exploring a youth ambassador program for our market that would bring farmed products grown by youth to market,” says Wren Green, the market’s general manager. 700 Capital Way, Olympia. Open Thursdays-Sundays, 10-3, year-round

The Green Bluff Growers (greenbluffgrowers.com) is a collective of 30 family-owned farms in the rolling hills just north of Spokane. The farmers operate independently, have different offerings and differing hours of operation. Many offer u-pick in season, allowing visitors onto their grounds to select their produce straight from the source. This is the quintessential old-fashioned farm experience, and its goal is to increase the exposure of the farms and offer the freshest fruit and vegetables. Offerings include produce straight from the orchard, cider, homemade pies and country hospitality. One of the farms, Hierophant Meadery, is connected to the Higher Ground Animal Sanctuary and will also be offering yoga with goats this spring and summer. Spokane area. Hours range between May-December

Featuring over 250 vendors of produce, plants and art, the Vancouver Farmers Market (vancouverfarmersmarket. com) is a lively destination filled with music, entertainment and conversation. The market had its roots back in 1990 and operated March through October, until this year when it became a year-round staple on weekends in Vancouver. Stroll through the park venue on any weekend and you’ll see up to 175 vendors each market day. Offerings range from hummus to floral wreaths, coffee to sprouts and ceramics to glass art. The market emphasizes

Vancouver Farmers Market

the work of local makers and artisans and works hard to provide food education and Supplemental Nutrition Assistance Program (SNAP) benefit redemption to lowincome households. They also donate surplus produce to food pantries and local shelters. 8th & Esther Street, downtown Vancouver. Open weekends year-round

The Bellingham Farmers Market (bellinghamfarmers. org) began in the 1970s in various iterations, and as of 2006, found a permanent home in the Depot Market Square. The Saturday market, a vibrant gathering place for locals and visitors, features 100 stalls offering a wide range of products as well as buskers and music. Shoppers browse for plants, produce, lavender products, cheese, seafood, beef and art. Look out for the kids programs offered on some market days, where children can learn about plants, pollinators, composting and healthy eating choices. Participants can even receive “kid coins” to spend at the market. 1100 Railroad Ave, Bellingham. Open Saturdays, 10-2, AprilDecember and the third Saturday in January, February & March

Oregon

Philomath Farmers’ Market (philomathfarmersmarket. org) is one of the state’s newest markets with around 40 vendors. It opened in 2018 in the heart of Oregon’s wine country, and in a town with no grocery stores, it provides vital, close-to-home access to fresh food. Its goal is to bring neighbors together, empower small farmers and provide a localized economy in an environment filled with music, chatter and friendliness. 1050 Applegate Street, Philomath. Open Sundays, 11-3, May-October Eugene’s Lane County Farmers Market (lanecountyfarmersmarket.org) is one of the largest markets in the state, with over 120 vendors operating out of a permanent, covered market space. Deeply integrated into the community, this market processes thousands

of SNAP dollars each market day, provides an important opportunity for vendors to make a living wage and allows the community to show its support for local food. Offerings include wine, baked goods, goat milk, meat, vinegar, cider and more. 85 East 8th Ave, Eugene. Open Tuesdays, 10-3, May-October and Saturdays, 9-3, February-December

Canyonville Farmers’ Market (canyonvillefarmersmarket. org) in southern Oregon was voted one of the state’s outstanding rural markets in 2021. It combines food, artisans and music in a fun, friendly environment, offering everything from quilts to nuts and honey, flowers to homemade confections, oils and spices. While its 50 vendors define it as a relatively small market, the Canyonville Farmers’ Market provides important grocery availability in an underserved area, striving to educate shoppers on the health benefits of consuming fresh fruit and vegetables. It allows small producers to sell directly to customers close to home, and its acceptance of SNAP benefits gives its many low-income residents access to healthy, fresh produce. 146 Chief Miwaleta Lane, Canyonville. Open Wednesdays, 9:30-1:30, May-October

Idaho

Boise Farmers Market (theboisefarmersmarket.com) is a food-centric market that celebrates local growers and producers, with 95% of the vendors selling food or agricultural products. Their Sprouts Kids Club focuses on empowering kids to make healthy food choices and the market also offers a drive-up option where people can shop online then conveniently pick up their selections on market days 1500 Shoreline Drive, Boise. Open Saturdays, 9-1, April-October

Green Bluff Growers

(from left) Matt Olfson, Beth Meidinger, Brock Mullins, John Evans, Alex Pace, Jeff Sterken, Ann Fish, Paul Crawford, Dave Purcell

Olli Tumelius

Seattle office All about helping its customers and communities

Beth Meidinger embodies what one hears often about Heritage Bank, whether from bankers themselves or the customers they serve.

The bank cares about its customers. Relationships are more than transactional.

“I think the difference with Heritage is that a fun part about our job is going out and understanding a client’s business,” said Meidinger, senior vice presidentcommercial banking team leader for the bank’s downtown Seattle office, located at 1420 Fifth Avenue on the 36th floor. “It becomes personal because you get to know them, you get to know their family and all their ups and downs.”

Heritage’s work to distribute Paycheck Protection Program (PPP) loans during the height of the pandemic reflected that resolve to help. Customers have told us that getting PPP money through Heritage was quick and efficient when some other banks were slower to establish their systems and meet customer needs. Bank employees were working from home in evenings, talking to customers, doing everything they could to help clients and non-clients before federal assistance dried up, Meidinger said.

“We did it really, really well,” she said. Numbers bear that out. Heritage processed more than 7,100 PPP loans totaling $1.2 billion, she said. The Seattle office processed 328 of the loans totaling about $100 million.

“We had other bank’s customers coming to us once we were able to open it up to non-customers, and what a great way to earn the trust and respect of a non-customer that we were able to retain later,” she said. “I really feel that there is an honest-to-goodness caring; that vein runs deep at Heritage, and we really care about these businesses that we bank. It really makes the job a lot more fun.”

That heart pumps especially big in helping nonprofits and the communities they and the bank serve.

“Nonprofits are an area that we really focus on,” Meidinger said.

BY JOHN STEARNS

The Seattle team has four bankers working on a nonprofit initiative to do even more, Meidinger said. The group attended the Washington State Nonprofit Conference on May 17-19, which included two days of online sessions titled “Learn” and “Advocate” and a third day in person, “Collaborate,” at the Marriott Tacoma Downtown. At the event, nonprofit organizations of all sizes gathered for workshops and a trade show with sponsors and exhibitors featuring professionals like bankers, accountants, marketers and others who can help nonprofits further their cause. Heritage Bank was a partnering sponsor of the event.

The Seattle bankers also participate in nonprofits, whether serving on boards or volunteering at events. In addition to Meidinger, those bankers include Amy Curran, executive vice president-director of commercial banking; Alex Pace, senior vice president-commercial banking officer; Ann Fish, vice president-relationship banking officer; Brock Mullins, senior vice president-commercial banking officer; John Evans, senior vice president-commercial banking officer; Matt Olfson, senior vice president-commercial banking officer; Paul Crawford, vice president-commercial banking officer; Dave Purcell, senior vice president-capital markets group manager; and Jeff Sterken, vice presidentcapital markets banking officer.

Among the many organization boards they serve on, some include Tacoma’s Youth Marine Foundation, Work Opportunities and Foundation for Edmonds School District. Meidinger has served on Issaquah’s Village Theatre board and Northwest Kidney Center board. Last year the Seattle office, as part of a larger bank program where all branches close for a half day to volunteer, focused its attention on Redmond’s Little Bit Therapeutic Riding Center, where bankers mucked stalls, pulled weeds and took on other tasks to help out. Heritage plans another bank-wide volunteer day in September 2023.

The Seattle team’s lending focus includes community projects like two multifamily affordable housing projects expected to close in late June. Between the two, Heritage

KING COUNTY BY THE NUMBERS

Major industries: professional and business services, education and health services, retail trade, government, information and leisure and hospitality

Major employers: Amazon, Microsoft, Boeing, University of Washington, Providence Swedish

Nearly 1.46 million jobs (as of 2022)

$105,520 annual wage

#1 best county for young professionals in Washington

esd.wa.gov/labormarketinfo/county-profiles/ king#:~:text=Major%20industry%20sectors%20in%20 King,information%2C%20and%20leisure%20and%20 hospitality seatoday.6amcity.com/top-industries-employers-seattle-wa

OUR COMMERCIAL TEAM

Combined banker experience: 203 years

Areas of expertise: commercial real estate, commercial lending, equipment financing, affordable housing, nonprofits

Volunteer hours served in 2022: 190

Charitable giving in 2022: $160,000

Top nonprofits: Sea-Mar Community Health Centers, Low Income Housing Institute, Plymouth Housing, Wonderland Child & Family Services, Youth Marine Foundation, Work Opportunities, Foundation for Edmonds School District

CONTACT OR VISIT

1420 Fifth Ave, Suite 3600 Seattle, WA 98101 206.204.4068

Hazel Lee Branch Relationship Officer

Hazel has worked for Heritage since 2019 and started as a customer service associate. She furthered her career as a financial services associate and commercial banking associate and is now the branch relationship officer at the Seattle commercial banking center.

will help provide 144 new affordable housing units, one of which is entirely for low-income seniors.

“We are very excited to be a part of these projects,” Meidinger said, highlighting Pace for his work in the affordable housing space. Pace manages the bank’s low-income housing tax credit and bond financing and he does a masterful job coordinating the many parties involved in such deals, Meidinger said.

The Seattle team has a combined 203 years of banking experience, according to Meidinger, who has 30-plus years in the industry. She joined Heritage in 2015 as a commercial banker, a role she held until 2021, then took over the team lead position when Curran was elevated to commercial banking director for the entire bank and to whom Meidinger reports. The office also includes three credit analysts and two loan production assistants.

The Seattle office does significant construction and investor real estate financing, including commercial and industrial credits, she said, estimating 75% of the office’s portfolio is real estate. The balance is owner-occupied commercial and industrial credits for accounts receivable and inventory lending in the for-profit and nonprofit sectors.

Capital markets group

Purcell, who heads the capital markets group for the bank and works out of the Seattle office, started the group in 2015 when he joined Heritage. The group serves the bank’s entire footprint throughout the Northwest. The capital markets group acquires loans that are led and originated by other banks that are too large for the other banks to assume all the risk by themselves, a process typically referred to as participation or syndication loans. Internally, they’re called multibank loans.

The capital markets group also does loan distribution, essentially the opposite of loan acquisition. If Heritage is originating a loan that is too large to hold the whole loan, Purcell will work with other banks on participating in the deal. The Seattle office’s downtown location offers proximity to other banks’ officers to discuss the deals, he said. Multibank loans allow Heritage to participate in loans that otherwise would be too big for it alone and allow it to diversify its credits. In general, the capital markets group will do loans of roughly $5 million to $25 million for total transactions that can range from $15 million to $500 million.

“Particularly for community banks like Heritage, it’s a great way for us to serve the needs of our customers as our customers grow but also protect our risk and protect ourselves from being overly concentrated in one area,” Purcell said.

Purcell also manages the bank’s customer-facing swap program offering ways for customers to manage their interest rate risk.

Make deposits at the speed of business.

Heritage Bank allows you to eliminate a trip to the branch with mobile check deposit and Remote Deposit Capture. With these convenient and secure services, checks can be deposited directly from your office, speeding up the availability of your funds.

• Deposit checks anytime, seven days a week

• Archive check images for paperless record keeping

• Add efficiency and eliminate the cost and liability of regular trips to the bank

See below for a comparison to determine which one is the right choice for you. When you’re ready, reach out to one of our bankers with questions or to get started.

How does it work?

How many checks can I process at a time?

Do I need any special software?

What equipment will I need?

Using our mobile banking app, snap a photo of the front and back of your checks.

While you can make as many mobile deposits as you need in a month, you will have to take a photo and enter the amount of each check individually.

You will need our mobile app and an internet connection. There is no additional software needed.

You will need a mobile device such as a tablet or smartphone.

Using a special scanning machine, scan checks and submit them securely online from your office.

Depending on your needs, we have single-feed and multi-feed scanners available. Multi-feed scanners can scan up to 50 checks at a time.

You will need an internet connection and an available USB port. Bank provided software will also need to be installed.

You will need a check scanner.

How quickly will my funds become available?

Accepted deposits made before 6:00 p.m. PT Monday through Saturday are usually posted to your account the same business day. Deposits made after 6:00 p.m. PT or on Sunday and holidays will not appear in your transaction history until the next business day.

Accepted deposits made before 6:00 p.m. PT Monday through Friday are usually posted to your account the same business day. Deposits made after 6:00 p.m. PT or on Saturday, Sunday and holidays will not appear in your transaction history until the next business day.

How much does it cost?

Mobile deposit is included in Heritage Direct online banking.*

*There is a monthly fee for Heritage Direct Corporate.

You will need to purchase a scanner(s). We can refer you to a partner vendor or provide a list of compatible scanners.

Additionally, there is a one-time set up fee of $100 and monthly fees of $50 for the first scanner and $25 for each additional scanner.

Which one is best for me?

If you need to process only a few checks at a time and want to save money on fees, mobile deposit may be the better choice.

If you regularly process a large volume of checks or need to process checks at multiple locations, RDC may be right for you.

Mobile Check Deposit

Remote Deposit Capture (RDC)

Industry Profile: Manufacturing

Manufacturing contributes significantly in terms of exports and diversification. The U.S. exports a wide range of manufactured goods to many countries. However, recent events have contributed to a number of new challenges, such as supply chain disruption, which changed how manufacturers protect their ongoing input and outputs. High technology manufacturers are often global leaders because they generally specialize in niche markets.

The pandemic created new challenges for manufacturers who often relied on “just in time” inventory management and sales processes. While many were unable to access raw materials, others saw a boom in business. Changes that manufacturers must anticipate include:

• Implementing online sales channels as part of their digital transformation strategy.

• Doing more with less by leveraging tools, business intelligence and technology to enable agility.

• Prioritizing employee health and safety in the work environment.

• Incorporating digital connectivity into as many aspects of the production process as possible.

• A growing need to move towards sustainability.

• Creating a centralized data and communication hub so teams can connect easily and securely wherever they are.

• Building resilient supply chains to minimize disruptions.

• Meeting the needs of a 100%-connected customer base that expects personalized brand experiences. Small businesses in manufacturing should prioritize creating:

• A strong reputation for manufacturing quality, leadingedge products.

• Flexible and relatively short production cycles to supply high-value niches globally.

• World-class research and development capabilities.

• Strong legal protection for intellectual property.

Success Characteristics

Regardless of the industry they serve, successful manufacturing businesses share a similar set of characteristics that ensure long-term success, such as:

• The ability to quickly scale to meet demand using technology and supply chain management. This agility could also assist in driving improved productivity.

• Building strong relationships with suppliers, distributors and recruiting.

• Establishing a strong brand reputation in the community for social, ethical and sustainable practices.

• Risk reduction through solid market research, testing and launching minimum viable products.

• Developing and nurturing effective distribution channels, especially those who have demonstrated resilience.

• Creating efficient production lines, maximizing the number of units produced in a day.

• Establishing excellent quality control systems to protect credibility.

• Outlining efficient transport and logistics, including contingencies for disruption.

• Creating back-up plans in case of supply chain issues.

• Ensuring high visibility (easy-to-find website, directory listings and membership of associations).

• A focus on innovation and cost.

• Carrying out detailed cash flow forecasting to avoid over-trading in peak season.

• Regularly reviewing staffing and stock levels to ensure seasonal demands are met.

• Keeping current with U.S. progress in securing trade agreements with other nations.

• Seeking expert advice on the legal and financial implications of trading overseas.

Challenges

Manufacturers everywhere faced unprecedented issues as supply chains collapsed and the movement of raw materials and finished goods became unpredictable due to the pandemic. This caused specific challenges around forecasting and predicting cash flow, reliance on single suppliers and customers, how they accessed data and tracked their product process. Workers also demanded more mobility and care around their health, which forces manufacturers to assess new business models such as hybrid or fully remote workforces.

All manufacturers face some e-commerce challenges while undergoing digital transformation. Risks include lost revenue,

Manufacturing Trends

Better manufacturing software

Manufacturing management software has improved over the last few years, with several apps bundled together for estimating costs, project management, change orders, scheduling, human resources, billing and accounting.

Origin of goods

Consumers increasingly want to know the origin of raw materials of manufactured products and the working conditions of the employees (especially if manufactured offshore and imported). Food production often requires a “farm-to-table” tracking process. The social, environmental and governance aspects of a business are under the spotlight.

The internet of things (IoT)

The ability to reduce costs, increase efficiency, improve safety, meet compliance requirements and innovate products is primarily due to three factors: widely available internet access, smaller sensors and cloud computing. Customers may want greater transparency and communication and will be connected 24/7 with their suppliers.

Predictive maintenance

Ensuring all equipment is functioning optimally is a key priority for manufacturers, many of whom are turning to predictive maintenance technology to do so. By automating data collection, manufacturers can develop a better understanding of how systems work and when they will fail. The ability to predict when maintenance should be performed saves valuable time, money and resources.

Industry 4.0

McKinsey & Company defines Industry 4.0 as “the next phase in the digitization of the manufacturing sector,

poor customer experience, more customer service inquiries, diminished customer loyalty and a reduction in reordering. Manufacturing also has its own dynamics to manage:

• Dependence on sensitive global market prices

• Foreign currency exchange rate fluctuations

• Quality control and protection of intellectual property when extending manufacturing overseas

• High level of competition from strong and emerging economies

• The staffing, stock management and cash flow implications of seasonality

• Changes in the global economic climate

driven by four disruptions: the rise in data volumes, computational power and connectivity; the emergence of analytics and business-intelligence capabilities; new forms of human-machine interaction, such as touch interfaces and augmented-reality systems; and improvements in transferring digital instructions to the physical world, such as advanced robotics and 3D printing.”

Robots

For many manufacturers, robots are providing opportunities to reduce production costs and speed delivery. For example, robots in factories or industrial work environments can be utilized on assembly lines to build products or pick and pack orders.

3D printing

Manufacturers will benefit from faster, less expensive production thanks to 3D printing. It makes rapid prototyping possible, which is a highly cost-effective way for product designers to test and troubleshoot their products. In addition, it enables manufacturers to produce items on demand instead of having to store inventory. The ability to print-on-demand also reduces the time spent waiting for replacement parts and makes short production runs more cost effective. Waste materials can also be recycled back into fabrication.

Being able to service B2C as well as B2B

Manufacturers who traditionally had a business-to-business (B2B) model are shifting to a business-to-consumer (B2C) model due to the benefits of selling directly via online shopping. Other benefits of selling direct are faster time to market, brand and customer service control and price control. Additionally, data collected about customers can result in better products, stronger relationships and increased sales.

A c c e p t d o n a t i o n s a n y w h e r e

Converge® from Elavon® helps nonprofit organizations achieve donation goals and streamline fundraising efforts by accepting monetary donations anywhere they take place. Accept everything from debit and credit cards to PayPal TM, electronic checks and digital wallets. Manage and track campaign donation activity easily and securely from anywhere with any browser-connected device. Use Converge’s friendly online portal or integrate Elavon's technology with your websites, accounting and CRM systems via easy-to-use developer tools.

Converge all-in-one commerce solution

In person

Connect

Over the phone

Streamline electronic donations

Save time, improve cash flow and control processing costs with built-in productivity boosters. Customize " donate now" buttons, payment pages and invoices with your brand to improve the customer experience

• Card on file: Securely store donor profiles and card details for collecting repeat, recurring and subscription donations.

• Remote billing and invoicing: Email invoices to donors, members, sponsors and vendors and allow them to pay online with a simple click.

• Credit card surcharge: Offset costs with our card brand-compliant program that allows you to pass acceptance costs to donors.

• Product catalog: Speed up checkout and reduce staff keying errors by setting up a list of donation levels and merchandise, including prices and descriptions.

• Field-level donations: Connect a card reader to a tablet or use a portable payment terminal to accept in-person payments and donations at events and fundraisers.

• Reporting: Easily track a campaign's performance and export data to accounting and management systems.

• Administrative tools: Add staff and volunteers and assign roles based on access rights.

Gain peace of mind

Protect payment data, reduce fraud and simplify Payment Card Industry Data Security Standard (PCI DSS) compliance validation with advanced security technologies.

• Encryption

• Tokenization

• Online cardholder authentication

• Integrated fraud prevention

To learn more, visit the Converge YouTube channel or contact your relationship manager to get started.

MARLENE JOHANSON

Take a hike? You bet—and throw in some skydiving, strength training and camping, too

Climbing mountains and jumping out of airplanes may seem counterintuitive for someone who was afraid of heights and would get vertigo on the Space Needle, but I’ve overcome many of my fears and love the beauty and inspiration each activity provides. In fact, jumping out of an airplane for the first time last summer was the best thing I’ve ever done.

I was a little worried I would back out once it came time to jump, but I didn’t hesitate. I was scared, but I was positive the parachute would open; after all, I was strapped to an experienced guide for the tandem plunge. The views, the adrenaline and the pride when I landed—I think everyone should experience the rush just once.

I did my second jump in midMay with my oldest daughter, 36, who made her first jump for her birthday. Everyone told me the second time is better, and they were right. The views were amazing: beautiful blue skies and you could see from the Olympics to Mount Hood. My daughter did fantastic, and I was (and am) so incredibly proud of her.

I haven’t conquered all my heightrelated nervousness. For example, I keep my distance from ledges when hiking because, unlike being strapped to a parachute, there’s nothing to prevent a fall from a cliff-hugging trail or mountain ledge when on foot. Nonetheless, I love the outdoors with its visual rewards, whether summiting a volcano, like Mount St. Helens (which I’ve done twice), or enjoying stunning views from trails high above the Columbia Gorge. Living in Longview, Washington, there’s so much spectacular hiking and scenery nearby.

My goals are to summit Mount Hood in the next couple of years and to hike all 2,650 miles of the Pacific Crest Trail from Mexico to Canada after I retire. At 60, I’m in the best shape of my life and love being active to enjoy the inspiring landscape that hiking offers.

The older I get, the more adventurous I get.

I got turned onto to hiking starting when my husband, Keith, and I would take our three kids, two girls and son who are all in their 30s now, on Sunday drives that might include short excursions to waterfalls or some other attraction. Nothing long or dangerous, of course. After they were grown, Keith and I picked up hiking, doing short treks at Mount Rainier National Park and such. Then I met a group of ladies who like to do longer hikes, about 10 to 12 miles, and I got hooked on the physical activity and beautiful rewards that come with the scenery, especially as my husband’s knees have limited his on-foot adventures.

At my age, I want to ensure I can continue doing the activities I love; therefore, I work hard to stay fit and mobile. Learning that we lose muscle mass as we age, I started strength training at a local gym during COVID, followed by obtaining my certification as a personal trainer and nutritionist. As the pandemic waned, I created a gym in our garage. I include cardio in my workouts, but I focus largely on strength training.

Some of my colleagues or business partners joke that they want to arm wrestle me, but I don’t want to embarrass them. (Just kidding, I love having the muscle tone of someone younger and the accompanying good health.) I take no medications and my doctor said I’m as healthy as a 40-year-old. I’ll take it! I work out daily Monday through Friday, try to do a fun hike or other physical activity during the weekend and take one day to relax.

I get up at 3 a.m. during the week, have my coffee and enjoy some quiet time. A friend comes over at 5 a.m. and she and I do our training circuit in my garage until about 6:30 or 7. Then it’s off to work at my Heritage Bank office in Longview. I usually go to bed between 6:30 p.m. and 8 p.m.

While Keith’s knees don’t allow big climbs, we do love to kayak and camp. Anything I can do to be outside, especially on summer weekends, rejuvenates me. Keith and I do one weeklong camping trip each year with another couple where we tent camp off a forest road near one of the Cascade peaks—we’ve done Mounts Adams, Rainier and St. Helens—and go completely off-grid. Our “unplugged” trip this year will be in the Olympic Mountains.

I’m not afraid to rough it. When I first started doing it, I thought, “You want me to do what?” But I enjoy it. Going off-grid for a week, no computer or phone, just resets my internal clock. It’s great.

We also own a camp trailer and Keith and I will take it on weekend getaways or longer if time allows.

I can’t imagine not being mobile as I get older, so I’m motivated to keep active and fit.

At work, I keep moving as an assistant vice president-commercial banking officer for Heritage, a job I’ve held the last three years. I also worked 20 years with Heritage on the retail side, then went to another bank for a year before returning to Heritage for my current role. The bank encourages community involvement, which I love as a longtime resident in this area. My involvement includes serving as treasurer on the board for the public TV station KLTV. I’m also the past president for the United Way of Cowlitz and Wahkiakum Counties and am the current president of the LongviewKelso Chamber of Commerce board. Previously, I served on the Longview Pioneer Lions helping raise money for scholarships and people in need.

I love giving my time to those agencies and nonprofits in the community and feel like I’m making a difference for people. Heritage supports that kind of involvement, which is incredible.

Women in Business

In the world of entrepreneurship, a dynamic shift is underway as women break barriers and shatter glass ceilings to establish their mark in the business landscape. Womenowned businesses have emerged as a formidable force, harnessing innovation, determination and resilience to make substantial contributions to the global economy. Across various industries and sectors, women entrepreneurs are wielding their expertise, creativity and unique perspectives to create thriving enterprises. From small startups to large corporations, the rise of women-owned businesses is reshaping traditional notions of business ownership and redefining the economic landscape in powerful ways.

Women-owned businesses

• Women-owned businesses now represent 42% of all businesses (nearly 13 million), employing 9.4 million workers and generating $1.9 trillion in revenue

Businesses owned by women of color

• 5.4 million companies are majorityowned by women of color in the U.S.

• These companies employ 2.1 million people and generate $361 billion in revenue annually

Million-dollar businesses

• One in five companies with revenue of $1 million or more is woman-owned

• 4.2% of all women-owned have revenue of $1 million or more

Check out these organizations that support women entrepreneurs:

• National Association of Women Business Owners (nawbo.org)

• American Business Women’s Association (abwa.org)

• Small Business Administration’s Office of Women’s Business Ownership (sba.gov/officewomens-business-ownership)

Statistics from the American Express 2019 State of Women-Owned Businesses Report

Marlene Johanson is a commercial banking officer at Heritage Bank in Longview, Washington. She works with business customers to find financial solutions to meet their goals. Her experience in small business lending, branch management and consumer lending gives her a solid foundation to help her customers succeed.

Photos courtesy of Marlene Johanson

Avoiding Credit Card Fraud (part 2)

This is the second article in a two-part series. Read the previous article in the last issue of Banking Business. Safeguarding your business against fraud is important, particularly if your business is accepting credit cards. Credit card fraud is something that can never be eliminated but rather something that must be managed.

PROTECTING YOUR BUSINESS

Credit card fraud is minimized if the cardholder is physically present.

If you do experience credit card fraud, initially you’ll probably know when you get a chargeback (a reversal of a credit card payment from your account). For this reason, it’s important that merchants take steps to identify the purchaser and ensure that every transaction is legitimate.

Here are some examples of increasingly common scams.

Authorization approval

Authorization approval does not mean that the merchant is guaranteed payment. Approval only indicates that at the time the approval was issued, the card hasn’t been reported stolen or lost and the credit limit has not been exceeded. If someone is using the credit card number fraudulently the cardholder has a right to dispute the “approved” charges and the transaction could be charged back to your business.

Refund fraud

Refund fraud involves issuing credits (refunds) via your EFT/ POS terminal. It’s often committed by employees processing refunds to their own debit and/or credit card. To avoid detection, they may create a large sale on a fraudulent card then process a refund to their own card.

To guard against this type of fraud, closely monitor all refunds, ensuring that they correspond to a legitimate sale and are refunded back to the card used for the original purchase.

Shipping scam

This type of scam involves using stolen credit cards to pay for goods. The scammer contacts the business requesting goods to be shipped overseas and the price (plus freight charges) to split between several credit cards.

The scammer insists that the business use a particular shipping company and provides a phony email address. The business then contacts the “shipping company,” who requests the freight charges be paid upfront by cash wire transfer.

The business is fooled into making the transfer after having checked that the credit cards have sufficient funds and are not stolen. But the shipping company’s email address is a front for the scammers and the credit card details are stolen, probably from online card accounts which may take some time to discover.

Ticket scams

Ticket scams relate to sales (generally for tourism activities, travel passes, etc.) via private sellers on social media apps or resale sites.

The scammer poses as an independent re-seller offering discounted prices for tickets via an online platform. The seller purchases the tickets from the rightful ticket company using illegally obtained credit card details.

These tickets are then sold to the unaware consumer who pays for these tickets at a discounted rate via bank transfer. The ticket company then receives a reversal/chargeback for the fraudulent transaction a short time later.

You are within your rights to decline suspicious orders, as it will be your business who will be liable for any loss if the legitimate cardholder disputes the transaction.

OPPORTUNISTIC FRAUDSTERS

Fraudsters are notorious for finding ways to scam people, especially when noteworthy, global or national events occur. We’ve seen a dramatic increase in fraud following natural disasters, civil unrest, economic uncertainty, pandemics, etc. These types of events create ample opportunities for dishonest individuals and criminal organizations to prey on people’s anxieties through fear, urgency and isolation. In more high-stress situations, be extra cautious of:

> Business Email Compromise – victims receive an email they believe is from a company they normally conduct business with, but this specific email requests funds be sent to a new account or otherwise alters the standard payment practices. It targets both businesses and individuals who perform legitimate funds transfer requests.

> Account Takeover – criminals successfully gain access to a person’s online account(s), usually ones that contain either financial information or personally identifiable information.

> Bank Imposter Scams – victims receive a call, email or text that appears to come from their financial institution that indicates a problem with an account or transaction and direct them to click a link or call a given number.

> Government Imposter Scams – victims receive a call, email or text that appears to come from a government agency (IRS, FBI, FDIC, etc.) demanding payment or something bad will happen.

> Investment Scams – victims are lured with promises of high returns when investing in cryptocurrency, precious metals and private stock offerings without fully understanding the risks. Investment scams may be tied to romance scams or grandparent scams where someone unknowingly transfers assets to a fraudster.

We will never call, email or text and ask you to share your personal information, card, account number, password or PIN. If you are pressured to send money and not tell anyone, including the bank, call Heritage Bank immediately at 800.455.6126.

FINANCIAL DICTIONARY Liquidity

Ratio

A liquidity ratio is a financial metric used to assess a company’s ability to meet its short-term obligations or financial commitments without raising additional capital. It generally measures the proportion of a company’s current or liquid assets to its current liabilities. Liquid assets may include cash or assets that can be easily converted into cash within a short period, such as cash on hand, marketable securities and accounts receivable. It’s an important indicator of financial health and stability as it measures the company’s ability to handle unexpected expenses or capitalize on opportunities that require immediate cash. The most commonly used liquidity ratios are the current ratio and the quick ratio. Current ratio is the simplest liquidity ratio to calculate as it compares the company’s current assets to its current liabilities. Both can be easily found on a company’s balance sheet. Quick ratio is a more conservative measure of liquidity as it excludes inventory and prepaid items from the calculation. It focuses on assets that can be quickly converted into cash to meet short-term obligations. Both ratios provide different insights into a company’s liquidity position, and it’s important to consider the nature of the business and industry standards when evaluating these ratios. Contact your banker if you’d like to learn more or have any questions.

ABOUT THE CONTRIBUTOR: MATT RAY

Matt joined Heritage Bank in 2010. He’s currently the executive vice president chief lending officer but has held other leadership positions as commercial banking team leader, regional manager and market president. Matt has more than 25 years of experience in sales, credit, operations, commercial banking and residential real estate.

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