Wisconsin group seeks new charter in Iowa

Northwestern Financial Review, Nov 22, 1997 by Bengtson, Tom

Bankers Bancorporation of Wisconsin, the holding company for Bankers Bank of Wisconsin, is seeking to start a bankers bank in Iowa. The Madison-based company would be the first bankers bank holding company in the country to establish a separate bank in another state.

Bankers Bank of Wisconsin opened an office in Des Moines, Iowa a few years ago and currently has 130 customers in the state. The office is staffed by two people, with the addition of a third full-time banker expected in early 1998. Randy Steig heads the office, and presumably would become president of a new bankers bank in Iowa.

Helge Christensen, president and CEO of Bankers Bancorporation, explained the only way for his company to establish a separate bank in Iowa is by acquiring a bank in Iowa. Because Iowa law limits branching to contiguous counties, Bankers Bancorporation would need to buy a bank near Des Moines in order to establish a presence in the state's capital city. Christensen said there may be a bank available meeting such criteria.

In order to convert an established commercial bank into a bankers bank, Christensen said the bank's non-conforming business would have to be sold to other banks.

Christensen said Bankers Bancorporation already has raised $1.5 million to capitalize the new bank from 36 Iowa shareholders. "That's without a charter in Iowa," Christensen said. "Once we get a charter we would hope to double or triple that."

Christensen said he hopes progress will be made toward the establishment of a new bankers bank sometime in 1998.