A Tale of Transfer – How Northrim Bank Lost My Money
I have to confess, I felt a little wistful about Move Your Money Day. The idea was that on Saturday, November 5, everyone who was fed up with the big banks, their unsound business practices, their bailouts and bonuses, should pull their money out of those banks, and instead open an account at a local bank or credit union. I thought this was a great idea, and I planned to promote it on the blog. But that’s where it would end for me, because I already have my money in a local bank. I’ve had multiple accounts, both personal and business, at Northrim Bank, headquartered right here in my home town of Anchorage, Alaska. You can’t get more local than that. So, even though I wanted to participate in spirit, I’d already done what needed to be done, and I’d done it almost 20 years ago. Ah, well…
Fast forward to October 23 of this year. I was reading an opinion piece in the Anchorage Daily News about oil taxes. It became clear pretty quickly that whomever had written the piece was a good friend to the oil companies. Now, there’s nothing wrong with the oil companies per se. If they didn’t exist, Alaskans might own the oil, but it would still be in the ground and the state would be in serious financial tough straits. But the job of Alaska, as an owner-state, is to balance the tax system so it’s good for the oil companies and also good for us. Our state Constitution even says so. Unfortunately, it always seems that the oil companies have more people in power (financial and legislative) on their side than Alaskans do. Funny how that works when you have gobs of money.
The author of the opinion piece went on with the usual oily talking points – grumbling about how Alaska is going to disincentivize exploration if we don’t give the oil companies lots more of our money that currently goes to schools, roads, bridges, and that kind of thing. Then he made a swipe at Senator Bill “Wielechow-ski” [sic.]. I was beginning to get irritated now because Senator Wielechowski (no hyphen, by the way) is one of the few white knights we have in Juneau who is actually thinking about Alaskans before Big Oil – you know, like his oath of office said he should.
As I went on, I envisioned the author dipping his metal-tipped pen into an inkwell full of North Slope crude to continue scrawling.
The good news is we have lots of oil left on the North Slope and lots of capacity in the pipeline to ship it to market. The bad news is Alaska is simply not as attractive a place to invest as other oil provinces.
Riiight. They’ll abandon us for other, more friendly and attractive oil provinces they’re already working with, like Libya where oil companies are taxed 95%? Or how about Argentina, Algeria, or maybe Khazakstan. They’re much tougher on the oil companies with their tax policies than we are, and yet somehow drilling still happens.
“So, who is this shill who’s so far in the oil companies’ pockets that he’s picking the lint out of his teeth,” I thought to myself? Then, I saw it…
Marc Langland is chairman, president and CEO of Northrim Bancorp. He is also co-chairman of the Make Alaska Competitive Coalition.
~Me
But… but… but… Northrim Bank is MY bank – my LOCAL bank! It’s supposed to be a good guy. How did I not know this? How could I have been giving my money and my business for twenty years to this “ass [hyphen] hat?”
Looks like I was going to move my money after all. If Marc Langland and Northrim Bank had declared their allegiance to the oil companies over the people of Alaska, this was one person from Alaska who wasn’t going to take that lying down. And I certainly wasn’t going to give those so-and-sos one more red cent. They didn’t have to be one of the big banks like Wells Fargo, or Bank of America to be undeserving of my money.
I plotted my strategy, and after talking to some people, I decided to go with a local credit union – Credit Union 1. I found that pretty much everyone who had experience with any local Alaskan credit union raved about it – Alaska USA, Denali Alaska, True North, and many others. But I had to pick one, so I did.
It turned out to be a rather delightful day. I pulled in to the “Customer Only” parking spot at Northrim with squinchy Clint Eastwood eyes, and said to the building in general, “Not for long, pal…” It took about a half hour to close two accounts, and get a cashier’s check. The teller was very nice, and gave good service. It wasn’t his fault, so I tried to hold all my feelings of righteous indignation and contempt inside.
~Buh-bye
Then, off to Credit Union 1. I sat down with Cassie Trammell, who told me that she was the Branch Manager of the downtown branch, but was working at the midtown location that day. I inquired further, and she mentioned that they expected to be doing a lot of business that day, and so they had extra people on staff to open new accounts. I had heard they’d been very busy the day before. She asked if I was moving my accounts out of a bigger bank, and I said yes and told her how happy I was to be putting my money somewhere I could feel good about. She gave a huge smile and set about creating my new accounts, and my membership.
I like Cassie Trammel better than Marc Langland. Just saying.
The whole time I was there, there wasn’t an empty seat in the new accounts waiting room, and I was hopeful that it meant there were lots of others like me. Nationally, in the month of October alone, 650,000 new accounts were opened at credit unions. That’s 13 times more than usual, and totals new deposits of $4.5 billion for that month.
I’ve never had a day when what normally might have been a pain-in-the-neck errand felt so satisfying. I only wish I’d done it sooner, but I will sleep well tonight knowing that Marc Langland and his cronies at “Make Alaska Competetive” and Northrim Bank aren’t profiting off of my labors any more. I do appreciate Mr. Langland and Northrim Bank “outing” themselves in time for me to join the festivities. It was a great deal of fun.
I heart True North FCU, especially Shannon. Thank you for 22 years. And God bless my supervisor Debi who in 1989 loaned me $5 to open an account.
I’ve been using local banks for years, ever since I realized the big banks (Keybank, in my case) had no interest in my little accounts. I believe it is entirely possible you are doing the big banks a favor by moving out. They really are not interested in the small depositors.
@Jayson: You can obviously tell that you work for Northrim, by your comments. northrim is a boys club and always has been. Marc Langland and Chris Knudson are laughing all the way to their condos in Mexico. their community service is a joke and only done to save face. I have yet to meet one employee from Northrim who is genuinley commited to serving our community. You are correct that Credit Union’s don’t pay taxes. Because all profits go back into the pockets of our members, which means lower interest rates on loans and high rates on savings and CD’s. Plus credit unions invest hours and money into the communities they serve. All of the money that Northrim is making is going into Bonuses for the executives and Board Members/Share Holders. Bunch of rich white guys sitting around a table at the Petroleum Club lapping up the gravy of the hard working Alaskan. Get out people!!! These banks are crooks! Marc Langland is asking his employees to add comments onto the blog. It was sent within the bank to all. Common People, don’t be stupid.
@ Jayson
I own a retail business which also performs service related to what I sell. One of my business rules is that I never express a political or religious opinion in the business environment. I am well aware that I have a constitutionally protected right to do so, but I choose not to because I am aware that there is a distinct possibility that many of my customers do not share my views. A Republican, Libertarian or Tea Party dollar spends just as well in my shop as a Democratic one.
Business owners, and that includes banks and owners of retail brands who choose to politicize the brand risk alienation of a portion of their customer base. It is a choice and choices often have consequences. If a bank executive publicly aligns his business with with a faction or course of action that I oppose but he sees as being more beneficial to his business than my custom, he is accepting the potential loss of my custom.
Those of us who live in geographically far flung areas of the USA, Alaska and Hawaii for example have less choice in almost everything. It is the price we pay for our choice to live where we do.
I have banked with a small local savings and loan bank for 25 years plus. I continued to bank with them (mostly by mail) when they closed my local branch. As time passed service declined. I couldn’t qualify for a mortgage for 30% of their appraised value of my home (I had a 70% down payment). It is the self employed woman thing although they will not admit it. My monthly mortgage payment would have been 60% of the current rental rate. I got that loan elsewhere and paid it off in five years. The majority of my banking both business and personal is now at a credit union. I keep a low balance savings account locally (40 miles away) in my old bank for emergencies.Last year I earned the grand total of 1c in interest there.
I moved to the savings and loan when the local equivalent of a big bank devised a clever scheme to make more money off me. I could get free checking if I kept a balance equivalent to 30% of my pretax annual income (at the time) in that non interest bearing account. If I did not qualify for free checking, as a woman with no male to cosign for me I did not qualify for any kind of loan, including a credit card. This is before the debit card era. Then there was the monthly minimum $6 service fee. The checks had to be bought through them at 300% higher than I could buy them elsewhere and if I wrote more than 15 checks a month each additional one would incur a fee. That included a check written at the bank for cash. Now double this for my two accounts, one business and one personal. I couldn’t afford a bank account and how do you run a business without a bank account?
I suspect that most who are moving their accounts are driven by the same factors I was. They want better service and lower fees.
Personally I am also uncomfortable with very large financial institutions who have moved away from ‘banking’ to what is in effect gambling. I would not have so much of a problem if they were doing it with their own money, but they are not. My highly regulated retirement account has been directly and severely impacted by the actions of unregulated young hotshot traders who bear no consequences for risky, ethically questionable and possibly illegal acts. The daily life of millions is affected by unrestricted futures trading in basic commodities like gas, fuel oil, wheat, if it exists they are gambling on it.
I want to see community banks completely split off from their market trading departments and return to a traditional business model investing in the communities they purportedly serve. Without statutory change it is not going to happen.
We can’t stop buying gas, fuel oil and bread but we can vote with our feet and move our accounts and business to institutions that meet our needs and share our goals and values.
I’ve been with Alaska USA over 20 years and have never been anything but happy with the service. However, we intend to open an account for Morrigan over at Credit Union One because they have been so supportive of the LGBT community. Way to go, Jeanne!
Well half of my bank’s presidents(and co-owners) ambled out to Mikey’s one day and got on his knees and begged me to let him scratch his arms and hands picking gooseberries. I did,he did and he made some great tasting jelly even with scratched up hands. In small town Iowa it seems that the good guys really go the extra mile,or six in my case.
I opened accts in my local small town bank last March when I got a lawsuit settlement check. Turned out my mortgage co that I never had a complaint about in 13 yrs (treats me outstandingly fair!) WAS a small town bank. While I have to drive another 3mi, it’s rare that I even go to the bank since I can get extra money on my debit card while buying groceries.
I’ve procrastinated closing the BofA accts, needing to make sure all the links like auto pays Retiremt, Mortgage, Insurances, Paypal Donate etc. won’t start bouncing, if I don’t have all my ducks in a row. Then last month my BofA issued AK Airlines VISA card cheerfully let me know that Nov bill they will charge my $75 annual fee. I noticed that the very day after the Oct bill closed they tacked on that $75. Just gotta milk every bit of interest in that $75. Over 10% interest and I’ve NEVER gotten a free airline ticket. When I finally went to use reward miles, they bumped up the reqd number to make sure I still had to pay.
Called my new small bank. Well Sure, they issue credit cards – for free & after one free interest year @ 7.99%. Applied on-line Friday night about 10pm and by 8:01 a.m the next SATURDAY Nov 5th morning there was an Approval in my email. Card in the mail 7-10 bus days.
Ok, so today I headed to BoA to close that AK Air Visa card. Bk Mgr was helpful but he had to call someone to give the balance so I could write the check to close it. That lady on speaker phone was not going to give it up.
She kept saying I must not know, that I use this card frequently, she would waive the $75 fee, I do a LOT of business with that card, (& repeatedly!) that she just had to “make sure” that I knew what I was doing. I kept doing the “broken record routine” saying “I just want to close this card”. Over and over, and then I finally simply snapped & yelled it at the speaker phone. Bk Mgr looked surprised, but he could tell that I was getting frustrated. @ 60 yrs old, I’m still plenty able to make my own decisions!
So tomorrow I’m taking a day off to do homechores and compose my thoughts. Then Wednesday I’m heading out to close the BofA checking and saving accts. Chicken that I am, I will head to a different branch of BofA for that.
Want to clarify:
“10pm and by 8:01 a.m the next SATURDAY Nov 5th morning there was an Approval in my email. ”
it was the following morning, just 10 hours later. I’m still shocked!
When we first moved back to MI, all I knew was that I wasn’t going to go back to Comerica, the crummy bank I used before moving away. I searched for a nice, small bank with a fair number of ATMs scattered and settled on one. They were promptly bought out by a bigger bank, who was later bought by a too-big-to-fail bank. By this time, our accounts were so entrenched there with direct deposits and automatic bill-pay, it’s really difficult to disinvest (Is that a word?). In the meantime, there are NO community banks here and the credit unions are far flung with no cooperative ATM system that makes access to cash easy. The closest CU is 3 miles away (I’m sure in AK terms that’s close, but not so much here where there’s a bank on every corner, in every supermarket or big box store) and the next closest is 6 miles. I’m sure I’ll figure something out eventually, but in the meantime, I’ll celebrate your success.
P.S. As a side note: my contacts with the customer service people at this bank have always been good; they once really helped me out of a jam and were very nice about it. The problem with this bank is not the people, it’s the management and philosophy which offends me.
As much as we, living in rural Alaska, would like to move our monies, various accounts both personal and business to another bank it is not doable.
Our closest branch is about 80-90 miles away and although we seldom have to interact with them it is a must at times and having the nearest branch in ‘the city’, which is over 400 miles away.
Banking is rural Alaska is a challenge in itself. Hopefully in time we can change things.
I find this blog to be irritating and a bit disgusting. Why would you switch your bank because of someone’s opinion. I think it is because you just wanted to be part of the sensationalism of Bank Transfer Day. I respect your opinion about oil and gas issues, but to take that as an attack against a local company seems self-serving. Therefore, I won’t be arguing on the uneducated comments on those oil and gas issues. Just because you don’t agree on a very hot issue amongst all Alaskans, you decided to go to a credit union – WHO BY THE WAY DOES NOT PAY TAXES (that’s right, look it up). Would you actually stop being friends with someone who had an opposing opinion on issues related to our economy? It’s not like it’s abortion. I’m sure your local bankers are sad to see you go, because I know that Northrim Bank is committed to the community – which includes some sometimes hard stances on oil and gas issues which effect our economy and lives. Don’t you know that a bank Chairman is not “good friends with the oil companies” in a sense that somehow he profits directly. I think Mr. Langland understands how our economy works here and truly is looking out for Alaskans – just like you. However, he just has a different vision. And if you moved because of a differing opinion, why not choose another community bank? So, I am glad that you had “fun” publicly humilating a small business who has given back a lot to our community. I’m sure you are bathing in all the other commenters who are cheering you on as you smear a community bank so that you can be part of the party. It’s time to start looking to the future of Alaska, not to a LA art dealer.
********************************************************
As a small business owner who gave back to my community for two decades, I recognized that if I came out with a controversial and public political statement about a “very hot issue” as you recognized, I risked losing business. It’s not rocket science. Mr. Langland had a choice, and so did I. Free market. I choose not to shop at several local businesses because of their politics. I don’t expect people who don’t agree with me to financially support this blog. It’s nice when those who agree do, but I’m not angry with you because you don’t choose to give me money.
No, I wouldn’t stop being friends with someone I otherwise liked because of their politics. However, I might not vote for them if they ran for office. And, I probably wouldn’t donate to the same causes they did. I care immensely about my community and my state. Putting my money in a local credit union does nothing to compromise that. Thanks for sharing your opinion. AKM
I am quite frankly tired of how the Mr Langlands understand “how our economy works here and truly is (are) looking out for Alaskans” , whether they are on a board at a bank or chair a Chamber of Commerce or whatever.
I am weary unto perdition of the patronizing attitude of business insiders as regards what-we-have-to-do to maintain oil here and the patronizing notions of what constitutes looking out for Alaskans. This 30 some year experiment with oil revenue as the driver of too much of our state’s economy and way too much of the revenue for our government has its up sides and its downsides and one of the rottenest downsides is other Alaskans trying to shush any of the rest of us if we don’t buy the whole be-good-to-the-oil companies routine and don’t worry your pretty lil head with details , we’ll take care of it crap. A banking exec has no business tooting off the way Mr Langland did and not expecting some blowback. For crying out loud- we ended up with whatzername as gov because enough people were sick and tired of the oily deals going on that it ought not surprise anyone there was blowback.
sheesh.
You made a big deal about the credit unions not paying taxes… surely you do know that Bank of America and Wells Fargo didn’t pay any taxes last year either?
I’m glad you shared this experience. You made a good decision.
We switched our checking acct. from NBA to FNBA some time back, partially in anticipation of the Hell’s Fargo takeover. That may not have been one of our more astute decisions.
I know Dan Cuddy, and he is the perfect stereotype for a far right wing idelogical banker, a real Senator Phil Gramm type, a laissez faire capitalist is he. Your story got me to reflecting upon an article in a recent Alaska Business Monthly magazine. Written by Dan’s daughter Betsy Lawer. At the time, I both agreed and disagreed with some of her assertions. I am quite a bit older than she so I remember clearly the days before big oil, I am not of the mind that those days were all as dire as she attempts to portray.
While reading her piece, I realized she was simply laying a foundation for yet another GOP argument supporting the dismantling of ACES. However, she was a little more coy in her prose than Northrim’s Langland diatribe. She was astute enough to realize that there still are plenty of Alaskan’s here not of the Texas/Oklahoma oil persuasion who see red when someone like Langland utters contentions meant to endure him with the Corpus Christi boys.
Betsy’s punch line at the end was enough to prove I was correct in this assessment:
“None of the three major oil producers – BP, Conoco-Phillips or Exxon – are exploring this year. With virtually maintenance of existing lines only being performed today on the North Slope and no exploratory wells being drilled, Alaska is already behind the curve in terms of filling the pipeline. Alaska needs a plan to fill the pipeline and it needs it now. We won’t be “fine” without a healthy oil industry in Alaska.”
Betsy Lawer—Vice Chair–First National Bank of Alaska—“As a third generation Alaskan banker, Lawer grew up with many of Alaska’s business and community leaders. She learned the banking business literally at her father’s knee, earned her degree from Duke University, and returned to work her way up to the leadership position she holds today. In 2011, Lawer began serving a three-year term on the Federal Reserve Bank of San Francisco’s Board of Directors.”
http://www.akbizmag.com/component/content/article/13373.html
I’ve been with a credit union for years and years, always been very happy. Your title scared me a bit AKM, I thought at first they lost your money, as in they couldn’t find it when you went there to move it to the credit union. Phew! All worked out well. Viva la credit unions!!!!
i moved my accounts from northrim to CU1 [closing accounts i’d had for 14 years] about a year and a half ago and never looked back.
they built a branch in mt view a couple blocks from my house — the first financial institution to locate there since 1987. i like their attitude and outlook a lot.
I got a fright when I read the title. I thought that the bank had literally lost your money and couldn’t find it! So glad to hear that that’s not the case.
I’ve been with AlaskaUSA credit union for years. I got soured on banks at a young age. As a kid, I had a small account with National Bank of Alaska. I tried to cash my federal tax refund check there from the U.S. Department of Treasury.
They declined to cash the check, because I didn’t have enough money in my account to “cover the check if it bounced.”
I remember saying, but it’s from the U.S. Government. If they’re broke, we’re all sunk. If that same scenario happened today, I would understand I guess.
I
That was SO NBA! I have a few stories of my own, just as bad!
Around here, the newest, fanciest buildings ALL belong to the banks.
I transferred my accounts years ago from Alaska Federal Savings and Loan (now Alaska Pacific Bank) to True North. The day I walked into AFS&L and saw a big poster promoting a Disney product was it for me. That was the sign of an unholy corporate alliance I was damned if I would support!
One small correction, AKM: The Anchorage Daily News is using an outdated description of Marc Langland. The President and CEO of Northrim is Joe Beedle, a life-long Alaskan, former VP Finance of the University of Alaska, former CEO of Goldbelt, Inc., the Juneau village Native corporation and a genuinely nice guy. Joe is also a pretty good friend of WC’s.
Langland remains the Chairman of the Board of Northrim.
It probably doesn’t change anything. And you’ll get better service and lower fees at CU1.
Shucks, I can’t have the satisfaction of moving my millions, since I’m practically a charter member of my CU in FL (for about 40 years) and have a local account here in GA for 24 years. Been very satisfied with both.
*chuckling*
What serendipitous timing for that editorial to catch your eye! I’m chiming in with everyone else; this is a great piece, and I hope it receives an even wider readership than the (admittedly impressive) Mudpup contingents. So glad you got to enjoy the day’s festivities, AKM!
Thanks for doing my homework. I was ready to go from Wells Fargo to Northrim. Now I won’t. Credit Union it is.
Yay!
Great article. I actually jumped the gun and took my money out of Northrim Bank about 8 years ago. I waited until Denali Alaska had business accounts, and Whoosh! I sent all my accounts to Denali Alaska. They have been great! In all my years doing business with Denali, I have not had a single complaint. I can’t say that for Northrim. As for Northrim – they just downright sucked! Especially Marc Langford. My daughter is also closing all of her accounts at Northrim and she will be going to Denali Alaska, of course. Thanks for the post. Not all local banks are worthy of our hard earned money. Let the big banks, and Northrim, suck up to the few big guys they have – soon they will realize that it’s all the “little people” that has kept them afloat all these years. Like Donald Trump – the big guys don’t always pay back their loans – they file bankruptcy, laugh and move on. The “little people” would be put through a masher and have everything taken away from them if they didn’t pay back their loans. It would be nice to see even just one big bank fail – that would be justice. After the pipeline slowed down, back in the ’80s, when the Alaska economy was similar to it has been the past few years – big mortgages, inflated housing prices, 17% interest rates. Then, Ka-Boom! Good bye Alaska Mutual Bank, good bye Alaska Bank of the North, good bye Continental Bank, good bye Alaska State Bank. A lot of their failures were due to bad loans – to who? Oh, yeah, the “big guys”. All local banks about the size of Northrim. Who knows, it could be Good Bye Northrim. Sometimes history repeats itself. Just sayin’!
And so enters all the big banks when that happens. Be educated!
I’ve educated myself about the positions Northrim’s President has chosen to publicly take, don’t much care for them, and don’t feel obligated to reward him with my business. Like AKM said below, he certainly has a right to his views and to express them. And we have the right to take our money where we choose, and to express why. Don’t act like the head of a bank is the only one with 1st Amendment rights.
And Frank Murkowski!
AKM,
I know that you have wide readership in Alaska, but wouldn’t it be nice to sent this piece as an editorial to you local paper?
this.
Whew. That was a close one, AKM 😉 Good thing you’re one of the few that read the news…
I used Northrm for many things over the years and was quite happy with them. But when they align themselves with big oil lies (I have nothing against big oil, but I don’t like lies) then they don’t deserve our support.
Why does Big E. Banker remind me of William H Macy’s Fargo car salesman character? He looks like someone who would sell you the shirt off your own back,if he thought he could make a dime. I’m fully invested in one local bank for checking,savings,money market acct.,loans and I stop in every so often to look at the ladies and shoot the breeze with the owners and others. Nice friendly locally grown and raised owners and employees.
The shirt off your own back.
LOL!
I’ve been at Alaska USA for decades, and my daughter even works there. They’ve been great.
A comment here, and a couple more I found elsewhere, mentioned that AK USA was “quietly moving headquarters out of AK and cohorting with BofA”. They are one of the nation’s largest CUs, so I’m beginning to feel like I need to know a lot more about them since I’ve been with them for almost, well, forever. Would love to know what your daughter thinks about comments such as these?
I know cohorting isn’t really a word, but I keep coming up with these out of nowhere and they just come out of my keyboard unbidden. It’s all Sarah’s fault! The other day is was coopportunity and I’ve decided I really like that one (once I settle on what it really means).
On purpose I came up with “vendebtta” awhile back . That one means “Sarah Palin kicking every vending machine she sees for the rest of her life because once, way back when, one of them stole her money”.
Cohorting is a real word after all dammit, but since it isn’t my idea of a definition then I irrefudiate it.
http://www.medilexicon.com/medicaldictionary.php?t=18772
“Imposed grouping of people, such as health care workers, potentially exposed to designated diseases.”
“since it isn’t my idea of a definition then I irrefudiate it.” Good one, centurion!
Be careful of AK USA. The “for the members by the members” motto they promote is not true. They claim they care about members, but they really don’t. They are like a for profit credit union, and thus the reason for being inkahoots with the Bank Of America to help manage their mortgages.
I’ve banked at a credit union in AK for nearly 26 years. It’s the only “bank” I’ve ever had in this state. Even in college and grad school I was a member at local banks or credit unions, but I always kept my account here. Sorry I couldn’t participate this weekend, but I guess I was just way ahead of the curve!
Good for you AKM – great action, great story! Unfortunately like you I was sure I was supporting local by having everything in the world (I am rich you know – ha!) at our biggie AK USA. From blog comments here, it’s looking like I need to do some homework. When I joined them umpteen years ago, they were wonderful. They still treat us like gold, so they make us feel as though we do have gold. Since the banks treat you like crap, well – I guess they like to move a lot of shit around. Research time – missed the date but not the spirit!