Border traffic to Wisconsin sparks idea for new Minnesota bank

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

The traffic flowing from Minnesota to Wisconsin wasn't going unnoticed by Wisconsin banker Bill Bosshard as numerous motorists daily crossed the Mississippi River from Wabasha, Minn., to Nelson, Wis.

The three-mile jaunt Wabasha-area residents took to the Nelson branch of Bosshard's Bank of Alma sparked an idea that would mark a first for the 20-year banking veteran. Bosshard and his family's eight-bank, $650 million Wisconsin business would venture into Minnesota.

On Sept. 11, the newly-chartered Wabasha County Bank planned to open its doors, becoming the ninth start-up bank in Minnesota since January 1996. The border traffic along the Interstate Bridge spoke volumes to Bosshard.

"Wabasha only had one bank. We felt that with the number of people coming from there to do business at our Nelson branch, and with only one other competitor(in town), it made sense to establish a site in Wabasha," said Bosshard, who will serve as president of Wabasha County Bank.

Bosshard and his wife, Diane, the bank's incorporators, invested $2 million into the institution, located in the small town known as the setting for the Jack Lemmon, Walter Matthau antibuddy comedy, "Grumpy Old Men."

Moving into the Wabasha market took some thought, Bosshard admitted, since the county already has four other banks with assets ranging from $60 million to $85 million. Bosshard's competitors will include First State Bank of Wabasha; American Bank Lake City; The First National Bank of Plainview and Peoples State Bank of Plainview.

"I'm very excited about being in Minnesota and hope to live up to customers' expectations. I'm very bullish on the future of small banks," Bosshard said.

Even with stiff competition, Bosshard hopes the Wabasha County Bank can attract customers from along the Mississippi River, stretching from Red Wing to Winona. Nearby Rochester also will be a target market.

"(The new bank) will take some Nelson business, but we felt it was the time to move. Wabasha is a growing and vibrant community," said Bosshard, who hopes the bank will reach $20 million in assets within three years.

The 3,200-square-foot building, constructed at $500,000, will be owned by the Bosshards and leased to the bank, located on State Hwy. 60 between U.S. Hwy. 61 and downtown Wabasha.

Diane Bosshard will serve as bank cashier, and Todd Rasmussen will be its chief executive officer. Rasmussen also serves as vice president and manager of the Bank of Alma's Nelson branch. The new bank's board of directors will include the Bosshards; Rasmussen; Edward Greenheck, Wabasha, owner of Nelson Cheese Factory, and Eugene Passe, a retired Wabasha businessman.

Bosshard's family has been involved in banking for 35 years with investments in eight Wisconsin banks and the Wabasha County Bank in Minnesota. John Bosshard, Bill's late father, was well-known in banking and served on the Federal Reserve Board in 1969.

In Wisconsin, the family operates Dairyland Bank Holding Co., which owns Bank of Alma and LaFarge State Bank; Bosshard Financial Group Inc., parent of Grand Marsh State Bank and Farmers State Bank in Hillsboro; Bosshard Banco Inc., owner of The First National Bank of Bangor and Intercity State Bank in Schofield.

Two other family-owned institutions, Community National Bank in Oregon and Bank of Mauston, operate as separate entities. Bosshard owns outright the Wabasha County Bank and Bank of Alma.