North Bay banks, wealth advisers witnessed firsthand impacts of COVID-19 on local economy

2 years later: COVID’s impact on the North Bay economy

Sonoma and Solano counties: Different COVID approaches but similar outcomes

Sonoma has been among the California counties with the most proactive public health measures in the past two years, while Solano County has resisted measures.

How has each industry been faring?

Beyond the human toll, the pandemic, public policy responses to it and consumer reactions have had impacts on employers that vary by industry. We talked to players in several sectors, and here’s what they told us.

Voices of local business

Here are the personal stories of how North Bay leaders have steered their organizations through the past two years. What has changed? What were their worst fears, and how did they face them?

Banking and finance represented “the tale of two pandemics” to JDH Wealth Adviser Matt Delaney.

“There were two extremes with this pandemic,” the Santa Rosa financial adviser said, meaning some businesses and industries profited while others were devastated.

“There was not much in the middle,” he said. “It was good for those with means. But it was difficult for those who couldn’t stay home.”

Among the notable beneficiaries were banks, credit unions and investors who knew how to navigate the market storm.

In March 2020, the stock market went into a freefall.

“People were scared out of their minds,” the Santa Rosa financial adviser said.

In the bigger picture, after a freefall at first, the stock markets rebounded at a faster rate than predicted, bringing with it those who made sound investments and stayed the course.

Banks and credit unions touted quarter after quarter of record profits, as workers receiving stimulus funds deposited the cash they saved by not spending on nights out and commuting. Banks and credit unions touted quarter after quarter of record profits.

But during the shutdowns and the recovery period, the human side of these primary money managers and financial institutions shone as brightly as their profits.

Luther Burbank Savings got in front of the massive issue as much as possible. Along with witnessing firsthand the explosive real estate market creating shifts in where homeowners wanted to live, the Santa Rosa-based bank experienced a surge in digital banking. Its customers embraced conducted their banking at home as much as some of its employees.

“There was an interesting change in behavior,” Lagomarsino said.

At Luther Burbank Savings, lobby traffic was down 17%, but mobile banking skyrocketed to a rate of 45% between 2019 and 2021. Phone calls increased by 50%, and online transactions went up 24%. Some customers even mailed in deposits.

Bank President and CEO Simone said the bank pivoted quickly, sending home a portion of the staff able to work remotely. It is planning its official return April 4, with the option of some employees able to permanently do their jobs up to three days a week at home. For those struggling emotionally, the bank also offered mental health services in an Employee Assistance Program (EAP)

“Through this whole process, the safety and well-being of our customers and our employees came first,” Lagomarsino said.

Lagomarsino instructed the staff to conduct welfare checks on their customers whose average age is 68. Forty employees made calls to 1,800 customers, some more memorable than others.

During one call, one customer who’s a senior citizen told the branch employee he was struggling and unable to get out of bed because some of his friends had died and he was unable to attend their funerals, Lagomarsino recalled.

Moved by the story, the branch employee sent the customer a mask and a business card and pledged to have coffee “ready for him” in the branch when he starts to go out again. In turn, he posted her card on his refrigerator to remind him that amid a depressing pandemic, there’s still goodness in humanity.

The relationship endured. The branch worker went on vacation recently and brought back a coffee mug for the man.

Susan Wood covers law, cannabis, production, tech, energy, transportation, agriculture as well as banking and finance. For 27 years, Susan has worked for a variety of publications including the North County Times, Tahoe Daily Tribune and Lake Tahoe News. Reach her at 530-545-8662 or susan.wood@busjrnl.com.

2 years later: COVID’s impact on the North Bay economy

Sonoma and Solano counties: Different COVID approaches but similar outcomes

Sonoma has been among the California counties with the most proactive public health measures in the past two years, while Solano County has resisted measures.

How has each industry been faring?

Beyond the human toll, the pandemic, public policy responses to it and consumer reactions have had impacts on employers that vary by industry. We talked to players in several sectors, and here’s what they told us.

Voices of local business

Here are the personal stories of how North Bay leaders have steered their organizations through the past two years. What has changed? What were their worst fears, and how did they face them?

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