Deposit Services
The Company offers a wide range of deposit services that are typically available
in most banks and other financial institutions including checking, savings,
money market accounts and time deposits. The transaction accounts and time deposits
are tailored to the Company’s primary markets and market segments at rates
competitive with those offered in the area. Additional deposits are generated
through national networks for institutional deposits. All deposit accounts are
insured by the FDIC to the maximum amount permitted by law, currently $250 per
depositor. The Company provides online cash management, remote deposit capture
and banking services to businesses and consumers. The Company also allows 24-hour
customer access to deposit and loan information via telephone and online cash
management products.
Lending Activities
The Company emphasizes specific areas of lending within its primary markets.
Commercial loans are made primarily to professionals, community-based businesses
and nonprofit organizations. These loans are available for general operating
purposes, acquisition of fixed assets, purchases of equipment and machinery,
financing of inventory and accounts receivable and other business purposes.
The Company also originates U.S. Small Business Administration (“SBA”)
loans and is a national SBA preferred lender.
Within its primary markets, the Company also originates construction and permanent
loans financing commercial facilities, including investor and owner-occupied
projects. The Company also originates pre-sold, custom and, on a limited basis,
speculative home construction. The major thrust of residential construction
lending is smaller in-fill construction projects in inner-city urban neighborhoods,
and consisting of single-family residences. During 2015, as commercial real
estate prices continued to stabilize and improve, the Company expanded construction
financing activity in commercial real estate and multifamily residential construction
financing. During 2015, the housing markets in Portland and Seattle experienced
very low inventory and high rates of appreciation, thus the Company was selective
in financing single-family housing projects in both of these markets.
Due to the Company’s concentration in real estate secured loans, the Company
strategically focuses on increasing its commercial and industrial (“C
& I”) loan lending. In particular, the Company has developed a specialty
in C & I lending to dental professionals. Loans to dental professionals
include loans for such purposes as starting up a practice, acquisition of a
practice, equipment financing, owner-occupied facilities, and working capital.
Loans for dental office startups are typically SBA loans as these loans represent
additional risk. During 2015, the Company continued to expand its national dental
lending program.
The Company makes secured and unsecured loans to individuals for various purposes,
including purchases of automobiles, mobile homes, boats, and other recreational
vehicles, home improvements, education, and personal investment.
Inter-agency guidelines adopted by federal bank regulators mandate that financial
institutions establish real estate lending policies with maximum allowable real
estate loan-to-value limits, subject to an allowable amount of non-conforming
loans as a percentage of capital. The Board of Directors has approved specific
lending policies and procedures for the Company, and management is responsible
for implementation of these policies. The lending policies and procedures include
guidelines for loan term, loan-to-value ratios that are within established federal
banking guidelines, collateral appraisals, and cash flow coverage. The loan
policies also vest varying levels of loan authority in management, the Company’s
Loan Committee and the Board of Directors. Company management monitors lending
activities through management meetings, loan committee meetings, monthly reporting,
and periodic review of loans by third-party contractors.
Merchant and Card Services
In December 2013, the Company entered into an agreement with Vantiv, a third-party
provider of merchant services, to outsource all merchant processing for the
Bank’s clients. The agreement provides for a portion of the revenue generated
from existing and new clients to be shared with the Company. Through the agreement,
the Company’s existing merchant portfolio was converted onto the Vantiv
platform.
Wealth Management
During 2015, the Company began offering wealth management services through a
strategic partnership with Transamerica Financial Advisors (“TFA”)
and World Financial Group (“WFG”). This partnership provides for
employees of the Bank to also be Investment Advisors, Registered Representatives,
and/or Agents with TFA and WFG. The products available include: individual investment
advisory services, Company retirement plans, employee benefits programs, mutual
funds, unit investment trusts, fixed and variable annuities, fixed and variable
life insurance, long term care, and disability. The product and services are
provided by TFA/WFG and the over 100 other financial institutions with which
TFA/WFG has selling agreements. Through referral relationships, WFG is also
able to provide estate planning documents, and business & personal property
solutions.
Other Services
The Company provides other traditional commercial and consumer banking services,
including cash management products for businesses, online banking, safe deposit
services, debit and automated teller machine (“ATM”) cards, automated
clearing house (“ACH”) transactions, cashier’s checks, notary
services and others. The Company is a member of numerous ATM networks and utilizes
an outside processor for the processing of these automated transactions. The
Company has an agreement with MoneyPass, an ATM provider, which permits Company
customers to use MoneyPass ATMs located throughout the country at no charge
to the customer.