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, 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 Edmonds-based 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.”Heritage Bellingham Office, continued from previous page in Bellingham, amassing numerous contacts in that industry.

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.

Source: 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

Bellingham265 York St.360.734.7306

NW Avenue920 W Bakerview Rd.360.527.9900

Hector Reyna, Area Manager-Branch Banking