Wisconsin bank extends business arm to Boston

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

Heartland Business Bank, an arm of Wisconsin Community Bank, Cottage Grove, has opened a loan production office in a seemingly unlikely place: Boston. Bank President Tom Wilkinson said the move, however, makes perfect sense.

"We could have moved almost anywhere in New England, quite frankly," said Wilkinson. "This is no secret, but there is a huge amount of business in the Northeast. We could have opened an office in upstate New York and tapped into those opportunities as well. It just so happens that the individuals that came aboard to open the office knew the Boston area best."

Heartland Business Bank, which launched in 1999, moves into Boston with a strong Midwestern foothold providing support. Its main body of business comes from offices in Sheboygan and Green Bay, Wis. It also has an office in Minneapolis. In five years, the bank has grown to more than $100 million in assets.

"It's done very well," said Wilkinson. "Remarkably well, if fact. We expect that growth to continue."

Wilkinson said Heartland's commercial success is due to its focus. "It's not a community bank in the model of Wisconsin Community Bank," he said. "It's goal is much more specific."

As for Wisconsin Community Bank, it too has enjoyed growth, adding $180 million in assets in four years to reach $380 million. One year ago, the bank opened a new office in Fitchburg, Wis., and has plans to further expand.

"We have purchased some land in Madison and we expect to open a branch at that location by the end of next year," Wilkinson said.

Kansas community bank joins Wichita fray

Rose Hill Bank, Kan., is opening a branch 10 miles up the road in Wichita.

"Our new bank was designed to be convenient to many of our existing customers," said President Rocky Waitt. "It is ideally positioned to serve the area's new housing and commercial developments currently under way."

Bryan White, a 15-year banking industry veteran, leads the branch as vice president/branch manager.

"We have numerous customers who live in Wichita," said White. "We obviously want to retain our customer base, and a number of banks have sprung up between Rose Hill and Wichita. If a customer has to drive 10 miles to do their banking, and they pass 10 other banks along the way, we're susceptible to losing them."

Rose Hill Bank will not be alone in its pursuit of customers in the high-growth area.

"Just on the corner where we opened, there are three other banks within 200 feet - and more going up every day it seems," White said.

The Wichita market is somewhat of a departure for the $111 million bank, which commands a good piece of business in Rose Hill, a town of 5,000 people, White said. Rose Hill Bank's branch 12 miles east in Augusta holds similar sway in that town.

"The Wichita branch is where we'll really be able to compete against the bigger banks, and we have an advantage," White said. "We're more personal. We can do things a little faster. We keep loan officers in the branches, so we can do loans on the spot."

White has previous experience opening a new shop. Before coming to Rose Hill Bank, he helped Prairie State Bank, Augusta, open a branch in Rose Hill.

"One of the biggest challenges is getting your staff together," said White. "But we've been lucky. We've found some good individuals and I think we've got the staff together we need to compete."

Nebraska bank consolidates, changes name

The American Bank, Burr, Neb., has completed an acquisition of its sister bank, The First National Bank of Unadilla. The resulting entity has been named Countryside Bank. The First National Bank and American Bank had formerly operated under national and state charters, respectively. Countryside Bank will adopt a single state charter with its main office in Unadilla.

"The way my attorney explains all of this to me, it's all apparently very simple," quipped President Bob Brandt.

Brandt, whose family has a 97-year history as bankers in the area, said his experience with both charters gave him perspective on which would serve the new institution better. "We've had a stand-alone state bank and a standalone national bank for a long time," he said. "Knowing what we know, we decided that state charter was a better fit for us."

Brandt said the public has taken the change in stride. "It was a nonevent," said Brandt. "A bank is people. It's not a name. And you know, whenever banks merge, the service gets better. You can tell by reading the advertisements! But really, that is the case in our bank. Our smaller bank in Burr didn't have ATM cards and Visa debit cards that they'll have now."

The $40 million Countryside also operates a branch in Syracuse, Neb.