Banking Business October 2025

Josh Hoines

As we welcome October, I am reminded of the power of community, innovation and resilience—themes that are woven throughout this issue of Banking Business.

This past month, our employees came together for our annual Volunteer Day, closing branches early to serve in their communities across Washington, Oregon and Idaho. From food banks to local parks, their dedication reminds us that banking is about more than financial services— it’s about strengthening the places we call home.

In this issue, we’re honored to spotlight one of our valued customers, the Boys & Girls Club of Emerald Valley, and the incredible impact they are making on young people every day. You’ll also find the first installment of our “Starting a Nonprofit Organization” series—created to guide those with a passion for service through the early steps of turning an idea into action.

We also explore how side hustles are helping individuals achieve new levels of success and financial independence, and we offer timely guidance on protecting your home network in an era where security is more important than ever.

I hope the stories in this issue leave you inspired, whether by the innovation of entrepreneurs, the dedication of community organizations or the everyday commitment of our employees and customers.

As always, thank you for reading Banking Business and for choosing us as your banking partner.

Sincerely,

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Bryan McDonald CEO

Bryan McDonald is president and chief executive officer at Heritage Bank. Bryan joined Heritage Bank in 2014 as executive vice president, chief lending officer. He has more than 20 years of managerial experience in sales, credit, operations, commercial banking and residential real estate. At Whidbey Island Bank, he served as president and chief executive officer from 2012-2014. He currently serves on the board of the Washington Bankers Association.

IMPORTANT REMINDER

Commercial customers have 1 business day to notify us of an unauthorized business-to-business (CCD) ACH transaction on their account.

We encourage you to monitor your accounts regularly. If you spot or suspect fraudulent activity, contact us at 800.455.6126 immediately.

“If we give kids what they need in these formative years, our community is ultimately going to be better because we’re going to have fully equipped adults, once they reach that point, to be part of our community because we’re giving them the meals, the mentorship, the life-changing programs that they need to learn.”

Shelly Ivey, Executive Director, BGCEV

Heritage Customer Offers Place Where Youth Feel Seen, Supported & Inspired

BY JOHN STEARNS

The Boys & Girls Clubs of Emerald Valley (BGCEV) is a gem for youth in and around Eugene, Oregon, as demonstrated in numbers and smiles.

The nonprofit club served 739 individual youth last year in grades one through 12 and averaged about 200 visitors per day across its sites, whether after school or all day during the summer. It also served those kids more than 56,000 nutritious meals and snacks in a partnership with local school districts. Nine out of every 10 club members live in financially strained households, according to the club’s 2024 impact report— proof of its services’ value.

The club works with kids from early in their elementary school years, helping get them to graduation and establish a plan for the future, said Shelly Ivey, executive director of the nonprofit organization that became a Heritage customer when the bank opened its Eugene branch in 2022.

“That’s really what we’re doing, and coming alongside and saying, ‘We care so much about you,’ and giving them the tools they need to succeed, but also making it so fun with youth voice and choice, and giving kids an opportunity to just be themselves when they walk through our doors,” said Ivey, who joined the club in 2020 as site director of its main Eugene clubhouse, then became executive director in April 2024. She has overseen the club’s quadrupling of locations.

The club, part of a national network of Boys & Girls Clubs of America, provides several programs in the arts, education and career development; sports and recreation; and connection—all in safe and supervised spaces.

Thanks to its donors, BGCEV is able to provide programs for youth no matter their families’ ability to pay. Many families have one or two working parents, but the rising cost of living in the Eugene-Springfield area makes it increasingly difficult to make ends meet, Ivey said.

“We are here for families and kids that don’t really have any other choices; they cannot afford a $400-per-month after-school program, as much as they want to, and they want to give that to their child,” she said. “The reality is, a lot of those kids, if they didn’t have the club, they would be left unsupervised at home or having to be placed with an older sibling or relying on a family member and doing the best they can…and so those are the families we’re here for.”

The club offers after-school and summer programs for a fraction of what it costs to provide them, making them affordable.

“We really tried to remove all those financial barriers to keep our costs subsidized for every single kid that walks through our door,” Ivey said.

If they can, families are asked to pay $40 per month, or $60 if multiple kids are enrolled. The club’s cost, however, is about $400 per month per youth.

“That’s why it’s incumbent upon my team, our board of directors and our broader community to help raise these funds so that we can give kids a safe place to be when school is out,” Ivey said.

“That’s the delta; that’s the difference between the $40 we’re asking and the $400 we need to run,” she said. “That’s the work we do and that’s why we go out to the community and we find amazing partners like Heritage Bank to say, ‘This is important for our community. If we give kids what they need in these formative years, our community is ultimately going to be better because we’re going to have fully equipped adults, once they reach that point, to be part of our community because we’re giving them the meals, the mentorship, the lifechanging programs that they need to learn.’”

The BGCEV’s biggest fundraiser is its annual Field of Dreams dinner and auction held on the field at the University of Oregon’s baseball stadium, PK Park. This year’s event, held

August 14, was expected to raise about $300,000, enough to sustain the club’s after-school program for a year, Ivey said. The club, which has a 2025 budget of roughly $1.7 million, has about 45 full- and part-time staff in summer, when programs run from 8 a.m. to 5:30 p.m., and about 30 to 35 staff during the school year, when programs run in the afternoons.

Heather Gabbert, primary contact for BGCEV and its deposit relationship at Heritage, sits on the Field of Dreams event committee and said supporting the club is rewarding in many ways.

“The Boys & Girls Club doesn’t just support kids—it lifts up our entire community,” said Gabbert, vice presidentrelationship banking officer in Eugene. “It’s a place where youth feel seen, supported and inspired. They’re learning how to lead, how to show up for others and how to believe in themselves. Whether it’s through mentoring, school support or just having a safe place to be after class, the club is helping raise a generation that’s more connected, confident and ready to make a difference. The fact that we can help support Shelly and the team at Boys & Girls Club in any way makes our role as a financial partner even more rewarding. We show up with our team to volunteer, we raise funds, and we ask, ‘How can we help support this important work to make a difference for these families in our community.’”

Four locations, more capacity to help

The club’s four Eugene locations are comprised of its main clubhouse on West 22nd Avenue; the Arts & Technology Academy next door; its new Bethel Club site at Clear Lake Community Center on Barger Drive; and its River Road Club site at River Road/El Camino Elementary School on West Hilliard Lane.

The club opened its first Bethel location in 2022 in Bethel School District’s Prairie Mountain School, a program funded with COVID-relief money the district had received and since used, Ivey said. That necessitated additional fundraising to ensure BGCEV could continue operating the Bethel site in perpetuity, plus serve the growing number of youth the club can now accommodate at its new Bethel home in Clear Lake Community Center. The club moved there in July to expand capacity; it can see 130 to 140 kids per day versus 70 to 80 at Prairie Mountain. Ivey hopes to include a full teen center at Clear Lake as a drop-in site for food, mentoring and other needs.

The club is more than extra space. BGCEV partners at Clear Lake with the NAACP, which has offices there; Preschool Promise, which offers preschool programs; Food for Lane County; and Bethel Resource Center. Clear Lake serves as one hub helping families and youth in the Bethel area, Ivey said. The River Road/El Camino Elementary School location is a partnership with Eugene School District 4J, which provides priority enrollment in the club for about 30 kids who need extra support with reading and math and are enrolled in what’s called the BEST Afterschool Program. The site can accommodate about 40 kids total.

Forty-five percent of BGCEV kids identify as youth of color.

“It really is interesting to see how much diversity is in our clubs and we really prioritize trying to hire staff, these development professionals who are also diverse, so that kids can see adults reflective in their life who look and act like them as well,” Ivey said.

Thanks to the 4J and Bethel School District partnership, everyone gets fed, too. After school, it’s a hot supper. In the summer program, youth get breakfast and a hot lunch. Food for Lane County provides two snacks for the summer program.

Gabbert called the club more than a program.

“It’s a game changer for youth and our community,” she said.

“I can still remember the pivotal individuals who shaped my life growing up—the teachers, coaches or neighbors who believed in me when I needed it most. Their support made a lasting impact. That’s why I can only imagine how much a place like the Boys & Girls Club would have meant to me: a whole community of caring adults, programs designed to build confidence and leadership and a safe space to just be a kid. The club is changing lives, one kid at a time.”

Heritage’s Eugene staff have volunteered at the clubhouse on bank-wide volunteer days, fielded a team in the “Family Feud”style game show galas for the club, and the bank annually sponsors Field of Dreams. Staff also have participated in the Eugene Marathon’s Run for a Cause to benefit BGCEV.

Older kids in the club also want to help, especially as mentors to younger ones, Ivey said.

“It’s pretty amazing, once we start forming these relationships with kids in their younger years, they want to be here still; but when they get older, it looks a little bit different,” she continued on page 9

GIVING BACK TOGETHER: VOLUNTEER DAY 2025

Volunteer Day is one of the many ways Heritage Bank invests in our region beyond banking.

Community is at the heart of everything we do. On September 10, we put that value into action during our annual Volunteer Day. Across Washington, Oregon and Idaho, our offices closed at noon so employees could spend the afternoon giving back to the neighborhoods we call home.

Hundreds of team members rolled up their sleeves to support dozens of local nonprofits—packing food boxes at local food banks, beautifying community parks, assisting animal shelters and lending a hand at housing and youth organizations. From Seattle to Spokane, Portland to Boise, the spirit of service was felt across the Northwest.

Volunteer Day is more than a tradition—it’s a reminder that when we come together, we can make a meaningful difference. We are proud of our employees’ dedication, generosity and teamwork in strengthening the communities we serve. Thank you to all who participated and to our nonprofit partners for the vital work they do each day. Together, we are building stronger, more vibrant communities for the future.

“Your participation and support is advocacy in and of itself, and we appreciate your commitment to our partnership.”

- Meg Buckley, Albertina Kerr

TOTAL HOURS VOLUNTEERED

2,112 ORGANIZATIONS SERVED

“WOW!! What an incredible transformation! We can’t thank you enough for bringing your support and muscle to Work Opportunities. Our Everett ‘jungle’ is officially no match for your Volunteer Day crew!”

- Marti Thomas, Work Opportunities

Albertina Kerr Centers • Anacortes Rotary • Arlington Kid’s Kloset • Auburn Food Bank • Blanchet House

• Boys & Girls Clubs of Skagit County

• Boys & Girls Clubs of Snohomish • County • Boys & Girls Clubs of South Puget Sound • Bridging A Gap • Byrd Barr Place • Camano Center • Catholic Community Services • Community Action of Skagit County • Community House on Broadway • Diggin’ Shoreline

• Economic Development Council of San Juan County • Emmanuel Food Pantry • Everett Animal Shelter • Family Education & Support Services • Family Promise of Spokane • Foundation for Edmonds School District • Foundation for Tigard Tualatin Schools • Friends of the Children-Portland • Gifts from the Heart Food Bank • GRuB (GardenRaised Bounty) • Habitat for Humanity in Whatcom County • Humane Society for Southwest Washington • Kelsey Creek Farm • Langley Main Street Association • Linden Post Acute • Looking Glass Community Services • Making A Difference Foundation • Mt. Baker Beekeepers Association • MustLuvBoxers Rescue • North Whidbey Help House • Northwest Organization for Animal Help • One Community One Family • Parkinson’s Wellness Place • Puyallup Valley St. Francis House • REAP Inc. • Rebuilding Together South Sound • Shelton Veterans Village • South Sound Reading Foundation • SouthEast Effective Development • Tacoma/ Pierce County Habitat for Humanity • Thurston County Food Bank • Tualatin Riverkeepers • United Way of Central Washington • Vancouver Downtown Association • Wellness House • Whatcom Humane Society • Whidbey Animals’ Improvement Foundation • Wonderland Child & Family Services • Work Opportunities • YWCA Yakima

STARTING A NONPROFIT ORGANIZATION

This is the first in a two-part series of articles on starting a nonprofit organization. Look for part two in the next issue of Banking Business.

Starting a nonprofit organization is a meaningful and exciting endeavor, but it can be challenging to navigate the legal, structural and operational requirements involved. A nonprofit organization plays a vital role in addressing community needs and fostering positive change, and setting up one involves a structured approach to ensure long-term success.

UNDERSTANDING NONPROFITS

A nonprofit organization is a corporate entity established to serve a public benefit, without any private ownership or shareholders. Unlike for-profit businesses, nonprofits operate solely to advance their mission rather than generate income for founders or organizers. Many nonprofits pursue taxexempt status with the IRS, allowing them to receive taxdeductible donations and avoid federal corporate income tax. There are various types of tax-exempt organizations, with the 501(c)(3) classification being one of the most common. To explore the requirements and benefits of different tax-exempt categories, refer to the IRS’s website (irs.gov).

This checklist will guide you through the essential steps, from defining your mission to securing funding and establishing effective operations. By following these guidelines, you’ll lay a solid foundation for your nonprofit to make a lasting impact.

1. Define your organization’s identity

Before diving into paperwork and logistics, clarify the purpose and identity of your nonprofit to establish a strong foundation for future outreach and strategic growth.

• Select a name that is memorable and reflects your mission.

The U.S. Small Business Administration (SBA) website (sba.gov) provides advice about choosing and registering a business name. Avoid names that could be misleading or imply association with government agencies.

• Write a clear mission statement that explains what your nonprofit aims to accomplish, who it serves and why it matters. Craft a vision statement that outlines your organization’s future goals and long-term aspirations.

• Identify both the group your organization will serve and those who may support you (such as donors, partners or community stakeholders). Knowing your target audience is key for effective outreach, messaging and fundraising.

2. Conduct a needs assessment

Once you’ve clearly identified the community or group your nonprofit will serve, conduct a needs assessment. This will guide you in developing impactful, mission-driven programs that align with the specific needs of your community.

• Define your target audience by determining who will benefit directly from your nonprofit’s activities or services. Consider their shared needs, challenges and concerns.

• Identify key constituents—such as service recipients, beneficiaries, community supporters and other stakeholders—who will interact with or support your nonprofit’s mission.

• Specify your focus area. For example, your organization could assist disadvantaged youth; support low-income families; advocate for crime victims; or serve any other group in need of support, guidance or resources.

3. Build your board of directors

A skilled board of directors will help guide your mission, strategy and operations, strengthening your nonprofit’s governance, decision making and overall impact.

• Designate roles such as president, vice president, secretary and treasurer, and write clear job descriptions for each. Check out the National

Council of Nonprofits website (councilofnonprofits. org) for more information about the roles and responsibilities of board members.

• Look for board members who are passionate about your mission and bring varied expertise, such as finance, marketing or legal knowledge. Board members will shape your organization’s vision, make critical decisions and represent your nonprofit in the community.

• Outline a formal process for electing board members in your bylaws. Look up your state on the National Council of Nonprofits website for more information about your state’s bylaws.

• Equip new board members with key resources such as your bylaws, organizational budget and meeting schedules. This helps board members feel prepared and engaged from the start.

• Depending on the structure of your nonprofit, elect officers from your board members. This team will work closely with you to build a strong foundation and guide the organization’s direction.

4. Establish your nonprofit team

Build a strong team to run your nonprofit, whether through paid staff, volunteers or a combination of both.

• Define specific roles for team members based on their skills and interests, ensuring everyone knows their responsibilities.

• Create an organizational chart to clarify the structure and hierarchy within your team.

• Develop a work plan to outline tasks and timelines to keep your team focused on priorities and deadlines.

• Utilize volunteer committees to involve individuals with special skills such as event planning, fundraising or outreach.

• Even if you’re starting solo, reach out to a few trusted individuals in your network who can lend their expertise or creative ideas to support your mission.

5. Create a budget

Creating a comprehensive budget allows your nonprofit to allocate resources effectively, ensuring stability and supporting long-term growth.

• Estimate operating costs by projecting both current and future expenses including salaries, rent, supplies, taxes, legal fees and maintenance.

• Account for unexpected costs by setting aside a contingency fund to address potential increases in expenses or unforeseen challenges.

• Seek professional input. Consult with accountants, business operations experts or legal advisors to help refine your budget and ensure it aligns with your nonprofit’s financial goals.

Boys & Girls Club, continued from page 5

said. “We offer a robust teen program experience. Instead of Boys & Girls Club, it’s just ‘The Club.’”

Sixth- through 12th-grade youth can participate in Torch Club, BGCEV’s leadership group. Torch Club elects officers, functions independently, does fundraising and gives back to the community, including through tree-planting at parks, helping Food For Lane County prepare snack packs and more. BGCEV staff recently took the Torch Club to Oregon State University for a tour, then traveled to the Oregon Museum of Science & Industry in Portland, in part to expand their horizons beyond Eugene, Ivey said.

BGCEV this fall plans to launch a full workforce program to introduce youth to different career paths, hear guest speakers and get private tours of different manufacturers and businesses in the community.

BGCEV looks different for kids who are in sixth to 12th grade, “but we are still a spot that they love and care about,” Ivey said. “We care about them so much and our mentors are there to support them, whether they come every day or just drop by to say hello.”

It’s work that Heritage is ready to give, according to Ivey. In addition to providing what Ivey called “really wonderful rates” on the club’s certificates of deposit to help the club grow its reserves, Heritage staff volunteer their time at clubs.

“They’ve done cleaning projects inside, they’ve weeded, they’ve raked, they’ve spread bark,” Ivey said. “They’ve made our building look amazing for those kiddos.”

Added Ivey, “I have seen firsthand how Heritage Bank and their amazing team have just been in the community. They are truly about giving back and being part of it.”

She runs into Heritage Bank employees regularly, whether they’re giving back through different nonprofit events, hosting seminars in their branch about how to strengthen one’s nonprofit or helping connect business and nonprofit leaders. It’s all “pretty tremendous to see,” Ivey said.

The same could be said for what Boys & Girls Clubs of Emerald Valley does every day.

ABOUT BGCEV’S RELATIONSHIP

MANAGER: HEATHER GABBERT

Heather has been in banking for more than 15 years. She works with commercial customers, nonprofit organizations and public and private schools to ensure their financial needs are being met. In addition to volunteering at Food for Lane County, Relief Nursery, Parenting Now, Habitat for Humanity and United Way of Lane County, she also serves on the Leadership Eugene Springfield Steering Committee, Eugene Imagination Library Advisory Board, Food for Lane County Programs, Education and Services Committees and Relief Nursery Auxiliary Board. In 2022, Heather was a winner of the 20 under 40 Rising Business Star award.

Managing Cash Reserves

Today’s economic landscape is somewhat uncertain, meaning you must be strategic about where you place your cash reserves. Managing deposits wisely helps you maintain liquidity, earn returns where possible and protect your capital against unforeseen challenges. The key is to optimize how you allocate your cash across operating, reserve and strategic balances.

The main question is where to place the funds. Operating balances should remain highly liquid to cover daily expenses, reserve balances should be positioned for security and accessibility and strategic balances should be invested wisely to generate growth.

Let’s explore how to allocate these funds effectively.

THE IMPORTANCE OF LIQUIDITY

This is about your ability to access cash quickly to meet financial obligations. Having strong liquidity means you can manage day-to-day operations, handle unexpected expenses and seize opportunities as they arise.

High liquidity offers several advantages:

Unexpected events, such as delayed payments from customers or economic downturns, can strain cash flow. Businesses with accessible cash reserves can meet these challenges with confidence.

Taking advantage of opportunities, whether it’s securing supplier discounts, expanding into new markets or investing in innovation. Having available funds means you can act swiftly.

Market fluctuations, interest rate changes and economic shifts can create financial instability. Maintaining liquidity minimizes reliance on credit, reducing exposure to rising interest rates and financial stress.

However, liquidity comes with an opportunity cost. Keeping too much cash in low-yield accounts means missing out on potential earnings. The key is to strike a balance between maintaining liquidity and making your money work for you.

ALLOCATING BUSINESS DEPOSITS EFFECTIVELY

A strategic approach to deposit management involves segmenting cash into three primary categories: operating balances, reserve balances and strategic balances. Each category serves a different purpose and should be placed in appropriate accounts to maximize efficiency and returns.

1. Operating Balances

These cover essential expenses like payroll, rent and supplier payments. The funds should remain highly accessible with:

• Business checking accounts, as these allow immediate access to funds with features like cash flow forecasting and automated payments.

• Interest-bearing checking accounts, which offer a small return on cash while maintaining liquidity.

Best practice: Keep enough in checking accounts for nearterm expenses while allocating excess to higher-yielding accounts.

2. Reserve Balances

These act as a financial cushion for unexpected expenses or revenue disruptions. You should aim to cover three to six months of operating costs with:

• Business savings accounts, which provide liquidity with interest earnings.

• Money market accounts, which offer higher interest rates while maintaining accessibility.

• Short-term certificates of deposit (CD), which provide better interest rates if funds can be set aside for a fixed term.

Best Practice: Maintain a balanced reserve that provides financial stability without tying up too much capital in lowyield accounts.

3. Strategic Balances

These consist of excess funds that can be placed in higheryielding investments for potential growth, such as:

• Treasury bills, which are secure, liquid governmentbacked investments.

• Business investment accounts, such as diversified portfolios that balance risk and returns.

• Laddered CDs, which are staggered maturity CDs provide better yields while ensuring periodic liquidity.

• Commercial money market funds, which involves investing in high-quality short-term securities for accessibility and return.

Best practice: Work with financial professionals to develop an investment strategy aligned with risk tolerance and growth goals.

IMPROVING LIQUIDITY THROUGH SMART FINANCIAL MANAGEMENT

You can optimize cash flow by implementing just-in-time inventory practices to prevent excess stock from tying up funds. Leasing instead of buying equipment and real estate helps preserve liquidity and offers financial flexibility. Additionally, selling or leasing underutilized assets can generate extra cash flow.

Improving payment terms also plays a critical role. Negotiating longer supplier payment terms while accelerating receivables can increase cash availability. You should also leverage banking tools for automating payments, forecasting cash flow and managing working capital more efficiently.

THE ROLE OF A TRUSTED PARTNER

Partnering with a financial institution that understands your business’s financial needs is crucial. Now more than ever, you must be proactive in managing your deposits. Keeping operating balances in accessible accounts, maintaining reserves for stability and investing strategic balances for growth is key to a well-rounded financial strategy.

Our comprehensive solutions will help you improve efficiency, security and cash flow visibility. We can help you accelerate incoming payments through digital tools, lockbox services and remote deposit capture. Our automated disbursement tools, ACH payments and fraud protection measures streamline outgoing transactions while safeguarding against financial risks.

We are here to support you with customized financial solutions. Contact us today to discuss how we can help you manage your business deposits effectively and navigate today’s economic landscape with confidence.

CONTRIBUTOR: RACHAEL JOHNSON

With over 35 years in the banking industry, Rachael has built a reputation for fostering strong, lasting relationships with her customers and the community. She takes pride in providing personalized, tailored solutions to meet their financial needs and ensure long-term success.

Heritage Bellingham Office in Tune with its Northwest Washington Community

BY JOHN STEARNS

Heritage Bank’s commercial banking team in Bellingham, Washington, prides itself on being in harmony with its Whatcom County community, so it seems fitting the group landed the business of a musical instrument company last year.

It didn’t hurt that Seth Nolan, vice president-commercial banking officer and the team member who secured the business, has a background in music and plays guitar in a local band when he’s not working at Heritage.

“It was a really good fit because he understood what they were doing and all of that quite well,” said Bob MacIsaac, senior vice president-commercial banking team leader, whose three-person team also includes Tim Northrop, senior vice president-commercial banking officer.

The instrument maker has an operating line of credit, term financing and a full deposit relationship with Heritage, including treasury management, MacIsaac said. The bank also has financed some recent equipment purchases, plus solar panels for the customer’s facility.

Nolan may be the newest member of the Bellingham team, but he’s shined in the role, said MacIsaac, who hired him nine years ago out of Western Washington University in Bellingham to work as a credit analyst. Nolan worked his way up to senior credit analyst and then commercial banking officer.

Nolan also secured a deal to provide financing for a longtime downtown Bellingham nightclub to buy, renovate and expand a space it had long leased.

“That was a really nice project for us to close on,” MacIsaac said of the deal completed over the spring.

That funding involved a Washington State Small Business Credit Initiative, or SSBCI, loan sponsored through the Washington State Department of Commerce, which provides funding to administer the program for the client. The bank provides a traditional real estate loan, with 9% of it subsidized by the state program.

The SSBCI is designed to increase the flow of capital to underserved and underbanked communities across the state who have been otherwise left out of traditional funding opportunities,

according to the Commerce Department’s website.

“It’s a really great program,” MacIsaac said. “It’s meant to incentivize projects in underserved areas and for underserved clients, with some great benefits to the borrower.”

In addition to the nightclub, Nolan finalized one other SSBCI loan this summer. Nolan also has good experience in SBA financing, including both the 504 and 7(a) programs.

Earlier this year, Nolan closed on construction and permanent financing for a new mini-storage facility comprising 11 buildings and 617 units operated by a large national company. And he’s closing on a deal to build a second facility with the company in Whatcom County, MacIsaac said.

Northrop—who has been in banking for 25 years, which includes about 14 with Whidbey Island Bank before it was acquired by Heritage 11 years ago—recently helped a nonprofit treatment center operating in a rural location to purchase a facility in Bellingham formerly occupied by a convalescent hospital, which is located closer to services and transportation for clients. Heritage also provided funds to help renovate the building, MacIsaac said.

Additionally, Northrop helped a longtime Bellingham client that services medical facilities to finance a large piece of equipment to automate processes and expand capacity, MacIsaac said, noting the equipment also improved energy efficiency.

Northrup also assisted a longtime bank customer with financing for phased development of about 64 single-family homes outside the city, a project done in conjunction with Heritage’s branch staff.

Northrop, in addition to his commercial and industrial lending, is also part of Heritage’s residential speculative lot land development and construction group, covering the region that includes Whatcom County, Skagit County, Whidbey Island in Island County and northern Snohomish County.

That’s a relatively unique program to have in-house, MacIsaac said.

Before Northrop got into banking, he was in the fishing industry, working in processing and then managing a fish co-op continued next page

BUSINESS BY THE NUMBERS IN WHATCOM COUNTY

Major industries: government, health care and social assistance, retail, manufacturing, accommodation and food services

Major employers: PeaceHealth St. Joseph Medical Center, Western Washington University, Bellingham Public Schools, Lummi Nation, City of Bellingham

Annual employment: 93,401

Proximity to the Canadian border creates a significant source of tourism and economic activity, especially for recreation and shopping.

The Port of Bellingham manages a Comprehensive Economic Development Strategy (CEDS) aimed at creating living-wage jobs, fostering economic stability and improving quality of life in the region.

https://cbe.wwu.edu

ABOUT OUR WHATCOM COMMERCIAL TEAM

Combined banker experience: 74 years

Volunteer hours served in 2024: 115

Charitable giving in 2024: $34,640

Top nonprofits: Whatcom Community College Foundation, Sunflower F.U.N.D., Whatcom Skagit Housing, Ameritrust CDC

CONTACT OR VISIT

Bellingham

265 York St.

360.734.7306

NW Avenue

920 W Bakerview Rd.

360.527.9900

Hector Reyna, Area Manager-Branch Banking

Heritage Bellingham Office, continued from previous page

in Bellingham, amassing numerous contacts in that industry.

“As a result, we’ve done a number of commercial fishing vessels out of Bellingham and other marinas as well,” MacIsaac said of financing boats conventionally or through the SBA. “It’s not a huge part of our business, but it’s something that’s a little unique.”

The office also has done some lending for agricultural equipment.

That complements the traditional C&I business, operating lines of credit, equipment financing, owner-occupied real estate and commercial construction, he said.

For his part, MacIsaac, who has 40 years in banking with 27 of those in Bellingham, focuses on C&I business, term financing and lines of credit. He has some large, local nonprofits in his portfolio that he’s helped with operating lines and real estate.

He’s also done several larger commercial construction and multifamily housing projects, in particular for local developers’ projects in downtown Bellingham and the Barkley area in north Bellingham.

“One thing this group has done, we’ve structured a number of deals using interest rate swaps over the years, and that’s been a real differentiator for us from a competitive standpoint,” MacIsaac said. “It’ll lock in a long-term fixed rate for a borrower on a commercial project but also has some advantages for the bank.”

Others on the Bellingham team include credit analysts Erin Baras and Erik Titterness, and loan production assistant Melina Peterson. The entire team works out of Heritage’s downtown location at 265 York St.

Giving time, making connections

Being in tune with their community also includes plenty of volunteering and other involvement by the bankers.

Northrop has been a Bellingham Sunrise Rotary Club member for many years; is on the board for Whatcom-Skagit Housing, a nonprofit that helps families build their own homes; and for the past 18 years has served on the loan committee for Edmondsbased Ameritrust, a Certified Development Company which facilitates SBA 504 loans.

Nolan is involved with a regional chapter of the Risk Management Association helping to plan events. He also graduated from Leadership Whatcom, a nine-month program through the Bellingham Chamber of Commerce.

MacIsaac is on the Whatcom Community College Foundation board, having served as treasurer for several years and is now vice chairman. He was with the Kiwanis Club of Bellingham for many years and served on local chapters of the American Red Cross. He has also helped on the local United Way’s community impact panel.

“We have been in the community for so long. You get to know people in so many different ways,” MacIsaac said, whether that’s through your children’s sports, service clubs, church or serving on boards together.

“We really try and make sure that what they (customers) hear from us is what we deliver on,” he said. “At the end of the day, we’re a community bank, and so we take being involved in the community very seriously. We really try and be visible at community events, too. I think that’s really important, whether it’s a chamber luncheon or some other organization’s function, like charity auctions. We really have a presence at those, and I think our sponsorship dollars reflect that, too.” Bellingham’s a competitive banking market, MacIsaac said, but “our longevity and involvement in the community really helps us in that regard.”

Swipe Smarter A Guide to Business Credit Card Options

When it comes to managing business expenses, the right credit card can make all the difference. From streamlining purchasing and tracking expenses to earning rewards and enhancing cash flow, our business credit cards offer a range of features tailored to different company needs. In this article, we’ll compare three popular options to help you decide which might be the best fit for your business. Whether you’re looking for simplicity, flexibility or maximum rewards, the right choice depends on how your business spends and what you value most.

Offers a competitive annual percentage rate, no annual fee and valuable rewards points that can be redeemed for merchandise, travel and more. It’s an excellent tool for tracking expenses, with detailed account information and transactions available online anytime.

Combines corporate travel and purchasing card programs into a single streamlined payment solution. It integrates transactions into one process, managed by one team, with one invoice.

FEATURES INCLUDE:

Powered by TravelBank, this card was developed exclusively for businesses with up to $150 million in annual revenue. The program combines card, expense and travel management into a single platform.

• Credit limits from $2,500 to $25,000

• Rates ranging from Prime + 6% to Prime + 10%

• No annual fee

• 24/7 online access

• No hidden charges with rebates available for qualifying organizations

• Physical cards or virtual cards are issued with no per card fee

• Receive $100,000 Visa Liability Waiver protection, per instance, from misuse by employees

• Easy integration with accounting and financial systems

• Retrieve data up to the minute of transaction

• Manage and control accounts online in real time

• Multi-tier online user access: administrators, managers and cardholders

• API integrations with common accounting tools like QuickBooks Online, NetSuite and others

• Earn points and use them with airlines, select hotels or for gift cards

• Customized card controls and integrated expense and travel policies included in the platform to help meet your business needs

• Enjoy increased spending power with no personal guarantee

If you’re interested in learning more about our

contact

Successes Of Side Hustles Successes Of Side Hustles

Side hustles have emerged as a popular way for people to earn extra income while pursuing their personal interests or career goals. Often seen to enhance financial stability, they also open opportunities for professional growth and personal fulfillment.

Defining the “side hustle”

It’s a flexible, part-time job that complements a regular full-time role. Unlike a second job, which usually has set hours and specific responsibilities, a side hustle offers more freedom. It’s often pursued during one’s free time, whenever spare hours can be found. Side hustles can encompass a wide variety of activities: from freelancing and consulting to dog walking and selling handmade crafts. For some, a side hustle remains a part-time venture, but for others, it may grow into a full-fledged business.

Why people start side hustles

There are many reasons why people start side hustles, and motivations go beyond just earning extra money. Some launch side hustles to support day-to-day expenses, build up their savings or pay off debt. Others see side hustles as an

opportunity to develop skills, gain experience and explore personal passions in a structured way. Here are some common reasons why people are drawn to side hustles:

• Side hustles can provide a buffer, helping people achieve financial goals like paying off student loans or saving for a significant purchase.

• They offer a chance to expand skills, ranging from technical abilities in digital marketing to practical skills like project management and customer service.

• Side hustlers enjoy the freedom to set their hours and make their own decisions, offering a refreshing change from traditional employment.

Starting a side hustle can be a powerful way to gain financial independence, develop valuable skills and take control of your personal and professional growth.

The benefits of side hustles

Side hustles aren’t just about making more money. They also contribute to personal growth, professional advancement and a sense of purpose. Here’s why side hustles are increasingly becoming a norm:

• They provide a platform for learning new skills. Think communication, creativity or digital know-how, while honing existing talents.

• Extra income from side hustles can alleviate financial stress, help tackle debt and even accelerate progress toward larger financial goals.

• With a side hustle, individuals gain the freedom to work from anywhere, potentially with clients or companies worldwide.

• They often lead to new connections, expanding one’s network and sometimes even opening doors to future career opportunities.

• Many people find fulfillment operating a side hustle, whether through the work itself or the financial and personal goals it enables them to reach.

Embracing a side hustle not only improves financial wellbeing but also enriches personal and professional lives, making it a valuable tool for building a more balanced and fulfilling future.

Side hustles can work for everyone

The beauty of a side hustle lies in its accessibility. Anyone with the right motivation can find a niche that works for them. Regardless of your background, education level, or interests, there’s likely a side hustle that aligns with your skills and passions. For instance, while running a digital marketing agency may seem complex, countless individuals have successfully transitioned into this field through online courses, tutorials and a willingness to learn.

These entrepreneurs often start from scratch, using available resources to build their knowledge and ultimately earn substantial income on the side.

Dubbed the “Side Hustle

Generation,” today’s workforce is increasingly committed to blending traditional employment with entrepreneurial ventures. With the rising cost of living and a growing desire for worklife balance, an increasing number of people are taking control of their careers through

At Heritage, we encourage all our employees to explore their passions. Take Lindsay Kelley, branch services officer, for example. In 2020, she opened her own side hustle, called Scandi Co. Candles. “Candle making keeps me busy on the weekends; it fulfills the creative side of my brain, and I’m not one to sit still on my days off anyway.” Check out her full story—and where to purchase her candles—in our June 2025 issue.

side hustles. In fact, those who operate side hustles often report higher job satisfaction and a greater sense of purpose. This is because working a side hustle not only diversifies their income but also adds variety and interest to their professional lives.

Growth in the modern workplace

Side hustlers tend to display increased loyalty toward employers who support their entrepreneurial endeavors. They appreciate a workplace that recognizes the value of personal growth and encourages employees to pursue their passions outside of regular work hours. This symbiotic relationship benefits both parties, since employers gain motivated, fulfilled employees, while side hustlers enjoy the flexibility and support they need to thrive. Ultimately, the rise of side hustles reflects a broader cultural shift toward greater autonomy and self-expression in the professional realm, allowing everyone to craft a career that truly resonates with them.

Encouraging new ways of working

As side hustles redefine the workplace, businesses can adapt and embrace this entrepreneurial trend. Allowing employees to pursue outside interests can drive innovation, cultivate loyalty and foster a culture of flexibility and inclusion. Organizations that support side hustles are likely to benefit from engaged, passionate employees who bring diverse skills and experiences to their day jobs.

Thinking about starting a side hustle yourself?

Explore different side hustle options that align with your skills and passions, such as freelancing, digital marketing or e-commerce.

Consider how a side hustle can enhance your personal development and provide valuable experience in areas like communication and project management.

Set specific financial goals for your side hustle, whether it’s paying off debt, saving for a major purchase or simply boosting your income.

5 top benefits to Military Members and Families

Military members and their families face one-of-a-kind challenges, such as deployment to conflict zones, overseas assignments, and the constancy of change, all of which make dedicating time to personal finance a challenge.

Luckily, special tax breaks and other benefits unique to service members that may make your financial situation a little easier to manage. From low-cost retirement savings plans to tax-advantaged Roth deposits, here are some exclusive ways for military members and their families to save money. Although certain eligibility criteria may apply, here’s some information to help you decide which options might be a good fit for you.

Follow these five tips to take advantage of potential benefits and simplify your military family’s personal finances.

1: Focus on Retirement Savings

The Thrift Savings Plan (TSP) is a tax-deferred retirement and savings plan sponsored by the Federal government and specific to military members. It’s a defined contribution plan that may help boost your retirement savings and income. You may also have access to a Roth TSP, which acts similarly to a Roth IRA but without income restrictions. By contributing to a Roth TSP, you don’t lower your taxable income now,

but you will be able to withdraw the money tax-free when you enter retirement. Some potential drawbacks include limited investment options, higher contribution limits and no matching funds outside of civil service.

2: Save with High Interest

The Savings Deposit Program allows eligible personnel serving in designated combat zones to deposit up to $10,000 annually and earn 10 percent in annual interest. This can be an effective way to boost your savings for the future. By comparison, it’s not uncommon to find savings accounts at various banking institutions that offer less than one percent in annual interest rates.1

To qualify, however, members must be:

• Currently serving in SDP-eligible combat zones

• Deployed at least 30 consecutive days or 1 day in each of 3 consecutive months

• Actively receiving Hostile Fire Pay

3: Tax-Free In, Tax-Free Out

Saving in a Roth Individual Retirement Account (IRA) may be a good idea if you receive tax-free combat zone pay. This allows you to deposit tax-free income and take tax-free qualified withdrawals in retirement. You can also withdraw contributions to a Roth IRA at any time, without the income taxes or penalties. There are income limits for a Roth IRA and tying up money in retirement funds can also leave you with less money to cover immediate expenses. However, all qualifying withdrawals after the age of 59 1/2 are entirely tax-free with a TSP or IRA.

4: Take Advantage of Education Benefits

The Post-9/11 GI Bill covers the full cost of in-state tuition, up to 36 months, plus housing fees and $1,000 a year to use for books and supplies.

To qualify for the full benefit, veterans must have served at least 36 months of active duty. If you don’t plan on using these benefits yourself, all or part of those 36 months can also be transferred to a spouse or child. Those who served less than 36 months could still receive partial benefits.2

5: Low-Cost Life Insurance

Backed by the Department of Veterans Affairs, the Servicemembers’ Group Life Insurance protects your family with low-cost term life insurance coverage. You may be automatically enrolled in this program if you are an eligible service member. Depending on your status or branch, you may

have other life insurance options available to you as well. If you haven’t already, you’ll want to review your options and determine whether or not your coverage is up-to-date.3

More Ways to Maximize Your Money

Aside from specialized programs and offerings, there are a few things every military family can do to help get or keep their financial standings in order.

Set Goals

Like any mission, success begins with articulating goals you want to pursue. Make sure they’re measurable, attainable, and timely.

Establish a Budget

A budget can serve as the foundation of financial discipline. Setting a weekly or monthly budget can help you control spending impulses that lead to greater debt.

Pay Yourself First

Determine how much money you need to set aside to reach your savings goal, deduct this amount from your paycheck, and budget yourself to live within the limits of what remains.

Establish an Emergency Fund

Uncertainty marks the life of military families, so be sure you have an emergency fund that allows you to be prepared for whatever changes are thrown your way.

Control Your Debt

Indebtedness is one of the enemies of financial independence. Focus your efforts on paying down high-interest debt, like credit cards or personal loans.

As you think through your financial goals, remember that taking action today is your first and most crucial step. Take advantage of all your unique benefits and opportunities so that you and your family can live your best financial life.

1 Defense.gov, 2023, 2 Absher, Jim. “Post-9/11 GI Bill Overview.” Military.com, July 2023, 3 VA.gov, 2023

This Veterans Day, we extend our heartfelt gratitude to all who have served and continue to serve our country. Your courage, dedication and sacrifice make a lasting difference in our communities and beyond. In honor of this day, we’re proud to shine a spotlight on two of our own Heritage Wealth Strategies employees who answered the call to serve, sharing their stories and the impact their military experiences have had on their lives and careers.

Angela Davis has served in the Oregon Army National Guard since March 2007. She originally enlisted in the Signal Corps, the communications and information systems branch, but became a commissioned officer in the Logistics Branch in 2014. She’s served a tour in Iraq (Operation Iraqi Freedom) in 2009 and two tours in Kosovo (Operation Joint Guardian) in 2020 and 2024. She also currently serves at the local level supporting Joint Force Headquarters (JFHQ) in Salem, OR, on shorter term missions. Angela is currently the Plans Officer at JFHQ.

Ralph Kowal joined the U.S. Navy in 1989 to continue his family’s legacy of service, which began with his dad who was stationed on Naval Air Station (NAS) Whidbey Island on a P2V squadron. After boot camp, he attended school in Millington, TN, where he became a Martin-Baker ejection seat mechanic. After that, he received orders to NAS Whidbey Island where he was assigned to the Tactical Electronic Warfare squadron VAQ-130, known as the “Zappers.” VAQ-130 was attached to the U.S.S. John F. Kennedy carrier air wing, where Ralph served two cruises. The first, and most memorable, was December 1990 to September 1991 during operations Desert Shield and Desert Storm. They transited the Suez Canal four times during this cruise and conducted operations in the Red Sea down to the Persian Gulf. Ralph, his shipmates and fellow service members who served in this capacity were awarded both the Southwest Asia and Liberation of Kuwait medals. He was honorably discharged in 1993, and with the enhancements of the Montgomery GI Bill, he continued his education after his service. “My time in the Navy will always be one of my most memorable and cherished accomplishments.” said Ralph.

Broadway, Suite 2170, Portland, OR 97205, (888) 360-0052.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Copyright 2025 FMG Suite.

INDUSTRY PROFILE: Architects & Engineers

AArchitects and engineers practice as sole practitioners or in partnership with other firms, offering services based around the design, planning and construction of buildings, infrastructure and other physical structures. As digital technologies become more sophisticated and accessible, the industry faces both opportunities and challenges in adapting to new tools while maintaining the specialized expertise that clients value.

The Pacific Northwest region, encompassing Idaho, Washington and Oregon, presents distinct advantages including robust federal infrastructure investment, growing suburban markets and a shift toward mixeduse development projects that integrate residential, commercial and recreational spaces.

The main challenge architects and engineers face is the need to evolve with rapidly advancing technology while preserving human expertise and creative problem-solving that define the profession. It’s predicted that artificial intelligence, Building Information Modeling (BIM) and automation will transform many traditional design and engineering processes. However, the profession will need to leverage these tools to enhance rather than replace the strategic thinking, regulatory knowledge and innovative design capabilities that clients require.

The industry is experiencing significant growth, with the global Architecture, Engineering & Construction (AEC) market projected to reach $24.36 billion by 2032, representing a 10.3% compound annual growth rate. Employment in architecture and engineering occupations is projected to grow faster than average, with about 195,000 openings expected annually through 2033.1

Success Characteristics

As technology such as BIM platforms, AI design tools and smart building systems are revolutionizing the industry, employers are seeking professionals with both technical proficiency and the ability to integrate these tools strategically to deliver superior project outcomes.

The industry has adapted to flexible work arrangements, with many firms realizing that remote work and hybrid models can be effective for certain phases of design and engineering work, though collaboration and client interaction remain crucial.

Successful architecture and engineering businesses share these common attributes:

• Strong company culture emphasizing innovation, sustainability and professional development.

• Flexible work arrangements, including remote work options and project-based scheduling.

• Clear career advancement paths with opportunities for specialization.

• Leadership that is technically competent, businesssavvy and actively engaged in industry trends and client relationships.

• Integrated technology platforms, including BIM, project management software and collaborative design tools.

• Specialized expertise in high-demand areas such as sustainable design, smart buildings or resilient infrastructure.

• Understanding of project profitability, value-based billing, resource utilization rates and comprehensive project tracking.

• Strategic partnerships with contractors, consultants and technology providers that enhance service delivery.

• Robust quality control systems and professional liability management.

• Strong financial controls, including project budgeting, cash

flow management and partner compensation structures.

• Ability to leverage government infrastructure funding and sustainability incentives available to support professional services.

• Capacity to attract and retain skilled talent through competitive compensation, professional development and meaningful project work.

Additionally, leading firms produce ongoing streams of content including blog posts, webinars, videos, articles and books that demonstrate their unique approach to solving complex business problems. This content strategy serves multiple purposes: establishing credibility, educating potential clients about industry trends and solutions and creating multiple touchpoints for prospect engagement.

Together, these qualities position firms to stay competitive, deliver exceptional value to clients and adapt to the evolving demands of a dynamic built environment.

Challenges

The architecture and engineering industry faces significant challenges as it navigates technological disruption, economic pressures and evolving client expectations. The increasing complexity of projects, regulatory requirements and sustainability mandates all contribute to new demands on professional expertise.

Specific challenges include:

• Graduating students are finding it harder to obtain entry level jobs, with AI absorbing junior tasks.

• Staff may lack expertise in emerging technologies, such as AI design tools, advanced BIM applications and smart

Resources

American Institute of Architects Washington aiawa.org

American Institute of Architects Oregon aiaoregon.org

American Institute of Architects Idaho aiaidaho.com/about

National Council of Architectural Registration Boards ncarb.org

The American Society of Civil Engineers asce.org

The National Society of Professional Engineers nspe.org

The American Council of Engineering Companies acec.org

building systems. Keeping pace with rapid technological advancement while maintaining core design and engineering competencies is increasingly difficult.

• Economic sensitivity as the industry is closely tied to construction cycles, interest rates and real estate markets, making revenue unpredictable during economic downturns.

• Rising project complexity requiring multidisciplinary expertise that may exceed the capabilities of smaller firms.

• Intense competition from both traditional firms and new technology-enabled service providers.

• Difficulty in succession planning as senior partners approach retirement while younger professionals may lack the business development and client relationship skills needed for leadership.

• Professional liability and insurance costs that continue to rise with project complexity and regulatory requirements.

• Balancing the need for technological investment with maintaining profitability, especially for smaller firms with limited capital.

• Managing client expectations around project timelines and costs while integrating new technologies and sustainable design requirements.

• Regulatory compliance across multiple jurisdictions with varying building codes, environmental standards and professional licensing requirements in different states.

• Increasing firm profitability represents a principal challenge followed closely by managing rising operational costs and negotiating appropriate project fees.

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• Overall economic uncertainty as interest rates, the U.S. dollar and government spending fluctuates over election and economic cycles.

• Rising material costs driven by possible tariffs and supply chain disruptions create significant challenges for project budgeting and profitability. The Pacific Northwest’s dependence on international trade through major ports makes the region particularly susceptible to global supply chain disruptions.

Addressing these challenges requires a strategic balance of innovation, adaptability and sound business planning to ensure long-term resilience and relevance in a rapidly changing industry.

Opportunities

The architecture and engineering industry is experiencing unprecedented opportunities driven by infrastructure investment, sustainability mandates and technological advancement. These factors are creating new markets and service areas for forward-thinking firms.

Key opportunities include:

• Infrastructure Investment and Jobs Act (IIJA) funding creating substantial demand for engineering and design services across transportation, utilities and public facilities.

• Growing emphasis on sustainable and resilient design driven by climate change concerns and regulatory requirements.

• Smart building and Internet of Things (IoT) integration creating new service opportunities in building automation, energy management and occupant experience optimization.

• Aging infrastructure requiring extensive renovation, retrofitting and replacement across the United States.

• Urbanization trends driving demand for mixed-use developments, transit-oriented design and high-density housing solutions.

• Healthcare facility expansion and modernization accelerated by demographic trends and post-pandemic requirements.

• Senior living and assisted care facilities represent a growing market driven by demographic trends and evolving care models. These projects require specialized knowledge of accessibility requirements, healthcare regulations and resident experience design that creates barriers to entry for generalist firms.

• Data center and technology infrastructure growth supporting the digital economy.

• Renewable energy projects, including solar, wind and energy storage facilities, requiring specialized engineering expertise.

• Disaster resilience and climate adaptation projects becoming priority investments for communities and businesses.

• International market opportunities as U.S. firms export expertise in sustainable design, advanced engineering and project management.

• Technology integration services helping clients navigate digital transformation in the built environment.

• Specialized consulting in areas such as building performance optimization, life cycle assessment and regulatory compliance.

• Being able to serve multiple sectors while maintaining expertise in specialized areas. For example, a firm might specialize in sustainable design while serving clients across healthcare, education and commercial markets. This approach provides stability during economic downturns that might affect specific sectors while maintaining the expertise depth that commands premium fees.

• Technology enables firms to serve clients across broader geographic areas, making it easier to target contracts outside the Pacific Northwest.

Firms that proactively align their capabilities with these emerging needs are well-positioned to expand their impact, diversify revenue streams and lead the next era of innovation in the built environment.

Trends impacting the architecture and engineering industry

The architecture and engineering industry is undergoing rapid transformation as new technologies, environmental imperatives and client expectations reshape how projects are designed, delivered and managed. Staying ahead means understanding the key trends that are redefining the profession and identifying new possibilities across the built environment.

Building Information Modeling (BIM) evolution BIM technology continues to evolve beyond basic 3D modeling to become a comprehensive project lifecycle management platform. Advanced BIM applications now integrate realtime data, predictive analytics and automated design optimization. This technology enables better collaboration among project stakeholders, reduces errors and rework and provides valuable insights for facility management throughout a building’s lifecycle.

Artificial intelligence (AI) and machine learning integration

AI is transforming design and engineering processes through generative design algorithms, automated code compliance checking and predictive project analytics. Machine learning applications help optimize building performance, predict maintenance needs and enhance energy efficiency. While

AI augments human capabilities, it requires professionals to develop new skills in data interpretation and technology management.

Sustainable and resilient design focus

Environmental sustainability has become a core requirement rather than an optional feature. Architects and engineers are integrating renewable energy systems, sustainable materials and circular economy principles into their designs. Climate resilience is equally important, with professionals designing buildings and infrastructure to withstand extreme weather events and adapt to changing environmental conditions.

Smart building technologies The integration of IoT sensors, automated systems and data analytics is creating intelligent buildings that optimize energy use, enhance occupant comfort and reduce operational costs. Architects and engineers must understand these technologies to design buildings that can accommodate smart systems and leverage data for improved performance.

Modular and prefabricated construction Modular construction techniques are gaining popularity due to their potential for cost reduction, quality improvement and construction timeline acceleration. This trend requires architects and engineers to adapt their design approaches and understand manufacturing processes and logistics considerations.

Digital twin technology Digital twins create virtual replicas of physical buildings and infrastructure, enabling real-time monitoring, predictive maintenance and performance optimization. This technology is transforming how architects and engineers approach facility management and long-term building performance.

Remote collaboration and digital workflows The shift toward remote and hybrid work models has accelerated the adoption of cloud-based design platforms and virtual collaboration tools. Teams can now work together seamlessly across geographic boundaries, accessing shared models and data in real-time. This trend has expanded talent pools and enabled more flexible project delivery models.

Regulatory technology (RegTech) Automated compliance checking and regulatory technology are streamlining the permitting and approval process. These tools help architects and engineers make sure their designs meet building codes and regulations while reducing the time and cost associated with compliance verification.

3D printing and advanced manufacturing Additive manufacturing is enabling new design possibilities and construction techniques. Architects and engineers are exploring 3D printing for both prototyping and actual construction, particularly for complex geometries and customized building components.

Data-driven design and analytics The availability of building performance data, occupant behavior analytics and environmental monitoring is enabling evidence-based design decisions. Architects and engineers can now optimize designs based on actual performance data rather than theoretical models.

Integrated Project Delivery (IPD) Collaborative project delivery methods are becoming more common, requiring architects and engineers to work more closely with contractors and other stakeholders from project inception. This approach can improve project outcomes but requires new skills in collaboration and risk sharing.

Virtual reality (VR) and augmented reality (AR) VR and AR technologies are enhancing design visualization, client communication and construction coordination. These tools enable stakeholders to experience designs before construction and identify potential issues early in the process.

CONTRIBUTOR: HEATH MCLELLAN

Heath has been with Heritage since 2014. He’s worked in positions specializing in special assets and commercial lending. He currently focuses on owner-occupied real estate, Commercial & Industrial lending, investor real estate, equipment financing and multi-family lending. Heath knows each of his customers is unique and likes to think outside the box when it comes to structuring credit. In his community, Heath serves as a board member for the Emergency Food Network and Gig Harbor Tides Scholarship. He also supports Safe Streets, Tacoma Community House, NEXUS, St. Vincent De Paul, the Fish Food Bank and local youth sports organizations.

Convenience Meets Protection: Shop Without Worry

In today’s world, where speed and security matter more than ever, the humble debit card has become a modern must-have. Linking directly to your checking account, it offers unmatched convenience—without the bulk of cash or the vulnerability of checks. Even better, if you have a debit card through Heritage Bank, you can benefit from Visa’s Zero Liability Policy—a game-changer in financial protection.

Speed & Convenience

• Lightweight & widely accepted: Debit cards eliminate the need to carry cash or a checkbook. No more fumbling for change or writing out checks at the checkout line.

• Instant access to funds: Unlike checks, which may take days to clear and can create budgeting snags, debit card transactions are usually processed immediately.

• Dual-purpose and digital integration: Use the same card at ATMs, in-store or online. Plus, it syncs automatically with your digital banking tools for real-time tracking.

• Modern features: Skip the ATM line with cashback services or tap to pay via Apple Pay or similar secure digital wallet options.

Better Budget Awareness with Less Effort

• Every transaction is logged, making tracking your expenses a breeze, even compared to well-kept check registers.

• Immediate deduction keeps overspending at bay. Since funds are withdrawn instantly, you get a live window on your account balance, perfect for sticking to your budget.

Stronger Security Backed

by Visa’s Zero Liability

Policy

With Visa’s Zero Liability Policy, you won’t be held responsible for unauthorized charges* made with your account or account information. You’re protected if your Visa credit or debit card is lost, stolen or fraudulently used—online or offline.

• Comprehensive protection: Covers most Visa credit and debit cards against unauthorized transactions.

• Timely resolution: Issuers are required to replace funds taken from your account as the result of an unauthorized credit or debit transaction within five business days of notification.

• Peace of mind: Feel secure knowing you’re not liable for fraudulent charges.

• Enjoy the freedom to shop anywhere, anytime, with confidence.

Going Digital is the Future & Safer Too

As digital payments become the norm, checks are increasingly phased out, and cashless setups reduce risks like theft and accounting errors. Unlike cash, electronic transactions offer trace paths and settlement records—though they demand strong cybersecurity, which debit systems continue to bolster.

Sure, cash can help curb overspending and sidestep digital fraud—but it carries its own risks. Loss, theft, or mail interception are real threats—with no effective way to recover your money once it’s gone.

Using a Visa debit card gives you a powerful blend of real-world convenience and digital peace of mind—making it a smarter, safer choice compared to cash or checks.

Fall Into Family Farm Fun

There’s no better way to celebrate the season than by bundling up and heading out to one of the Pacific Northwest’s many family-friendly farms. From pumpkin patches and corn mazes to hayrides and apple orchards, fall in the PNW offers a harvest of activities that bring loved ones together and create lasting memories. Whether you’re craving the crunch of fresh-picked apples, the thrill of getting lost in a corn maze or the simple joy of sipping hot cider under crisp autumn skies, local farms provide the perfect backdrop for seasonal fun.

Carpinito Brothers Pumpkin Patch & Corn Maze – Kent, WA

This farm has it all: a u-pick pumpkin patch where the entrance fee is credited toward your pumpkin purchase; a corn maze created by a GPS-driven tractor planting the corn seeds in exactly the right place, water-powered rubber duck races, a corn pit (yes, a pit full of corn kernels to swim in) and a hay maze and a hay slide. Plus, don’t forget to say hello to all the piglets, rabbits, sheep, cows, goats chickens and other farm friends! carpinito.com/pumpkin-patch-andcorn-maze

Bob’s Corn & Pumpkin Farm –Snohomish, WA

Not only does this farm have a Fall Festival, it opens in mid-August for a Sunflower Experience where you can view over 50 sunflower varieties and pan for gems in a mining sluice. Come mid-September through Halloween and you can choose the perfect pumpkin from four different pumpkin patches, a 12-acre corn maze, two kid’s mazes, hayrides, big slides, a rope maze, a trike track, a sand pit, a farm market and an apple cannon. bobscorn.com

Thomasson

Family Farm –Enumclaw, WA

Featuring the Farmer’s Daughter Market, a collection of 35+ local vendors, this family farm hosts a Little Farmers Summer Camp, Easter egg hunts in the bunny patch (including flashlight hunts at night) and the pumpkin patch for fall festivities. Enjoy life-sized foosball, mega slides, tractor train rides, laser tag, corn maze, wagon rides and more. Learn about dairying in the ice cream parlor, grab a latte, corn on the cob, fudge or kettle corn, and enjoy your visit. thomassonfarm.com

Johnson Farms – Eugene, OR

One of the oldest local farms in Lane County, this family-owned farm dates back to 1915 when horsedrawn wagons carried the product to markets. Known for their specialty frozen berries and Grandma Oma’s original jams, syrups and blackberry honey, fall fun begins with Walt’s Wild Wagon Ride. As the wagon speeds you to the four-acre pumpkin patch, you’re encouraged to load a bucket with mini pumpkins and try to hit as many scarecrows and targets as you can. Then, hit the bungee range to launch more mini pumpkins as far as you can sling them. A game of hide and seek in the corn trail followed by the indoor hay maze in the greenhouse rounds out a fun day at the farm. johnsonfarmseugene.com

Fir Point Farms – Aurora, OR

This farm offers a full deli menu, a country market, farm animals you can feed from cups purchased at the market and a Harvest Festival. Activities include a pumpkin patch, corn maze, hay wagon rides, pumpkin painting, cow trains, bounce houses, a paintball shooting gallery, corn hole toss, giant slide and a nut house for your fall entertainment. firpointfarms.com

Frog Pond Farm – Wilsonville, OR

Built around a deep love for animals and sharing it with families, this working farm is home to more than 80 animals, including two camels. Activities rotate with the seasons and include a bounce park, yard games, guest shows, pumpkin patch and a holiday market with pre-cut Christmas trees, greenery and Santa. Oh, did we mention you can walk a llama? thefrogpondfarm.com

Lowe Family Farmstead –Kuna, ID

Head to this farm before the first frost so you can see the flower field with four acres of flowers, including 20 varieties of sunflowers and four varieties of zinnias. Don’t miss the famous celebrity racing pigs, feed the bees at the Pollination Station, commemorate your baby’s first pumpkin, experience a candy cannon, master a ropes course, mine for precious gems, blast some apples and speed down the potato sack slide. Home to Idaho’s original corn maze, this farm was nominated for America’s Best Corn Maze in 2022. lowefamilyfarmstead.com

Shindig Farms – Nampa, ID

This local farm offers a variety of unique activities other than the pumpkin patch and traditional straw maze. Scare your way through the haunted straw maze, cruise down the 100-foot zipline, hop on the giant slide, bounce around on the giant jump pad, ride the mechanical bull, fly on the swing ride and test your aim with the corn cannon. Visit the farm during Lost in Christmas for a light maze, horse-drawn carriage rides and farm activities themed for the holiday season. shindigfarms.com

JOSH HOINES

Hooked on Kayak Fishing & Fortunate to be Sponsored

This is a fish story, without exaggeration.

I’ve enjoyed fishing since I was a kid taking trips with my family to fish throughout Washington and parts of Canada. Growing up in Washington and fortunate enough to live on Camano Island, I’m lucky to be proximate to amazing fishing grounds, whether Puget Sound or the state’s many lakes and rivers. Sockeye salmon, kokanee, trout—the fish options are as diverse as our gorgeous Northwest scenery.

Grateful for where I live (and a wife, Stephi, who encourages me to indulge my angling passion), I’m also incredibly fortunate to be provided with the best fishing boat and gear any weekend angler could desire—all thanks to being a sponsored team member of Hobie kayaks through my boat dealer, Camano Marine, as well as serving as a pro staff member for Mack’s Lure and Elgin Fishing.

What this means is Camano Marine, a Hobie dealer, provides me the latest model Hobie fishing kayak each year and Mack’s Lure and Elgin Fishing provide my tackle. In return, I tout them through my YouTube videos (youtube.com/@JoshHoines), which detail my Washington trips, showing the on-water action and what was working that day for attracting fish.

I’m not paid by the dealers, but they’re generous enough to provide my great equipment and tackle, and they’re also kind enough to offer items for prizes at various fishing derbies I attend around the state. My videos show clips of me on the water everywhere from the Duwamish River in Seattle to Lake Wenatchee in Central Washington, to Lake Stevens, to Puget Sound.

I basically do the videos for fun; I’m not trying to make money off them. The videos are more of a fishing logbook for me, but by posting them to YouTube, others can watch and perhaps get tips from my experience. I also share trips and tips on the largest kayak fishing group Facebook page in the Pacific Northwest, Kayak Fishing Addicts NW, a site I help administer.

The Facebook page is built for fellow kayak anglers to educate, entertain and inspire other anglers of all skill levels and provide information and techniques for catching steelhead, salmon, bass, trout, sturgeon and many more species.

The social media is what caught Hobie’s eye, with one thing leading to another. I wasn’t searching for anything like this, it just happened.

I had 474 YouTube subscribers as of mid-August, and our Facebook page had 6,500 members.

Camaraderie and the Plastic Navy

On my April 19 video this year, you’ll hear I lost my dear fishing partner and younger brother, Joel, 54, who died suddenly in March. When I became sponsored by Hobie kayaks and because I was getting a new kayak each year, I gave my brother the personal Hobie I owned, creating an instant fishing partner, and we plied many waters together, sharing good times and creating great memories, an extension of our days fishing together as kids.

I’m lucky to have a group of other kayak fishing buddies with whom to enjoy the sport. We often hit area waters before sunrise. The fish always bite best in the mornings and to avoid the afternoon powerboat and personal watercraft traffic that can stir up the water and quell fishing success. We kayak anglers call ourselves the Plastic Navy for our boats’ construction material.

While I love the sport of kayak angling, I also love the fish for eating. I smoke a lot of fish and really enjoy smoked salmon, which I’ll include in chowders, Caesar salads and more. I also have a vacuum sealer and enjoy packaging smoked salmon for my colleagues and providing it for charity auctions. It’s a way for me to help raise money for good causes and give back. That’s an added benefit to the fishing, besides the joy and good health it brings me mentally and physically.

How I began kayak fishing

I first got into kayak fishing in 2015 when I was looking for a traditional fishing boat with an outboard motor. I visited a boat dealer who was a client of mine at a previous bank and he suggested I check out Hobie kayaks. It sounded like my kind of fishing platform because it’s extremely portable. I can go places that I couldn’t go with a boat, but yet still go most places that I could have in a boat. I thought about it for a while, bought one and was immediately hooked.

The kayaks blend performance and convenience (I have a 14-footer that’s easy to store and move by myself). Hobies have a pedal for each foot that you push forward, one leg, then the other, for propulsion. It’s not a crank like on a bike, but a pushing motion. It’s easy but also offers exercise.

I also am fortunate to be equipped with clothing and accessories, including sunglasses, dry suits for cold-weather/ cold-water fishing, life jackets and more. I never kayak fish without a life jacket, even in shallow stream water. I’m a stickler for safety and learned a couple years ago how easily one can get in trouble.

I was kayak fishing in Puget Sound one February, when the air and water temperatures are bone-chilling. I briefly erred in leaning my head out over the side of my kayak, shifting the center of gravity and tipping the boat. It’s OK to have one’s arms over the side as you’re fishing, but I broke the rule of keeping one’s head inside the boat. Fortunately, I had the life jacket and a dry suit on and had previously practiced how to get back in the boat from the water. It was a reminder to always be prepared and use safety gear.

See you on the water!

A HIDDEN ADVANTAGE

Reorganizing Your Business Online Banking Dashboard

When you first set up your business online banking account at Heritage Bank, your dashboard has a set default view. While this setup might seem fine at first glance, it can actually cause unnecessary frustration down the road—especially when trying to reconcile accounts or working with customer service.

One of the biggest challenges comes from the way transactions are displayed. Like most online banking systems, you can select which fields show up first— such as date, description, check number or transaction type. But many businesses don’t realize that different types of fields can be added or removed. Instead, they accept the pre-selected view, which doesn’t always match how customer service teams are trained to read transactions. The result? When questions or issues arise, it can take longer to get clarity because the information isn’t displayed in the same way for both parties.

By reorganizing your dashboard to mirror the view customer service sees, you can simplify troubleshooting and speed up resolution times. For example, making sure the transaction date and posting date appear side by side can help clarify timing issues, while moving check numbers or merchant names higher in the list can make it easier to quickly locate payments.

Taking just a few minutes to customize your view can also help your own team. Accountants, bookkeepers and managers all benefit from having the most relevant—and same—information front and center, rather than buried in columns that require extra clicks or downloads.

If your online banking dashboard still looks the same as the day you opened the account, it might be time to revisit your setup. A small change in organization could save you time, reduce confusion and make managing your business finances much more efficient.

Need help? Stop by your local branch or give your dedicated banker a call. They can walk you through the steps to take to edit your dashboard view.

Josh Hoines is vice president-branch relationship manager at Heritage Bank on Camano Island. He’s worked in the industry since 2007 and joined Heritage in March this year.

CONTRIBUTOR: JESSICA ROBINSON Jessica has 17 years of banking experience collaborating with and identifying opportunities for local businesses, nonprofits and associations. She focuses on their strengths and goals to help them be successful.

THE KEY RISK

Securing home networks

If you or your employees spend some or all of the time working at home and rely on an internet connection, there’s always a risk of being compromised. Here’s now to mitigate that risk.

EMAIL PASSWORD COMPROMISE

Often, the biggest threat comes from simple and honest mistakes, like clicking on a scam email. Everything that enters and exits your home wireless network passes through your router, making it essential to secure it. If your router isn’t protected, others could access your network without your knowledge or use your Wi-Fi for free. Other risks include someone gaining access to your devices or an attacker using them in a denial-of-service attack, where multiple computers are linked together to target another system.

How to protect your business and your team

To improve the security of your home network and protect your business, there are several key steps you can take, such as:

• Changing the default login details to a secure, businessspecific username and password. Many routers come with default login credentials set by the manufacturer, and these are often the same for all devices of the same model.

• Renaming your home wireless network to make it harder for attackers to identify your router’s make and model, which could expose vulnerabilities they might exploit to access your network.

• Making sure your network name doesn’t contain any personal information, like your name or home address, to prevent others from identifying it as yours.

• Setting a strong, unique password for your wireless network or consider using a memorable passphrase for added security.

Taking these precautions will significantly reduce the risk of unauthorized access to your network and devices.

If someone gains access to your email password, they can cause significant damage. They might also gain access to your social media accounts, as many people use the same password across multiple platforms. Sensitive business information, such as work documents, pricing or contracts, may be exposed. Additionally, the attacker could send fraudulent emails from your account, containing malware or phishing links. They may even use the “forgot password” feature on other accounts to lock you out. The consequences of a compromised email account can be severe and long-lasting.

Here are some tips for protecting your business email:

• Use a unique password for every online account. Reusing passwords makes you more vulnerable.

• Make sure your passwords are long and strong. Consider using passphrases made up of random words and avoid using personal information like birthdays or addresses.

• Enable two-factor authentication on all accounts for an extra layer of security.

• Avoid using easily guessable personal information in your passwords, such as pet names or family details, as attackers often check these first.

• If you struggle to remember passwords, use a password manager to securely store and manage them.

Remember, never share your passwords with anyone, even family, friends or colleagues.

KEEP ALL SECURITY UP TO DATE

It’s essential to keep all devices connected to your home network secure by applying software updates as soon as they’re available. This includes mobile devices, computers,

printers, smart home devices and anything else that accesses the internet through your router. Operating system and app updates often address newly discovered security vulnerabilities that hackers could exploit to infiltrate your network. By keeping your software up to date, you’re protected against the latest threats. Additionally, many updates improve overall system performance, enhance user experience and fix bugs, which can increase the reliability of your devices. It’s also important to set your devices to update automatically whenever possible, reducing the chances of overlooking critical updates.

ENABLE A FIREWALL

A firewall acts as a barrier between your home network and the outside world, monitoring and controlling incoming and outgoing traffic. It helps prevent unauthorized access to your devices by blocking potentially harmful data. Most modern routers come with a built-in firewall that’s configured to block common threats, but you need to make sure that the firewall is enabled and properly configured. You can adjust settings to customize the firewall’s behavior, allowing or blocking certain types of traffic based on your preferences. A well-configured firewall can prevent cybercriminals from exploiting open ports or gaining remote access to your network. Regularly check the firewall settings and make sure it’s actively working to monitor and defend against any suspicious activity.

CREATE A GUEST WI-FI NETWORK

Setting up a guest Wi-Fi network is an excellent way to secure your home business devices from potential threats posed by less secure personal devices. Most modern routers allow you to create a separate guest network that isolates your main business network from other devices in your home.

By connecting personal devices, like smartphones, tablets and smart TVs, to the guest network, you limit the chances of them interacting with your business laptop, desktop or phone. This setup ensures that even if your personal devices become compromised, your critical business devices remain secure. Make sure to set a strong, unique password for the guest network and disable access to your primary network resources to further isolate the devices.

NEXT STEPS

Depending on the cost, consider giving employees devices such as laptops or phones that are for work use only.

Be aware the “internet of things” is across much of our lives and will continue to be so. If you don’t need the features that use the internet, like voice activation, disable them.

Be aware any new devices you buy probably come with a default password that might be easily found on the internet. If you’re unsure, get professional IT help.

Securing your home network is essential to protect your personal and business data from cyber threats and ensure that unauthorized users cannot access your devices or sensitive information.

Merchant Services

When you swipe your debit card at a coffee shop, tap your phone to pay for groceries or enter your card number online, “merchant services” are working behind the scenes. Simply put, merchant services are the tools and systems businesses use to accept and process customer card payments. This includes everything from the physical card reader on a store counter to the secure technology that makes online shopping possible. Merchant services also ensure that transactions are fast, accurate and protected against fraud. For example, when you pay with a credit card, merchant services connect your bank, the business’s bank and the card network to move money safely and instantly. For businesses, merchant services aren’t just about accepting payments—they often come with added benefits like sales tracking, reporting and even integration with accounting software. For customers, it means a smoother checkout experience, more payment options and peace of mind knowing their information is secure. Already accepting payments? Let us review your current merchant services account to see if we can save you money and provide additional value.

CONTRIBUTOR:

ELISE BOUNEFF

Elise has worked in banking for over 30 years, mostly in senior leadership positions. She works with businesses, nonprofits, professional firms, public entities and law firms to help develop financial service solutions that meet their specific needs. Her area of commercial banking expertise focuses on maximizing cash flow using tools such as electronic payments for both receivables and payables, maximizing return on excess cash and creating efficient information reporting.