Whidbey Island Bank draws on local heritage
Bank remains strong in face of regional, national competition
by Dana E. Blozis


Founded by investors who saw a need for a locally owned community bank, Whidbey Island Bank began as a single office in Coupeville in 1961. As a state-chartered, full-service commercial bank, Whidbey Island Bank, a wholly-owned subsidiary of Washington Banking Company (WBCO) has grown to 20 branches, serving individuals and businesses in Whatcom, Skagit, Snohomish, Island and San Juan Counties.
The bank’s latest branch opened in late October on North Bakerview in Bellingham, bringing the number of Bellingham branches to four. According to President and Chief Executive Officer Michal Cann, the bank has experienced a lot of success in Bellingham. Why the new branch on Bakerview near Bellis Fair Mall?
“This is an opportunity to provide banking services to an ‘underbanked’ area,” Cann said.

Slow but steady growth
Whidbey Island Bank’s growth, however, was not always so rapid. In fact, for its first 30 years, while the bank was successful, growth was slow. Upon learning of a possible military base closure on Whidbey Island, the bank made the decision to move to the mainland in the early 1990s, a turning point in the bank’s history. Cann joined Whidbey Island Bank as its executive vice president in 1992. Since that time, the bank has grown from $50 and $60 million in total assets to just under $800 million.
To date, the bank’s growth has been organic. In other words, the bank has grown internally, rather than through the purchase of other banks. Cann attributes the bank’s success to the friendly community service it provides to its customers. In addition, the bank focuses on “needs-based selling,” looking at each individual customer’s needs and then offering financial products and services that meet those needs.
“We offer personalized, customer-focused service,” Cann said. “Our growth has proven that we do that quite well.”
As a commercial bank, Whidbey Island Bank prides itself on helping small businesses to reach their goals. In addition to offering standard commercial loans and a variety of lending and deposit products, the bank provides small business loans, cash management services, investments, life insurance, 401(k) products and individual retirement accounts.
“We offer really strong cash management services,” Cann said. “We help businesses determine how to best use their cash.”

Success secrets
According to Cann, Whidbey Island Bank maintains “a vision of being the best bank around,” and it imparts this philosophy to its customers, shareholders and employees alike. This attitude creates pride within the bank from the board on down and helps to keep the focus on providing exceptional customer service in a people-oriented business. The bank promotes this idea through employee education and community involvement, so the bank’s employees get to personally know their customers. The bank also makes donations to nonprofit organizations in the communities it serves.
The bank has also been successful, Cann said, because it is a locally owned bank and, unlike some of its nationally chartered competitors, all of the bank’s decisions are made here.
“We want to be an independently owned bank,” Cann said.
Cann also said that this local focus is important not only to the board and its more than 300 employees, but is also important to the bank’s customers. He doesn’t feel that the bank is in any danger of being purchased by a larger competitor.
“We believe that by performing really well and being a really strong community bank, we’ll be able to stay independent,” Cann said.

As an employer
Not only does Whidbey Island Bank have a reputation of being a customer-service focused bank, but it also enjoys the reputation of being a good employer. Just ask Phyllis Hawkins, senior vice president of operations administration. Hawkins started at the bank in 1969. When she took her first position as a bookkeeper and proof operator, she expected the bank to be a “stopping point” while her husband was in the service. Hawkins thought the bank would provide her with good experience that she could take elsewhere.
That was more than 36 years ago, and Hawkins remains at the bank, working her way through various positions including bank teller, new accounts, lending, controller and chief financial officer. During her tenure at Whidbey Island Bank, Hawkins has seen a lot of changes in technology and regulations. The products and services, although they have more bells and whistles than they used to, remain the same at their core, Hawkins said.
“I’ve dedicated my working life to Whidbey Island Bank,” Hawkins said. “The people are fantastic. The bank is supportive, and everyone shares their knowledge.”

What’s on the horizon?
Whidbey Island Bank plans to continue its growth and to seek opportunities to expand throughout western Washington, possibly moving south down the I-5 corridor. Cann said the bank may also consider acquiring another bank at some point in the future.
“We are always looking for opportunities to expand the bank’s footprint,” Cann said.