wisconsin community bank

Schenk’s Corners Branch Is Neighborhood Cornerstone

8

Reading the Economic Crystal Ball

12

The Future of Mobile Banking

18

Volume 14, No. 6

November/December 2014

Richard BuschPRESIDENTROYAL BANK Committee member, Bank Services CommitteeICBA Federal Delegate Board, State DelegatesAssets: $320 million

Steve EagerPRESIDENT AND CEOUNION BANK & TRUST COMPANYSubcommittee on LendingAssets: $213 million

Paul Ho� mannPRESIDENT AND CEOMONONA STATE BANKSubcommittee on LendingAssets: $376 million

Daryll LundPRESIDENT AND CEOCOMMUNITY BANKERS OF WISCONSINPresident/CEO ICBA Federal Delegate BoardSRP Executive (ex-o� cio)

H. Butch PomeroyPRESIDENTTHE INTERNATIONAL BANK OF AMHERSTICBA PACAssets: $53 million

John SlatkyPRESIDENTBANK OF LUXEMBURGBank Operations & Payments CommitteeICBA Federal Delegate BoardAssets: $264 million

Paul McGuireEXECUTIVE VICE PRESIDENTNATIONAL SOLUTIONS [email protected]

Contact Paul McGuire for more information about ICBA. Phone: (202) 821-4417

ICBA, THE national membership that protects and rewards; where our advocacy, products and

services provide measurable ROI and our only priority is the community bank franchise!

Grow your bank with us in

WISCONSINGrow your bank with us in

WISCONSIN www.icba.org

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On our cover . . . Following the suggestion of Schenk-Atwood neighborhood residents,

Monona State Bank decked out its Atwood Avenue branch for the holidays this year. It had been years since this neighborhood hub had been decorated. To see more about this effort, turn to page 20.

— BOARD OF DIRECTORS —Jerry O’Connor, The National Bank of Waupun

2014–2015 ChairmanFred Siemers, River Cities Bank, Wisconsin Rapids

Chairman ElectDennis Doyle, Great Midwest Bank, Brookfield

Vice ChairmanStan Leedle, Choice Bank

Past ChairmanPaul Hoffmann, Monona State Bank

Past ChairmanJim Tubbs, State Bank of Cross Plains

Secretary/TreasurerRick Busch, Royal Bank, Gays Mills

ICBA DirectorJohn Slatky, Bank of Luxemburg

ICBA DirectorDan Ravenscroft, Royal Bank, Mauston

BOLT Board Chairman

Community Bankers of Wisconsin • 455 S. Junction Rd., Ste. 101 • Madison, WI 53719 • Ph: 608.833.4229 • Fax: 608.833.8114www.communitybankers.org • E-mail: [email protected]

COMMUNITY BANKERISCONSIN

November/December 2014 • Vol 14 No 6

8 Reading the Economic Crystal Ball

12 Manage Risk, Reward with ALCO

14 Best Banks to Work For

16 Staying Ahead of the Regulatory/Interest Rate Cycle

18 The Future of Mobile Banking: Big Data Is Here

COMMUNITY BANKERISCONSIN

Published by Community Bankers of Wisconsin through Client CommunicationsDoris Green, Editor and PublisherMary Lou Santovec, Contributor

Lisa Imhoff, Grey Horse Studio, Art DirectorEditorial: e-mail Doris Green at [email protected]

Advertising: Jami Erickson, Director of Member Communications, at 608.833.2386 or contact Doris Green

Wisconsin Community Banker is provided at no cost to CBW members. The current and past issues are available on the CBW Web site: www.communitybankers.org.

— CBW STAFF —Daryll Lund

President and CEORick McGuigan

Executive Vice President

Sandra GruberDirector of Member Services

and Information Management

Shannon SchlueterDirector of Membership and Training

Jami EricksonDirector of Member Communications

and Association ProgramsLori Greene

Administrative Assistant

— REGIONAL DIRECTORS —– Northwest District –

Paul Kohler Charter Bank, Eau Claire

Jim Loe Pioneer Bank of Wisconsin,

Ladysmith

Travis Holt Citizens State Bank of Loyal

– Northeast District –Marty Reinhart

Heritage Bank, MarshfieldBrad Grant

Calumet County Bank, Brillion

Sue Paoli First National Bank

of Niagara

– Southwest District –Steve Zeman

Union State Bank, West Salem

Doug Martin Livingston State Bank

Mary Bomkamp Highland State Bank

– Southeast District –Bill McDonald

Greenwoods State Bank, Lake Mills

Thomas Oehler Peoples Bank, Elkhorn

Tom Jensen First National Bank of Berlin

4 Wisconsin Community Banker November/December 2014

Chairman’s View by Jerry O’Connor, CBW Chairman

CBW/WBA Merger: Bringing the Best of Both Together for the People of WisconsinOn behalf of the CBW Board of Direc-

tors I am pleased to report that following a careful review, an agreement to merge the Community Bankers of Wisconsin and the Wisconsin Bankers Association has been approved and recommended to the CBW mem-bership. Membership ballots were mailed to all CBW members on Dec. 9.

For several months, the executive officers of CBW and WBA have been meeting to discuss a merger of our associations. Throughout this process our focus has been on our members and striving toward a common goal of doing what is in the best interest of the Wisconsin banking industry. We believe this merger of two strong associations under the WBA name will enhance for your benefit our common mission of provid-ing services in advocacy, education, and innova-tive products and services while creating new opportunities for growth.

CBW and WBA have partnered success-fully on a salary survey, Capitol Day, political fundraising, TEFRA challenges, educational programs, and other association services. These important initiatives would not have been suc-cessful without your support and have demon-strated that working together enhances member-ship value, provides efficiencies, and allows for greater influence.

One merger benefit will be a reduction in the dues paid for the 186 financial institutions that are members of both CBW and WBA. The CBW Board of Directors has approved a dues holiday and no CBW dues will be assessed for the upcoming year. For the CBW member banks

who are not currently WBA members, we would like to say “thank you” for your past support and encourage you to take advantage of the many services that will now be offered by a combined association.

Those CBW members that are also WBA members will receive (by separate mailing) another set of documents including another vot-

ing ballot. If you are a member of both associations, you must return both ballots for your vote to count in both association decisions. Please return your CBW ballot in the Godfrey & Kahn postage-paid envelope, so that it is received no later than Dec. 30, 2014. All CBW

ballots will be tabulated by Godfrey & Kahn.As community bankers, you are aware of the

increasing challenges you face including market competition, regulatory burden, public image, and succession planning. We believe this CBW/WBA merger will result in a more powerful orga-nization, allowing us to better serve your needs, using our association resources more effectively, and enhancing our advocacy efforts on your behalf. If approved, the combined membership will continue to be comprised of primarily com-munity banks. On behalf of the CBW Board of Directors I encourage you to review the enclosed information and return your ballot supporting the merger of CBW and WBA. Thank you for your consideration.

Jerry O’Connor is President and CEO, The National Bank of Waupun

Please return your CBW ballot in the Godfrey & Kahn postage-paid envelope, so that it is received no later than Dec. 30.

Matt Kajewski 715.271.0937

Northern WI

Jeff Niesen 608.577.8081

Southern WI

Rob Shetter815.441.2656

Southern WI

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The team of professionals we have assembled at Bankers’ Bank provides a level of expertise and service unparalleled in the marketplace. Partnering with us supplies your bank with countless years of proven industry know-how. Let our team go to work for you, supporting your goals and aiding you in serving your customers.

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Millennial Generation: A Good Match with Community BanksThe surprising results of the 2014 ICBA

American Millennials and Banking study show that the future of community banking is very bright. As we continue to reach out to cus-tomers and respond to their needs in media that they use, Millennials will become community banks’ best customers.

Conducted with the Center for Generational Kinetics, the study surveyed more than 1,000 nationally representative Americans age 19 and over, including small samples of Gen Xers (aged 38–49) and Baby Boomers (aged 50–68), as well as Millennials (age 19–37).

Among the surprises: Millennials are inter-ested in learning more about local banks, prefer locally owned and operated community banks, and are by far the most entrepreneurial genera-tion, with almost half (46 percent) saying that they are interested in learning about starting a small business. Considering that community banks provide nearly 60 percent of all small busi-ness loans under $1 million, this is good news for community bankers.

That’s not all: Almost a quarter of Millennials already earn at least part of their income from a business they own or have a stake in. And over 60 percent of Millennials who intend to start their own business hope to do so within the next two years.

The impact of the Millennials on Wisconsin community banks will be immense and immedi-ate. This generation numbers almost 80 million and is the largest to enter the marketplace since the Baby Boomers. Millennials are now begin-ning to establish long-term banking relation-ships. In fact, they represent the greatest lifetime

value of any banking customer and are already the fastest-growing generation of new customers at many community banks.

Like other Americans, a majority of Millenni-als (54 percent) prefer to work with locally owned and locally operated community banks and a majority (58 percent) felt that banks sometimes treat them like a number. The survey reported that two thirds of all Americans (66 percent) agree that they “wish relations with banks were more personal.”

The Millennial generation represents an enor-mous opportunity for community banks. In order

to reach them, the study offered three recommendations:

• Create an Entrepreneur Advi-sory Board representing multiple generations.

• Make Millennial customers feel like VIPs by introducing them

to bank employees, asking them how they would like to be contacted, and inviting them as guests to events, such as sporting events, fashion shows, and non-profit fundraisers.

• Adapt to Millennials’ communication profile by telling your bank’s story visually, using screens rather than brochures, and offering to connect via LinkedIn, texts, or email.

These recommendations are not only useful to individual community banks, they are also helpful to CBW as we consider how best to serve new generations of community bankers. BOLT (Building Our Leaders of Tomorrow) and our Leadership Development for Community Bank-ers program are steps in this direction as CBW emphasizes the Millennial generation in planning for the future of our industry.

Reach Daryll J. Lund at [email protected].

Serving You Daryll J. Lund, CAE, CBW President and CEO

The impact of the Millennials on Wisconsin community banks will be immense and immediate.

November/December 2014 Wisconsin Community Banker 7

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Reading the Economic Crystal BallMary Lou Santovec

Pressure is building on the Federal Reserve to raise short-term interest rates, and longer-term interest

rates are unlikely to rise dramatically, said Craig Dismuke, senior vice president and chief economic strategist with the Memphis-based Vining Sparks. Dismuke used a variety of data sources to support his assertions in September at the Community Bankers of Wisconsin’s annual Management Conference & Expo.

During the second quarter of 2014, GDP rebounded from the hit the economy took during the first quarter thanks to the harsh winter weather. Just how bad was last winter? It was the third coldest on record for some states; others had the coldest winter ever.

The economy is stable, but it’s not accelerating. With weakness in housing, consumer spending, and investment, Dismuke predicts that it’s likely the United States will end up with 2 percent growth this year, a far cry from the 3.6 percent GDP the economy has averaged since 1950. But at least it’s on the right path.

Many Reasons to Raise RatesThere are several reasons why the Fed will need to raise

short-term interest rates: the economy is forming multiple asset bubbles and the efficacy of easy credit is now question-able. The labor market is tightening and there’s less risk of disinflation. And, like the monarch butterflies that return from their winter home in Mexico every spring, there is no response mechanism other than bond purchases for the next economic down-turn, which everyone knows will occur sooner or later.

“The Fed has kept interest rates at zero for the past 47 consecu-tive Fed meetings and the past 68 consecutive months.” These low interest rates are hurting consumers who rely on inter-est income. Much like a row of dominoes waiting for the first one to fall, low interest rates have kept seniors, who had planned for a 6 to 8 percent return on their money during retirement, from leaving the workforce. This delay prevents newly minted college graduates from finding their first jobs.

“The historical participation rate for people over 65 in the workforce is 18 percent. Today, it’s 20 percent.”

With a growth rate of 200,000 jobs per month, the

trend is in the right direction, but it certainly lacks enthu-siasm. Unemployment fell from a high of 10 percent to 6.2 percent for the long-term unemployed (those without a job for more than 28 weeks) and to 4.1 percent for those unem-ployed for the short-term (28 weeks or less). These numbers are the lowest since July 2008.

Some Sectors Rebound, Others LagTwo sectors that haven’t rebounded are construction

and manufacturing, which lost 3.2 million jobs. Meanwhile health care has added 2.5 million jobs. This mismatch points to unemployment being a structural problem, one where monetary policy isn’t effective. Only cyclical policy changes will move the needle.

During the Great Recession, some 9.23 million workers left the labor force; with some 70 percent of them retir-ing. Despite having time on their hands, don’t look for that group to drive the economy. Older households don’t tend to leverage. They also spend less than those in the peak earn-ing ages of 35 to 54. This slows the velocity of money and the GDP.

The trend toward people leaving the labor force con-tinues, although at a much slower pace than

when unemployment was at 10 percent. There’s not been a great migration of

those who were laid off coming back in although the layoffs are down to

1.58 million, the lowest in the last 15 years. Even though the quit rate is relatively low, companies are having difficulty in find-ing workers to fill available positions.

Higher Wages on the HorizonLack of available workers will

likely result in higher wages. “The more openings we see that aren’t translating to job growth, the more likely average hourly earnings will tend to increase.” Higher wages will keep pressure on inflation and take away the Fed’s worries about disinflation.

Consumers’ balance sheets have been repaired from the 2008 crash but because consum-ers haven’t seen their incomes


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grow, their spending remains cau-tious. The average age of the automo-bile on the road today is 11.4 years. Millennials are eschewing home pur-chases, preferring instead to gather in high-rise apartments in city centers, resulting in lower vacancy rates and more pressure on rent prices.

It’s not only Millennials who are choosing to rent. Some 10 percent of tenants are people in default who can’t buy homes. “Rising rents will likely continue and keep pressure on the core consumer price index,” Dismuke said. “My risk of running at a .7 CPI is low compared to a few years ago.”

Long-term interest rates won’t rise much and inflation won’t get out of hand. The growth outlook is much weaker due to an aging population and limited gains in productivity. Since 1950, average GDP has been 3.6 percent. The Congressional Budget Office, a bipartisan budget-ary group, forecasts 2.1 percent GDP over the next 10 years.

Historians know that there have been only two times when productiv-

ity growth exceeded 2 percent: the Industrial Revolution and the Tech Revolution. For gains in the GDP, the United States will have to rely on growth in productivity for economic growth, because population growth over the next 40 years is expected to be at 0.4 percent.

Other headwinds that the econ-omy will battle include the massive government debt that must be ser-viced. That debt and interest expense will crowd out productive invest-ments. Also troubling are the deci-sions coming out of the Euro zone and the overall global weakness.

“Evidence is finally going to over-whelm the Fed” and they will finally raise rates. Dismuke predicts that the rate on Fed Funds will increase in March; other economists point to July 2015 as the likely date.

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Total Lending, Net Income Up at Wisconsin Banks

The FDIC’s third-quarter report brought good economic news for Wis-consin banks. The 252 banks headquartered in the state had a total income of $255.7 mil-lion during the quarter, compared to $238.7 million during the same quarter of 2013.

• Profits rose about 7 percent dur-ing the third quarter

• Total loans and leases posted a 5.3 percent increase to $70.8 billion during the third quarter. This com-pares with a total of $67.3 billion in 2013.

• The great majority of state banks (94.5 percent) were profitable.

• Commercial lending increased 14 percent over the past year.

Wisconsin’s 190 state-chartered banks reported growth in total lending and net income over a year ago: Total lending increased 6.2 percent while net income rose 2.4 percent.

Peter Bildsten, secretary of the Department of Financial Institutions, said: “It’s especially encouraging to see healthy year-over-year loan growth, with capital at near-record levels and loan portfolios continuing to improve.”

Michael Mach, administrator of DFI’s Division of Banking noted that “past due loan ratios continue to decline in all major loan categories—real estate, consumer, and commer-cial. As a result, state-chartered banks significantly reduced their net charge-offs to less than half of what they were a year ago—from 0.51% to 0.24%.This has had a big impact on banks’ bottom lines.”


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Manage Risk, Reward with ALCOMary Lou Santovec

Banks are in business to make money. And bankers are paid to

take risks. A bank’s asset/liability com-mittee (ALCO) helps ensure man-agement is able to make money without risking the bank’s safety and soundness.

At the Community Bankers of Wisconsin Management Conference & Expo in September, Jim Broucek, former regional CFO of a Michigan bank and now senior manager of the strategic advisory team in the financial practice group at Wipfli LLP, spoke about the current state of asset/liabil-ity management.

Banks are facing both interest rate and liquidity risks. Managing these risks is more of an art than a science. Is your bank being compensated appropriately for the risk that you’re taking and the impact those risks have on your organization? If not, what can you change while being mindful of your contractual obligations?

Mother always said not to put all your eggs in one basket or you’ll risk a lot of broken eggs. ALCO and mom have a lot in common. Whether operating at the management level or the board level, ALCO is charged with giving direction, overseeing, and

managing risk. Taking into account capital, liquidity, and market sensi-tivity, ALCO helps set limits on the maximum amounts in the major asset/liability categories and assumptions for the likely behavior of the contents of those categories, as well as the future and how to help manage it.

Improving the ALCO ProcessThe ALCO process is ever-evolving.

How do you measure the impact of your decisions and show the progress you’re making to your board and the regulators? One way is to take a his-torical look before determining how you will measure it in the future.

Are you comfortable with the level of interest rate and liquidity risks that you have today? How does your future strategy impact this?

Some things to consider: how much liquidity does your bank need, how do you measure liquidity and how will future originations be funded? If you’re counting on using your check-ing account balances to fund a $5 million loan, understand that you’d need 5,000 checking accounts with a minimum of $1,000 in each of them to be able to make that loan.

Deposit growth funds asset growth. Is your deposit growth supported by the appropriate deposit pricing strate-gies? “Your excellent service won’t bring in more people,” Broucek said. Deposit pricing has to be a lure to get them in the door — but it shouldn’t

penalize your existing customers. How much capacity does your

organization have to grow loans and deposits? Balancing your bank’s capabilities could include adding extra loan officers. The ALCO will need to know what you expect the estimated margin on incremental growth strate-gies to be.

Do you project the impact of growth strategies on your bottom line? Do you like the financial results? If not, what can you do to realistically change the results? Each bank has its own risk comfort level.

All the numbers or assumptions that go into the risk/reward equation change the outcome. No crystal ball will tell you what’s going to happen to your balance sheet if things remain stable or if interest rates go up. With the potential for rising interest rates on the horizon, bankers must ask themselves where they want to go when those rates ultimately go up.

There are always new products to offset rising interest rates. But rolling out new products takes IT support. Make sure you have the capabilities before you launch. Don’t forget that with loan and deposit pricing, your bank won’t be able to move on a dime when the interest rate climate changes.

Whatever you do, make sure you can tell your story and the reasons behind your decisions to the ALCO, to your board of directors, and to the regulators. When you put a number on paper, it’s just a projection.

Regulators may not have been aggressive before the 2008 crash but their perceptions on risk have changed and their behavior along with it. The regulators really want to know that you’re trying to manage risk, Broucek noted. They love to see documentation and dialogue in the minutes of the meetings.

If the regulators are concerned, they’re going to ask you to do things that might be painful. Since an ounce of prevention is always better than the need to cure, think about what you would like to improve. Because a model can be made to say anything,

• If you need to roll out new products, do you have IT support to meet the deadlines established?

• ALM is an art, not a science.• Make sure that you can tell the story to the ALCO, to the BOD,

and to the regulators.• Being able to think about what you would like to improve

and having a plan should be easier than having the BOD or regulators tell you what to do.

• Review improvements with regulators before and after the change and take credit for improvements.


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have a plan. Review improvements with the reg-

ulators before and after the changes. You need to take credit for the improvements and the thought that went into the decisions. For example, there might be a piece of your balance sheet that would be a perfect fit for Internet or brokered CDs. Document what you did.

Core Deposits and Core Deposit Analysis

Many bankers treat all non-con-tractual maturity deposits and lower balance customer CDs (say below $100,000) as core deposits. These deposits provide cheap funding espe-cially if you’re the only bank in the area and you’ll be able to lag on repricing.

Core deposits and core deposit analysis are regulatory issues and regulators are definitely concerned about them, especially the prevalence of “surge” deposits.

Recent growth has come from customers switching from certificates, rotating out of low-yielding broker money market accounts, and the impact of the Federal Reserve’s bal-ance sheet growth, or what the regula-tors call “surge” deposits. Regulators are very concerned about the impact on pricing and longevity of non-maturity surge deposits since they may react much differently than the historical nature of the bank’s non-maturity deposits.

A deposit study can utilize histori-cal data to project the future. If your deposits have grown, is it due to your pricing, competitor pricing, and/or client behavior? If not surge deposits, what’s fueling your growth?

Other considerations: Do you know the mix and the historical trend of deposits by product? Do you know what deposits are at risk for either leaving the bank or moving from a lagging rate product in the future to a higher rate product?

How “sticky” are your deposits? For example: is that $250,000 money mar-ket product a single product for the customer or does the deposit include several accounts and ACH accounts? The larger the balance, the more at risk it is.

1st National Bank volunteers helped build a home through Habitat For Humanity.

Best Banks to Work ForAmerican Banker magazine placed

North Shore Bank at the top of its list of the “Best Banks to Work For.” The annual award recognizes U.S. banks that offer employees competitive salaries and benefits, and that strive to make team members feel valued and engaged.

North Shore was recognized for initiatives like its annual worn flag collections and community shedding day, as well as its employee wellness program offerings, like free flu shots and biometric screenings.

Other Wisconsin community banks named to the honor this year include Manitowoc-based Bank First National, Berlin-based 1st National Bank, and Eau Claire-based Charter Bank.

Listed as number three in the nation, 1st National Bank offers its

employees flexible work schedules, paid time off for both volunteering and employee birthdays, and wellness benefits.

1st National Bank pays employees to volunteer during a normal work day, allowing them to enjoy a field trip with their children or spend time helping a local organization. And, birthdays are paid holidays too, so employees can spend their special day doing whatever they choose.

An emerging initiative, the bank’s wellness program sponsors challenges that have team members encouraging one another to be healthy, with prizes ranging from gift cards to Packer tickets. Another benefit is the ability to have organic vegetables delivered to their workplace.

Review the ages of your custom-ers stratified by deposit dollars. For elderly depositors, service is key and rates are important, but how many Millennials have their money in CDs? Being able to capture and understand your data is critical.

Interest Rate Risk AssumptionsIn a net interest income analy-

sis, making assumptions involves stress testing the figures. The more data you collect, the better assump-tions you make, which leads to better decision-making.

What drives interest rate simula-tions? In many cases it will be asset prepayments. Assumptions drive all

interest rate risk analysis. For the longer term interest rate risk, use the market value of equity.

Make sure your ALCO policy covers documentation. Document all assumption changes — including the impact of changes in large assump-tions — and have them reviewed by key ALCO personnel in the process. Have ALCO approve them after seeing their impact. Do this annually.

Knowing the impact of potential changes in your key assumptions can also be called stress testing. Under-standing and being able to articulate stress testing results may help reduce the focus on the “correctness” of your key assumptions.


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Staying Ahead of the Regulatory/Interest Rate CycleAjay Ganju, CFA; Kent Musbach, and Brett Patten of The BOSC Institutional Strategy Group, BOKF, NA/BOSC, Inc.

This article relies on recent federal agency reports to suggest action-

able ideas that community bankers can use to prepare for the next exam and interest rate cycle.

The Office of the Comptroller of the Currency recently released the Semi-Annual Risk Perspective from its National Risk Committee. The report, based upon year-end 2013 data, details the key issues the OCC sees facing the industry as a whole. In this article, we focus briefly on the earn-ings and interest rate risk components noted in the report.

The OCC document comes on the heels of the FDIC Supervisory Insights publication which, in part, reported an increasing number of items related to interest rate risk that require board attention. We traditionally have viewed these reports and similar publications from the Federal Reserve, as a meaningful blueprint for what future examination cycles could focus on. Dissecting these publications for parallels to specific issues impacting your bank can serve as a step toward confident exam preparation.

Earnings Pressure and the Rate Forecast Backdrop

The stubbornly slow economic recovery was difficult to diagnose early after the recession ended in 2009. The corresponding prolonged period of very low interest rates has confounded economic forecasters for the better part of five years.

For example, according to the Blue Chip Financial Forecast in July 2009, expectations for the Fed Funds rate two years out (2011) was a whopping 3.26 percent. Contrast that with the current forecast for a 1.80 percent Fed Funds rate in 2016. This misdiagnosis early on in the recovery had the effect of tamping down the willingness of many banks to extend three- to five-year fixed rate loans or add long-term assets to the investment portfolio —

both common practices today. On the liability side, depositors,

too, have been unwilling to tie up funds beyond 12 months, resulting in ballooning non-maturity deposit bal-ances across the industry.

The depositor, having missed the opportunity to lengthen deposits, is likely to stay short for the foreseeable future, while the banker has no such luxury with non‐interest expenses to cover and capital to deploy.

This is precisely one predicament that the OCC points to in the key risks facing community and midsize banks today. Persistently low rates and a slow growing economy have led to an era of incremental lengthening of assets, loosening of lending standards, and short‐term retail deposits. In addition, the tailwind of minimal loan loss pro-visions or even reversals will not likely continue as regulators appear focused on loosening credit standards and may lean toward increased provisioning.

Interest Rate RiskThe OCC has stated it will be

incumbent upon each bank to “accu-rately identify and quantify” rate risk on both sides of the balance sheet. Specifically, they have called out non-maturing deposits and invest-ments. This, however, is by no means the beginning and end. The process under which rate risk is determined is expected to be under review as well.

Growing non-maturity deposit balances, in particular, have captured regulatory attention. At the same time, the industry grapples with ascertaining reasonable assumptions for the future lives of those deposits. Amongst the difficulties in document-ing appropriate assumptions is the absolute low level of interest rates and the lack of a historical benchmark for a half decade of very low, flat rates.

Community and midsize banks should enact a process to develop institution-specific histories of non-maturity deposit account dura-tions. Continually tracking specific groups of accounts over specified time

From left: Sydney Rasmussen, Jessica Anderson, and Anna Peterson in front of the mural they helped to create. Photo by Hal Kravig

Students Design Bank MuralUNION GROVE—Under the leadership of Hal Kravig, art instructor, stu-dents from Union Grove High School recently painted a creative fall mural on the windows of Community State Bank’s Motorbank facility.


Liquidity Planning

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periods is just the start. Document the number of accounts at the beginning and end of a period plus corresponding balances in the analysis in order to help determine decay rates. Banks should also account for surge balances in these calculations.

On the asset side of the ledger, growing concentrations in negatively convex securities, notably mortgage and agency step‐up securities, will likely receive enhanced scrutiny. Banks should identify the securities with the most risk while quantifying how future cash-flow and market value changes would impact liquidity and capital levels.

Vary Scenarios to Identify and Quantify RisksYour current customers are most responsible for the rate

risk position you are in today. As such, it is important to understand where the risks lie within your current balance sheet.

Future growth can mask risks, and often you can’t grow fast enough to offset the existing interest rate risk. Scrutiniz-ing your potential rate risk over a variety of realistic rate and balance sheet mix scenarios is expected by regulators:

• What happens if loan or investment prepayments slowdramatically as rates rise?

• What level of deposit migration would be tolerablebefore rising deposit costs require the bank to take correc-tive action?

• At what point would you entertain longer-term whole-sale funding to mitigate rate risk?

• What future margin impact will ARM structure loanshave during their adjustable period?

• What is the risk to loan portfolio performance fromdecreasing debt service coverage ratios in a rising rate environment?

Finally, remember to consider:• What happens to your net interest income if rates are

not higher in 2016? This question would have been a great one to ask every year since 2009.

Reach the authors and The BOSC Institutional Strategy Group (BOKF, NA/BOSC, Inc.) at 866.440.6515.

Anchor Launches IPOMADISON—A year after its recapitalization and fresh from the lifting of its final regulatory action, AnchorBancorp, the parent company of AnchorBank, launched an initial public offering of 371,959 shares of stock. The shares came from both the company, which offered 250,000 shares, and stock-holders who offered 121,959 shares.

The IPO price was $26 per share and the shares were traded on the NASDAQ Global Market under ABCW, the symbol that the company used prior to bankruptcy in 2013.

Hoping to raise between $4.3 to $5.7 million to be used for general corporate purposes, the company raised $10 million. Anchor BanCorp is the third largest bank head-quartered in Wisconsin with 54 locations.

www.younginc.com


The Future of Mobile Banking: Big Data Is HereMary Lou Santovec

The future was being made while you were at lunch,” Lee Wether-

ington told the CBW members in attendance at the association’s Man-agement Confer-ence & Expo in September.

The future that Wetherington referred to was Apple’s announcement of its new devices that will work with Apple Pay. “Apple Pay has recalibrated the mobile payments landscape.” The product replaces a number of cards with a device and a token that allows the user access to multiple accounts.

Lest bankers worry over more lost market share, Wetherington assured them that “mobile payments will reinforce your card franchises, not cannibalize [them].”

Will it be one of your bank’s cards that customers put into their Apple Pay accounts? Or one of your competitors’?

Wetherington, director of strategic insight for ProfitStars, a division of Jack Henry & Associates, provided a forecast and summary of industry research on online, mobile, pay-ments, and branches in his conference presentation.

The Holy Grail of DataBankers have the “Holy Grail” of

data in the era of Big Data, he said. Google wants what banks have. Google Wallet 1, 2, and 3 were the company’s attempt to enter the world of banking in order to gain access to data. Yet Wetherington all but guar-anteed that banks will win the mobile and data wars.

Still, the way that consumers make

transactions is changing: • Fewer transactions are consum-

mated every month at brick-and-mortar sites.

• The cost of building and staffing branches continues to rise.

• It’s likely there will be a 30- to 40-percent reduction in the total num-ber of financial institution branches over the next 10 years.

• The number of cash transactions is down.

• Some four to six percent fewer checks are being written.

Emergence of a New Market SegmentDuring the Great Recession,

off-the-shelf prepaid cards became popular as Millennials discovered they couldn’t overdraw the account or get charged for overdrafts. Pre-paid isn’t solely for the poor or unbanked; even 20 percent of wealthy consumers have prepaid cards. “Prepaid is unhing-ing money storage from traditional checking.”

Some customers already use Wal-Mart’s Bluebird card, developed in conjunction with American Express. The card has a very robust mobile app that makes it look, behave, and feel like a checking account.

We’re witnessing the emergence of a new market segment — the pre-banked and de-banked consum-ers. The “pre-banked,” according to Wetherington, are the 90 percent of people who own a prepaid card and a checking account. The “de-banked” are those who choose to manage their financial lives without a checking account.

Mobile is growing and reinforcing the primacy of a bank’s card fran-chise. Credit card volume is up and is expected to produce five to seven percent compound annual growth rate through 2019 despite the drop in interchange rates due to the Durbin

Amendment.We’re reaching a tipping point,

Wetherington said. Bank bottom lines aren’t growing at double-digit rates anymore. Profit margins are flattening. Free checking will become an issue as the losses on these accounts may no longer be subsidized by interchange fee income.

Existing point-of-sale structure will be unable to handle Apple Pay. Mer-chants will have to spend billions to replace the technology to handle the new, more secure types of credit cards. It’s time for community banks to make their move.

Mobile TrendsAdoption of mobile banking

jumped between 2012 and 2013 due to the increase in the number of Smartphones. Half of all adults with a mobile phone will soon be doing mobile banking. Mobile remote deposit (MRD) is the on-ramp to “photo-banking” and key to banks’ migration of 55 million online cus-tomers who have yet to use mobile banking.

The fewer the checks being writ-ten, the more important MRD will be for consumers. If you only have one or two checks to deposit, you will still have to run down to the bank to deposit them. “It’s the segue for those who have yet to use mobile banking.” For banks, it’s a win-win since mobile costs are cheaper than online, which are cheaper than human transactions.

Some consumers are holding back because of security issues. But if the recent hacking incidents are any indi-cation, user names and passwords are dead. Half of us recycle old passwords. The more online accounts, the fewer passwords and the more potential for fraud. “Concerns melt away in the face of convenience.”

Signatures are also worthless. We need faster, more secure ways of keep-ing data safe, and the Smartphone’s camera and biometrics may be the answer. Biometrics is rebooting the security metrics around mobile bank-ing. EyeVerify uses the vein pattern

“

Biometrics will boost perception of mobile banking security.


of the eye, unique to each person, to verify that the user is who they say they are.

Data Analytics Data analytics are now being

used as predictive tools. Community bankers can employ data mining to improve their bottom line perfor-mance. No need to pay for expensive, demographic research when deter-mining where to put a new branch. Your ACH data can tell you that. Just figure out where most of your custom-ers live and where they shop and put a branch there.

What do your customers buy, how often, from whom, and for how much? Mobile/digital wallets affect where people shop, what they buy, and how much they pay. They help determine whether or not it’s the right product, at the best price, and the most appropri-ate type of payment. This is the “Holy Grail” of big data and you have it now.

Activity-based marketing is defined by Ron Shevlin as “marketing within the context of an activity being per-formed by a customer or prospect.” An example of activity-based mar-keting from a financial institution is perpetual loan approval to inform a customer’s decision whether or not to buy.

Studies find that some Millennials, or what Wetherington calls Genera-tion Y 1.0, have a lower standard of living. They have higher poverty,

higher student loan debt, and higher unemployment than the two previ-ous generations. They’re disengaged financially.

Many Millennials also have impulse control issues — it’s not real money if I can use a card to pay for it. More than half report spending more money when using mobile banking.

But there is also a group of wealth-ier Millennials that Wetherington calls Generation Y 2.0 who are Money Hawks. These 25- to 34-year-olds manage a complex portfolio of finan-cial products and have their biggest earning potential over the next 10 to 15 years. As they age, they will gener-ate an increasing number of bills and will want control over their finances to make it easier to stay within their budgets. “You are perfectly positioned to be what Generation Y needs.”

Going forward, banks, Wether-ington said, must master their data

and provide personalized ads for the bank’s products and services across all channels. Banks also can plan to curate “partners” who may use the bank’s ad engines to serve customers with relevant ads that can be one-clicked to acquire a product or service. In short, banks can plan to earn ad fee income while wearing a white hat.

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When Monona State Bank opened its Atwood Avenue office on Madison’s near east side, it brought community banking back to the site for the first time in years.

Designed by Frank Riley and com-pleted in 1923, the Georgian Revival building first served as an office of Security State Bank. Standing tall at the triangular intersection of Atwood Avenue and Winnebago Street, the bank anchored the Schenk-Atwood neighborhood and served as the cen-ter of its retail area.

For longtime Madisonians, there’s always been a bank on the corner, though over the years the name above the pillared entrance periodically changed. Monona State Bank took over the location from Chase Bank in 2013.

Paul Hoffmann, Monona State Bank president and CEO, noted, “It has been many years since a locally-owned bank has been located in the Schenk’s Corners … We’re proud to bring true community banking back to Madison’s east side.”

The bank has made a special effort

to listen to customers and support local events and artists. In addition to the Christmas tree towering beneath

the sky-lit rotunda, a bottle-cap tree created by Angela Richardson stands near the customer service desk in the lobby. The local artist crafted the sculpture during Atwoodfest last summer from thousands of bottle caps brought to the bank by area residents.

Monona State Bank also published a 2015 calendar featuring the work of Steven Kozar, who creates hyper-realist paintings in watercolor, oil, or acrylic. After photographing various scenes — often Madison-area land-scapes — Kozar paints over many layers to create his much sought-after artwork.

Monona State Bank Branch Stands as Cornerstone of the Neighborhood

Calendar features the art of Steven Kozar.

Standing in the bank branch lobby, the Cap Tree represents the contributions of many neighborhood residents.


Use Ours!Bored with your Boardroom?

And stay to enjoy Chicago.

— David V. Nosbisch, President of Durand State Bank

We took senior management and our Board of Directors for a day with FHLB of Chicago and appreciated the hospitality as well as the insight of all. Comments

from the directors was ‘let’s do it again next year.’ Thanks again.

“

”

Promoting Innovation Support during all financial phases and cycles is just one of many benefits the Federal Home Loan Bank of Chicago provides to member financial institutions in Illinois and Wisconsin. We’d like to introduce a benefit to promote member innovation—host your meeting in our boardroom.

While utilizing our new boardroom, you can also hear the latest news and views from the Federal Home Loan Bank of Chicago:• Matt Feldman, CEO & President discusses what’s happening in Washington and 7th District headline news.*

• FHLBC Executive Team members present strategic initiatives and benefits of membership. * Schedule permitting

Member owned. Member focused.Once your business day has concluded, please consider staying for dinner, a show, or an overnight visit. We’d be happy to supply you with a list of suggestions and contact information to assist you in planning your visit.

For more information, please call your sales director or (312) 565-5700.


BOLT Winter Summit Focuses on Leadership, Mobile Banking, SecurityMary Lou Santovec

The second annual BOLT Winter Summit drew 100 leadership bankers to Wisconsin Dells in December. Rep-resenting some 50 banks, the Summit featured sessions on leadership, ethics, mobile banking, and IT security.

Linda Haynes, learning and devel-opment manager with Wipfli LLP, spoke on “Leaving a Legacy.” Haynes views “legacy” as something that’s cre-ated step by step in the here and now. It’s not “out there” in the future.

Legacy is grounded in principles, not fads. Relying on the work of the late Dr. Stephen Covey and his book, The 7 Habits of Highly Successful People, Haynes walked the audience through the steps of Inside Out Lead-ership that utilizes Covey’s work to develop leaders. According to Covey, leaders are not born or made — they choose to be leaders.

Regina Barr also spoke on leader-

ship. Barr, a former bank marketing executive and founder/CEO of Red Ladder, Inc., presented innovative ways to evaluate oneself as a leader from the perspective of a follower.

According to Barr, followers judge good leaders based on five attributes: attitude, humility, loyalty, opportunity, and popularity.

“Every decision you make, every

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“Information technology is changing at a rapid pace,” says Marty Reinhart, President/CEO of Heritage Bank. “In order to compete in the financial services industry, we need to constantly make investments in upgraded hardware and operating systems. As a community bank with limited resources, we look to our IT partner, Locknet®, for that.”

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BUSINESS PROFILE:Heritage Bank has offices in Spencer and Marshfield, WI.

product you buy, every time you get up when your alarm goes off, you’re leading to ethical or unethical behav-ior,” said Dr. Denis Collins, professor of business at Edgewood College, who spoke on how to maximize ethical behavior.

Ethical leaders create a culture in the organization where ethics thrives. They start meetings on time because if they start late, they’re setting an example that others can “squeeze the ethical line.”

There are competitive advantages of being ethical, Collins said. In his book, Essentials of Business Ethics, he noted that ethical organizations tend to outlast unethical ones. That’s because they attract and retain higher quality employees, customers, suppliers, and investors, and they earn goodwill with community members and govern-ment officials. They achieve greater efficiency and decision-making based on more reliable information from stakeholders. They achieve higher product quality and employees need less supervision.

Generation Y prefers having

Internet relationships with banks, said Sherrie Krowczyk-Mendoza of McGladrey, because they want 24/7 access anywhere. Krowczyk-Mendoza and Corbin Del Carlo spoke about both sides of the mobile coin, access and security, during their presentation.

How can bankers provide what Gen Y wants and monetize it at the same time? Ad revenue from partnerships can help make it profitable.

But with ease and 24/7 access comes danger. “Gen Y doesn’t look at mobile banking as anything special,” Del Carlo said. Yet mobile banking is the Wild, Wild West and a technical way to steal money without a firearm.

And anti-virus software is “a crutch we can’t lean on anymore.” Know what is “normal” for your computer. When you add new software, know who should and shouldn’t have access. You may not be able to prevent the bad guys breaking in the electronic “vault,” but you can prevent them from getting out of it with the data that they use to make money.

First Federal Breaks GroundBROOKFIELD—A groundbreaking ceremony was held recently for a new First Federal Bank location on Moor-land Road and Greenfield Avenue in Brookfield. Construction is scheduled to be completed in the summer of 2015.

The overall development, known as the First Federal Centre, will include the bank building, at 4,500 square feet, with office space available for lease on the second floor, and a 6,300-square-foot retail center immediately to the east of the bank.

First Federal Bank of Wisconsin is a $250 million institution headquar-tered in Waukesha.

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Wisconsin Community Bank

• A NNIVER SAR IES •

SNBT Celebrates 140th AnniversaryMARINETTE—The Stephenson National Bank & Trust celebrated its 140th anniversary with an open house. “This is a monumental anniversary,” said Daniel Peterson, SNBT president and CEO. “Not only does it mark our 140th [year] but it

is also our first anniversary that we can share with our five new banking offices in Marinette County.”

The merger between The Ste-phenson National Bank & Trust and Bank North was finalized on Oct. 27. The merger added five

new offices and 6,700 new bank customers.

Refreshments were served at all eight banking offices in Amberg, Crivitz Downtown, Crivitz Piggly Wiggly, Marinette, Menominee, Oconto, Pembine, and Wausaukee.

Peoples State Bank Celebrates CentennialPeoples State Bank, Prairie du

Chien, marked its centennial with a late afternoon open house at the Dousman House in October. Com-munity Bankers of Wisconsin and Wisconsin Bankers Association pre-sented commemorative plaques in

recognition of this benchmark anni-versary. PSB serves customers at 14 locations in Southwest Wisconsin and Northeast Iowa.

Pictured, from left: Daryll Lund, CBW; Tom Farrell, PSB chairman; Mark Forsythe, PSB

president and CEO; Rose Oswald Poels, WBA

Waumandee State Bank Celebrates CentennialWaumandee State Bank cele-

brated its 100th anniversary with an open house at its seven locations— Waumandee, Arcadia, Fountain City, Durand, Mondovi, Black River Falls, and Whitehall. The events fea-tured giveaways, snacks, beverages, and, of course, birthday cake!

Bank employees created a 100th anniversary float that appeared in eight parades last summer. “We try to do the parades that are in all of the towns that currently have a branch [or customers],” explained Donna Rotering, retail operations and marketing director.

“It gets to be a full summer and the weeks fly by,” she said. “Our

employees are willing to walk along and hand out candy and other items to the crowds …We do the parades every year, but the cake was special for our 100th anniversary.”

Please join CBW in congratulating the following member banks that are marking significant anniversaries in the fourth quarter of 2014!

140 YearsStephenson National Bank & Trust,

Marinette, on Oct. 30

120 YearsBenton State Bank, on Dec. 5

115 YearsUnion Bank of Blair, on Oct. 7

100 YearsUnion Bank, Augusta, on Dec. 1

Securant Bank & Trust, Menomonee Falls, on Dec. 23

80 YearsFox Valley Savings Bank, Fond du Lac, on Oct. 1

65 YearsRiver Falls State Bank, on Oct. 3

Waumandee State Bank employees created this float in honor of the bank’s centennial celebration.

Pictured, from left: Herb Lallemont, Waumandee State Bank president and CEO, and Rick McGuigan, CBW

Bank Marketing Diploma Cindy Boggess – Citizens Community Federal N.A. Bank Operations Diploma Lakshmy Nair – Tri City National Bank Sheri Redman – National Exchange Bank & Trust Banking & Finance Diploma Benjamin Johnson – Bankers’ Bank Sales & Service Diploma Kris Glunn - AnchorBank Bank Service Provider Certificate Margaret Mordis – AnchorBank Bank Teller Certificate Guenevere Adams – AnchorBank Amanda Lanser – Port Washington State Bank Savannah Pierdzioch – Port Washington State Bank Courtney Sheldon – Port Washington State Bank Anne Rayne – AnchorBank Commercial Lending Certificate Kelly Brockwell – AnchorBank Carolyn Gurevich – US Bank Bryan Johnsen – Tri City National Bank Michael Ott – Port Washington State Bank Seng Vang – AnchorBank Customer Service Representative Certificate Sara Caswell – Port Washington State Bank Cree Hanson – Port Washington State Bank

Intro to Accounting Certificate Tracey Larsen – AnchorBank Lori Tydrich – Mound City Bank Intro to Credit Analysis Certificate Benjamin Johnson – Bankers’ Bank Claudia Rus – BMO Harris Bank Lending Fundamentals Certificate Beth Irwin – Port Washington State Bank Personal Banking Certificate Tonya Bock – Horicon Bank Kate Klement – Port Washington State Bank Sara Caswell – Port Washington State Bank Retail Banking Certificate Tonya Bock – Horicon Bank Sara Caswell – Port Washington State Bank Kate Klement – Port Washington State Bank Sales Certificate Anna Steberg – Horicon Bank Small Business Banking Certificate Patrick Martin – Town Bank Nadia Santos-Clark – Town Bank Supervisor Certificate Sheri Redman – National Exchange Bank & Trust Team Leader Certificate Sergio Acosta – AnchorBank Tamara Hintch – Bankers’ Bank

The Center for Financial Training would like to recognize the following bankers for obtaining a certificate or diploma over the prior 12 months. For more than 100 years, bankers have taken advantage of these AIB, CFT and ABA diploma and certificate programs to prepare for careers in banking or to enhance the skills and knowledge they already possess. The programs are continually reevaluated and refined to reflect the current needs of bankers in their jobs today and changes in the industry. Congratulations!

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COMMUNITY INVOLVEMENT

First National Bank Baseball Field

RIVER FALLS—Over 2,000 commu-nity members turned out for opening night at First National Bank of River Falls Field this past June, and the field hosted over 70 games this summer for the River Falls Amateur Fighting Fish and local Legion teams. First National Bank of River Falls Field was also awarded the 2014 Wisconsin Baseball Association playoffs, state finals, and championship game.

First National Bank of River Falls donated $100,000 for the naming rights of the ballpark. “We are very proud to support this community ball-park,” said Jeff Johnson, First National Bank of River Falls (FNBRF) president and CEO. “The field is beautiful and has already proven to be a go-to spot for families to enjoy a night out.”

The River Falls Baseball Council (RFBC), a local nonprofit, spear-headed fundraising efforts. After over $250,000 of monetary donations and countless volunteer hours the completed project is comparable to a $2-million ballpark.

Kristin Wiersma, FNBRF market-ing officer, serves on the RFBC Execu-tive Board added, “Having our named tied to a healthy, family friendly activity is a brand booster. Traditions such as kids catching foul balls for a quarter or running the bases after the games have been a joy to see.” These activities have been shared widely via social media.

Banks Support Art Center ProjectCHIPPEWA FALLS—Northwestern Bank has pledged $100,000 to the Confluence Project, named for the junction of the Eau Claire and Chip-pewa rivers in Eau Claire.

The money will help fund the proj-ect’s new performing arts center, to be located at what is commonly referred to as the Haymarket site. The site will also include commercial/retail space and a student housing complex for the University of Wisconsin-Eau Claire.

Northwestern Bank has had a branch in Eau Claire for the past decade.

“As a community bank it is our duty to respond to the needs of each community we serve, not only through loans but donations as well,” said Gerald Jacobson, Northwestern Bank president. “We are proud to support the Confluence Project. This donation will benefit the Eau Claire community and the entire Chippewa Valley, as many people will be able to enjoy the new community arts center.”

Also contributing to the project is Merchants Bank, which pledged $50,000. Headquartered in Winona, Minn., Merchants has 21 locations in Wisconsin and Minnesota including those in Eau Claire and Onalaska.

The Confluence Project is sup-ported by a public-private partnership that seeks to construct the arts center. A privately developed commercial/retail complex that includes hous-ing for University of Wisconsin-Eau Claire students is also part of the plan.

The Eau Claire City Council has pledged $5 million toward the arts center. The project seeks an additional $25 million in state funding and $5 million from Eau Claire County. The remaining arts center construction costs are being sought from donations and tax credits.

FBFC Launches Holi-Days Giving ProgramOCONOMOWOC—First Bank Financial Centre launched a Holi-Days of Giving program this fall. The bank invited community members to nominate local charities and individu-

als who could benefit from cash gifts. In December the bank will dis-

tribute $500 checks to 12 nonprofits and gifts of up to $500 in value to 12 families or individuals. Each of the bank’s 12 area branches will distribute one of the nonprofit donations and one of the gifts.

“We have a long history of giving back and supporting the communi-ties we serve. It’s a commitment that’s woven into our culture and spirit,” said Mark W. Mohr, president and CEO of First Bank Financial Centre. “We hope our gifts will be used in all sorts of ways to bring joy. We’d love to fly grandma home for the holidays, fund care packages for military troops over-seas, or give a local charity a boost.”

Greenwoods Spreads Breast Cancer AwarenessLAKE MILLS—Greenwoods State Bank helped spread awareness about breast cancer by distributing pink ribbons this fall. Also for every check-ing account opened in October, the bank donated $5 toward breast cancer research.

Greenwoods has locations in Lake Mills, Evansville, and Monticello.

Students Experience Web-Based Financial Literacy Program OSHKOSH—Over 500 Oshkosh North and Oshkosh West High School students dedicated more than 2,380 hours last school year to the FNB Fox Valley My Financial Future Program.


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COMMUNITY INVOLVEMENT

For the past two academic years First National Bank-Fox Valley (FNB Fox Valley) has sponsored student access to EverFi-Financial Literacy™, a web-based resource focused on teaching the basics of personal finance. Using the latest in new media technology — simulations, avatars, gaming, and adaptive pathing — FNB Fox Valley has brought complex financial con-cepts to life for students in the Osh-kosh Area School District (OASD).

The 10-unit course offers approxi-mately seven hours of programming covering a variety of relevant financial topics including credit scores, insur-

ance, student loans, taxes, stocks, 401ks, and other critical concepts that map to state and national financial literacy standards. The course tracks progress to ensure that each student has a positive experience. Students who successfully complete the course earn their EverFi Certification in Financial Literacy, a mark of dis-tinction on college applications and resumes.

The FNB Fox Valley My Financial Future Program impacted 533 Osh-kosh area students this past school year. FNB Fox Valley is proud to bring this important resource to the com-

munity in an effort to help students become more informed and finan-cially responsible citizens, and has committed to fund the program annu-ally through the 2017–2018 school year.

FBFC Participates in Oconomowoc’s True Blue Day

Oconomowoc branch True Blue participants, from left: Chris Wanner, Todd Scheid, Benjamin DeRemer, Gale Zastrow, Morgan Rindahl, and Ginger Gates-Sudol OCONOMOWOC—On Nov. 7, First Bank Financial Centre (FBFC) par-ticipated in Oconomowoc’s True Blue Day. This initiative was created by Oconomowoc businesses in an effort to fill the food pantry shelves before the holidays and help fight hunger in the community. Employees of partici-pating companies could wear jeans on Friday, Nov. 7, if they made a food or monetary donation.

Thanks to the generosity of First Bank Financial Centre employees, FBFC collected 240 non-perishable items of food and $240 in monetary donations.

Bank Contributes to Stuffing a Bus for Local Food PantryWHITEWATER—Commercial Bank donated $5,000 to the Stuff the Bus Project for the Whitewater Food Pantry.

The project raised a total of 6,630 pounds of donated food items and cash donations of $2,407 in addition to the contributions from the bank and the Kachel Family Foundation, which also donated $5,000.

FBFC and Ebert’s Greenhouse Donate Thanksgiving MealsOCONOMOWOC—For the fourth consecutive year, First Bank Financial Centre (FBFC) and Ebert’s Greenhouse joined forces to raise money to purchase Thanksgiving meals for families in need in the Oconomowoc area.

FBFC and Ebert’s partnered with Piggly Wiggly in Oconomo-woc to purchase food items for these meals. All meals included a Thanksgiving turkey, apple juice, fruit cocktail, green beans, corn, cran-berry sauce, stuffing, mashed potatoes, gravy, orange and strawberry Jell-O, corn bread, and muf-fin mix. “Piggly Wiggly was incredibly helpful, and worked … to purchase the largest quantity of food for our donation. This year, we were able to feed 60 area families and hopefully made their Thanksgiving just a bit more special,” said Heather Kolter-mann of FBFC’s Corporate Marketing Department.

The money for the meals was raised during a fundraiser that took place

during November at Ebert’s Green-house. For every pumpkin sold during this time period, FBFC and Ebert’s each donated a dollar — for a grand total donation of $1,000.

On Nov. 21, FBFC and Ebert employees assembled the 60 meals at the First Congregational Church of Oconomowoc, where families then col-lected their Thanksgiving meals.

Pictured (beginning top left to right): Chris Wanner, FBFC corporate customer service manager; TouGer Lee, FBFC IT director; Scott Berther, Ebert’s Greenhouse; David Kroll, Ebert’s Greenhouse; Dave Charpentier, Ebert’s Greenhouse; Sally Schoenborn, FBFC branch manager; Diane Mayhugh, FBFC administrative assistant; Stacey Balistreri, FBFC senior credit analyst; Todd Scheid, FBFC branch manager; Ashley Toth, FBFC retail loan operations assistant; Tim Roskopf, FBFC assistant facilities manager; Katelynn Jorgenson, FBFC personal banker; Rosie Rutkowski, FBFC relationship banker; Mark Mohr, FBFC president and CEO; Ryan Johannes, FBFC business analyst; Wendy Quaden, FBFC branch manager; and Heather Koltermann, FBFC business lines marketing coordinator


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CHANGING SCENE

Starion to Purchase WPS Community BankBISMARCK, N.D.—Starion Financial has signed an agreement to purchase the Madison-based WPS Community Bank, a subsidiary of Wisconsin Phy-sicians Service Insurance Corp. that was formed in 2009. Starion has 14 branches in North Dakota and Wis-consin including those in Sun Prairie and Middleton.

WPS Community Bank has $98 million in assets and $221,000 in net income as of June 30, 2014. Follow-ing regulatory approval, the deal is expected to close during the first quar-ter of 2015. John Hecht, WPS Com-munity Bank’s current president and CEO, will continue to lead the bank following the acquisition.

Craig Larson, Starion president/CEO, stated in a news release, “We are excited to have the opportunity to acquire such a successful, well-run community bank. Starion has been looking at community banks in the Madison market to expand our pres-ence and increase our commitment to the community.”

WPS’s decision to sell the bank comes at a time when the bank is a highly valued asset and the market is good for purchases and sales of banks. The divesture allows WPS to continue to invest in growing and innovating its core business.

River Valley Breaks Ground in MiddletonWISCONSIN RAPIDS—River Valley Bank recently broke ground for its newest branch at 8329 Murphy Drive in Middleton. Currently located at 2601 W. Beltline Highway, the bank will serve its Dane County customers there until February when the new branch is completed.

The new building will feature an expanded lobby, Internet café, and free WiFi for customers.

Commerce State Bank in Growth ModeWEST BEND—Commerce State Bank is experiencing a growth spurt. In Sep-tember, the bank, which was founded in 2005, opened a 1,500-square-foot

loan production office in Saukville.The bank is also completing a new

Cedarburg branch that will open before the holidays. The 5,500-square-foot branch is located at W61 N297 Washington Ave., across the street from the bank’s existing Cedarburg branch. The new location will double the size of the previous building.

First Business Enters Kenosha MarketMADISON—First Business Bank-Milwaukee has opened a new office in Kenosha at 6633 Green Bay Road. The office will operate as a cashless model. Customers will conduct transactions electronically with secure online banking and remote deposit.

Wes Ricchio will lead the bank as Kenosha regional president.

“We have identified small- to medium-sized privately held compa-nies as our target market so we can provide the service they deserve rather than trying to be everything to every-body,” Ricchio told the Milwaukee BizTimes. “The very small and startup businesses, or those with a lot of cash transactions, are typically not a good fit for us.”

PyraMax Honored for Healthy EmployeesGREENFIELD—PyraMax Bank was named one of the Milwaukee area’s Healthiest Employers in the medium category (101-1,000 employees) by the Milwaukee Business Journal.

The bank’s wellness programs include InHealth Bioscreen, InHealth Risk Assessment, and InHealth Coaching programs. Participating employees who meet three of five biometric measures see premium discounts for themselves and their spouses on the company-provided insurance plan.

Beloit Bank Victim of Ponzi SchemeBELOIT—Blackhawk Bancorp, the parent company of Blackhawk Bank, was a victim of an alleged fraud scheme perpetrated by a Florida busi-nessman. The scheme led to a loss of $1.6 million for the Beloit bank.

Pennant Management Inc., a

Milwaukee firm that acquires gov-ernment-guaranteed SBA and USDA loans, places the loans into funds, which are offered to community banks and others as investments.

Pennant essentially became the middle man in this scam in which Nikesh A. Patel, a Orlando hotelier and owner of First Farmers Financial, a USDA approved lender, sold fake USDA loans to Pennant beginning in June 2013. Pennant began buying loans from Patel’s firm after doing due diligence and confirming with the USDA that First Farmers was an approved lender.

Pennant sold 25 fake loans worth $176 million as investments to various firms including Blackhawk Bancorp, which had a $5.5 million interest in the loans and guarantees.

Patel was charged in federal court with wire fraud after he “forged the loan documents on behalf of fictitious borrowers, forged the signature of USDA officials on the loan guaran-tees, and pocketed the loan proceeds,” according to a story in the Milwau-kee Journal Sentinel. Patel used the proceeds from the sale for real estate investments including a high-end home.

Illinois Bank Opens Loan Production Office in StateEFFINGHAM, Ill.—The Illinois-based Midland States Bank has opened a commercial loan production office in Wauwatosa in the same building as its Wauwatosa Settlement Trust Group, at 1223 Mayfair Crossing. Midland acquired the trust services practice from Milwaukee-based Securant Bank & Trust in early 2013.

Midland States Bank has $1.7 bil-lion in assets and some 400 employees at 35 branches in Illinois and Mis-souri. Alan Forristall, Milwaukee market president, has more than 30 years of banking experience. The bank made the decision to expand its Wisconsin presence when Forristall and his wife decided to move to the area to be closer to family. The bank will re-evaluate its Wauwatosa loan production office in a year.

>>>


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CHANGING SCENE

Wintrust to Acquire Delavan BancsharesLAKE FOREST, Ill.—Wintrust Financial plans to acquire Delavan Bancshares Inc. Wintrust is the parent company of Hartland-based Town Bank and other Wisconsin com-munity banks including 11 branches of Talmer Bank and Trust, as well as The National Bank’s Pewaukee office, which it folded into Town Bank.

Formed in 1996, Delavan Banc-shares now has $208 million in assets, $167 million in deposits, and four branches in Delavan, Sharon, Lake Geneva, and Clinton.

The $38 million deal is expected to close during the first quarter of 2015 pending regulatory approval.

Anchor to Sell BranchMADISON—AnchorBank is selling one of its branches to The Peoples Community Bank of Mazomanie. The Madison bank’s Richland Center branch will be sold pending regulatory approval.

Peoples approached Anchor to pur-chase the branch and will assume $19 million in deposits, as well as loans and other assets.

“With the growth that our loan

office in Richland Center was expe-riencing we needed a full-service location in which to more effectively serve the needs of our customers,” said Gary Harrop, president of The Peoples Community Bank. “We look forward to making permanent our commit-ment to the Richland Center area.”

Peoples will retain AnchorBank employees in Richland Center.

Minnesota Banks ExpandLA CROSSE— Merchants Bank of Winona has purchased a branch in Eau Claire in addition to locations in Rushford and Lanesboro, Minn. And it’s not the only Minnesota bank seek-ing to expand into Wisconsin.

Bremer Bank, St. Paul, Minn., opened a new branch last year in Onalaska and is constructing its 85th branch in Eau Claire.

“One reason we see opportunity is larger banks are concentrating on larger markets like Minneapolis and Chicago, drawing resources out of smaller markets,” Dale Walter, presi-dent of Bremer Bank in Onalaska, told the La Crosse Tribune on Nov. 7. “Bremer and other regional banks can fill that void.”

Walter noted that Bremer is target-ing regional hubs with colleges and

strong economic growth.The bank, which is co-owned by

employees and the Otto Bremer Foun-dation, builds a team of bankers from the new communities they enter.

Ohio Bank Makes InroadsAKRON, Ohio—Another out-of-state bank is making inroads in Wiscon-sin. FirstMerit Bank plans to open both its regional headquarters and first Milwaukee branch in downtown Cathedral Square. The bank opened its first Wisconsin branches in 2013 when it acquired the Flint, Mich.-based Citizens’ Republic Bancorp.

The downtown Milwaukee branch, located at 535 E. Wells St., will offer banking services and an ATM. First Merit will open its regional headquar-ters in December at 555 E. Wells St., relocating staffers from temporary offices.

Wisconsin Bank & Trust to MergeDUBUQUE, Iowa—In what appears to be a sign of the times, Wisconsin Bank & Trust (WB&T) will acquire Sheboygan-based Community Bank & Trust pending regulatory approval.

Wisconsin Bank & Trust is a sub-

CBW Legal & Compliance Consortium

Community Bankers of Wisconsin offers its Legal and Compliance Services Consortium to provide CBW members with fast, easy access to compliance and legal services at a flat annual fee.

Godfrey & Kahn renders written or oral legal advice that can be maintained in bank records and provided to regulators. Consortium members become clients of Godfrey & Kahn.

As a member of the CBW/Godfrey & Kahn Legal Consortium, we recently were provided with unsolicited documents from Godfrey & Kahn addressing three hot topic issues: A “Loan Officer Compensation Policy” as required under new Reg Z rules; A Guidance document that addresses new “CFPB Mortgage Servicing Rules”; and a combination of a “Social Media Policy” and a “Social Media Risk Assessment.” These are rules that 260 Wisconsin community banks are trying to get their arms around and implement prior to their next exams. The Legal Consortium continues to provide our bank a great value when we are provided this level of service.

— Jerry L. O’Connor, President & CEO, The National Bank of Waupun

Consortium members can rest assured that they have specialized legal advice backing up their unique compliance questions and concerns.

For more information, contact Jami Erickson at [email protected].


CHANGING SCENE

sidiary of Heartland Financial USA. When Heartland acquires Commu-nity Banc-Corp, the parent company of Community Bank & Trust in an all stock transaction valued at $52 million, Heartland will merge Com-munity Bank & Trust into WB&T. As a result, WB&T will gain 10 new locations — the main office and three branches in Sheboygan, as well as branches in Sheboygan Falls, Plym-outh, Elkhart Lake, Chilton, Glendale, and Greenfield.

Following the deal, Heartland, a diversified financial services company, will have $6.4 billion in assets and 87 branches in 10 states. WB&T will have assets of more than $1.1 billion and 19 branches in Wisconsin.

Peoples Community Bank Branch RobbedMAZOMANIE—The Plain branch of The Peoples Community Bank was the victim of a robbery. Two masked men armed with handguns forced employ-ees to turn over money from different areas of the bank. After the employees did so, the robbers forced them into a corner and sprayed them with what was suspected to be pepper spray.

Employees were taken to Sauk Prai-rie Hospital for treatment.

Bank of Poynette Branch RobbedPOYNETTE—The Harmony Grove branch of the Bank of Poynette was the victim of a robbery. A lone man entered the bank, displayed a hand-gun, and demanded cash.

A Columbia County sheriff ’s deputy located a vehicle matching the description of the getaway vehicle. The deputy, with help from the Lodi Police Department, took two men, Karl Lee Kreier, 28, of Madison and Peter Lee Meeker, 48, of Middleton into custody.

Blackhawk Stock Trades on New Bank ExchangeBELOIT—Stock of Blackhawk Bancorp, the parent company of Blackhawk Bank, is trading on a new exchange. The company has joined OTCQX market, a dedicated mar-ketplace for community and regional bank stocks. Previously the hold-ing company traded on the OTCQB venture market. The company’s ticker symbol remains BHWB.

OTCQX for banks was created for

strongly capitalized banks that have committed to provide higher level reporting and greater transparency. To qualify for OTCQX a bank must meet high financial standards, be current with its regulatory reporting, and post quarterly results and report mate-rial events in a timely manner. These banks must also appoint a corporate broker — a FINRA member broker-dealer specializing in bank stocks — to serve as their OTCQX advisor.

Merger Includes Wisconsin BranchesGOLDEN VALLEY, Minn. and IOWA CITY, Iowa—Central Bancshares, Inc., parent of Central Bank, headquartered in Golden Valley, Minn., and MidWe-stOne Financial Group, Inc., parent of MidWestOne Bank, headquartered in Iowa City, Iowa, plan to merge. Following the merger, MidWestOne will operate MidWestOne Bank and Central Bank as separate banking subsidiaries.

The combined company is expected to have nearly $3 billion in assets, creating one of the premier publicly traded financial services companies in Iowa, Minnesota, and Florida. As of

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CHANGING SCENE

September 30, 2014, Central Bank had assets of approximately $1.2 billion, operating 20 branches in the Minne-apolis/St. Paul metropolitan area and western Wisconsin plus two branches in Florida. MidWestOne Bank had assets of approximately $1.8 billion, operating 25 branches in Iowa.

Central Bank’s western Wiscon-sin branches are located in Hudson, North Hudson, Osceola, Rice Lake, and St. Croix Falls.

County Bancorp Files for $23 Million IPOMANITOWOC—County Bancorp, a Wisconsin bank focused on dairy-related lending with over $700 million of assets, filed in November with the SEC to raise up to $23 million in an initial public offering. The company plans to list on the NASDAQ under the symbol ICBK.

Founded in 1996, the company operates Investors Community Bank and owns two locations in Manitowoc and Stevens Point, along with loan production offices in Darlington, Eau Claire, and Fond du Lac.

First National Community Bank Adds BranchNEW RICHMOND—In October, First National Community Bank officially grew from three physical bank loca-tions to four, with the acquisition of the Dresser location of Frandsen Bank & Trust, based in Arden Hills, Minn.

Thomas Mews, president of First National Community Bank stated,

“The Dresser location brings added convenience to our customer base which is primarily St. Croix, Polk, and Pierce Counties.”

First National Community Bank has assets of $185 million and addi-tional full-service branches in Hud-son, Somerset, and Dresser.

FNB Fox Valley Opens Appleton Branch APPLETON—First National Bank-Fox Valley (FNB Fox Valley), opened its new Appleton North branch on Dec. 8. Located at 835 W. Northland Ave. across from Northland Mall, the branch offers full-service deposit, mortgage, and commercial banking functions, as well as a 24-hour ATM.

An official ribbon cutting and grand opening ceremony will follow in spring of 2015.

Established in 1887, FNB Fox Val-ley has approximately $370 million in assets. Its 81 employees work in FNB Fox Valley’s offices in Neenah, Mena-sha, Oshkosh, and Appleton.

Survey: 2015 Good for Many State BusinessesMADISON—The results of the 12th annual First Business Economic Survey indicate a positive outlook for busi-nesses in Dane County, the Greater Milwaukee Area, and Northeast Wisconsin. The survey focused on the current year’s actual and next year’s predicted sales revenue, total operating costs, capital expenditures, profitabil-ity, number of employees, changes in wages, and changes in pricing.

“The results from this year’s survey are positive in almost every way,” com-mented Mark Meloy, president & CEO of First Business Bank, speaking about the Dane County survey. “The outlook for 2015 is encouraging as well. I think we can finally say the hangover from the Great Recession is behind us.”

“The prevailing theme of this year’s survey results is optimism: It’s opti-mism about sales, profits, hiring — precisely what we’ve all been hoping to see for far too long,” stated Dr. Moses Altsech, principal of Moses Altsech Consulting, the firm that conducted this year’s survey.

“Optimism in itself is a good thing, because it has the potential to become a self-fulfilling prophecy. But this is beyond just an upbeat attitude; it’s strongly optimistic predictions about business performance after a long period of caution and a “wait and see” approach. That is very good news for Dane County businesses, as well as [for] everyone in Wisconsin!”

“I knew the results would be posi-tive, but it surprised me just how posi-tive they were,” agreed Mickey Noone, president of the northeast region of First Business Bank. “Businesses in northeast Wisconsin are reporting record-level sales and profitability, and coupling that with strong optimism about 2015. They’re reporting fur-ther increases in sales, profits, hiring, and wages. The outlook for 2015 is strongly optimistic.”

Read the full First Business Economic Survey Report at www.firstbusiness.com/survey.

Compliance Program Highly Rated by Wisconsin Community BankersFor the twelfth straight year CBW is sponsoring the Community Bankers for Compliance Program (CBC) in 2014 with Young & Associates, a nationally recognized compliance consulting firm that specializes

in community banking. The CBC program is CBW’s most highly rated educational program.

The CBC program includes quarterly full-day seminars based on the most recent industry and regulatory developments, access to the Young & Associates toll-free compliance hotline, and a CBC Members Only Web site hosted by Young & Associates that provides timely compliance information and tools.

The quarterly compliance seminars offer peer networking and include a regulatory update and a comprehensive discussion of one or more compliance regulations. Attendees receive a compliance manual each quarter that is generally in excess of 200 pages that can and is used as a reference to the changing regulations and as a training manual for other employees.

If you have questions, contact:Sandy Gruber at 608.833.2384, [email protected]

or Rick McGuigan at 608.833.2382, [email protected]


Mission Statement

Building Exceptional Leaders Through Involvement

What Is BOLT?BOLT = Building Our Leaders of Tomorrow

• BOLT’s goal is to provide an environment where energized and motivated CBW members have an opportunity for peer networking, educational growth, and leadership development.

• BOLT members expand their leadership roles in the Wisconsin financial community.

• BOLT provides a networking connection to others in the community banking industry with the same background and same work complexities.

• BOLT Active Strike Forces: Professional Development Committee, Advocacy Committee, and Connections Committee.

What’s In It For Me?

• Opportunities to learn the skills needed to be a respected, contributing community banking officer able to handle increasing responsibility.

• Opportunities to become more engaged in legislative, regulatory, and public affairs advocacy.

• Access to a tremendous network of Wisconsin community bankers with a vast background of knowledge and experience who are willing to share it in a non-competitive environment.

• Personal satisfaction in sharing the legacy of Wisconsin community banking.

For more information, contactShannon SchlueterDirector of Member Relations & Public AffairsCommunity Bankers of Wisconsin608/833-2385 Direct [email protected]

“Our goal is to provide an environment where energized and

motivated members have an opportunity for peer networking, educational growth,

and leadership development.”

SCENE OVERS


PEOPLE

Jansen Joins Hometown BankAPPLETON—Hometown Bank has hired Jody Jansen as senior vice pres-ident-commercial lending to its team in Wautoma. She has over 24 years of banking experience, most recently as a senior business banking officer with Investors Community Bank in Stevens Point.

Staff Changes at Foundations BankPEWAUKEE—Foundations Bank wel-comes Jennifer Walmer as vice presi-dent of commercial banking.

The bank also promoted Catherine Kolton to vice president, retail and banking, and Berenice Bruwer to assistant vice president and human resources manager.

Faulkner Joins Bank First NationalMANITOWOC—Aaron Faulkner has joined Bank First National as vice president of business banking in the bank’s Green Bay office. He comes to the bank with nine years of experience.

Ixonia Bank Welcomes New StaffIXONIA—Ixonia Bank recently wel-comed two new employees. Mark Wierman was named senior vice president and chief lending officer. Wierman, who came from Associated Bank, brings 30 years of experience to his new position.

Jason Grubba was named vice president, residential lending. Grubba has more than 12 years of experience in the mortgage industry.

Settlers Bank Welcomes NicholsDEFOREST—Settlers Bank welcomes Dan Nichols as senior vice president of commercial lending. He will be responsible for growing and maintain-ing the bank’s commercial loan port-folio and promoting the bank’s com-mercial lending services and products throughout Wisconsin.

Nichols is returning to the Wiscon-sin market after a stint in Kansas City, Mo., where he served as managing director of commercial real estate for BMO Harris. He earned both a B.B.A. and M.B.A. in finance from the Uni-versity of Wisconsin Madison.

Marty Joins Home SavingsMADISON—Joe Marty has joined Home Savings Bank as vice president of lending. Marty joins the Madison bank with 24 years of banking expe-rience including nine years at M&I and four years at Wells Fargo Home Mortgage.

In his new position, Marty will oversee all aspects of the bank’s mort-gage loan department.

First Business Hires David PapritzMADISON—First Business Finan-cial Services, Inc., has hired David R. Papritz as CFO and senior vice presi-

dent of corporate development. He was previously group senior vice president and director of corporate development and investor relations with Rosemont, Ill.-based Taylor Capital Group, Inc. He has also worked with the Financial Institutions Group of Raymond James & Associates’ Chicago office and the Chicago-based LaSalle National Cor-poration/ABN Amro North Amer-ica. Papritz received a B.A. in English and business management from Luther College and an M.B.A. from North-western University Kellogg Graduate School of Management.

Bank Holds Retirement CelebrationSUN PRAIRIE—Bank of Sun Prai-rie has invited the public to join in celebrating the end of an era. After 48 years, Alice Hensen, bank president, will retire on Dec. 31. The party is set for 5:00 p.m., Dec. 18, at Buck & Honey’s Restaurant, 804 Liberty Blvd., Sun Prairie.

Hensen became president in 2006. At the time of her appointment, she was the only woman leading a bank in Dane County and one of the few ever to do so in Wisconsin.

Bank of Sun Prairie is grateful for Hensen’s hard work and dedication not only to the bank, but also to the community.

“We hope everyone will join us as we wish Alice a fond farewell,” said Tom Tubbs, Bank of Sun Prairie board chairman. “It has been a pleasure serving alongside Alice. She will truly be missed as she has led the bank suc-cessfully, leaving it poised well for the future.”

Kaufmann to Lead Bank of Sun PrairieSUN PRAIRIE—With the retirement of Alice Hensen as president and CEO of the Bank of Sun Prairie, Jimmy Kaufmann will assume those roles at the end of the year.

Kaufmann has 16 years of financial ser-vices experience. Prior to joining the Sun Prairie bank, he was senior vice president of strategy and integration

Jimmy Kaufmann

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PEOPLE

for consumer and commercial bank-ing at Associated Bank. He graduated from Commonwealth Business Col-lege and is a recent graduate of the Graduate School of Banking at the University of Wisconsin.

“Jimmy is a great fit for Bank of Sun Prairie, not only because of his larger than life personality, but also because he has championed many areas of banking with great success,” said Alice Hensen, current Bank of Sun Prairie president. “I am very con-fident Jimmy will carry on the prom-ises we have made to our communities to continue to be a financially strong partner that focuses on customer satisfaction, through products and expertise.”

Hassan Joins Park Bank as CIOMILWAUKEE—Tahir Hassan has joined Park Bank as chief information officer. Hassan’s position is newly cre-ated; he will guide the bank’s informa-tion technology strategy and enhance customers’ experience through technology.

Hassan joins Park Bank from senior level IT leadership positions with Actuant Corporation and Web-ster Financial Corporation, the parent company of HSA Bank.

Wisconsin Business Development Hires Nelson MONONA—Wisconsin Business Development Finance Corp. (WBD) has hired April Nelson as vice presi-dent and loan officer. She will be based in the WBD Hudson office and serve the western Wisconsin and eastern Minnesota markets.

Nelson brings a wealth of experi-ence within the SBA 504 industry and 20 years of experience working in commercial lending.

Prairie Financial Group® Expands Senior TeamWAUKESHA—Prairie Financial Group has hired Anthony Preman, Terry Doyle, and Michele Young.

Anthony Preman, director of fiduciary services, comes to Prairie Financial Group from Morgan Stan-

ley Wealth Manage-ment where he was an investment advisor. He brings more than a decade of financial services experience, which includes invest-ments, estates, trust administration, and corporate retirement planning.

Terry Doyle, senior director for fiduciary services, has more than 25 years of experience in the financial services business. Prior to join-ing Prairie Financial Group, Doyle was vice president/wealth advisor for BMO Private Bank.

Michele Young, senior trust admin-istrator, joined Prairie Financial Group from BMO Private Bank and has over 25 years of trust administration experience.

Prairie Financial Group, a division of Waukesha State Bank, has been in business for 40 years and has grown to serve clients throughout the United States.

Loy, Veldkamp, and Ninedorf PromotedMADISON—First Business Financial Services, Inc. recently announced that Tami Loy has been promoted to senior system administrator and officer, Megan Veldkamp to senior business/IT analyst, and Caitlin Ninedorf to marketing and digi-tal coordinator.

Loy has been with First Business since April 2003 where she began as an IT support specialist providing technical support across the organiza-tion. Throughout the years, she has taken on additional responsibilities and she backs up the network admin-

istrator, database analyst/developer, and IT support specialist positions.

Veldkamp has been with First Busi-ness since 2012. Most recently she held the position of database analyst/developer, where she enhanced many of the bank’s internally developed applications. Prior to First Business, Veld-kamp worked at GE Healthcare for nine years in different IT leadership positions.

Ninedorf joined First Business in 2011 as an intern after graduating from UW-Whitewater.

Oregon Community Bank & Trust Hires New VPOREGON—Oregon Community Bank & Trust recently welcomed Ger-ald Canon as its vice president of mortgage lending. With over 28 years experience in a variety of finan-cial areas, Canon will focus on assisting cus-tomers with construction loans, refi-nancing, and home purchase needs.

>>>

Anthony Preman

Terry Doyle

Michele Young

Tami Loy

Megan Veldkamp

Caitlin Ninedorf

Gerald Canon

www.iss-wi.com


PEOPLE

Van Handel, Janssen Join First Business’ NE Wisconsin Team

MADISON—First Business Financial Services, Inc. has hired Chad Van Handel as vice president for business development and Jerimiah Janssen as assistant vice president for business development.

Farrelly Joins First Business MADISON—Paul Farrelly has joined First Business Bank-Milwaukee as vice president for business development. He has over 25 years of com-

mercial lending experience in south-eastern Wisconsin. Prior to joining First Business, Paul was the president and COO of Community Bank & Trust, and a commercial lender for TCF Bank Milwaukee, and Bank One.

Stevenson Joins Wolf RiverHORTONVILLE—Lee Stevenson has joined the staff of Wolf River Community Bank as vice president of lend-ing, initially working out of the bank’s Hor-tonville office.

Stevenson has more than 35 years of experience in the financial services industry in the Fox Valley specializing in mortgages for primary and second homes, as well as investment property.

Wolf River Community Bank has full service offices in Hortonville and New London and will open a new, full-service bank office in Greenville in mid-2015.

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Center for Financial Training . . . . . . . . . .25Executive Benefits Network. . . . . . . . . . .27BOSC, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . .29Baker Tilly . . . . . . . . . . . . . . . . . . . . . . . . . .31CBW Legal & Compliance Consortium . .32Michael Best & Friedrich . . . . . . . . . . . . .33Community Bankers for Compliance . . .34BOLT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35ATM Access . . . . . . . . . . . . . . . . . . . . . . . .36Integrated Security Solutions . . . . . . . . .37ICBA Securities . . . . . . . . . . . . . . . . . . . . .39McGladrey. . . . . . . . . . . . . . . . . . . . . . . . . .40

VP/CORRESPONDENT BANKING BUSINESS DEVELOPMENT

OFFICERBell State Bank & Trust is seeking candidates

for a VP/Correspondent Banking Business Development Officer position for the primary target market of Wisconsin.

If you like to work with people in a family atmosphere, enjoy great benefits and provide unequaled personal service to every customer, consider a career with Bell State Bank & Trust.

This position is responsible for actively call-ing on new and existing Bell State Bank & Trust correspondent banking relationships as well as new prospects. This individual will be expected to identify and solicit bank management, executive officers and director loans and their related interests of correspondent banks. This position will play a key role in representing Bell State Bank & Trust at various regional banking conventions and seminars.

This position requires 10 years of com-mercial, correspondent or bank examination experience as well as a four-year degree in accounting, finance, business administration or related field. This individual must be proficient at business development. Overnight travel is required. Bell State Bank & Trust provides an excellent benefits package.

Please send resume to Bell State Bank & Trust, 3100 13th Ave. SW, Fargo, ND, 58103 or [email protected].

Bell State Bank & TrustEqual Opportunity Employer

Lee Stevenson

Paul Farrelly

Jerimiah JanssenChad Van Handel

www.bsrecruiters.com

Solutions that ICBA Securities can provide to your bank:

• Bank Advisory - Capital raises, mergers/acquisitions, strategic planning, valuations, ESOPs, stock options & more (offered through ICBA Securities’ affiliate, Vining Sparks Community Bank Advisory Group)

• Asset / Liability - More than typical data analysis, reports & reviews, ALCO meetings (your partner all the way through review, strategy & execution)

• Investment Portfolio - Strategies, analysis, Fixed Income sales/support & investment subsidiary asset management support (offered through ICBA Securities’ affiliate, Vining Sparks Asset Management, LLC)

• Loan Trading - Market makers in all loan types for community banks (SBA, USDA, Ag, Residential & Commercial, Performing & Non-Performing, etc), profit maximization, origination support, etc

• Wholesale Funding - Full-service wholesale funding support (issuing Brokered CDs, Repos/Reverse Repos, FHLB Advances Analysis, etc)

• Interest Rate Products - Increasing spread and income in the loan portfolio through interest rate swaps & support of all types (offered through ICBA Securities’ affiliate, Vining Sparks Interest Rate Products, LLC)

• Executive Benefits & BOLI - Analysis, consulting, administration

• Software & Support - Online Portfolio Management, Asset/Liability Reporting, Bond Accounting, Safe Keeping, Total Return Modeling

• Education & Research - Ongoing education, industry leading research, proprietary analytics

A name you’ve known and trusted for over 20 years.

Your Wisconsin Balance Sheet Solutions Team:

Fred Kelly • Jonathan Ferebee • David Holsted 877-506-7075

ICBA Securities is a member of FINRA/SIPC

Providing Wisconsin Community Bankers comprehensive balance sheet solutions.

Exclusively Endorsed by

Securities execution services are offered by ICBA Securities Corporation a registered broker-dealer and Member FINRA/SIPC. Other services and products mentioned are not insured by SIPC and may be offered by separate but affiliated companies. Please visit our website for additional important disclosures and information. www.icbasecurities.com

Happy Holidays!

455 S. Junction Rd., Ste. 101Madison, WI 53719www.communitybankers.org

The banking landscape is continually changing; we identify how these changes affect your institution and

suggest the most efficient and effective plan of action based on our knowledge of your institution and the

banking industry. We serve thousands of financial institutions nationwide and understand the challenges and

complexities of banking. That’s what you can expect from McGladrey. That’s the power of being understood.

Experience the power.

Go to www.mcgladrey.com or call 800.274.3978.

Power comes frombeing understood.®

MCG0114-TB

wisconsin community bank

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