State Bank of Cross Plains thrives in Madison-area market

Northwestern Financial Review, Apr 18, 1998 by Mattson, Beth

Ninety years ago, the State Bank of Cross Plains opened its doors in a rural community just west of Madison. But while the town of Cross Plains has expanded at a leisurely pace with less than 3,000 residents, the bank has taken a much more aggressive approach.

The State Bank of Cross Plains has thrived in recent years. In 1997, assets reached $164 million, more than double the $78 million reported in 1990. "Through the years we've tried to both explore every avenue of service that we can offer, and we've worked extremely hard to reach out and encompass the market that we're in to the best of our abilities," said Lee Swanson, president and CEO. Although the State Bank of Cross Plains has been progressive in its offering of products and services, Swanson also attributes a large portion of the bank's success to the commitment of the staff. "I really think the team of people that we've put together has met the challenge, and has great belief in the vision of what our bank can accomplish," Swanson said.

Another contributor to the bank's vitality has been expansion within Dane County. The bank responded to that growth by opening additional locations in recent years. Currently, the State Bank of Cross Plains operates a main bank and a motor bank in Cross Plains, as well as locations in nearby Mount Horeb and Middleton. "The expansion was very much a reaction to where our customers were coming from in order to provide more convenience to them," said Charlie Saeman, executive vice president of the State Bank of Cross Plains. The bank is continuing to look for additional locations in new markets.

The bank's emphasis on niche markets also has played a significant role in their ongoing success. Residential real estate lending has been one key sector, and last year the bank completed 1,200 mortgage loans for a total of $94 million. "In part, one has to credit the marketplace. Western Dane County is a growth area. So the opportunity, in fact, presented itself," Saeman said. However, the State Bank of Cross Plains recognized the demand and has been aggressive in offering real estate lending services to its customers.

The State Bank of Cross Plains is the first independent community bank to work with the Federal Home Loan Bank of Chicago in its Mortgage Finance Partnership, and the State Bank of Cross Plains has become one of the top loan originators in that pilot program. Since the bank started participating last fall, Cross Plains has originated 250 mortgages for more than $26 million. The bank also is a strong user of Freddie Mac and Fannie Mae.

"I think one of the reasons that they've been successful is their strong commitment to the community and to the customers," said Daryll Lund, executive vice president of Community Bankers of Wisconsin. "They're also very focused on markets that they want to be good in, such as mortgage lending, as well as providing a full range of financial services to their customers," Lund said.

The State Bank of Cross Plains has been expanding its offering of financial products and services in recent years. The bank introduced brokerage services in 1989, and the bank's trust department has $36 million in managed assets. "Part of our success comes from our progressiveness and use of a wide variety of financial services for our customers," Saeman said.

The bank has long held a progressive approach to its growth, and that is apparent in many of its operating strategies, particularly in the way technology is implemented. Current plans include upgrading both facilities and technology. The State Bank of Cross Plains is remodeling its offices, and retrofitting technology that will provide customers with Internet access. This year, the bank expanded its Middleton facility from 1,500 to 4,000 square feet. The bank also is in the process of adding 9,000 square feet to its existing 18,000-square-foot building in Cross Plains. "We believe there is a place for brick and mortar. At the same time, there is a need to provide non-building channels," Saeman said.

Other technology upgrades include expanding the bank's ATM network and electronic banking. "We have a progressive technology plan," Saeman said. The State Bank of Cross Plains has had telephone banking for the past three years and PC banking for the last year and a half. Another feature the bank is introducing is a 24-hour loan-by-phone service.

The State Bank of Cross Plains also is in the process of installing a marketing customer information file (MCIF) system. The database system will help the bank to identify potential and existing customers that fit a specific "client profile," as well as assisting the bank in determining what products and services best fit the needs of those customers. "That will take us a long way toward continued growth goals," Swanson said.