Bank Of Whitman's Long Run Ends

In 1977, farmers, business people and others celebrated the creation of a new, locally funded bank in Colfax. It was a big deal.

The new bank was called Bank of Whitman.

Its mission was to support and build the local economy by providing loans and financing for local people. It was dedicated to keeping its resources and commitments at home.

The bank quickly became the go-to source for financial services and support for community projects. It employed local people at all levels of responsibility. For many, it was the preferred place to bank, and its name could be seen everywhere.

In fact, a young boy learning to spell was asked how to spell “bank.” He proudly responded “BOW.”

The bank grew and was successful and profitable. It became everything a locally owned community bank should be, and the investors were rewarded.

Then, in 2003, a change occurred. The bank was restructured, limiting the number of stockholders. It bought back stock from its many smaller shareholders, some of whom were original investors who helped get the bank started.

This transformed the bank from a community-owned corporation to a private bank. What started with deep community roots became a cash cow for the few.

As it turned out, this was a very big deal.

Then, the recession hit. Some of the bank’s large commercial real estate loans turned bad. Eventually, banking authorities demanded a change in management and later engineered the takeover by Columbia Bank. Officially, Bank of Whitman is no more.

People have been hurt by the bank’s failure. The stockholders, of course, lost their investments. The employees suffered more serious and certainly more innocent losses. For many their ownership stake in the bank represented their only retirement savings. Some have lost their jobs, and more may as the transition unfolds. Small towns have lost their bank.

The Bank of Whitman is gone forever. It failed as a business in part because it failed to remember the very reasons for which it was created.

Gordon Forgey