PORT TOWNSEND — Jefferson Healthcare commissioners will consider transferring three depository accounts from Union Bank to First Federal — and one payroll account from U.S. Bank to First Federal — when they gather today.
First Federal is the only locally owned community bank on the North Olympic Peninsula.
The meeting will begin at 3:30 p.m. in the hospital auditorium, 834 Sheridan Ave., Port Townsend.
Jefferson Healthcare Chief Executive Officer Mike Glenn said the proposal was the initiative of first-year Chief Financial Officer Hilary Whittington, who worked to consolidate the public hospital district’s multiple banking relationships.
“It took a lot of extra time and management to manage all those banking relationships,” Glenn said.
“She thought it would make more sense to look at a centralized approach.”
By building a strong relationship with one bank, Jefferson Healthcare may be in a better position to secure lines of credit for capital purchases, Glenn added.
Glenn described First Federal as “a good fit.”
A proposed resolution before the five hospital commissioners would authorize Whittington to transfer the three depository accounts and one payroll account to First Federal on behalf of the hospital.
The transfer would take effect today.
“I think there will be indirect benefits to our patients by making the process more orderly and streamlined,” Glenn said.
Employees and the general public may benefit, too, because First Federal is a local bank, Glenn added.
If the resolution passes, Jefferson Healthcare would retain its relationship with Bank of America for its treasury account.
“We work closely with Jefferson County on the management of that,” Glenn explained.
Olympic Medical Center and Forks Community Hospital already bank with First Federal. OMC has more than $2.7 million in deposits at the Port Angeles-based institution.
“We also use KeyBank as our check-processing bank as this is tied to our $10 million loan at 2.9 percent,” said Eric Lewis, OMC chief executive officer, in an April statement to the Peninsula Daily News.
“KeyBank has local branches and employees. As a public hospital dependent on taxpayer support, we search for the lowest interest on our loans and highest interest on our investments.
“We have a positive relationship with both KeyBank and First Federal.”
Executive assistant Tracy Gillett has said Forks Community Hospital banks with multiple institutions, including First Federal.
Jefferson Healthcare commissioners have discussed the proposal in earlier meetings.
Glenn said he expects a vote today.
Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 5072, or at rob.ollikainen@peninsuladailynews.com.