Peoples Bank Celebrates 100 Years of Business

Peoples Bank Celebrates 100 Years of Business

Anyone who has taken a trip through the heart of Lynden knows it’s a town that values its history and cherishes its roots. So, it’s no surprise that when hometown institution Peoples Bank reached its 100th anniversary, the community took notice. The bank has always prioritized its commitment to the communities it serves. Its dedication to strong fiscal responsibility has allowed it to grow and flourish over the years, including through challenging times from the Great Depression to 2008’s global recession, and more recently, the coronavirus pandemic.

Lisa Hefter has been with Peoples for 28 years and has worked her way from teller to Chief Operating Of-ficer. Photo courtesy Peoples Bank

Peoples Bank executive Lisa Hefter has been with the bank for 28 years. “I grew up in Lynden and went to Lynden High School,” she says. “My parents banked at Peoples, and I started as a teller here in 1992, about six months after I graduated from Central Washington University.” Hefter then worked in various roles within the bank before being promoted to Chief Financial Officer in 2009. A decade later, she was promoted to Chief Administrative & Risk Officer, and she assumed the role of Chief Operating Officer earlier this year. In October 2020, Hefter was elected to the Board of Directors of Peoples Bank and Peoples Bancorp. This kind of career longevity is not uncommon at Peoples Bank. In fact, nearly 20 employees have worked for Peoples Bank for three decades or longer.

“Like Peoples Bank, many of the country’s community banks actually started by community members coming together and establishing institutions that could respond better to the needs of local families and businesses,” explains Hefter. “Back in 1921, a group of Lynden residents established the Peoples State Bank for this same reason. We changed our name to Peoples Bank in 1996, and today our 23 branches serve customers in Whatcom, Skagit, Snohomish, Island, King, and Chelan counties.”

Lynden Mayor Scott Korthuis proclaimed August 7th Peoples Bank Day in Lynden. Photo courtesy Peoples Bank

The bank’s longevity and its sense of tradition also extend to its family leadership. “Irwin LeCocq, Sr., the grandfather of our CEO Charles LeCocq, bought a controlling interest in the bank in 1938. Charles is the third generation of his family leading the bank, and now his son Ryan also works here,” says Hefter. “Our longevity means we’ve also been fortunate to serve multiple generations of local businesses and customers. We have customers whose grandchildren have accounts with us today. It’s gratifying to be a part of the community for so long.”

The Lynden Pioneer Museum unveiled a new Peoples Bank exhibit showcasing its historical memorabilia. Photo courtesy Peoples Bank

To commemorate the milestone, Peoples Bank partnered with the Lynden Pioneer Museum and KAFE Radio to host a community celebration. Leading the festivities, Lynden Mayor Scott Korthuis proclaimed August 7th “Peoples Bank Day.” The Lynden Pioneer Museum, which unveiled a new Peoples Bank exhibit, offered free admission. Edaleen Dairy gave out free scoops of a special ice cream flavor—Chocolate Dipped Raspberry Ripple—created especially for Peoples Bank Day.

“Even though it was a rainy day—the first measurable rainfall we’ve had in nearly two months—we ended up serving over 300 hotdogs, and everyone had a great time,” said Will Butela, a member of the Peoples Bank marketing department who helped organize the event.

Founded in 1921 as Peoples State Bank, Whatcom County’s longest running financial institution has been headquartered in Bellingham since 2008. Photo courtesy Peoples Bank

Although the hot dogs and ice cream certainly drew attendees, Butela was also glad to see the community take a moment to think about its history. “You can’t really think about Peoples Bank without thinking about its deep connection with the Lynden community,” said Butela.

As the bank moves forward, it’s bringing all of that history along with it. “One thing that is so compelling to me is our culture of commitment. We’re invested in our communities because we live and work in them, and we want to make them better places,” says Hefter.

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With new W. Hartford branch, PeoplesBank aims to boost CT deposit market share, business loan portfolio

Surrounded by posh restaurants, artisan shops and the foot traffic they attract to West Hartford Center, the new LaSalle Road location for Tom Senecal’s company is perfect, he said.

Soon, he hopes, remote workers and friends will gather there to grab a cup of coffee, work and hang out.

Senecal doesn’t own a cafe; he’s president and CEO of Massachusetts-based PeoplesBank.

PeoplesBank — not to be confused with Bridgeport-based People’s United Bank, which is in the process of being acquired by New York’s M&T Bank — is expanding its retail business in Connecticut with a new banking center branch in West Hartford that will include bells and whistles like interactive ATMs (or ITMs) that connect to a live teller, expanded banking hours and a lobby that doubles as a community gathering space.

When the West Hartford branch opens at the end of this month, it will serve as PeoplesBank’s Connecticut headquarters and a benchmark in the $3.6 billion financial institution’s expansion of its retail business in the Constitution State.

As is the case with other mid-sized lenders, Senecal said he sees recent local bank M&A activity as an opportunity to grab up customers who want a bank that’s small enough to provide personalized service, but with enough capital to handle anything they need.

“We’re pretty nimble, but we’re of enough size where we can handle most all transactions, and we have the cash management products to do it,” Senecal said. “I see us not only being able to compete, but to excel, because of the technology we have.”

Deposit growth

PeoplesBank first entered the Connecticut retail banking market in 2018, when it acquired the branches and $275 million in assets from The First National Bank of Suffield. But even before that $60 million deal, the bank already had a strong commercial footprint in the state — about 60% of its commercial loan portfolio is with Connecticut-based companies, Senecal said.

Image HBJ PHOTO | SEAN TEEHAN A drive-up interactive teller machine (ITM) outside PeoplesBank’s new branch in West Hartford.

While the Suffield acquisition brought PeoplesBank into Connecticut’s retail banking market, Senecal said he sees organic growth — like opening the West Hartford branch — as the motor that will really drive expansion here.

“If you take [the Suffield acquisition] out of the equation, all of our growth has been organic,” Senecal said. “It has all come from word of mouth, opening a branch, and growing our business model from the ground up from that location.”

PeoplesBank currently has $300 million in Connecticut deposits, which is 29% higher than when it entered the retail banking market here in 2018, the bank said.

By comparison, Bank of America, the deposit market share leader in Connecticut has $25.1 billion in local deposits. As of Oct. 2020, PeoplesBank ranked No. 42 in Connecticut deposit market share, with $278 million in deposits, according to Federal Deposit Insurance Corp. data.

The West Hartford branch will be the bank’s fourth branch in the state — other locations are in Suffield, West Suffield and Granby. Once the new branch is up and running, PeoplesBank will have 20 full-time employees based in Connecticut.

Over the next four years the bank is planning to further grow in the state, focusing on communities within the Greater Hartford area between Hartford and the Massachusetts border, Senecal said.

Market disruption

Part of the desire to grow PeoplesBank’s presence in Connecticut stems from recent disruptions in the market, including significant M&A activity that has other mid-sized banks looking at growth opportunities in the state.

One recent deal was doubly fortuitous.

M&T Bank’s pending purchase of People’s United will not only knock out a highly-recognizable competitor in Connecticut but also eliminate branding confusion for PeoplesBank, which is not affiliated with People’s United, Senecal said. Further, the merger — which will create a $200 billion financial institution — comes less than three years after People’s United bought out another local competitor, Farmington Bank, and absorbed its customers.

“I think that disruption creates opportunities, and it creates opportunities for people to start looking for banking relationships that are going to be consistent, and are going to be around for a while,” Senecal said.

Mergers have reduced retail customers’ options to bank with smaller community and regional banks, said Aleda De Maria, PeoplesBank’s executive vice president of consumer banking and operations. That puts PeoplesBank in a good position to fill the void and absorb customers looking for a smaller bank.

De Maria said it’s likely that other bank mergers will squeeze out smaller financial institutions in the region over the next few years, and PeoplesBank will focus its expansion on areas where big banking is the only option.

“Connecticut is primed for merger and acquisition territory,” De Maria said. “We’re really looking at ‘where are the markets that are being served less by community or regional banks, and really need us?’ “

New branch offerings

With the layout and services PeoplesBank will offer at its new West Hartford branch, the bank wants to be seen as part of the community, and responsive to customers, Senecal said.

The building sits in a trendy part of town, between Max Burger and Restaurant Bricco. Once up and running, the lobby will contain counter-height tables as well as cafe tables and chairs, where customers and non-customers can gather over coffee from an upscale hot-beverages machine, De Maria said.

The ITMs — one inside the branch’s doors, the other at a drive-up window — will offer live access to a banker until 7 p.m. on weekdays and 2 p.m. on weekends, De Maria said.

“What’s really exciting about this location is it’s really going to be an extension of our corporate headquarters,” De Maria said. “It’s going to be a one-stop shop for all of our customers in the area.”

Rogue Retreat receives $150K check from People’s Bank for Medford housing renovations

MEDFORD, Ore. — Rogue Retreat received a $150,000 grant this week from the People’s Bank of Commerce Foundation, funds that will go toward the organization’s ongoing efforts to transform a Medford motel into housing for vulnerable members of the community.

Rogue Retreat took over the Redwood Inn on N Riverside Drive in March with the help of Oregon’s “Project Turnkey” initiative. According to the organization, they’ll put the funds toward renovations on five of the eventual 47 rooms in the building — starting as housing for people displaced by the Almeda Fire, and eventually becoming transitional housing for the homeless once Almeda survivors are re-homed.

“We can’t thank People’s Bank of Commerce Foundation enough for their amazing generosity. Their desire to help the Rogue Valley rebuild from these fires shows what a business can do to help the greater community. We are honored to partner with People’s Bank of Commerce Foundation to remodel five rooms which will serve our community for many years to come,” said Chad McComas, Rogue Retreat Executive Director.

When the Project Turnkey site is complete, it will have 43 apartments for housing people displaced by the Almeda Fire and four apartments for those in need of skilled nursing care. Rogue Retreat said that renovations remain underway, with 18 suites currently in use and another 14 under construction.

“People’s Bank of Commerce Foundation is very pleased to partner with such an exceptional organization in providing relief for the fire survivors. These 43 apartments will make a significant impact in the ability of those future tenants to continue to recover from the fire and rebuild their lives, right here in the Rogue Valley,” said Julia Beattie, Committee Chair of People’s Bank of Commerce Foundation.

After Rogue Retreat received the Project Turnkey grant to buy the Redwood Inn, it also received a $450,000 grant from the City of Medford toward renovating units, accompanied by a grant from Providence for the recuperative care component.