1st Security has Olympic ambitions

The role and importance of a community bank is not often considered until times of transition. Matt Lessard, president of Edmonds-based Wilcox Construction, banked with a corporate institution for 16 years. He was stunned when his company’s line of credit was abruptly halved due to perceived disuse.

He took his business to Mountlake Terrace-based 1st Security Bank. They immediately restored the line of credit and later even hired Wilcox Construction to remodel the Edmonds branch.

“When times get tough, that’s when you need a local bank because they see you for being more than just numbers. They know you as part of the community,” Lessard said.

This January, 1st Security Bank is expected to expand to new communities, adding four banks to its existing network of seven. Bank of America is reducing its presence on the Olympic Peninsula by selling banks in Hadlock, Port Angeles, Port Townsend and Sequim. 1st Security Bank’s board of directors unanimously decided to acquire all four.

“It wasn’t really on our radar to expand, but the opportunity presented itself and the more we looked at it, the more excited we became,” said Joe Adams, CEO of 1st Security Bank. “We already have a Poulsbo branch and this essentially allows us to create a peninsula banking region with a total of five branches.”

The approximate total for the new locations is $260 million in deposits. According to Adams, deposit amounts at the new branches are similar to a bit higher compared to 1st Security’s existing locations. As of June, 1st Security’s total deposits were approximately $470 million.

With the new Olympic Peninsula cluster, 1st Security can better support staffing. It is easier to cover vacations, sick leave and emergencies. All employees will be retained in the acquisition with a possible increase in overall operations staffing.

“The decision to sell rather than closing those banking centers was made to maintain job opportunities for employees and keep financial centers open in those communities,” said Britney Sheehan, regional media relations manager for Bank of America.

All four of the banks are longtime, community institutions. In 2015, the Port Angeles location celebrated its 50th anniversary. The other three branches opened between 1974-1976. Two of the properties are owned by Bank of America and two are leased spaces.

“1st Security has really demonstrated a strong commitment to serving the community, which was one of the reasons why they were selected,” Sheehan said. “They’re really committed to this market and doing a great job. We’re very supportive of the sale.”

1st Security remains poised for continued growth. According to Adams, the bank’s lending side boasted 20-25 percent annual loan growth in recent years. Staffing has grown from 80 employees in 2011 to 230 this year. Approximately 25 additional positions are expected from the Bank of Amercia acquisition.

“We’ve been pretty steady. We had an excellent amount of capital going into the recession,” Adams said. “More importantly, we didn’t end up with the concentration risks so many other banks had. Some were well outside FDIC (Federal Deposit Insurance Corporation) guidance for commercial real estate and construction lending.”

While online banking is a popular option for many customers, 1st Security has also navigated continued success with brick-and-mortar sites. They opened a new Mill Creek branch in May.

“Online banking, though efficient, is not very warm and friendly. There are many customers who still prefer to actually talk to somebody,” said Melissa Harris, manager at 1st Security’s Mill Creek branch.

Outreach goes beyond dollars and cents. A 1st Security branch manager helped found the annual Poulsbo Kid’s Day in partnership with local fire and police departments. The bank also participates in the Teach the Children to Save program whereby elementary-school children across Snohomish, King, Kitsap and Pierce counties learn banking basics.

“Being Puget Sound-based, we’re very committed to the region even outside of traditional banking needs,” Adams said. “That’s harder to do when you’re based thousands of miles away.”

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Black Press Media operates Sound Publishing, the largest community news organization in Washington State with dailies and community news outlets in Alaska.
Black Press Media concludes transition of ownership

Black Press Media, which operates Sound Publishing, completed its sale Monday (March 25), following the formerly announced corporate restructuring.

Maygen Hetherington, executive director of the Historic Downtown Snohomish Association, laughs during an interview in her office on Thursday, Feb. 15, 2024, in Snohomish, Washington. (Ryan Berry / The Herald)
Maygen Hetherington: tireless advocate for the city of Snohomish

Historic Downtown Snohomish Association receives the Opportunity Lives Here award from Economic Alliance.

FILE - Washington Secretary of State Steve Hobbs poses in front of photos of the 15 people who previously held the office on Nov. 22, 2021, after he was sworn in at the Capitol in Olympia, Wash. Hobbs faces several challengers as he runs for election to the office he was appointed to last fall. (AP Photo/Ted S. Warren, File)
Secretary of State Steve Hobbs: ‘I wanted to serve my country’

Hobbs, a former Lake Stevens senator, is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mark Duffy poses for a photo in his office at the Mountain Pacific Bank headquarters on Wednesday, Feb. 14, 2024 in Everett, Washington. (Annie Barker / The Herald)
Mark Duffy: Building a hometown bank; giving kids an opportunity

Mountain Pacific Bank’s founder is the recipient of the Fluke Award from Economic Alliance Snohomish County.

Barb Tolbert poses for a photo at Silver Scoop Ice Cream on Thursday, Feb. 29, 2024 in Arlington, Washington. (Annie Barker / The Herald)
Barb Tolbert: Former mayor piloted Arlington out of economic brink

Tolbert won the Elson S. Floyd Award, honoring a leader who has “created lasting opportunities” for the underserved.

Photo provided by 
Economic Alliance
Economic Alliance presented one of the Washington Rising Stem Awards to Katie Larios, a senior at Mountlake Terrace High School.
Mountlake Terrace High School senior wins state STEM award

Katie Larios was honored at an Economic Alliance gathering: “A champion for other young women of color in STEM.”

The Westwood Rainier is one of the seven ships in the Westwood line. The ships serve ports in the Pacific Northwest and Northeast Asia. (Photo provided by Swire Shipping)
Westwood Shipping Lines, an Everett mainstay, has new name

The four green-hulled Westwood vessels will keep their names, but the ships will display the Swire Shipping flag.

A Keyport ship docked at Lake Union in Seattle in June 2018. The ship spends most of the year in Alaska harvesting Golden King crab in the Bering Sea. During the summer it ties up for maintenance and repairs at Lake Union. (Keyport LLC)
In crabbers’ turbulent moment, Edmonds seafood processor ‘saved our season’

When a processing plant in Alaska closed, Edmonds-based business Keyport stepped up to solve a “no-win situation.”

Angela Harris, Executive Director of the Port of Edmonds, stands at the port’s marina on Wednesday, Jan. 24, 2024, in Edmonds, Washington. (Ryan Berry / The Herald)
Leadership, love for the Port of Edmonds got exec the job

Shoring up an aging seawall is the first order of business for Angela Harris, the first woman to lead the Edmonds port.

The Cascade Warbirds fly over Naval Station Everett. (Sue Misao / The Herald file)
Bothell High School senior awarded $2,500 to keep on flying

Cascade Warbirds scholarship helps students 16-21 continue flight training and earn a private pilot’s certificate.

Rachel Gardner, the owner of Musicology Co., a new music boutique record store on Thursday, Jan. 18, 2024 in Edmonds, Washington. Musicology Co. will open in February, selling used and new vinyl, CDs and other music-related merchandise. (Olivia Vanni / The Herald)
New Edmonds record shop intends to be a ‘destination for every musician’

Rachel Gardner opened Musicology Co. this month, filling a record store gap in Edmonds.

MyMyToyStore.com owner Tom Harrison at his brick and mortar storefront on Tuesday, Sept. 6, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Burst pipe permanently closes downtown Everett toy store

After a pipe flooded the store, MyMyToystore in downtown Everett closed. Owner Tom Harrison is already on to his next venture.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.