Return to state marks banker's first taste of independent banking

Northwestern Financial Review, Nov 4, 2000 by Olmsted, Monte

A surprise awaited Tom Wierschem upon his initiation into independent banking. After joining the $80 million Farmers & Merchants State Bank in Waterloo this summer as its new president, Wierschem found his new bank wasn't open on Saturdays.

Things were about to change in this town of 3,000 people near Madison.

"I dropped my jaw," said the 45year-old Wierschem who left a similar size bank at Minnesota-based Bremer Financial Corp. "I cannot imagine how a bank can't have Saturday hours in this day and age."

A little more than two months after joining the Wisconsin bank, Wierschem implemented Saturday morning drive-up hours on Oct. 7. He's also extended the weekday lobby hours until 5 p.m. and opened drive-up lanes earlier at 7:30 a.m. And early next year, the bank will consider opening its lobby on Saturdays.

To Wierschem, a 22-year banking veteran, the changes aren't "baby steps" but major steps in improving the bank, serving the community and appreciating the customer. Wierschem admitted the changes have caused some trepidation among Farmers & Merchants' 35 employees, but the changes will mark a shift to more convenient banking.

"It's affected lives and schedules," said Wierschem. "But the employees recognized we needed to do this."

Coming back to Wisconsin is a homecoming of sorts for Wierschem, who grew up in a Milwaukee suburb but moved to the Twin Cities of Minnesota in high school. He's happy he and his family returned to the Badger state after spending the last 16 years working for Bremer Financial in Minnesota, where he served the past six years as president of the $80 million Bremer Bank in Breckenridge.

In Waterloo, Wierschem replaced the retiring Bill Jensen, who served as president of Farmers & Merchants State Bank for 20 years. Jensen remains one of about 350 shareholders of the bank.

Wierschem began his banking career fresh out of college almost by accident. Armed with a teaching degree from the University of Minnesota, Wierschem cast about for a teaching job but couldn't find one. While in the Milwaukee area for a job interview, he looked up an old grade school friend. The friend suggested Wierschem talk to the friend's older brother, who worked at a thrift.

"It was the classic story. It wasn't what I knew. It was who I knew," Wierschem said.

When the Cudahy Savings Bank hired Wierschem, the would-be teacher chucked a potential career in education and veered toward the financial services industry. Once the young Wierschem got started in banking, he knew he was overmatched. So to get ahead and learn more about his trade, Wierschem enrolled in classes at the University of Wisconsin in Milwaukee, where he earned a master's degree in business.

He spent six years working in Cudahy, before joining Bremer Bank in Willmar, Minn. After a decade in that south-central Minnesota town, Wierschem transferred to Bremer Bank in Breckenridge in 1994, where he served as president. In June of this year, Bremer Financial merged the Breckenridge bank with its Alexandria, Minn., bank; about a month before Wierschem left for Wisconsin.

But the consolidation wasn't the reason he left.

Wierschem said he sought the challenge of working at an independent bank. As a regional banking power with $4 billion in assets, Bremer Financial really didn't qualify, though the organization had been good to Wierschem.

"I really wanted to get into a situation where there was a true community, independent bank, and the opportunity came up in Waterloo," Wierschem said.

He took over as Farmers & Merchants' leader on July 31, and brought with him his wife, Mary, and children, Joe, 20; Katie, 17 and Patrick, 15. The move not only boosted his career, but also got them closer to their oldest son, a student at the nearby University of Wisconsin in Madison.

Waterloo is in the heart of an expanding population corridor.

Roughly 24 miles east of Madison, the city is located between the state capital and Milwaukee, providing Waterloo and its surrounding area with a growing population of workers, many of whom commute to those larger cities. The city of Marshall, a few miles east of Waterloo, is a bedroom community to Madison and the home of Farmers & Merchants State's sole branch.

"It's filling in between [Madison and Milwaukee], and Waterloo and Marshall are two locations that benefit," said Wierschem, whose bank focuses on real estate lending.

He noted Waterloo has more workers than citizens as companies based in the city include leading bicycle manufacturer Trek Bicycle Corp. and Perry Judd's Inc., which produces magazines for Time, Sports Illustrated and People.

The move to Wisconsin has made Wierschem optimistic about his future and the state of community banking. He knows small banks have a lot to prove against the banking giants. But, then again, maybe not.

"It gets a little daunting what the big guys do, but there always will be a role for community banks. I am excited about the opportunities that community banking offers."