Volume 13, No. 4 - Community Bankerscommunitybankers.org/media/issues/july-august-2010.pdf · 455...

Volume 13, No. 4July/August 2010

Inside:

Education, Golf Features of Member Appreciation Days . . . . . . . . . . . . . . . . . . . . . . . 4

Community Bankers of Wisconsin Member Appreciation Days Golf Results . . . . . . . 8

Th e Road Less Travelled: Th e Growing Popularity of Receiverships . . . . . . . . . . . . . 10

Exhibit Hall Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Meet the 7th Congressional District Candidates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

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July/August 2010 Wisconsin Community Banking News 3

Published by Community Bankers of Wisconsin

through Client Communications

Editor and Publisher: Doris Green

Contributor: Mary Lou Santovec

Art Director: Lisa Imhoff , Grey Horse Studio

Editorial or subscriptions: e-mail Doris Green at

[email protected] or fax (608) 583-2084

Advertising: Penny Heberlein, CBW vice president,

membership services, at (608)833-4229 or contact Doris Green

COMMUNITY BANKERS OF WISCONSIN

BOARD OF DIRECTORS

2009-2010 CHAIRMAN: Russ Kuehn, Th e First National Bank of Berlin

CHAIRMAN ELECT: Steven Bell, Community State Bank, Union Grove

VICE CHAIRMAN: James Tubbs, State Bank of Cross Plains

PAST CHAIRMAN: Stephen Eager, Union Bank & Trust, Evansville

SECRETARY/TREASURER: Mary Jo Ceniti,

Farmers Savings Bank, Mineral Point

ICBA DIRECTOR: Rick Busch, Royal Bank, Gays Mills

ICBA DIRECTOR: Butch Pomeroy, International Bank of Amherst

Jon Mentink, First Bank of Baldwin

Th omas Reed, Headwaters State Bank, Land O’Lakes

Steve Zeman, Union State Bank, West Salem

Jeff rey Mueller, Collins State Bank, Collins

Stan Leedle, Choice Bank, Oshkosh

Steve Swanson, McFarland State Bank

Gregory Kolton, Foundations Bank, Pewaukee

Craig O’Leary, Farmers & Merchants Bank, Orfordville

Sigurd Bringe, Bank of Deerfi eld

Paul Hoff mann, Monona State Bank

Randolph Malueg, Heritage Bank, Spencer

CBW STAFF

President and CEO: Daryll Lund

Executive Vice President: Rick McGuigan

Senior Vice President (CBW Financial Services): Kevin Christians

Senior Vice President (CBW Financial Services): Phil Hoover

Vice President (Membership Services): Penny Heberlein

Program Administrator: Sandra Gruber

Account Manager and Legislative Assistant: Shannon Schlueter

Account Manager: Jami Erickson

Community Bankers of Wisconsin455 County Road M, Ste. 101

Madison, WI 53719Ph: (608) 833-4229 Fax: (608) 833-8114

E-mail: [email protected]

Wisconsin Community Banking News is provided at no cost to CBW members.

Additional copies may be purchased at the following rates: Member banks, $25

each annual subscription. Nonmember banks may also purchase subscriptions;

cost: $75. To order, e-mail Doris Green, [email protected].

Advocacy Critical to Community BankingRuss Kuehn, CBW Chairman and Chairman of the Board, First National Bank of Berlin

As the end of my year as chairman approaches, I marvel at the outstanding advocacy that CBW has accomplished

this year. As the fi nancial and economic crises unfolded and as the Dodd-Frank legislation was debated and became law, a growing number of consumers came to understand the diff erence between Wall Street banks and Main Street banks. Many CBW members also communicated the benefi ts of community banking to their customers and their communities, as well as to their elected offi cials in Madison and Washington, D.C.

Your continued energy and focus on these issues are critical to the success of our member banks as public offi cials address regulatory changes stemming from the Dodd-Frank Act. You are helping to create a legacy and to ensure that there will be a healthy community banking industry in Wisconsin for decades to come.

CBW’s benefi ts will be visible and available to all of us at our upcoming annual Management Conference and Expo, set for Sept. 15-17, at the Sierra Hotel, Green Bay. You can fi nd details about this conference, which includes the largest trade show of its type in the state, throughout this issue and on our association’s Web site. I encourage you to take advantage of this event to hear outstanding speakers, ask questions of industry vendors, and learn from one another.

Th is issue also contains a report of our Member Apprecia-tion Days (including golf results) and a Counselor’s Corner column exploring the increasing use of receiverships as bank-ruptcy costs escalate (p. 10). In addition, a short report of one of CBW’s most successful awareness building eff orts appears on p. 18. Our association was the fi rst to sponsor a forum where both the Democratic and Republican candidates campaigning in the 7th Congressional District appeared exclusively before a group of community bankers. I hope that this type of forum becomes a part of CBW’s ongoing advocacy work.

Th ank you for the opportunity to serve as your chairman during these roller-coaster times. I’ve received more than I’ve given this year, and I appreciate all that I’ve learned — espe-cially about the strength and value of our association and its members.

I’m looking forward to seeing you in Green Bay and con-tinuing to work with you for the benefi t of Wisconsin com-munity bankers and their association.

Inside…4 Education, Golf Features of Member Appreciation

Days

8 Community Bankers of Wisconsin Member Appreciation Days Golf Results

10 Th e Road Less Travelled: Th e Growing Popularity of Receiverships

14 Exhibit Hall Map

18 Meet the 7th Congressional District Candidates

On our cover... Th e Community Bankers of Wis-consin off ers value-added, profi t-enhancing programs and services to the state’s community bankers through its circle of supportive business partners: the gold, silver, bronze and associate members. It also sponsors many educational oppor-tunities and the annual Management Conference & Expo, this year slated for September 15-17 in Green Bay.

4 Wisconsin Community Banking News July/August 2010

Mary Lou Santovec

These are extraordinary times for community bankers. Events like the three Member Appreciation Days held at Hillcrest Golf and Country Club in Altoona, Th e Bull at Pinehurst Farms in Sheboygan Falls, and Wild Rock Golf Club in Wisconsin Dells, served to con-fi rm that.

Overviews by CBW Chairman Russ Kuehn of First National Bank, Berlin, Michael Marx of ICBA, and Daryll Lund and Rick McGuigan of CBW high-lighted the rapid changes occurring in the industry. Along with their remarks, each location featured presentations from industry specialists followed by an enjoyable aft ernoon of golf and dinner.

Current Regulatory EnvironmentAt Th e Bull in Sheboygan Falls, Eric

Lemke, a partner with RSM McGladrey, provided a regulatory and industry update. The economy shows some positive momentum with increases in personal consumption and consumer confi dence. Residential mortgage and credit card delinquencies have leveled off as have foreclosures. “We’re seeing better quality in the pools of mortgage backed securities issued in 2007.”

Unemployment has dropped from its peak and some manufacturers have added hours and temporary work-ers. Housing sales are up slightly and val-ues are stabilizing although since the tax credit expired, that’s slowed to a crawl.

Lemke observed that while there’s some positive growth, bank examiners are skeptical. “Examiners are taking a pessimistic view,” he said, proceeding to outline the worst-case scenarios.

“Lingering concerns” could be the reason for the examiners’ caution. Despite improvements, overall unem-ployment remains high.

Underwater mortgages, foreclosed homes, and high levels of commercial vacancies, as well as increased commer-cial real estate delinquencies, point to ongoing real estate problems.

States and municipalities are under severe strain with some close to bank-ruptcy. Even the Oracle of Omaha, War-

Education, Golf Features of Member Appreciation Daysren Buff ett, has reduced his exposure here.

Problems loom on the horizon. Sig-nifi cant amounts of risky, high-yield corporate debt and commercial backed securities will come due over the next few years and need to be refi nanced. And, the federal government will be competing with businesses for refi nanc-ing funds.

Another concern: potentially high levels of “shadow inventory.” Sellers are waiting on the sidelines until the market turns and then will fl ood it, bringing down values. “Look at the gap between loan delinquencies and foreclosures,” Lemke said, pointing out that 31 per-cent of delinquent loans haven’t entered the foreclosure process yet. “Th e city of DeKalb, Ill., hasn’t paid Bank of America in 29 months and they haven’t heard from the bank either.”

Last year, 28 percent of fi nancial insti-tutions were under formal or informal enforcement action. More than 10 per-cent or 82 of the 700 banks with TARP

funds failed to pay the quarterly divi-dend in February.

In 2009, there were a total of 140 bank failures, but the number of troubled institutions continues to rise, already surpassing at the end of the fi rst quarter of 2010, the total number for all of 2009.

Contributing factors in 73 failed banks included construction and development lending — particularly in Florida, Nevada, and California. Com-mercial real estate lending contributed to one third of the failures while residen-tial lending represented over 10 percent. Investment impairment brought down three of the 73. “When we went through the cycle in the late ‘80s, investments were one area we didn’t need to worry about,” Lemke said. But banks with sig-nifi cant investments in Fannie Mae and Freddie Mac, mortgage backed securi-ties, and trust preferred securities are

facing closure. While most small community banks

have a 1 or 2 CAMEL rating, the prob-lems are having a direct eff ect on the industry with fewer new charters being granted. Raising capital has become more prevalent. Many banks have con-sidered exchanging trust-preferred secu-rities to common stock.

Regulators are taking “harsher and more frequent regulatory enforcement actions and overall tougher supervision,” Lemke said. “In particular, the OCC is taking very conservative positions and challenging management.”

Th e size of bank examiners’ staff s has increased. Newer examiners may be more rigid and less likely to “negoti-ate” because of inexperience, unfamil-iarity with your bank and management, time pressures, and directives. Banks will have less time for remedial action and promises to act now are less likely to buy time or concessions. Examiners are looking for a robust liquidity con-tingency plan.

Th e bottom line? “Capital (in the bank or in escrow) is your most persuasive argument,” Lemke said. Before your bank falls below minimum capital lev-els, it’s critical to have a detailed

and well-thought out capital plan so you’re not forced to raise capital in a crisis situation. Examiners will be look-ing hard at the classifi ed assets ratio as the key indicator of your bank’s health.

Lemke expects alternative capital raising eff orts to continue. While some banks are converting trust-preferred securities to common stock, others are raising capital through branch sales, divestitures, and loan/security sales. Private equity is even looking at banks as a lucrative investment.

To stay ahead of the game, Lemke encouraged bankers to take a proac-tive approach. “It’s really important for you to have your risks identifi ed for the examiners. Th e risks and the thought processes for them should be written down and documented.”

Th e examination process has become

continued on page 6

“Capital (in the bank or in escrow) is your most persuasive argument.”


Dodd-Frank Act Is Just the Beginning

Daryll Lund, CAE,CBW President

and CEO

“While this is a historic moment, and we have passed strong legisla-tion that remakes the fi nancial services landscape in our country, this is in many ways only the beginning of our eff orts and not the end.” — Senator Tim Johnson, D-South Dakota

Senator Johnson’s comments are a reminder that while work has now

been completed on the Dodd-Frank Wall Street Reform and Consumer Protection Act, community bankers and your trade associations must stay vigilant as new regulatory rules are writ-ten and implemented over the coming months and years. CBW will work with ICBA and fi ght hard to make sure that the precedents set in the Dodd-Frank Act — recognizing the distinct diff er-ences between community banks and too-big-to-fail institutions — are carried through with these new regulations.

Johnson acknowledged the important balance that must take place by stating, “While strong protections were included in this bill, we must ensure that consum-ers, small businesses, and community banks are not negatively aff ected.”

Tiered regulatory treatment for com-munity banks has been a goal of CBW for many years. In 2004, CBW Chairman Gary De Master called on community bankers to support a new “community bank charter” with reduced regulation and taxation for community banks. Th is tiered approach to regulation and taxa-tion was introduced as part of the Com-munities First Act in recent sessions of Congress. CBW, ICBA, and other state community banking associations were strong proponents of this legislation, which advocated a tiered regulatory and supervisory system based upon the size of the institution. Such a system would go a long way toward improving com-munity banks’ ability to compete and serve local communities.

With that as background we fast for-ward to today and now see enacted into law the Dodd-Frank Act, which creates a tiered system of regulation that rec-ognizes the diff erences between com-munity banks and larger, more complex institutions that pose systemic risk to

our nation’s economy. One of the key objectives of a tiered regulatory system is less burdensome rules, as well as certain exemptions for community banks. As the new Dodd-Frank rules are devel-oped, CBW will be advocating for these objectives to be followed.

It remains to be seen how this all plays out for community banks in the years to come. Th ere is no dispute that congressional action was inevitable this year. Th e fi nancial crisis, economic col-lapse, and election year politics made fi nancial reform legislation inevitable. CBW, working with ICBA, made sure that the legislation addressed the ineq-uities that currently exist for too-big-to fail institutions, as well as nonbanks and the unregulated shadow fi nancial sector.

Conference of State Bank Supervisors president and CEO Neil Milner in com-menting on the Dodd-Frank Act stated, “disparate treatment among institutions can be seen in the funding advantage systemic banks enjoy over other insti-tutions. Until this diff erential between institutions is eliminated, then the implications of having “too-big-to fail” banks will be a fi nancial system driven

not by market forces, but by the unequal application of an implied government guarantee of a handful of banks.”

I would like to thank all of the com-munity bankers who made contacts with the Wisconsin congressional del-egation during this long and arduous fi ght. While we are at the dawn of a new beginning, your active and engaged involvement has set the foundation for the community banking industry for years to come. CBW remains committed to the mission of partnering with you as the exclusive voice for the Wisconsin community banking industry.

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Participating ATMsCBW’s ATM Access network has partnered with the In Balance® Alliance off ered by the Independent Community Bankers of Minnesota, to expand surcharge-free access. Cardholders traveling across the Wisconsin-Minnesota border can now freely withdraw money at 900 ATMs.Cardholders driving anywhere in the two states can fi nd the closest surcharge-free ATMs by connecting to the Internet via their Blackberry® or other mobile device. Cardholders can also visit the CBW website (www.communitybankers.org) to search for participating ATMs by city or participating community bank.To learn more, call CBW at 608-833-4229.


a continuous process. Because it can take 90 to 120 days for the examiners to get a report out, Lemke suggested having someone at the exit conference take good notes and put them in a letter that’s sent 30 days aft er the exam. Th e letter should outline what steps your bank has already taken to improve its situation.

Such a strategy would constantly supplement and correct the record. It also gives you the opportunity to frame your unique issues for the examiners and demonstrate that you already understand your situation and your unique risks. “In this kind of environment you don’t want to wait to get on it.”

Executive CompensationFollowing Lemke’s presentation, John Anderson and R.

David Fritz, Jr., both of Executive Benefi ts Network, spoke about trends in executive compensation and bank-owned life insurance (BOLI). Not surprisingly, the trends in executive compensation continue their downward slide. Annual salary increases for CEOs were lower from 2008 to 2009 than from 2007 to 2008 in all asset size categories.

Compensation at large banks was historically the lowest as salaries and bonuses are more weighted on variable compen-sation. Bonus payouts continued to be small or non-existent nationwide. “Th ere was very little bonus activity in 2009,” Anderson said.

Salary at non-TARP banks was slightly higher (2 percent) than at TARP banks (1.1 percent). “Virtually all elements of CEO compensation were lower in TARP versus non-TARP banks.”

So how did banks reward their top performers? Th e use of full value shares in the form of phantom or restricted stock increased in 2009. Non-qualifi ed benefi t plans were also a part of overall compensation packages, as well as split-dollar life insurance, supplemental disability, and long-term care benefi ts. Th ere’s also been an increase in long-term, incentive-driven plans and a decline in defi ned benefi t plans.

Many of these benefi ts refl ect the signs of the times, accord-ing to Anderson. “If the bank closes, you’ll lose stock plus any salary continuation plan you had in place.”

There’s renewed interest in bank-owned life insurance (BOLI), Fritz reported. “We’re getting a lot of calls from banks sitting on cash wanting to stick their toes in the water with BOLI.”

Under the specially designed and negotiated insurance contract that’s funded by a single premium, a bank can have a tax-deferred, tax-free income greater than the premium in the fi rst year. Products vary from whole life to universal life and complexity increases with the type of accounts.

Fritz urged caution when selecting a carrier. Of the more than 1,000 life insurance companies, some 36 of them have sold BOLI. But 11 have withdrawn from that market and an additional 10 have been downgraded by three or more rating services in the past 12 months.

Fritz urged banks that already have BOLI policies to review them while the banks still have the ability to upgrade or change them. He noted, “You don’t have an insurable interest in an individual when they retire or leave the bank.”

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Community Bankers of Wisconsin

Member Appreciation Days Golf Results

First place winners at Th e Bull at Pinehurst Farms on June 30. Left to right: Bill Censky, Investors Community Bank, Manitowoc; Jeff Mulloy and Dave Luebbers, Bank of Luxemburg; and Jeff Niesen, Bankers’ Bank, Madison.

First place winners at Hillcrest on June 24. Left to right: Paul Kohler, Rob Strohbusch, Dean Olson, and Mike Webb, all of Charter Bank in Eau Claire.

Each location of the 2010 Member Appreciation Days featured an aft ernoon golf event where association members showcased their skills on the links.

Hillcrest Golf & Country Club, Altoona – Th ursday, June 24

First place team with a 62: Paul Kohler, Robert Strohbusch, Dean Olson, and Mike Webb of Charter Bank, Eau Claire. Cash prizes were awarded to the winning team members.

Winners of the fl ag events/hole prizes each received clubhouse gift certifi cates.Hole #1 – Long Drive/Men ............... Clark Yolitz, Dairy State Bank, MenomoneeHole #4 – Shortest Drive ................... Rachel Goodell, Unity Bank, AugustaHole #5 – Closest to Pin .................... Scott Kopp, Bank of GalesvilleHole #8 – Longest Putt ...................... Robert Strohbusch, Charter Bank, Eau ClaireHole #10 – Long Drive/Women ........ Traci Hollister, Wipfl i, Eau ClaireHole #12 – Longest Putt ..................... Dean Olson, Charter Bank, Eau ClaireHole #13 – Closest to Pin ................... David Haroldson, Shell Lake State BankHole #16 – Longest Putt ..................... John Anderson, Executive Benefi ts Network,

Milwaukee Hole #18 – Closest to Pin .................. Greg Darga, Royal Bank, Elroy

Th e Bull at Pinehurst Farms, Sheboygan Falls – Wednesday, June 30

A scorecard playoff on Hole #13 determined fi rst place.First place team with a 62: Bill Censky, Investors Community Bank, Manitowoc;

Jeff Mulloy and Dave Luebbers, Bank of Luxemburg; and Jeff Niesen, Bankers’ Bank, Madison. Cash prizes were awarded to the winning team members.

Winners of the fl ag events/hole prizes each received clubhouse gift certifi cates.Hole #1 – Longest Drive ..................... Terry Van Engen, Collins State BankHole #6 – Closest to Pin for Men ...... Jeff Niesen, Bankers’ Bank, MadisonHole #9 – Longest Putt ....................... Guy Nelson, Farmers & Merchants Bank,

Kendall Hole #10 – Longest Drive .................. Paul Foy, Cornerstone Community Bank,

Graft onHole #12 - Closest to Pin ................... Paul Foy, Cornerstone Community Bank,

Graft onHole #15 – Closest to Pin ................... Eric Lemke, McGladrey, Schaumburg, ILHole #17 – Closest to Pin in 2 ............ Jon Heller, Th e Bank of New GlarusHole #18 – Longest Putt ..................... Jon Heller, Th e Bank of New Glarus

Wild Rock Golf Club, Wisconsin Dells – Wednesday, July 21

A scorecard playoff on Hole #16 determined fi rst place.First place team with a 66: Bob Klockars, Walworth State Bank; Duane Rogers,

Peoples State Bank, Prairie du Chien; Ken Utter, Wipfl i, Madison; and Steve Eager, Union Bank & Trust Co., Evansville. Cash prizes were awarded to the winning team members.

Winners of the fl ag events/hole prizes each received clubhouse gift certifi cates.Hole #1 - Longest Drive ...................... Dennis Stephenson, Union Bank of BlairHole #2 - Longest Putt ........................ Kelly Bauer, Bank of Wisconsin DellsHole #3 - Closest to Pin in 2 .............. Peter Kujawa, Farmers & Merchants Bank,

BerlinHole #4 - Longest Putt ........................ David Sawdey, Bank of MonticelloHole #5 - Closest in 2 .......................... Marty Reinhart, Heritage Bank, Marshfi eld

First place winners at Wild Rock Golf Club in Wisconsin Dells on July 21. Left to right: Bob Klockars, Walworth State Bank; Duane Rogers, Peoples State Bank, Prairie du Chien; Ken Utter, Wipfl i, Madison; and Steve Eager, Union Bank & Trust Company, Evansville.


Hole #6 - Closest in 3 .......................... Justin Ikert, First National Bank, BangorHole #7 - Closest Chip off Green ...... Larry Gehrke, Bank of Wisconsin DellsHole #8 - Longest Putt ........................ Mike Marx, ICBAHole #9 - Closest to Pin ...................... Tom Jensen, First National Bank, BerlinHole #10 - Closest to Pin in 3 ............ Eric Cerbins, First National Bank, BerlinHole #11 - Closest to Pin ................... Bob Hart, Royal Bank, ElroyHole #12 - Longest Putt ..................... Jeremy Simplot, Highland State BankHole #13 - Closest to Pin in 2 ............ Adam Anderson, Bank of CashtonHole #14 - Long Drive ........................ Daryll Lund, CBW, MadisonHole #15 - Longest Putt ...................... Jon Bernander, Bank of Wisconsin DellsHole #16 - Closest in 2 ....................... Ron Moilien, Citizens First Bank, ViroquaHole #17 - Closest Chip off Green ... Jack Heding, Royal Bank, ElroyHole #18 - Longest Putt ..................... Jeff Mueller, Collins State Bank

First Bank Financial Centre Lends a Hand

OCONOMOWOC— First Bank Finan-cial Centre (FBFC) donated $2,000 to The Pennys and Nichols Center Inc. (PANC), a non-profi t resource center that’s helping people during these dif-fi cult times. PANC opened its doors in February, 2010 and has already assisted more than 100 families; with an addi-tional 30 families on a waiting list. PANC helps individuals and families become self-suffi cient in a non-judgmental, dig-nifi ed setting.

Th e center boasts a career room, birth-day gift room, living room, kitchen, and storage. Th e career room off ers a com-puter for building resumes and free career wear to those seeking employment. In the birthday gift room, clients can pick a new, small item for gift ing. Th e living room off ers a place for children, while parents work with PANC staff .

Rent money, gas cards, medical pay-ments, electrical bills, car insurance, moving expenses, child support, and homelessness are just a few of the issues

PANC helps to resolve.

Bank Hosts Cookout for CharityLUXEMBURG— Th e Bank of Luxem-burg’s Bellevue branch hosted a neigh-borhood cookout in June raising $643.75 for Paul’s Pantry, a locally funded and supported food pantry in Green Bay.

Crime Prevention for Elderly VeteransOCONOMOWOC— First Bank Finan-cial Centre has joined with the Senior

Housing Crime Prevention Foundation, the American Bankers Association, and the Independent Community Bankers of America to ensure that 40,000 veter-ans living in 160 state veteran nursing homes are able to live out their lives in safe, secure environments. Participating banks allocate a portion of their annual Community Reinvestment Act (CRA) budget to securing the foundation’s suc-cessful Senior Crimestoppers program.

Th e program is a proprietary opera-tion of the foundation, a national non-profi t established to provide a vehicle for banks to earn CRA credit.

Senior Crimestoppers provides resi-dents with their own personal lockbox to safeguard valuables. Cash rewards of up to $1,000 are posted on every crime incident that’s reported to the SCS call center. All facilities in the program regularly receive in-service training for residents, staff , and management along with signage and quarterly reporting of crime prevention status. All facilities also receive an annual Time of Your Life video exhibit and cash contributions for a Wish Comes True grant to be given to select veterans.

COMMUNITY INVOLVEMENT

Christine Miles, PANC, shows Todd Scheid, FBFC, a box of supplies ready to be picked up by a needy family.


Timothy F. Nixon, member, Business Finance & Restructuring, Godfrey & Kahn, S.C.

As bankruptcy costs continue to esca-late, state receiverships are becoming a preferred alterna-tive for asset sales involving dis-tressed debtors. Certainly, costs associated with Chapter 11 require a significant case in terms of dollars and complexity (such as Chrysler, GM, or Lehman). Moreover, recent bankruptcy decisions raise concerns regarding bankruptcy’s predictability as an effi cient means to sell assets for the benefi t of secured creditors. Accord-ingly, banks are renewing interest in state receiverships and assignments for the benefi t of creditors as bankruptcy alternatives.

A receiver is a third party that takes control of a debtor’s assets, under at least nominal court supervision, to adminis-ter those assets for creditors. Most states have legal processes for appointing a receiver.

A related concept is an “assignment

The Road Less Travelled: The Growing Popularity of Receiverships

for benefi t of creditors” or “ABC.” Black’s Law Dictionary defi nes this as “a transfer of legal and equitable title to all debtor’s property to a trustee, with authority to liquidate the debtor’s aff airs and dis-tribute proceeds equitably to creditors.”

Th e words “receiver” or “assignee” are oft en used interchangeably. Originally, an “assignee” meant the party to whom a debtor unilaterally assigned assets and liability for administration — a trustee — while court appointment created “receivers.”

The Uniform Commercial Code recognizes ABCs and provides assign-ees with a perfected lien in the debt-or’s property on assignment [U.C.C. § 9-309 (12) (2005)]. Receivers’ liens also exist at common law and maintain their vitality and priority, surviving a bankruptcy preference challenge when the lien attaches outside of the 90-day preference period.

Evaluating the OptionsWhen a bank and distressed bor-

rower are evaluating options for a legal liquidation process, the objective is to preserve and maximize the asset value and to insulate the bank from potential lender liability. In achieving this objec-tive, the three primary criteria are cost, timeliness, and ability to transfer clear

title. Many times bankruptcy is a long and costly sale process that plays out as asset values diminish. Because a Chapter 7 trustee is not authorized to operate a business without express con-sent, Chapter 11 is oft en the only way to sell a business as a going concern under the Bankruptcy Code. Receiverships and ABCs gener-ally avoid many of these Chapter 11

complications.In comparing Chapter 11 to receiv-

ership, a number of factors should be considered. For instance, the Bank-ruptcy Code provides specifi c benefi ts that a state action does not, but oft en these benefi ts are unnecessary, or some functional analog exists in receiverships. Consequently, each case requires unique evaluation. For example, the Bankruptcy Code, under some circumstances, allows the debtor to impose the use of cash collateral on an unwilling secured credi-tor. Receivership law generally does not permit this.

Bankruptcy courts have national jurisdiction over necessary parties and property. Th at is not a given in receiver-ship, though this concern is frequently overstated. An additional consideration is that the U.S. government may not be bound in alternate procedures. If there are tax issues relating to the U.S. govern-ment, or a state that is not the jurisdic-tion where the receivership is venued, issues may arise in dealing with that creditor. Many times, however, these parties voluntarily participate in the receivership.

In receiverships, the case will usually be in front of a general jurisdiction judge who handles civil, criminal, family, and other areas of law and who may not be familiar with insolvency law and con-cepts, as opposed to a bankruptcy judge who is well versed on the statutes and case law. Th ere is generally not an expan-sive set of rules and law with respect to receiverships.

In the non-bankruptcy alternatives there is no “debtor in possession.” Own-ers and management become the receiv-er’s employees. Th ere is a loss of control by owners and management.

Wisconsin Chapter 128The Wisconsin receivership stat-

ute, Chapter 128, is modeled on the U.S. Bankruptcy Act of 1898. To call the statute a procedural outline implies more substance than exists. Th e process is typically voluntarily commenced by

COUNSELOR’S CORNER

Timothy F. Nixon


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the debtor assigning all of its assets to an assignee recommended by the debtor’s lawyer and/or its secured lender and subsequently appointed by the state court. The number of people acting as assignees on a regular basis is rela-tively small, and generally the choice of a receiver is a relatively simple mat-ter. Receivers should be disinterested because they act as a fi duciary for all creditors, secured and unsecured, as well as shareholders.

A debtor can be forced into a receiv-ership. A single creditor, or creditors, may apply to a court for appointment of a receiver if an execution against the debtor is returned unsatisfi ed, or a corporation is dissolved, insolvent, in imminent danger of insolvency, or has forfeited its corporate rights.

Th e receivership court, at the receiv-er’s request, issues an injunction against any other creditor proceedings against the debtor and its assets. Th is is the func-tional analog to the automatic stay of 11 U.S.C. § 362(a). Th e receiver must give notice to all creditors of the receivership, as well as the injunction and the claims bar date. Th e court supervises the pro-ceedings and may issue any necessary orders and judgments in support. Th e receivership operates with notice and an opportunity for hearing on major events as does bankruptcy. Th e receiver is required to make an inventory of assets and a list of creditors.

A secured creditor only participates at their suff erance because a security

interest cannot be affected without the secured creditor’s consent or by other valid legal proceeding. A secured creditor may become a party by gen-eral appearance or by fi ling a claim for a defi ciency on a secured claim. Most secured creditors choose to participate. For many, a Chapter 128 receivership is their preferred remedy because of the cost savings and ability to maximize asset value.

Most receivers, with court approval, hire a consultant to run the company during the receivership. Current man-agement may remain as the receiver’s employees, a role for which they may be compensated, provided they add value to the process. Th e receiver and debtor’s attorney generally receive compensa-tion during the case. As in a bankruptcy, the receiver may recover preferential transfers. Th e “look back” period is 120 days in Wisconsin and can be longer in other states.

Th e most critical element is that the statute expressly allows the receiver to “pass to the purchaser good title, free and clear of all liens.” Th is is one of the reasons why lenders and purchasers of troubled companies utilize Chapter 128. Th e sale orders look very similar to sale orders issued in bankruptcy courts and provide comfort to the purchaser that it will not be burdened by the debtor’s past problems.

Legal Culture Impact on Choice

Receiverships have varying reputa-tions around the country depending on the legal culture and a particular law fi rm’s familiarity with them. In some places, they are accepted at face value as a cheaper and more effi cient bank-ruptcy alternative. In other places, they are viewed with suspicion as a way for clever debtors to somehow cheat their creditors. Larger law firms generally have more comfort with the extensive bankruptcy code and its case law. Th ere is more certainty and lawyers do not have to learn a diff erent way of doing things. Also, since the costs of a receiver-ship are substantially less than a bank-ruptcy, a fi rm, in addition to having to learn something different, finds that receivership is much less lucrative for the professionals involved. Th ese con-verging and confl icting values frequently lead lawyers away from recommending a receivership. Granted, the “certainty” of the bankruptcy process does have some benefi t, but many times the costs far outweigh those perceived benefi ts.

Each case is diff erent. Yet given the relative risks and benefi ts, and the asso-ciated costs, a state receivership or ABC many times will be in the best inter-est of creditors instead of a bankruptcy when dealing with fi nancially distressed debtors.

Contact Timothy Nixon at 920-436-7693 or [email protected]


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DCS Netlink67

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66Integrated

Security

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63Bank

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ortgage Services

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Mortgage

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48Piranha Paper

Shredding

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48M

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41Edge One

50Zurich

40M

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58Bankers GPS/

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54Bok Financial

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33Secure Banking

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& Co.

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30ICBA Securities

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est Bend

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HEDA38

Executive Benefi ts

28Shazam

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5Zions Bank

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Product Category ListingAccountants*Clift on Gunderson*Lindgren Callihan Van Osdol

ACH*Magic-Wrighter

Alarm / Video*Integrated Security Solutions*Superior Safe & Security

Appraisal Management CompanyRegional Appraisal

Management

Architectural / DesignDesign Unlimited

Asset Liability Management*Th e Baker GroupBankersGPS / Plansmith*Northland Securities

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Capital Markets*M&I Capital Markets

Check 21 / Remote Deposit*CFC Technology

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Collaboration*Th e cbanc Network

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Insurance Specialist*Zurich

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How Print Assessments Can Reduce CostsRod L. Holden, Senior Document Solutions Consultant, Corporate Business Systems

Most banks utilize H.P., Dell, or other print devices for their document output. Th ese devices are networked or stand-alone single use printers and are relatively inexpensive until you look at the total cost of ownership (TCO). Printer manufacturers will almost give the printer away in order to capture aft ermar-ket supply sales. Th e manufacturers oft en decree that you must use their toner for product reliability while spending 20 to 40 percent more money for original equipment manufacturer (OEM) supplies.

Remanufactured toner once was provided by backroom refi llers with quality standards not matching or close to OEM. Supply cartridge yields were based on documents with very little toner on page coverage.

Buying compatible toner is now touted by the major big box offi ce supply stores along with catalog resellers.

The only way for users to truly know what they pay for a page is to go to an

all-inclusive cost-per-page program.

As the copier industry accepted over a decade ago, the only way for users to truly know what they pay for a page is to go to an all-inclusive cost-per-page program. A cost-per-page pricing program will not be aff ected by the amount of toner on a page, thus putting the onus on the vendor to supply high yield, high quality toner, and low maintenance requirements.

Th e fi rst step in determining current costs is an assessment by a reputable vendor. A number of companies off er a tool that will count all devices and pages printed from networked devices. Th e standard period for the count goes from two weeks to one month. Th e tool is placed on print servers or on the devices themselves.

Step two is to determine current toner and replacement drum costs from past invoices. Using an agreed-upon yield for supplies— typically 6 to 7 percent toner coverage for black and 21 percent for color (these are ISO-established standards)— you will have a current cost for supplies. Add all parts and labor along with annual cleanings and you have current TCO. You could add purchase price if considering a new purchase, but that is a one time charge unless you lease.

Now you will see that most of your printers do not share cartridges so pricing is all over the board. Determining vol-ume and supply costs along with parts and labor for a one year period is very important for an accurate snapshot of your “fl eet” costs.

Some vendors will not embrace the cost-per-page concept, because they will lose margin from supply and parts sales.

Th e more printer units your bank has, the greater the potential for savings. Savings of 30 to 40 percent is not uncommon.


In June 2009, the Financial Accounting

Standards Board (FASB) issued Financial

Accounting Standard (FAS) No. 166,

Accounting for Transfers of FinancialAssets, which was later codified in the

Accounting Standards Codification (ASC)

as Topic 860. This standard changes

accounting practices in a number of

ways, but it primarily affects community

institutions when accounting for loan

participations sold. The new guidance is

effective for transfers after the beginning

of an entity’s first annual reporting period

beginning after November 15, 2009.

Because the standard affects only new

transfers, any transfers, including loan

participations, in place prior to the

effective date will not be affected.

ASC Topic 860 provides guidance on

when an entity treats a transfer of

financial assets as a sale or as a secured

borrowing with a transfer of collateral.

If a loan participation is treated as a sale,

the portion of the loan sold is removed

from the loan portfolio of the selling

institution. However, if a loan participation

is treated as a secured borrowing, the

entire loan remains on the transferring

institution’s books, and the institution

records a liability for the secured

borrowing (that is, the portion transferred).

Sale treatment is obviously preferred since

it reduces the loan balance, which allows

the selling institution to meet legal

lending requirements and reduces the

amount of regulatory capital required

to support the loan.

Unfortunately, many common lending

practices that were previously treated

as sales will now be treated as secured

borrowings under the new accounting

rule. Most significantly, any participation

agreement that allows or requires the

selling institution to remit principal

payments first to the participating

institutions and then to the selling

institution after the participants are

paid off (last-in first-out, or “LIFO,”

arrangement) will no longer qualify

for sale treatment. The new guidance

requires all cash flows received from

the loan to be remitted to the selling

institution and the participants in a pro

rata manner. In LIFO and similar

arrangements, the cash flows are not

remitted proportionately to all of the

owners and, consequently, would

disqualify the participation from

receiving sale treatment.

The most difficult participation

arrangement impacting financial

institutions under the new rule involves

the participation of a line of credit. The

difficulty in this arrangement is that the

loan balance can adjust frequently up or

down. To simplify the administrative task

of tracking the draws and payments,

institutions will often use a LIFO

arrangement whereby the selling

institution funds all the draws and

receives all the principal payments up

to a certain point (often the legal lending

limit). When the loan balance exceeds

the limit, the draws are funded by, and

payments received are remitted to, the

participants until the loan balance falls

below the limit.

We believe such an arrangement may

qualify for sale accounting even if the

draws are first funded by the selling

institution and subsequently by the

participating institutions as long as the

payments received from the borrower

are always remitted to the participants

in a pro rata manner. However, based on

discussions with the FDIC, it appears they

do not believe this arrangement qualifies

for sale accounting unless all of the

payments received and draws are remitted

or funded by all of the participants

proportionate to their ownership interest

defined in the participation agreement.

Consequently, we would recommend each

institution talk to its primary regulator to

determine whether the regulator believes

an arrangement qualifies for sale

accounting treatment.

The one bit of positive news is that it

appears the OCC may be revisiting the

legal lending rules to address the issues

created by the new accounting rule. The

head of the Wisconsin Department of

Financial Institutions has also stated they

are looking into the possibility of changing

the rules to allow state institutions with

traditional participation arrangements to

reduce loan balances for legal lending

purposes even though they do not qualify

as sales for accounting purposes.

In order to gain sale treatment when an

institution transfers a portion of a

financial asset, the new accounting

standard also includes restrictions on

recourse provisions, excessive servicing

fees, and interest-only strips. For more

information on the impact the updates

to ASC Topic 860 will have on loan

participations and other transfers of

financial assets, please check out the

Accounting Insight on Wipfli’s Financial

Institution Web page at

http://www.wipfli.com/FinancialAssets.

Visit www.wipfli.com to find over 150additional business and financialinstitution articles.

Accounting for Transfers of FinancialAssets

Brett Schwantes

Senior Manager

www.wipfli.com

www.wipfli.com

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we only vote along party lines, that isn’t bipartisanship.”

Lassa: “It doesn’t matter to me if an idea is a Republican idea or a Demo-cratic idea. All that matters is that it’s good public policy.”

Dodd-Frank Financial Reform ActLassa: “It’s important to play by the

rules. We can’t aff ord to look away from the destruction caused by the big Wall Street banks. Wall Street banks and community banks are diff erent. Th e bad apples on Wall Street shouldn’t aff ect the reputation of the community banks. I believe it should be a two-tier system. I believe that our community banks are a lifeline to our small businesses.”

Duff y: “I didn’t support the bill. We have problems, but a 2,300-page bill is too massive. We used the crisis as an opportunity to massively reform how business is done. I think there’s great exposure for all of you” [in the form of regulations to follow].

RegulationsDuff y: “It’s policies that are coming

from Washington and Madison that are freaking you guys out. Washington wants you to make loans but is tying your hands with regulations … It’s important to let the sun set on regula-tions and review them. [Th ey should] not … stay on the books forever.”

Lassa: “Main Street banks drive com-munity success. Community banks did not engage in bad business practices

Meet the 7th Congressional District Candidates Since U.S. Representative Dave Obey

announced in May that he would retire and not seek reelection aft er more than 40 years of service, the people of the 7th District now face an election free from the persuasiveness of a strong incumbent. And, since the next 7th District congress-man will face many fi nancial and bank-ing issues in Washington, CBW invited the leading Democratic and Republican candidates to a forum exclusively for community bankers in Wausau on Aug. 2, 2010. Th e forum was the fi rst where the two candidates had both participated in the same venue. It was closed to the general media and to non-community bankers.

Th e Republican candidate, former Ashland County District Attorney Sean Duff y, and the Democratic candidate, Wisconsin State Sen. Julie Lassa, par-ticipated in a forum that attracted over 20 community bankers from the district. Th ey responded to questions submitted in advance from the bankers, as well as comments and questions from the fl oor.

Lassa, who grew up on a dairy farm in northern Portage County, was elected to the State Assembly in 1998 serving until 2003 when she won a special election to the State Senate. She graduated from the University of Wisconsin-Stevens Point. Lassa is married to John Moe and together they have two daughters.

Duff y, who is from Hayward, recently concluded 10 years of service to the peo-ple of Ashland County, fi rst as Special Prosecutor, then as D.A. He holds a law degree. He and wife, Rachel, have six children.

Th e interchange proved illuminating. Th e candidates shared their perspectives on the partisan Congress, taxation, and job creation. Th e community bankers learned why Lassa supported the Dodd-Frank Financial Reform Act and Duff y did not. Th e candidates heard about the defi nition and tax advantages of credit unions and the impact of farm credit agency lending, Fannie Mae, and Fred-die Mac, on community banks.

Here are the candidates’ words on a few of the many topics discussed:

Congressional PartisanshipDuff y: “I am beholden to no one.

We need to work across party lines. If

… You need to strike the right balance … We need to review and recognize how society and technology and needs change and what [laws have] become obsolete.”

Credit UnionsDuff y: “Th ose who are members of

credit unions, they love them. But we have to have a competitive marketplace.”

Lassa: “The role that community banks have in providing access to small businesses needs to be recognized… When [credit unions] get into the provi-dence of community banks, they should be taxed.”

Small Business and the U.S. EconomyDuff y: “Th e health reform bill [and]

government debt … undermine stability, so people aren’t investing in their small businesses … We need to make sure we set small businesses up to succeed. ... I don’t believe in too-big-to-fail. [I would have voted] no to TARP. Any stimulus or TARP money not yet spent should be reallocated to the federal debt.”

Lassa: “When I talk with small busi-ness owners, they tell me that they read the headlines and then maybe hold back on hiring. Instead, they add more hours, or they hold back on green energy initia-tives … Whatever we can do to restart the economic engine in this country is important.

For more about both candidates, visit

their Web sites — www.duff yforcongress.

com/ and www.julielassa.com/home.

Sean Duff y Julie Lassa


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The market turmoil of last year took its toll on many BOLI carriers leading to ratings downgrades and increased expenses. Now more than ever, banks need to learn more about what type of BOLI they own.

As financial members of the Northwestern Mutual Financial Network, David Fritz and John Anderson have access to Northwestern Mutual’s unique, high quality BOLI products. Plus, nobody provides better service and answers to your BOLI questions than EBN’s team of professionals.

EBN specializes in the design and administration of Bank Owned Life Insurance programs. Find out why over 150 regional banks have chosen EBN to provide a long-term BOLI solution.

Northwestern Mutual products are exclusively offered through Financial Representatives of Northwestern Mutual Life Insurance Company, Milwaukee, WI. Executive Benefits Network is independently owned and operated and is not a subsidiary of Northwestern Mutual.

CBW’s Telephone/Webcast training sessions bring the latest regulatory infor-mation right to the desks of your bank employees.

Most conferences run from 2:00 p.m. to 3:30 p.m. However, the Checklist for FACT Act 311 Risk Based Pricing Compliance session on Aug. 27 and the Directors Series on Sept. 21 both begin at 10:00 a.m. For questions on any of these conferences or about the Webcast itself, please call Sandy Gruber at (608) 833-4229 or email [email protected]. Visit CBW’s Web site, select the desired workshop, and follow the link to register online.

Tuesday, August 17: Examiner Hotspots for BSA Compli-ance: Including April 2010 BSA/AML Exam Manual Revisions

Th ursday, August 19: Identify-ing and Resolving IT Th reats

Tuesday, August 24: Medal-lion and Signature Guarantee Rules: Responsibilities and Liability

Th ursday, August 26: Call Report Lending Schedules: RC-C Part I and Related Schedules

Friday, August 27: Checklist for FACT Act 311 Risk Based Pricing Compliance: Eff ective Jan 1, 2011

Th ursday, September 9: Subpoe-nas, Summonses, Levies, and Other Demands for Customer Funds

Friday, September 10: GLBA: New Model Privacy Notice Form — Line-by-Line Instructions — Deadline:

January 1, 2011Tuesday, September 14: Open-

ing Deposit Accounts OnlineTh ursday, September 16:

Handling Check Returns and Adjustments: Paper and Imaged

Tuesday, September 21: Direc-tor Series: Using the Uniform Bank Performance Report (UBPR) to Improve Profi t and Value

Th ursday, September 23: Complying with the Fair Debt Collection Practices Act (FDCPA) for Consumers and Businesses

Tuesday, September 28: For Trainers: Mapping and Con-ducting Job-Specifi c Compli-ance Training

Th ursday, September 30: Front-line Skillworks: Dealing with Diverse Personalities

It’s not too late to register for the CBW Management Conference & Expo, set for Sept. 15-17 in Green Bay.

Highlights: A top speaker on eco-nomics and fi nance, Robert Genetskiwill discuss, “Is the Recovery Real and Is It Sustainable?” helping community bankers prepare for upcoming economic and fi nancial developments.

James Sheriff , partner with Godfrey & Kahn, S.C., will present the latest information on laws and regulations, including the impact of the Dodd-Frank Financial Reform Act, enforcement and

litigation issues, and corporate gover-nance matters.

William Sammon, senior vice presi-dent and managing director of Equity Capital Markets and Howe Barnes, will profi le banks that are obtaining capi-tal and suggest alternatives available to banks in diff erent circumstances.

Th e event features the largest trade show for community bankers in Wis-consin, with over 70 vendors likely to attend. Visit www.communitybankers.org to learn more or register online.

2010 CBW Management Conference & Expo


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OSB Hosts Cedar Grove Open House

From left , Gary De Master, president and CEO of OSB; Daryll Lund, CBW; Steve Wisse, OSB offi ce president - Cedar Grove, and Terry Katsma, OSB senior vice president

CEDAR GROVE— Th e Oostburg State Bank recently completed construction of its new Cedar Grove offi ce located at 10 Phoenix Avenue in Cedar Grove. Th e new 4,425-foot, full-service facility was the site of a public open house in late July, with prize drawings, refreshments, and giveaways.

OSB opened in 1908 with $25,000 in working capital and four employees to serve the approximate 200 Oostburg residents. Today the bank has over $150 million in assets and its 40 employees serve over 7,000 retail and business cus-tomers throughout Sheboygan County.

More Green Shoots of Growth

Th e Oconomowoc-based First Bank Financial Centre plans to open its eighth location at N56 W14044 Silver Spring Drive in Menomonee Falls by October. The new branch, which will occupy 4,200 square feet, is located in a small commercial development with other commercial tenants.

Wausau’s River Valley Bank will open a loan production offi ce at 728 Pennsylvania Ave. in Sheboygan. Th is represents the fi rst southern location for the bank, which has 16 branches in north central Wisconsin and Michigan’s Upper Peninsula.

New Headquarters for CIB MarinePEWAUKEE— CIB Marine Bancshares,

the holding company for Marine Bank, is downsizing and moving its headquar-ters from Pewaukee to Waukesha. Th e bank will relocate to a 6,000-square-foot building located at 1930 W. BlueMound Road.

PyraMax Launches iPhone AppGREENFIELD— PyraMax Bank launched its own iPhone app for mobile banking and payments. Customers can download the app either from the bank’s Web site or the Apple App store. Th e app allows customers to check balances in real time, view mini-statements, transfer funds between accounts, and pay bills.

Th e bank also off ers its customers other mobile channels for all of its per-sonal banking accounts. (See related story, May/June 2010 Wisconsin Com-munity Banking News, p. 16.)

Preferred Lender Status for Cross Plains BankCROSS PLAINS— The State Bank of Cross Plains has achieved “preferred lender status” with the Small Business Administration. With this designation, the bank will be able to respond more quickly to requests for SBA-guaranteed fi nancing.

Bank Celebrates Dairy Month In a Big Way

Schwarz Insurance’s submission into the Bank of Prairie du Sac’s cow parade and the bank’s Dairy Month mascot.

PRAIRIE DU SAC— Th e Bank of Prairie du Sac celebrated June Dairy Month with activities that sparked large-scale community involvement. “For the past several decades, the bank has celebrated Dairy Month with a Dairy Day celebra-tion, featuring frozen custard, enter-

tainment, and activities for children,” said Pat Yanke, executive vice president. “Th is year, we wanted to do something fresh.”

Th e bank off ered plywood cow sil-houettes to local businesses, asking them to decorate the cows with their individual branding to make a “Cow Parade” as a tribute to the dairy indus-try. “We received overwhelming support with businesses eagerly requesting the cows and creating a wide variety. Th e Sauk Prairie Harley Davidson cow, for example, wore leather chaps, boots, and a helmet.” Th e bank even has a growing waiting list of businesses who called aft er the cows had been distributed and want to receive one next year.

Th e community enthusiastically par-ticipated as well. More than 500 votes came in online from people voting for the “Best Cow in Show.” Finally, the cows were auctioned to the highest bidder with proceeds to benefi t the local food pantry.

Visitors to the bank’s Web site also participated in a weekly trivia contest to guess how much dairy is consumed in Sauk Prairie. One question, for example, asked how many cartons of milk are consumed at an area elementary school during the school year. Four winners won free milk for one year.

Dairy recipes were available online and in each of the bank lobbies and were updated regularly throughout the month. The bank offered free dairy items to sample on Fridays. Th e participation was unprecedented for Dairy Month. “Our Web site had some of its highest all-time visitor numbers we’ve ever seen,” Yanke said. “And everyone had a lot of fun.”

Attempted Scam MADISON— A number of Park Bank customers have been the victims of a “robo-calling” scam. Customers have received messages on their mobile phones pretending to be from the bank’s security department. The messages claim that the recipient’s debit cards were deactivated and that they need to call a specifi c number to reactivate them. If they call, they open themselves to theft and loss.

Th e bank quickly responded with a link on its homepage, background infor-

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Dempsey New COO/EVP at First ManitowocMANITOWOC— First Manitowoc Bancorp welcomes Michael Dempsey as executive vice president and chief operating offi cer for Bank First National. He will be responsible for regional banking services and will work toward establishing the bank’s presence in the Fox Valley.

Dempsey brings more than 30 years of experience to his position, most recently as regional president and CEO of Associated Bank, NA.

Weber Joins Wisconsin Community Bank MADISON— Wisconsin Community Bank has hired Mike Weber as senior vice president of business banking. He has 13 years of banking experience in Madison and the surrounding communities. He will primarily create new and cultivate exist-ing banking relationships with area businesses.

Weber earned a master’s degree in business administration-fi nance from the University of Wisconsin-Whitewater. He received a bachelor’s degree with a double major in busi-ness administration and economics from the University of Wisconsin-Stevens Point.

Capitol Bank PromotionsMADISON— Ken Th ompson, president and CEO of Capitol Bank, has announced the following promotions:

Amy Gile-Enge was promoted to vice president of real estate lending. She has 15 years of mortgage lending experi-ence and has been instrumental in bringing online mortgage applications and in-house servicing of mortgages to the bank.

Justin Hart was promoted to commercial lending offi cer; Cori Femrit to assistant vice president; and Howard Cagle to assistant vice president.

Christians RecognizedKevin Christians, CIC, of Community Bankers Financial

Services, was recently recognized for professional leadership and advanced knowledge by the Society of Certifi ed Insur-ance Counselors (CIC), a national insurance professional organization. He has more than 15 years of participation as a designated CIC, which requires annual completion of advanced education and training.

Sally Folgert Elected PartnerMILWAUKEE— One new fi nancial institutions-focused asso-ciate has been elected to the partnership of Wipfl i LLP, a CPA and consulting fi rm with a strong focus on serving fi nancial institutions. Sally Folgert was among a group of four individu-als elected to partner this year in the fi rm.

With more than 19 years of public accounting experience

with Wipfl i, Folgert focuses on providing a range of com-pliance, tax, and consulting services to the fi rm’s fi nancial institutions clients.

Locknet IT Solutions Names New President LA CROSSE— Locknet IT Solutions (Locknet) has named Peter Kujawa president of the company. Peter Griffi th will remain with Locknet as vice president of sales and president of Supernal Soft ware, LLC.

Prior to joining Locknet, Kujawa served as president of INFO-PRO Mortgage Services Corporation in Fond du Lac. He holds a J.D. degree from Marquette University and is a member of the State Bar of Wisconsin.

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Transcript of Volume 13, No. 4 - Community Bankerscommunitybankers.org/media/issues/july-august-2010.pdf · 455...