www.bakerboyer.com/index.cfm

With great equipment, clean facilities, a friendly staff, great classes and trainers, and reasonable dues, it’s the best of several clubs we've belonged to. I thought our experience was worth sharing, since there seems to be a common perception that the Bravern, and any business in the complex, is "toast" thanks to their ill-fated opening in the worst economy most can remember. A good number of the people I hear pronouncing it toast have never even been there.

I can't speak to how the complex is doing financially, but I think anyone who has clients, runs a business or works for one can learn from what is happening at the Bravern where many businesses, including the David Barton Gym, really are "trying harder.” It’s a lesson we can all benefit from.

I'm rooting for the complex to make it because the employees who I have met at the David Barton Gym are genuinely nice, hard working people who don’t need to be added to our unemployment lines.

Second, for many members, the attraction of the gym is just good old customer service, a friendly attitude and attention to detail. When an organization gets consistently quality service from a young staff, it's worth noting. And the satisfied customers include a decent-sized group of Baby Boomers.

Finally, this is no time for business as usual; they seem to know that and are constantly trying new approaches to attract and retain their members. Consider this: I recently received an invitation from a Barton member who is Marketing Manager for Gene Juarez Salons and Spa in the Bellevue Galleria, a few blocks from the Bravern. I was invited to their first-ever "Happy Hour for Men's Event" at the salon. For a reasonable price you were offered a haircut, (okay, so that one's pretty easy for me), facial, nail treatment, chair massage, micro-brews, and discounts and freebies from their partners. Partners included a golf supply company, two companies providing men's products, a brewery and the David Barton Gym.

I know it was a big success, even though I didn't go. Why? Because by the time I got around to signing up, it was completely sold out. The joint promotion fits perfectly into the new world of social media. First, it was marketed almost completely by e-mail and Word of Mouth (WOM). Second, it was one of many such partnerships David Barton uses to build a community for its members by bringing them speakers, entertainment and programs that fit their interests.

So give yourself a gift. Take advantage of the six hours of free parking and wander through the Bravern complex. Check out the merchants, see what kinds of deals you can find and note what they are doing to engage you. You might find some approaches you can use with your own customers.

Learn more about Baker Boyer Bank at www.bakerboyer.com/index.cfm.

To read more visit the Walla Walla Union-Bulletin website at union-bulletin.com/stories/2010/7/23/baker-boyer-to-shutter-weston-branch.

To read the entire article, visit the Walla Walla Union Bulletin website at http://union-bulletin.com/stories/2010/05/21/walla-walla-bankers-meet-with-treasury-chief.

For the full release, visit Washington Federal's website at www.firstmutual.com/pressreleases/files/WFSL%203-2010%20Earnings_762.pdf.

The Bank plans to raise money through its shareholders by increasing the numbers of shares from 10 to 250 million. The FDIC must first approve the offering before the Bank can solicit investors. Current CEO, David Straus, says that the new capital could be enough to increase Fortune's asset base from it's existing assets of $118.5 million to more than $4 billion.

To read the full article from the Seattle Times, visit their website at seattletimes.nwsource.com/html/businesstechnology/2011382752_fortunebank19.html.

About Fortune Bank

Fortune Bank was founded in 2006 and is privately held with approximately 300 shareholders and 27 employees.  At December 31, 2009, deposits totaled approximately $103 million and loans totaled approximately $83.6 million.  It had tangible common equity at year-end of $14.8 million.

This press release is not an offer to sell or the solicitation of an offer to buy any securities described in this press release. 

City Bank announced today that it has received a Corrective Action Directive from the Federal Deposit Insurance Corporation (FDIC) giving it until April 10 to raise additional capital through the sale of shares or obligations so that it will be "adequately capitalized."  If that is not possible, the FDIC directed City Bank to accept an offer to be acquired by another depository institution.

The order also repeated restrictions already in place on accepting or renewing brokered deposits, increasing its average total assets, making dividend payments or opening new branches. City Bank has been under a Consent Agreement with the FDIC since June 2009 under which it agreed to a number of limitations. It has taken a number of actions to reduce its non-performing loans, pay down the level of brokered deposits and raise capital.  The Bank is continuing to aggressively reduce non-performing assets and as of February 28, 2010, the Bank has additional signed purchase and sales agreements representing 180 houses totaling approximately $48 million in construction loans.  The Bank has repaid $52 million of brokered deposits and public deposits in January and February, and will repay another $50 million in March.  As of February 26, 2010, the Bank has $247 million of cash and cash equivalents and a $63 million federal income tax refund receivable, which totals $310 million of 90-day liquidity.

President and CEO Martin Heimbigner, who assumed his position in January when founder and CEO Conrad Hanson retired, said City Bank continues to look for ways to bolster its capital levels, aggressively sell non-performing assets and pay down debt.  "We are continuing to talk and meet with investors across the country to discuss a number of financing options.”

Restatement of 2009 Results

City Bank also announced amendments to its previously released unaudited results for the fourth quarter of 2009 and the year ended December 31, 2009. The revised net loss for 2009 totaled $119.50 million, an increase in the loss of $14.89 million from the $104.61 million originally reported on January 29, 2010.

The reasons for the revised net loss were an increase in the provision for loan losses of $16.80 million and an increase in the OREO valuation adjustment charged to expense of $2.33 million. The provision for loan losses increased due to accounting rules that apply when material subsequent events take place before the publication of audited financial statements. These events include the FDIC’s recently completed examination and receipt of updated appraisals on loans and foreclosed real estate which reflected lower collateral values.   Income tax benefits were also adjusted to reflect the effect of the revised pre-tax loss.  See the Exhibit of Selected Financial Information below for further detail on these restatements.

Martin Heimbigner, President and CEO commented, “The distressed residential housing market continues to impact the bulk sale discounted value reflected in the land appraisals that are required to be used under regulatory accounting rules. Due to the distressed values we have recorded for our building lots as required by GAAP, we believe the intrinsic value of the Bank’s land is understated compared to the value of the land with a completed house sold at retail home prices.”

The Bank’s Capital Plan

The Bank has engaged an investment banking firm and is continuing its efforts to raise additional capital.  Our efforts include a strategy to bulk sell assets to real estate investors with a contemporaneous, linked investment in City Bank common stock to recapitalize the Bank.  Mr. Heimbigner commented, “We have written down the carrying value of our real estate assets to a level at which real estate investors may want to buy our assets directly.  As such, we believe that we have an opportunity to raise capital based on the quality of the Bank’s real estate assets and the intrinsic value of the building lots when a completed house is constructed.”

Mr. Heimbigner commented, “We think the Pacific Northwest is going to remain a popular place to live and do business, so we believe the bulk sale of assets to investors with a linked investment in City Bank may have appeal in the longer run," he said. Heimbigner indicated that City Bank’s Tier 1 capital level was 1.8 percent as of December 31.  To fully comply with FDIC Corrective Action Directive, the Tier 1 leverage capital level would need to increase by a minimum of $30 million, based on the planned reduction in the Bank’s asset size to $1 billion by March 31.  Further repayments of brokered deposits are planned to reduce the asset size of the Bank  to $900 million by June 30 and to $800 million by December 31.

“While these are challenging times, our employees have remained fully engaged and our customers have also been supportive,” Heimbigner said.  “Depositors who have their money in FDIC insured accounts remain fully protected.”

 

Roy M. Whitehead, Chairman, President and Chief Executive of Washington Federal commented, "We wish to extend the warmest welcome to the customers and employees of the former Horizon Bank. While Washington Federal is not new to Northwest Washington, the addition of this new customer base and the associated branches will materially increase our prominence there. Branches will open under new ownership tomorrow morning; otherwise, it will be business as usual for all Horizon Bank customers."

Under terms of the Purchase and Assumption agreement with the Federal Deposit Insurance Corporation (FDIC), Washington Federal agreed to an asset discount and FDIC loss sharing on loans. The Company anticipates that this transaction will be accretive to earnings beginning in the 2nd fiscal quarter.

Washington Federal Savings operates 150 offices in Washington, Oregon, Idaho, Utah, Nevada, Arizona, Texas and New Mexico. Established in 1917, the Company provides residential real estate loans, commercial real estate financing, consumer deposit accounts and business banking. On September 30, 2009, the Company reported $12.6 billion in assets, $7.8 billion in deposits and $1.7 billion in stockholders equity.

David Straus, President and CEO of Fortune Bank, said bank customers who avoided becoming highly leveraged during the recent economic downturn will fare well with their banks in 2010 and will be able to take advantage of depressed real estate prices to buy the buildings they occupy.  "Banks have been getting back to the basics in understanding the cash flow of the borrower and being clear about their first source of repayment and their second source of repayment," he told the publication.  Washington Manufacturing Alert is published 24 times a year by Bill Virgin, formerly a business writer at the Seattle Post Intelligencer.  Straus was the only banker quoted in the issue.  To subscribe to an online or print version contact www.manufacturingalert.com.

To read the article, visit the Bulletin's website at: http://union-bulletin.com/stories/2009/12/18/walla-walla-banker-named-woman-of-influence