washington business
story. In the fall of 2009, the bank was struggling and many
place to invest their funds,” said Jim Pishue, executive
in the industry were concerned it would fail.
director of the Washington Bankers Association.
CEO Greg Seibly said the bank wasn’t a subprime
There’s a host of factors here that build confidence for
lender, but it did lend to a lot of residential contractors.
investors including the state’s proximity to and trade with
And when the real estate market went downhill, so did
Asia, the presence of big name companies such as Boeing
the bank’s finances. The bank’s losses peaked in the third
and Microsoft and a near continuous migration of people
quarter of that year at $459 million.
into the state.
The FDIC had served the bank with a cease
and desist order mandating that the bank increase
its capital and reduce the amount of its bad loans.
The bank’s leadership fought to turn the
company around, raising $730 million in new
capital and zeroing in on a business model
centered on competitive products and quality
—Tom Hosea, the Western region government relations director for KeyBank
customer service.
Seibly also tightened up the banks expenses,
prioritizing projects and cutting back on travel. The
“We believe in the Pacific Northwest,” said GrescovSterling Financial Corporation — the bank’s holding comich, with Banner Bank. “The demographics here play out
pany — posted its first quarter of profit, after nine quarters
very well.”
of losses, this past summer.
“We’re creating a financial utility,” Seibly said. “We don’t
the credit market
want to be glamorous, we just want to be predictable and
How the upheaval in the banking industry affects consumthere for our customers and shareholders.”
ers or small business owners largely depends on who you
are and what you need.
time for growth
Commercial banks are returning to their traditional
When banks fail, the FDIC seeks out healthier banks to
roles: Providing operating lines of credit and financing the
take them over. And the closures of the past three years
growth of businesses, said Tom Hosea, Western region govcreated significant opportunities to grow for banks with
ernment relations director for KeyBank.
means to do so.
“That ’s the historic bread and butter of banks,”
In less than two years, Tacoma-based Columbia Bank
Hosea said.
has acquired the assets and branches of five Washington
Bankers are focused on the cash flow of businesses lookbanks, extending its reach into eastern Oregon, Eastern
ing for loans. Collateral is less appealing. And Hosea says if
Washington, and from Seattle to Bellingham.
your request is real estate dependent, getting credit is going
CEO Melanie Dressel credits a conservative balance
to be more complicated