Olympia, Washington-based Heritage Bank is expanding with a new commercial banking team in Spokane that will serve the greater Inland Northwest market.

James Krejci, the newly appointed senior vice president and commercial team leader at Heritage Bank, says the 98-year-old financial institution has been eyeing the Spokane market for years, as it aligns with the company's mission and business goals.

"If you look at the mission ... and the values of the bank, a lot is centered around doing things outside of the norm," Krejci says. "There are outside-the-box ways that we're going to help businesses grow to the next level."

Krejci is a North Idaho native with a 14-year career in the banking industry who previously worked in Spokane at Sterling Savings Bank and First Interstate Bank. In 2019, the Journal of Business recognized him as a Rising Star.

The Spokane expansion is subject to regulatory approvals, and Heritage Bank anticipates receiving notice on the completion of certain conditions this month, he says.

Heritage Bank also is in the process of securing a downtown Spokane commercial lending office, though he declines for now to disclose the precise location. Retail branch locations likely will be established in a few years, but such an expansion will be contingent on the success of the commercial team and Federal Deposit Insurance Corp. approval, adds Krejci.

The Spokane office will start with a five-person team to include three commercial bankers, a Small Business Administration division director, and an SBA loan officer.

Along with Krejci, Timothy Engh, senior vice president and commercial banking officer; and Sean O'Regan, vice president and commercial banking officer, will handle commercial real estate, construction, and other types of traditional business lending.

Heritage Bank's SBA team will help support less conventional loans for businesses that may not qualify for traditional financing, he says.

Krejci's team will target manufacturing companies and the businesses that support manufacturing activity, including those that involve the American Aerospace Materials Manufacturing Center underway on the West Plains.

The timing is right for Heritage Bank to establish a presence in Spokane market, explains Krejci. The company has been strategically expanding outside of coastal markets with new locations in Boise and Yakima established in the last two years, he says.

"Spokane completes a triangle that we're calling the eastern region for the bank," says Krejci. "There's a genuine excitement to be here."

Heritage Bank is a wholly owned subsidiary of Heritage Financial Corp. The bank's existing footprint includes 50 commercial banking centers and retail branches located in Washington, Idaho, and Oregon.