Convention notebook Geiger honored by MBA as Bank Champion

Northwestern Financial Review, Jul 15-Jul 31, 2008

Gary Geiger, CEO of Heritage Bancshares Group Inc., of Willmar, Minn., was honored with the Bank Champion Award presented by the Minnesota Bankers Association. The announcement was made at the association's annual convention in Rochester last month.

Geiger was selected because of his "extreme dedication to banking and his community," an MBA press release explained. Geiger has been involved in banking for more than 30 years and currently serves as a director for Heritage Bank in Willmar. He was chairman of the Minnesota Bankers Association in 2004-2005. He also has been involved with the American Bankers Association. Geiger serves on several boards and committees in Willmar and Kandiyohi County.

The Bank Champion Award was established to recognize a banker who has been a "champion of banking" through pro-active leadership that supports the best interests of Minnesota's banking community. Bankers were nominated by their peers and judged on involvement in banking, their community and the legislature.

"Gary has dedicated his life to serving as a champion for his customers and his community, and is representative of what this award symbolizes," said Joe Witt, MBA president/CEO.

Pioneer Club welcomes members

The MBA inducted seven bankers into its Pioneer Club, a group of people who have been in the banking industry 50 or more years. Inducted at the MBA convention last month were: Robert F. Foley, Sr., Citizens State Bank of Roseau; G.A. Beito, Northern State Bank, Gonvick; Louis Fiskum, First National Bank of Henning; Geraldine Sons, State Bank of Belle Plaine; Paul Vollan, Lake Region Bank, New London; Michael Lillehaugen, Alexandria; and Paul Lindholm, security State Bank, Fergus Falls.

MBA leader articulates top challenge

2008-2009 MBA Chairman Brad Bakken. Citizens Independent Bank, St. Louis Park, noted the ongoing challenge of dealing with the current mortgage environment.

"As an industry, our biggest challenge continues to be the mortgage foreclosure crisis," he said in his first speech to the membership as chairman. "We will continue to look forward to meeting the challenges of this situation, with increased efforts and a continued partnership with the Minnesota Home Ownership Center."

Credit unions want your customers

Ron Galloway, an expert on Wal-Mart and other competitive threats to the banking industry, described the way the world's largest retailer uses its technology and logistics superiority to dominate markets. (Look for more on Galloway in an upcoming issue of Northwestern Financial Review when we look at new threats from Wal-Mart.)

Galloway said he frequently speaks to credit union groups. "Credit unions are very serious about coming after you," he said. 'One reason they haven't been very successful is there are 7.700 of them. To this point, they have not been able to have a unified lobbying effort. They are being disingenuous when they say there are not coming after your business."

HSAs part of the health care solution

Also speaking to Minnesota bankers was Jeff Korsmo. chief administrative officer for the Mayo Clinic. He spoke about the complexity of the health services industry. Responding to a question, he said Health Savings Accounts will be part of the future delivery of health care. Consumer choice is a growing theme in health care, he said, and HSAs facilitate choice. He said there is a concern, however, about HSAs and other approaches providing what he called "the wrong incentives."

"We want to make sure it does not provide disincentives to get care needed," he said.

New officers at MBA

Steve Moore, correspondent banking manager for U.S. Bank in St. Paul, was elected MBA Treasurer/ Vice Chairman at the association's convention. The position puts him in line to be chairman of the organization in 2010-2011.

In addition, three bankers were welcomed to the MBA board at the convention: Bryan Bruns, Annandale State Bank; Steve Erdall, Western Bank. St. Paul, and Gail Mikolich, Northeast Bank, Minneapolis.

A bad idea

Following up on NorthWestern Financial Review's July 1-14 edition cover story on global warming, Wells Fargo economist Michael Swanson was asked about the impact of a cap and trade system on the economy.

"It would screw it up. Basically you are going to put all kinds of bureaucracy on top of the economy and artificially impose some kind of cost structure," he said. "I am a market economist, and I think that is really not a good idea. You are going to put a whole bunch of bureaucrats in charge of a system, who have no idea what it is to make payroll. They have no responsibility. Regulators regulate. You put a cap and trade system in place, all you are doing is inviting someone who has no real skin in the game and put them in charge of it. I can't be any more negative about a cap and trade system."