Washington Trust Bank, which has been posting robust growth numbers in recent years, says its strategy for the next two years is to keep pace with the fast-growing markets it serves while weighing how extensively to fill in its branch networks in those markets.


Over the past five years, the Spokane-based banks total assets and loans have risen an average of 11 percent a year, while total deposits have jumped an average of 12 percent annually, Chairman and CEO Pete Stanton says. The bank finished 2006 with $2.7 billion in loans, up 16 percent from a year earlier, while deposits rose nearly 11 percent during the year to $2.7 billion, Stanton says. At year-end, the banks assets had climbed 13.5 percent to $3.5 billion.


Business has been fantastic, Stanton says. Heck, we doubled our loans from 2000 to 2006, from $1.3 billion to $2.7 billion.


Stanton expects loan volume to rise by a slightly more modest 10 percent to 12 percent this year, while deposits and assets will climb between 10 percent and 11 percent.


We dont think it will be quite as strong, Stanton says. Its just hard to imagine a year as strong as the last couple.


Lending activity comprises 75 percent of Washington Trusts business, while retail banking makes up 25 percent. As of Dec. 31, 2005, it had more deposits in Spokane County than any other bank.


Since 2001, Washington Trust has opened nine offices, says spokeswoman Ingrid Campbell. This year, it plans to build branches in Airway Heights and Rathdrum, Idaho, and its considering developing land it owns in Coeur dAlene for an office, she says. Currently, the bank has 32 branches in Washington, Idaho, Oregon, and Utah, and employs a total of 700 people.


Were mainly just filling in the markets were in, and trying to grow into those, Stanton says. Were relatively opportunistic, and we take advantage of the growth in markets as they come.


Washington Trust is watching the Portland area in particular as a site for future expansion, Stanton says. Demand has been strong at the banks loan-production office in Portland, which it opened in 2004, marking its entrance into Oregon. Depending on how business goes there in the next few years, the bank might consider opening a branch network bank, he says.


Demand at Washington Trusts offices in Bellevue and Seattleits only two locations in Western Washingtonhas been especially strong, Stanton says. The offices, which opened six years ago, now have a combined total of a half-billion dollars in assets, he says.


Bellevue and Seattle are doing terrific, he says. Theyve done in six years what it took us 85 to do (here).


The banks strategy of expanding rapidly enough to serve its fast-growing markets has resulted in its own strong growth the past few years because the national and regional economies have been so robust, Stanton says. National indicators, however, now point to a softening real estate market.


We set aggressive but realistic goals, Stanton says. We dont have grand designs for a certain size; we just do a good job of growing how the market is growing.


Heightened competition


In Spokane, the financial services landscape has changed dramatically since Stanton, a Lilac City native and a member of the family that controls the bank, came back here to work in 1982 after starting his banking career in the Seattle area.


It used to be that we had two or three (financial institutions) we worried about competing with, and now theres 30, he says. Its clearly a different industry than when I started my career, but theres nothing we havent been able to react to.


Every year more players come into the market to compete for customers, he says.


The biggest changes and challenges in the financial services industry, however, have been in the area of technology, he says.


Ten years ago, the fear was that small banks wouldnt be able to compete with technology, and thats not true, Stanton says. You have to be willing to spend money and innovate, but its not as daunting a task as people thought it might be.


For instance, Washington Trust is in the midst of rolling out a remote-deposit capture service, which for the right customer is going to be huge, Stanton says. Through remote-deposit capture, businesses can deposit checks into their accounts electronically, rather than taking the checks to the bank. Last year, a number of banks here, including Washington Trust, announced plans to offer that service.


Still, despite the increased competition and advancing technology, bank customers still demand great service, flawless execution, and integrity, Stanton says.


Late this month, Washington Trust plans to launch a new rewards program, in which customers will be able to earn points toward travel, merchandise, and other products by using their credit card, debit card, or home equity line of credit-card, Campbell says.


Meanwhile, for its employees, Washington Trust has implemented a wellness program to try and manage rising health-benefit costs and encourage employees to adopt healthy habits.


Employees can take a health-risk assessment survey, and those who have high cholesterol levels, excess weight, or other indicators that put them at risk for health complications can receive confidential health coaching. To help employees achieve their goals, Washington Trust helps supply exercise tools such as pedometers and also holds walking competitions.


Whatever we can do to encourage them to stay healthy is important to us, Stanton says. Thats our lifeblood, taking care of customers and employees, and it has been for the past 104 years.


Stantons great-grandfather bought controlling interest in Washington Trust during the early 1900s, and both his grandfather and father presided over the bank.


The Stanton family owns between 60 percent and 65 percent of the stock in WTB Financial Corp., the bank holding company that owns Washington Trust, he says.


Contact Emily Brandler at (509) 344-1265 or via e-mail at emilyb@spokanejournal.com.