Notes, news and views on community banking

Northwestern Financial Review, Jul 15-Jul 31, 2004

New chair of Minnesota Bankers outlines ambitious goals

Gary Geiger, who became chair of the Minnesota Bankers Association at its annual convention June 21-22, set several goals for the coming year. He noted banks held 30 percent of the financial assets in the country in 1972; today that is about 20 percent. "It is time to take some focused action and do something about it," he said.

Grass roots activism is the key, he said, to re-establishing a market in which banks can compete more effectively. The industry needs to fight against encroachment into its business by credit unions, Farm Credit System institutions and other tax-advantaged financial institutions.

Geiger said he would like to see 1 percent of the industry's Minnesota employees attend MBA's Bank Day at the Capitol. The next one is January 26, 2005. One percent of the state's employees would be 500 people. In record attendance in 2004, just over 200 people attended.

Great grits

Geiger further urged bankers to join him on the association's annual Washington D.C., legislative trip, conducted each spring. He said he would like to see at least 125 bankers go on the trip, which typically has attracted about 35 people. He noted the meetings that are included in the trip, including visits to the American Bankers Association and the various regulatory agencies. If that isn't enough to convince bankers to sign up, Geiger offered one more incentive. "If you haven't had breakfast at the FDIC executive dining room, you should try it," he said. "Their cheese grits are great."

Not much expected

ABA Chairman-elect Betsy Duke, speaking at the Minnesota Bankers Association convention, said the American Bankers Association expects no banking legislation to pass before the election. She said, however, that Eep. Mike Oxley, has indicated that progress may be made on regulatory relief and FDIC reform soon after the elections.

MBA membership up

Joe Witt and his managers have visited almost 200 banks since Witt became chief executive of the Minnesota Bankers Association a little over a year ago. At the association's annual convention, it was reported that membership has increased to 463 financial institutions, or 91.1 percent of all the eligible banks and S&Ls, That is up from last year. MBA has 110 associate members.

At the convention, bankers voted to join many other state banker associations by changing the elected leadership titles to chair, chair-elect and vice-chair/treasure. Also the executive vice president's title was changed to president/CEO.

Chicago's Harris consolidates some charters, completes buy

Harris Bank, Chicago, is planning to consolidate 25 of its Illinois charters into one national bank charter with headquarters located in downtown Chicago. The $30 billion bank filed an application with the Office of the Comptroller of the Currency for regulatory approval and said it expects the consolidation to be complete in early 2005. Harris Bank operates 160 full-service offices throughout the Chicago area.

Charter consolidation is a regulatory initiative by Harris Bank to simplify its structure; the move will not impact its community banking model, according to a news release.

Also, Harris Bank and its holding company, BMO Financial Group, completed its acquisition of New Lenox State Bank, New Lenox, 111. Harris Bank announced the acquisition last February and reportedly paid $228.5 million for New Lenox's eight offices.

Chase brand trumps Bank One's

Bank One customers in Illinois may want to snap a photo of their local Bank One branch because in a few weeks, the Bank One name will disappear from the landscape. J.P.Morgan Chase & Co. will dispose of the Bank One brand once it completes its acquisition of the bank. The decision to move forward with the Chase brand for consumer banking, credit cards, small and mid-size lending, and home and automobile finance, was announced last month after research indicated the name was stronger than the Bank One brand. Investment and wealth management services will be conducted under the J.P. Morgan brand.

Dakota banking school in session

Approximately 50 bankers from North Dakota and South Dakota invested in their banking careers by attending the week-long Dakota School of Banking in Jamestown, N.D., last month. Students are enrolled for two years; this year's session had 30 first-year students and 20 second-year students in attendance.

"The school is designed to meet the needs of beginning and mid-level bank personnel," said Dorothy Huber, senior vice president of education for the North Dakota Bankers Association, which sponsors the school. "It provides focused education for bankers who seek a better understanding of the industry and advancement in their careers." Instructors at the school include North Dakota bankers, attorneys, accountants and consultants. Lessons combine lecture, hands-on learning and testing. The Dakota School of Banking is endorsed by the South Dakota Bankers Association.

Bank chooses imaging system

Washington County Bank of Oakdale, Minn., is using Optima Enterprise Transaction Processing from Wausau Financial Systems for imaging. The system, which captures images at the point of presentment, enables Washington County Bank to participate in image exchange by sending and receiving check image files.