Reshaping the Industry - Wisconsin Bankers Association

Transcription

MAY 2016
WISCONSIN BANKERS ASSOCIATION
FOUNDED 1892
Reshaping the Industry
By Amber Seitz
attorney at Reinhart
Boerner Van Deuren s.c.
2015 was Wisconsin’s
“The risk is disruption
most active year for
merger and acquisition and displacement.”
This shift in the
activity in recent
banking landscape will
history, and 2016
have a profound effect
shows no signs of
on the entire financial
slowing down. The
services industry,
three motivations of
particularly with regard
achieving efficiency
through size, addressing to the number of
institutions and the cost
succession challenges
of talent retention.
and increasing
“Consolidation is
shareholder value
inevitable. No other
are all pushing the
industry toward further developed country
has this many banks,”
consolidation. “The
said James Johannes,
challenge for the
Graduate School of
industry is to handle
Banking/Prochnow
the consolidation,”
Professor of Banking
said John Reichert,
d
se
a
e
r
c
In
M&
possible to look at
trends and patterns
across the industry
to identify the major
influences on M&A
and project what their
ultimate impact will be.
Aa
cti
vit
all
s
y
t
c
f
ac
a
p
ets
im
of the
financial services
industry.
at the Wisconsin
School of Business at
UW-Madison. Though
Johannes cautions
against generalizations,
– “There’s no such
thing as an ‘average
bank,’ he says – it is
Finding the
“Right” Size
Some banks seek
M&A deals in order
to achieve efficiencies,
thinking there is an
optimal asset size for
them to achieve
economies of scale
while staying
under the regulatory
radar. There are
advantages to size,
of course.
(continued on p.28)
Laser-Focused Strategy
Achieving high performance through niche markets
Throughout the history
of banking, certain
institutions have sought
– and found – profits
and performance by
investing in a targeted
niche market. In today’s
fiercely competitive
financial landscape,
intensified by rising
regulatory burden and
perpetually low interest
rates, a well-executed
niche focus is a sound
strategy for many
institutions. “It’s getting
much harder today to
create differentiation,”
said Kevin Tweddle,
president – Bank
Intelligence Solutions,
Fiserv. “That is the
main reason you see
niche strategies. You
have to be an expert at
something in order to
be successful.” That
expertise allows the
bank to seek out and
serve customers outside
of their traditional
scope, with the goal of
increasing profits. “If
you can build a niche
lending product where
you’re an expert in
R CALEN
YOU
D
RK
S
AR
MA
(continued on p.24)
UMS
Madison, WI 53718
4721 South Biltmore Lane
Trappers Turn Golf Club • Wisconsin Dells
Wisconsin Bankers Association
PAID
U.S. POSTAGE
PRSRT STD
2
MAY 2016
Looking Back on a Successful Year, and Forward to a Bright Future
By Peter Prickett
This past year was a strong
one for Wisconsin’s banking
industry. It was the first year
in a very long time that the
industry stood united under a
single association, and I am
proud to have served as WBA’s
Chair during this historic time.
It was, as planned, a year of
action, rather than trailblazing.
We accomplished much with
regard to the association’s three
overarching goals: industry
advocacy and regulatory
relief, education about and
for bankers, and innovation in
products and services.
On its first annual Capitol
Day following the merger with
the Community Bankers of
Wisconsin, WBA celebrated
a 30 percent increase in the
number of banks represented
at the event. That excellent
turnout meant attendees were
able to meet with legislators
Message from
the Chair
Peter J. Prickett
and staff from over 75 percent
of the legislature. Thank you
to the nearly 200 bankers
who attended this important
advocacy event.
In the realm of education,
in the wake of the merger with
CBW, the WBA offered more
educational programming
and professional development
opportunities to member banks
and their staff than ever before.
New programs such as the
School of Bank Management
and the Agricultural Lending
School offer more in-depth
training in specific areas of
banking, while perennially
popular programs such as the
Residential Mortgage Lending
School and Compliance
Forums continue bringing
essential updates to bankers.
Throughout this past year,
the association also made
progress on current projects,
such as the launch of the
Wisconsin Lending Guide
and the crowdfunding platform
nVest Wisconsin. We also
laid the groundwork for
larger projects such as a new
WBA website.
Looking back on my time
as Chair, I’m proud of all
we were able to accomplish
together. I’m also looking
forward to seeing what
the future holds, both for
the industry and for the
association. No matter what
challenges may come, bankers
must remember that we impact
our communities in a positive
way every single day, and we
should be proud of that. I love
what I do as a banker, and I
feel fortunate to have been able
to share that with you this year.
I would be remiss if I did
not take this opportunity to
thank all of the current WBA
board members for working
with me, and also Rose
Oswald Poels and all the
WBA staff for their assistance
in making this a successful
year, as well. Finally, I need to
thank my bank and my family
for their support and patience
with the extra time away this
position sometimes requires.
It has been a privilege and
a true honor to serve as Chair
of the WBA Board of Directors
for the past year. Thank you to
the membership of the WBA
for supporting me throughout
my term.
Prickett is President/CEO of First
National Bank – Fox Valley, Neenah
and the 2015-2016 WBA Chair.
MAY 2016
3
4
MAY 2016
Delegates, Superdelegates and Justices
By Jon Turke
Last month, you and your
fellow Wisconsinites went
to the polls in droves. It was
the highest turnout for the
presidential primary and spring
election since 1972. In fact,
47 percent of registered voters
went to the polls. To put this
in comparison, at the time of
our election date, Wisconsin
trailed only New Hampshire in
voter participation throughout
the country.
On the Republican side,
Senator Ted Cruz (R-Texas)
beat businessman and reality
TV star Donald Trump
(R-New York) by 14 points.
Governor John Kasich
(R-Ohio) came in third place,
trailing Cruz by 34 points. The
Republican Party allocates its
42 delegates in Wisconsin by
two ways. First, the statewide
winner takes 18 delegates
regardless of margin of victory.
Then, the winner of each
of the eight congressional
districts wins three delegates
per district. Cruz won six
out of the eight districts and
Trump won the other two. The
delegates allocated to each
Advocacy
Update
Jon Turke
candidate are: Cruz 36, Trump
6, and Kasich 0. It takes 1,237
delegates to seal the GOP
presidential nomination.
The Democrat rules for
Wisconsin are quite a bit
different. Although Senator
Bernie Sanders (D-Vermont)
carried the state handily,
including winning every
county but three (Milwaukee,
Buffalo and Polk), he could
end up walking away with
a net of zero delegates. The
Democratic Party of Wisconsin
allocates their delegates on
a proportional distribution.
Based on the vote, Sanders
won 48 delegates to Secretary
Hillary Clinton’s (D-New
York) 38 thanks to his 57
percent – 43 percent victory.
However, 10 party
“superdelegates,” or party
leaders and officials who
Spring
Election
Recap
can vote how they please,
have the ability to wipe away
Sanders’ net gain. Already, six
superdelegates have pledged
their support to Clinton
regardless of the outcome of
the primary. Should the other
four go the same way, Sanders
and Clinton would tie. 2,383
delegates are needed to win the
Democrat nomination.
The other big race in
April was the election of state
Supreme Court justice. Justice
Rebecca Bradley was seeking
re-election for a full 10-year
term after her appointment by
Governor Scott Walker (R)
to fill the vacancy left by the
death of Justice N. Patrick
Crooks late last year. Dane
County Circuit Court Judge
JoAnne Kloppenburg made
her second run for the court
following her loss in 2011 to
Justice David Prosser. Bradley
bested Kloppenburg 52 percent
– 48 percent.
While this election was
viewed as a proxy fight over
the popularity of Governor
Walker, it appears Democrats
and Independent voters crossed
over to help carry Bradley over
the finish line. As an example,
Bradley received 14,000 more
votes in the City of Milwaukee
than all the GOP presidential
candidates combined.
In all, 5,891 of your
friends and neighbors ran for
3,888 offices on the ballot in
Wisconsin on April 5. While
the top of the ticket races get
all the attention, those running
for your local municipal,
school and county boards have
a far greater impact on your
daily life. When there has
been a statewide contest on the
Spring ballot, Wisconsin has
averaged less than a 20 percent
turnout since 2000 compared
to 60 percent for November
elections. Hopefully turnout
will continue to increase in
the future.
Turke is WBA director –
govern-ment relations.
DFI Presents WBA Two Governor’s Proclamations
Teach Children to Save Day and Community Banking Month recognized
New Wisconsin Department of
Financial Institutions Secretary
Lon Roberts and Deputy
Secretary Jay Risch met with
WBA President and CEO Rose
Oswald Poels and Executive
Vice President – Chief of
Staff Daryll Lund on March
29 to discuss issues that are
important to WBA’s member
banks, as well as matters the
two organizations can work
together on in the future. After
the meeting, Roberts presented
WBA with two proclamations
signed by Governor Scott
Walker. The proclamations
recognize April as Community
Banking Month in Wisconsin
and April 29, 2016 as Teach
Children to Save Day,
respectively.
Pictured are (left to
right): Risch, Lund, Oswald
Poels, and Roberts with both
proclamations.
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MAY 2016
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MAY 2016
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7
MAY 2016
HELP Act Allows Balloon-Payment QMs for Certain Lenders
Has CFPB broadened the
Small Creditors Operating
in Rural and Underserved
Area Rules?
Q
A
Answer: Yes. On March 22,
2016, CFPB issued an interim
final rule that amended certain
provisions of Regulation Z,
which implements the Truth
in Lending Act (TILA), in
light of the Helping Expand
Lending Practices in Rural
Communities Act (HELP Act
or Act). The HELP Act
broadened the class of creditors
that may be eligible under TILA
for the special provision allowing
origination of balloon-payment
qualified mortgages and for
the escrow provisions because
the Act removed the term
“predominantly” from certain
TILA sections.
Before the April 1, 2016
change, only small creditors
that: (1) meet the asset size
threshold; (2) meet the loan
origination limit; and (3)
operate “predominately” in
rural or underserved areas
Compliance
Q&A
Heather A.
MacKinnon
could originate balloon mortgage
loans that have QM-status. CFPB
interprets predominately to
mean that at least 50 percent of
a creditor’s covered mortgage
loans were on properties located
in rural or underserved areas.
Under the HELP Act and
issued interim final rule, a
small creditor will no longer
be required to extend more
than 50 percent of its covered
transactions secured by firstliens on properties located in
rural or underserved areas in
order to be eligible to originate
balloon-payment qualified
mortgages and balloonpayment high cost mortgages
and for an exemption from the
requirement to establish an
escrow account for HPMLs.
Now, effective March 31,
2016, small creditors that: (1)
meet the asset size threshold;
(2) meet the loan origination
limit; and (3) originate at
least one covered transaction
secured by a first lien on a
property located in a rural or
underserved area within the
preceding calendar year can
originate balloon mortgage
loans that have QM-status.
Additionally, effective
March 31, 2016, small
creditors that: (1) meet the
asset sized threshold; (2) meet
the loan origination limit; (3)
originate at least one covered
transaction secured by a first
lien on a property located in
a rural or underserved area
within the preceding calendar
year; and (4) do not maintain
an escrow account for any
extension of consumer credit
secured by real property or a
dwelling that the creditor or
its affiliates currently services,
except for in the limited
circumstances as outlined in
Regulation Z, may qualify
for an exemption from the
requirement to establish an
escrow account for HPMLs.
More information about
CFPB’s interim final rule
may be found in the April
2016 WBA Compliance
Journal and at: http://
www.consumerfinance.gov/
newsroom/cfpb-rule-broadensqualified-mortgage-coverageof-lenders-operating-in-ruraland-underserved-areas/ and
http://files.consumerfinance.
gov/f/201603_cfpb_executivesummary-of-the-rulesimplementing-the-helpingexpand-lending-practices-inrural-communities-act.pdf.
MacKinnon is WBA director –
legal. For legal questions, please
email [email protected].
Note: The above information is not
intended to provide legal advice;
rather, it is intended to provide
general information about banking
issues. Consult your institution’s
attorney for specific legal advice
or assistance.
Maintaining a Predictable, Stable Regulatory Environment
By Lon E. Roberts
While I have served as the
Secretary of the Wisconsin
Department of Financial
Institutions (DFI) for a mere
six weeks at the time of this
writing, I come to DFI with
more than 43 years of private
sector experience related to
the financial services industry.
During my tenure as a private
practice attorney I spent much
of my time in the business and
financial services-related areas.
As an attorney, I was, like you,
a longtime customer of DFI.
I believe this experience will
serve me well in my new role,
and I thank Governor Scott
Walker for placing his trust
in me to lead and for the
opportunity to serve Wisconsin.
I would like to briefly
outline what we at DFI are
Department
of Financial
Institutions
Lon E. Roberts
seeing as it relates to our
Banking Division. We are
fortunate that the statechartered banks supervised
by DFI are, as a group, well
managed, well capitalized,
more “safe” and “sound,”
market driven, and responsive
to customer needs and
concerns. According to
Q4 2015 data, profits and
total assets are on the rise,
lending is increasing and
delinquency rates are down.
Real estate inventory,
foreclosure filings, and
past due mortgages are all
approaching pre-recession
levels, and Wisconsin is
besting the nation in these
categories. The state of
Wisconsin’s banking industry
is strong and its importance
to the Wisconsin economy is
very significant.
Along with the industry’s
many successes comes its fair
share of challenges. We see
an industry subjected to more
competitive pressures than
ever before with the coming
of new products, competitors,
and regulations. In addition,
risk management has never
been more important during
a time when we are seeing an
accelerating rate of societal
change with regard to an aging
population, new workforce,
rapidly evolving consumer
demands, new technologies,
increasing cyber security
threats, and increasing capital
requirements. New federal
regulations adopted in the
wake of the 2008 financial
crisis have placed a
disproportionate burden on
our community banks in
Wisconsin and across America.
Community banks, and the
banking industry as a whole,
are vital to the economic and
social success of our state.
This is why we, at DFI, believe
in maintaining an effective
and efficiently administered
state-based regulatory structure
that is predictable, stable and
connected to the financial
environment existing here
in Wisconsin.
As for government’s larger
role, Governor Walker’s
(continued on p.8)
8
MAY 2016
Regulatory Feedback Initiative Ensures Bankers Voices are Heard
Inconsistency is among the
top concerns bankers have
regarding examinations and
visitations by their regulators.
Rather than coping with these
inconsistencies and the
uncertainty regarding what
issues will be covered in
an examination or how a
regulation will be enforced, as
well as wondering whether the
bank down the street has a
similar exam experience, bankers
can take action with the
Regulatory Feedback Initiative.
The Regulatory Feedback
Initiative is a powerful tool
in the form of a confidential
electronic survey which allows
bankers to anonymously
provide details on their
most recent examination or
visitation, creating a new
level of transparency in the
examination process.
Survey results are aggregated
and analyzed to identify
discrepancies in how banking
regulations are enforced,
and to help avoid misguided
regulatory treatment.
Bankers need not be
concerned with the anonymity
of the survey. Data cannot be
traced back to the reporting
bank, as it is reported only in
aggregate form. Participation in
the survey will not violate the
confidentiality requirements
associated with any exam. The
federal banking regulatory
agencies have reviewed the
questions within the survey and
have raised no concerns regarding confidentiality; rather, the
agencies have expressed
strong interest in viewing the
aggregated survey results.
The Regulatory Feedback
Initiative has already
achieved success in helping to
improve the quality of banks’
examinations, and identifying
inconsistencies in how
banking regulations are being
enforced has never been more
important, given the avalanche
of requirements resulting from
the Dodd-Frank Act. Bankers
have the power to help ensure
that these regulations are
consistently enforced across
the country.
The continued success
of the Regulatory Feedback
Initiative depends on banks
integrating the survey into their
ongoing regulatory compliance
processes, by completing a
survey immediately following
Read about the coalition at www.allbankers.org
 www.allbankers.org/initiative.html
each regulatory exam or
visitation. One of the primary
benefits of the Initiative is the
ability to identify discrepancies
in “real time.” Bankers have
a unique opportunity to improve
the industry’s regulatory climate
and truly hold examiners
accountable, by making their
voices heard after each exam.
When sufficient data has
been gathered from the survey,
participating banks may also
request a report from their state
bankers association that summarizes the feedback of similarly
situated banks (based on asset
size, primary federal regulator,
region, etc.), which can serve
as a powerful resource in exam
preparation efforts.
To find out more about the
Regulatory Feedback Initiative,
please visit www.allbankers.
org/initiative.html.
DFI’s Lon Roberts
(continued from p. 7)
administration is
focused on long-term
efforts and programs to
improve Wisconsin’s
economy through tax
relief, streamlining
administrative rules and
regulations, transforming
education to graduate
a more job ready
workforce, and investing
in our infrastructure, to
name a few. All of these
contribute to improved
prospects for the financial
services industry.
DFI has and will
continue to engage in
continuous performance
improvement. We will
strive to be readily
accessible, knowledgeable about regional, state
and local challenges,
efficient, and responsive.
I believe there is a value
proposition in possessing
a state charter, and as
the former director of a
state-chartered bank,
I understand and appreciate the
local focus on financial issues
and accessibility of agency
staff that a state charter offers.
You are engaged in helping
people achieve their visions
of the American Dream.
You help to provide citizens
with the means necessary to
obtain higher education to
enhance their careers, save
and invest for retirement,
build and own homes for
them and their families, start
businesses, and much more.
Banks are the pillars of cities,
towns and villages all across
Wisconsin, so thank you for
your work and commitment to
the communities and citizens
you serve. I, and all of us who
work at DFI, look forward
to working with you and
helping you and the citizens of
Wisconsin to ever higher levels
of success.
Roberts is Secretary of the
Wisconsin Department of
Financial Institutions. He was
appointed by Governor Scott
Walker on Feb. 29, 2016.
MAY 2016
9
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11
MAY 2016
Learning to Lead Your Industry
Join other up-andcomers for banking
leadership summit
The WBA BOLT (Building
Our Leaders of Tomorrow)
program was developed as a
way to engage bankers who
represent the next generation
of bank leaders through
education, advocacy and
networking. These future
leaders will soon gather for
the WBA BOLT Summer
Leadership Summit, June
13-14 in Wisconsin Dells.
The summit is an excellent
opportunity for these bankers
to hone their talents and
skills as they progress toward
executive roles at their
respective institutions.
The two-day summit begins
with a panel discussion of how
bankers can find opportunities
WBA BOLT Summer
Leadership Summit 2016
June 13-14
Wisconsin Dells
Building Our Leaders of Tomorrow
ADMINISTRATION NETWORKING
LEADERSHIP
INFLUENCE
FOCUS STRENGTH
INITIATIVE
POWER
SUCCESS VISION FOCUS ENDURANCE
COMMAND
AUTHORITY
FORESIGHT POTENTIAL
» Visit www.wisbank.com/BOLT16 for more information about
the summit or to register.
and ideas to engage with
their communities and how
to become an advocate for the
banking industry. After
a roundtable discussion –
one of the event’s many
networking opportunities
– attendees will hear from
speaker John Graci about
how to motivate employees
through effective leadership.
The second day of the
summit opens with Sarah
Gibson’s interactive session
on bridging the generational
divide in the workplace.
After the always-popular
speed networking session,
attendees will have their pick
to attend two of three different
breakout sessions: Train Your
Brain for Success; Meeting
Management; and “How
to Wow” Your Customers.
Customer service expert
Rob Bell will close the
summit with a session on
how to build teamwork and
techniques to make your bank
a great place to work.
Visit www.wisbank.com/
BOLT16 for more information
or to register. Please direct
questions regarding the summit
or WBA BOLT Section
Membership to WBA’s Lori
Kalscheuer at 608/441-1250
or [email protected].
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12 MAY 2016
Wisconsin Banks: Prepare for Looming Military Lending Act Changes
By Lauren Capitini
On Oct. 3, 2016, banks
must begin complying with
new and impactful Military
Lending Act changes. It is
imperative that banks ensure
loan documents reflect new
disclosure requirements and
existing prohibitions under
the Act, systems are updated
to reflect the revised Military
APR (MAPR) calculation
for covered loans, and
processes and procedures are
in place to properly identify
covered borrowers.
As discussed in the October
2015 Compliance Journal, the
Department of Defense (DOD)
issued a Final Rule amending
its regulation implementing the
Military Lending Act (MLA)
in July 2015. While the Rule
became effective Oct. 1, 2015,
mandatory compliance is not
required until Oct. 3, 2016 and
is extended to Oct. 3, 2017
Boardman
& Clark LLP
Lauren
Capitini
for credit card accounts. The
MLA, originally intended
to protect servicemembers
and their dependents against
predatory lending practices,
has been amended over
time to expand protections
for servicemembers and
dependents at the time of a
loan transaction. The new
requirements are no exception.
In summary, upcoming
changes have greatly expanded
the scope of MLA protections
for active-duty military
personnel, active National
Guard or Reserve personnel,
and their dependents (“covered
borrowers”). Key changes1
include expanded loan
coverage, new disclosures for
covered borrowers, and new
“safe harbor” mechanisms
for covered borrower
determinations.
Expanded loan coverage.
A wider range of credit
products are now subject to
the protections of the MLA.
Originally, only payday loans,
vehicle title loans, and tax
refund anticipation loans were
subject to MLA requirements.
Under the new rule, coverage
is now defined consistently
with Regulation Z – credit
offered or extended to a
covered borrower primarily for
personal, family, or household
purposes, and that is (i) subject
to a finance charge; or (ii)
payable by a written agreement
in more than four installments.
However, residential mortgage
transactions (i.e. any dwelling-
secured transaction, including
a refinance, home equity loan
or line of credit, or reverse
mortgage) and purchase money
loans secured by a vehicle
or other personal property
are excepted from coverage.
Covered loans are subject
to an MAPR of 36%, which
covers all interest and fees
associated with the loan along
with charges for “add on”
products (e.g. credit insurance
and debt suspension plans).
Furthermore, covered loans
must comply with a number
of restrictions including, for
example, a ban on mandatory
arbitration clauses and prepayment penalties.
New disclosures for
covered borrowers. Lenders
must now provide covered
borrowers with a statement
regarding the MAPR at
(continued on p. 13)
Wisconsin Lawyers
for Wisconsin Banks
Mergers & acquisitions
Loan transactions, documentation, & workouts
Compliance | Regulatory
Capital raises | Vendor contracts
Employment agreements & HR matters
John Knight • Kirsten Spira
Jim Bartzen • Jennifer Mirus • Jeff Storch
Jerry McAdow • Patrick Neuman • Athena Skaleris
Gail Perry • Lauren Capitini
Madison, WI | boardmanclark.com | (608) 283-1764
13
MAY 2016
Military Act Changes
or before consummation
or account-opening. This
statement, for which a model
is available, need not be
numerical or describe the
dollar amount of all charges
included in the MAPR.
Additionally, lenders are
required to orally deliver
the MAPR disclosure, along
with a clear description of
the payment obligation,
in-person or via a toll-free
telephone number listed on the
application or disclosure.
New mechanisms to
determine an applicant’s
status as a “covered
borrower.” Previously,
lenders could rely on a
consumer’s attestation as
to whether they were active
duty servicemembers or a
dependent. Under the new
rules, lenders will obtain
a safe harbor if covered
borrower determinations are
made through (a) DOD’s
MLA database or (b) a report
obtained from a nationwide
consumer reporting agency (or
reseller).
Banks should take the
following steps in preparation
for these upcoming changes:
(1) Work with your
document providers to ensure
compliance with MAPR
disclosure requirements. A
bank may choose to either
incorporate the new MAPR
statement into standard credit
agreements, as applicable, or
provide a separate disclosure.
Relatedly, banks should
confirm that relevant credit
agreements do not contain
features specifically prohibited
by the Act, such as mandatory
arbitration language or prepayment penalties.
(2) Ensure system
readiness to calculate MAPR
on covered loans. Although
a numerical MAPR is not
required to be disclosed,
lenders retain the responsibility
to confirm the MAPR is
“The MLA has been amended
over time to expand protections for servicemembers
and dependents at the
time of a loan transaction.
The new requirements are
no exception.”
– Lauren Capitini, attorney
Boardman & Clark, LLP
not greater than 36%. With
changes in calculations for
MAPR, including variances
between closed-end credit,
open-end credit, and credit
card transactions, banks should
confirm systems are prepared
to address these new and
unique calculations.
(3) Establish policies and
procedures to conduct covered
borrower checks. As described
above, there are now two “safe
harbor” mechanisms by which
lenders can conduct covered
borrower checks. Banks should
weigh the costs and benefits of
each – for example, turnaround
times and cost – and should
incorporate business decisions
into policies and procedures.
If banks are out of
compliance with the MLA,
severe penalties can be
assessed, including voidable
contracts and financial and
criminal penalties. It’s critical
to address these issues now,
in advance of the upcoming
mandatory compliance dates.
1
See the October 2015
Compliance Journal for a
detailed description of changes.
Capitini is an attorney at
Boardman & Clark, LLP.
Note: The above information is not
intended to provide legal advice;
rather, it is intended to provide
general information about banking
issues. Consult your institution’s
attorney for specific legal advice
or assistance.
S E M I N A R
As we encounter 2016’s anticipated financial crossroads, bank managers are equipping themselves
with the information they need to face the unique challenges and opportunities that lie before
them. Making successful decisions requires the right tools, techniques, and processes. But
most importantly, it requires the right partner—The Baker Group—and one very special event.
The Baker Group’s Interest Rate Risk and
Investment Strategies Seminar is developed
specifically for managers of financial institutions.
Designed to meet the challenges of 2016, it is an
in-depth examination of current topics including:
• Bank Performance Trends and Industry
Landscape
• Asset/Liability Management: Finding Keys
to High Performance
• Game-Plans for a Shifting Rate Environment
• Managing Investment Risk: Strategy and
Tactics
• Regulatory Expectations for Interest Rate
Risk and Investments
• Modeling Assumptions and Key Simulations
for Interest Rate Risk
• Security Selection Decisions: Cash Flow and
Relative Value
• Sector-Specific Risk Management: MBS
Prepays and Municipal Bond Credit Analysis
• Liquidity, Cash Flow, and the Bond Portfolio
For your convenience, register online at GoBaker.com/
Wisconsin. For more information, call Skoshi Heron
at 888.990.0010.
June 14, 2016
Wisconsin Dells, Wisconsin
Trappers Turn Golf Club
2955 Wisconsin Dells Parkway
Wisconsin Dells, WI 53965
608.253.7000
Agenda
Continental Breakfast
Seminar
Lunch
Golf
Who Should Attend
Financial institutions’ CEOs, CFOs,
investment officers, board members,
and those who are directly or
indirectly responsible for financial
management functions will benefit
from this seminar. There is no cost
for this seminar.
CPE credits will be earned
for your attendance.
Member: FINRA and SIPC
www.GoBaker.com
Oklahoma City, OK | Atlanta, GA | Austin, TX | Indianapolis, IN | Salt Lake City, UT | Springfield, IL | 800.937.2257
The Baker Group LP is the sole authorized distributor for the products and services developed and provided by The Baker Group Software Solutions, Inc.
14 MAY 2016
Give a Local Educator the Tools to Teach Personal Finance in Your Community
Teaching young consumers
important personal finance
concepts is fundamental to
improving our economy. The
National Institute of Financial
and Economic Literacy
(NIFEL) is designed to help
educators prepare for this
responsibility. NIFEL isn’t just
for personal finance teachers,
either. Instructors for consumer
sciences, social studies,
economics, math, business
and even driver’s ed. have all
taken what they learned during
these post-graduate courses
and applied them in their
own classrooms. Financial
counselors, social workers,
community support workers
and school principals and
administrators can also benefit
from NIFEL courses.
There are three weeklong classes each summer
which focus on different
personal finance topics. All
of the courses are held on the
campus of Edgewood College
in Madison. This year’s class
schedule is:
» June 20-24 | Investor
Education, Economics and
Insurance
» June 27-July 1 | Paychecks,
Financial Contracts and
Entrepreneurship
» July 6-8 | Credit and Money
(online class begins June 15)
The first session covers how
to save and invest as a means
to financial security and as
a wealth-building strategy.
Attendees will learn how
You see the destination. We see your path.
Insight. Experience. Passion for business. And a promise that we will work hard to deliver
practical solutions and efficient legal advice. For more than 50 years, financial institutions
have trusted Godfrey & Kahn as their legal advisor. This solid foundation, along with the
experience and depth of our attorneys who have worked in the industry, gives us a keen
understanding of the challenges and opportunities financial institutions face each day.
For more information about our Banking & Financial Institutions Team, contact Tom Homberg
at 414.287.9429, or [email protected].
We think business.
OF F ICE S I N M I LWAU K E E, MADI SON, WAU K E S HA, G R E E N BAY AN D AP P LETON, W I SC ON S I N AN D
WAS H I NGTON, D.C.
© 2016 Godfrey & Kahn, S.C.
the institutions of a market
economy enhance wealth
building both individually and
socially. The class will also
introduce several participative
activities and “games” for a
lively learning environment.
The second session helps
attendees become more highly
skilled at teaching a step-bystep approach to managing and
understanding basic but vital
personal financial transactions,
including renting and home
buying, education planning,
retirement and social security,
taxes, employee benefits, and
more. In addition, attendees
will become familiar with
experience-based activities –
such as “Reality Stores” – and
learn how to help their students
understand their financial
world in a practical, yet fun
and engaging way.
The final class of the
summer, which begins online
a month before the classroom
portion, covers credit, one
of the most widely used but
often abused financial tools
in existence. Attendees will
learn about the many changes
in the law affecting credit
cards today. Through a variety
of speakers and activities,
this course will demonstrate
how to teach students about
credit basics, including the
psychological and behaviors
aspects of credit.
Many of the educators
who attend these classes are
sponsored by a local financial
institution, and WBA has
supported the Institute for
many years, most recently
through the Wisconsin Bankers
Foundation. Encourage
educators from your area to
attend, and consider sponsoring
all or part of their attendance
at this great program. Learn
more about how to sponsor
an educator from your area
by contacting WBA’s Amber
Seitz at 608/441-1237 or
[email protected]. Find out
more about NIFEL by visiting
www.edgewood.edu/NIFEL.
MAY 2016
15
16 MAY 2016
Bulletin Board
News about people working in Wisconsin’s financial institutions
Promotions and New Hires
(pictured) to treasury
management supervisor.
Fond du Lac
American Bank has promoted
Kristine Schroeder (pictured)
to the role of vice president
and Peggy Zickert (pictured)
to compliance officer.
Schroeder
Madison
First Business Financial
Services has appointed David
R. Seiler (pictured) as chief
operating officer of the bank
holding company.
Milwaukee
Riedel
Bank Mutual has
appointed Dawn
Riedel (pictured)
as vice president
– director of
marketing.
Kolb
Zickert
Meisel
Neenah
First National Bank – Fox
Valley has promoted six
employees: Brooke Johnson
(pictured) to universal teller;
Sarah Johnson (pictured)
to treasury management
Ixonia Fire and EMS Dept. Fundraiser
In a show of their
appreciation and
support, Ixonia
Bank recently
donated $1,000
to the Town of
Ixonia Fire and
EMS Department
toward the
purchase of a
state-of-the-art
hydraulic lift system that helps remove a cot into and out of the
ambulance, reducing operator and patient injuries. Pictured (left to
right): Carrie Rosenau, assistant vice president – regional manager
at Ixonia Bank; David Schilling, chief of Ixonia Fire and EMS; and
Dan Westrope, president and CEO at Ixonia Bank.
www.bsrecruiters.com
B$ Recruiters is an
executive search firm
providing staffing services
to banks in the Wisconsin
marketplace that seek
top-caliber talent.
Seiler
Salzer
B. Johnson
Wied
S. Johnson
Russell
assistant; Lea Ann Kolb
(pictured) to retail operations
assistant; Beth Meisel
supervisor; Heather Salzer
specialist; and Staci Wied
Oconomowoc
Craig Kouba has been
promoted to senior vice
president of First Bank
Financial Centre.
River Falls
First National Bank of River
Falls Executive Vice President
and Chief Credit Officer
Matt Russell (pictured) has
been elected to the bank’s
Board of Directors. The
bank has also promoted Lois
Jenkins (pictured) to senior
vice president and chief
financial officer.
(continued on p. 17)
Breast Cancer Recovery Foundation
Receives Bank Donation
Wisconsin Bank & Trust recently donated over $17,000 to Breast
Cancer Recovery Foundation, Inc. Since 2012, WB&T has contributed
to the foundation by matching a portion of purchases made with its
Pink Ribbon Debit Card. For each purchase made with the cards,
WB&T makes a 2.5-cent donation to the foundation. Pictured above:
Wisconsin Bank & Trust employees presented the $17,645.88 donation
to Breast Cancer Recovery Foundation staff on March 8.
Erick Gorecki
Del Garcia
We have successfully fulfilled assignments for our clients since our
beginning in 1993. The keys to our long success are our industry experience,
personal commitment, and professionalism of our recruiters. We enjoy
long-term relationships with the great majority of our clients because of
our personal dedication to provide them with the highest level of service.
B$ Recruiters is an independently owned executive search and recruitment
firm. We offer commitment and dedication to our searches.
B$ Recruiters | 155 East Capitol Drive, Suite #5 | Hartland, Wisconsin 53029
Office: (262) 369-7007 | Cell: (262) 370-4105 | www.bsrecruiters.com
Have good news? To submit a notice, please email
[email protected]. Or mail entries to WBA Bulletin
Board, 4721 South Biltmore Lane, Madison, WI 53718. Send
photos as JPEG files. Questions? Contact WBA’s Amber Seitz
at 608/441-1237 or [email protected].
17
MAY 2016
Bulletin Board
News about people working in Wisconsin’s financial institutions
Promotions and New Hires
Waukesha
Waukesha
Lynn Boelter (pictured) has
been hired as vice president –
commercial banking officer
by Waukesha State Bank.
Prairie Financial Group, a
division of Waukesha State
Bank, has promoted Kelly
Savatski (pictured) to senior
portfolio manager.
Jenkins
Boelter
Wausau
Peoples State Bank has hired
Andrea Sasman (pictured) as
mortgage loan specialist.
Wauwatosa
The Equitable Bank has hired
Savatski
Sasman
O’Connor
Kevin O’Connor (pictured)
as a mortgage loan officer.
Congratulations
Greenleaf
Greenleaf Wayside Bank
President David W. Krutz
(pictured) is
celebrating 50
years with the
bank and 59
years of service
Krutz
to the industry.
He leads by example and takes
pride in knowing that when
a customer walks into his
bank they will be greeted by
name and provided the best
customer service possible.
Congratulations, Dave!
Johnson Named Citizen of the Year
First National Bank of River Falls President & CEO Jeff Johnson was
recently named Citizen of the Year by the River Falls Area Chamber
of Commerce. Pictured above (left to right) at the annual awards
banquet: Polly Smith Stafford, bank majority shareholder; Lori
and Jeff Johnson; and Sandy Smith Wurm, bank vice chair and
majority shareholder.
Commercial and ag participation loans | Bank stock &
ownership loans | Bank building financing | Business
& personal loans for bankers
Veterans Honored with Donations
Call me at
612.270.3314
Tracy Peterson
Based in Minneapolis, MN,
serving Minnesota, Wisconsin,
Montana and Arizona.
Pictured above (left to right): John Mercure, Stars & Stripes Honor
Flight Board Member and 620 WTMJ Radio Host; First Sgt. Matt
Eversmann; FBFC employee and Past Honor Flight Guardian
Becky Miller.
bellbanks.com
Partner with us.
Our correspondent bankers will get you
clear answers and fast decisions. As your
partner, we will help you enhance your
customer relationships. As your bank
grows, we’ll help you meet your needs.
Together,let’s
make it happen.
Member FDIC
11761
First Bank Financial Centre, Oconomowoc recently donated $11,000
to the Stars & Stripes Honor Flight in honor of First Sergeant Matt
Eversmann (Ret.), who recently spoke at a FBFC leadership event.
Eversmann is immortalized in the epic film Black Hawk Down and the
2004 book The Battle of Mogadishu, which tell the heroic story of a
group of elite United States soldiers sent to Somalia in 1993 as part of a
United Nations peacekeeping operation.
18 MAY 2016
New Commercial Lenders Build a Strong Foundation
WBA school introduces core concepts to new commercial bankers
Held March 15-17 at the
Wintergreen Resort and
Conference Center in
Wisconsin Dells, the WBA
Introduction to Commercial
Lending School provided
attending bankers with a
basic understanding of the
core principles and concepts
of commercial lending.
Congratulations to all of the
following graduates!
Justin Anderson,
Associated Bank, Stevens
Point; Sara Baker, Ladysmith
Federal Savings and Loan;
Brenda Bartz, Tomahawk
Community Bank; Nicole
Beringer, Bankers’ Bank,
Madison; Dolf DeCeuster,
National Exchange Bank
& Trust, Fond du Lac; Jeff
Dennee, Stratford State Bank;
Tyler Egerer, Oostburg State
Bank; Paige Emmrich, First
To learn more about WBA
Schools or to register,
please visit www.wisbank.
com/schools.
WBA Introduction to Commercial Lending School graduates gather for a photo.
National Bank of Berlin;
Cory Erickson, Peoples State
Bank, Minocqua; Nate Gosz,
Integrity First Bank, Wausau;
Ryan Grobe, Coulee Bank,
La Crosse; Tom Harrigan,
Whitewater Community
Development Authority; Ami
Johnson, Boundary Waters
Bank, Woodbury, Minn.; Darin
Johnson, River Bank, Holmen;
Alexander Kasprzak, Bank
Mutual, Brown Deer; Adam
Keuler, River Valley Bank,
Wausau; Molly Knoll, Forward
Financial Bank, Marshfield;
Melissa Kriewaldt, Integrity
First Bank, Wausau; Bridget
Krueger, State Bank of
Cross Plains, Verona; Matt
Paulsrud, River Bank, La
Crosse; John Price, Bank
of Luxemburg; Jordan
Sowinski, Tri-City National
Bank, Oak Creek; Katie
Stelzner, Northwestern
Bank, Chippewa Falls; Steve
Theurer, Waumandee State
Bank, Arcadia; Austin Travis,
WoodTrust Bank, Wisconsin
Rapids; Kale Unangst, First
National Bank of Berlin;
Tamela Wagner, Wisconsin
Bank & Trust, Elkhart Lake;
and Megan Wells, The Bank
of New Glarus.
19
MAY 2016
Mortgage Bankers Hone Specialized Skills
Bankers from across the state
gathered in Wisconsin Dells for
the sold-out WBA Residential
Mortgage Lending School,
Feb. 29 – March 4. Congratulations to the following graduates:
Keara Anderson, Bank of
Wisconsin Dells; Kristi Arzt,
Farmers & Merchants Bank,
Tomah; Sarah Baldwin,
Farmers State Bank, Hillsboro;
Angela Baum, PremierBank,
Fort Atkinson; Kathi Beyer,
First State Bank, Clintonville;
Anna Bluem, Waumandee
State Bank, Fountain City;
Crystal Brown, Union Bank
& Trust Company, Evansville;
Melanie Burdick, Dairy
State Bank, Rice Lake;
Jessica Collins, Waumandee
State Bank; Suzanne Creed,
PremierBank, Fort Atkinson;
Tylere Daggett, Collins State
Bank, Random Lake; Ryan
Dahmen, The Bank of New
Glarus; Dana DeMet, Nicolet
WBA Residential Mortgage Lending School graduates pose for a photo.
National Bank, Green Bay;
Jeff Dennee, Stratford State
Bank; Barbara Fish, Peoples
Bank, Elkhorn; Jasmine
Gezella, Greenleaf Wayside
Bank; Brenda Gruszynski,
The Stephenson National Bank
& Trust, Wausaukee; Chad
Gunther, Horicon Bank,
Ripon; Aaron Hendricks,
Sterling Bank, Chetek; Toni
Hinds, Peoples Bank, Elkhorn;
Todd Holtz, Park Bank, La
Crosse; Eric Hopfensperger,
Wolf River Community Bank,
Hortonville; Kristy Horzewski,
Tomahawk Community Bank;
Casey Koenig, Middleton
Community Bank; Derek Kohn,
Farmers State Bank, Markesan;
Amanda Krautkramer,
Stratford State Bank; Julie
Leis, Park Bank, Sparta; Jane
Luedke, Markesan State
Bank; Elisa Mason, Farmers
& Merchants Bank, Tomah;
Joan Mayer, Waumandee
State Bank, Mondovi; Rachel
McCullough, Greenwoods
State Bank, Lake Mills; JoAnn
Mertens, Dairy State Bank,
Birchwood; Harley Meyer,
Citizens State Bank of Loyal,
Spencer; Todd Michek, Mound
City Bank, Mineral Point;
Katie Nass, First Citizens
State Bank, Whitewater;
Bill Niebuhr, Bank of Sun
Prairie; Amberlynne Norvell,
Waumandee State Bank;
Joseph Peterson, Peoples
State Bank, Prairie du Chien;
Felicia Pfohl, First National
Bank at Darlington; Tiffany
Rielly, First National Bank at
Darlington; Gail Studzinski,
Community First Bank,
Rosholt; Ashley Tibbits,
Farmers Savings Bank, Mineral
Point; Mandy Tomkowiak,
Intercity State Bank, Schofield;
Carrie Vanderhoef, Fox River
State Bank, Burlington; and
Justin Wenninger, Horicon
Bank, Mayville.
Exceptional Service. It’s Just What We Do.
It’s our abilitiy to provide a personal, hands on approach to banking with the right financial
products, that makes Quad City Bank & Trust a company you can bank on. Our experienced
correspondent bankers make every effort to understand your bank’s unique situation and
goals in order to offer solutions designed to meet your needs.
To experience the Quad City Bank & Trust
relationship, contact any of our
Correspondent Bankers to see how we
can partner together.
Scott Krieger 715.590.2564
Sarah Dolan 773.354.4837
Kathy Francque 563.468.6268
Jay Johnson 563.468.6271
www.qcbt.com
4500 Brady Street, Davenport Iowa
Member FDIC
20 MAY 2016
Wisconsin Bankers Association
Calendar of Events
Visit www.wisbank.com/education to find out more about these
programs, register or browse a full list of WBA Education events.
Please direct questions to the WBA Education Department
at [email protected].
May – October
Conferences
WBA HR Conference
May 10 | Wisconsin Dells
WBA BSA/AML
Compliance Conference
May 18-19 | Wisconsin Dells
(See WBA Featured Events.)
FI PCO Events
FIPCO Compliance & Software
Forum (Deposit)
May 11-12 | Stevens Point
Threat Intelligence Briefing
May 19 | Oakfield
(Visit www.fipco.com/events.)
Boot Camp
WBA Lending Boot Camp
Peer Group Meetings
WBA Marketing Peer
Group Meetings
June 21 | Marshfield
June 23 | Oconomowoc
June 29 | Madison
Schools
WBA 2016 School
of Bank Management
June 19-24 | Madison
WBA Agricultural
Lending School
Aug. 22-24 | Wausau/Rothschild
Summits
WBA Bank Directors Summit
May 25 | Stevens Point
May 26 | Eau Claire
WBA BOLT Summer
Leadership Summit
June 13-14 | Wisconsin Dells
(See article on p. 11.)
Seminars/Workshops
WBA HSA Workshop
WBA Branch Manager Series:
The Evolving Role of
the Branch Manager
May 11 | Waukesha
WBA Featured Events
Upcoming Conference, Summit, Symposium
WBA BSA/AML Compliance Conference
The WBA’s flagship BSA/AML training event is the annual
review everyone needs to remember their critical duties and
addresses all key BSA responsibilities from CTR and
SAR filing to record retention. It will also review the required
elements of your AML program from CIP to enhanced due
diligence. Most importantly, the seminar’s content incorporates
recent changes and major proposed changes. This is not
an introductory program; all attendees should complete at
least six hours of formal BSA/AML training prior to attending.
To that end, WBA is holding a one-day BSA/AML overview
program, the WBA BSA/AML Overview Seminar, at the
conference location on May 17. Register for just the conference
or the conference and overview seminar by visiting
www.wisbank.com/BSA.
WBA IT Risk
Management Seminar
WBA Bank Directors Summit
WBA Cards and
Payments Symposium
June 1 | Wisconsin Dells
Community bank directors must have a working understanding
of how their decisions and oversight translate into day-to-day
actions that impact the bank’s financial results. This primer
presents attendees with the understanding of the role between
the strategic planning and goal setting requirements of
the board and how those decisions may impact risk. Bank
management teams, beginning or experienced inside and
outside directors, bank general counsel, senior officers
and compliance officers will all benefit from attending. Visit
www.wisbank.com/directors for more information and to
register at the location of your choice.
WBA Insurance Continuing
Education Class
June 16 | Madison
2016 Community Bankers for
Compliance Program
Stevens Point
July 26 | Oct. 18
Madison
July 27 | Oct. 19
May 25 | Stevens Point
May 26 | Eau Claire
WBA Cards and Payments Symposium
June 1 | Wisconsin Dells
Webinars (online training)
(Register online for webinars at
www.wisbank.com/education.)
> Register online for WBA events at www.wisbank.com/education.
> Register online for FIPCO events at www.fipco.com/events.
WBA’s social media efforts focus on communication, advocacy:
> Like Us
> Follow Us
> Join Us
> Watch Us
Wisconsin Bankers
Association –
www.facebook.
com/wisbank
@wisbank –
www.twitter.
com/wisbank
Wisconsin Bankers
www.linkedin.com/
company/wisconsinbankers-association
Wisconsin Bankers
www.youtube.
com/Wisconsin
Bankers
WBA is coming together with WACHA to offer a new program
specifically focusing on Card and Payments Transactions. This
seminar will present more insight on the cards and payments
world and how it’s affecting the banking industry every day.
Topics will include Trends in EMV, fraud, mobile wallet, Reg
E for cards, and trends in card payments. Speakers include
Chad Knutson, Secure Banking Solutions; Michele Barlow,
WACHA; Julie Hanson, ICBA Bancard, Inc; and Kevin
Christensen, SHAZAM. Visit www.wisbank.com/education
for more information and to register.
Please direct any questions about upcoming
WBA education programs to the WBA Education
Department at [email protected].
21
MAY 2016
Leadership Development for Community Bankers
A business-led training program for economic development and employee retention.
Congratulations to these Wisconsin banking professionals for completing the Leadership Development for
Community Bankers series, held at the University of Wisconsin-Madison. Best wishes for continued success!
Natalie Adams
Aaron Rawson
Samantha Strelow
Royal Bank
Elroy
State Bank
of Cross Plains
Southport Bank
Kenosha
Nancy Balbach
Patty Rogers
DeAnna Tittel
State Bank
of Cross Plains
Wisconsin Bankers
Association, Madison
Bank of Luxemburg
Shelly Cole
Shelly Rohde
Justin Wroblewski
Tomahawk Community
Bank
American National Bank
Appleton
The Stephenson National
Bank & Trust, Marinette
Ami Dregne
Scott Romportl
Citizens First Bank
Viroqua
River Cities Bank
Wisconsin Rapids
Sheila Kast
Kurt Schaefer
Horicon Bank
Union Bank & Trust
Company, Evansville
Next Session’s Dates:
Module 1 | Sept. 30 – Oct. 1, 2016
Module 2 | Nov. 18-19, 2016
Module 3 | Jan. 20-21, 2017
Module 4 | March 17-18, 2017
Michele Koch
Elyse Smithback
Northwestern Bank
Chippwa Falls
Oregon Community
Bank
Eric Moilien
Jennifer Sobotta
Citizens First Bank
Viroqua
Forward Financial Bank
Marshfield
Megan Pea
Katie Stolp
Horicon Bank
West Bend
Community State Bank
Union Grove
Classes are held at:
» UW-Madison Campus
Fluno Center
601 University Avenue
Madison, WI 53715
Join the next class of this essential program and help shape the future of Wisconsin’s banking industry.
The next session begins this fall. Each class is limited to 30 bankers, so register soon to reserve your place!
Find out more about the upcoming sessions and register online at www.wisbank.com/UWLeadership or
contact WBA’s Patty Rogers at 608/441-1209 or [email protected] with questions about the program.
22 MAY 2016
Security Guidance to Simplify Risk Management
FIPCO Endorsed Vendor SBS offers banks integrated security risk management
By Chad Knutson
By working with hundreds of
banks, government regulators,
university professors, the
National Center for Information Security, and conducting
sufficient internal research,
SBS has constructed a
proprietary process for building
and maintaining a strong
Information Security Program
that tailors to all types of
financial institutions. SBS has
a wide array of products that
meet the information security
needs of various financial
institutions. These products are
important to safeguard sensitive
customer information and to
ensure your institution has a
successful IT examination with
your regulators.
Originally developed as
an IT Risk Assessment Tool,
TRAC has evolved into a
™
www.fipco.com or
[email protected]
full-fledged Information
Security Software Suite! Say
goodbye to the era of working
long days on tedious projects,
studying regulation, and walking
down an unguided path. With
TRAC, a bank can easily
conduct numerous tasks, and
produce customized results
that align with regulation, best
practice, and, of course, your
institutions’ strategic goals.
TRAC is an integrated,
web-based cyber security
risk management software. It
simplifies the risk management
process and allows the user to
make more informed security
I didn’t know...
FIPCO
offered a loan origination and deposit
account opening suite
are very pleased that
“ We
we purchased the FIPCO
Compliance Concierge™ loan
documentation software. It
has performed very well and FIPCO has
worked with us to solve any questions or
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23
MAY 2016
Economic Development
Review of Federal Reserve’s 2015 Small Business Credit Survey
By Rich Diemer
Since 2010, a group of Federal
Reserve Banks have collaborated on an annual survey of
small business (less than 500
employees) assessing their
need for and access to financing. The results of the 2015
Small Business Credit Survey,
released March of 2016, are
based on the responses of
3,459 small businesses in the
fall of 2015. A good cross section of the country was represented in the survey sample
(26 states) including several
from the Midwest. While no
Wisconsin businesses were
included, the results do provide
significant insights and trends
to Wisconsin bankers.
The businesses surveyed
represent a broad group of
industries and ranged in number
of employees from 1-9 employees
(74%), 10-49 (21%) and 50+
(5%). In annual revenue size,
the businesses ranged from
“Micro” businesses of less than
$100,000 (21%), $100,000 to
$1 million (49%), $1 million to
$10 million (25%), to greater
than $10 million (5%). The age
of the businesses also varied
from “Start-up” businesses of 2
years or less to 11+ years.
The survey results point out
a number of interesting trends
in the areas of performance,
employment and business
challenges. On the 2015 performance side, 55% of the businesses
operated at a profit, 21% broke
even and 24% operated at
a loss. Those operating at a
loss included 52% of start-up
businesses compared to only
15% of firms over 10 years old.
For most businesses,
dealing with cash flow and
operating costs were the top
challenges. The exception was
“Growing” businesses, which
placed staffing considerations
as the top challenge ahead of
cash flow and operating costs.
“Micro” businesses were much
less concerned about staffing
Economic
Development
Rich Diemer
issues and much more concerned
about sales. Overall, only 9%
of the businesses surveyed
considered credit availability
as a top challenge, the second
lowest ranking. However,
for the “Growing”, “Startup”
and “Micro” businesses, this
challenge moved from seventh
place up into fourth.
The remainder of the
survey deals with the financing
needs of small businesses and
the process and response to
accessing it. In the prior year,
47% of the small businesses
surveyed applied for financing
with the top reasons for
doing so being: to expand
the business, fund operating
expenses and refinance. Of
the 53% that did not apply,
their reasons were sufficient
financing, debt adverse and
discouraged. It is worth noting
that “Micro” and “Start-up”
businesses were much more
likely to be discouraged.
Overall, the most common
loan sought was a Line of Credit
(57%), followed by Business
Loan (52%), SBA loan/line
of credit (21%), Commercial
mortgage (10%), and Merchant
cash advance (7%). “Micro”
and “Start-up” businesses were
much more likely to apply for
SBA financing and merchant
cash advances.
In relation to choosing
a source of credit, small
businesses by and large made
the decision based on their
existing relationship with the
lender and price. “Micro”
businesses were the exception.
They based their choice on
the perceived chance of being
funded and then price. Overall
the survey indicates that small
businesses most frequently
chose to finance with Small
Banks (52%), over Large Banks
(42%), Online lenders (20%)
and Credit Unions (9%).
However, small businesses
with revenues of less than
$1 million showed a marked
increase in the use of online
lenders because it appears
that they had more difficulty
obtaining financing from large
banks and to a lesser extent,
small banks.
For those small businesses
whose financing request was
approved, small banks had the
highest satisfaction score (75%),
followed by credit unions
(56%), large banks (51%) and
online lenders (15%). Reasons
for dissatisfaction with small
banks and large banks centered
on the difficult application
process and the time it took.
Dissatisfaction with online
lenders related to high
interest rates and unfavorable
repayment terms.
As you can see, this
report provides a fairly
comprehensive overview of
the financing needs of small
businesses and issues related
to accessing it. Studying the
report more fully has the
potential to provide additional
insights that will assist you
and your bank in attracting and
serving your small business
customers. Download the entire
2015 Small Business Credit
Survey at the New York Federal
Reserve Bank’s website: www.
newyorkfed.org/smallbusiness/
small-business-credit-surveyemployer-firms-2015.
Diemer is the economic development
loan officer at WBD Finance
Corporation in Madison and can
be reached at 920/966-1484.
Gordy’s County Market was able to expand into new
markets utilizing the long-term fixed-rate financing
structure of the SBA 504 loan through the help of their
local lending institution and WBD.
Your Small Business
Lending Partner
Working with a business that is expanding – acquiring
real estate, new construction or purchasing equipment?
Discover options from
Wisconsin’s Premier SBA 504 Lender.
For more information, contact us.
www.WBD.org
800.536.6799
24 MAY 2016
(continued from p.1)
lending to a specific industry,
it expands your market beyond
your footprint,” explained Sean
Payant, senior executive vice
president of consulting services
at Haberfeld Associates.
Investors Community
Bank, Manitowoc and
WaterStone Bank, Wauwatosa,
are two Wisconsin banks that
have succeeded in establishing
themselves within a niche
market, though in different
ways. Investors Community
Bank was founded in 1996 by
four agricultural bankers who
wanted to start an independent
institution focused on serving
their customers’ needs,
according to Executive Vice
President – Chief Banking
Officer Dave Coggins, who is
also Chair of the 2015-2016
WBA Agricultural Bankers
Committee. WaterStone Bank
began its successful foray into
the mortgage origination niche
in 2005 when CEO Douglas
Gordon says he identified
it as a way to expand the
institution’s then-meager fee
income and limited mortgage
product menu.
While the specific planning
and tactics surrounding a niche
strategy will vary from bank
to bank, most follow the same
three general steps: explore to
find the right niche, execute
an operational strategy, and
evaluate progress over time.
Explore
When incorporating a
niche market focus into the
bank’s strategic plan, bank
management must do due
diligence on each potential
target market. “The worst
thing any organization can do
is go after a niche they know
nothing about,” said Payant.
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The two key areas to focus
on are growth opportunity
and customer expectations.
“You have to evaluate and
find where the opportunities
are,” said Gordon. Coggins
advises determining whether
the bank has the capability to
differentiate itself as a player in
that niche market and whether
that distinction will matter to
those customers. “That first
step is absolutely critical,” said
Tweddle. “You need a strong
understanding of the demand
in the market. That will enable
a niche strategy to work.”
Tweddle also advises
researching the bank’s current
market for unmet demand.
“Listen to your branch
footprint and have a good
understanding of what’s going
on in the market,” he said.
“It has to pass the test of ‘is
there demand?’” Sometimes
that demand will reveal
niches within niches, which
will require further research.
For example, Gordon says
WaterStone made a conscious
effort to focus on purchase
business rather than refinance
because it tends to yield more
consistent earnings. “First, we
identified a strategy of how we
were going to grow,” he said.
That strategy guided the bank’s
decisions and helped focus its
investment in its niche.
Execute
Successful execution of
a niche targeting strategy
requires a full commitment
from bank leadership and a
willingness to invest in the
venture, first talent, and then
tools. “Dabbling isn’t a good
plan,” Coggins cautioned. “It
takes staffing, talent, expertise,
infrastructure, and more than
just a casual indication of
interest in that niche.” Ensuring
that the bank has the expertise
to serve a particular niche well
is just as essential to earning
customers’ trust and business
as having products that meet
their needs. “No matter what
(continued on p.25)
25
MAY 2016
path you go down, make sure
you have the talent to execute
and a great product to deliver,”
said Payant.
In addition to staffing,
banks need to invest in the
tools specific to that niche.
Whether those tools are
specialized technology or
support services, it should be
the focus of the entire bank,
rather than a single department.
“In any niche, it needs to be a
bank-wide focus,” said Gordon,
explaining that WaterStone’s
advantage over other mortgage
companies is their ability
to layer on support services
such as legal and compliance
expertise, technology and
marketing. It’s also important
to have support from the
bank’s primary regulator. “One
stakeholder you can’t leave
out is your regulator,” Tweddle
pointed out. “Before diving
into a niche strategy, you need
to have a strong conversation
with your regulator about what
you’re planning.”
Evaluate
Once a niche-focused
strategy has been implemented,
the final step toward success
is to put in place a system for
monitoring progress. While the
details will vary depending on
both the niche and the bank,
Payant says the first step is
clearly defining the strategy’s
start and end points. “You have
to have a baseline, first,” he
explained. “You also have to
be working your way toward
a specific goal.” Keep in mind
that if the institution is entering
a new market as part of its
niche strategy, that baseline
could very well be zero. “If
you’re starting from scratch,
you have to have realistic
metrics that recognize you’re
not going to do it overnight,”
said Coggins. “Don’t get
impatient if initial results are
disappointing. It’s a long process,
and it won’t come quickly.”
No matter what niche the
bank has pursued, it’s also
important to use industry
benchmarks to compare
the bank’s progress against
an appropriate peer group.
“Compare yourself to others
who have a similar strategy,”
Tweddle advised. “The
benchmarks don’t necessarily
change, but it becomes
crucial to make sure you’re
comparing yourself to the right
peers.” Another measure of
success is to gauge the bank’s
reputation with the niche
customers you’re targeting.
“Do the customers you’re
trying to reach recognize you
as a niche player?” Coggins
asked. “When you start to have
customers or prospects who
operate in that niche calling
you, then you know you’ve
made an impression.” It’s
also important to adapt your
tactics based on what you see
in your benchmarks, because
your competition certainly
will. “For a niche strategy
to work, you need continual
innovation,” said Gordon.
“You get copycats, so you
have to try to stay ahead.”
Ultimately, the success
of any venture into a nichefocused strategy depends
largely on diligent preparation
and research, commitment
of resources, and careful
monitoring. With those three
elements, a niche focus can
become a valuable addition
to any bank’s strategic
plan. “Niche markets can
complement what you’re
already doing, but you have
to be able to weather the
storms,” Payant explained.
“Niches should augment
what you’re doing with the
whole organization.”
Seitz is WBA communications
coordinator.
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26 MAY 2016
Ten New Associate Member Services Available
for WBA Member Banks
The WBA Board of Directors
has approved the following
service providers as new
WBA Associate Members.
Allied Solutions
www.alliedsolutions.net
Carmel, Ind.
Contact: John Garey
Tel: 262/278-3887
[email protected]
Allied Solutions is proud to
be one of the largest providers
of insurance, lending and
marketing products to financial
institutions in the country.
Creating solutions through
partnerships, their commitment
to their clients builds loyalty
and fuels success. With over
35 years of experience in the
financial service industry their
aim is to be the most customerfocused and respected provider
of insurance and related
products whose customized
solutions help clients grow
their business and more
effectively manage risk.
American Solutions
for Business
www.americanbus.com
Glenwood, Minn.
Contact: John Martin
Tel: 614/885-4464
[email protected]
American and Optimum
Companies are customerdriven and solution-oriented
and provide the best customer
service in the industry. If
you want a firm with a
true passion for serving
community banks, they are
a proven partner for digital
marketing solutions, printed
and promotional products,
customer growth programs
and bottom line results.
Bankers Healthcare Group,
LLC (BHG)
www.bhg-inc.com
New York
Contact: Meghan Crawford
Tel: 315/729-9029
For more information please
contact WBA’s Joe Schwartz
at 608/441-1220 or jschwartz@
wisbank.com or visit www.
wisbank.com.
[email protected]
Bankers Healthcare Group (BHG)
is a well-established, direct
lender that works with more
than 550 community banks
nationwide. Their commercial
loan program is specifically
tailored to provide licensed
medical professionals needed
financing while providing
community banks loan growth
and portfolio diversification.
Coastal Securities, Inc.
www.coastalsecurities.com
Houston
Contact: D. Ann Komar
Tel: 713/435-4330
[email protected]
Coastal Securities, Inc. is an
institutional fixed income
broker/dealer and is a
significant participant in the
underwriting of municipal
bonds and plays a central role
in the active secondary market
for government guaranteed
loans and SBA securities,
along with supporting analytics
and a proprietary CPR model
for SBA pools.
Enlighten Financial, LLC
www.enlightenfinancial.com
Green Bay, Wis.
Contact: Peter Nugent
Tel: 920/445-8881
Peter.nugent@enlighten
financial.com
Enlighten Financial works with
financial institutions to mitigate
risk and ensure regulatory
compliance by providing credit
administration consulting,
commercial underwriting and
loan review services. They
help financial institutions make
the best possible decisions for
strategic direction.
FIG Partners
www.figpartners.com
Chicago
Contact: Robert Kotecki Tel:
312/242-0434
[email protected]
FIG Partners is a full service
investment banking firm
providing financial products
and services to community
banks nationwide. FIG’s focus
is in five primary areas, namely
(i) Investment Banking, (ii)
Equity Capital Markets, (iii)
Equity Research, (iv) Sales and
Trading, and (v) Fixed Income.
Since 2009, FIG
has advised more capital
offerings for community banks
nationwide with assets below$1
Billion than any financial
advisor. In 2015, FIG ranked
#3 nationwide in mergers and
acquisitions for number of
transactions according to SNL
Securities.
Hoeft Builders
www.hoeftbuilders.com
Altoona, Wis.
Contact: Maureen Carlson
Tel: 715/833-1761
[email protected]
Hoeft Builders is an
exceptional, innovative and
experienced commercial
general contractor/construction
management firm. They
specialize in design/build,
construction management
and real estate development
projects. Their three principles
of honesty, loyalty and
integrity are the foundation of
the growing business.
Main Street, Inc.
www.mainstreetinc.com
Birmingham, Ala.
Contact: Lisa Beck
Tel: 205/380-4000
Main Street has provided
checks and accessories to
community banks nationwide
for almost 20 years. They
are a family-owned company
founded in simplicity and
sincerity. They offer products
at competitive prices and
provide a level of support
unmatched by any other
check-printing vendor. Each
of their customers receives a
personalized experience, from
customized check programs to
dedicated client service teams.
When you partner with Main
Street, they’ll work with you
to generate revenue for your
business and provide value to
those you serve.
The Oak Ridge Financial
Services Group, Inc.
www.oakridgefinancial.com
Golden Valley, Minn.
Contact: David Stieber
Tel: 763/923-2291
[email protected]
The Financial Institutions
Group (FIG) of Oak Ridge
Financial is a full service
investment banking firm with a
specialized community banking
practice. The investment
banking practice specializes
in providing capital raising
and merger and acquisition
advisory services to
community banks with less
than $1 billion in assets in the
upper Midwest.
Praesidio
www.praesidio.com
Seattle
Contact: Mary Kelly Rich
Tel: 206/512-8691
[email protected]
Praesidio is a big data
Cybersecurity Management
(CsM) company that bridges
the gap between IT Security
and Policy Governance,
solving the real-world
problems of breach detection,
remediation, and cybersecurity
insight, so that C-suite and
BODs can sleep at night
knowing they are secure.
WBA Associate membership
should not be construed as an
endorsement of the company’s
products or services by the WBA.
27
MAY 2016
GSB, WI School of Business Strengthen Partnership for Banking Education
$250,000 gift will help train next generation of banking leaders, promote banking research
For more
than 70
years, a
partnership
Johannes
between the
Professor James
Graduate
Johannes is also
a member of the
School of
faculty of the new
Banking
WBA School of
(GSB)
Bank Management.
and the
Wisconsin School of Business
at the University of WisconsinMadison has trained multiple
generations of leaders in
the banking industry.
On March 23, the GSB
announced the expansion
of that effort via a gift of
$250,000 to establish the
new Graduate School of
Banking/Prochnow Professorship of Banking at the
Wisconsin School of Business.
This development will support
vital research and help educate
the next generation of bankers.
“This gift to the Wisconsin
School of Business will
provide meaningful educational opportunities that allow
bankers to develop their
technical skills, grow their
leadership capabilities, and
take what they’ve learned back
to their banks and communities
where they make a positive
impact every day,” said Kirby
Davidson, president and
CEO of the Graduate School
of Banking in Madison.
The Wisconsin School
of Business has selected
long-time GSB faculty member
and UW Economics Professor
Jim Johannes to be the
very first appointment to the
Graduate School of Banking/
Prochnow Professorship.
Johannes has a 30-year
history of commitment to the
Wisconsin School of Business,
and has been an invaluable
resource for Wisconsin’s
banking industry during
that time. This Professorship
provides a tremendous
opportunity for additional
Financial Managers
SCHOOL
100%
visibility and credibility to the
Graduate School of Banking at
the University of Wisconsin in
the years ahead.
As this new Professorship
develops in the years ahead,
every time that Johannes –
a frequent contributor to
the Wisconsin Banker –
publishes an article, conducts
industry research or speaks
at an event, they will forever
be recognized, attributed
and introduced as the Graduate
School of Banking/Prochnow
Professor of Banking.
For more information,
please visit www.gsb.org or
www.bus.wisc.edu.
OF 2015 PARTICIPANTS SAID
THEY’D RECOMMEND THE
FINANCIAL MANAGERS SCHOOL
TO A FRIEND OR COLLEAGUE!
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colleagues
CFOs, controllers and financial managers who have
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budgeting and reporting activities will benefit from this indepth curriculum.
A program overview, curriculum description and online
registration form are available on the GSB web site at
www.gsb.org or the FMS web site at www.fmsinc.org/school.
On our sites you’ll also find a variety of programs available
to meet the educational needs of today’s banker.
OTHER GSB PROGRAMS INCLUDE:
Space is limited so we encourage you to register early!
Graduate School of Banking
Bank Technology Management School
Bank Technology Security School
Human Resource Management School
Bank Management Forums
GSB Online Seminar Series
28 MAY 2016
M&A Impact
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“There seems to be no size at
which you’ve exhausted the
economies of scale,” Johannes
said. However, with great size
comes great regulatory burden,
despite having more resources
to devote to compliance. “The
bigger you get, the more
scrutiny you get, but when
you’re small, you don’t have
all the people and resources
you need to manage it,” said
Reichert. Smaller doesn’t
always mean struggling, though.
“There are some banks in
Wisconsin who are under $100M
and are doing really, really
well because they’ve figured
out a good formula or niche,”
said Pete Wilder, attorney at
Godfrey & Kahn, S.C.
Jon Bruss, managing
principal and CEO of Fortress
Partners Capital Management,
anticipates that, as a result
of consolidation, banks
will become more efficient
in terms of dealing with
regulatory issues and managing
compliance. Bruss prefers
to measure the cost of
regulatory compliance by
analyzing the bank’s operating
efficiency (the ratio of
operating expenses to average
total assets) and comparing
it to pre-recession numbers.
“Ten years ago we didn’t
have all the new regulations,
so through that comparison
you can see what the cost of
regulation is,” he said. “That
will then tell you something
about how big the bank needs
to be in order to absorb that
fixed cost.”
While there is no
definitive “right size” for
banks, consolidation will
result in fewer, but larger
institutions – though experts
agree that community banks
will still survive, mostly
serving rural areas. “What
we’re going to end up with
in Wisconsin is fewer,
but bigger banks, offering
a larger panoply of services
Ad
(continued from p.1)
than currently available from
many community banks,”
Bruss predicted.
Succession Planning
Another major influence
on M&A activity in Wisconsin
is the current industry-wide
talent shortage and the
succession challenges it
creates. “Succession planning
has a significant influence on
M&A,” said Wilder. “One
reason M&A is accelerating
is because banks can’t find
successors for some of their
key executives.” This driver
is particularly prevalent in
rural areas. “A small, rural
bank may not want to sell, but
if they don’t have someone in
line who is passionate about
being the community bank
president it may be inevitable,”
said Reichert.
To address this challenge
while avoiding a sale, bank
management must invest in
recruiting and training future
leaders. “It requires a lot of
digging to find really top-shelf
managers to step up to the
plate, be competent and
competitive in the eyes of the
board and staff, and ultimately
take over the CEO’s job,”
said Bruss. “Sometimes
the digging is into another
bank’s staff.” Johannes has
a front-row seat to the spike
in demand for talented bank
employees. “I’ve never had
so many bankers show up at
the university trying to hire
our students,” he quipped.
“There aren’t enough people
coming up to take on the
C-suite jobs, so there’s a big
void in leadership.”
That void, and the fact
that some banks are turning
to M&A in order to fill it,
will result in the cost of talent
retention going up across the
industry. Many banks will
need to seek out homegrown
talent who have left the area
and entice them to return
home to lead the bank. “What
rural banks have to do is find
someone from the community
who left for college or career
and is looking to come home,”
said Wilder. “That, or find and
actively develop someone from
within.” In-demand positions
(such as compliance officer)
and bank management roles
will cost more to keep filled
with top talent.
Increasing Shareholder Value
The final key influence on
M&A activity is the difficulty
of increasing shareholder value
in a challenging environment.
“There are a lot of banks
who have shareholders who
want their money,” Reichert
explained. “Some of these
banks end up backing into a
sale, even if they’re making
money hand over fist, because
their shareholders want that
liquidity.” This most often
occurs when the number of
shares stakeholders wish to
cash out is greater than what
the bank can safely afford
to buy back.
Shareholders also pressure
for acquisitions, sometimes
indirectly. “Sometimes the only
way to continue generating
enough income to keep your
owners happy is to get bigger,
especially when margins
are falling,” said Johannes.
In today’s environment,
organic growth is difficult to
achieve and acquiring another
institution is a sound path to
growth. If the bank is in a
good position to become an
acquirer, the market is ripe.
“If your management team
has depth, and you have an
engaged board and access
to capital, the landscape has
never been this good,” said
Reichert. “You have a lot of
attractive opportunities.”
However, Wilder cautioned
against doing M&A for its
own sake. “For boards and
management, their job is
not to do bank M&A, it’s to
create shareholder value,”
he stressed. “There may be
better opportunities to create
shareholder value other than
M&A that are less risky
or expensive.” The impact
of increased consolidation
on shareholder value will
ultimately be determined by
each individual institution
and how well management
executes their strategic plan.
The primary goal will continue
to be increasing shareholder
value in a variety of ways,
with mergers simply being
a very popular method in
today’s environment. “M&A
is a solution, but it’s not the
only solution,” said Wilder.
“Focus on other ways to create
shareholder value too, so that
you can be opportunistic when
the situation is right.”
Seitz is WBA communications
coordinator.
29
MAY 2016
MyMazuma Begins Quest to Create Financial Education Portal
By Mike Semmann
Most consumers’ money-related
questions change throughout
their lifetimes. What would
it take to fix my credit? How
do car loans work? How can
I make my money last until
payday? Have I saved enough
for retirement? What doesn’t
change is their need for clear,
trustworthy resources to help
them answer those questions.
The difference between
knowing what to do and not
knowing can be, well, a lot of
money. But it’s not always easy
to learn this essential information. Many parents simply
“don’t talk about money.”
School only teaches the basics.
And, while there are abundant
resources on the web, it’s hard
to know whose advice to trust
and which guidance is right for
each individual.
Thankfully, many people
and organizations make Financial
Education a core part of their
mission, including many WBA
member banks. Consumers can
attend classes, online seminars,
or even in-person coaching... but
finding resources in a specific
location at the right time can be
challenging. MyMazuma.com
will bring valuable financial
education opportunities from
trusted organizations together
in one easy-to-navigate web
portal. Consumers will find
resources that are not only
relevant to their current stage of
life, but also suited to their level
of money knowledge. Trying to
make sense of information that’s
just too complicated is discouraging. And it’s frustrating to be
repeatedly taught the basics when
you’re ready to put what you
already know into practice. To
help consumers find the right
resources for them, we’ve defined
three stages of financial education for a wide range of financial
needs across the life cycle.
1. Financial Literacy is the
basic understanding of a
money-related concept.
Association
Update
Michael B.
Semmann
2. Financial Fluency is the
ability to comfortably apply
that concept in real life.
3. And with Financial Mastery
we can create value from
our knowledge.
MyMazuma connects
consumers with those who can
answer their money questions.
The easy-to-navigate portal also
allows consumers to map their
personal needs and search for
education offerings tailored to
the subject and sophistication
level they want. Descriptions,
peer reviews and ratings will
help them determine which
resources are right for their
needs. MyMazuma is the
premier online marketplace for
Financial Education. To learn
more or to become involved
visit MyMazuma.com.
MyMazuma.com is being
created by four design partners:
UW-La Crosse, NAIFA, School
Choice Wisconsin and the Wisconsin Bankers Foundation.
Contact Mike Semmann at
[email protected] for
more information.
Semmann is WBA executive vice
president and chief operations
officer, and also serves as
executive director of the
Wisconsin Bankers Foundation.
30 MAY 2016
WBA Perspective
Industry briefings for Wisconsin bankers
There’s certainly no shortage of information channels in this day and age. You
Rose Oswald Poels is WBA president and CEO
[email protected] | 608/441-1200
can find out news from around the globe in newspapers, online and even on your
Twitter: @RoseOswaldPoels
smartphone. If you don’t have time to sift through hundreds of articles and news bytes,
here’s what you need to know about what’s going on in the banking industry this month:
Member News
A Different Kind of Mobile Banking
The Wisconsin Department of Financial Institutions closed North Milwaukee State Bank,
Milwaukee and appointed the Federal Deposit
Insurance Corporation (FDIC) as receiver on
March 11. The FDIC announced that the bank’s
two locations will reopen as North Milwaukee
State Bank, a division of First-Citizens Bank & Trust Company.
Wisconsin’s banking community expresses its support to the affected employees of the North Milwaukee State Bank.
81-year-old Jim Wermuth has been making
house calls in western Dane County for
nearly two decades. A traveling banker with
Capitol Bank, Madison, he visits 13 retirement
MEMBER NEWS
communities each week to deliver financial
services to customers who are no longer able
to make it to a branch. For some seniors, Wermuth said, even
walking a block down the street to a bank branch can be a
challenge, so it’s important for him to go to them. Wermuth
opens accounts, performs transfers and withdrawals, serves as
a notary and cashes checks, in addition to lending an open ear
to customers who like a good chat. “A lot of it is routine banking,
but having someone to talk to is a lot of it, too,” he said. “I don’t
consider them customers; I consider them friends.” This story,
which originally appeared in the Verona Press, was submitted
by a WBA member.
NE
W
S
Industry News
North Milwaukee State Bank Closed
Legislative Advocacy
House Members Ask CFPB for Exemptions
LE
G
AD IS
VO LA
CA TIV
CY E
A bipartisan group of 329 House members
wrote to the CFPB last week, urging the
agency to exempt community banks and credit
unions from certain rulemakings. The letter
cited a provision of the Dodd-Frank Act allowing
the bureau to adapt regulations by exempting
“any class” of entity from its rulemakings. Wisconsin Congressmen
Sean Duffy, Glenn Grothman, Ron Kind, Mark Pocan, Reid
Ribble and James Sensenbrenner, Jr. signed the letter.
For more industry updates like these,
sign up to receive the WBA Executive Letter
ePublication by visiting www.wisbank.com/subscriptions.
Protect Your Commercial Accounts from Corporate Takeovers
Insurance solution
for Wisconsin banks
Is your bank fully protected
MIDWEST BANKERS
from corporate account
Insurance Services
takeovers? Through Midwest
Bankers Insurance Services
4Contact MBIS’ Jeff Otteson,
[email protected].
(MBIS), a joint venture owned
by the WBA and the Minnesota
Bankers Association, Wisconsin
Most commercial bank
banks can now protect themcustomers do not feel that
selves and their commercial
their bank communicates
customers through AmTrust’s
“best practices” to protect
new EFT Guard insurance
themselves from a computer
product. EFT Guard protects a
network breach. This
financial institution’s business
coverage will help the bank
banking customers for losses
educate its customers about
stemming from Corporate
the need to secure their own
Account Takeover, including
systems and the importance
fraudulent ACH and wire transfers of following agreed upon
perpetrated through the
security measures. EFT
customer’s system and outside
Guard will ultimately prevent
of the care, custody and control disputes (and ultimately
of the financial institution.
costly litigation between
the bank and its customer
by providing coverage to
reimburse the customer
for the loss).
Whether it’s incorporating
the latest technology to be
commercially reasonable,
educating customers on the
cyber perils that exist in
today’s world or purchasing
insurance, a bank should
frequently evaluate how they
protect themselves from
corporate account takeovers.
A well-rounded approach will
help a commercial customer
mitigate loss, minimize
disputes as well as preserving
and retaining important
customer relationships.
For more information on
MBIS and EFT Guard, contact
MBIS’ Jeff Otteson, jeffo@
mbisllc.com.
KBS Leaving
the Marketplace
Kansas Bankers Surety
(KBS) has announced
that after 100+ years
of insuring banks, it
will cease to sell bank
insurance products. If your
bank is impacted by this
departure, we invite you
to consider MBIS. We
specialize in designing
and securing programs
specifically for community
banks in the Midwest.
During this transition, be
sure to first contact MBIS’
Jeff Otteson, jeffo@
mbisllc.com to see how we
can help. WBA would
welcome the opportunity to
earn your bank’s business.
31
MAY 2016
Bankers Marketplace
H E L P WA N T E D
Loan Officer
Bank of Alma is a $218 million bank with 4
locations along the Mississippi River (Alma,
Wis., Nelson, Wis., Pepin, Wis., and Wabasha,
Minn.). We are currently searching for a wellrounded loan officer to join our team at our
Alma office. The successful applicant should
be an experienced lender with knowledge
in Consumer, Ag and Commercial Lending.
He/She will have strong personal computer
skills, excellent communication skills, the
ability to develop new business relationships,
demonstrate credit judgment, credit analysis
skills, a proven track record of financial
performance and success, and looking to make
the area their home. Please email your resume
to: [email protected].
Mortgage Underwriter
Middleton Community Bank is seeking to hire
full time Mortgage Underwriter. This position is
responsible for maintaining the knowledge and
training necessary to underwrite mortgage
loans per secondary market guidelines. The
documentation and compliance responsibility
will be shared with the Lenders to ensure that
files are complete and thorough. The position
requires a high level of accuracy,
confidentiality, and flexibility. The employee
will be relied upon to provide excellence
in quality customer service to all clients, both
internal and external. Require Bachelor of
Business Degree, or equivalent loan
underwriting experience. FHA, USDA,
WHEDA and VA experience is preferred.
To apply, please email resume to khoman@
middletonbank.com. EOE
Chief Financial Officer
Fidelity National Bank, an $83 million,
privately owned community bank, is seeking
an experienced individual to fulfill the role of
Chief Financial Officer. As an integral member
of top management, this individual will be
responsible for the day-to-day operations and
oversight of IT, Audit, Accounting, Investments
and Operations. The successful candidate will
possess a bachelor’s degree in a related field
and have a minimum of 5 years of financial
management experience, along with above
average communication skills, demonstrated
knowledge of banking operations and
computer network. Knowledge of the Jack
Henry 20/20 operating system is highly
desirable, but not required. Please forward
cover letter and resume to: Fidelity National
Bank, Attn: Human Resource Department,
P.O. Box 359, Medford, WI 54451 or email
[email protected]. EOE
Ag Loan Officer
Start your new career adventure in our 100th
year! Bank of Prairie du Sac has consistently
received a 5 star rating from Bauer Financial.
Our community bank is searching for an
Ag lender with 5 years of experience and a
background in agriculture. You will establish
relationships with an existing $32MM ag
portfolio and develop new ones. We expect
you to be an active and visible member
of our communities in the area. A strong
and proven background showing drive and
initiative demonstrating work ethic and
ability to work with a team will ensure our
consideration. Bank of Prairie du Sac has
$390 million in assets and delivers an array of
financial products and services. Our culture
embraces teamwork, quality service, integrity,
respect and professionalism. Apply online at
http://www.bankpds.com/home/aboutus/
employment. Bank of Prairie du Sac, P.O.
Box 130, Prairie du Sac, WI 53578. EOE
Loan Operations Supervisor
First State Bank, New London (www.
bankfirststate.com) is seeking a Loan
Operations Supervisor. With the direction of
the Chief Credit Officer, the Loan Operations
Supervisor is responsible for performing
and overseeing the full range of duties
pertaining to the processing of commercial,
mortgage, and installment loans. The position
is accountable for bank adherence to legal
Want to
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Visit
Visit www.wisbank.com
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to view
view aa
full listing
listing of
of job
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postings or
or for
for more
more
full
information
information on
on placing
placing or
or responding
responding
to an
an ad.
ad.
to
and regulatory compliance, providing timely
and accurate loan reporting, balancing,
disbursing, processing and customer service to
support all loan activity to ensure department
meets organizational goals. Qualifications:
Seven years of bank consumer, mortgage,
and commercial loan processing/servicing
experience including supervision. An
associates’ degree in a related field such as
accounting or bank credit administration.
Additional training in mortgage and installment
loan documentation and compliance. Strong
verbal and written communication skills.
Demonstrated ability to use discretion, tact
and diplomacy when dealing with customers
and co-workers. Knowledge of software
used to process loan applications. Thorough
knowledge and understanding of regulatory
and compliance issues affecting all lending
areas. Send cover letter and resume to: Human
Resources, First State Bank, 113. W. North
Water St., P.O. Box 268, New London, WI
54961 or [email protected]. Equal
Opportunity Employer M/F/D/V
Oregon Community Bank is seeking to
fill two positions:
Residential Mortgage Construction
Loan Manager
Solicits and maintains loan relationships with
real estate builders, realtors, and customers
throughout Dane County Wisconsin for 1-4
family residential owner-occupied financing
needs. Conducts business calls on builders and
realtors individually and/or with Commercial
Lending, Business Development and Branch
staff in order to generate new loan and
deposit business relationships for the bank.
4-6 years of residential construction lending
experience is required. This position works
directly with the customer only. Works with
local title companies on inspection of 1-4
family residential owner-occupied homes
being financed by the bank. Reviews loan
draw requests with customers and approves
disbursement of construction funds. Works
with all other department staff to ensure that
construction loan files are current with all
required financial information, real estate
tax information, insurance policies or other
project-specific documentation.
Mortgage Loan Officer (MLO)
Proactively solicits new residential mortgage
business and sells Oregon Community Bank’s
mortgage products to meet established loan
quality and production goals. In this ongoing sales role, the Mortgage Loan Officer
continually identifies, develops and maintains
a quality network of business relationships that
serves as a recurring source of referrals for new
mortgage lending opportunities. A Mortgage
Loan Officer’s network may consist of Real
Estate professionals, Builders, professional and
personal contact, as well as other valuable
referral sources, and is enhanced by the
Mortgage Loan Officer’s regular participation
in business-related development opportunities,
community efforts to promote homeownership
and professional organizations. The MLO
responds to customer inquiries and referrals
that are generated from both their own
contacts and from other Oregon Community
Bank business channels. The MLO conducts
interviews with prospective borrowers in order
to analyze financial and credit data, determine
customer financing objectives, advise
customers of product/pricing policies and
guidelines, and gather any additional required
information. The MLO ensures exceptional
customer service by maintaining thorough
knowledge of lending programs, policies,
procedures and regulatory requirements,
demonstrating a commitment to professional
ethics, complying with all Federal and State
compliance policies and adhering to HMDA
requirements.
Applicants seeking a challenging, rewarding
position while providing excellent customer
service should submit resume and cover letter
by email to: Roger Erickson, rerickson@
oregoncommunitybank.com.
Personal Banker/Consumer Lender
High performing and fast growing community
bank is seeking motivated, sales and service
oriented personal banker. Experience opening
all types of deposit accounts required as well
as experience originating consumer loans.
Excellent benefit package. Send resume to:
[email protected] or
Oregon Community Bank, 733 N. Main St.,
Oregon WI 53575.
Citizens State Bank of Loyal is seeking
to fill two positions:
Chief Operations/IT Officer
The Bank is looking for a Chief Operations/
IT Officer to join our team at our Loyal, Wis.
location. This individual will be responsible
for the development, reliability, integrity
and security of Bank systems, technology
network and branch infrastructure. As a
member of senior management, work to assist
other senior managers in the development
and execution of the bank’s strategic plan.
Ensures all bank and regulatory policies and
procedures are followed consistently. Degree
in business, finance, IT or other related field
along with 10-15 years of bank operations
experience required. Advanced banking
education preferred.
Retail Banking Officer/Branch Manager
The Bank is looking for a Retail Banking
Officer/Branch Manager to join our team at
our Marshfield, Wis. location. This individual
will be responsible for overseeing the retail
banking services, delivery and marketing at
all CSB locations. This includes mortgage
lending, consumer lending, deposit growth
and the coordination of goal setting, tracking
and training associated with consumer loans,
deposits and related fee income. Marshfield
Branch manager duties including operations,
lending, product sales and other management
activities. Ensures all bank and regulatory
policies and procedures are followed
consistently. 7-10 years of retail and mortgage
banking experience required. Advanced
banking or finance education preferred.
Please email your cover letter and resume to
Jenni Brock at [email protected] or mail it
to Citizens State Bank of Loyal, c/o Jenni
Brock P.O. Box 218, Loyal, WI 5444. Equal
Opportunity Employers, Member FDIC
Staff Change? Address Change? Let WBA Know
Getting information to the right person quickly is critical in
these challenging times. Has there been a personnel change at
your bank, or are WBA’s mailings targeted to the wrong staff?
Send your address corrections and/or additions to our
database administrator, WBA’s Assistant Director – IT Randy
Molepske, at 608/441-1212 or [email protected].
W ISC ONSIN
BANK ER
Association Officers:
Peter J. Prickett (Chair), President/CEO, First National Bank – Fox Valley, Neenah
Cynthia Erdman (Chair-Elect), President, Partnership Bank, Tomah
Frederick J. Siemers (Vice Chair), President, River Cities Bank, Wisconsin Rapids
Robert J. Cera (Past Chair), President and CEO, Baylake Bank, Sturgeon Bay
Jerry O’Connor (Past Chair), President/CEO, The National Bank of Waupun
Rose Oswald Poels, President/CEO, Wisconsin Bankers Association, Madison
Association Board of Directors:
Paul C. Adamski, President/CEO
Stan Leedle, Executive Vice President
The Pineries Bank, Stevens Point
Choice Bank, Oshkosh
Mary A. Bomkamp, President/CEO
Douglas Martin, President/CEO
Highland State Bank
Livingston State Bank
Dennis P. Doyle, President/CEO
James F. Mayo, President/CEO
Great Midwest Bank, S.S.B., Brookfield
Security Financial Bank, Durand
John Drace, President/CEO
Bill McDonald, CEO
Jackson County Bank, Black River Falls
Greenwoods State Bank, Lake Mills
Joe Fazio, Chairman, CEO, Co-Founder
Charles D. Schmalz, President/CEO
Commerce State Bank, West Bend
East Wisconsin Savings Bank, Kaukauna
Daniel Frazier, President – Madison Market
David L. Schuelke, President/CEO
US Bank, Madison
Spring Bank, Brookfield
Thomas L. Jensen, President/CEO
James L. Tubbs, President/CEO
First National Bank of Berlin
State Bank of Cross Plains
Paul D. Kohler, President and CEO
David P. Werner, President/CEO
Charter Bank, Eau Claire
Park Bank, Milwaukee
Wisconsin Banker is published by Wisconsin Bankers Association, 4721 South Biltmore Lane,
Madison, WI 53718; Telephone: 608/441-1200; Fax: 608/661-9381; www.wisbank.com.
Eric Skrum, Editor
Joe Schwartz, Advertising Director
(608) 441-1220
[email protected]
To report a change of address, email us at [email protected].
The publication of advertisements does not necessarily represent endorsement of those products
or services by the Wisconsin Bankers Association. The editor reserves the right to reject any
advertising or editorial copy deemed unsuitable for publication for any reason. Copy deadline is
eight business days before publication date.
Disclaimer: With the exception of official announcements, the Wisconsin Bankers Association
disclaims all responsibility for opinions expressed and statements made in printed articles and
advertisements in the Wisconsin Banker. This publication is designed to provide accurate and
authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting or other professional
services. If legal or accounting advice or expert assistance is required, the services of a qualified
professional should be sought.
32 MAY 2016
Always your partner, never your competitor.™
Offer a leasing solution
that compliments your
customer relationships.
Don’t watch your clients go elsewhere for their leasing needs.
Bankers’ Bank can aid you in offering a lease product uniquely
designed to enhance the community-bank customer relationship.
We offer complete backroom support and marketing assistance,
while you gain earning assets or fee income, with no residual
risk. Capturing lease business can be easy. Contact Mike LaSalle
or your Bankers’ Bank correspondent officer to learn more.
Madison, WI • Des Moines, IA • Indianapolis, IN • Springfield, IL
Matt Kajewski
715.271.0937
Jeff Niesen
608.577.8081
Mike LaSalle
President & Managing Director
BB Community Leasing Services, Inc.
a Bankers’ Bank subsidiary
608-829-5533
[email protected]
www.BankersBankUSA.com
Rob Shetter
815.441.2656
Member FDIC • Equal Housing Lender
Brad Stamper
608.829.5540

Reshaping the Industry - Wisconsin Bankers Association

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