Directors Briefing: At Lewis and Clark Bank, a small, nimble board drives success

By Debra Cope

What are the advantages and drawbacks of a small board? Trey Maust, executive chairman of Lewis and Clark Bank, believes the benefits far outweigh the challenges.

With just six board members — four independent and two inside directors — the $342 million-asset bank based in Oregon City, Oregon, has deliberately kept its governance structure compact to foster agility and engagement.

“A smaller board forces everybody to be engaged,” Maust says. “It allows for great flexibility and ensures that everyone is involved in almost every area of the bank.”

Lewis and Clark Bank’s board stays nimble as each member brings deep expertise that fills gaps management cannot address on its own. “We want the board to have the right domain expertise to complement what we do,” Maust explains. The result is a highly engaged group where directors actively contribute to every facet of the bank’s operations.

Maust acknowledges that a small board requires vigilance in ensuring full engagement. “It’s more work per person, but it forces everybody to be engaged. You don’t have the luxury of people being detached from the day-to-day running of the bank.” He emphasizes that the ongoing commitment of each director is critical, especially as board members retire or step back. “You need to make sure everyone has the right context, or it becomes noticeable.”

A smaller board also requires high-quality board materials. Maust explains that management prepares thoroughly synthesized reports, making sure directors can easily grasp key metrics and risks. “The team spends a lot of time preparing materials so that the board doesn’t have to figure out what they’re looking at. It’s about making the complex easier to understand.”

While this structure encourages direct communication and collaboration, it also means that every member must participate in discussions, even as the bank explores new business models. “As we look at innovations, having an engaged board is essential to ask the right questions,” Maust says.

For Maust, staying connected to the broader banking landscape is equally crucial. “I regularly expose myself to ideas outside our bank,” he says, “so I don’t develop a narrow, myopic view of what banking can be.”

Maust sees his board as a key part of the bank’s ability to adapt and stay responsive to new challenges. “The traditional community banking model will remain the foundation, but we will continue evolving in how we serve our customers.”

Growing up in a small town, Maust understands the pivotal role community banks play in supporting local economies. Raised on a farm in Oregon’s Willamette Valley, near the small town of Yamhill, he was no stranger to the close-knit nature of rural communities. Although he initially pursued premed studies, Maust quickly realized that his talents lay in business and accounting. After starting his career at Deloitte, where he gained a solid foundation in high-level finance,

Maust moved to New York to work on M&A due diligence. His experience in corporate finance deepened over the years, and he later joined Honeywell, overseeing financial due diligence for acquisitions and divestitures.

In 2006, Maust teamed up with Jeff Sumpter, a colleague he had met during his banking work, to bring their shared vision for community banking to life. They launched Lewis and Clark Bank, to focus on serving the needs of local businesses and building strong relationships within their community. Sumpter serves as president and CEO.

Since its founding, Lewis and Clark Bank has evolved from a traditional commercial bank to embrace strategic partnerships. The bank now focuses on serving clients who value expert input and are open to soliciting advice from their bankers, attorneys and CPAs.

Maust also recognizes the value of learning from established players in the fintech space. “Working with established banks that have successfully navigated the fintech space provides valuable insights for newcomers,” he says.

For Maust, the real value of community banking lies in the relationships it fosters. “It’s about being there for our clients when they need advice and providing a sense of security in a constantly changing financial world,” he says. “That’s how we’ll continue to serve our communities—by staying agile, staying engaged, and always looking out for what’s best for our customers.”