New DFI Secretary Supports Guidance Based on Best Practices

Transcription

Volume 11, No. 2
March/April 2011
Plus:
New DFI Secretary Supports Guidance Based on Best Practices. . . . . . . 4
Governor, Legislators Speak Favorably of Community Banks. . . . . . . . . 8
Labor and Employment Law: Be Aware. . . . . . . . . . . . . . . . . . . . . . . . . 12
Noteworthy 2011 Anniversaries for Wisconsin Community Banks. . . . 14
CBW Corporate and Associate Members. . . . . . . . . . . . . . . . . . . . . . . . . 20
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Inside…
4 New DFI Secretary Supports Guidance Based on
Best Practices
8Governor, Legislators Speak Favorably of Community
Banks
10 Unique Community Bank Month Promotion Attracts
Testimonials
12 Labor and Employment Law: Be Aware
14 Noteworthy 2011 Anniversaries
for Wisconsin Community Banks
20 CBW Corporate and Associate Members
26 Preparing for the Post-Durbin Environment
28 Think the Durbin Amendment Exempts You?
Think Again
Published by Community Bankers of Wisconsin
through Client Communications
Editor and Publisher: Doris Green
Contributor: Mary Lou Santovec
Art Director: Lisa Imhoff, Grey Horse Studio
Editorial or subscriptions: e-mail Doris Green at
green@merr.com or fax (608) 583-2084
Advertising: Jami Erickson, Director of Member Programs and Association
Administration, at (608)833-2386 or contact Doris Green
COMMUNITY BANKERS OF WISCONSIN
BOARD OF DIRECTORS
2010-2011 CHAIRMAN: Steve Bell, Community State Bank, Union Grove
CHAIRMAN ELECT: James Tubbs, State Bank of Cross Plains
VICE CHAIRMAN: Paul Hoffmann, Monona State Bank
PAST CHAIRMAN: Russ Kuehn, The First National Bank of Berlin
SECRETARY/TREASURER: Mary Jo Ceniti,
Farmers Savings Bank, Mineral Point
ICBA DIRECTOR: Rick Busch, Royal Bank, Gays Mills
ICBA DIRECTOR: Butch Pomeroy, International Bank of Amherst
Jon Mentink, First Bank of Baldwin
Tom Armstrong, The First National Bank of Park Falls
Steve Zeman, Union State Bank, West Salem
John Slatky, Bank of Luxemburg
Stan Leedle, Choice Bank, Oshkosh
Jerry O’Connor, The National Bank of Waupun
John Dorshorst, Gratiot State Bank
Sigurd Bringe, Bank of Deerfield
Fred Siemers, River Cities Bank, Wisconsin Rapids
CBW STAFF
President and CEO: Daryll Lund
Executive Vice President: Rick McGuigan
Director of Member Services and Information Management: Sandra Gruber
Director of Member Relations and Public Affairs: Shannon Schlueter
Director of Member Programs and Association Administration: Jami Erickson
Community Bankers of Wisconsin
455 S. Junction R, Ste. 101
Madison, WI 53719
Ph: (608) 833-4229 Fax: (608) 833-8114
E-mail: info@communitybankers.org
Wisconsin Community Banking News is provided at no cost to CBW members.
The current and past issues are available on the CBW Web site: www.
communitybankers.org.
Keep the Momentum
Going!
Steven Bell, CBW Chairman, and President and CEO,
Community State Bank, Union Grove
O
ver-regulation, asset quality, and capital constraints continue to create anxiety for many community bankers,
just as unemployment and poor housing markets still challenge many communities. But there is also
positive economic news this spring. Many
Wisconsin businesses are planning to hire,
and a few out-of-state companies are looking to expand here.
More important, there is now a greater
awareness of the significance and strength
of community banking. All of the major
articles in our March/April magazine
report that federal officials, state leaders,
and our own customers have high opinions of community
banks. Public leaders and consumers are both more knowledgeable today about the value of community banking than
ever before.
CBW President and CEO Daryll Lund devotes his column
(p. 5) to the key lessons shared by Elizabeth Warren, director of the Consumer Financial Protection Bureau (CFPB), in
her remarks at the ICBA convention in March. These lessons
demonstrate an accurate understanding of both community
banking and the regulatory challenges we face.
Department of Financial Institutions Secretary Peter Bildsten brings to his new position solid knowledge of what works
and what doesn’t work in Wisconsin banking (p. 4). He understands the advantages that community banks have when it
comes to knowing their customers.
Many of our elected officials also understand the differences
between Wall Street and Main Street banks and are committed to reducing unnecessary regulations and supporting rules
that benefit community banks (p. 8). As U.S. Sen. Herb Kohl
points out, “Farmers and Main Street businesses need healthy
[community] banks, and vice versa.”
Even more heartening are the words of our own customers
who participated in ICBA’s “I Love My Community Bank”
campaign to celebrate April Community Banking Month (p.
10). People often have an opportunity to complain, but we too
seldom ask about what’s going right in their lives. A common
thread in their testimonials is that our bank staff members
know them by name when they walk through the door or
pull into the drive-up lane. Such a simple thing makes a big
difference in their day—as it does in ours.
On our cover... This image of Timberwood Bank
showcases the bank location at 110 W. Veterans St., Tomah,
which it moved to in 2007. The location was formerly occupied
by Acuity Bank. Timberwood Bank had total assets of $172.4
million and net income of $1.3 million at year end 2010.
March/April 2011
Wisconsin Community Banking News
3
New DFI Secretary Supports Guidance Based on Best Practices
Mary Lou Santovec
I
f Peter Bildsten has one overarching
philosophy in his work, it would
have to be “Don’t make bad loans and
don’t jeopardize my capital.” Bildsten,
the new secretary
of the Department
of
Financial
Institutions, heard
those words from
the late multibillionaire Carl
Poh l ad, w hos e
fortune included
ownership of the Minnesota Twins
franchise.
When the entrepreneur acquired a
community bank in Baraboo, Bildsten, a
Baraboo native, was hired to run it. The
First National Bank and Trust Company
was one of a network of independent
banks across the country that Pohlad
started. Bildsten, whose career had, until
then, included stints with private mortgage insurance companies in Wisconsin
and North Carolina and lending work
at Bank Mutual and North Shore Bank,
jumped at the chance to run his own
shop.
That opportunity came with a few
instructions. “Carl believed strongly in
preservation of capital and quality lending,” Bildsten said. “And he expected his
banks to perform.” Pohlad was confident
in the people he hired and let them do
their jobs. In 2001, the entrepreneur
sold his network of banks including First
National to Wells Fargo. Bildsten stayed
with Wells Fargo for another eight years,
overseeing both the Baraboo and Madison area markets.
In 2008, Bildsten joined Summit
Credit Union during its merger with
Great Wisconsin Credit Union to assist
with its retail operations. A year later,
he was asked to step in and help out
Milwaukee’s troubled Maritime Savings
Bank, which at the time was operating
under a regulatory order. “It needed a
CEO with a lending background.” The
bank, which regulators closed Sept. 17,
2010, ultimately had its assets absorbed
into North Shore Bank.
And now, Bildsten has taken on his
first public role, very cognizant of its
4
seriousness. “I expect this to be as much
and more of a challenge than anything
I’ve ever done and I’ve been in some
challenging roles,” since earning a bachelor’s degree in marketing from the University of Wisconsin-Whitewater.
The 58-year-old also did graduate
work at UW-Whitewater while earning
tuition money managing a residence hall
and coaching. Bildsten served as assistant basketball coach for the Warhawks.
“I’ve teased my kids (Tim and Hilary)
that while I’ve been fortunate to have
a nice career and nice positions in the
private sector, I had more discretionary
income when I was in graduate school.”
When not at work, Bildsten, his children, and his wife, Nancy, a volunteer
with the Baraboo Community Scholarship Corporation, enjoy skiing in Colorado in the winter. In the summer, the
family travels to Northern Minnesota to
the Boundary Waters Canoe Area Wilderness for back-country adventures.
After a recent hip replacement sidelined his basketball games, Bildsten
keeps in shape by playing tennis. He also
reads history, particularly books related
to World War II and 20th century events.
Choosing Whitewater specifically
for its business school, Bildsten began
his career working for Verex, a private
mortgage insurance company. He then
took a position with a North Carolinabased PMI company as national sales
director. “It led to some appreciation
for, and good strong experience in, risk
management, which led to banking,” he
said, tracing his career path. “Learning
the risk management side first was a
great way to start in the industry.”
His past positions will serve Bildsten
well in his role at DFI. In the short time
he’s been in the job, he’s developed an
appreciation for two things. First, there’s
a place for all types of financial institutions. “Our state needs both community
banks and large regional ones.”
The second hearkens to the advice of
his mentor, Pohlad. “Make good loans
and don’t step too far out of your comfort zone in terms of asset generation.”
Bildsten acknowledged that unlike
in other states, very few of Wisconsin’s
community banks have stepped away
from their expertise. And those that did
March/April 2011
paid a steep price. “Wisconsin bankers have weathered the recession well.
They’ve stuck to their knitting and continue to serve [their] communities during these difficult times.”
The stability of the state’s community banks can all be boiled down into
one intrinsic philosophy: knowing your
community and knowing your borrower.
“If you start with that, everything else
should come together.
“That’s especially where community
banks have an advantage. They’re a little
closer to the communities and often
have a deeper relationship with their
customers and borrowers.”
When Bildsten talks about his roles
in the industry, it’s obvious that his
career has been a good fit. “The most
gratifying things we do in the financial
services world are when we do help an
individual or a company succeed. It’s so
gratifying when we see someone settle
into their first home, or when we help a
small business and see them thrive, or
we finance a college education or a car
loan. Seeing people succeed is the best
part of our jobs.”
Having to serve the needs of his various constituencies including more than
200 Wisconsin banks, Bildsten juggles
a lot of balls. His priorities are to have
DFI become more effective and efficient
in overseeing the safety and soundness
of banks, credit unions, and investment
firms. “Along those lines, I think it’s
important that we come out and provide
guidance to the institutions we oversee
and not just go through a rote checklist
examination. And we should provide
that guidance based on best practices.”
No doubt these are challenging times.
And Bildsten is earnest in ensuring that
Wisconsin’s financial industry stays
strong. “All of us at the Department
of Financial Institutions take our roles
very seriously and recognize the importance of the role we play in the health of
financial institutions of Wisconsin. I’m
pleased to be working with a strong team
of dedicated professionals.”
But the state’s community banks
definitely have a kindred spirit in the
new secretary. “I’ve been a community
banker. If I had to describe myself over
continued on page 6
Lessons from the New CFPB Director Warren
E
arlier this year CBW and other
ICBA members met with Elizabeth
Warren, director of the newly established
Consumer Financial Protection Bureau
(CFPB), and Elizabeth Vale, CFPB
assistant director for community banks,
in Washington, D.C.
At that time, Warren said that the
new bureau will be focused on regulating the shadow banking system and
will work to reduce regulatory costs for
community banks. She noted that simply writing a layer of new rules will not
benefit consumers and that regulators
should instead level the playing field
between community banks, megabanks,
and the estimated 80,000 non-depository financial institutions.
In March at the ICBA National Convention, Warren further demonstrated
an understanding of the community
banking industry. Warren spoke about
three lessons she has learned that influence the development of the CFPB.
Excerpts from her speech about these
key lessons follow:
Lesson #1: Community Banks
Build Long-Term Partnerships with
the Families They Serve.
I have studied the economic pressures
facing middle-class families…. I studied
families that worked hard, played by
the rules, and then found themselves
squeezed by an economic system that
too often seemed tilted against them. In
particular, I studied families who turned
to debt to buy a home, to pay for an
education, to cover the costs of medical
bills, to start a business, to cover a job
loss, or just to make it to the end of the
month. I have spoken out for these hardworking, middle-class families—and I
will keep doing so. And that brings me
to America’s community banks.
The valuable role community banks
play in our economy is on display every
day. Most community banks … build
their businesses on long-term customer
relationships. They make every effort
to avoid having dissatisfied customers
and a tarnished hometown reputation,
and they try to run their banks so that
people know up front what they are getting and don’t hit nasty surprises later
on. In other words, community banks
work hard to be trusted, long-term partners with the families they serve.
Lesson #2: Community Banks
Didn’t Cause this Financial Crisis
[T]he financial crisis began one lousy
mortgage at a time. You and I know that
those mortgages were seldom originated
by America’s community banks. In fact,
most of the abuses in the run-up to the
latest crisis weren’t to be found at community banks at all.
[I]n the past two decades, the larger
financial landscape has shifted. For a
long time, the prices of financial services—credit cards, checking accounts,
mortgages, and signature loans—were
pretty easy to see. Both borrowers and
lenders could more easily understand
the basic terms of the deal. And that
meant that community banks competed
with bigger financial institutions … on
a pretty level playing field.
Those days are behind us. A different
form of pricing has become all too prevalent. Use a low, low advertised price on
the front end, and plan to make it up
with fees and charges and penalties and
re-pricing on the back end. Customers
walk into a payday lender and would
reasonably think the business model is
a short-term loan—not a trap. They go
to a mortgage broker and reasonably
expect that every broker puts the customer’s interests first. Too often, customers have no realistic chance of reading
their credit agreements and figuring out
the actual terms of the deal until it is
way too late.
Lesson #3: If We Don’t Do a Better
Job on Regulation, We Will Push More
Community Banks Out of Business.
At the same time the part of the financial services market that is unregulated
or lightly regulated at the federal level
has grown, the regulatory pressures on
banks have increased. The government’s
failure leading up to the crisis to set sensible rules and to scrutinize practices
of large banks and non-bank lenders as
closely as it should have hurt the ability of community banks to compete by
offering clearer products that imposed
far less risk on consumers and cost far
less in the long run.
And there are other problems. Some
Daryll Lund, CAE,
CBW President
and CEO
of the complicated papers that consumers receive—at a real estate closing, for
example—are required by government
regulations. This complicated, duplicative paperwork forces small financial institutions to reallocate precious
resources away from serving customers
and toward filling out more forms …
I understand the difficulty of determining what is or is not required by
a particular regulation—and the costs
that creates. I appreciate the widespread
anxiety and frustration over the future
of community banks and other small
financial institutions …
This is what you have said to me in
visits all around the country: Community banks work hard to build longterm partnerships with the families
they serve. Community banks didn’t
cause this financial crisis. And badly
done regulation can further weaken our
community banks, significantly increasing the pressures they face …
Vote Online: Champion
Your Charity
The State Bank of Cross Plains has
launched its “Be a Champion for Your
Charity” online voting microsite, www.
statebankcharitychampion.com, giving
people a voice in the bank’s corporate
philanthropy.
Adults could nominate Dane County
nonprofits from Apr. 4–15, then, promote their favorite charity and vote for
their charity champion from Apr. 18–
May 18. First place wins $1,000 for their
charity and an iPad 2 for themselves.
Second place wins $750 for their charity, and third place wins $500 for their
charity.
March/April 2011
5
continued from page 4
the past 30 years, I was a community
banker. It’s what I was most effective at.”
And he will strive to ensure com-
munity banks have a seat at the table. “I
believe in the value of strong community
banks in Wisconsin. They’re critical to
the long-term viability of the state.”
CBW Offers Workshop on Mortgage Lending Compliance
Community Bankers of Wisconsin
has organized a day-and-a-half workshop, titled “A Lender’s Comprehensive
Guide to Mortgage Loan Compliance.”
It’s no longer possible to cover all of the
recent changes in mortgage loan requirements, from application to closing in a
one-day seminar. The workshop is set
for Monday through Tuesday morning, May 23–24, in the CBW Training
Room, lower level of the State Bank of
Cross Plains, 455 County M (Junction
Road), Madison.
Participants will learn the latest
changes related to Regulation Z and
up-to-date information on the S.A.F.E.
Act, Regulation B, and RESPA, as well as
flood rules for loan closing, and relevant
Wisconsin state regulations.
The presenter is Bill Elliott, who leads
the compliance department at Young
& Associates, Inc. where he conducts
compliance reviews, leads compliance
seminars, conducts in-house training,
and writes compliance articles and
training materials. During his 30-year
career as a banker, he spent 15 years
as a compliance officer in a large community bank. Elliott has also been a
lender for consumer, commercial, and
mortgage loans, and has managed a
variety of bank departments including
loan review, consumer/commercial loan
processing, mortgage loan processing,
loan and credit administration, collections, and commercial loan workout.
Visit www.communitybankers.org
to learn more and register online. CBW
member cost for the first attendee: $375,
$220 for the second attendee; nonmember cost: $550. Lunch provided on May
23. For questions please contact Rick
McGuigan at rick@communitybankers.
org, telephone 608-833-2382; or Sandy
Gruber at sandy@communitybankers.
org, telephone 608-833-2384.
CBW Initiates Corporate/
Associate Member Advisory
Council
The Community Bankers of Wisconsin recognizes the value of its Corporate
and Associate members who provide vital,
high-quality products and services helping
keep community banks on the industry’s
cutting edge. The Council, which meets
quarterly, considers ways to network with
bankers outside the annual conference,
and enhance service to Wisconsin community bankers. Council members are:
David Fritz, Executive Benefits
Network
John Behringer, McGladrey Inc.
Denise Stigge, PULSE
JoAnn Cotter, Wipfli LLP
Jill Howe, Travelers
Tim Luger, Shazam
Scott Stueber, West Bend Mutual
Insurance Company
Kevin Mehl, Fiserv
Alan Novy, Secure Banking Solutions
John Maciosek, Elite Payment
Systems
Terry Burrington, Financial Marketing Corporation
Jenny Muche, WACHA
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6
March/April 2011
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March/April 2011
7
Governor, Legislators Speak Favorably of
Community Banks
Mary Lou Santovec
L
ast fall’s elections reshaped
Wisconsin’s political landscape. The
gubernatorial and legislative outcomes
have significant implications for the
state’s community bankers.
The newly elected leaders understand
the differences between Wall Street and
Main Street banks and have pledged their
support of community banks whether
through attempts to reduce regulations
or through new, pro-community bank
legislation.
Look for more commentary in the
media like that of U.S. Congressman
Sean Duffy (R-Ashland). Duffy defended
community banks in an interview on
the Fox & Friends cable morning show
earlier this year:
The problem we have in Wisconsin is
that we have a lot of community banks
and our community banks have been
treated like Wall Street banks after this
financial crisis … There is a great connection between our jobs, our families,
and our banking industry, and we just
see far too many regulations coming
from Washington in a group that had
nothing to do with the financial crisis.
Democratic Senator Herb Kohl,
who has served four six-year terms in
Washington, came out strongly for the
state’s community banks during the
Wall Street reform debate. “I argued that
community banks weren’t the culprits
and should be exempt from many of
the regulations enacted in Wall Street
reform,” he said. “I made some headway, and smaller banks will continue to
be overseen by their regulator and not
the newly created consumer financial
protection agency.”
Sen. Kohl has also fought for the
benefit of Wisconsin farmers, and in
turn, agricultural lending, as chairman of the Senate Agricultural Appropriations Subcommittee. “Community
banks are essential to small businesses
and farmers. They understand their
customers and they, for the most part,
behaved responsibly when the banks
on Wall Street took on great risks and
almost brought down our entire finan8
cial system.
“It is important that these banks continue doing the work they do well as
we go through implementation of Wall
Street reforms. Farmers and Main Street
businesses need healthy banks, and vice
versa,” he said.
Newly elected Republican Senator
Ron Johnson views the issues through
the lens of a business owner. The former
CEO of the Oshkosh-based PACUR,
LLC, would like to see a reduction in
the number of regulations for community banks. “I believe that Dodd-Frank
was completely misguided, and will
only make our problems worse,” he said.
“Instead of ending ‘Too Big to Fail,’ it
effectively made it permanent policy. …
“If anything, Dodd-Frank will lead
to a consolidation of banks as smaller
institutions are forced to sell because
they can’t afford the cost of compliance.
I support complete repeal.”
Another critic of the current policies surrounding regulatory reform,
Congressman Paul Ryan (R-Janesville),
wants to reform the reform:
Congress needs to recognize that
policies which prioritize the vitality of
Wall Street over Main Street not only
crush our nation’s entrepreneurial
spirit, but also do little to promote sustainable economic growth … Financial
reform should end the practice of the
federal government picking winners
and losers, streamline consumer protection agencies, and bolster oversight
mechanisms to monitor systemic risk.
Transparent, pro-growth reforms like
these will benefit Wisconsin and the
nation as a whole.
Ryan, who’s on his seventh two-year
term, will chair the House Budget Committee during the 112th Congress. His
plans include developing policies that
help improve credit and people’s ability
to obtain capital, which will drive the
economic recovery. “I will continue to
push for pro-growth and permanent
tax relief—including low rates on capital gains, dividends, and income—and
regulatory policies that foster an environment conducive to lending, investing, and saving.”
March/April 2011
Sen. Kohl also prioritizes access to
capital as a priority. “One of my goals for
the 112th Congress is to help community
bankers by working with the regulators
so that small businesses and agriculture
can get access to capital.”
Newly elected Congressman Reid
Ribble (R-Appleton) believes that government spending is out of control and
businesses are saddled with excessive
regulations. As a member of the House
Budget Committee, Ribble is working
with Chairman Ryan to “craft a real budget without gimmicks and higher taxes
that gets America back on a sustainable,
pro-growth track.”
As a former small business owner,
Rep. Ribble understands the value of
community banks, which “support 31
percent of all small business loans that
are less than $1 million nationwide.”
He hopes to work toward a “decrease
in regulations across that board so that
small businesses aren’t strangled with
the constant pressure of overbearing
regulations.
“As a result of increased regulations,
community bankers throughout the
United States and Wisconsin are being
saddled with higher costs, which prevent
them from providing capital to qualified small businesses as much as they
otherwise could. [I intend to] work this
year to relieve our broader economy,
including community banks and their
customers, from the excesses of various
federal regulations.”
While newly elected Republican Governor Scott Walker’s agenda has been
slowed by controversy, he claims that
his sole focus is on job creation. According to Press Secretary Cullen Werwie,
[Gov. Walker] “has been working to
ensure Wisconsin has a business climate
that allows the private sector to create
250,000 new jobs.
“Controlling government spending,
cutting taxes, cutting through regulatory
red tape, and lowering litigation costs
are all things that will ensure we send
the message to all job creators, lending
institutions included, that Wisconsin is
open for business.”
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March/April 2011
9
Unique Community Bank Month Promotion Attracts Testimonials
our bank.”
One testimonial for Headwaters State
Bank, Land O’ Lakes, came from a customer who also worked at the bank: “As
a community we look after and help
each other. It could be by donating our
time to an event, financial support, or
making supper for a sick customer. Our
employees have made house calls to our
customers when they couldn’t make it in.
Our bank cares about our community
and demonstrates it daily …”
Integrity First Bank, Wausau, has a
satisfied customer half a world away:
“Everyone from the tellers to the vice
president of the bank continuously
provide the highest quality service that
I expect from a local bank. They are
especially helpful when I have a banking
question or concern and ensure that my
questions are answered thoroughly to
my satisfaction. This is especially important since I am currently deployed to
Afghanistan.”
First Bank Financial Centre, Oconomowoc, received more than 75 testimo-
©2011 PULSE
The “I Love My Community Bank”
campaign was created by ICBA to provide a creative forum for consumers and
small businesses to proclaim how choosing a community bank gives them distinct advantages. Testimonials poured
in from across the state and the nation.
Participating banks had the opportunity to use their customers’ testimonials
within a free, semi-customized ad piece
from ICBA. They simply visited www.
icba.org/love and chose from among
four ad templates. Any of the ads could
incorporate a quote from the testimonials a bank has received.
Several banks received numerous
testimonials.
The first testimonial for Capitol Bank,
Madison, was right to the point: “It’s
where everyone knows your name!”
A testimonial for Community State
Bank, Union Grove, reported that
employees “go out of their way to make
sure we’re taken care of, and are always
prompt in replying to our questions. We
love them and we tell everybody about
10
March/April 2011
nials. Among them:
“It’s like ‘Cheers’ ... where everyone
knows your name. They are personal
and help with your needs … As a small
business owner in Oconomowoc, they
have helped me to get everything set up
and working properly for my business
needs. And they ask how it is going,
not because they have to, but because
they care.”
And from another customer, “First
Bank Financial Centre is unlike any
other bank I have banked with. They
are always friendly, knowledgeable, and
there to help with any banking needs!
Unlike the big banks, they are not pushy
with products and services, but there
to consult and make recommendations
that help me reach my financial goals.”
Another customer added: “I love my
community bank because they collect
the children’s letters to Santa and personally respond to each one, as Santa.”
Cross Plains First to Add Student Loan Program
The State Bank of Cross Plains
became the first Wisconsin member
bank of the Independent Community
Bankers of America (ICBA) to partner
with the iHELP® Student Loan program.
The private student loan program allows
community banks to provide “gap” funding within their communities to deserving students and families. The State Bank
of Cross Plains committed loan capital
to the program and will join iHELP as
an originating lender in the Badger State.
“ICBA is pleased that State Bank of
Cross Plains has agreed to make such a
significant commitment to this student
loan program,” said Dan Clancy, ICBA
senior vice president of services. “More
than 400 ICBA members have expressed
interest in the program, six states are
already processing loans, and an additional 15 states are in the ‘due diligence’
process.” iHELP is a simple, transparent, and
low-cost private lending program that
is offered through local community
banks to help their customers achieve
For more information about the
iHELP private student loan program,
contact Ann Anderson at 303-621-2533
or aanderson@ihelploan.com.
The State Bank of Cross Plains, a $798
million bank established in 1908, offers
a full range of personal and business
financial services including consumer,
real estate, and business lending, as well
as wealth management and financial
advisory services. There are currently
10 locations: Black Earth, Cross Plains
Main, Cross Plains Motor, Madison,
Middleton East, Middleton West, Mount
Horeb, Oregon, Verona, and Waunakee.
The bank reported earnings of $5.27
million for 2010, up from $3.87 million
in 2009. Bank assets grew from $721.65
million in 2009 to $798.44 million in
2010. The bank bolstered its balance
sheet by adding over $11 million in
capital and $2.1 million to its reserve
for loan losses. The bank increased Tier
1 capital to 8.32 percent and risk-based
capital to 11.44 percent.
their higher education goals. iHELP
was initially launched in South Dakota,
home of the program’s administrator,
the Student Loan Finance Corp. (SLFC),
which provides ICBA community bank
members with turnkey loan origination
and servicing support for the program,
and ReliaMax Surety, a South Dakota–
based insurance company. “State Bank of Cross Plains is
pleased to join iHELP so we can offer
this excellent loan program to help
our local customers and communities
throughout Wisconsin,” said Jan P.
Hogan, president and CEO of State
Bank of Cross Plains. “iHELP will allow
us to meet our customers’ educational
funding needs locally—a strength of
America’s community banks. We will
be able to help other ICBA member
banks attain the same goal in their
communities through student loan
participation agreements. We are
happy to begin working as both an
originating and participating bank of
this worthwhile program.”
Our focus has been on debit and debit alone for 30 years.
Through our experience we’ve developed training, education and
analytical services that can be tailored to empower your financial
institution. Our comprehensive professional development tools
give you the strategic guidance to thrive in the face of adversity.
Profit from our passion.
Professional Development
Customer Service
Collaboration
A Discover Financial Services Company
pulsenetwork.com/guidance
March/April 2011
11
Labor and Employment Law: Be Aware
Mary Lou Santovec
M
other always said that an ounce
of prevention is worth a pound
of cure. All employers, including
community bankers, need to know their
rights and responsibilities when it comes
to employment law.
Attorneys from Godfrey and Kahn’s
Labor & Employment Law Practice
Group presented regulatory updates
at the firm’s 22nd annual Labor and
Employment Law Seminar. The practice
group includes more than 15 attorneys
and three paralegals.
New legislation is engendering
responses from the various state and
federal agencies. The outcome of recent
court cases has been significant.
The Equal Rights Division (ERD)
and the Equal Employment Opportunity Commission (EEOC) conduct the
majority of discrimination investigations in Wisconsin. During Fiscal Year
2010, the EEOC had received the largest
number of discrimination charges in
its history. But the charges had actually jumped 50 percent between 2007
and 2008, likely due to the free-falling
economy and election results. “Are we
at a new norm?” John Kalter queried
rhetorically. “It would seem that we are.”
And for the first time, the number of
retaliation claims was higher than the
number filed for racial discrimination, a
problem since the timing on retaliation
claims is easier for the agencies to track.
Kalter pointed to four topics that
should be on employers’ radar screens:
reasonable break time for nursing mothers; right to know under the Fair Labor
Standards Act; injury and illness prevention programs under OSHA; and the
expansion of the Department of Labor’s
(DOL) department-wide regulatory and
enforcement strategies.
Nursing mothers are entitled to
express their milk in a private break
room that’s not a bathroom. Employers
with fewer than 50 employees must show
“undue hardship”—a difficult threshold
to meet—if they aren’t able to set aside
a private room.
Now in the proposal stage, the right
to know legislation will require employers to analyze in writing and define why
12
a particular position is exempt. The
information must be given to employees.
OSHA has identified its injury and
illness prevention program as its highest
regulatory priority. OSHA will require
employers—with employee input—to
do a “wall-to-wall” assessment of the
workplace and develop plans for getting
things fixed.
DOL has expanded its Plan/Prevent/Protect program of regulatory and
enforcement strategies. The expansion,
which increases employees’ awareness
of their rights and benefits, seeks to
change the “catch me if you can” attitude of employers.
Plan/Prevent/Protect aims to increase
workers’ incomes and narrow wage and
income inequality; assure that workers
are paid for their wages and overtime;
that they have a voice and are in safe,
healthy, fair, and diverse workplaces; provide workplace flexibility for family and
personal caregiving; and improve health
benefits and retirement security for all
workers. The rules are aimed at keeping
employers open and transparent.
DOL’s Plan portion requires employers to create, with employee participation, a plan to identify and fix risks
of legal violations and other risks to
employees. Employees will receive a
copy of the plan and presumably monitor it.
Under the Prevent portion, employers must fully and completely implement
the plan in a way that prevents legal
actions. There are substantial penalties
if the plan cannot be implemented.
The Protect portion requires employers to regularly verify that the plan’s
objectives actually prevent violations
of workplace rights and protect employees from workplace health and safety
risks. The DOL is serious about this—it
even has an attorney referral program
for employees who want to file lawsuits.
The Supreme Court has gotten active
in employment law, ruling favorably on
several cases for employees, particularly
when the litigation involved retaliation.
In one case, the outcome had employers
reviewing their electronic communications policy to make sure they lower
employees’ expectations of privacy when
using company electronic devices for
March/April 2011
personal use.
In another, a supervisor repeatedly
disciplined an employee for taking leave
for military duties. The person actually conducting the firing was the vice
president of human resources who had
not been involved in the previous disciplinary actions.
“She was ‘used’ by the supervisor to
get rid of that employee,” said Kalter. “I
think we’re going to see more plaintiff
attorneys that when someone is fired,
will claim they were tainted by a frontline supervisor.”
Another case of note: an employee
complained about her supervisor on
Facebook and was terminated because of
it. The courts found in her favor saying
that the employer’s social media policy
was too broad. What the employee had
done was “protected concerted activity”
essentially water cooler conversations
for the 21st century.
The best offense is a good defense.
Prevent claims by reviewing your EEO
and anti-harassment policies and add a
section on anti-discrimination to your
anti-harassment training. Make sure you
investigate any grievance complaints
thoroughly. Human resources needs to
be involved earlier in disciplinary matters and in the earlier decisions that may
lead to termination.
The outcomes of health care reform
is heating up. Key tenets require group
health plans and insurance policies
to provide certain coverages; the creation of new health insurance markets/
state-based exchanges; requiring most
Americans to have coverage; providing
subsidies for those unable to pay for coverage; and imposing penalties on “large
employers” not offering satisfactory coverage. “The intent of the provision is to
get younger, healthier people into the
insurance pool,” said Todd Cleary.
While it’s too soon to tell how much
of these reforms will actually remain
by the implementation date in 2014,
the new Reform Law will impact all
employers who currently offer health
insurance to their employees. Employers
must determine if their current health
care coverage will be grandfathered in.
Whether insured or self-insured, a plan
continued on page 14
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March/April 2011
13
continued from page 12
is considered “grandfathered” if it was
in existence as of March 23, 2010 and
retains its status when new employees
join the plan.
If you’re grandfathered, you must be
cognizant of what could cause that status
to change. Amending a plan to get rid
of certain coverages, certain increases
in deductibles or co-pays, and a larger
than 5 percent drop in the employerpaid premium will remove the status.
Employers are free to change insurance
companies but the services and co-pays
must remain the same.
Retaining grandfathered status is
important depending upon how your
pay and benefits are structured. “The
big ticket health care reform items
apply to both grandfathered and nongrandfathered status,” said Cleary. But
if you want to pay bigger premiums for
your executives’ coverage than for your
hourly workers, you’ll want to remain
grandfathered.
Group health plans will now have
several requirements: nondiscrimination tests and required preventive services; prohibitions on lifetime dollar
limits on “essential health benefits” and
on annual dollar limits; prohibitions on
exclusions for pre-existing conditions;
dependent coverage for children up to
age 26; and various notices and explanations given to employees.
For employers, eliminating prohibitions on pre-existing conditions may
work in their favor. “There’s a perception
that there’s a job lock among employees
with pre-existing conditions who aren’t
moving because they’re afraid they can’t
get insured [elsewhere],” Cleary noted.
The reform does provide employers
with a temporary reinsurance program
for employees age 55 and older who take
early retirement until they’re eligible for
Medicare. The government reimburses
employers the cost of the coverage,
which must be used for health insurance
and not funneled into general revenue.
One provision that’s attracted attention and scorn is the tax on “Cadillac”
insurance plans set to go into effect in
2018. If the plan’s coverage exceeds certain dollar limits ($10,200 per year for
individual coverage; $27,500 annually
for family coverage adjusted annually)
insurers issuing these plans or plan
administrators of self-insured plans will
be required to pay an excise tax.
Any chance of a repeal? “Even if
Republicans take control of the Presidency and the Senate by 2012, it will
have gained additional traction and
possibly become more popular than it
is now,” he said. But employers that do
offer health insurance coverage could
become an employer of choice with the
benefit as a recruitment tool.
The revised regulations on the Family Medical Leave Act (FMLA) went
into effect in 2009 so there hasn’t been
much change since then, said Margaret
Kurlinski. Much of the legislation has
been an attempt to conform state statutes with federal ones. “Serious health
conditions are treated vastly different
under the state and federal regulations,”
she said and employers must know how
and when to apply them.
Federal laws allow leave for such
things as inpatient care, chronic conditions such as asthma, migraines, and
diabetes; and other narrowly defined
conditions such as pregnancy. Wisconsin law defines eligibility as a disabling
condition that requires inpatient care or
outpatient care that requires continuing
treatment by a health care provider.
“As soon as you learn of an employee’s
need for a leave, you should let them
know what the policies are,” she said.
It’s important for both the employee and
employer to understand the lay of the
land before determining eligibility.
Noteworthy Community Bank Anniversaries
Congratulations to the following Wisconsin community banks celebrating key charter anniversaries
in the first quarter of 2011:
140 years
Farmers & Merchants Bank, Tomah, on January 1
Community First Bank, Boscobel, on January 1
First Community Bank, Milton, on January 1
130 years
Farmers State Bank of Waupaca, on January 11
Blackhawk Bank, Beloit, on January 1
Union State Bank, Kewaunee, on March 12
120 years
90 years
State Bank of Florence, on January 1
110 years
State Bank of Drummond, on January 1
Bank of Oakfield, on January 1
WaterStone Bank, SSB, Wauwatosa, on January 1
The Portage County Bank, Almond, on January 1
Calumet County Bank, Brillion, on January 19
Peshtigo National Bank, on February 4
La Farge State Bank, on March 29
Farmers & Merchants Bank, Orfordville, on February 25
75 years
100 years
Great Midwest Bank, S.S.B., Brookfield, on March 25
The First State Bank, New London, on January 1
50 years
State Bank of Newburg, on January 1
14
The First National Bank, Eagle River, on January 1
March/April 2011
Coulee Bank, La Crosse, on February 27
CBW Banconomics Update: Selected FDIC Bank Figures as of December 31, 2010
Institution, City
Total Assets
($000)
Net
Income
ROA
(%)
ROE
($000)
M&I Marshall & Ilsley Bank,
Milwaukee
$49,144,443 $(503,331) -0.95 -8.77
Associated Bank, NA, Green Bay
$21,598,387
$22,959
0.10
0.83
Total Assets
($000)
Institution, City
Net
Income
ROA
(%)
ROE
($000)
Horicon Bank*
$512,029
$7,323
1.38 13.94
Mid-Wisconsin Bank, Medford
$505,624
$1,289
0.26
2.80
Bankers’ Bank, Madison
$494,772
$1,823
0.42
3.71
$474,366
$7,377
1.60 14.66
Johnson Bank, Racine
$4,935,451 $(135,345) -2.59 -33.20
AnchorBank, FSB, Madison
$3,588,391
$(39,469) -0.97 -23.79
Wisconsin Community Bank,
Madison
Bank Mutual, Brown Deer
$2,591,714
$(72,150) -2.19 -19.24
RidgeStone Bank, Brookfield
$463,849
FPC Financial, FSB, Madison
$1,894,814
$73,210
PyraMax Bank, FSB, Greenfield
$462,510
$(8,360) -1.68 -18.12
North Shore Bank FSB, Brookfield
$1,864,192
$(2,714) -0.15 -1.25
WaterStone Bank, SSB, Wauwatosa
$1,805,367
$(2,547) -0.14 -1.53
The Equitable Bank, SSB,
Wauwatosa
$458,034
$(3,312) -0.69 -8.38
National Exchange Bank & Trust,
Fond du Lac
$1,373,060
$13,784
Dairy State Bank, Rice Lake
$452,845
$3,209
0.72
7.47
ISB Community Bank, Ixonia
$412,176
$436
0.11
1.23
Guaranty Bank (MHC), Milwaukee
$1,270,503
West Pointe Bank, Oshkosh
$408,690
$1,687
0.38
4.56
Tri City National Bank, Oak Creek
$1,139,830
$14,486
Baylake Bank, Sturgeon Bay
$1,053,842
$1,889
0.18
1.91
Peoples State Bank, Prairie du
Chien*
$404,209
$5,309
1.41 14.27
$964,852
$5,148
0.55
5.79
The Port Washington State Bank
$391,299
$1,530
0.40
River Bank, Stoddard*
$390,898
$7,266
1.96 17.48
Denmark State Bank
$385,086
$2,843
0.76
7.54
Bank of Wisconsin Dells
$384,188
$2,405
0.63
6.90
First Business Bank, Madison
3.59 26.99
1.08
7.58
$(20,223) -1.54 -24.83
1.31 12.44
$230
0.05
0.47
4.59
River Valley Bank, Wausau*
$955,794
$7,698
0.79
7.30
First National Bank & Trust Co.,
Beloit
$861,010
$5,204
0.63
6.68
Park Bank, Madison
$829,314
$714
0.09
0.90
Business Bank, Appleton
$357,249
$(192) -0.05 -0.59
Bank First National, Manitowoc
$825,337
$7,501
0.91
8.70
State Bank of Cross Plains
$797,723
$4,557
0.60
6.75
Northwestern Bank, Chippewa
Falls
$355,140
$2,902
0.84
The Baraboo National Bank
$789,409
McFarland State Bank*
$354,646
$7,000
1.92 19.26
$352,391
$(2,473) -0.32 -3.35
8.13
Waukesha State Bank
$782,395
$5,552
0.72
5.57
Southport Bank, Kenosha*
$(12,511) -3.20 -58.77
Park Bank, Milwaukee*
$771,962
$887
0.11
1.14
Monona State Bank
$344,940
$1,840
0.54
4.95
1.81 18.29
DMB Community Bank, De Forest
$340,543
$2,212
0.63
7.49
First National Bank, Waupaca*
$747,915
$13,150
First Bank Financial Centre,
Oconomowoc
$738,699
$4,604
0.69
7.99
Fox Valley Savings Bank, Fond
du Lac
$330,337
$(298) -0.09 -0.80
Town Bank, Hartland
$731,108
$841
0.12
0.97
WoodTrust Bank, NA, Wis. Rapids*
$322,633
$7,039
2.16 20.26
Commerce State Bank, West Bend
$322,017
$1,273
0.41
4.41
State Bank Financial, La Crosse*
$317,310
$2,931
0.94
9.21
Investors Community Bank,
Manitowoc
$669,370
$6,391
0.98 10.54
Bremer Bank, NA, Menomonie
$657,134
$6,141
0.94 10.69
Bank of Sun Prairie
$316,688
Nicolet National Bank, Green Bay
$655,779
$1,651
0.26
Citizens Bank of Mukwonago
$641,505
$(1,921) -0.30 -2.81
First National Bank-Fox Valley,
Neenah
$306,850
Westbury Bank, West Bend
$625,060
$(1,324) -0.21 -2.41
First State Bank, New London
$305,213
Peoples State Bank, Wausau
$620,800
9.34
Abby Bank, Abbotsford
$292,930
$2,865
1.01 11.03
0.12
Peoples Bank of Wisconsin,
Hayward*
$292,652
$5,432
1.72 13.35
Security National Bank, Durand*
$291,315
First National Bank of River Falls*
$283,353
$2,263
0.79
8.38
PremierBank, Fort Atkinson
$281,838
$3,922
1.39
9.54
Stephenson National Bank & Trust,
Marinette*
$281,550
$3,274
1.21 11.84
Bank of Prairie du Sac
$277,410
$4,345
1.60 10.03
Forward Financial Bank SSB,
Marshfield
$267,193
$363
$5,408
0.89
2.59
$(5,847) -1.82 -12.91
$2,115
0.76
8.10
$(1,828) -0.57 -5.24
Community Bank & Trust,
Sheboygan
$615,110
$67
Time Federal Savings Bank,
Medford
$588,176
$9,645
Citizens Community Federal, Eau
Claire
$580,338
Thrivent Financial Bank, Appleton
$554,688
$2,535
0.45
4.27
Great Midwest Bank, SSB,
Brookfield
$543,675
$2,500
0.45
2.71
Blackhawk State Bank, Beloit
$538,734
$3,342
0.61
6.49
Charter Bank Eau Claire*
$535,180
$8,815
1.62 13.48
Coulee Bank, La Crosse*
$265,506
$3,019
1.28 13.34
$533,942
$914
0.17
Community State Bank, Union
Grove*
$264,869
$2,732
1.02
National Bank of Commerce,
Superior
* Subchapter S Corporation
0.01
1.67 10.70
$(7,273) -1.26 -13.73
1.55
March/April 2011
$(6,434) -2.12 -27.88
0.14
1.25
9.50
15
Institution, City
Total Assets
($000)
Net
Income
ROA
(%)
ROE
($000)
Farmers & Merchants Union Bank,
Columbus
$264,446
$1,970
0.70
8.27
Mound City Bank, Platteville
$262,375
$428
0.16
1.84
Capitol Bank, Madison
$253,223
$2,213
Community Bank CBD, Delavan
$252,017
InvestorsBank, Waukesha*
Institution, City
Total Assets
($000)
Union Bank & Trust Co., Evansville
$191,937
Legacy Bank, Milwaukee
$190,418
Woodford State Bank
$189,639
0.93 11.04
Peoples Bank, Elkhorn
$1,027
0.40
4.15
Hometown Bank, Fond du Lac
$251,815
$1,536
0.60
4.75
The First National Bank of Berlin
$250,373
$1,598
0.63
7.03
Clare Bank, NA, Platteville*
$245,380
$4,471
1.81 20.05
The Peoples Community Bank,
Mazomanie
$243,651
$2,019
0.83
Community First Bank, Boscobel*
$243,186
Walworth State Bank*
$242,876
Evergreen State Bank, Stoughton
$240,949
7.55
$(1,749) -0.71 -8.56
$3,100
1.32 14.86
$(22,604) -8.53 -188.58
Net
Income
$1,070
ROA
(%)
ROE
($000)
0.58
6.67
$(9,281) -4.32 -126.55
$405
0.21
2.54
$189,223
$773
0.41
4.38
$189,005
$1,418
0.73
5.98
Oregon Community Bank & Trust
$187,829
$252
0.13
1.06
River Cities Bank, Wisconsin
Rapids
$187,764
$1,714
0.91
8.47
The Farmers State Bank of
Waupaca
$185,740
$2,359
1.29
9.40
Sterling Bank, Barron*
$181,556
$3,048
1.77 21.22
First Bank of Baldwin*
$176,196
Farmers & Merchants Bank, Berlin
$172,720
Eagle Valley Bank, NA, St. Croix
Falls
$172,537
Timberwood Bank, Tomah
$172,413
$1,319
0.74
6.30
$590
0.35
2.98
$(1,346) -0.77 -6.51
$1,943
1.15 10.42
East Wis. Savings Bank, SA,
Kaukauna
$239,986
$853
American Nat’l. Bank-Fox Cities,
Appleton*
$239,806
$3,791
1.58 13.90
Marathon Savings Bank, Wausau
$168,927
Bank of Mauston*
$237,201
$5,668
2.43 22.86
Choice Bank, Oshkosh
$168,223
$(435) -0.30 -2.50
Securant Bank & Trust,
Menomonee Falls
$237,097
$784
0.31
4.08
Oostburg State Bank
$168,078
$1,365
0.86
6.73
American Bank, Fond du Lac
$234,963
$2,967
1.30
7.89
Intercity State Bank, Schofield
$165,514
$2,357
1.52
9.56
Chippewa Valley Bank, Winter*
$234,932
$3,011
1.33 15.34
The First National Bank of
Hartford
$161,704
$962
0.61
4.58
Bank of Luxemburg
$233,289
$1,900
0.84
8.39
Peshtigo National Bank*
$157,803
$1,313
0.84
9.56
First Citizens State Bank of
Whitewater
$230,973
$3,073
1.38
9.24
State Bank of Chilton*
$156,783
Royal Bank, Elroy
$230,586
$2,539
1.13 11.82
Paper City, SA, Wisconsin Rapids
$156,084
$577
0.37
4.23
Northern State Bank, Ashland*
$222,831
$5,055
2.41 30.25
Farmers & Merchants Bank &
Trust Co., Marinette
$155,377
$655
0.43
4.40
Farmers Savings Bank, Mineral
Point*
$222,438
$2,794
1.28 14.96
State Bank of Newburg
$155,088
$2,113
1.45 11.00
Oak Bank, Fitchburg
$219,611
$1,885
0.90
9.48
First National Community Bank,
New Richmond*
$153,386
$1,048
0.69
7.36
Hartford Savings Bank
$218,721
$471
0.22
2.46
Waumandee State Bank
$152,874
$1,005
0.68
7.12
Middleton Community Bank
$213,893
$710
0.33
2.88
Livingston State Bank
$152,297
$(95) -0.06 -0.61
Jackson County Bank, Black River
Falls*
$212,821
$4,186
1.95 20.03
Home Savings Bank, Madison
$149,546
$(740) -0.49 -7.04
Nekoosa Port Edwards State Bank,
Nekoosa*
Citizens First Bank, Viroqua*
$148,954
$210,956
$2,574
1.24 11.32
First National Bank of Eagle River*
$147,258
BLC Community Bank, Little
Chute*
$210,502
$3,351
1.53 13.78
Laona State Bank
$146,884
$1,038
0.72
7.02
Citizens State Bank of Loyal
$145,891
$460
0.32
3.11
Banks of Wisconsin, Kenosha*
$210,049
Citizens State Bank, Hudson*
$144,652
United Bank, Osseo
$207,442
$1,644
0.78
8.35
Layton State Bank, Milwaukee
$143,906
$254
0.18
1.74
Farmers & Merchants Bank,
Tomah
$205,240
$775
0.37
3.99
Alliance Bank, Mondovi*
$142,440
$1,369
0.97
9.74
Foundations Bank, Pewaukee
$203,250
First Bus. Bank-Milw., Brookfield
$141,541
The First National Bank of Bangor
$199,185
$3,104
1.59
8.33
Sunset Bank & Savings, Waukesha
$139,762
$356
0.26
2.70
Bank of Lake Mills*
$198,900
$151
0.08
0.96
Farmers & Merchants State Bank,
Waterloo
$136,276
$543
0.40
3.22
Bank of Alma
$197,507
$3,949
2.01
6.16
Shell Lake State Bank*
$132,850
$2,666
2.04 11.01
Premier Community Bank, Marion
$196,469
$1,358
0.66
6.58
Markesan State Bank
$132,029
$1,283
1.04
The Bank of New Glarus
$193,306
$1,350
0.73
7.18
0.35
4.87
$(3,646) -1.61 -24.28
$(4,139) -1.90 -23.26
16
March/April 2011
$(4,211) -2.25 -47.68
$(1,632) -1.06 -8.00
$1,681
1.15 11.04
$(1,037) -0.67 -8.12
$(2,148) -1.37 -25.49
$(2,581) -1.57 -18.00
8.95
Institution, City
Total Assets
($000)
Net
Income
ROA
(%)
ROE
($000)
American Bank & Trust Wis., Cuba
City*
$130,011
$1,636
First Federal Bank of Wis.,
Waukesha
$127,578
$(496) -0.40 -3.91
Community Bank of Northern
Wis., Rice Lake*
$127,516
$1,483
The First National Bank of
Platteville
$127,366
$87
0.07
0.63
Cornerstone Community Bank,
Grafton
$126,268
$804
0.64
7.57
The National Bank of Waupun
$124,595
Bay View Federal S&L, Milwaukee
$123,707
$478
0.39
2.98
Advantage Community Bank,
Dorchester
$122,512
$680
0.58
5.74
The Bank of Brodhead
$120,396
$978
0.84
6.27
1.29 12.86
1.20 15.44
$(1,074) -0.86 -8.98
Total Assets
($000)
Institution, City
$91,447
$91,164
Heritage Bank, Spencer
$90,486
$150
0.17
1.71
First National Bank at Darlington
$90,056
$716
0.83
6.82
Calumet County Bank, Brillion
$89,627
$104
0.12
1.26
First Bank, Tomah
$89,285
$772
0.89
9.69
Settlers Bank, De Forest
$89,216
$296
0.39
3.11
Bank of Poynette
$89,175
$366
0.42
4.69
North Milwaukee State Bank
$88,837
$451
0.49
5.66
TSB Bank, Lomira
$88,636
$320
0.36
4.67
Cleveland State Bank
$85,298
$770
0.96 11.58
Cumberland Federal Bank, FSB
$84,657
$753
0.89
Bank of Galesville*
$84,627
$1,718
River Falls State Bank*
$84,008
$726
Badger State Bank, Cassville*
$83,828
Union State Bank, Kewaunee
$83,046
$347
$(37) -0.05 -0.32
Grand Marsh State Bank
$118,623
$1,494
1.30
8.48
Bank North, Crivitz
$118,288
$625
0.52
4.82
KeySavings Bank, Wisconsin
Rapids
$80,915
Mid America Bank, Janesville
$114,893
$701
0.73
5.75
Spring Bank, Brookfield
$114,358
$1,222
Bay Bank, Green Bay
$113,040
State Bank of Arcadia*
$112,737
The American National Bank of
Beaver Dam
$110,354
Integrity First Bank, Wausau
$109,423
$(3,829) -3.17 -39.79
Badger Bank, Fort Atkinson
$109,293
Peoples State Bank of Bloomer
$109,021
Bank of Kaukauna*
$108,628
$(2,348) -1.77 -24.95
7.49
Cambridge State Bank
$118,753
9.86
0.87
Bank of Deerfield*
Community Bank of Central Wis.,
Colby
1.07
ROE
($000)
$91,996
$118,786
$796
ROA
(%)
Banner Banks, Birnamwood*
Wolf River Community Bank,
Hortonville
$1,254
Net
Income
$1,881
2.04 16.33
$(3,622) -3.67 -34.76
8.14
2.05 15.58
0.88
5.47
$(1,566) -1.73 -64.01
0.43
Dairyland State Bank, Bruce*
$79,619
$198
1.29 10.98
First Community Bank, Milton*
$79,604
$1,116
$440
0.37
$999
0.90 10.76
Hiawatha National Bank, Hager
City*
$79,505
$(726) -1.13 -7.94
$438
0.40
Tomahawk Community Bank
S.S.B.
$78,494
$(1,726) -2.28 -20.35
Bank of Wausau
$77,633
$(2,943) -3.59 -40.59
$(750) -0.66 -6.48
Farmers State Bank, Markesan
$77,621
$(405) -0.51 -3.79
$1,313
State Bank of Florence
$75,921
First American Bank, NA, Hudson*
$75,382
$74,657
$423
0.60
6.51
0.45
4.14
4.59
4.12
1.22 10.23
$(1,684) -1.69 -14.84
$279
0.25
4.21
2.16
1.41 15.48
0.39
4.18
$(145) -0.20 -2.18
Pioneer Bank, Auburndale
$108,376
$429
0.41
3.29
Bank of Oakfield
Marathon State Bank
$106,120
$629
0.59
3.14
Bank of Monticello
$74,307
$325
Richland County Bank, Richland
Center
$105,544
$669
0.63
3.10
Union Bank of Blair*
$74,294
$1,091
1.62 16.41
Unity Bank, Augusta*
$72,373
$865
1.23 10.46
Stratford State Bank
$103,500
$247
0.24
2.25
Citizens State Bank, Cadott
$103,302
$36
0.04
0.41
Black River Country Bank, Black
River Falls*
$69,592
$1,186
1.68 13.68
Community Bank of Cameron*
$101,921
$1,581
1.57 19.72
Security Bank, New Auburn
$68,535
$19
1.29 11.74
Bank of Milton
$67,537
$1,211
$(415) -0.61 -6.94
0.03
0.24
1.79 20.32
First National Bank of Park Falls*
$100,238
$1,245
Fox River State Bank, Burlington
$99,570
$286
0.28
2.79
Bancroft State Bank*
$67,099
Portage County Bank, Almond*
$97,520
$806
0.86
8.75
Lincoln Community Bank, Merrill
$66,964
$90
0.14
1.35
3.01 39.22
Community First Bank, Rosholt*
$66,393
$455
0.69
7.51
0.20
1.80
Greenleaf Wayside Bank*
$66,289
$741
1.19 12.84
Pigeon Falls State Bank
$65,946
$388
0.63
Mitchell Bank, Milwaukee
$65,386
$(664) -0.94 -7.45
$64,655
$1,128
$64,628
$328
Citizens Bank of Clayton*
$97,322
$2,630
Commercial Bank, Whitewater
$95,592
$177
Fidelity National Bank, Medford
$94,229
$509
0.54
5.30
Union National Bank & Trust Co.,
Sparta
$92,546
$731
0.85
5.11
Farmers State Bank Hillsboro
$92,281
$1,375
1.54
9.86
Headwaters State Bank, Land
O’Lakes*
Security State Bank, Iron River
$92,152
$909
0.90
8.52
The First National Bank of Niagara
5.67
1.83 14.26
0.51
4.98
March/April 2011
17
Institution, City
Total Assets
($000)
Net
Income
Superior Savings Bank
$63,769
The Greenwood’s State Bank, Lake
Mills
$184
$61,192
Bank of Turtle Lake*
$60,702
Community Business Bank, Sauk
City
$60,430
Bank of Cashton
$59,049
Independence State Bank*
$58,944
The Pineries Bank, Stevens Point*
$58,713
$974
Pioneer Bank of Wisconsin,
Ladysmith
$58,544
Union State Bank of West Salem
$57,055
ROA
(%)
ROE
($000)
0.29
1.82
$(348) -0.53 -4.34
First National Bank & Trust,
Barron*
$44,615
$(72) -0.16 -1.80
$281
0.68
4.65
$41,854
$247
0.59
4.36
$(127) -0.20 -2.20
John O. Melby & Co. Bank,
Whitehall*
$41,782
$298
0.74
4.10
Merrill Federal Savings and Loan
Association
$40,642
$268
0.68
6.32
1.68 17.86
The Necedah Bank
$39,858
$115
0.29
2.74
$194
0.34
3.36
Farmers & Merchants Bank, of
Orfordville
$39,555
$240
0.64
6.29
$534
0.97
6.92
Gratiot State Bank
$39,396
$252
0.66
5.57
Palmyra State Bank
$38,242
$383
1.02
5.83
State Bank of Cazenovia
$35,238
$195
0.58
3.46
WPS Community Bank, FSB,
Madison
$34,425
$(483) -1.55 -5.36
Community Financial Bank,
Prentice
$33,296
$(155) -0.49 -3.35
Superior Bank*
$32,779
$252
0.77
Bank of Ontario*
$32,694
$559
1.78 17.65
6.52
Highland State Bank*
$28,210
$261
0.96 10.67
Farmers & Merchants Bank,
Rudolph
$27,310
$246
0.93
Community State Bank, Norwalk*
$26,922
State Bank, Gresham*
$23,212
$327
Columbia S&L, Milwaukee
$22,537
$(36) -0.16 -1.28
First National Bank in Tigerton*
$20,980
$183
0.87
5.88
Milton Savings Bank
$16,390
$47
0.28
3.85
M&I Bank of Mayville
$3,108
$4
0.13
0.17
$768
1.36 14.10
$(1,249) -2.11 -25.06
Rural American Bank-Luck*
$55,269
$814
1.46 19.24
Mayville Savings Bank
$55,122
$104
0.20
2.11
Farmers Exchange Bank, Neshkoro
$54,027
$534
1.00
7.93
Hustisford State Bank
$53,253
$465
0.90
6.56
Northwestern Mutual Wealth
Mngmnt Co., Milwaukee
$52,708
Waldo State Bank
$50,153
$12,937 26.61 29.16
$392
0.87
State Bank of Reeseville
$50,002
$257
0.54
4.12
Bonduel State Bank
$49,900
$618
1.26
5.59
The Benton State Bank*
$49,619
$210
0.45
5.09
La Farge State Bank
$49,103
$1,005
2.15
7.00
Collins State Bank
$47,997
$217
0.50
6.23
Ladysmith Federal Savings and
Loan Association
$47,008
$158
0.35
3.81
$(199) -0.40 -4.59
$631
1.40
1.49
9.75
ADA ATM UPGRADES
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Free ATM Portfolio Evaluations
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March/April 2011
6.20
9.33
$(130) -0.48 -4.67
18
ROE
($000)
$42,751
2.70 25.19
$46,370
ROA
(%)
State Bank of Drummond
$1,545
International Bank of Amherst*
Net
Income
Park Bank, Holmen
0.16
$55,950
$46,905
Total Assets
($000)
1.53
$94
Farmers & Merchants Bank of
Kendall*
Town & Country Bank, Watertown
Institution, City
5.40
The power of one.
With a Home and Highway® policy from West Bend, you’ll have
one policy that protects your home, autos, personal possessions,
boat, motorcycles, and more. One policy means one premium,
one bill, one deductible. And it’s all available from one local agent.
As a member of the CBW, you’ll also receive an additional
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numbers, too.
To find out more, call an independent insurance agency in your
area that represents West Bend. Visit thesilverlining.com for the
name of the agency nearest you.
thesilverlining.com
March/April 2011
19
CBW Corporate and Associate Members as of March 31, 2011
CBW Corporate and Associate Members provide a comprehensive collection of products and services to meet
the needs of community banks. Please
visit: www.communitybankers.org for
more information or contact Shannon
Schlueter at 608-833-2385.
GOLD CORPORATE MEMBERS
Community Bankers Financial Services, Eagan, Minn.
Kevin Christians
612-720-3199
bankkevin1@msn.com
CBFS represents the major insurance
markets for banks including Travelers,
Chubb, Zurich, Progressive, and CNA.
Coverage includes bond and D&O,
property/casualty, computer crimes,
mortgage protection, and flood determination. Kevin Christians and Phil
Hoover have been addressing bankers’
insurance needs for over a combined
50 years.
Executive Benefits Network,
Milwaukee
David Fritz
414-431-9688
dfritz@ebn-design.com
Specialists in executive compensation and benefit planning, implementation, and performance reviews of bankowned life insurance (BOLI) and benefit
administration support services.
McGladrey, Inc., Milwaukee
John Behringer
414-298-2855
john.behringer@rsmi.com
A national business tax, consulting,
and accounting firm that is a leading
provider of financially focused services
to financial institutions.
PULSE, Houston, Texas
Denise Stigge
832-214-0181
dstigge@pulsenetwork.com
A leading ATM/debit network servicing more than 4,400 financial institutions across the U.S. Pulse links cardholders with ATMs and POS terminals
nationwide and provides international
cash access for Diners Club and Discover cardholders, with over 650,000
ATMs in nearly 60 countries, including
20
more than 289,000 U.S. ATMs.
Travelers, Brookfield
Jill Howe
262-825-9071
jhowe@travelers.com
Travelers offers insurance protection
products including the financial institution bond, D&O liability, employment
practices liability, bankers professional
liability, trust errors and omissions,
property, general liability, automobile,
and workers compensation insurance.
Wipfli LLP, Green Bay
JoAnn Cotter
920-662-2804
jcotter@wipfli.com
Wipfli’s Financial Institution Practice
serves over 560 financial institutions
in the upper Midwest. Its mission is
to educate, advise, and assist financial
institutions in navigating the complex
environment they face. Whether your
needs include regulatory compliance,
profit improvement, risk management,
strategic planning/board development,
information technology, audit, or tax,
Wipfli experts can assist you.
SILVER CORPORATE MEMBERS
BOSC, Inc., Menomonee Falls
Josh Hunt
866-440-6515
jhunt@bokf.com
BOSC, Inc., is a subsidiary of BOK
Financial Corporation, a highly capitalized $24 billion bank holding company. It helps banks identify interest
rate, liquidity, earnings, and capital risks
while developing customized strategies
to enhance earnings and mitigate these
risks. Core services include asset/liability modeling and consulting, investment
trading and consulting, and wholesale
funding solutions.
Shazam, Baraboo
Tim Luger
800-490-7284
tluger@shazam.net
As an ATM and debit card processor, Shazam offers ATM processing
services; Visa Check and Debit Mastercard national debit products including business debit and health savings
account (HSA) cards; card authoriza-
March/April 2011
tion services; merchant processing;
ACH services; and information security
solutions.
West Bend Mutual Insurance
Co., West Bend
Scott Stueber
262-334-6588
sstueber@wbmi.com
Home and Highway Personal Insurance Program for bank employees.
BRONZE CORPORATE MEMBERS
Baker Tilly, Milwaukee
Christine Fenske
414-777-5415
cfenske@virchowkrause.com
Baker Tilly offers audit, tax, valuations, loan reviews, and consulting products and services.
Chubb Group of Insurance
Co., Milwaukee
Kimberly Charlett
312-496-1192
kcharlett@chubb.com
Chubb’s Community Bank Program
provides tailored professional liability
products and property and casualty
insurance.
Federal Home Loan Bank of
Chicago, Chicago, Ill.
Chad Brandt
312-565-5700
cbrandt@fhlbc.com
The FHLB provides liquidity and support of community investment projects
to member financial institutions.
Fiserv, Inc., Brookfield
Kevin Mehl
262-879-5743
kevin.mehl@fiserv.com
Fiserv, Inc. (NASDAQ: FISV) is a
global provider of information management and electronic commerce systems
for the financial services industry, driving innovation that transforms experiences for financial institutions and their
customers. Fiserv is ranked No. 1 on
the FinTech 100 survey of top technology partners to the financial services
industry.
Secure Banking Solutions,
LLC, Oregon
Alan Novy
608-807-9817
alan.novy@protectmybank.com
Secure Banking Solutions offers IT
audit, risk assessment, policy and procedure development, penetration testing, vulnerability assessment, business
continuity planning, incident response
planning, risk management consulting,
and BSA audit.
Spectrum Investment
Advisors, Mequon
Jim Marshall
800-242-4735
jfmarshall@spectruminvestor.com
Spectrum is a registered investment
advisor.
REGULAR ASSOCIATE MEMBERS
Associated BankCorrespondent, Green Bay
Dan Miller
920-433-3165
dan.miller@associatedbank.com
The bank is a diversified market
leader that provides a full range of services and advanced technology support
to financial institutions.
Bank Compensation
Consulting, Inc., Plano, Texas
Kathy Orr Smith
800-781-2099
info@bcc-usa.com
Bank Compensation Consulting
delivers expertise in executive/director
benefit plans, compensation consulting,
bank-owned life insurance (BOLI), and
provides quality “Raving Fan” service.
Bank Holding Company
Association, Edina, Minn.
Tom Bengston
952-835-2248
info@thebhca.org
BHCA’s primary mission is to educate
bank owners, directors, and senior officers on current ownership, legislative,
and regulatory issues with the financial
service industry.
Benning Group, LLC, Monroe
Don Benning
608-325-5035
dbenning@benninggroup.com
Benning Group provides audits, tax
services, directors’ exams, BSA exams,
and internal audit functions.
Bruns Systems, Madison
Steve Bruns
800-255-9472
sbruns@brunsinc.com
Bruns Systems handles the most
effective cash handling systems possible.
Cbanc Network, Austin, Texas
Myers Dupuy
512-685-2036
myers@cbancnetwork.com
An online network of community
banks to share best practices among
banks from across the country.
Center for Financial Training,
Whitefish Bay
Beverly Klug
414-332-6468
beverly@cftncs.org
CFT provides quality education to
meet the needs of community banks
and their employees—from novice to
seasoned bank professionals.
Central States Health & Life
Co., Forest Lake, Minn.
Dave Okeson
651-982-6809
dokeson@cso.com
Central States Health & Life offers
loan-related insurance products.
CFC Technology
Corporation, Plymouth, Minn.
Kimberlee Karr
763-235-5336
kkarr@cfctechnology.com
CFC Technology offers the simplest,
turnkey hosted solutions giving financial
institutions greater opportunities for
growth, compliance, and operational
excellence.
Clifton Gunderson LLP,
Middleton
Mike Stoetzel
608-662-8600
mike.stoetzel@cliftoncpa.com
Clifton Gunderson provides a wide
range of assurance, accounting, tax, and
consulting services.
Coulee Region Solutions,
LaCrosse
Hugh Steffens
608-779-9400
hsteffens@cr-sol.com
CR Solutions provides cost-effective technology solutions, including
encrypted offsite data backup, network
design and implementation services,
managed network monitoring and data
security services, and a robustly staffed
help desk for remote support.
Crescent Mortgage, DePere
Dan Biebel
920-336-9663
dbiebel@crescentmortgage.net
A community bank-owned mortgage
wholesaler catering to the unique needs
of the community banker.
Dougherty & Co. LLC,
Minneapolis, Minn.
Thomas Wilder
612-376-4085
twilder@doughertymarkets.com
Dougherty & Company is a diversified investment banking firm with 30
years of underwriting and financial advisory experience. It offers a variety of services including tax-exempt and taxable
financing for retirement communities,
hospitals, and long-term care facilities.
Edge One, Stoughton
Mike Sasse
608-873-3506
msasse@edgeone.com
Edge One is Wisconsin’s turnkey
ATM solutions provider offering ADA
compliance assistance, ATM sales, first
and second line service, transaction processing, teller cash recyclers, and money
counters.
Elite Payment Systems, New
Berlin
John Maciosek
262-679-1124
johnm@elitepaymentsystems.com
Elite Payment Systems offers innovative and customized merchant payment processing options—you can
accept payments with a terminal, POS
System, SmartPhone, Internet, ACH,
and much more.
Emjay Corporation, Glendale
Linda Wimmer
800-553-6529
linda.wimmer@retirementpartner.
com
Emjay is a retirement plan
administrator/recordkeeper.
March/April 2011
21
Federal Reserve Bank of MN,
Minneapolis, Minn.
Amanda Dorphy
612-204-5894
amanda.dorphy@mlps.frb.org
The bank provides accessibility
and flexibility for a dynamic, evolving
industry, including Check 21, FedACH,
FedCash, FedWire, national settlement,
treasury services, account management,
and service charge information.
Federated Investors, Pittsburgh,
Penn.
Milt Klohn
414-288-1951
mklohn@mm.com
Since 1955, millions of investors in
the United States and around the globe
have relied on Federated Investors, Inc.
(NYSE: FII) for world-class investment
management. Federated has grown to
become one of the nation’s largest investment managers with $358.2 billion in
assets under management.
Financial Insurance Admin.,
Madison
Thomas Stanek
608-241-5511
tom@finins.net
Financial Insurance Administrators
offers a wide array of insurance products, many of which revolve around
the lending department, along with the
necessary support and training for the
bank’s personnel.
Financial Marketing Corporation, Palmyra
Terry Burrington
608-732-0382
terryburrington@charter.net
Financial Marketing Corp. is a marketing, advertising, and public relations
consultant.
FIS, Milwaukee
Michelle Przybylski
414-357-9531
michelle.przybylski@fisglobal.com
A leading global provider of banking
and payments technologies, FIS provides
financial institution core processing, and
card issuer and transaction processing
services, including the NYCE Network
to more than 14,000 financial institutions and businesses in more than 90
countries worldwide.
22
Fortress Partners, Capital
Mgmt., Hartland
Jon Bruss
262-369-1095
bruss@fortresspartners.com
In addition to managing bank investments for institutions and individuals,
Fortress Partners provides strategic capital advising for community banks.
Generations Title Co., LLC,
Madison
Cindy McCabe
608-661-0823
cmccabe@generationstitle.com
Generations Title provides the highest quality commercial, residential,
and settlement services throughout
Wisconsin.
Godfrey & Kahn, Milwaukee
James Sheriff
414-287-9390
jsheriff@gklaw.com
Godfrey & Kahn is a full-service law
firm that includes banking and financial
institutions practice.
Harbour Investments, Inc.,
Madison
Rhonda Meyer
608-662-6100
rmeyer@harbourinv.com
Harbour Investments is a broker/
dealer investment center for bank
customers.
Harland Clarke, San Antonio,
Texas
Andy Hanson
734-678-2035
andy.hanson@harlandclarke.com
Harland Clarke is a provider of check
printing solutions as well as many strategic marketing, education, technology,
and gift card services.
Harland Financial Solutions,
Lake Mary, Fla.
Stacey Leone
407-804-6653
stacey.leone@harlandfs.com
Harland Financial Solutions supplies
software and services to thousands of
financial institutions.
ICBA, Appleton
Michael Marx
920-257-3376
michael.marx@icba.org
The nation’s voice for community
March/April 2011
banks, ICBA exclusively represents
the interests of the community banking industry and the communities they
serve.
ICBA Bancard/TCM,
Washington, D.C.
Linda Echard
800-242-4770
bancard@icba.org
ICBA Bancard provides community
banks access to comprehensive and competitive electronic payment solutions,
including credit card issuing, debit/ATM
card programs for both consumers and
small businesses.
ICBA Mortgage,
Washington, D.C.
Elizabeth Deal
800-253-5356
elizabeth.deal@icba.org
ICBA Mortgage offers servicing
released and retained secondary mortgage solutions designed exclusively for
community banks. Direct selling to
Fannie/Freddie and reverse mortgage
programs.
ICBA Reinsurance,
Washington, D.C.
Steve Ello
888-790-6625
reinsurance@icba.org
With exclusive relationships with
national insurance providers, community banks gain access to life and
disability insurance coverages to meet
virtually any borrowing need.
ICBA Securities, Memphis, Tenn.
Jim Reber
800-422-6442
jreber@icbasecurities.com
ICBA Securities provides community
bankers with quality investment products and services at competitive prices.
Services include education and analysis
to help community banks select the most
suitable securities for their portfolios
and security and risk management.
Integrated Security Solutions,
Cottage Grove
Pete Malicki
608-225-4731
pmalicki@integratedsecuritysolutions.
biz
Integrated Security Solutions is a provider of electronic and physical security
equipment and service specific to banks.
Jefferson Wells, Milwaukee
Missy Helgerson
414-347-2345
melissa.helgerson@jeffersonwells.
com
Jefferson Wells delivers professional
services in the areas of risk advisory, tax,
finance, and accounting. It serves clients,
including Fortune 500, FTSE 350, and
Global 1000 companies, through highly
experienced professionals working from
offices worldwide.
La Macchia Group, Milwaukee
Dave Throndson
414-223-4400
dave@lamacchiagroup.com
La Macchia Group is a comprehensive
consulting and design-build firm creating financial institutions that are brandcentered facilities, providing repeatable
market capture strategies with documented results.
Lasco, Marquette, Mich.
Dennis VanLandschoot
906-228-1051
dennis@lascoinc.com
Lasco is a bank service provider specializing in small to mid-size institutions
across the Upper Peninsula, Michigan,
and Northern Wisconsin.
Lerdahl Business Interiors,
Middleton
Jeff Lerdahl
608-831-1010
jlerdahl@lerdahl.com
Lerdahl Business Interiors offers creative design services to enrich your work
environment. Its approach includes strategic design services, careful selection of
specialty furniture and interior products, and customized finishes refined
for your industry’s specific applications.
Locknet, Inc., LaCrosse
Lynn Holzworth
608-785-7100
marketing@locknet-inc.com
LOCKNET is an IT solutions provider offering remote backups, network
management, and data security, including user friendly dashboards and compliance tools.
Magic-Wrighter, Grand Rapids,
Mich.
Robert Wright
616-855-0775
bobw@mvpbanking.com
Magic-Wrighter is the nation’s leading supplier of integrated ACH direct
origination, Internet payments, IVR,
Check 21, remote deposit capture, and
related electronic transaction services.
Michael Best & Friedrich
LLP, Milwaukee
W. Charles Jackson
414-225-4944
wcjackson@michaelbest.com
Michael Best provides a wide range
of bank and holding company representation, including branch transactions,
regulatory representation and compliance, mergers, acquisitions, executive
compensation, real estate, loan workouts, litigation, and creditors rights.
Mortgage Services III, LLC,
Bloomington, Ill.
Don Starks
815-378-8551
dstarks@msiloans.biz
Mortgage Services III, whether your
bank is looking to start a mortgage program and broker loans or you already
have a full in-house mortgage program
and are a correspondent, has a full range
of services to fit your needs.
Mortgagebot LLC, Mequon
Donna Daniels
877-861-3354
donna.daniels@mortgagebot.com
Mortgagebot provides PowerSite,
the award-winning Web-based suite
of mortgage-origination solutions, and
Mortgage Marvel, the revolutionary new
mortgage-shopping service that helps
community lenders compete with popular online lenders.
MRA-The Management
Association, Waukesha
Kristine Hillmer
262-696-3490
kris.hillmer@mranet.org
This employers’ association provides
salary surveys and helps organizations
recruit, retain, and develop productive
employees through HR information,
training, and consulting.
Northland Securities, Inc.,
Minneapolis, Minn.
Linda Knutson
612-851-5992
lknutson@northlandsecurities.com
Northland Securities is a primary
underwriter/advisor for local communities engaged in the issuance of bankqualified municipal securities. As a
full-service broker/dealer, it provides
portfolio “calibration” services to assist
community bank portfolio managers in
maximizing investment returns.
Pekin Life Insurance
Company, Pekin, Ill.
Jay Holloman
309-478-2403
jholloman@pekininsurance.com
Pekin Insurance Company provides
professional service, quality products,
and expertise in the development and
implementation of debt protection,
credit insurance, mortgage insurance,
and annuity programs for financial
institutions.
PMA Financial Network Inc.,
Naperville, Ill.
Jim Lutter
630-657-6460
jlutter@pmanetwork.com
PMA changes the way banks view
funding through an advisory approach
that includes public funds, brokered
deliverable CDs, and non-brokered CDs.
Premier Check Printing,
Mahtomedi, Minn.
Art Laatsch
612-986-0777
alaatsch@premiercheck.com
Premier Check Printing provides the
most advanced, cost-effective in-house
check printing solution to financial
institutions.
Quarles & Brady LLP,
Milwaukee
James Friedman
414-277-5735
jdf@quarles.com
Quarles & Brady is a full-service law
firm, including a practice in financial
institutions.
March/April 2011
23
Radian Guaranty, Inc.,
Oak Lawn, Ill.
Brian Frame
312-953-9423
brian.frame@radian.biz
Radian Guaranty, Inc., provides a
full array of mortgage insurance products and related services to lenders
nationwide.
Ruder Ware, L.L.S.C., Wausau
Matthew Rowe
715-845-4336
mrowe@ruderware.com
Ruder Ware offers loan documentation, foreclosures, collections, mergers,
acquisitions, holding company matters,
compliance, employment, securities,
and consultation on general corporate
matters.
SNL Financial Company,
Charlottesville, VA
Jeff Bynum
434-951-4405
jbynum@snl.com
SNL is the trusted information partner to more than 500 community banks
in the U.S., including more than 12 in
Wisconsin. SNL’s data, analytical tools,
and news are indispensable resources
enabling community banks to analyze
their performance against peers, assess
their branch footprint, and evaluate
M&A opportunities.
Superior Safe & Security,
LLC, Green Bay
John Gossen
920-366-7811
jgossen@superiorsafeandsecurity.
com
Superior Safe & Security offers sale,
installation, and service of electronic
and physical security equipment.
The Baker Group, Springfield, Ill.
Ken Judd
888-333-0750
kjudd@gobaker.com
The Baker Group is a leader in the
development of innovative asset/liability
and investment portfolio management
services for community banks.
The Redmond Company,
Waukesha
Martin Steinert
262-896-8471
msteinert@theredmondco.com
The Redmond Company is a plan/
24
design/build firm. It performs strategic planning, demographic/market
research, brokerage, real estate services,
due diligence, building pro formas, site
analysis and feasibility tests, branch
deployment studies, design, construction management services, and branding/merchandising services.
WACHA, Germantown
Mary Gilmeister
262-345-1245
mgilmeister@wacha.org
WACHA is a not-for-profit service
organization providing educational and
informational resources on electronic
payments.
WHEDA, Milwaukee
John Schlultz
414-227-4039
john.schultz@wheda.com
WHEDA is dedicated to helping Wisconsin communities with their housing
needs and has been a leader in assisting
low- and middle-income people with
affordable housing.
Whyte Hirschboeck Dudek
S.C., Madison
Daniel McGarry
608-234-6046
dmcgarry@whdlaw.com
Whyte Hirschboeck Dudek S.C. is
one of Wisconsin’s leading full-service
law firms, with 150 professionals based
in Milwaukee and Madison.
Wisconsin Business
Development, Monona
Pamela Rich
608-819-0390
prrich@wbd.org
Since 1981, Wisconsin Business
Development has partnered with financial institutions to fund over $2 billion
in community development projects
and assisted in contributing more than
64,000 jobs statewide.
Young & Associates Inc., Kent,
Ohio
Jim Kleinfelter
330-678-0524
jkleinfelter@younginc.com
Young & Associates is a community
bank consulting firm providing consulting, education, and products covering
risk management, capital planning, strategic planning, profit planning, mergers/acquisitions, branching/expansion,
internal audit, lending and loan review,
IT, and regulatory compliance.
Zions Correspondent
Banking, Salt Lake City, Utah
Mike Jensen
801-844-7846
michael.jensen@zionsbank.com
Zions Bank Correspondent Banking
has been serving community banks for
more than 100 years.
Zurich North America,
Charlotte, N.C.
Len Hampton
704-551-3435
len.hampton@zurichna.com
Since 1890, Zurich has delivered
insurance solutions to financial institutions, and today insures one in three
banks. We offer more than 20 coverages along with award-winning claims
services.
Business Owners “Cautiously Optimistic”
MADISON—A survey released by First
Business Bank finds that Wisconsin businesses are “cautiously optimistic” about
the climate for growth during 2011.
Almost half (49 percent) of businesses
in Dane, Milwaukee/Waukesha counties, and Northeastern Wisconsin predict increases in revenue, profitability,
and wages—with those in Northeastern
Wisconsin having the highest percentage of firms reporting the increases in
the First Business Economic Survey. The
annual survey, sponsored by First Business Bank, is administered by the A.C.
Nielsen Center for Marketing Research
March/April 2011
at the University of Wisconsin. Some 63
percent of businesses in Northeastern
Wisconsin forecast increased revenue.
Sales revenue projections vary widely
with 58 percent of Dane County firms
expecting to see increases in sales,
compared to 56 percent of firms in the
Milwaukee/Waukesha region. Sales forecasts are positive for 63 percent of firms
in Northeastern Wisconsin.
Businesses in all three regions of the
state expect positive performances in 2011.
Additional details as well as the full
survey can be found at www.firstbusiness.
com. Click on Newsroom.
Paid Advertisement
The Social Dilemma of Community Banks
By: Barb Zachariasen, Information Security Consultant, Secure Banking Solutions, LLC
If Facebook was a country, it would be the third largest country in the world,
with over 600 million active uses, 50% of whom log in at least once a day.
7 out of every 100 total visits to any website in the US is to Facebook.
You must be asking
yourself, ―How does this affect
me? How does this affect our
Community Bank?‖ According to
recent statistics:
17%
of
US
companies
investigated the exposure of
confidential, sensitive or private
information via a posting to a
social
networking
site
(Outbound email and data loss
prevention in today’s enterprise,
2009)
American Banker.com reveals
that 57% of their firms had no
written policy regarding Social
Media
Network-Box.com reported that
7 out of 100 URLs accessed by
businesses were directed to
Facebook and 10% of Internet
bandwidth went to YouTube.
Research by Convergys Corp.
has shown that a negative
customer review on YouTube,
Twitter or Facebook can cost a
company about 30 customers.
One of the most commonly
discussed issues regarding Social
Media and business is whether
employees should be permitted to
access Social Media platforms
during the workday. The Internet is
full of debate for and against
employee use of Social Media.
Critics state that employee use of
Social Media at work will result in a
waste
of
the
organization’s
valuable resources, as well as
potentially
endanger
the
organization due to data leakage
or legal liabilities.
Advocates of Social Media
acknowledge that risks exist, but
the potential benefits outweigh the
risks so long as the risks are wellmanaged. One benefit is Social
Media’s ability to significantly
increase brand awareness in an
effective and economical manner.
In addition, Social Media has the
potential for increasing sales as a
result of an effective marketing
initiative, and increasing goodwill
for your organization internally and
externally.
Employee use of Social
Media is not right for all
organizations. Some may find it
beneficial in relation to business
development,
branding,
and
customer service. On the other
hand, the determination may be
that employees have no business
use for Social Media. To embark or
not to embark on a strategy which
permits
employee
use,
is
dependent
upon,
the
organization’s mission, goals, and
appetite for risk. In the event the
decision is made to permit
employee use of Social Media in
the workplace, the decision must
ensure
usage
is
managed
properly.
Community Banks are
considered the safest, soundest,
and
most
secure
financial
institutions in our nation made of
responsible members of the
business community. The nature of
their business with its regulatory
issues, privacy requirements and
safety concerns are additional
factors the industry must consider.
Social Media governance
policies are a wise idea, whether
or not the Bank is going to jump
into the use of Social Media itself.
Not having any policy to govern
the use of Social Media by
employees in ways that could
adversely affect the Bank, or
having a policy in place but not
adopting effective tools to monitor
and
enforce
it,
might
be
considered
unsafe.
Norris
McLaughlin & Norris P.A.; A New
Jersey corporate law firm points
out, ―The SEC and FINRA are
already focused on Social Media
sites and the risks they pose to the
businesses they regulate. While
the federal banking agencies are
currently
otherwise
occupied,
banks should take the trend
seriously and strongly consider
Social Media governance.‖
The
first
step
in
safeguarding your Community
Bank against the risks posed by
Social Media use is teaching your
employees what those risks are—
and how to avoid them. Instruct
your employees on:
How Social Media use can
affect the work environment
The Bank’s position on the use
of Social Media
The values and rules that
currently govern workplace
behavior also apply to online
interactions
Protecting
the
Bank’s
confidential information
The awareness of intellectual
property rights
Refraining from engaging in
illegal or inappropriate behavior
while using Bank resources
Using Social Media so that it
does not interfere with an
employee’s ability to do their job
and represent themselves as an
employee of the Bank
Armed with information
and tools to make good decisions,
Community
Banks
ensure
employees understand how the
use of Social Media impacts the
confidentiality,
integrity
and
availability
of
the
Bank’s
confidential
information.
Employees must be aware of how
Social Media sites relate to
intellectual property, harassment,
and respect for co-workers – as
well as acceptable and ethical
work performance that protects
and supports your brand and your
Community Bank.
SBS is an endorsed partner
of the Community Bankers of
Wisconsin and offers information
security consulting and solutions to
member banks at a discounted price.
For more information, please contact
Alan Novy, Wisconsin Regional Sales
Representative, at (608) 807-9817 or
alan.novy@protectmybank.com
March/April 2011
25
Preparing for the Post-Durbin Environment
What Issuers Need to Do Now
Judith McGuire, Senior Vice President,
Product Management, PULSE
T
he Federal Reserve Board’s
proposed restrictions governing
debit interchange fees and transaction
routing (the “Durbin Amendment
Rules”) will have far-reaching
consequences for financial institutions.
All debit card issuers, from large
institutions to small community banks
and credit unions, will be impacted by
this regulation. Should this legislation be
adopted in its current draft form, a major
source of non-interest income may be
significantly reduced for some issuers,
potentially resulting in substantial
changes to how retail banking services
are priced to consumers.
At this time, we can’t predict exactly
in what form the Fed’s proposed debit
card rules will ultimately be implemented. But we do know that most issuers’ debit card operations will require
a re-calibration to comply with network participation requirements and
to achieve a cost structure that aligns
with the new pricing paradigm.
With implementation dates looming
just months away, financial institutions
should begin to prepare for the Durbin
Amendment Rules’ impact by undertaking some key activities, including:
Evaluating your core debit business
Reviewing your underlying demand
deposit account (DDA) structures and
associated payments business
Reviewing your debit network
affiliation.
These activities are more important
than ever before for issuers, in order to
guide transition strategies.
Evaluation Guidelines: Debit
Business
In the post-Durbin environment, it
will become increasingly imperative for
both large and small financial institutions to become more lean and efficient
in order to operate within the proposed
new pricing structure. Therefore, some
key questions to consider as the industry
moves forward to an anticipated implementation date include:
How will the lower interchange envi26
ronment affect the economics of your
debit portfolio?
How can you improve operating efficiency to minimize impact to margins;
and what new payment products should
be developed or prioritized?
It is critical that financial institutions
fully understand all of the revenue and
cost components of their debit programs.
This can be accomplished through some
or all of the following actions:
Benchmark your current debit operating costs against best-in-class issuers.
Redesign or eliminate all activities that
do not produce value, and consider outsourcing various processing and operational functions.
Explore merchant-funded debit
rewards as a potential cost-effective
alternative to more costly issuer-funded
programs.
PIN debit is much lower in cost than
signature debit. It’s also significantly
more secure than other payment methods, thus lowering overall fraud losses.
Issuers may want to consider promoting PIN debit over signature debit, and
consider actively supporting the deployment of PIN to a wider set of merchants.
Review DDA and Related
Payments Business
The sustainability of “free checking”
for a broad consumer base, prevalent
during much of the past two decades
is now very much in doubt. As a result
of the substantial change to DDA economics stemming from the Durbin
Amendment Rules, Regulation E, and
the broader macro-economic environment, the DDA product suite and value
proposition need to be re-thought on
both a tactical and strategic level. Questions to consider:
Which account characteristics must
be present to support a free or low-cost
DDA model?
Which of the existing non-interest income streams will be available
post-Durbin?
What is the best way to communicate
account changes to your current and
future account holders?
In addition to restructuring the
underlying DDA, financial institutions
March/April 2011
should review the relative priority and
value of all their payment products.
Which payment products continue to
add value to your account holders and
your organization?
Are there emerging payment products that should be incorporated into
your product suite?
Can payment products be bundled
differently to increase their overall value
to your account holders?
Debit Network Affiliation
As a specific component of this new
legislation, debit network affiliation
becomes even more important in a postDurbin world. Financial institutions that
have aligned with only one network
provider for both PIN and signature
processing should be actively evaluating
their debit network affiliations. Depending on the final regulations published by
the Fed, this may mean adding a second
PIN debit network, or perhaps shifting
all PIN volume to a network unaffiliated
with your signature network.
In structuring network participation,
aligning with one strong PIN debit network offers financial institutions considerable benefits. It aggregates volume to
secure best pricing, enables more effective fraud detection and prevention, provides for comprehensive reporting, and
streamlines operations and compliance.
For some financial institutions, no
immediate change is warranted. However, it would be wise to begin conversations now with alternative debit networks, so that if a change is mandated
by the final rules, your institution will
be better positioned to act quickly and
secure favorable terms.
And, when considering a network,
look for one that continues to invest and
innovate to fuel growth and create value
for its issuers.
We believe debit will remain the preferred form of payment among consumers. To preserve debit’s value for both
issuers and cardholders, financial institutions need to develop strategies and
solutions now so they can be empowered, plan for the future after Durbin,
and continue to be successful in the
marketplace.
Michael Glinski, Ajay Ganju, Brett Patten, Kent Musbach, Levi Lura, Josh Hunt, Marc Gall, Dennis Romero.
EXPERTISE TO THE 8TH POWER.
With BOSC, you’re not just getting one skilled, experienced banker, you’re getting the benefit of a
local team of people you already know. Plus, they have a proven track record so you can be confident
in the service and advice you receive.
The only difference is that now they are backed by BOK Financial Corporation, a $24 billion financial
services holding company. So you can get access to extensive national service offerings with the
added benefit of the relationships you already have with a highly qualified team who knows your market.
And that means exceptionally better service for you and your bank.
Asset/Liability Modeling and Model Review | Institutional and Retail Fixed Income | Portfolio Accounting and Safekeeping
Wholesale Funding | Business Process Improvement
Menomonee Falls, Wisconsin | 866.440.6515 | www.bok.com
©2011 BOSC, Inc. A subsidiary of BOK Financial Corporation. Broker/Dealer Services and Securities offered by BOSC, Inc., an SEC registered investment adviser, a registered broker/dealer, member
FINRA/SIPC. SEC registration does not imply a certain level of skill or training. Insurance offered by BOSC Agency, Inc., an affiliated agency. Investments and insurance are not insured by FDIC, are not
deposits or other obligations of, and are not guaranteed by, any bank or bank affiliate. Investments are subject to risks, including possible loss of principal amount invested. Asset Liability Modeling and
Model Review and Safekeeping Services are provided by BOSC, Inc. affiliate BOKF, NA dba Bank of Oklahoma. Business Process Improvement services are provided by BPE Consulting Group, LLC, a
subsidiary of BOK Financial Corporation.
March/April 2011
27
Think the Durbin Amendment Exempts You? Think Again
James Ghiglieri Jr., Vice President of
Corporate Communications, SHAZAM®
T
he Federal Reserve Board (FRB)
published its proposed rules on
Dec. 16, 2010, to implement a provision (known as the
Durbin Amendment)
in the Dodd-Frank
Wall Street Reform
and Consumer Protection Act. The proposed
rules outline various
alternatives for regulating debit point-of-sale (POS) interchange, network exclusivity and merchant routing alternatives, and fraudprevention standards.
According to the proposal, the
interchange portion of the rules does
not apply to small issuers (less than
$10 billion in assets). Because of this,
many community financial institutions
have taken a “this does not affect me”
approach to the regulation.
But that is not the case!
The proposed rules would prohibit
all issuers and networks from restricting the number of networks over which
debit card transactions may be processed
by a merchant, either by:
Requiring at least two unaffiliated
networks per debit card (Alternative
A); or
Requiring at least two unaffiliated
networks per debit card for each type
of cardholder authorization method,
such as signature or PIN (Alternative B).
The proposed rules also set forth
specific provisions regarding routing
of debit transactions, including:
Merchant control over transaction
routing. Merchants will be able to route
the transaction to any network enabled
by the issuer.
Issuers and networks would be prohibited from restricting a merchant’s
ability to route the transaction.
Neither issuers nor networks may
prohibit a merchant from encouraging
or discouraging a particular method of
authorization, such as PIN or signature.
Neither alternative will guarantee
that exempt issuers are immune from
the interchange rate reductions set by
the proposed rules. SHAZAM advocates
28
for financial institutions’ support of
Alternative A, as it lessens the impact to
issuers and provides the highest potential for keeping community financial
institutions exempt from interchange
impacts. If Alternative A prevails, both
exempt and non-exempt issuers will
need only two unaffiliated networks for
available routes. All of our SHAZAM
participants are currently in compliance
with Alternative A, so there would be no
additional incremental costs.
If Alternative A prevails, two unaffiliated networks will be available to the
merchant. This will limit the number
of network routing options available
to the merchant under the newly created merchant routing requirements for
POS. With two unaffiliated networks,
we believe interchange would decline
at a slower pace than under Alternative
B. Under Alternative A, it may be possible for current or near-current interchange structures to remain effective for
exempt issuers over a longer duration
than under Alternative B.
Under Alternative B, more networks
(for example: two unaffiliated signature
networks and two unaffiliated PIN networks) must be available for merchant
routing decisions. The availability of
these additional networks will aid merchants in implementing least-cost routing decisions. As a result, interchange
rates may reduce more quickly for
exempt issuers given the additional networks available. Your institution will also
incur additional costs in order to become
a participant in multiple networks.
The rule does not require any network
to establish a dual-interchange system;
however, SHAZAM intends to support
such a system with either alternative to
the fullest operational degree possible.
To date, only Visa® has publicly stated it
intends to support a dual-interchange
system.
Due to market pressures and merchant routing decisions, interchange
rates for exempt issuers may eventually
equalize with the proposed governmentfixed rate of $0.12 per transaction. Due
to the lower costs and economic scales
the large institutions have, this may ultimately cause community financial institutions’ margins to be disproportionately
March/April 2011
penalized. Despite being exempt from
the interchange portion of the Durbin
Amendment, community financial institutions may see financial consequences.
What Can You Do?
SHAZAM recommends you contact
your congressional representatives and
let them know where your organization stands on the Durbin Amendment.
Emphasize the necessity for the FRB to
adopt additional regulatory measures
to protect and guarantee the intent and
true meaning of the small issuer exemption and the continued viability of community financial institutions.
To assist you, SHAZAM is continually adding a variety of useful tools and
information to comment to the FRB.
Please visit https://public.shazam.net/
mr_compliance.html for a link to find
your congressional representatives,
congressional talking points, and letter
writing material, as well as a Durbin
Amendment Web seminar.
Denmark Reports Net
Income Increase
DENMARK—Denmark Bancshares, the
parent company of Denmark State Bank,
reported an increase in net income for
2010. Net income was $3.4 million
or $28.94 per share compared with
$878,000 or $7.38 per share in 2009. A
$4.3 million decrease in the provision
for loan losses drove the turnaround.
With total assets of $420 million,
Denmark State Bank has six branches
in Brown and Manitowoc counties.
Heartland Business Bank
Sees Net Income Increase
DE PERE—Heartland Business Bank
reported earnings of $7.4 million for the
fourth quarter of 2010 compared with
$4.4 million during the same quarter of
2009. The recovering economy and significant loan growth in the bank’s USDA
specialty loan programs were touted as
the reason for the earnings increase.
At the end of the fourth quarter of
2010, the bank had assets of $474 million
(up from $448 million in 2009); loans
of $321 million (up from $274 million);
and deposits of $392 million (up from
$359 million).
While others have faded away…
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March/April 2011
29
Wisconsin WellRepresented at
ICBA Convention
From left, Russ Kuehn, First National
Bank, Berlin; Sue Kuehn; Lucy Axness;
Wendy Saeman, First National Bank,
Berlin, and Carl Axness, Union Bank
of Blair, get together at the 2011 ICBA
Convention and Techworld.
A number of Wisconsin community
bankers attended the 2011 ICBA Convention and Techworld, held at the San Diego
Convention Center in March. They heard
great speakers from national financial
experts, took in many informational workshops, and took away ideas for great new
products and services. Most also relaxed
with regional industry colleagues at the
Great Midwest Get-Together, a reception
hosted by CBW with other state community bankers associations from Iowa, Minnesota, North Dakota, and South Dakota .
From left, Randy Steig, Bankers’ Bank; Gary
Weirauch, Citizens State Bank of Loyal; Carl
Axness, Union Bank of Blair; Daryll Lund,
CBW, and Dennis Stephenson, Union Bank
of Blair, were among the Wisconsin contingent in San Diego.
From left, Emily Kopp; Rick Bastian,
Blackhawk State Bank, Beloit; Laurie
Kopp; Scott Kopp, Bank of Galesville;
Cindy Stephenson, and Dennis Stephenson, Union Bank of Blair, enjoy
the festivities.
From left, Michael Marx, ICBA; Tom
Jensen, First National Bank, Berlin;
Jeffrey Mueller, Collins State Bank,
and Chris Eager, Union Bank &
Trust Co., Evansville, socialize at the
convention.
From left, Jeffrey Mueller, Collins State
Bank, with Cindy Mueller, and Julie Van
Engen with Terry Van Engen, Collins
State Bank, conversed at the convention.
Community Banking Month Promotion Leads to Free iPad for Wisconsin Customer
Governor Scott Walker proclaimed April as Community
Banking Month, and to recognize the annual designation, ICBA
has created a theme and promotional materials to support
this nationwide celebration. The campaign theme, “I Love My
Community Bank,” is paired with an interactive website (www.
ilovemycommunitybank.com) to capture consumer testimonials
about their community bank experiences. Those who shared
their stories had the opportunity to be featured in the national
marketing campaign and were entered into a drawing for an
Apple iPad. (To read more on this unique campaign, see p. 10.)
The iPad was won by a lucky Oconomowoc customer, who,
on learning of her win, reportedly said that she now knows she
loves First Bank Financial Centre!
A copy of the Governor’s Proclamation is available at: www.
communitybankers.org/docs/community-banking-monthproclamation.pdf. 30
March/April 2011
Governor Scott Walker (center)
signs a proclamation designating April Community Banking
Month in Wisconsin, with CBW
Chairman-elect Jim Tubbs (left),
State Bank of Cross Plains, and
Rick McGuigan, CBW executive
vice president.
From left, CBW Chairmanelect Jim Tubbs, Wisconsin
Department of Financial
Institutions Secretary Peter
Bildsten, and CBW Executive
Vice President Rick McGuigan
stand in the State Capitol following the signing of the 2011
Governor’s Proclamation.
CBW’s Telephone/Webcast
training sessions bring the latest
regulatory information right to the
desks of your bank employees:
Tuesday, April 19: Regulation CC and Funds Availability Rules (Mandatory Compliance Training)
Wednesday, April 20: Fight or Flight: How to Survive a Formal or Informal Regulatory Enforcement Action
Thursday, April 21: HMDA-LAR Basics
Tuesday, April 26: Imaged Documents: What to
Keep, What to Shred, What Holds up in Court?
Wednesday, April 27: Five Secrets to Successful
Online Account Opening and Online Lending
Thursday, April 28: Fannie Mae’s Loan Quality
Initiative
Tuesday, May 3: Most Compelling Issues in Physical
Security Risk from Law Enforcement, Litigation,
and On-Site Assessments
Wednesday, May 4: Everything “Mobile” — Banking, Payments, RDC, and Security
Thursday, May 5: Consumer Lending Series: The
Truth About Credit Scores for Lenders
Tuesday, May 10: Required BSA Officer Reports to
the Board
Thursday, May 12: Accounting Developments in a
Changing Bank Environment
Friday, May 13: Countdown to FDIC Guidance on
OD Protection Effective July 1, 2011—Advertising, Disclosure, Customer Counseling, and
Communication
Tuesday, May 17: Director Series: Raising Capital in
Today’s Environment
Thursday, May 19, Proper Repossession, Notice and
Sale of Non-Real Estate Collateral
Tuesday, May 24: Revisiting Your CIP Policy for
Today’s Banking Reality
Wednesday, May 25: Identifying and Managing
Data Leakage and Hacking Threats
Thursday, May 26: Current Issues and Challenges in
Agricultural Lending
Most conferences run from 2:00 p.m. to 3:30 p.m.
However, the Regulation Q session on April 8, the
Countdown to FDIC Guidance on OD Protection on
May 13, and the Director Series: Raising Capital in
Today’s Environment on May 17 begin at 10:00 a.m.
For questions on any of these conferences or about the
Webcast itself, please call Sandy Gruber at 608-833-4229
or email sandy@communitybankers.org. Visit CBW’s
Web site, select the desired workshop, and follow the
link to register online.
Building
Relationships
Building and strengthening customer
relationships is always a priority.
Bankers’ Bank and First Data® Debit Card
Processing will assist you with
client retention, business growth, and
product innovation. Manage your consumer
and business debit card relationships
with a single source solution.
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with our debit card processing, ATM
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First Data® Debit Card Processing solution.
ars
30 Ye
g
n
i
2011
C elebrat
1981
Madison, WI • Chicago, IL • Des Moines, IA • Indianapolis, IN • Springfield, IL
Scott Krieger
Eau Claire, WI
1-800-666-5595 x5526
Jeff Niesen
Madison, WI
1-800-666-5595 x5566
www.BankersBankUSA.com
March/April 2011
31
Community Involvement
First Bank Financial
Centre Aids Fire
Department
From left: Todd Scheid, First Bank
Financial Centre, and Milt Wegner,
Summit Fire Department
OCONOMOWOC—First Bank Financial Centre donated $1,000 to the Summit Fire Department in March, to be
used toward their purchase of safety gear
and a large diameter fire hose. The hose
will be used for tall buildings or situations involving longer distances from
hydrants.
Natural Philanthropy
BRILLION—Philanthropy comes in
many forms. Brad Grant, president and
CEO of Calumet County Bank, has leveraged his hobbies and the bank’s support of the community to aid the Brillion
Nature Center.
Grant, an outdoorsman and taxidermy enthusiast, has completed the
second of two animals, a fisher, for the
Center. His first taxidermy donation was
a porcupine.
He also donated a nature photograph
that he took and helped the Center get
a $2,500 grant from the Federal Home
Loan Bank. The grant was awarded for
the partnership between the bank and
the nonprofit.
Part of the Brillion Wildlife Area,
the Center is a 40-acre parcel of land
leased from the Wisconsin Department
of Natural Resources. Its mission is to
provide both environmental education
and outdoor experiences to the community and visitors.
Gift Benefits Economic
Development in
Washington County
OCONOMOWOC—First Bank Financial Centre (FBFC) donated $5,000 last
fall to Economic Development/Washington County (EDWC). The EDWC is a
public-private development partnership
that fuels growth businesses and industries for the creation of quality jobs and
wealth in Washington County. EDWC
accomplishes this through existing business development consulting; engaging
in driver-industry business attraction;
supporting start-up enterprises; and
serving as the central voice on economic
development issues.
The bank’s gift is especially appropriate because EDWC offers three Revolving Loan Fund (RLF) programs to help
local businesses: a county fund administered by EDWC, as well as funds from
the cities of West Bend and Hartford.
The EDWC RLF loans up to $100,000
to existing Washington County businesses and to firms relocating to the
county at a very low interest rate.
As just one example, Harrigan Solutions, Germantown, provides production workflow improvements by optimizing metalworking fluid handling
practices. Their metalworking fluid
filtration expertise has saved companies hundreds of thousands of dollars
in operating costs and productivity
improvements. The company received a
loan to purchase a piece of cleaning and
recycling equipment for metalworking
fluids called Quick Clean. It helps their
clients save money and reduces downtime by speeding up the fluid cleaning
processes.
Changing Scene
FBFC Opens Branch in
Senior Living Facility
just south of Mequon Road in Germantown. Banking services can be conducted
inside for residents and staff alike. Banks Open New
Locations
Gail Skebba, Manager at Gables of
Germantown; Mark W. Mohr, President
and CEO of FBFC; Cheri Schadeberg,
Branch Sales Manager, Germantown; and
Erik Kelley, Marketing Director, FBFC
OCONOMOWOC—First Bank Financial Centre (FBFC) has opened a limited service branch inside the Gables
of Germantown, a senior living facility
32
Investors Community Bank recently
opened a new office at 3273 Church St.,
Stevens Point. Heading up the new facility is Terry Schott, regional president
Central Wisconsin.
Headquartered in Manitowoc, First
National Bank recently opened a new
office at 101 City Center in Oshkosh. The
3,200-square-foot branch is part of the
bank’s expansion strategy into the Fox
Valley. Joan Woldt, the bank’s regional
president, will manage the Oshkosh
office, which brings the number of locations to 13. Other branches are located
in Manitowoc, Brown, Sheboygan, and
Winnebago counties.
March/April 2011
Two North Shore
Branches Recognized
BROOKFIELD—North Shore Bank
has named its branches at 600 E. Green
Tree, Fox Point; 8701 S. Howell Ave.,
Oak Creek; and 165 N. St. Augustine
St., Pulaski as Branch of the Year. The
Oak Creek and Pulaski branches were
honored for the second consecutive year.
WHEDA Eliminates
Recapture Tax Liability
MADISON—The Wisconsin Housing
and Economic Development Authority (WHEDA) recently announced it
will eliminate the obstacle of recapture
tax for future home buyers using a
WHEDA loan. Effective for all mortgage loans funded on or after April 1,
2011, WHEDA will reimburse home
buyers who are subject to paying federal
recapture tax after selling their WHEDA-financed home.
Recapture tax is a federal tax that a home buyer may have
to pay to the Internal Revenue Service (IRS) if they sell their
WHEDA-financed home within the first nine years of the
purchase date, receive a net profit on the sale of the home, and
exceed the maximum WHEDA household income limit at the
time of sale. All three provisions must occur at the time of sale
for any potential recapture tax obligation to apply.
The IRS requires recapture tax for WHEDA mortgages,
which are funded through the sale of tax-exempt mortgage
revenue bonds. This requirement helps ensure compliance
with WHEDA’s mission of helping low- to moderate-income
working families attain homeownership.
“In past years, the term ‘recapture tax’ has carried a negative connotation for both the real estate community and our
home buyers,” said Bill Malkasian, president of the Wisconsin
REALTORS® Association. “WHEDA’s new reimbursement
policy does away with any anxiety of possible recapture tax,
and helps us focus on getting more working families in a home
with a low-cost WHEDA mortgage.”
Young & Associates, Inc.
Liquidity Planning
Strategic Planning
Regulatory Assistance
ICBA Mortgage Solutions: New
Partnership for Success
Stock Valuations
Now is a perfect time for community banks to plant new
seeds for growth, renew relationships, and clean out ineffective
programs and services.
This spring, ICBA Mortgage Solutions (ICBAMS) is ready
to support the needs of community banks. Its secure, state-ofthe-art lending program integrates multiple preferred investors
with exceptional lending services. Supported by dedicated and seasoned mortgage lending
professionals and a scalable platform, community banks are
able to deliver loans through multiple mortgage fulfillment
support channels—total fulfillment, primary fulfillment, and
custom fulfillment—as a wholesale, and or, correspondent
lender. The community bank decides what seeds to plant, and
ICBAMS is there to help grow those decisions.
The program allows community banks to gain more control
of the process and execute loans through a system that is both
intuitive and user friendly. The new platform provides greater
transparency and information management to help mitigate
secondary market exposure and risk, while supporting a community bank’s ability to compete. This single point of delivery
program is supported by one technology platform, one team,
and one process tailored to meet the needs of community banks.
For more information call 877-516-8665 or visit www.
icbams.com.
Capital Markets
Expansion &
De Novo Bank Charters
Internal Audit
Information Technology
Recruitment &
Human Resources
Lending & Loan Review
Compliance
Policy Development
Member Appreciation Days Set
Save the date for CBW’s 2011 Member Appreciation
Days! This popular event offers a morning program,
lunch, and golf.
Thursday, June 30, Eau Claire Golf & Country Club
Wednesday, July 13, Wild Rock Golf Club at The Wilderness, Wisconsin Dells
Tuesday, July 19, The Bog, Saukville
Watch your mail for your invitation!
800.525.9775
younginc.com
Bankers Working For Bankers
March/April 2011
33
People
Papenthien New
President; Slater Retires
MADISON—Bankers’ Bank recently
announced the retirement of Ronald
L. Slater as president and CEO. He was
employed by the bank for almost 30
years, serving as executive vice president
prior to becoming president in 2000 and
president/CEO in 2007. Thomas Papenthien, formerly executive vice president and CFO, has been
appointed president/
CEO. He has been with
Bankers’ Bank since
1992. Papenthien holds
an MBA from Washington University, St Louis,
as well as the professional certification as Thomas
a Chartered Financial Papenthien
Analyst. Two New SVPs at
Tri-City
OAK CREEK—Laura Kramer was promoted to senior vice president, manager
operations center, and Stephen Grebe
was promoted to senior vice president
at Tri-City National Bank.
Three at North Shore
Named SVP
BROOKFIELD—Three North Shore
Bank employees were recently promoted
to senior vice president. The bank has
named Michael Kellman to senior vice
president of consumer lending; Robert Hoepfner to senior vice president
of commercial lending; and Lawrence
Wickter Jr., to senior vice president-chief
credit officer.
Monona Welcomes Udell
MONONA—Benjamin Udell has joined
Monona State Bank as senior vice president of consumer banking. Udell comes
to the bank from a stint at Wells Fargo
where he most recently served as the
South Central Wisconsin district manager and vice president.
Urban New SVP at
Wisconsin Community
Bank
MADISON—Wisconsin Community
Bank has promoted Rhonda Urban to
senior vice president of retail sales. She
brings more than 25 years of banking
Customers Enjoy Expanded
Surcharge-Free Network
AND Easy Ways to Locate
Participating ATMs
CBW’s ATM Access network has
partnered with the In Balance® Alliance
offered by the Independent Community
Bankers of Minnesota, to expand
surcharge-free access. Cardholders
traveling across the WisconsinMinnesota border can now freely
withdraw money at 900 ATMs.
Cardholders driving anywhere in the
two states can find the closest surchargefree ATMs by connecting to the Internet
via their Blackberry® or other mobile
device. Cardholders can also visit the
CBW website (www.communitybankers.
org) to search for participating ATMs by
city or participating community bank.
To learn more, call CBW at
608-833-4229.
34
March/April 2011
experience to her new position. She was
previously vice president of retail sales
at the bank.
Kempf Joins Bank of
Prairie du Sac
PRAIRIE DU SAC—The Bank of Prairie
du Sac recently welcomed Perry Kempf
as vice president of operations. Kempf came to
Prairie du Sac from
Bankers Bank in Madison. Prior to that, he
worked for more than 20
years at CUNA Mutual.
Kempf has a degree from Perry Kempf
the University of Wisconsin-La Crosse
in computer science
Smith Named SVP at
Bank of Wausau
WAUSAU—The board of directors
at the Bank of Wausau has promoted
Richard Smith to senior vice president,
commercial banking.
New Position for Grob at
Foundations Bank
PEWAUKEE—Jill Grob, senior vice
president at Foundations Bank, was
named interim president of the Pewaukee-based de novo.
Andritsch Promoted to
Vice President
OCONOMOWOC—First Bank Financial Centre (FBFC) has promoted Sarah
Andritsch to vice president. In banking since
2001, Andritsch began
her career as a part-time
teller in high school and
college. Upon graduating
from college in 2006, she
began full-time in com- Sarah
Andritsch
mercial lending, honing
her focus to SBA specific lending in
2008.
Bank Mutual Names
Larson SVP
BROWN DEER—Gregory Larson was
named to the newly created position
of senior vice president and director of
commercial banking at Bank Mutual. He will be responsible
for all aspects of middle market banking, business banking,
treasury management, international banking, and merchant
services throughout Bank Mutual’s commercial banking locations in Green Bay, Milwaukee, and Eau Claire.
banking. His most recent position was advisor to First Niagara
Bank, with operations in New York, Pennsylvania, Connecticut,
and Massachusetts.
Paschen Joins Nicolet
Travelers Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Jefferson Wells . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Wipfli LLP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Shazam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Pulse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Pulse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
McGladrey. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Edge One. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
West Bend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Secure Banking Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Bosc, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Executive Benefits Network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Bankers’ Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Young & Associates, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
ATM Access Network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Integrated Security Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
WACHA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Community Bankers Financial Services . . . . . . . . . . . . . . . . . . . . . 36
GREEN BAY—Brian Paschen has joined Nicolet National
Bank as vice president commercial banking.
Oak Bank Promotes McNulty
FITCHBURG—The board of directors at Oak
Bank has named Jim McNulty as senior vice
president business banking. He is a graduate
of the University of Wisconsin-Madison with
a degree in economics and a graduate of the
University of Wisconsin Graduate School of
Banking. McNulty has over 16 years of community banking experience and more than 24 Jim McNulty
years experience in direct client service.
First Bank Financial Centre Welcomes
Groth
Advertiser Index
OCONOMOWOC—First Bank Financial Centre has welcomed Brian Groth to its team as
commercial lender, vice president. With more
than 24 years experience in business banking
and commercial relationships, Groth’s main
focus is family-owned companies throughout
Brian Groth
Southeast Wisconsin.
Staff Changes at Anchor
MADISON—Mark Timmerman, president and chief operating
officer of AnchorBank, has become executive vice president,
general counsel, and corporate secretary of the Madison-based
bank. CEO Chris Bauer has added the role of president of the
bank to his existing titles.
Tom Dolan, a former executive with LaSalle Bank and Bank
of America, was appointed executive vice president and chief
financial officer replacing Dale Ringgenberg who retired as
chief financial officer last August.
Scott McBrair was named executive vice president of retail
Directory of Community Banking Service Providers
Community bankers, you have a choice.
You can spend your valuable time finding
one prime candidate to fill your mid- to upper-level
position, or you can call me. I will present you with the
right person for the job in less time
with less hassle.
Del Garcia
Office location:
155 E. Capitol Dr., Ste. 5
Hartland, WI 53029
Phone: (262) 369-8109
Fax: (262) 369-8028
email: del9730@aol.com
Superior Safe & Security LLC
Electronic & Physical Security Products
Access Control
Alarm Monitoring
Alarms
Audio Systems
Close Circuit T.V.
Drive Up Systems
Fire Safes
Media Safes
Metal Undercounter Cabinets
Modular Vaults
Night Depositories
Point to Point Systems
Safes
Safe Deposit Boxes
Security Systems
Teller Counters
Vault Doors
Walk Up Windows
Sales, Installation & Service
800-626-0888
March/April 2011
35
Financial Institution
Products & Services
Offered by Your Association
◆ Financial Institution Bond
◆ Directors and Officers Liability
◆ Property, Casualty, and Workers’ Compensation
◆ Forced Placed Property Mortgage Protection
◆ $9.00 Life of loan flood determinations
Kevin Christians
Phil Hoover
Community Bankers Financial Services offers a wide variety of products and
services for the benefit of you, our members. For additional information on
any of our financial institution programs call CBFS at 888-403-2600.

New DFI Secretary Supports Guidance Based on Best Practices

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