Volume 13, No. 5 September/October 2010

Inside: Bell Takes the Wheel of CBW for 2010-2011 ...... 4 Toby Steivang Named Community Banker of the Year ...... 8 CBW Names New Offi cers, Directors ...... 8 Community Bankers Receive Lifetime Service Awards ...... 12 Th ornberry Creek at Oneida: Conference Begins with Golf Outing ...... 18 Photos Record 2010 CBW Management Conference and Expo ...... 19 We see debit in everything we do – because it’s all we do. We see opportunities where others don’t. Let us help you build your debit business through superior customer service and a collaborative approach that utilizes training, education and a variety of analytical A Discover Financial Services Company tools and services. Everything you need to make the most of your debit program from one source. It’s our passion, profi t from it. pulsenetwork.com

©2010 PULSE Inside… CBW Is Your Organization Bell Takes the Wheel of CBW for 2010-2011 4 Steven Bell, CBW Chairman, and President and CEO, 8 Toby Steivang Named Community Banker of the Year Community State Bank, Union Grove 8 CBW Names New Offi cers, Directors n this era of tweets and texts, e-mail and voice mail, 12 Community Bankers Receive Lifetime Service Awards face-to-face communications matter more than ever. I enjoyed meeting many of you at CBW’s 2010 Management 18 Th ornberry Creek at Oneida: Conference Begins with I Conference and Expo and look forward to future exchanges Golf Outing as I begin this year as your chairman. 19 Photos Record 2010 CBW Management Conference I am honored to serve and grateful for your support, espe- and Expo cially that of past chairman Russ Kuehn. I am also happy to report that he is enjoying improved health since a heart-related issue surfaced during the conference (see p. 5). You will fi nd many reports in this issue Published by Community Bankers of Wisconsin from our 2010 conference in Green Bay. As through Client Communications always, this event proved a highlight of our Editor and Publisher: Doris Green community banking year, with memorable Contributor: Mary Lou Santovec connections made, insightful presenta- Art Director: Lisa Imhoff , Grey Horse Studio tions, and opportunities for fun. (Ask any community banker Editorial or subscriptions: e-mail Doris Green at [email protected] or fax (608) 583-2084 who was there about the golf outing, the Packer Hall of Fame Advertising: Penny Heberlein, CBW vice president, tour, the banquet, and, of course, the exhibitors’ balloon drop.) membership services, at (608)833-4229 or contact Doris Green Th en, make plans to attend next year, when our signature event COMMUNITY BANKERS OF WISCONSIN moves to Lake Geneva. BOARD OF DIRECTORS During the year ahead, I hope that all CBW members will 2010-2011 CHAIRMAN: Steve Bell, Community State Bank, Union Grove feel a greater stake in our association and have a stronger sense CHAIRMAN ELECT: James Tubbs, State Bank of Cross Plains VICE CHAIRMAN: Paul Hoff mann, Monona State Bank of ownership in its future. During recent turbulent times, PAST CHAIRMAN: Russ Kuehn, Th e First National Bank of Berlin more people have learned the diff erence between Wall Street SECRETARY/TREASURER: Mary Jo Ceniti, banks and Main Street banks. Yet, there is no time to rest; we Farmers Savings Bank, Mineral Point must continue to advocate for our community banks as recent ICBA DIRECTOR: Rick Busch, Royal Bank, Gays Mills legislation leads to regulatory changes. ICBA DIRECTOR: Butch Pomeroy, International Bank of Amherst Jon Mentink, First Bank of Baldwin I have two goals for our association this year: Tom Armstrong, Th e First National Bank of Park Falls Th at all members understand that CBW is your organization Steve Zeman, Union State Bank, West Salem — it’s not about me, the board, or Daryll [Lund]. It’s about you. John Slatky, Bank of Luxemburg We need your guidance and involvement on a day-to-day basis. Stan Leedle, Choice Bank, Oshkosh And with national mid-term elections just around the Jerry O’Connor, Th e National Bank of Waupun Gregory Kolton, Foundations Bank, Pewaukee corner, we have to be more politically active — we have to John Dorshorst, Gratiot State Bank understand our issues and get these issues out to the legislators Sigurd Bringe, Bank of Deerfi eld in Wisconsin and out nationally through ICBA. Fred Siemers, River Cities Bank, Wisconsin Rapids Don’t wait to be asked — and when you are asked, step Randolph Malueg, Heritage Bank, Spencer forward to advocate for community banking at all levels. We CBW STAFF make a great diff erence in the economic health and quality of President and CEO: Daryll Lund Executive Vice President: Rick McGuigan life in our communities, and that diff erence needs to be noted Senior Vice President (CBW Financial Services): Kevin Christians far and wide. Senior Vice President (CBW Financial Services): Phil Hoover Vice President (Membership Services): Penny Heberlein Program Administrator: Sandra Gruber Account Manager and Legislative Assistant: Shannon Schlueter Account Manager: Jami Erickson

Community Bankers of Wisconsin 455 County Road M, Ste. 101 On our cover... Steve Bell, new Community Bank- Madison, WI 53719 ers of Wisconsin chairman, is president and CEO of Com- Ph: (608) 833-4229 Fax: (608) 833-8114 E-mail: [email protected] munity State Bank, Union Grove, with nine offi ces in Racine and Kenosha counties. Th ese headquarters offi ce photos were Wisconsin Community Banking News is provided at no cost to CBW members. Additional copies may be purchased at the following rates: Member banks, $25 provided by LaMacchia Group, LLC, a Milwaukee consulting each annual subscription. Nonmember banks may also purchase subscriptions; and design/build fi rm. cost: $75. To order, e-mail Doris Green, [email protected].

September/October 2010 Wisconsin Community Banking News 3 Bell Takes the Wheel of CBW for 2010-2011

Mary Lou Santovec wouldn’t be where I am today here’s no question that without her wisdom, guid- community bankers ance, and counseling. She has Tcontribute many posi- always been very patient with tive benefi ts to their communi- my desire to serve the needs of ties. But hero status is reserved our local communities.” for only a few. Bell and his wife have two Although he would vehe- adult children and an eight- mently disagree, Steve Bell is year-old black miniature one for whom the title “hero” is Schnauzer named Libby, who appropriate. On Sept. 21, 1985, helps fi ll the empty nest. Son Bell, a vice president at Com- Kirk works for a masonry munity State Bank in Union company and lives in Fond du Grove, was closing a loan in Lac with his wife, Sara, a nurse the bank’s Rochester branch educator at Th eda Clark Hos- when a robber with a gun pital, and their two children. walked in, demanded money, New Community Bankers of Wisconsin Chairman Steve Bell, presi- Daughter, Jorden, a neurology and ordered the then branch dent and CEO, Community State Bank, Union Grove, is fl anked by nurse at St. Luke’s Hospital in manager, Jane Sundstrom, to Jim Tubbs (left ), State Bank of Cross Plains executive vice president Milwaukee, lives in Brookfi eld come with him as a hostage. and CBW chairman-elect, and Paul Hoff man (right), Monona with her husband, Thad, a Bell volunteered to State Bank president and CEO and CBW vice chairman. banker with Associated Bank. exchange places with Sund- Before moving to their cur- strom and left with the robber in Sund- got in on the ground fl oor as a teller in rent house nine years ago, Bell was an strom’s car. Aft er seeing a deputy sheriff the new bank. avid train enthusiast. He has a Lionel drive by, the robber got spooked and “I was hired on the spot,” Bell recalled. “O” scale layout that was dismantled for ordered Bell, who was driving, to turn “I earned $354 per month. I had no con- the move and will eventually be rein- onto a rural road and get out. Not think- cept of whether that amount of money stalled. His reading material includes ing twice, Bell jumped out of the car was good or bad, but it was a start in the train-focused hobby magazines. and fl agged down a passing motorist. banking industry.” Bell oft en seems to In their free time, Bell and his wife Although the robber was never located, look at life with a twinkle in his eye. Th e like to tour the Wisconsin countryside. Bell survived unscathed. new chairman of the Community Bank- “I’ve had a couple of Harleys over the Right Place, Right Time ers of Wisconsin frequently employs years that I enjoyed greatly. Patti liked His success in banking seemed almost humor to cope with the ups and downs them but they made her a little nervous,” destined, given his relatives’ involve- of life and the industry. so he traded his last motorcycle for a ment in the industry and his interest Bell joined Community State Bank as 2008 red Corvette convertible. Letting in math and fi nance. Graduating from a vice president on Nov. 1, 1982 when a little of that trademark humor slip out, Harvard High School in Harvard, Ill., former CBW chairman and Commu- he said he hated to see the motorcycles Bell worked in a factory before attending nity State Bank president Dave Ballweg go, but “she’s [oft en] reminded me that Northern Illinois University to major in hired him to start a branch in the Racine a happy wife is a happy life.” With only fi nance. Wife Patti worked as a banker at County community of Rochester. Th e 2,500 miles on it, the Corvette has yet First State Bank in Harvard during the existing building was just a shell and to spend a night outside their garage. early years of their marriage, and Bell’s Bell had the opportunity to oversee the The couple is also in the process mother worked at a savings and loan. remodeling eff orts. of acquiring a condo in Fish Creek, After graduating from NIU, Bell He moved to the Union Grove offi ce which will put them closer to their took graduate courses in fi nance at both and later became president in April 2001 grandchildren. Rockford College and the University of upon Ballweg’s retirement. Under Bell’s Unlimited Energy Wisconsin-Whitewater. leadership, the 107-year-old bank cur- A man of seemingly unlimited Getting his fi rst banking job was a rently has $270 million in assets, $225 energy, his list of volunteer commit- case of being in the right place at the million in deposits, and nine locations. ments would make a younger person right time. His uncle, who was publisher Patti and Steve Bell were high school tired. Bell helped organize a Chamber of the local paper, the Harvard Herald, sweethearts and have been married 39 organization for the village of Waterford had done a story on a de novo bank years. “She got the best of me and the and then took on the role as Chamber opening in town. Th e uncle connected worst of me,” Bell quipped, referring president. He’s been on the fi nance, per- his nephew with the banker and Bell to Patti as his greatest cheerleader. “I continued on page 6

4 Wisconsin Community Banking News September/October 2010 Conference Underscores Importance of CBW Family hen a river fl oods, when an eco- renewed that respect and admira- Wnomic bubble bursts, or when tion for each and every one of you Daryll Lund, CAE, any other crisis occurs, Wisconsin com- in our CBW family. Yes, CBW is a CBW President munity bankers always respond like the family, a hardworking, caring, and and CEO caring citizens and friends they, in fact, energetic family that works together are. CBW members who attended the for the common cause of providing 2010 Management Confer- for our customers, ence and Expo in Green our employees, our Bay were surprised by a cri- shareholders, our sis on a very personal level. communities, and On Wednesday, September our country. 15, Russ Kuehn, outgo- I sincerely thank ing CBW chairman, was the entire CBW staff CBW family, at the banquet. Sue admitted to a local hospital for their support also thanks all of you for your loving for a heart-related problem. and caring, espe- and caring support of her during His community banking cially considering this diffi cult time. colleagues responded with such a short notice Th ank you and God bless you all. —Russ an outpouring of support Steve Bell, 2010-2011 CBW and difficult cir- and assistance. Chairman, presents immediate cumstances. I also Russ’ experience reminds us why we Th e experience served past president’s plaque and pin thank Steve Bell can be proud to be community bank- as a reminder that commu- to Sue Kuehn, wife of 2009- for stepping in and ers. Th e diff erences between Main Street nity bankers are members 2010 Chairman Russ Kuehn. doing such a great banks and Wall Street banks extend of a very strong and com- job on such little beyond business policies and the bot- passionate family. When a customer has notice. You can all see why he will tom line. As community bankers, we are a problem — a health issue has surfaced, be a great CBW chairman this year. part of a thoughtful family of colleagues a layoff has occurred, or a foreclosure Finally, I want to thank my wife, who listen, respond to others’ needs, and seems imminent, community bankers Sue, for her courage during this value relationships. listen carefully, step in, and help out. extreme experience and for her Our employees and customers rou- participation with all of you, our tinely enter runs/walks to benefi t health research, organize food drives, and sup- port all manner of community events. When a community banking col- Customers Enjoy Expanded league experiences a bump in the road, Surcharge-Free Network our response is equally generous and helpful. AND Easy Ways to Locate Russ Kuehn, now on the road back to Participating ATMs health, off ers these comments: CBW’s ATM Access network has I thank everyone for their concern partnered with the In Balance® Alliance and their prayers and let you know off ered by the Independent Community that I am on the path to recovery. I Bankers of Minnesota, to expand surcharge-free access. Cardholders was so looking forward to spending traveling across the Wisconsin- a special day with everyone at the Minnesota border can now freely conference and am so sorry that withdraw money at 900 ATMs. I missed it, but, I look forward to Cardholders driving anywhere in the being involved yet in 2011 as past two states can fi nd the closest surcharge- chair and will pledge my total sup- free ATMs by connecting to the Internet port to the healing of community via their Blackberry® or other mobile banks and bankers. device. Cardholders can also visit the I have remained faithful to com- CBW website (www.communitybankers. munity banking for 40 years and the org) to search for participating ATMs by city or participating community bank. main reason is that I have always To learn more, call CBW at felt a kinship, a family presence, a 608-833-4229. genuine caring in community bank- ers. Th is experience of mine has

September/October 2010 Wisconsin Community Banking News 5 sonnel, and planning committees for the village, as well as on the board for Waterford Union High School. He was a trustee for St. Th omas Aquinas Church and served as a member of its fi nance committee and parish council. He currently serves as the sexton for the church’s cemetery. Bell has been a rescue squad member in Illinois and a Little League coach both in Illinois and in Waterford. And that doesn’t even count the numerous scholarship committees he serves on. Young & Associates, Inc. “Th ere were times that depending upon the time of the year, I was gone four nights a week,” he said. “It’s hard to say ‘no’ when you’re asked.” His wife once asked him if there was a reason he was gone so much. “She’s been very gracious and Liquidity Planning understanding of my commitment to the community.” Besides taking over the chairmanship of the Community Bankers of Wisconsin, Bell is currently vice president of the Strategic Planning Racine County Economic Development Corporation. A vocal proponent for community banks, Bell doesn’t mince words about the Wall Street crisis and the resulting legislation. Regulatory Assistance “Community banks are about helping people and knowing you’ve helped them and having them appreciate it. Th e unfor- tunate thing is that from the public’s perception, a bank is a Stock Valuations bank is a bank.” On the potential of the Dodd Frank bill to solve the under- lying issues that caused the crisis, Bell has his doubts. “Th e Capital Markets bills to fi x the problems will result in banking being much more diffi cult, time-consuming, and costly. I don’t believe it Expansion & has addressed the underlying causes of, or the prevention of, another meltdown. De Novo Bank Charters “It’s unfortunate that we in community banks are paying the piper for the sins of mortgage brokers and others in our industry. We’re being swept with the same broom as everyone Internal Audit else in the industry and it’s grossly unfair.” Th ere’s no doubt that community banks were hit hard by the crisis. Speaking for his bank Bell said, “A week doesn’t go by Information Technology that we don’t get a bankruptcy, foreclosure, or divorce notice. And we’re a conservative bank.” Recruitment & ‘Too Highly Principled’ Th at conservative attitude has earned him some critics. “I Human Resources was told I was too highly principled,” he said. “But we’re in an industry that’s highly regulated. And I’m responsible for Lending & Loan Review over 100 employees. I owe it to these people to put my best foot forward.” Taking over as chairman of the Community Bankers of Compliance Wisconsin is his way of giving back to the industry. “I come from an environment where Dave Ballweg was CBW presi- dent and chairman of ICBA. He never forced it on me. But Policy Development I got a call from the outgoing chairman to consider going through the chair positions. Aft er careful consideration and encouragement from Patti and our Board of Directors, I felt privileged to be considered to represent community bankers throughout Wisconsin.” Th e humble Bell seems awed by that request. “I never consid- 800.525.9775 ered myself of the ilk to become chairman.” Yet there’s no doubt younginc.com that he has much experience to share and expertise to give. For Bell and his wife, retirement is still a few years away. “From a mental perspective, I don’t feel 58 but my body reminds Bankers Working For Bankers me I am. It’s a challenge to stay young.” A few more trips in that red Corvette should keep that spring in his step.

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September/October 2010 Wisconsin Community Banking News 7 ister with his church, and a founding director of the local high Toby Steivang Named school foundation board. He has served on the board of a local Community Banker of the Year organization that fi nds employment for individuals with dis- Toby Steivang, chairman of Walworth State Bank, was abilities and has supported a local ministry for individuals with named Community Banker of the Year by the Community learning disabilities, as well as many other charitable causes. Bankers of Wisconsin at the trade association’s annual meet- For many years Steivang has been a member of the Village ing in Green Bay on September 16. of Walworth Business and Industrial Corporation where he “I’m overwhelmed,” Steivang said, when accepting the strengthened local economic development. award from 2009 Community Banker of the Year, Carl Axness, chairman, Union Bank of Blair. “I never envisioned this in my life. I’m totally grateful for the honor.” Steivang also gave credit to both staff and customers for the success of Walworth State Bank. A lifelong member of Wal- worth, Steivang has success- fully led this bank for decades. Its success is seen in a 34-year, Standing, from left : Tom Armstrong, Th e First National Bank of annual compound growth rate Park Falls; Fred Siemers, River Cities Bank, Wisconsin Rapids; of 7.6 percent. When Steivang Toby Steivang (left ), chair- Tom Reed, Headwaters State Bank, Land O’ Lakes; Randy Mal- became president of the bank, man of Walworth State Bank, ueg, Heritage Bank, Spencer; Steve Zeman, Union State Bank deposits totaled $15.5 million. accepts the 2010 Community of West Salem; Craig O’ Leary, Farmers & Merchants Bank, Today, they are almost $200 Banker of the Year Award from Orfordville; Sigurd Bringe, Bank of Deerfi eld; John Dorshorst, million — a 13-fold increase. 2009 recipient, Carl Axness, Gratiot State Bank; Jim Tubbs, State Bank of Cross Plains; Jeff In the same period, capital has chairman, Union Bank of Blair. Mueller, Collins State Bank; Paul Hoff man, Monona State Bank; grown from $1.3 million to $20.2 million — a 15-fold increase. Stan Leedle, Choice Bank, Oshkosh; Butch Pomeroy, Interna- Th is represents a compound annual growth rate of capital of tional Bank of Amherst; Rick Busch, Royal Bank, Gays Mills; and 8.1 percent, aft er paying out over 72 percent of its average Jerry O’Connor, Th e National Bank of Waupun. Sitting, from earnings in dividends in each of the past six years. left : Steve Swanson, McFarland State Bank; Daryll Lund, CBW, In the past four years, this Subchapter S bank grew assets by Madison; Steve Bell, Community State Bank, Union Grove; and an average of 7.8 percent per year, total loans by an average of Steve Eager, Union Bank & Trust Company, Evansville. 13.9 percent per year, and deposits by an average of 7.1 percent CBW Names New Offi cers, per year. Its ROA, adjusted for the S selection, averaged .94 and its effi ciency ratio averaged 53.8 percent. Directors Steivang is a past CBW board member and has successfully At the annual business meeting of the Community Bankers served his community as a past president of the local Rotary of Wisconsin held on Sept. 16, 2010 at the Sierra Hotel and club, a leader with the area Chamber of Commerce, a lay min- KI Conference Center in Green Bay, Steve Bell, president and CEO of Community State Bank, Union Grove, succeeded Russ Kuehn, chairman of the board at First National Bank of Berlin, as CBW chairman. In addition, the following candidates were elected as offi cers and directors. Newly elected offi cers were: Chairman Elect: James Tubbs, State Bank of Cross Plains Vice Chairman: Paul Hoff mann, Monona State Bank Secretary/Treasurer: Mary Jo Ceniti, Farmers Savings Bank, Mineral Point District Directors elected were: District 2: Tom Armstrong, Th e First National Bank of Park Falls District 4: John Slatky, Bank of Luxemburg District 6: Jerry O’Connor, Th e National Bank of Waupun District 8: John Dorshorst, Gratiot State Bank At-Large Directors: Sigurd Bringe, Bank of Deerfi eld Randolph Malueg, Heritage Bank, Spencer Fred Siemers, River Cities Bank, Wisconsin Rapids

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September/October 2010 Wisconsin Community Banking News 9 ICBA Chair on Dodd-Frank Act: Clear Demarcation Between Wall Street and Main Street Mary Lou Santovec Th is was a generational chance to level the playing fi eld.” As 2010 chair of the Independent But the most important factor was the Community Bankers Association, Jim need to secure a seat at the table. “Wall MacPhee has had a front-row seat to Street always has a seat. Jamie Dimon all of the activity surrounding the draft - (CEO of JPMorgan Chase) spent four ing and passage of the Dodd-Frank Act. nights having dinner with President During the bill’s draft ing stage, MacPhee, Obama this year.” Wall Street spent $140 the CEO of Kalamazoo County State million and hired 57 Hill staff ers to cut Bank in Schoolcraft , Mich., and other down the bill. ICBA executives, went through its entire Community banks “live and die” 2,300 pages and recommended support Jim MacPhee, left , ICBA chairman, based on the risk they put on their for some aspects of the bill. presents a royalty check to Steve Bell, books. Th ere needs to be a tiered regu- Many community bankers had a dif- CBW chairman, and Daryll Lund, CBW latory system for community banks and ferent viewpoint, and MacPhee admit- president and CEO. those banks that play outside the rules. ted that the bill was far from perfect. MacPhee explained that ICBA, in Although community banks didn’t “I get it.” remaining neutral on the Dodd-Frank “win it all,” they did live to fi ght another As relationship bankers rather than bill, wanted to support positive, ongoing day. “You don’t win it all when a bill this transaction bankers, community bank- relationships with legislative leaders. “If massive goes through.” ers were concerned that the bill would you don’t support it, you throw under Th e bright spot remains that there’s a increase regulations for all financial the bus every staff er and Congress per- distinct line being created between Main institutions — even though it was the son who helped put in parts of the bill.” Street and Wall Street. “Th e administra- Wall Street bankers, mortgage bankers, Doing nothing was not an option, he tion, Congress, and the American people and fi nancial industry insiders who were said. “Th e bill couldn’t be stopped and get it.” the cause of the fi nancial meltdown. we didn’t want Wall Street to walk….

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September/October 2010 Wisconsin Community Banking News 11 Community Bankers Receive Lifetime Service Awards

A total of 28 Wisconsin community to serve as a member of the board of takes great satisfaction in helping to plan bankers were honored with Lifetime directors. the club’s outings and trips for seniors. Service Awards at CBW’s 2010 Man- Along with her husband, Randy, Due- agement Conference and Expo, held scher lives in the Luxemburg area. in Green Bay in September. Recipients Sheri Ackerman, Bank of were chosen based on their commitment Luxemburg to the industry and service to their cus- As a loan sales offi cer at the bank’s tomers and community, as well as their main branch in Algoma, Sheri Acker- positive attitude and personality. man has held six diff erent positions at two community banks for more than 30 years. She fi nds that helping a wide array of people achieve their fi nancial Daryll Lund (left ), CBW, with Bank of Luxemburg Lifetime Service Award goals to be a very rewarding part of her recipients job. Ackerman hopes to see the bank grow and bring its community-centered Darice Bunker, Bank of approach to other northeast Wisconsin Luxemburg communities. Ackerman lives in Algoma Darice Bunker began her career at with her husband, Tom. the bank in 1970 working part time while still in high school. Aft er gradu- Carol Baierl, Bank of Luxemburg ation, she began working full time as a Carol Baierl joined the Bank of Lux- proof operator. Currently an assistant emburg in 1975. She has fi lled numerous At right, William Peterson, Union State vice president, Bunker works from the roles over the years, including manag- Bank, with Daryll Lund, CBW bank’s branch in Luxemburg. She is also ing the IGA branch in Luxemburg. She William Peterson, Union State the liaison to the stockholders, facilitat- believes her most rewarding accomplish- Bank, Kewaunee ing the sale or purchase of bank stock. ment was starting the Golden DeLUX William G. Peterson, former chair- Personal service is very important to Club for seniors in 1987, for which she man of the board of Union State Bank, Bunker and she enjoys getting to know continues to plan activities. She lives in began his banking career in the mail her customers well. She and her hus- Luxemburg with her husband, David. room of Kellogg-Citizens National band, John, live in Dyckesville. David Luebbers, Bank of Bank in 1957. He progressed through Denise Kinjerski, Bank of Luxemburg all teller levels and gained experience Luxemburg David Luebbers joined the Bank in audit, operations, and loan process- Denise Kinjerski joined the bank in of Luxemburg in 1989, continuing an ing. In 1963, he joined four employ- 1979 as a proof operator and is currently established career in community bank- ees and opened a new bank on Green vice president of human resources. Kin- ing. Serving as executive vice president, Bay’s west side, American National jerski has seen banking evolve over the Luebbers oversees many of the bank’s Bank, where he served as operations past 30 years and believes that what cus- key activities. During his tenure he has offi cer and consumer loan offi cer. In tomers most appreciate is being able seen total assets grow from $45 million 1969 Peterson rejoined Kellogg-Citizens to have a one-on-one relationship with to $225 million in just over 20 years. He’s National Bank as assistant vice president the bank’s employees. Professionally, she proud that Bank of Luxemburg is able to in the correspondent banking division, has been able to take advantage of the help local people achieve their dreams. later transferring to the mortgage lend- bank’s support of education, earning Luebbers lives in New Franken with his ing department. In 1972, Peterson was her Professional in Human Resources wife, Jackie. named vice president and a member of certifi cate. She lives with her husband, Linda Vandenack, Bank of the board of the newly created Asso- Eddie, in the Luxemburg area. Luxemburg ciated Mortgage, Inc., which grew to Mary Jo Duescher, Bank of With more than 33 years in commu- conduct business throughout four states. nity banking, Linda Vandenack came Peterson returned to his hometown in Luxemburg Mary Jo Duescher has been with the to the Bank of Luxemburg in 2008 and 1983 joining Union State Bank as senior serves as retail representative in the vice president. He was elected presi- bank since 1972 except for a brief period when her children were young. Cur- bank’s Algoma and Forestville branches. dent of both the bank and its holding Most recently, she was promoted to retail company in 1990 and in 1996 became rently working at the IGA branch in Luxemburg, Duescher serves as a retail sales representative. Vandenack lives in chairman of the board. Retiring from Algoma with her husband, Th omas. the bank in 1999 and from his role as offi ce coordinator and assists with the chairman in 2010, Peterson continues Golden DeLUX Club for the bank. She

12 Wisconsin Community Banking News September/October 2010 Marlene Treml, Bank of made decisions based on what was best time teller in the Wayside offi ce in 1975. Luxemburg for the community,” he said. Aft er working full time for a decade, she Marlene Treml, who has been with During his tenure, Malueg grew the transitioned to part time aft er she started the bank since 1975, has seen the indus- bank from $59 million to $98 million her family. In 1991, Buchholz returned try cycle through high and low interest as of June 2010. He will step down as to full-time status as teller/bookkeeper rates. As the consumer lending specialist president at the end of 2010 but will and became the bank’s account systems in the Luxemburg and Casco branches, remain as an active member of the board specialist in 1996 where she managed Treml feels her customers, as well as of directors. the bookkeeping department. In 2006, local businesses, appreciate dealing with the board promoted Buchholz to opera- a friendly community bank rather than a tions offi cer. Buchholz is part of a farm large, corporate bank. Treml is kept busy family and works on the family farm with a large volume of refi nancing activ- before and aft er working at the bank. ity spurred by historically low interest rates. She and her husband, Jerry, live in the Luxemburg area. Sylven Konkel, Bank of Luxemburg Sylven Konkel began his career in the From left , Daryll Lund, CBW, with community banking industry in 1969 Sharon Buchholz and Mary Fritsch, and spent three years as president and Greenleaf Wayside Bank chairman of the board at F&M Bank in Algoma. He joined Bank of Luxemburg Mary Fritsch, Greenleaf Wayside in 2002 and specializes in commercial Bank lending, covering the Door County area. Mary Fritsch began working for the bank in 1975 as a full-time teller/book- Born and raised in the area, Konkel lives Larry Hahn (right), DMB Community in Algoma with his wife, Charlotte. keeper and secretary for the bank’s agri- cultural credit corporation. In 1980, she Bank, with Daryll Lund, CBW explored a new path when she took on Larry Hahn, DMB Community the position of administrative assistant Bank, DeForest in the lending area to the bank’s presi- Larry R. Hahn, chairman of the board dent and vice president. Two years later of DMB Community Bank, began his she was promoted to assistant loan offi - career at the bank in 1958 as a part-time cer. She remembers fondly the Christ- teller. Over his 50 years at the bank, he mas Eve she stayed at work to type a held the positions of bookkeeper, loan loan that the president needed to have offi cer, cashier, and investment man- fi nished while she was in labor for her ager. He was named president in 1979. third child. (Fritsch delivered a healthy Hahn has helped the bank grow from baby boy not long aft er she arrived at under $3 million in total assets in 1958 At right, Randy Malueg, Heritage Bank, the hospital.) Fritsch earned promotions to over $350 million in total assets in Spencer, with Daryll Lund, CBW to consumer loan offi cer, assistant vice 2010. Retiring from the bank in 2002, Randy Malueg, Heritage Bank, president of lending, and vice president Hahn has continued to serve as a mem- Spencer of lending. Th e board of directors pro- ber of the board of directors. He was named chairman of the board in 2008. Randy Malueg, president and CEO moted her to vice president chief lending of Heritage Bank, Spencer began work- offi cer in 2006. During her 34 years in ing for the fi nancial services industry banking, Fritsch has worked through in 1967 as a bank examiner. He left the numerous changes in technology and regulatory side and took a position as a regulations and prepped for many audits loan and credit offi cer at a Milwaukee and exams. Th rough it all she continues bank. His career includes stints servicing to have a true passion for banking and commercial loans and supervising the insists she is rewarded time and again mortgage and installment loan depart- when she puts that one special customer ments. Aft er a 17-year career with the in a new vehicle or a family in the home Marshfi eld branch of Associated Bank, of their dreams. he joined Spencer State Bank as presi- Sharon Buchholz, Greenleaf dent and CEO in 1999; the bank changed Wayside Bank Daryll Lund, CBW, with Dorothy its name to Heritage Bank in 2002. “I Sharon Buchholz recently celebrated Roskos, Independence State Bank joined Heritage Bank because it was a 35 years at Greenleaf Wayside Bank, locally owned community bank that starting her banking career as a full- continued on page 15

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14 Wisconsin Community Banking News September/October 2010 continued from page 13 president and CEO. In addition to his Diane Moseman, Bank of Prairie Dorothy Roskos, Independence duties as president and CEO, Stephen- du Sac State Bank son oversees commercial lending and As a loan processor at the Bank of also works with real estate, consumer, Dorothy Roskos, vice president, Prairie du Sac, Diane Moseman spe- and some agricultural loans. personal banker at Independence State cializes in mortgage loans. When she Bank, began her career at the bank in joined the bank in 2001, she brought an 1980. Hired on the teller line, she even- additional 24 years of experience in real tually moved to the operations area estate as a mortgage loan underwriter, and handled the “back room” work. A realtor, and closing offi cer. Moseman’s experience with the paperwork required native of Independence, Roskos made for mortgage loans and her work with many of the bank’s customers happy customers in taking them through the when she was named vice president, lending process has made her a valuable personal banker. She is also in charge of member of the bank’s team. the bank’s Liberty Club, for customers 55 years and older. Nine employees of the Bank of Prairie du Steve Ploetz, Bank of Prairie du Sac received Lifetime Service Awards. Sac Th ree recipients were able to attend the Steve Ploetz joined the Bank of Prai- 2010 Management Conference and Expo rie du Sac in 1977 as a loan offi cer. His banquet on September 16. career progressed to include a stint as a commercial lender. He took over as Jean Knuth, Bank of Prairie du president when his father, Charles Ploetz Sac retired. In addition to his role as bank Jean Knuth began her career at the president, Ploetz is also chairman of the bank in 1966 as a teller. Although she board of directors and serves on many retired as lead teller supervisor in 2004, community boards. Knuth came out of retirement in 2006 Roxann Grinde, Bank of Prairie du Carl Axness, left , and Dennis to help out part time during four of her colleagues’ maternity leaves. Knuth’s Sac Stephenson, right, both of Union Bank of As a loan servicer, Roxann Grinde Blair, with Daryll Lund, CBW willingness to come back and help out demonstrates her commitment as a team has been with the bank for 33 years. Carl Axness, Union Bank of Blair player. Prior to joining the bank in 1980, she Carl Axness, chairman of the board, worked for another bank in the teller Union Bank of Blair, began working for Darlene Kleist, Bank of Prairie du and bookkeeping areas. Sac the bank in 1973 as an agricultural loan Linda Oelke-McNamer, Bank of offi cer, a natural fi t since he grew up on Darlene Kleist joined the bank in 1973 as a secretary. Over the past 37 Prairie du Sac a small dairy farm located between Blair With more than 32 years in commu- years, she has fi lled many diff erent roles and Arcadia. He was asked to join the nity banking, Linda Oelke-McNamer including human resources administra- bank’s board of directors in 1980 and came to the Bank of Prairie du Sac in tive assistant, payroll, accounts payable served as the executive vice president 2006 as a mortgage lender. Now the vice assistant, and operations and bookkeep- until 1996. Th at’s when he and Den- president, mortgage lending, her career ing balancing. As an administrative nis Stephenson purchased the bank has included stints at four other banks assistant, her wide variety of responsi- from Howard and Jeannette Turk. A working as a personal banking opera- bilities has given her expertise to cover strong supporter of community banking, tions offi cer, assistant manager/assistant multiple roles. Axness has served as the past chairman cashier, and loan offi cer. of the Community Bankers of Wisconsin Noel McCormick, Bank of Prairie Diane Endres, Bank of Prairie du board. He’s also been a member of the du Sac Sac Noel McCormick began his career Agriculture and Regulatory committees Diane Endres has spent the past 31 at the Bank of Prairie du Sac in 1984 as of the Independent Community Bankers years at the Bank of Prairie du Sac. She th an agricultural lender. As the current of America and past secretary of the 7 began her career as a teller and was pro- senior vice president, ag lending, he has district of the Association of Ag Credit moted to head teller before transitioning spent the past 36 years with the bank. Companies. to her current role as internal auditor. His career has also included 10 years Dennis Stephenson, Union Bank with a credit association providing ag Diane Cepon, Bank of Prairie du of Blair loans, as well as crop and life insurance Sac Dennis Stephenson, president and for members. When Diane Cepon joined the bank CEO, Union Bank of Blair, began his as a customer service representative in employment with the bank in 1978 as 2009, she brought 30 years of experience a management trainee. He held various to her current position. Over those three positions in the bank until becoming decades, she has been a fraud investiga-

September/October 2010 Wisconsin Community Banking News 15 tor, as well as assistant vice president/ Financial Center. Today he serves as the brought his tractor, baler, and wagons assistant secretary. primary lender in the Poy Sippi market. to the scene and with the help of neigh- Customers remember Lippert for bors and the victim’s dad, got the hay in his actions during a weekend when he before the rain came. received a call from a client with alarm- We congratulate all of the award ing news that her husband had been run winners for their many years of valu- over by his tractor. Th e client was also able service to the community banking upset about the 15 acres of hay lying out industry. in the fi eld. Over the weekend, Lippert

Financial institutions that stay abreast of Daryll Lund (left ), CBW, with Terry changing payment delivery systems stay Lippert and Ginni Hoinacki, First National Bank of Berlin ahead of the regulatory requirements! Ginni Hoinacki, First National FFIEC and other regulatory agencies are beginning to recognize the Bank, Berlin importance of, and requiring financial institutions to utilize the services of, Ginni Hoinacki, corporate secre- individuals who are trained in the new payment delivery systems. tary, began working for First National Bank, Berlin, in 1970 as a teller. Origi- Those who earn their Check Professional Certificate (CPC) are recog- nally from Almond, Wis., she moved nized as qualified payments authorities with a knowledge of checks, to Berlin when she married her hus- images and ACH. Beginning in October 2010, WACHA is offering a five band. Hoinacki played an integral part week educational program (which will also be recorded and available in automating the bank and creating its through WACHA’s Webinar Library) specifically geared toward those indi- processing, operations, and accounting viduals who plan to take the CPC exam. departments. Over the past 40 years, she’s held various roles including senior WACHA’s Check Professional Certificate Program consists of a series of vice president and chief risk offi cer. She webinar training sessions all designed to provide individuals with the currently serves as corporate secretary knowledge they need to pass the CPC exam. Plus, through this program to the bank and its board of directors. you can train multiple employees at the same time for one low cost!* Terry Lippert, First National Bank, For more information on WACHA’s Check Certificate Program, visit our Berlin website at www.wacha.org, then click on the “Education” tab to view the Terry Lippert began his career with brochure, or drop us an email at [email protected]. First National Bank in 1970, collating * Mention discount code CBW 92710 and and fi ling checks and wrapping coins. take $25 off the program He was promoted to teller and lender registration fee and eventually headed the Poy Sippi

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16 Wisconsin Community Banking News September/October 2010 Paid Advertisement Health Savings Accounts – Not Just for Your Customers Most financial institutions are in extreme coverage eligible individual’s income if the cost savings mode. Combine that with the • Has an annual deductible of at least distribution is for “qualified medical recently enacted health care reforms, $2,400 and annual out-of-pocket expenses.” which could result in health benefits expenses (including the deductible) of • There is no time limit to reimburse becoming even more costly for employers not more than $11,900 for family expenses from an HSA. Distributions over the next few years, and you have a coverage. from an HSA can be used to reimburse great reason to revisit health savings Note: An HDHP can be a self-insured prior years’ expenses as long as the accounts! Health savings accounts (HSAs) medical reimbursement plan sponsored by expenses were incurred on or after the provide a more cost-effective method for an employer. date the HSA was established. There is employers to provide health insurance also no “use it or lose it” provisions while offering employees a tax-favorable How Much Can Be Contributed to an like flexible spending plans (section way to fund future medical needs. HSA? The maximum annual amount that 125 cafeteria plans). may be contributed to an HSA for 2010 is What Is an HSA? An HSA is a tax- $3,050 for a SELF ONLY plan and What Are “Qualified Medical exempt trust or custodial account, similar $6,150 for FAMILY coverage. Additional Expenses”? Expenses paid for the account to an IRA, established to pay qualified “catch-up” contributions ($1,000 for beneficiary, spouse, or dependents for medical expenses in conjunction with a 2010) can also be made to an HSA if the medical care (as defined in IRS Code high deductible health plan” (HDHP). individual is age 55 and older. Section 213(d)), but only to the extent the Eligibility. An “eligible individual” can expenses are not covered by insurance or Tax Treatment of an HSA Contribution establish an HSA for any month they: otherwise. Generally, health insurance – Employees. Contributions to the HSA premiums are not qualified medical • Are covered by an HDHP on the first are pre-tax and not subject to federal expenses. However, an HSA can pay for day of such month. income tax or employment taxes (FICA, long-term care insurance, COBRA health • Are NOT covered by any other health FUTA, SUTA) provided that the employer care continuation coverage, and health plan that is NOT a HDHP (e.g., spouse sponsors a cafeteria plan and HSA; care coverage while an individual is cannot have insurance that is not a contributions are made via payroll receiving unemployment compensation. HDHP). deduction. Note: states differ as to their In addition, for individuals over 65, • Are NOT enrolled for benefits under recognition of HSAs, for example, premiums for Medicare Part A, B, or D, Medicare (i.e., under age 65) Minnesota and Illinois recognize HSAs Medicare HMO, and the employee share • Are not be claimed as a dependent on while Wisconsin does not. of premiums for employer-sponsored retiree another individual’s tax return. Tax Treatment of an HSA Contribution health insurance can be paid from an HSA. Note: Eligibility to contribute to an HSA – Employers. Contributions to an HSA As illustrated in the example, HSAs can does not depend upon your income (no are deductible by the employer and help reduce employee benefit costs for limits). excluded from employees’ income. An your financial institution. Wipfli’s HSA is not subject to COBRA Employee Benefits Specialists can assist What is a High Deductible Health Plan continuation coverage. (HDHP)? Any health plan which for you in analyzing your health insurance 2010: Tax Treatment of an HSA Account. benefit plan along with employee benefit • Earnings inside the HSA are not plans in general. • Has an annual deductible of at least Please call your Wipfli client service $1,200 and annual out-of-pocket included in the eligible individual’s income. representative or one of our Employee expenses (including the deductible) of Benefits Specialists to discuss how it not more than $5,950 for individual • Distributions are not included in the could impact you. Visit www.wipfli.com to find over 150 Employer Cost Savings Example: additional business and financial Monthly family health premium ($500 deductible) $1,400 institution articles. Proposed HDHP family premium ($2,400 deductible) $1,150 Monthly premium savings per month $ 250 Annual premium savings (x 12 months) $3,000 Tom Krieg Employer share of annual savings (assumes 80% employer contrib.) $2,400 Partner Employee share of annual savings (assumes 20% employee contrib.) $ 600 www.wipfli.com Employer contribution to HSA (to cover deductible increase) $1,300 Employee contribution to HSA (funded by premium savings above) $ 600 Total contribution to employee HSA (covers additional deductible) $1,900 Employer net savings per employee on family plan $1,100 www.wipfli.com

September/October 2010 Wisconsin Community Banking News 17 Thornberry Creek at Oneida: Conference Begins with Golf Outing A total of 74 golfers enjoyed the Th ornberry Creek at Oneida golf out- ing that began CBW’s 2010 Manage- ment Conference & Expo in Green Bay. Despite showers and a temperature drop, most fi nished their game, though some took shelter in the clubhouse. Golfers contributed to CBW’s PAC to be eligible for the Green Bay Packer 90-Year 1919-2009 Green Bay Packers autographed football.

First place team members

Pictured with the winner of the football are left to right: Daryll Lund, CBW, Madison; Jeff Mueller (winner), Collins State Bank; and CBW Chairman, Russ Kuehn, Th e First National Bank of Berlin. First-place team members with a 64: Second place team members Fourth place team members Scott Kopp, Bank of Galesville; Sid Golf Prize Flag Event Winners: Sukow, Premier Check Printing, Merrill; # 1 Long Putt ...... Mike Marx, ICBA, Appleton Penny Heberlein, CBW, Madison; and # 2 Closest to the Pin (W) ...... Karen Reed, Headwaters State Bank, Land O’ John Maciosek, Elite Payment Systems, Lakes New Berlin. # 3 Closest in 3 shots (Team) ...... Terry Lardinois, Greenleaf Wayside Bank; Dennis Second- and third-place team mem- Romero and Marc Gall, BOK Financial, Menomonee bers were determined by a scorecard # 4 Long Putt (M) ...... Jim Lutter, PMA Financial, Naperville, IL playoff on hole #1 with a score of 67: # 5 Long Putt ...... Sid Sukow, Premier Check Printing, Merrill Steve Swanson, McFarland State # 6 Closest 2nd Shot ...... John Maciosek, Elite Payment Systems, New Bank; Pat Wick, Bank of Turtle Lake; Berlin Lee Christensen, Madison; and Brian # 7 Long Drive in Fairway (W) ...... Penny Heberlein, CBW, Madison Blaha, Wipfl i, Green Bay. # 8 Closest to the Pin (M) ...... Greg Amborn, M&I Capital Markets, Milwaukee Th ird-place team members with a # 9 Closest to Pin from off Green ...Scott Krieger, Bankers’ Bank, Eau Claire score of 67: #10 Closest 2nd Shot ...... Charlie Saeman, State Bank of Cross Plains Toby Steivang and Don Buchert, Wal- #11 Long Putt ...... Manuel Rosado, Spectrum Investment Advisors, worth State Bank; Kent Musbach and Mequon Josh Hunt, BOK Financial, Menomonee. #12 Closest to the Pin ...... Scott Kopp, Bank of Galesville Fourth-place team members with a #13 Long Putt ...... Dan Miller, Associated Bank, Green Bay score of 68: #14 Longest Drive in Fairway (M) .Jon Marshall, Spectrum Investment Advisors, Scott Krieger, Bankers’ Bank, Eau Mequon Claire; and Charlie Saeman, State Bank #15 Closest in 3 Shots (Team) ...... Sigurd Bringe, Bank of Deerfi eld; Leif Christian- of Cross Plains. Absent from the photo son, Peoples State Bank, Wausau; Dan Miller, are Jim Tubbs, State Bank of Cross Plains Associated Bank, Green Bay; and Bryce Hansen, and John Anderson, Executive Benefi ts Hansen & Young Auctioneers, Prairie Farm Network, Milwaukee. #16 Closest to Marker ...... Bryce Hansen, Hansen & Young Auctioneers, Prairie Farm #18 Long Putt ...... Toby Steivang, Walworth State Bank

18 Wisconsin Community Banking News September/October 2010 Photos Record 2010 CBW Management Conference and Expo

September/OctoberSeptember/October 20120100 WisWisconsinconsin CoCommunitymmunityB Bankinganking NeNewsws 19 Th ank You to Sponsors of the 2010 CBW Management Conference and Expo

Event Photography for the Conference Financial Marketing Corporation Wednesday, September 15 Golf Tournament Continental Breakfast Young & Associates, Inc. Golf Promotional Packages Dougherty & Company, LLC Golf Tournament Lunches Shazam Golf Tournament Flag Events Secure Banking Solutions Golf Tournament Hors d’ Oeuvres Federated Investors Welcome Reception Cocktails Wisconsin Business Development Finance Corp. Welcome Reception Buff et Community Bankers of Wisconsin Th ursday, September 16 Breakfast Buff et Baker Tilly Clift on Gunderson LLP Federal Home Loan Bank of Chicago Rural Mutual Insurance Company Zurich Refreshment Break Jeff erson Wells Luncheon Chubb Group of Insurance Companies Fiserv, Inc. La Macchia Group, LLC West Bend Expo Refreshments & Dessert ICBA Services Network Chairman’s Cocktail Reception Executive Benefi ts Network Spectrum Investment Advisors Chairman’s Banquet Wine Associated Bank, Correspondent Division Chairman’s Banquet McGladrey, PULSE, Travelers, Wipfl i LLP Lifetime Service Awards Community Bankers of Wisconsin Banker of the Year Award Executive Benefi ts Network, PULSE, McGladrey, Travelers, Wipfl i LLP Chairman’s 10K Emerald Pin Community Bankers of Wisconsin Aft er Dinner Dessert & Coff ee Bankers’ Bank Aft er Dinner Cordials Community Bankers of Wisconsin Friday, September 17 Breakfast Buff et Godfrey & Kahn, S.C. Refreshment Break Central States Health & Life Co. of Omaha David Meinz, Nutritionist Co-sponsor, Spectrum Investment Advisors One-week vacation in Door County Ed Spriegel, CBW Financial Insurance Consultant One-week vacation in Orlando, Florida Ed Spriegel, CBW Financial Insurance Consultant

20 Wisconsin CommunityCommunity BanBankingking NNewsews September/OctoberSeptember/October 20120100 Community Bankers Win One-Week Vacations Daryll Lund (center) , CBW, with Gary Vanden Heuvel (left ), BLC Community Bank, Little Chute, who won a one-week stay in a four-bedroom house in Orlando. At right is Pat Wick, Bank of Turtle Lake, who won a week’s stay in Door County.

September/October 2010 Wisconsin Community Banking News 21 Daryll Lund (left ) , CBW, with outgoing CBW Board member Steve Swanson

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24 Wisconsin Community Banking News September/October 2010 Manage Credit Risk with Loan Reviews

Mary Lou Santovec Tabor off ered the following sugges- Much like an annual physical encour- tions for best practices: ages you to manage your health risks, a Getting leadership buy-in is most loan review assists you in monitoring important. your credit risk. A loan review ben- Do a 50-percent penetration of your efi ts your bank by giving you a fresh loan portfolio each year. Do the largest perspective. loans fi rst and then sample below that Mark Taber, president and CEO, the fi rst time through. For effi ciency: Wind River Financial off ered a primer if you review all the loans in a con- Bob Malchetske (center) with Daryll on best practices for credit review at centration at the same time, common Lund (second from left ), CBW, with the Community Bankers of Wisconsin’s mistakes will show up throughout the other Farmers & Merchants Bank annual Conference and Expo held in concentration. executives — Peter Kujawa (left ), Green Bay in September. Th e Madison- Before the reviewers or examiners Catherine Kujawa, and John Kujawa based fi rm provides credit risk manage- get there, ask your loan offi cers to get all ment services for fi nancial institutions as missing pieces of information in the fi les Malchetske Wins Tickets to well as expert, third-party loan portfolio 30 days ahead of schedule. “Loans you Packers-Lions Game assessments. thought were good credits 18 months GREEN BAY—At the 2010 CBW Man- Having an unbiased third party ago are probably weak,” he said. “You agement Conference and Expo in Sep- review some or all of your loan port- need to get current tax and personal tember, Bob Malchetske, Farmers & folio adds value rather than extracts a income statements. People are pulling Merchants Bank, Berlin, won the CBW- punishment. “We’re there to get ahead out money to keep themselves afl oat.” PAC prize drawing. Malchetske received of the curve so that you get the highest Take corrective action. Don’t ignore tickets to the Packers-Lions game on rating in your portfolio,” he said. the problems or processes that need October 3, as well as a one-night stay In conducting loan reviews for vari- improvement. in Green Bay. ous banks, Wind River has uncovered a host of problems including rogue loan offi cers and missing annual reviews, as well as outdated policies, procedures, and processes. Th ey’ve also found loans that closed not as approved and little, no, or poor analysis. Imagine what the examiners would do if they had found those situations fi rst! Internal or external: which one is bet- ter? “If you’re doing it internally, one of the mistakes we see is that the reviewer is reporting to the senior lender,” said Taber. “Th e reviewer should report to the audit committee.” A loan review should assign a risk rat- ing, confi rm strengths and weaknesses, note missing or inaccurate informa- tion, and note exceptions that weren’t approved. It should also validate reserve 8IBU
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September/October 2010 Wisconsin Community Banking News 25 CHANGING SCENE Wisconsin, Minnesota To protect the depositors, the FDIC dent of residential lending. “Our entire entered into a purchase and assumption team works hard to help people through- Community Banking agreement with North Shore Bank, FSB, out Wisconsin experience the pride of Associations Form Brookfi eld, to assume all of the deposits ownership and, maybe most impor- Insurance Alliance of Maritime Savings Bank. tantly, help grow the communities we Th e nine branches of Maritime Sav- serve.” EAGAN, Minn., and MADISON— ings Bank immediately reopened as The GRH program assists home- Independent Community Bankers of branches of North Shore Bank. Deposi- buyers in obtaining a 30-year fi xed rate Minnesota (ICBM) and Community tors of Maritime Savings Bank auto- mortgage without the down payment Bankers of Wisconsin (CBW) have matically became depositors of North or monthly mortgage insurance typi- announced a strategic alliance to pro- Shore Bank. cally required by conventional lenders vide enhanced products and services to As of June 30, 2010, Maritime Savings and programs. GRH loans are fi nanced community banks. Upon fi nal approval Bank had approximately $350.5 mil- through participating lenders and are by both boards of directors, Community lion in assets and $248.1 million in total guaranteed by USDA Rural Develop- Bankers Financial Services (CBFS), now deposits. North Shore Bank, FSB did not ment. Th e amount of the mortgage is a subsidiary of CBW, will become a joint pay the FDIC a premium to assume all of limited by the applicant’s repayment subsidiary of CBW and ICBM. the deposits of Maritime Savings Bank. ability and can be made for up to 102 Insurance products offered will In addition to assuming all of the depos- percent of the appraised value. Th ere are include financial institution bond; its of the failed bank, North Shore Bank, no restrictions on the size or design of directors’ and offi cers’ liability; property, FSB agreed to purchase approximately the home. Loan closing costs and repairs casualty, and workers’ compensation; $177.6 million of the failed bank’s assets. can oft en be fi nanced with the home forced placed property mortgage protec- Th e FDIC estimates that the cost to purchase. Eligible areas include rural tion; and life of loan fl ood determina- the Deposit Insurance Fund (DIF) will regions and communities under 20,000 tions. Banks utilizing the new alliance be $83.6 million. Compared to other in population and not part of a larger will continue to have access to major alternatives, North Shore Bank, FSB’s urban area. insurance companies and the products acquisition was the least costly resolu- most needed and requested by bank- tion for the FDIC’s DIF. Maritime Sav- Farm Service Agency ers, as well as access to knowledgeable ings Bank is the 125th FDIC-insured and responsive service from long-time Reps Meet with Lund institution to fail in the nation this year, CBFS representatives Kevin Christians and the first in Wisconsin. The last and Phil Hoover. FDIC-insured institution closed in the “Th ere is a common focus shared by state was Bank of Elmwood, Racine, on both groups,” said Daryll Lund, CBW Oct. 23, 2009. President/CEO. “We are dedicated exclusively to enhancing the franchise Wisconsin Community value of community banks, and ICBM’s goals include providing member banks Bank Earns USDA with the resources and advocacy they Homeownership Award need to remain independent. Th is is a MADISON— Wisconsin Community good fi t all around.” Bank has received the Million Dollar From left , Daryll Lund, CBW, with “Community banks face unique Lender Award from the U.S. Department Brad Pfaff , state executive director, and economic challenges,” said Marshall of Agriculture. Th e award recognizes MacKay, ICBM President/CEO. “Hav- Ray Ellenberger, farm loan chief, of the lenders who make a signifi cant con- USDA Farm Service Agency ing the combined resources of two asso- tribution in assisting Wisconsin rural ciations focused on providing member residents achieve homeownership in Representatives from the USDA banks with the best insurance options partnership with the USDA Rural Devel- Farm Service Agency (FSA) met with is an important part of helping them opment and Guaranteed Rural Housing CBW President and CEO Daryll Lund continue to serve their communities.” (GRH) program. at the CBW offi ce to discuss issues of Wisconsin Community Bank’s par- importance to community bankers North Shore Assumes ticipation in the program has contrib- related to FSA’s direct and guaranteed All Deposits of Maritime uted to more than 3,700 home purchases farm ownership loan programs. Savings Bank in rural communities in Wisconsin. In addition, the bank utilized more than $1 BROOKFIELD—Maritime Savings million of the program’s funds in fi scal Bank, West Allis, was closed in Septem- year 2009. ber by the Offi ce of Th rift Supervision, “We’re honored to receive this award,” which appointed the FDIC as receiver. said Roger Erickson, senior vice presi-

26 Wisconsin Community Banking News September/October 2010 PEOPLE Sennholz to Serve on FHLB of Chicago He has 18 years of banking experience and holds a B.A. in Board communications with a double minor in business management and marketing from Western Illinois University. CHICAGO—William Sennholz, president and CEO of Marsh- fi eld Savings Bank, will again serve on the Federal Home Loan North Shore Promotes Hoepfner Bank of Chicago board of directors. His new four-year term BROOKFIELD—North Shore Bank has promoted Bob Hoep- begins Jan. 1, 2010. fner to vice president-commercial banking manager. He previ- Dean Retires from Wipfl i ously served as a regional vice president. Hoepfner’s duties will include managing the Commercial MILWAUKEE— Aft er 43 years in the fi nancial services indus- Lending Group, which includes eight full-time commercial try including nine years with Wipfl i LLP, Wipfl i partner Dick bankers who serve northeast and southeast Wisconsin, and Dean retired on September 30. Northern Illinois. His primary goal is to provide credit, deposit, “Over his nine years with Wipfl i LLP, and cash management services to businesses. Dick has been a strong member of our team as we have signifi cantly grown the fi nancial DIRECTORY OF COMMUNITY BANKING SERVICE PROVIDERS institutions industry practice, expanded into new markets, and launched new ser- vices to help fi nancial institutions face new Community bankers, you have a choice. challenges,” said JoAnn Cotter, partner-in-charge of Wipfl i’s You can spend your valuable time fi nding fi nancial institutions practice. one prime candidate to fi ll your mid- to upper-level In addition to serving fi nancial institutions through his position, or you can call me. I will present you with the work at Wipfl i for the last nine years, Dean served as Wiscon- right person for the job in less time sin’s fi rst Secretary of the Department of Financial Institutions with less hassle. (DFI). In that role, he was the top fi nancial regulator and chief Offi ce location: advisor to the governor on matters regarding Wisconsin’s 155 E. Capitol Dr., Ste. 5 banks, savings institutions, credit unions, mortgage lenders, Hartland, WI 53029 and licensed fi nancial service providers. Dean previously Phone: (262) 369-8109 served as Wisconsin’s Deputy Commissioner and Commis- Fax: (262) 369-8028 email: [email protected] sioner of Banking for eight years. In addition, he worked for 22 Del Garcia years as a bank offi cer and director at three Wisconsin banks. First Business Financial Services Promotes James MADISON— First Business Financial Services, Inc., has pro- moted Ken James to vice president of credit administration. Specialists in BSA/AML Testing Reviews, Director Training, BSA/AML & OFAC Risk Compliance Offi cer Assessments, Pre-Examination Reviews Charter Bank Eau Claire, a $500+ million community bank, is currently search- ing for a Regulatory Compliance Offi cer. This new full-time position includes Joseph J. Gunnell, CAMS, AMLP, CFE regular hours Monday through Friday and occasional Saturdays from 8:30 (retired FDIC bank examiner) a.m. – 12:00 p.m. The Compliance Offi cer position will be responsible for the development, implementation and management of a compliance program to Sturgeon Bay, WI [email protected] comply with regulatory requirements. Requirements of the position include 920.818.0379 www.bsasolutionsinc.com an Associate Degree in a business management related fi eld (or equivalent) and a minimum of two years in a fi nancial institution compliance function. This experience must have involved maintaining current knowledge and skill in Superior Safe & Security LLC the application of Federal Banking Laws, Acts, and Regulations. An individual with the Certifi ed Regulatory Compliance Manager (CRCM) designation is Electronic & Physical Security Products preferred; however, someone with the willingness and ability to pursue the Access ControlModular Vaults CRCM designation would also be acceptable. In addition, candidates must Alarm Monitoring Night Depositories be motivated, detail orientated, and possess excellent verbal and written Alarms Point to Point Systems communication and organizational skills. Charter Bank Eau Claire is a grow- Audio Systems Safes ing community bank and offers a positive work environment and generous Close Circuit T.V. Safe Deposit Boxes benefi t package for this position. Competitive salary is based on skills and Drive Up Systems Security Systems experience. Resumes for this position will be accepted through November Fire Safes Teller Counters 30, 2010. Please send letter of interest with resume to: Media Safes Vault Doors Charter Bank Eau Claire Metal Undercounter Cabinets Walk Up Windows Attn: Human Resources 1010 W. Clairemont Avenue Sales, Installation & Service Eau Claire, WI 54701 800-626-0888

September/October 2010 Wisconsin Community Banking News 27 AN INVESTMENT RESOURCE TO REMEMBER Your local business customer seeks equity capital for expansion. What to tell them? Partner with the Capvest Venture Fund (CVF) to: ‰ Provide equity capital to businesses with annual revenues of $5 million or more in manufacturing, distribution, business services, healthcare, and information technology supporting these industries. ‰ Help your business customers grow, create jobs, and build the local economy. Review your business accounts today. Help them reach their goals of expansion, market development, and acquisition. CapVest Venture Fund: Focused on Wisconsin businesses www.capvestvc.com. Contact Daryll Lund or Rick McGuigan at (608) 833-4229. Or e-mail Daryll at [email protected] or Rick at [email protected].

Financial Institution Products & Services Offered by Your Association ◆ Financial Institution Bond ◆ Directors and Offi cers Liability ◆ Property, Casualty, and Workers’ Compensation ◆ Forced Placed Property Mortgage Protection ◆ $9.00 Life of loan fl ood determinations

CBW Financial Services offers a wide variety of products and services for the benefi t of you, our members. For additional information on any of our Kevin Christians Phil Hoover fi nancial institution programs call CBW at (608) 833-4229.