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December tornado triggers disaster recovery plan

Arcadian Bank President Mark Heinemann wasn’t expecting a tornado to strike less than two weeks before Christmas. Though the unseasonably warm day brought the potential for severe weather, it was Dec. 15, nearly one month after the previously recorded latest date for a tornado touchdown in the state. As night fell, conditions worsened. Heinemann, sitting in the basement of his Albert Lea, Minn., home near the Iowa border and approximately 20 minutes away from the Albert Lea-based bank’s Hartland branch, wasn’t worried. [Continue]

Weighing the costs and benefits of establishing an ESOP

Community banks that have implemented ESOPs credit them with boosting employee morale and performance, furnishing liquidity to shareholders, and raising capital by turning employees into investors. ESOPs also offer attractive tax breaks to small community banks, particularly S corporations. But community bankers considering an ESOP should weigh the obligations along with the rewards of employee ownership. [Continue]

7 Steps for prospecting and building relationships

All of the banks we work with must do outbound lead generation and relationship building and many do not have the luxury of filling their sales pipeline with inbound leads. Like most things, if you have a plan and stick to the plan, outbound selling will be more effective. If you are a sales leader or a salesperson in need of an outbound prospecting strategy, here are 7 steps to improve your success. [Continue]

Digital transformation invites security challenges

Cybersecurity fintech Sequretek was recently named one of the ICBA’s 2022 ThinkTECH partners. Co-founder and CEO Anand Naik weighs in on today’s ever-evolving digital threats and latest developments, from balancing security with remote access for employees working remotely to the role of artificial intelligence and machine learning. [Continue]

As employees return to in-person work, banks seek new normal

During shutdowns, some wondered if banks would be left with a surplus of space in their buildings if remote work became the new norm. As Covid-19 vaccines rolled out and bank employees trickled back to their offices, those worries have so far been unfulfilled. Still, with more employees working from home and consumers embracing remote banking, some institutions have reduced their space needs — possibly forever. [Continue]

Bankers reflect on Patriot Act after two decades

Twenty years after the Patriot Act was passed, banking experts say the landmark law brings many security benefits but also potentially permanent, time-consuming responsibilities. The Patriot Act, enacted Oct. 26, 2001, following the Sept. 11 terrorist attacks and anthrax scare, has required banks to obtain, verify and record information identifying everyone who opens an account or changes an existing account. Banks are also expected to check customer names against a number of federal wanted criminal lists. In passing the legislation, the U.S. government found those it holds responsible for 9/11 were able to open bank accounts within the United States by completing applications with fraudulent Social Security numbers. [Continue]

What I learned from buying a troubled bank

At the end of July 2013, we invested $1.8 million to buy 49 percent of Flagship Financial Group, Inc. This was the start of one fun journey that continues today. The primary asset of the organization was Flagship Bank Minnesota, which had two locations in the Twin Cities metro area. The bank was under a cease and desist order and struggling with a high level of troubled assets. However, it had a great group of employees and was in a market that I knew very well. At the time, Flagship Bank Minnesota had $94 million in assets and $62.8 million in loans in the two locations. In June 2021, we were up to six locations, $327.6 million in assets and $233.7 million in loans.  [Continue]

A hat tip to the family-owned bank

While it is difficult to nail down exact numbers, it is safe to say that the number of banks owned by one or two families is declining. The family-owned bank is a venerable niche of the community bank arena. Family-owned institutions experience pressures other banks avoid. As the family group grows with generations, fewer of the shareholders retain direct bank involvement. More of the shareholders in these families see their shares as solely an investment. As they weigh the value of their shares against other investment options, they may press the other members of the family to sell.  [Continue]

Navigating bank ownership succession

Understandably, bank owners tend to put off succession planning. It involves discussing discomfiting topics such as wealth and death, for one thing. It entails relinquishing control of the bank and the income stream that comes with ownership. And the planning process requires huddling with lawyers and accountants to work through irksome matters such as regulatory compliance and estate taxes. [Continue]

Black-owned bank to open Twin Cities branch

Detroit-based First Independence Bank, a Black-owned bank, plans to open a Twin Cities branch in early November, pending FDIC approval. The bank filed its branch application on August 19. Currently, the Twin Cities does not have a Black-owned bank.   [Continue]