growing our community...growing banks in oregon. we also posted record-breaking earnings, with a net...

Growing Our Community

2018 Shareholder’s Report

1 Willamette Community Bank 2018 Shareholder’s Report

“ Fifteen years ago, our founders recognized the value of investing

in community: this remains a core value for us today. „

Kerry Johnson Board Chair

Dear fellow shareholders,In 2003, Willamette Community Bank was founded by community leaders who knew the importance of having a local institution to ensure the growth and vitality of the immediate and surrounding areas in which they lived. Now, 15 years later, the Bank has become a resilient partner to the communities of Albany, Lebanon, and Salem.

With the execution of a successful capital raise of $7.1 million in 2018, we saw 25% growth for the full year, making us one of the fastest-growing banks in Oregon. We also posted record-breaking earnings, with a net income of $634,000, up 44% from year end 2017. Growth in net interest income of 24% and non-interest income of 45% further boosted our performance, while loan growth of 14% helped increase our total assets to $148 million. Our strategic effort to grow the bank was unfailing, and the result of that commitment provides us the opportunity to expand our customer focus and cultivate our existing relationships in the year to come.

Fifteen years ago, our founders recognized the value of investing in community: this remains a core value for us today. Not only do we invest in our communities via donations and sponsorships, we also encourage our employees to support causes that matter to them, offering

them paid volunteer days to empower them to do so. Last October, we took this passion one step further, donating over 135 hours of volunteer hours during

Community Bank Week. The impact on our communities was noticed and felt. The impact on us all was unforgettable.

In 2018 we also saw a remarkable improvement in our digital outreach via LinkedIn, Facebook, and

our website. Our campaign to partner with small businesses, “Bank Local, Shop Local,” raised awareness of how much it supports the economic strength of our cities to shop local, and how banking with us helps further that growth.

We thank you for your confidence, and we look forward to working hard in 2019 to create value for our customers and shareholders alike.

Letter from the CEO & Board Chair

Joan Reukauf President & CEO

Willamette Community Bank 2018 Shareholder’s Report 2

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. We pride ourselves in creating uniquely tailored solutions, delivered through

collaborative and empowered employees at all levels.

We are proud of who we are and what we stand for.

Table of Contents

3 Performance Highlights

4 Turner Lumber

5 Giving Back to the Community

7 Sybaris Bistro

8 Celebrating the Retirement of Selma Starns

9 Mid-Valley Commercial Construction

10 Board of Directors & Our Dedicated Team


Net Income (000s)

Balance Sheet (000s)

Net Interest Margin

Performance Ratios

Per Common Share Data

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

Performance Highlights

$440

0.39%

4.59%0.28%

4.33%

3.89%

$0.36

$129,068$104,789 $148,143 $18,749

$10.972017 2017

20172017 2017 2017

2017

2017

2017

$634

0.47%

4.83% 0.34% 4.51%

3.68%

$0.42

$107,216$92,142 $118,886 $11,409

Earnings per Share—Basic

Loans Total Deposits Total Assets Shareholder’s Equity

Book Value

$10.222018 2018

20182018 2018 2018

2018

2018

2018

Return on Average Equity

Cost of Funds

Net Interest Margin

Return on Average Assets

Earning Asset Yield


(L–R) Kerry Johnson, Rod Lucas, and Anthony Thompson at Willamette Community Bank.

Turner Lumber Salem, OR

Rod Lucas’s father founded Turner Lumber in 1966 out of his garage. Today, the family business has two plants, where they remanufacture lumber into specialty parts.

For over 30 years, the Lucas family worked with a national bank—but when Rod tried to fuel their growth with a loan, the service he got after all those years was underwhelming. “It took me six months just to get anyone to respond,” he said. So he approached Willamette Community Bank.

“They had our loan approved and done in two weeks,” Rod said. “It was amazing.”

Turner Lumber is the largest employer in its town, where it works with the city to sponsor community activities, from the school swim team to the parks department. At Willamette Community Bank, we’re proud to serve local businesses like this one.


Oregon Community Bank Week (October 15–19) was started by Governor Kate Brown as a statewide celebration of the positive impact that local banks have on their communities.

But at Willamette Community Bank, we didn’t want to spend the week celebrating ourselves. Rather, we wanted to support the communities we serve—which is why our employees and board members volunteered 135 hours at six nonprofits in Albany, Lebanon, and Salem in addition to donating over $1,000 in cash and goods to five local nonprofits serving youth and at-risk populations.

“Investing in a strong community means more than giving dollars,” said Joan Reukauf, President & CEO of Willamette Community Bank. “We know the importance of giving back, both monetarily and with our hands, bodies, and minds. Volunteering not only has a great impact on our community, but a great impact on our people. Building an environment to support that is one of our top priorities.”

That’s why we’ll continue raising the bar, aiming to increase what we’re able to give to our community year over year. What will 2019 hold, in that regard? Let’s find out.

Giving Back to the Community

“ … we didn’t want to spend the week celebrating ourselves. Rather, we wanted to support the communities we serve „


(L–R) Jasmine Bowman, Sharon Keenon, Shyla Malloy, Trina Henderson, and Kaytie Richmond volunteering during Community Bank Week.

“ We are genuinely grateful for the support Willamette Community Bank has provided over the past seven years. Not every bank goes above

and beyond to support their customers. „— Kris Latimer, Executive Director of the Boys & Girls Clubs of the Greater Santiam

Lebanon, OR


Willamette Community Bank’s Robert R. Moore (far left) and David Frances (far right) visit with Matt and Janel Bennett of Sybaris Bistro.

Sybaris Bistro Albany, OR

For over 17 years, Sybaris Bistro has been serving contemporary northwest foods with a rotating seasonal menu. In fact, they’re the first restaurant in Albany to offer this. “It was a bit of a trick when we started, because people here weren’t used to that,” said co-founder Matt Bennett.

“But we held out, and they really got into it.” Today, Sybaris puts its success to work, raising money for many local causes.

Matt wanted to be a chef since he was 12 years old. He and his wife Janel married in 1998, then opened Sybaris in 2001. At first, they worked with a large national bank, but when their contact there retired, they had to ask themselves why they were still there.

“We said, let’s go somewhere that we know people and they know us,” Matt said. “A place with real people, taking care of real people.” So they made the switch to Willamette Community Bank, where their finances are as local as their offerings. “It fits with how we run our business,” Matt said. “It perfectly meshes with that.”


Selma Starns is a Founding Director of Willamette Community Bank with over 45 years’ experience as a CPA. “Women were not being hired as accountants when I started, so to get an interview, I would just apply with my initials,” Selma said. Nevertheless she went on to become a partner of Bartley & Starns, and later, a senior accountant with Anderson, Searcy, Magedanz & Crowe (now Anderson Group).

Selma is a lifetime member of the American Institute of Certified Public Accountants and of the Oregon Society of Certified Public Accountants. She served on the Corvallis School District budget committee, sat on its board, and served as vice chair. Today she’s an active member of Zonta International, whose mission is to empower women worldwide, and was a founding director of the Zonta Service Foundation of Corvallis. On Selma’s

recommendation, Joan Reukauf—now our Bank’s President and CEO—also joined Zonta, of which we’re a proud sponsor.

With her term on our Board ending in 2019, Selma traveled with Joan to Japan for the Zonta International Convention.

“Japan is just a lovely country,” Selma said. “All the trees were just beautifully green in the hilly areas, just abundant green, and the gardens are full of bright colors.”

After she retires, Selma plans to travel Oregon and spend as much time in her garden as she can. Even so, we’ll miss her.

Celebrating the Retirement of Selma Starns

Selma has been involved in Zonta since 1959 (volunteering in 1967, bottom right), most

recently traveling to Japan (above, left) for the Zonta International Convention.

9 Willamette Community Bank 2018 Shareholder’s ReportFrancisco (Frank) Bermúdez Jr (third from left) on-site with Rick Martin (fourth from left), Jesse Vigil (far right) and the Mid-Valley Commercial Construction team.

Mid-Valley Commercial Construction Salem, OR

Mid-Valley Commercial Construction is a union commercial drywall contractor. Founded locally by Rick Martin in 2015, the company has three partners and works on a variety of contracts, including schools, hospitals and university projects.

“We have a real focus on working with local vendors and customers,” Rick said. “That’s why we wanted to go with Willamette Community Bank.”

There was also another reason. At his previous job, Rick was the CEO of a large contracting company. The business was successful monetarily, but had significant employee turnover. Mid-Valley Commercial Construction is deliberately different. “Our philosophy is to treat people really well, to be honest and respectful, to share our wealth with our employees,” Rick said.

“One of the things about the Bank is, they treat their customers like people, not accounts. That creates loyalty. We have huge loyalty to Willamette Community Bank.”


Top L–R: William Joseph LeBlanc, Kent Hickam,

Bryan Webber, John Jenks, D. Thomas Ordeman, Timothy R. McQueary

Bottom L–R: James E. Green, Kerry Johnson,

Selma I. Starns, Joan Reukauf

ManagementJoan ReukaufPresident, Chief Executive Officer

David FrancesSenior Vice President, Chief Credit Officer

Robert MooreSenior Vice President, Chief Financial Officer

Shelly OrtizVice President, Senior Operations Officer

Jeff MorrisVice President, Compliance Manager

AdministrativeMonica HallVice President, eBanking & Cash Management Officer

Trina HendersonExecutive Administrative Assistant

Vicki CapillaAdministrative Assistant

Melissa MaurerCustomer Service Representative II

Trudy FieldsCustomer Service Representative

David CatlinCustomer Service Representative

Sophia KidwellCustomer Service Representative

Tia KnightCustomer Service Representative

LebanonKathy GiddingsVice President, Relationship Manager

Sharon KeenonLead Teller

Jasmine BowmanCustomer Service Representative

Teri WellerCustomer Service Representative

Board of Directors

Kristi WagnerCompliance Specialist

Chelsey McDonaldOperations Specialist

AlbanySue KalinaVice President, Relationship Manager

Anthony ThompsonVice President, Relationship Manager

John TrueloveVice President, Credit Administration Manager

Monica HydeLoan Operations & Documentation Supervisor

Stephanie SanchezLoan Processor

Crystal TurtonCredit Analyst

Lee McMillanCredit Analyst

Brianna SilacciOperations Supervisor

SalemFrancisco (Frank) Bermúdez JrVice President, Relationship Manager

Stephen HorningVice President, Senior Relationship Manager

Oracio LariosOperations Supervisor

Tammy FreemanCustomer Service Representative

JoElle DrumheiserCustomer Service Representative

Christopher RayRelationship Manager

Larry GoodreauRelationship Manager

Our Dedicated Team

Albany Branch333 Lyon Street SE Albany, OR 97321 541.926.9000

Lebanon Branch1495 South Main Lebanon, OR 97355 541.223.7180

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

willamettecommunitybank.com

The Willamette Community Bank—Audit of Financial Statement for 2018 can be found at willamettecommunitybank.com

For a printed copy, please contact our Albany Branch.

4-H Youth Members

Albany Antiques in the Streets Car Show

Albany Area Chamber of Commerce

Albany Downtown Association

Altrusa International of Albany Oregon

American Legion Post 10 Albany

Bella Vino Gifts

Boys & Girls Club of Albany

Boys & Girls Club of Salem Marion and Polk Counties

Boys & Girls Club of the Greater Santiam

Bridgeway Recovery Services

Brownsville Chamber of Commerce

C.H.A.N.C.E.

CASA Of Linn County

Center for Hope & Safety

Family Tree Relief Nursery

FISH of Albany

Greater Albany Rotary Club

Habitat for Humanity of the Mid-Willamette Valley

Kiwanis Albany

Lebanon Chamber of Commerce

Lebanon Community Hospital Foundation

Lebanon Soup Kitchen

Linn County Fair

Mid-Valley Literacy Center

Mid-Willamette Family YMCA

Mule Deer Foundation

Optimist Club Albany Oregon

Oregon BankPac

Oregon Dairy Women

Oregon Ryegrass Growers Association

Oregon Women for Agriculture

Rotary Club of Salem

Salem Area Chamber of Commerce

Salem Leadership Foundation

Salem Police Foundation

Salvation Army of Marion and Polk Counties

Soroptimist International of Albany Oregon

St Mary’s Soup Kitchen

VFM Marion Post 661

Zonta Club of Corvallis

Community Sponsorships

“ At our restaurant, we say, ‘keep everything local.’ Working

with a local community bank perfectly meshes with that. „

— Matt Bennett, Sybaris Bistro

growing our community...growing banks in oregon. we also posted record-breaking earnings, with a net...

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