On the northern side of the Minneapolis suburbs, Village Bank is building a community: Employees and customers alike are invited to partake in building something a little more personal. Lending a guiding hand is banking consultant and former banker Marcia Malzahn, who has been on the board for just under three years and a part of the local community banking industry much longer.
Malzahn is being recognized as a BankBeat 2022 “Amazing Outside Director” for her service to Village Bank, St. Francis, Minn.
Malzahn’s journey to the Village Bank board begins a few thousand miles away: Born in Nicaragua, she and her family fled civil war by way of the Dominican Republic. Minnesota became their ultimate destination via happenstance; an acquaintance promised to help the family relocate and settle into the frigid north. She started as a teller at Minneapolis-based Marquette Bank, working her way up the ranks in various departments. She then spent time at a church leading its IT efforts, including its Y2K response. After five years there, Malzahn moved on to a new set of hurdles: Launching a de novo in partnership with a former colleague. Tradition Capital Bank, Edina Minn., set up shop in 2005, with Malzahn as chief financial and operating officer.
Malzahn stayed at the bank for almost a decade, overseeing everything outside of lending. She knew she was ready for a new challenge when she realized she could list out all of her duties and responsibilities from memory. She wasn’t learning anything new, and other company employees were more than ready to step up and take on her work. “I could coast, but I’m not a coaster,” she said. She spent about a year preparing for the transition, promoting her direct reports to new roles before moving on to leave her mark on the broader industry.
The former banker pairs her consulting work — she focuses on strategic planning, enterprise risk management, treasury management, and talent management for banks with less than $4 billion in assets — with speaking gigs and writing. But she saw her path forward as more of a vocation than simply a job description.
“I saw this amazing opportunity to do what I did for [Tradition Capital], but for other banks, to strengthen the infrastructure of other community banks,” Malzahn said. “And I thought if I could leave a legacy in the community banking industry, to say, ‘I helped that bank and I helped that bank and I helped that bank,’ wouldn’t that be better for me?”
Malzahn has served on a plethora of boards in and out of the industry, and she brought her wealth of banking experience and board polish to Village. She weighed in on policies, helping guide directors between the twin dangers of micromanagement and hands-off absence. She brought her risk management chops to bear in creating an ERM program. As the bank worked through a leadership transition, the board navigated the changing of the guard with her assistance.
The entrepreneurship drive Malzahn brought from her own business experience was a boon, said Aleesha Webb, president and vice chair of the $419 million bank’s board.
“Village Bank is a strong community bank thanks to Marcia’s leadership on our board,” Webb said. “Her financial acumen and dedicated mission to serve will be recognized by our board, our employees and our customers for years to come.”
Malzahn is passionate about getting more women involved in leadership and finance. It’s how she initially formed her connection with Webb: Malzahn invited the banker to join her on the board of Big Brothers, Big Sisters of the Greater Twin Cities. “I did it because I thought she would be great for the board and I’m always inviting people to boards and connecting people,” she said. “And I wanted more females on the board.”
The diversity of perspective brought by outside directors is necessary, but board members need to mind their financial Ps and Qs as well, Malzahn said. “A good director is always learning about the banking industry. We have to stay on top of it.” Unanimity isn’t desirable if it means the board just nods along without critical consideration.
Directors have resources in the quest for knowledge, said Malzahn, who teaches at the Graduate School of Banking at the University of Wisconsin-Madison, and holds a community bank director certification from the Southwest Graduate School of Banking. “You need to take the position seriously and come prepared to the meetings,” she said. “Challenge management and bring your questions, but then also make yourself available to management in case they need you.
“A good director focuses on the bank’s best interest,” Malzahn said. “We are there to serve.”