Wisconsin mortgage banker is a one-woman branch

Northwestern Financial Review, Jul 1-Jul 14, 2005 by Dullum, Justin

Oak Bank, Fitchburg, Wis., has opened a loan production office in Waunakee, Wis. The new office is on a mission: it will offer only mortgage loans. Nancy Wescott will be the sole occupant of the new office.

"Nancy lives in the Waunakee area and would drive the 45 miles into Fitchburg everyday," said bank President Robert Gorsuch. "We casually talked a while back that we could research the possibility of a mortgage office in Waunakee. It wasn't very long before she had a PowerPoint presentation together outlining a plan."

The office opened April 1. Wescott said the solo act is taking some getting used to.

"Usually you have to get along with your co-workers," said Wescott. "All I have to do is get along with myself!"

While there are advantages to running an office alone, some benefits are a double-edged sword.

"I find I can be more productive and focused," said Wescott. "There's a lot less chatting around the water cooler. But if I need a certain file or some information, I have to call the main bank. Doing all the small things without any assistance can be a challenge. But managing my time is much easier. Being closer to my three children helps immensely. I do not waste time driving back and forth when child duties call."

Wescott said the Waunakee demographics are similar to Fitchburg and its proximity to Madison, an airport and Interstate Highway 94 all contribute to steady growth. Gorsuch said the office is far enough away from the bank's headquarters to eliminate market overlap. Now, it's up to Wescott.

"We found a small place with a oneyear lease and we'll see if we can turn a profit in one year," said Gorsuch. "If not, we won't renew. But we feel Nancy will make it work. If anyone can do it, it's her."

Wescott is equally confident. She's joined the local chamber and rotary club, runs ads in the local paper, and is leveraging all her contacts in the area. Plus, she has a secret weapon: cookies.

"If I've got a client coming to my little office, I bake up some fresh cookies," said Wescott. "Sugar is an effective tactic. The main bank always has fresh cookies on hand. Oak Bank has a very homey feel and I'm creating that here too. We're very high touch."

Oak Bank was chartered in August of 2000 and has grown to $140 million in assets.

North Dakota bank bets on Wal-Mart

Choice Financial, Grafton, N.D., is opening two new Wal-Mart SuperCenter branches, one in Fargo and one in Grand Forks. The Choice Financial branch in Fargo opened in late May. The Grand Forks Wal-Mart branch has been approved and will open in 2006.

"The opening of a branch location in the Wal-Mart SuperCenter gives us the opportunity to expand the availability of our services to a wider consumer group in the growing Fargo and West Fargo markets," said Lynn Paulson, CEO of Choice Financial. "These branches will also provide added convenience to our existing customer base."

Choice Financial will partner with Financial Supermarkets, Inc., of Cornelia, Ga., to open the branches. FSI specializes in assisting companies in the administration, marketing, hiring and management of branch facilities.

Alton Wingate, FSI founder and president, said his company has worked with many Midwest banks.

"Our role in the process begins with the retailer," said Wingate. "We design the space and give input into how to build it properly. Then, we find the right bank to fill the space."

Wingate said he looks for banks that focus on retail offerings.

"The benefit is that you get 25,000 customers a week walking by your branch, which costs one-fifth of a standard brick and mortar location," Wingate said.

Indiana banks merge on Main Street

Jasper-based German American Bancorp, Jasper, Ind., will acquire Peoples Community Bank for $6.7 million in cash and stock. The move will merge the $35 million Peoples into the $81 million First State Bank, an affiliate of the $965 million German American Bancorp. The deal is expected to close in the third or fourth quarter.

The future of the two offices in Tell City, however, remain up in the air. One block separates First State and PCB's Tell City Main Street offices. Any decision regarding the PCB building's fate will be "made at a later point in time," said Neil Dauby, First State Bank's president.

Dauby said the banks' proximity represents part of the union's initial advantage.

"This combination allows both organizations to significantly leverage our operating efficiencies," Dauby said.

"Our board of directors believes that the merger is in the best interests of our shareholders, employees, customers and the local community," said PCB Chairman James Taylor, who will also serve on the First State Bank board following the merger.