Issue link: http://www.insightdigital.biz/i/119013
Big banks were the catalyst for the creation of Investors Community Bank, founded in 1997 by Bill Censky, Tim Schneider, Wayne Mueller and Mark Binversie in Manitowoc. The four left a large institution in Manitowoc because they believed the bank was not taking care of customers as well as it should, says Schneider, co-CEO and co-founder. The founders raised $6.5 million to open; now it would probably take more than $20 million to start a bank, he says, which is the reason for little de novo banking activity in the state. Schneider agrees the regulatory burdens are heavy; the bank has just hired a full-time compliance officer to keep up with legal changes. Unlike many community banks, Investors has a specific focus on the agriculture and commercial sectors, which it tries to keep roughly balanced. ���We provide retail services to our commercial clients and farm owners, but it is not a market we pursue directly,��� Schneider says. ���Some community bankers would like to get out, but there is a disconnect on ultimate valuation. ���There is a cavern between buyer desire and seller expectations.��� ���Rober t Cera, CEO of B aylake B ank The bank has nine agricultural specialists who cover the entire state, making it Wisconsin���s largest farm lender. ���Every one of them grew up on a farm, several of them on large dairy farms,��� Schneider says. ���They have conversations with clients on a regular basis. Customers see our lenders as a valued advisor to them.��� The bank continues to build its commercial business with growth in manufacturing and lending to medical clinics. It also continues to hire staff from larger banks. ���Probably 70 percent of our staff joined from a larger institution. They enjoy our culture as a community bank,��� Schneider says. Investors plans to add 10 new positions this year. While bad as a whole, the financial crisis helped prove the business model for institutions like First Business Bank in Madison, says Mark Meloy, president and CEO. A business bank was a relatively new concept when the bank started 23 years ago by taking over a charter from Kingston State Bank. Meloy left First Wisconsin, now US Bank, where he felt that changes in the big bank model moved decision-making further away from clients and their needs. In the last four or five years, centralized decision-making at large banks led them to drop [continued] �� Fox Business Loans Call Bill Kahl for your business loan needs! (920) 993-3632 ��� Vehicle and Equipment ��� Lines of Credit ��� Real Estate ��� Construction ��� SBA ��� Credit Cards Helping you meet your financial needs! 15 locations from Green Bay to Oshkosh! w w w. i n s i g h t o n b u s i n e s s . c o m www.foxcu.org A p r i l 2 013 ��� Insight | 35