Read our 2014 Annual Report

is to be a responsive,
customer friendly,
profitable, and growing
independent bank.
Charter Bank is an independently owned community bank,
with one location at 1010 W. Clairemont Avenue in Eau Claire,
Wisconsin. Community banks, like Charter Bank, are
characterized by their local headquarters and consequently,
local decision-making that benefits the community where the
bank does business.
Since opening our doors as a de novo (new) bank in 1980,
we’ve grown to an asset size of over $590 million, which gives
Charter Bank the distinction of being the largest bank in the
Chippewa Valley. This growth has been accomplished by
providing our clients with financial products that exceed
expectations. Our lending team has over 200 combined years
of lending experience, resulting in exceptional growth in the
number of loan clients and loan balances.
board of Directors
Back Row: Murray R. Johnson, Jeffrey R. Halloin,
Our success would not be possible without the loyal patronage
Dennis H. Zacho, Gregory K. Burger,
of thousands of Chippewa Valley residents. We are committed
C. Thomas Dow, David G. Anderson
to rewarding their loyalty and support by making a positive
difference in our community.
Front Row: Paul D. Kohler, Brenda L. Johnson,
Jo Ellyn DeCesare, Dean M. Olson
1
Charter Bank received a record number of awards and accolades in
2014. First, SNL, an independent financial institution rating
company, ranked Charter Bank the number one financial
institution in the state of Wisconsin. The ratings were based
upon a number of metrics including financial strength, growth,
low loan loss levels, and efficiency. In addition, SNL ranked
Charter Bank in the top 25 of all similar-sized community banks
in the entire country. There are approximately 1,300 banks in our
peer group in the asset size of $500 million to $1 billion.
Furthermore, Seifried & Brew, a community bank risk
management firm, rated us in the top 15 percentile of all
community banks. Additionally, Bauer Financial, the nation’s
leading bank rating and research firm awarded Charter Bank
its highest rating for a fourth straight year!
However, the award bestowed upon us that means the most was
American Banker Magazine rating us one of the top financial
institutions in the country to work for! We have a culture at
our workplace that is second to none, which is the result of
dedicated, experienced, and hard-working employees. This
year we grew to 60 employees as we added two new full-time
positions. Shane Simpson joined our team as a loan processor
and David Donnellan was hired as a credit analyst. In addition,
Robin Rundquist was hired in our deposit operations area. We
are fortunate to find and retain such great talent from right here
in our community. Additionally, our bank experiences virtually
no turnover, which says a lot in times when the average person
changes jobs over 10 times throughout his or her career. We
even have one employee, Sue Diel, who has been with the bank
since we opened our doors in 1980. Our employees enjoy a
camaraderie that stems from a positive working environment,
strong leadership, and the knowledge that Charter Bank will
remain an independent community bank with no one please
but our customers.
2014 was a great year of growth for Charter Bank; we finished
the year with just under $600 million in assets. New loans were
the driving force behind our growth. In fact, Charter Bank
provided over $70 million in new loans to area consumers and
businesses. Our total loans as of December 31, 2014, were just
under $400 million. Our lack of loan losses mirrors the improved
economy that we are experiencing here in the Chippewa Valley.
We also maintained, once again, the highest share of deposits
of any bank in Eau Claire County, according to the most recent
FDIC reports.
Charter Bank has demonstrated our commitment to our
community by once again giving back generously to local
non-profit organizations. Our employees provided over 1,050
volunteer hours for various causes this past year. In 2014, we
gave out more than $63,000 in scholarships to area youth.
Charter Bank is pleased to be an employer of choice in the area.
We look forward to serving the financial and community needs
of the Chippewa Valley as the premier community bank in all
of western Wisconsin.
Paul D. Kohler, President & Chief Executive Officer
Business Advisory Board
Helping to facilitate new client relationships.
Left to right: Jeff Irvine, Jerry Jehn, Dave Schafer, Damien Hoernke,
Nick Mohr, Ryan Buesser, Sara Vinopal, Matt Thompson, Chad Olson,
Doug Ottum. Not pictured: Mike Keil
Woman’s Financial Council
Community ambassadors for Charter Bank, scholarship
selection committee, and hosts of the High School Art Exhibit.
Back row: Melanie Peterka, Marianne Klinkhammer, Amy Torgerson
Front row: Sally Hofer, Amy Benedict
2
Paul D. Kohler
President &
Chief Executive Officer
Troy W. Werk
First Vice President
Debra A. Hintz
Assistant Vice President &
Compliance Officer
Jay A. Brettingen
Assistant Vice President &
Commercial Lender
Robert A. Strohbusch
Vice President &
Mortgage Loan Officer
Jeffrey A. Biegel
Assistant Vice President &
Security Officer
Rick A. Lehman
Assistant Vice President &
Commercial Lender
Kimberly L. S. Novotney
Vice President &
Commercial Lender
Mary E. Reinert
Assistant Vice President &
Retail Officer
Dustin R. Hurtgen
Assistant Vice President &
Commercial Lender
Susan J. Diel
David B. Pokrandt
Senior Vice President &
Chief Financial Officer
Senior Vice President
Jerrilyn L. Parr
Carol Ann Solberg
Vice President &
Human Resource Officer
Kimberly A. Showsh
Assistant Vice President &
Accounting Officer
Angela J. Everard
Assistant Vice President &
Mortgage Loan Officer
Vice President &
Information Technology
Officer
Lynda A. LaCasse
Wayne A. Richmond
Senior Vice President &
Chief Operations Officer
Barbara A. Crandall
Assistant Vice President &
Loan Operations Officer
Kent J. Martinson
Assistant Vice President &
Credit Officer
Assistant Vice President &
Investment Executive
Michelle L. Harris
Lynette D. Pank
Assistant Vice President &
Marketing Officer
Internal Auditor
3
Years Ended December 31, 2014 and 2013
Assets
20142013
Cash and Cash Equivalents
$10,159,252
$13,431,068
Investment Securities
165,580,798
166,746,800
1,440,000
1,440,000
388,123,991
356,711,458
Premises and Fixed Assets
5,635,084
5,896,140
Foreclosed Assets
1,803,788
734,068
13,940,288
10,507,138
3,573,914
3,751,971
Federal Home Loan Bank Stock
Net Loans & Leases
Cash Value of Life Insurance
Other Assets
TOTAL ASSETS
$590,257,115$559,218,643
Liabilities
Total Deposits
Other Liabilities
Total Liabilities
Total Equity Capital
$486,495,715
$466,108,714
20,567,493
22,402,524
507,063,208488,511,238
83,193,90770,707,405
TOTAL LIABILITIES AND EQUITY CAPITAL$590,257,115
$559,218,643
Note: Financial Statement presented is not audited.
ASSETS
2014
2013
2012
2011
2010
4
LOANS
$590,300,000
$559,200,000
$582,300,000
$549,900,000
$533,100,000
2014
2013
$388,100,000
$356,700,000
2012
$351,200,000
2011
$352,700,000
2010
$350,600,000
Years Ended December 31, 2014 and 2013
20142013
Interest and Dividend Income
$25,972,296
$26,629,042
2,887,429
3,059,671
23,084,867
23,569,371
Provision for Loan Losses
(750,000)
(365,000)
Non-interest Income
1,747,358
1,715,557
Non-interest Expense
9,474,686
9,838,031
Interest Expense
Net Interest Income
NET INCOME
$16,107,539$15,811,897
Charter Bank is a Subchapter S Corporation and income taxes are the liability of Charter Bank shareholders.
SECURITIES
2014
2013
2012
2011
2010
DEPOSITS
$165,600,000
$166,700,000
$178,900,000
$167,100,000
$162,100,000
$486,500,000
2014
2013
2012
2011
2010
$466,100,000
$480,000,000
$439,000,000
$430,500,000
5
Our slogan – “Good For You…And Our Community Too!”
– announces our dedication to providing resources and volunteering
time and talent to many Chippewa Valley community organizations.
Each year the bank contributes to private-not-for-profit organizations,
and our staff participates in many community development events.
We support the following organizations through
memberships and employee participation:
American Heart Association
Eau Claire Area Chamber of Commerce
Big Brothers, Big Sisters
Eau Claire Area Economic
Development Corporation
Boy Scouts of America,
Chippewa Valley Council
Eau Claire Community Foundation
Boys & Girls Club
Eau Claire Marathon
Children’s Museum of Eau Claire
Eau Claire Regional Arts Council
Chippewa Valley Free Clinic
Friends of Beaver Creek Reserve
Chippewa Valley Innovation Center
Junior Achievement
Chippewa Valley Museum
Kiwanis Clubs
Chippewa Valley Technical College
Foundation
Literacy Volunteers of the Chippewa Valley
Cystic Fibrosis Foundation
Rotary Club
Dunn County Economic
Development Corporation
United Way of the
Greater Chippewa Valley
Supporting
the
Eau Claire
Marathon
REACH Foundation
We support the following organizations through donations:
Advancing Hope, Jonah Fund
Alzheimer’s Association
American Red Cross
Big Brothers, Big Sisters
Bob’s House for Dogs
Boy Scouts of America,
Chippewa Valley Council
Boys & Girls Club
Children’s Museum of Eau Claire
Chippewa Valley Book Festival
Chippewa Valley Free Clinic
Chippewa Valley Museum
Chippewa Valley Technical College
Foundation
Chippewa Valley Theatre Guild
Chippewa Valley Symphony
Chippewa Valley Youth Symphony
Cystic Fibrosis Foundation
Downtown Eau Claire, Inc.
Eau Claire Cavaliers
6
Eau Claire Chamber Foundation
Eau Claire Children’s Theatre
Eau Claire Community Foundation
Eau Claire Elks Lodge
Eau Claire Hmong Mutual
Assistance Association
Eau Claire Humane Association
Eau Claire Parks & Recreation
Eau Claire Regional Arts Council
Eau Claire Sculpture Tour
Eau Claire Youth Hockey Association
Family Resource Center
Feed My People
Flying Eagles
Friends of the L.E. Phillips Public Library
Girls on the Run
Habitat for Humanity
Hope Gospel Mission
Joshua’s Camp
Junior Achievement
L.E. Phillips Senior Center
Literacy Volunteers of the Chippewa Valley
Local High School Graduation Parties
Marshfield Clinic
Mayo Health System
Old Abe Booster Club
Paul Bunyan Logging Camp
REACH Foundation
Sacred Heart Hospital
Salvation Army
Special Olympics
St. Francis Food Pantry
Stanley Theatre
The Community Table
The Highground
United Cerebral Palsy
United Way of the Greater Chippewa Valley
YMCA
Raising over
$6,500 for
S ponsor of the Eau Claire downtown
Memorial Day Parade
Big Brothers,
Big Sisters
Bowl for Kid’s Sake
Way
U nited
Day of Caring at
L.E. Phillips
Memorial
Library
Eau Claire
Humane
Association
Summer Reading
Challenge
benefitting
Feed My
People
Paul Kohler presenting our
donation to Suzanne Becker
with Feed My People.
Scrabble Bee for
Literacy Volunteers
of the Chippewa Valley
ver 1,2 00
O
free dictionaries
delivered to 21
Chippewa
Valley
Schools
in partnership with
the Elk’s Club.
Back row: Kim Showsh, Deb Hintz, Stacy Sturz
Front row: Jeff Biegel, Sue Diel, Sheila Stabe
7
S haring gratitude for our well attended
Realtor Safety Class
ponsor of
SEau
Claire
YMCA Programs
W alking and raising money for the
American Heart Association
ponsor of the
S Boys
and Girls Club
Money Matters
financial education program
of the
S ponsor
U.S. Open Chainsaw
Championship
which hosted over
13,000 spectators
8
ver 80 students
Oshowcased
artwork for the
Spring High School Art Exhibit
warded
A$63,000
in
harter Bank
C
Academic Scholarships
Helping the
Chippewa
Valley Museum
name the new steamboat exhibit
S upporting
Local Businesses
9
1010 W. Clairemont Ave Eau Claire, WI 54701
715.832.4254 • www.charterbankec.com
1010 W. Clairemont Ave Eau Claire, WI 54701
715.832.4254 • www.charterbankec.com