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In an era of bank mergers, acquisitions and closures, one Kitsap institution has remained a mainstay. Kitsap Bank, which marks its centennial this year, has been a local landmark for decades, growing alongside the community. What is just as remarkable is that the bank has remained largely family owned for most of this time, and it has only had eight presidents in its 100 years.
Asked how significant is the anniversary, current President and CEO Jim Carmichael says, “It’s huge! Kitsap Bank is one of a very small number of banks to achieve this milestone. We came from a small bank with one location in Port Orchard to the major community bank on the Kitsap and Olympic Peninsulas…”
Carmichael, who has been president/CEO since 1985, says successful relationships are key to the bank’s success. “In an era of corporate mergers, Kitsap Bank has remained the true local bank that cares about its customers and communities,” he says. “Building long-term relationships is a commitment that everyone at Kitsap Bank takes very seriously. We look to establish full relationships with our customers, better allowing them to weather the storm during difficult times.”
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| Kitsap Bank main branch in Port Orchard |
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Today, Kitsap Bank has 27 offices in the Puget Sound area, with assets of more than $800 million. But its beginnings were quite humble. Founded by three Port Orchard men and a Seattle financier, the bank opened its doors in downtown Port Orchard in August 1908. It only had five branches by the mid-‘70s, but saw tremendous growth in the last three-plus decades.
Just as the bank has been an icon in Kitsap area, board Chairwoman Helen Langer Smith has been an icon in the banking world and the local community. A third-generation Kitsap Bank majority owner, she has served on the board since the early ‘50s.
“It’s been very interesting and fulfilling, and I feel like I know the community,” she says.
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Kitsap County Bank building, 1958 |
Smith grew up in a family where the bank business was often the focus of the dinner table conversations. Her father, Frank E. Langer, purchased the controlling interest in the bank in the 1920s, and became president in 1930. Smith recalls the challenges that came in the era of the Great Depression, as banks were in trouble everywhere. Her father’s bank salary was minimal, and her mother, Hannah, worked for free. To weather the storm, Langer and the board of directors asked depositors to lend the bank 25 percent of their deposits, and were promised to be paid back in two years at 6 percent interest — an unheard of rate at that time when interest rates were at 1.5 percent. “Dad saved the bank,” she says.
Her mother showed equal commitment years later. When Frank Langer died in 1952, Hannah Langer was pressured to sell the bank. Encouraged by her father and her brother in law not to give up, she didn’t. Instead, she became the first woman bank president in the country west of the Mississippi. That was during a time when women’s careers were limited to teachers, secretaries and such.
Smith herself made a sacrifice in light of her father’s death. A cum laude journalism major, she left her job at KING-5 TV and pursued training at two banks before coming to Kitsap Bank. “I realized my responsibilities were here,” she says.
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| Kitsap County Bank, 1908, corner of Bay and Frederick St. |
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Her daughter, Cydly, has been serving on the board by her side for 14 years. Asked whether the family has considered selling the bank since that time five decades ago, Smith says selling hasn’t crossed their mind much. “It hasn’t been in our cards,” she says. “What else would be satisfying? I love being around younger people — when you have something to focus on, it keeps you going… You feel a sense of satisfaction about accomplishing things, you feel part of the community. My heart is really here.”
Smith says having strong employees has been important to Kitsap Bank’s success, and she tries to carry on the Langer legacy by treating employees with respect and encouraging them to express themselves. “I think they appreciate having a people response,” she says. “It’s a peg they can hang their hat on.”
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The four founders of Kitsap Bank |
As some banks and financial institutions are making cuts and finding themselves in trouble, Smith says Kitsap Bank remains strong because it makes prudent loans. “Credit is analyzed and handled succinctly,” she says. “Our prudent credit policy has been key… We have very sound people, and we set ourselves into that mold… We look for that in our customers and in ourselves.” At the same time, the money stays in the community as loans are made locally, and Smith says many people “don’t realize how important is to keep the money in the community.” Even the bank’s philanthropically contributions are focused on local causes instead of national ones. Carmichael says, “Our longevity and consistent ownership and management have greatly impacted our communities. They look to us as a stabilizing force, providing leadership not only for their finances but also in giving back — both time and dollars –— to the communities where we live and work.” Kitsap Bank has committed more than $1 million in contributions in the past five years alone through its Community Partner Program; this year, the bank will sponsor more than 100 events in the communities it serves.
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Jim Carmichael
President
and CEO |
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As it turns a century old, Kitsap Bank plans to continue growing. Recent changes included an expanded presence on the Olympic Peninsula with acquisition of Port Townsend-based Mariner Bank, and an upgrade in technology that improved online banking and cash management. More expansion plans are in the works. Earlier this year the bank announced the expansion of its loan operations in Pierce County, planning to open a new loan production office in Tacoma. Carmichael says groundbreaking is planned for a “significant new facility in Kitsap County later this year.”
“As we begin our Centennial year, we reaffirm our commitment to remaining a steadfast partner with our customers and community,” he says. “We are very proud of our track record, and look forward to continuing our tradition of service into our second century.”
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