Shareholder Report 2017 - Willamette Community …...2018/02/23 · 2017 2016 Willamette Community...

Shareholder Report

2017

Local farmers planting a new crop of hazelnuts

1 Willamette Community Bank 2017 Shareholder Report

“ As our name suggests, Willamette Community Bank was

founded to support the communities in which we operate. „

Letter from the CEO & Board Chair

Daniel J. McDowell President & CEO

Kerry Johnson Board Chair

Dear Shareholders,We’re pleased to state that 2017 was a great year for Willamette Community Bank, and we have a lot to share. With an enhanced image and a new location, we’ve become the second-fastest growing bank in Oregon!

We launched our new website in January to very good reviews. We also unveiled our new branding, complete with a new logo, which is cleaner and brighter and generates greater opportunity in the communities we serve.

Last March, we opened our third branch location in Downtown Salem. We expected the new location to bring new opportunities and were pleasantly surprised with record growth in both loans and deposits, a 23% increase over the prior year. As anticipated, the expenses associated with the new location decreased profitability from 2016, but less than expected, as we saw nearly-offsetting revenue from the strong balance sheet growth. Salem is Oregon’s second-largest banking market in terms of deposits; we expect it to remain a catalyst for growth.

We’re thrilled to report a new member to the Leadership Team. David Frances joined Willamette Community Bank as Chief Credit Officer in July of 2017. David brings more than 30 years of credit experience with other institutions in various roles, including Chief Credit Officer, and enhances our capabilities significantly in this area.

At last year’s annual meeting, we announced a 2% stock dividend to our shareholders. This was the third time in our history that we’ve provided a direct return to our investors. Our stock price also increased substantially during the year, from a low of $8.96 to a high of $11.01 per share.

As our name suggests, Willamette Community Bank was founded to support the communities in which we operate. We remain committed to supporting all the communities we

serve and looking for ways to increase our involvement. We encourage our employees to participate in non-profit boards and volunteer their time for community-oriented events, often during work hours. During 2017, we donated over $22,000 to more than

40 local non-profit entities. We also partner with many of our customers in supporting local causes.

Challenges and opportunities will surely present themselves in 2018. We’re confident that we have the right team in place to capitalize on the opportunities and face the challenges positively on behalf of our employees, customers, and shareholders.

Willamette Community Bank 2017 Shareholder Report 2

3 Performance Highlights

4 Industry Spotlight: No Dinx

5 Donating to a Good Cause

6 Salem Branch Ribbon Cutting

7 Community Sponsorships

9 Testimonial

10 Board of Directors

Willamette Community Bank is a service-focused community bank with a team of caring employees,

passionate about doing what’s right for our customers, for each other, and for the bank.


Net Income (000s)

Net Income $440 $559

Per Common Share DataEarnings per Share — Basic $0.42 $0.54

Book Value $10.97 $10.65

Performance RatiosReturn on Average Assets 0.39% 0.57%

Return on Average Equity 3.89% 5.14%

Balance Sheet (000s)

Loans $92,142 $73,487

Securities $19,506 $12,162

Total Assets $118,886 $98,281

Non-interest-bearing Demand Deposits $29,042 $22,321

Interest-bearing Deposits $78,174 $64,793

Total Deposits $107,216 $87,114

Shareholders’ Equity $11,409 $11,070

Net Interest MarginEarning Asset Yield 4.59% 4.80%

Cost of Funds 0.28% 0.21%

Net Interest Margin 4.33% 4.60%

This report has not been reviewed, or confirmed for accuracy or relevance, by the Federal Deposit Insurance Corporation.

Performance Highlights

2017 2016


Corey Barton, owner of No Dinx (L), & WCB representative Francisco (Frank) Bermúdez Jr. (R)

No Dinx is one of the mid-valley’s oldest and largest screen-printing companies. It was founded in 1989 by two volleyball teammates who wanted to create, brand, and sell volleyball apparel. The high quality of their services quickly propelled them to the national market, offering screen printing, embroidery, design services, banners, signs, and printing — though they’ve continued to prioritize their local community, especially local schools.

Willamette Community Bank works with No Dinx hands-on, striving to understand not just how they look on paper, but who they are and how we can help them achieve their goals and dreams. Over the course of our relationship, No Dinx has doubled its employees and increased its revenue locally and nationally, expanding what it’s able to offer its employees and customers.

“I was really taken by the relationship,” said No Dinx founder Corey Barton. “Frank really took an interest in our business. He’s more than happy to sit down with me, go over our financials, and help me plan for our future growth. Also, he shares great barbecue recipes.”

Industry Spotlight: No Dinx


Last spring, Deputy Erik Douglass of the Marion County Sheriff’s Office approached Willamette Community Bank with a sponsorship opportunity: the kids competing in the Special Olympics of Salem needed new softball equipment. We responded with a donation of $250, glad to support an organization that does so much for our community.

Special Olympics Oregon offers year-round training and competition in Olympic-type sports for children, youth, and adults with intellectual disabilities. In so doing, it provides them with opportunities to build fitness, demonstrate courage, find joy, and participate in their communities.

This project serves the largest disability population in Oregon, and has more than 14,000 participants a year. It’s also continually expanding in an effort to reach every individual with intellectual disabilities who’s qualified to compete.

Willamette Community Bank is proud to support their vision of bringing everyone with intellectual disabilities into the larger society as active, respected, productive citizens.

Donating to a Good Cause

“ This project serves the largest disability population in Oregon, and has more than 14,000 participants a year. „

Willamette Community Bank gives a donation to Deputy Erik Douglass and Special Olympic representatives.


WCB Founding Director and Board Secretary Selma Starns (L) & Salem Mayor Chuck Bennett (R)

Salem Branch Ribbon CuttingOur newest branch opened its doors to Salem in 2016. One year later, we pulled out the big scissors to cut some ribbon.

Our open house event was attended by about 100 guests, including County Commissioner Kevin Cameron, Marion County Chief Administrative Officer John Lattimer, then-CEO Dan Clem of the Salem Chamber of Commerce, and of course Chuck Bennett, Mayor of Salem.

Mayor Bennett welcomed our guests and thanked Willamette Community Bank for its expansion into the Salem community, where our commitment to small business, local decision-making, and personal partnership with our customers will support economic vitality throughout the region.

ABC House

Albany Area Chamber of Commerce

Albany Downtown Association

Albany Millersburg Economic Development Corp

Albany Rotary Club

Albany Optimist Club

Altrusa Club of Albany, OR

Bambinos Oregon – Hoopla

Benton County 4-H Livestock Judging Team

Boys and Girls Club of Albany

Boys and Girls Club of the Greater Santiam

Boy Scouts of America

Bridgeway Recovery Services

Brownsville Chamber of Commerce

Capital City Cycle share

CASA of Linn County

Center for Hope and Safety

Clackamas County Jr. Livestock Auction

East Linn Christian School

Family Tree Relief Nursery

FISH of Albany

Friends of Salem Police

Greater Albany Rotary Club

LINK UP VETS

Linn County Fair and Expo

Linn County Shrine Club

Linn County Youth Livestock Auction

Linn-Benton Community College Foundation

Marion County Service Department: Mid-Valley Rural Conference Sponsorship

Oregon Bankers Association

Oregon Dairy Women

Oregon Ryegrass Grower

Rotary Club of Salem

Salem Area Chamber of Commerce April 2017 Forum

Salem Chamber of Commerce

Salem Leadership Foundation

Salem Multicultural Institute

Soroptimist International of Albany


“ It’s about relationship. I’ve worked with our lender for years. „

— Tim Murphy, Bridgeway Recovery, Salem, OR

After winning a Bocce Tournament, we donated our winnings to Bridgeway

Recovery Services, a nonprofit focused on substance abuse.

Community Sponsorships

South Albany High School

South Willamette Valley Honor Flight

Special Olympics of Oregon – Marion County

Strategic Economic Development Corporation (SEDCOR)

VFW661 – Uniform Display Museum

Willamette Heritage Center – 2017 Sheep to Shawl Program

Women for Agriculture

Zonta Club of Corvallis


Willamette Community Bank has a strong commitment to our community and its youth, so Linn County Fair has always been important to us. In fact, our involvement with the Fair predates the construction of our first branch.

Currently, we sponsor its VIP hospitality area, where sponsors of the Fair can spend the whole evening with their families, relaxing over dinner and drinks while watching the show.

Linn County Fair gives families a chance to come together, enjoy a local reunion all weekend long, and strengthen the glue that unites our communities. The role they play is valuable, and we’re proud to support it.

CASACASA volunteers advocate for children in our court system. Thanks to their care and attention, more than three in five foster kids have a friend in their corner: checking on their medical care, keeping their teachers informed, speaking up in court, visiting them at home, playing together, listening. They stay with these children until they’ve rejoined their family, found a new permanent home, or reached adulthood. For kids in crisis, CASA volunteers make a difference.

Last September, Willamette Community Bank was proud to sponsor a table at the “I am for the Child” luncheon in Lebanon, held at the Samaritan Event Center of Boulder Falls Inn, where we shared a table with keynote speaker Cheslah Barkdoll, CASA advocate. Contributions from events such as these empower CASA to break the cycle of abuse and neglect, providing vulnerable children the support they need to lead happy, healthy lives.

WCB Board Chair Kerry Johnson (L) & Ronda Sherman, Event Coordinator of Linn County Fair and Expo Center (R)

(L–R) Joan Reukauf, Robert Moore, Cheslah Barkdoll (CASA Advocate), Trina Henderson, Kristi Wagner and Teri Weller

Linn County Fair


“ Willamette Community Bank makes local decisions, and they have the perspective to

understand agriculture. „ — Bryan Webber, Bryan Webber Farms, Inc., Albany, OR

Bryan & Kym Webber at Bryan Webber Farms, Inc.


Kent HickamFounding DirectorFormer Albany City

Councilor

Bryan WebberFounding Director

President of Bryan Webber Farms, Inc.

Daniel McDowellDirector

National & community banking experience, 28 years

Kerry JohnsonFounding Director, Chair

Business Manager for Douglas M. Johnson, DMD

Selma StarnsFounding Director, Secretary

Former Partner of Bartley & Starns, CPAs

Tim McQuearyDirector, Vice Chair

ATI Wah Chang Department Manager for 37 years

John JenksDirector

Joined family business Jenks Hatchery in 1984

Joe LeblancDirector

Les Schwab Oregon Area Manager for 37 years

Tom OrdemanFounding Director

Operates Fisher’s Funeral Home, a fifth-generation family business

James GreenDirector

SVP, CFO, Board Secretary of Epic Aviation for 20 years

“ At Willamette Community Bank, we want to be part of the fabric of the communities we serve. „

— Kerry Johnson, Board Chair

Board of Directors

Albany Branch333 Lyon Street SE Albany, OR 97321 541.926.9000

Lebanon Branch1495 South Main Lebanon, OR 97355 541.258.7416

Salem Branch315 Commercial Street SE Suite 110 Salem, OR 97301 503.468.5558

willamettecommunitybank.com

The Willamette Community Bank—Audit of Financial Statement for 2017 can be found at willamettecommunitybank.com.

For a printed copy, please contact our Albany Branch.

“ Willamette Community Bank goes the extra mile to make sure everything

is good for us. „ — Peggy Young, CFP, Inc., Salem, OR

Shareholder Report 2017 - Willamette Community …...2018/02/23 · 2017 2016 Willamette Community...

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Transcript of Shareholder Report 2017 - Willamette Community …...2018/02/23 · 2017 2016 Willamette Community...