(Photo | Image by 3D Animation Production Company from Pixabay)
Last year at this time, the COVID pandemic was new, and the CARES Act — which established several temporary programs to address the financial devastation caused by the outbreak — was only about five weeks old. Banking professionals were scrambling to make the funding available to their customers, and the world was just beginning to learn how to function within this new way of life.
Fast forward to now, and most surviving businesses have pivoted to be able to successfully operate despite what COVID has thrown at them. Banks have stood at the forefront of economic endurance, and we at Cascade Business News checked in with some of our local financial pros to hear what they had to say.
Question: How is business going a little more than one year into the pandemic?
Answers:
Wendy J. McGrane, Vice President and Business Banking Team Manager, U.S. Bank — Our bankers remain committed to supporting the financial success of our clients and our communities. Most lobbies at our retail advisory centers here in Central Oregon are now open. Credit quality continues to perform better than we had expected. And, we are currently hiring more business bankers to support growth in the business banking sector.
Taylor Thompson, VP, Commercial Banking Team Leader, Columbia Bank — Overall loan demand slowed in 2020 as a result of the downturn. But we have a large footprint and customer base, and many of our customers not directly impacted by the pandemic continued to borrow and invest in growth. Historically, as economies emerge from setbacks, loan demand tends to increase notably as businesses invest in their own recoveries and consumers invest in cars, homes and other purchases they may have delayed. We are seeing that now, and we are well-positioned to meet that demand and grow with our customers in 2021.
Cory J. Allen, Senior VP, Team Leader, Central Oregon Washington Trust Bank — Our success at Washington Trust Bank is dependent upon the health of our local business community, and the pandemic has affected each business differently. The hospitality, entertainment and travel industries were among the hardest hit. But others, including the outdoor recreation and building and landscape industries, generated record sales with high levels of demand persisting to date. We are dedicated to every business that we serve and are seeing positive trends across many sectors, including entertainment, travel and hospitality. Despite the challenges that rocked our business community in 2020, I am optimistic about what the future holds.
Gary O’Connell, Market President, Central Oregon Region, Summit Bank — Business has not slowed down at Summit Bank. The needs of business clients in our community have taken different forms over the last year, but they have not lessened. Business has evolved to a continuing need for traditional business capital combined with an intensive effort on the part of the bank to meet the needs of businesses through the various stimulus and lending programs, namely the Paycheck Protection Program (PPP).
Mike Sventek, Greater Oregon Commercial Market Director, Umpqua Bank — Umpqua was well-positioned to be there for businesses when the pandemic hit. As a result, our relationships with customers and communities are now stronger than they’ve ever been. The investments in technology we made prior to the pandemic have also been pivotal to both engage with and support our customers, and to help them become more efficient and adapt quickly to disruption. Community banks like Umpqua played such an important role this past year, too. So, we’re very optimistic and excited to continue supporting businesses and our communities as we look to recovery and growth.
Question: What has changed since this time last year in terms of business?
Answers:
McGrane — We have invested heavily in digital banking, giving our clients many channels in which to do business with us. Our clients can schedule appointments with us online, which can then be conducted in-person or virtually. Our bankers can co-browse with our clients seeking assistance in navigating our mobile app and online banking. And, we now have a digital signing process available for many of our business customers.
Thompson — The effective rollout of vaccines is the single-biggest difference. That said, Columbia, our clients and businesses across the Northwest adapted to the changes caused by the pandemic. It was impressive to see how quickly and successfully so many businesses made adjustments to weather the pandemic’s challenges.
Allen — It was certainly a year that none of us could have predicted. I can still remember standing in the middle of Bond Street and taking a picture of downtown; it was eerily empty. We were all facing a lot of unknowns and were trying to get a grasp on what COVID-19 was and how it would impact the businesses we serve. While some of that uncertainty persists to this day, I believe we are beginning to see light at the end of the tunnel. We have seen many industries innovate to create new business models to successfully serve customers remotely in ways that may continue well into the future. Additionally, co-working spaces and buildings offering smaller office areas are seeing strong demand as businesses adapt to new employee preferences. Many companies are reflecting on how to manage remote workers long-term and work within this new environment, now that the terms of overhead and cost have changed.
O’Connell — The concerns of business owners have changed across different industries. The need to listen, meet and provide solutions to business owners has never been more critical. In light of all the uncertainties, it takes a great effort to try and understand where certain businesses are going. The vision for their future can be murky at times. We do our best to stay informed, suggest ideas and continue to be a critical partner to the business communities we serve.
Sventek — Last year at this time, the realization of the scale and impact of the pandemic’s disruption was setting in. Many businesses were in survival mode, trying to keep their doors open and workers employed. The Paycheck Protection Program was in full swing, and it was all hands on deck. While there are still challenges and bumps ahead, now there’s a real sense of optimism among our customers — a sense that the worst is behind us and recovery is upon us. They’ve made it through the worst of the most significant disruption to business in decades, and many are poised for growth. Among the many lessons of the last year is also the realization that having a trusted financial partner in your corner is critical to a business’ success through both good and difficult times.
Question: How has the disaster loan process gone? Are you still issuing loans, or has it slowed down now?
Answers:
McGrane — The Paycheck Protection Program (PPP) has been a lifeline for businesses and nonprofits, and our bankers have worked tirelessly to deploy this funding for eligible entities. The program has been extended through May 31, 2021 and funds are still available. U.S. Bank’s PPP application is open to customers and non-customers, and we encourage all interested businesses and nonprofits to consider applying at usbank.com/ppp. Our local team of bankers is available to answer questions and co-browse with applicants as they navigate our digital PPP application.
Thompson — We were an active Paycheck Protection Program lender in 2020 and again early this year, helping our business clients affected by the pandemic. That program is nearing an end later this spring. In the first round that occurred in 2020, we funded nearly $1 billion in loans to more than 4,400 small businesses. So far in the second round, we’ve funded nearly $643 million in loans to over 5,900 businesses.
Allen — As an organization, we funded over 5,000 Paycheck Protection Program (PPP) loans to local businesses, representing more than $1.4 billion in funding injected into our local economies and saving over 100,000 jobs. We believe that our region’s recovery will be driven by small businesses and we are committed to supporting them. Washington Trust Bank continues to accept applications for PPP loans as funds remain available. However, we do believe it is likely that funds will run out before the Small Business Administration’s PPP expires on May 31, 2021.
O’Connell — There are a number of programs. The disaster loan itself, EIDL (Economic Injury Disaster Loan) was administered directly by SBA to businesses. Summit Bank helped direct many clients to EIDL. PPP, on the other hand, was administered directly by banks with authorization from SBA. The process was swift, and Summit Bank concluded its Round 2 of PPP in January of this year. We are now in the stage of working on forgiveness for Round 2. That said, we are hearing that in the marketplace, demand for PPP Round 2 has slowed down, implying that the needs of businesses seeking it have been met.
Sventek — Umpqua is continuing to process loan applications for the Paycheck Protection Program (PPP). As the SBA has recently rolled out other industry-specific direct aid programs like the Shuttered Venues Grant and Restaurant Revitalization Fund, we have seen a fewer number of new applicants for PPP. Our focus is on working with the remaining PPP applicants currently in loan processing to secure the SBA funds before the program ends.
Question: What have been your biggest challenges?
Answers:
McGrane — When the PPP program was first introduced last year, we had many clients ready to apply for funding immediately. U.S. Bank’s application took several days to build for some entity types, and the delay caused a great deal of concern due to a limited amount of funding initially available. Our team quickly learned the rules of the program, helped our clients navigate a brand-new application process and remained engaged with processing applications at all hours including weekends.
The initial PPP funding was depleted with many applications still in process, disappointing many businesses and bankers. I and our team worked closely with our clients to position them for PPP loan approvals if/when funding was replenished. We had to ask our clients to remain patient during a time of significant uncertainty.
In the height of the PPP frenzy and prior to funding being replenished, I and our team had some of the most challenging and rewarding conversations with clients as we all worked toward the same goal. PPP funding was eventually replenished, and funds remained available until the first round of the program closed in August.
Thompson — The social distancing and precautions needed to navigate the pandemic and minimize virus outbreaks created challenges for everyone. We had to quickly figure out how to modify how we work and interact with one another, which resulted in a number of things, like remote work, flex schedules and new technologies being used to keep in touch with our clients. Our teams adapted seamlessly, and we have continued to deliver uninterrupted banking services throughout our footprint while being there for our clients.
Allen — The biggest challenge in terms of lending and the financial world is forecasting. As lenders, we look to past performance to estimate future expectations. But after a turbulent past year and ongoing market uncertainties, it makes it difficult to predict what the future will hold.
O’Connell — The biggest challenge as bankers has been to remain dynamic and adaptive. By dynamic, we mean maintaining our commitment to originating traditional business loans to drive new economic growth. The banking industry has been criticized for curtailing or reducing its lending activity during uncertain times. Summit Bank, while remaining vigilant, did not change its lending policies or practices. At the same time, we were fully engaged in helping many other businesses in more of a defensive posture to merely help them survive and access every available program and solution not only within Summit Bank but also outside of the bank. In many cases, their existence depended on this commitment from us. By adaptive, we think of the original CARES Act document a year ago, which was over 900 pages. In a matter of days, we had to read it, understand it and assemble a quick reaction team of dedicated bankers to help deploy the resources outlined in the Act. That was just the first example of many such iterations we’ve had in the last year.
Sventek — Like most companies, there’s been the need to continuously adapt to uncertainty and disruption. Operationally, we had to pivot quickly to ensure the safety of our associates, especially those on the frontlines of retail, and to continue providing uninterrupted service to our customers. The initial round of the Paycheck Protection Program was also such a pivotal time for banks like Umpqua to step up and support businesses. The sheer magnitude of the need was staggering, and it took tremendous effort across all parts of the bank to mobilize operationally and help as many businesses as possible. In roughly a month, we processed about 14 years’ worth of SBA loans.
Question: What have been your greatest triumphs/silver linings in the past year?
Answers:
McGrane — I chose a career in banking because I love to collaborate with others, to learn about the unique attributes and needs of individuals and businesses and to support clients to achieve their financial goals. I never imagined collaborating and interacting with others almost completely virtually, and I have learned to have engaging, productive and meaningful interactions with colleagues and clients without being physically together.
Our team of bankers has developed even stronger connections with our clients as they have navigated so much change and uncertainty together. Our clients have inspired us with their innovative thinking, grit and resilience.
U.S. Bank furthered its reputation as a strong corporate citizen, supporting our employees, our customers and our communities. In response to adversity caused by the pandemic, George Floyd’s death and the social unrest that followed, U.S. Bank announced a series of initiatives and financial commitments. Most recently, the bank announced Access Commitment, a long-term approach redefining our support of diverse communities and employees, starting with the Black community. Details can be found at usbank.com/diversity.
Thompson — Our Pass it On Project, in which we paid over 370 small businesses more than $600,000 to perform services for people whose lives were adversely impacted by the pandemic or the economic downturn it caused. Services offered ranged from food deliveries and home maintenance to dental work and auto body repair. The bank reached hundreds of small businesses and many more individuals and families in the Northwest. We are proud of our entire team at Columbia, who really stepped up to put this program in place quickly to help our clients and our communities. There are some really awesome stories — you can view them at passitonproject.com.
Allen — Our ability to adapt. Banks in general are not always considered first or fast adopters, but I saw our industry, as a whole, quickly adapt to manage lines of business in a more unique way than we ever have. At Washington Trust, we have dedicated all our attention and resources to ensuring that our customers receive the same level of service as before the pandemic, and have successfully exceeded customer expectations across the Pacific Northwest.
O’Connell — The greatest triumph, without question, has been to be so purpose-driven in helping not just businesses, but names and faces behind the businesses, to continue moving forward at some level. The collaboration with businesses to identify and deliver on a solution to do that, while exhausting, also kept us coming back to try and help the next business. And then the next one. There has never been a victory lap. The work itself has been the reward.
Sventek — Our participation in the Paycheck Protection Program was a pivotal moment for Umpqua and our customers. We mobilized our entire bank almost overnight and pivoted our strategy to fully support small- and mid-size businesses. Umpqua was one of the first banks in the country to have our PPP process ready to accept applications, and we’ve helped nearly 26,000 businesses (customers and non-customers) keep their doors open and people employed. It’s been inspiring to see the dedication of our bankers, especially in the early days of PPP, and the resilience of business owners who have shown such grit and determination in the face of tremendous difficulty and uncertainty.
Question: What are your goals moving forward?
Answers:
McGrane — We seek to become central to the lives of our customers, and to power their potential every day. Our bankers have the tools to embrace this new normal, and we strive to bring the entire bank to our clients in the most convenient channels to meet their unique needs.
Thompson — Our goals continue to focus on helping our clients and communities succeed while building new relationships. Being a community bank means you are there in many ways, which includes not only offering financial solutions, but also helping the businesses and organizations in those communities thrive. That is what we are here to do.
Allen — Our goal moving forward is to bring the Washington Trust brand to Central Oregon as we are opening up a new financial center and have built/are building an amazing and talented team of bankers. By delivering an exceptional customer experience and competitive product offerings, backed by a customer- and employee-first privately held bank, we are confident the Central Oregon market will be well served and welcoming to the Washington Trust brand.
O’Connell — Summit Bank’s goal moving forward is to continue our growth in a sustainable fashion to contribute to the economic health of our communities, not only in Central Oregon but also in our Eugene/Springfield and Portland Metropolitan markets along with our SBA Division. Our business loan and deposit solutions, combined with local underwriting teams of Business Client Advisors, accessibility to our bankers and our pledge to be as responsive as possible, is something we will not lose as we continue to grow. We talk often about not losing the values the marketplace demands that were such key contributors to our growth to this point. Key infrastructure investments, such as in fintech as well as the addition of many new professional colleagues, are ways we will stick with our core values while at the same time progressing and evolving in the areas of technology and the changing commercial banking needs for businesses.
Sventek — We have great momentum right now as we look ahead to economic recovery and growth. Umpqua recently formed our Community & Business Banking division to support businesses between $1 million and $15 million in revenue, and we see tremendous opportunity to support this size of enterprise. The past year has shown just how critical these businesses are to our economy and that they need a strong financial partner who’s accessible, looking out for their best interest and who can also support and grow with their business.
Question: If you could impart one thing to the readership, what would that be?
Answers:
McGrane — Our U.S. Bank team is deeply rooted in Central Oregon, with Bend as our regional headquarters. Our Bend-based leadership team is supported by an advisory board of local business leaders, and our bankers welcome the opportunity to serve you and your businesses. Please find my contact information on Linkedin.com, and I look forward to learning more about your needs.
Thompson — Columbia Bank has been invested in the Bend community for over ten years. In 2019, we moved one of our branches into a new location where we invested in technology and a new way of interacting with our clients. We have a great team of bankers who are focused on establishing long-term relationships with our clients and being a part of helping them achieve their financial goals.
Allen — We are here to help. We’ve met some amazing people and heard some amazing stories about resilience, flexibility and determination during this pandemic. If we’ve learned one thing, it’s how to help one another — and how important that is these days.
O’Connell — This answer is probably one that readers have heard countless times before, but, it is to stay in touch with your banker. Share your plans, collaborate on new ideas and be as transparent as possible. A local business banking relationship built on mutual trust, confidence and understanding is far more likely to persevere through adversity and uncertain times.
Sventek — Umpqua Bank continues to focus on providing relationship banking with commercial bankers who work and live in the markets we serve. Our goal is to support the financial success of businesses in the market by providing products, services and value-added advice. We are currently in the process of expanding our commercial banking team in Bend, as well as in Medford and Roseburg to ensure businesses in these communities have access and support to a team of local bankers they know and trust.
Question: Is there anything else you would like to add?
Answers:
Thompson — We are looking forward to a strong 2021 along with the communities we serve.
O’Connell — Yes. A big thank you. The thank you goes to the CBN readers in Central Oregon who own businesses. We empathize with what you have gone through over the last year. It is difficult enough to run a business without a pandemic. Throw in a pandemic, and it is exponentially harder. What comes to mind are the countless stories of courage filled with laughter, angst, tears and, most of all, the persistence of the business community to drive through whatever comes their way. To play a part in this unprecedented journey with local business has been an honor, and this collective effort by so many to keep going and never give up is nothing short of inspirational. So many challenges lie ahead. Yet, we would like to recognize this unwavering commitment exhibited by businesses and their owners over the last year, and more to the point, we would encourage a recurring column in your publication shining a spotlight on businesses and what they did to overcome adversity. We suspect that you would have no shortage of content.
USBank.com • ColumbiaBank.com • WATrust.com • SBKO.bank • UmpquaBank.com
