Minnesota independents hire banker as President/CEO

Northwestern Financial Review, Apr 15-Apr 30, 2007 by Bengtson, Tom

Following the example of its national counterpart, the Independent Community Bankers of Minnesota have hired a hanker to be its now president and chief executive officer. Marshall MacKay, who has been a banker for 34 years, takes the new post on May 1. just in time to get involved with a series of important events for the organization.

May 15-16, ICBM hosts isTechXpo trade show in St. Paul: mid-June the organization conducts a strategic planning session, and August 9-12, ICBM hosts is annual convention.

MacKay is chairman and CEO of Community Bank Plymouth, a $63 million bank that opened in November, 2000. He also is president and CEO of the bank's holding company. CommunityOne Banes hares. Inc. From 1973 to 2000, he worked at First Bank Systems in several Midwest locations, including Sioux Falls, S.D.; Fargo, N.D.; and Miles City, Mont. He also worked at First Bank offices in Minnesota at Hopkins. Edina, and downtown Minneapolis. Currently, MacKay is treasurer on the ICBM board of directors, and recently was elected to the ICBA board of directors.

MacKay will join a small group of trade association leaders who have come out of the banking industry, including Don Hole, president and CEO of the Iowa Independent Bankers, and Joe DeHaven. president of the Indiana Bankers Association. The Independent Community Bankers of America hired former banker Camden Fine to take over when Ken Guenther retired three years ago. MacKay called Fine an inspiration.

"I was inspired listening to Cam in Hawaii," commented MacKay, referring to the ICBA annual convention, which was in Honolulu last month. "He showed that the little guys can band together and do big things. He has a real passion and I share that passion as well."

ICBM leadership trunsitioned association executives with near-lightning speed. William Haddeland announced his resignation Feb. 8. On Feb. 21, at an ICBM board meeting. Chairman Brian Nicklason asked if anyone could think of anyone interested in the job. MacKay, who was at the meeting, said the question got him thinking.

MacKav informed Nicklason of his interest. Nicklason, president of Woodland Bank in Rein LT, and the other m timbers of the executive committee - Bob Bauman, Financial Security Bank. Kerkhoven; Mike Byrne, Lake C'ommunity Bank. Long Lake; and Jim Espeland, First National Bank. Kenning - visited with MacKay about the job in Hawaii where they were participating in the ICBA convention. Although MacKay was on the IGBM executive committee, MacKay had earlier recused himself from the search proceedings.

Nicklason then recommended MacKay's name to the search committee the organization had formed, and the committee endorsed him. The announcement was made to the ICBM leadership on March 22 and a press release went out on March 26.

The procedure is in stark contrast to the hiring of Haddeland in 2003. When former executive Al Olson left, the association hired RSM McGladrey to help with the search and 145 resumes were considered before Haddeland was hired. This time, there was no help from a professional search firm and Nicklason said that in addition to MacKay, only one other candidate - also a former banker - was considered. Nicklason said he also contacted one of the finalists considered for the job in 2003; this time around, however, he said he was not interested.

"I told my board and the shareholders all along that the only thing that could pull me away from the bank is an opportunity to do something bigger with community banks," MacKay, 56, said of his decision to accept the ICBM post.

"I have absolutely no doubt that he is the most perfect hire we could have made," Nicklason said. "I just couldn't be more pleased."

Nicklason said that he had expected the hiring process to take six to eight months. "As we looketl to other organizations and assessed what has worked and what hasn't we realized we wanted a banker," Nicklason explained. "It is working for ICBA and ultimately we hired a guy we are comfortable with."

MacKay will resign his positions with the bank and holding company, but he will remain on their board of directors at least through 2007. MacKay said that he has sought the counsel of both Haddeland and Olson. MacKay and Olson both serve on the board of the Augustana Care Corporation.

MacKay said he wants to increase the value of ICBM membership, and will work with vendors and other organizations to provide the best array of products and services possible. MacKay. who served on the board of the Minnesota Bankers Association in 1997-98, said lie is interested in bridging a relationship with MBA.

MacKay has very limited legislative experience. He has served on association legislative committees and has been a regular at associationsponsored events bringing bankers and legislators together. MacKay said ICBM is in great shape to continue to lobby effectively under the leadership of its vice president of government relations, David Skilbred. Nicklason noted that with a banking background, MacKay may be in better position to judge the industry's interest in specific legislative issues. Past leadership typically surveyed membership to get a reading on industry interest.