Wisdom of Weiss, The

Northwestern Financial Review, Jan 15-Jan 31, 2004 by Dullum, Justin

Bob Weiss aggressively expands community bank while taking leadership roles in the industry

Robert Weiss, North*Western Fi-nancial Review's 2004 Banker of the Year, is a builder. He's built the $165 million Beacon Bank in Shorewood, Minn., from the tiny First State Bank of New Germany he bought in 1990. And he's built his community in the Twin Cities' western suburbs through work on countless boards.

Ask him about his latest endeavor and his enthusiasm bubbles over. He's leading the renovation of Excelsior Commons, the largest public space on the shore of Lake Minnetonka. Weiss gladly shows anyone interested a collection of mounted architectural renderings of a lakefront park with recreational facilities and an outdoor band shell.

"We're working with the city to renovate the entire park," said Weiss, smiling broadly. "This has been the most exciting thing I've worked on in a non-profit capacity." Weiss co-founded the Legacy Foundation, the group that is managing the park's privately funded facelift.

It's typical of this banker, whose friends and associates characterize him as a 'man of action' - someone who starts things and is willing to take chances. What's the latest action for Weiss? He's opening bank branches in two new markets: Duluth and Chanhassen.

The catalyst for Weiss was his experience at Harvard University, where in 1997 he graduated with a three-year, Owner/President/Manager degree. "That changed my whole thought process on business," Weiss said. "After that happened, we came back and changed the name of our organization and set off in a whole different direction. Harvard taught me the value of establishing your brand way before branding was something people worried about. I became focused on strategic direction. Harvard taught me discipline and how to communicate better. It was tremendous."

Expansion planning began to culminate in October of 2002 when, in a strategic planning session, Weiss and his board decided they were going to begin aggressively branching. Consultant Jeff Prouty worked with Weiss while the bank explored options.

"Bob has a definite strategy for growth - one he worked hard to develop," said Prouty. "Clearly a big part of Bob's thinking is to find good people and let them run. I think he's done a good job of finding superstars in banking and doing just that."

From Duluth to Chanhassen

Weiss' philosophy begins and ends with hiring people who are closely tied to their community.

"For us to expand, we need the right people," said Weiss. "We need the right personalities. It's all about relationships. A lot of people swear it's location, location, location. We don't. We think it's all about relationships."

During the research stage of the expansion planning, a unique opportunity presented itself 180 miles northeast of Shorewood. Tim Meininger, a longtime Duluth banker, unexpectedly became available.

The two had grown acquainted through their involvement with the Minnesota Bankers Association. Meininger served as president of the group two years after Weiss. Their families spent time together. Over the years, they had become good friends.

"I was home snow-blowing my driveway when I thought, 'We ought to start a bank in Duluth'," said Weiss, describing the moment of clarity during which it also occurred to him that the imagery of a beacon would work well in a town on the shores of Lake Superior.

Meininger agreed to the idea and soon a deal was hammered out. A 6,000-square-foot Beacon Bank facility opened in Duluth in 2002. Weiss was taking a chance in a market commanded by large institutions and established community banks. He and Meininger created a niche by stressing high-touch service.

"I've got three tellers who work in what really are small offices," said Meininger, describing the bank's emphasis on customer privacy. "A lot of people give privacy lip service, but we actually made a physical change to show our commitment. It's gone over well."

Weiss has long advocated the importance of personal financial privacy. "When I used to teach banking, one of the things I would emphasize is that an individual's finances are a very private matter," said Weiss. "I think that's true with everybody."

The Duluth numbers make it difficult to argue with him. By the end of 2003, the Duluth bank was pushing $30 million and cutting the ribbon on a second branch.

While the Duluth move was bold, Weiss' latest move into Chanhassen, a 10-mile jaunt from Shorewood, appears risky on the surface. The affluent Chanhassen area is anything but underserved. Currently, six banks directly serve the Twin Cities suburb, population 23,000. One of those is Chaska-based Community Bank, which opened a temporary branch in Chanhassen in August 2003. The bank plans to build a permanent facility in 2004. Weiss, sticking fast to his philosophy of finding the right people, remains confident there is room for a seventh player. Kevin McShane, coming off 15 years as president of the $115 million State Bank of Chanhassen, will lead the branch, slated to open within the next few weeks.