Wisconsin bank moving into resort area

Northwestern Financial Review, Sep 1-Sep 14, 2004 by Dullum, Justin

The Farmers & Merchants Bank & Trust, Marinette, Wis., is opening a branch in Crivitz. The bank looks to serve the area's growing economy, which is poised to swell upon completion of a new state park.

When fully developed, Wisconsin's Tommy G. Thompson Centennial State Park will be a 2,187-acre park in the north woods of Marinette County. It includes 1,987 acres of the former Woods Lake Resort. There are 200 acres of wild lakefront on Woods Lake and Huber Lake, in addition to several cold, clear trout-inhabited streams.

"Crivitz is the fastest growing community in this county," said Farmers & Merchants President Thomas Maxwell.

The area has a high number of vacation homes and hosts a steady stream of tourists. Meanwhile, the resident population sits around 1,000. The bank will focus its service on the local small business community, in addition to vacationers and tourists.

"Having customers of that nature definitely changes the approach we'll have to take, and how to characterize those differences is something we're working out right now," said Maxwell. "We're working hard on a strategy."

Maxwell said the strategy will include an aggressive ad campaign.

The bank won't be alone in Crivitz. Bank Mutual, which is a savings and loan, has a facility there. And Bank North, a $97 million bank, is based there.

"We feel there is quite a bit of competition," said Maxwell. "But we also think there is room and we are confident we can find our niche."

The $135 million Farmers & Merchants has purchased land in Crivitz and hired a design and build firm. Construction is expected to begin in October.

Kansas bank seizes opportunity

Partly influenced by the departure of a competitor, Plains State Bank, Plains, Kan., is moving into the Lakin market.

"We understood that Midwest Community Bank was leaving that area," said Clay Phillips, president of Plains State Bank. "I also had some previous experience in that community with Fidelity Bank in Garden City - years ago before Commerce Bank bought them. So I already knew the demographics of the town. We felt like it was an opportunity."

As the crow flies, Plains is 87 miles from Lakin. Plains has an ag-based economy centered on corn, wheat, beans and some cotton. "We're not a county seat," said Phillips. "So we have the same basic problems a lot of community banks have and that small towns have. Small businesses are having a hard time competing with Wal-Mart."

Lakin, on the other hand, is a county seat and the bank's presence there will give it a measure of stability and diversity, Phillips said.

The Lakin branch, with a staff of three, is the first for Plains State Bank, which recently topped $51 million in assets. The bank bought the old Midwest Community Bank facility and opened for business in July.

"So far it's done better than we anticipated," said Phillips. "We relied on word of mouth and it's been doing real well."

First National Bank of Kiester converts to a state bank

First National Bank of Kiester, Minn., is now First State Bank of Kiester. Don Van Hove, the bank's vice president, said the state regulator is more in tune with the $20 million bank's style.

"It's simply a better fit," said Van Hove. "We're a small, independent bank - farmer oriented. The state does stuff in a way that fits our philosophy better."

The process was straight forward, said Van Hove, and the bank's daily operations were uninterrupted. "It didn't take too long," he said. "We started the conversion this spring and the state was very helpful."

When it came time to put up the new sign, customers took note.

"People asked 'Why the change?' and we'd basically tell them the state regulator works better for us and they would say, OK!'," said Van Hove. "The customers haven't been too concerned and those that have noticed were more curious then they were alarmed. Once they understood our rationale, they were fine."

First State Bank of Kiester, which sits five miles north of the Iowa border, has one other branch, located in Conger, Minn. The bank is having a good run with its two locations. "The last two years have been good for the farmers in our area," said Van Hove.

New Minnesota bank to get thrift charter

The new bank slated for Annandale, Minn., will have a federal savings bank charter. Last fall, Hopkins, Minn.-based Midwest Bancorporation announced plans to open a bank in Annandale. Since then, the holding company has withdrawn its application from the Office of the Comptroller of the Currency and refiled with the Office of Thrift Supervision. The Annandale Advocate, the local newspaper, recently featured bank owner Harold Wahlquist on its front page as he announced the new bank is slated to open in the coming weeks. Midwest Bancorporation owns Star Bank, N.A. in Bertha, Minn. The Advocate reported that the new bank will be managed by Brian Williams, former president of the Alexandria office of U.S. Bank.