A look at Heritage

CHRIS CLOUGH, THE OLYMPIAN

Originally published October 7, 2001

Where they've been

Heritage Bank was established in South Sound in 1927 as Thurston County Federal Savings & Loan.

In the 1970s, the bank opened a branch in Pierce County and changed its named to Heritage Savings Bank.

In 1994, it initiated a growth strategy to expand from traditional savings and loan products to a full-range of services, including commercial banking and changed to a mutual holding company.

In June 1998, acquired North Pacific Bank, with two branches in Pierce County.

The company went public in January 1998 and merged with Central Valley Bank in March 1999.

Where they are

The company now has 18 branches in five counties.

Heritage embarked on Vision 2001 to streamline operations and improve shareholders' return on investment.

Where they're going

Heritage has defined four strategies for growth and CEO Donald Rhodes said they will continue to be the bank's priority. The strategies are:

- Geographic and product expansion.

- Balance sheet transformation and diversification as part of the move from a thrift-style institution to a more commercial bank.

- Development of relationship banking to broaden its customer base in terms of volume and depth services.

- Maintenance of asset quality, which means to continue the bank's attention to high credit standards.

Board of directors

Donald Rhodes, chairman Heritage Financial Corporation

Lynn Brunton, community volunteer

Brian Charneski, president L&E Bottling Co.

Peter Fluetsch, president and CEO of Sunset Air Inc.

Daryl Jensen, vice president of administration for Western Institutional Review Board and former president of Sunset Life Insurance Company

Melvin Lewis, broker and former president of Terril, Lewis and Wilde Insurance Inc.

Jeffery Lyon, president and CEO of Kidder, Matthews and Segner Inc.

H. Edward Odegard, former co-owner of The Valley Athletic Club

James Senna, former president and CEO of Shee Atika Inc.

Philip Weigand, real estate agent with Virgil Adams Real Estate

John Clees, owner Knight Vale & Gregory PLLC, advisor to the board

Executive officers

Donald Rhodes, chairman, president, CEO of Heritage Financial Services, salary of $225,000 for fiscal year 2000 with a bonus of $77,963.

Brian Vance, senior vice president, salary of $138,000 for fiscal year 2000 with a bonus of $42,280.

Edward Cameron, vice president and treasurer

Wendy Gauksheim, vice president and corporate secretary

Gregory Patjens, executive vice president of Heritage Bank, salary of $112,740 for fiscal year 2000 with a bonus of $25,727.

D. Michael Broadhead, president of Central Valley Bank, salary of $113,300 for fiscal year 2000 with a bonus of $12,900.

The Olympian Copyright 2001

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