New Wisconsin bank hopes to capture business, affluent market

Northwestern Financial Review, Sep 19, 1998 by Olmsted, Monte

Bank organizers thought they sat on a potential goldmine in Delafield, a town near Milwaukee touted as one of the fastest growing communities in Wisconsin. New businesses were flocking here and so were young, affluent people, giving the town a median age of 35 in households earning $70,000 annually.

Delafield seemed like a prime place to start a bank.

And so it happened as Delafield State Bank opened its doors on July 23, concentrating on business and private banking services in a 10-mile radius around this lake country tourist town.

"A lot of people are moving out here. We believe we have a real opportunity to integrate business banking and private banking because this area is an attractive market for this approach," said Jay Mack, Delafield State Bank's executive vice president and chief operating officer.

Citing company research, Mack said roughly two-thirds of Delafield State Bank's loan portfolio would come from the business sector.

Started on $8.2 million, Delafield State Bank organizers hope to gain a market foothold not only in the Milwaukee-metro area, but primarily expanding west along Interstate Hwy 94 toward Madison, Mack said. "It's a significant opportunity to grow in that direction because the market between Milwaukee and Madison has been under-serviced by larger banks in Wisconsin and ignored by out-of-state banks," he said.

The new bank is temporarily housed in a 90-year-old building and will remain there for about 10 months, Mack said. By spring 1999, Delafield State Bank and its 10-member staff will move to a nearby 8,000square-foot site currently under construction. After three years, bank officials predict Delafield State Bank will reach more than $100 million in assets.

Delafield State Bank also is in the process of establishing a securities and brokerage business to augment its banking services. The brokerage, known as Genesee Street Securities, should be operating by early December. Mack said the bank has tentative plans for similar arrangements with mortgage banking and insurance companies.

The bank is part of the newly formed one-bank holding company, Town Bankshares Ltd. of Delafield.

Its organizers include Jon Bruss, chairman and chief executive officer of Fortress Bancshares Inc.; Robert Lang, president of Lang Cos., a printing and graphics company; Michael Pretasky, president of boat dealer Skipper Marine Corp.; Tom Manthy, president of Lakeland Oldsmobile Pontiac GMC Inc.; William Hickman, counsel for Lang Cos.; Fred Orlando, a packaging consultant with Menasha Corp., and Richard Meeusen, chief financial officer of Badger Meter Inc.

Bruss will serve as bank president and CEO. Delafield State Bank will operate separately from Fortress Bancshares Inc., a $170 million company with banks in Westby, Wis., Houston, Minn., and Cresco, Iowa.