www.ncnbank.com

SITUATION
North Cascades National Bank (NCNB) is a locally owned, community bank with eleven branches in North Central Washington and a well earned reputation for excellent service. Thanks to the worst recession in modern memory, NCNB, like many banks, has faced enhanced regulatory scrutiny aimed at assuring bank customers that financial institutions remain sound and deposits secure. In 2009, NCNB signed a formal agreement with its regulator aimed at improving policies and practices.  While NCNB had already had taken action to address any regulatory concern, bank managers were understandably concerned about potential adverse customer and community reaction.

STRATEGY
In such a situation, clients face a fundamental question: do they take charge of the situation, develop a message and communicate, or just react? After careful analysis, we recommended – and NCNB agreed – to pursue an aggressive, positive communication strategy. To be completely prepared and to ensure that an effective message would be effectively delivered, NCNB leaders completed Gallatin’s Media Training. Our message stressed NCNB’s detailed approach to meeting all regulatory requirements, its strong financial position, and its continued commitment to customers and communities. Our strategy included employee meetings, personal visits to community leaders, media interviews and direct communication with customers.

OUTCOME
In the worst case, customer confidence could have been damaged in a challenging economic environment and NCNB’s reputation might have been tarnished. Just the opposite occurred. Because of upfront, client driven communication and excellent execution by the NCNB team customer reaction was very favorable. The bank’s hard earned reputation was actually enhanced through candor and transparency. The lesson: the right communication approach, skillfully executed can turn a potentially harmful situation into a positive that actually enhances a company’s reputation.