Financial Institutions Expand to Pacific Northwest: Mergers, partnerships, digital services grow banking presence.

• Author: Barbour, Tracy
• Position: FINANCE

The Pacific Northwest--which is generally thought to include Washington, Oregon, Idaho and sometimes Montana, Wyoming, and California--has strong historical ties with Alaska. There are considerable similarities between Alaska and these other states, each boasting wide-open spaces, an abundance of natural resources, and a bold, independent spirit.

Over the years, Alaska's financial institutions have taken different approaches to expanding into the Pacific Northwest and tapping into its economy, which is driven by diverse industries, for example. Northrim has made brick-and-mortar investments in the region. First National Hank of Alaska partners with other banks to fund loans. Denali State Bank is expanding its online presence to broaden customers' access to banking services, particularly for those who have relocated to the Pacific Northwest and elsewhere in the Lower 48. And Denali Federal Credit Union is pursuing a merger partnership agreement to further enhance its involvement in the Pacific Northwest market.

Northrim Bank

Northrim Bank, which serves 90 percent of Alaska's population, has about 400 employees and fourteen branches in Anchorage, the Matanuska Valley, Juneau, Fairbanks, Ketchikan, and Sitka. The full-service, community bank has a history of Pacific Northwest expansion. In 2002, Northrim was an original investor in Elliott Cove Capital Management, a Seattle-based capital management firm and insurance agency serving individual investors and financial institutions. Elliott Cove offers investment portfolios, annuities, and other insurance products for individual investors and retirement plans for community businesses, professional firms, and nonprofit organizations.

In 2004, the bank opened Northrim Funding Services as a result of an acquisition. The Bellevue, Washington-based firm provides asset based lending and factoring (purchasing) of accounts receivable to businesses primarily in Alaska, the western United States, and Arizona.

Then in 2006, Northrim Bank made another major investment in the Pacific Northwest. The company assumed a minority ownership interest in Pacific Wealth Advisors, which operates offices in Seattle. Pacific Wealth Advisors has two subsidiaries: Pacific Portfolio Consultants and Pacific Portlolio Trust Company. Pacific Portfolio is an independent wealth management and investment advisor serving high-net-worth individuals and families as well as institutions. "It has over $3.6 billion under management; a third of that is in Alaska, and two thirds is in the Pacific Northwest," says Mike Martin, executive vice president, COO. and general counsel at Northrim Bank. "And they continue to expand."

Several years ago, Pacific Portfolio--of which Northrim owns 24 percent--opened an office in Alaska. The company maintains a team of experienced advisors to serve clients in Alaska as well as the greater Pacific Northwest.

Another example of Northrim's service expansion is Residential Mortgage, one of the largest mortgage...