Corporate Matters

Missouri bank undeterred by development freeze.Two years ago, when Unico Bank, Irondale, Mo., first began exploring branching possibilities in Desloge, Mo., the town looked poised for a retail spike: a new shopping mall was in the works and there was much talk about a Home Depot opening in the region. Fast forward to August, 2008, and these best laid plans are suddenly having a hard time coming to fruition under the weight of economic uncertainty. The shopping complex is yet to be built and the big box buzz has quieted. Still, the $192 million Unico Bank is marching ahead after receiving official approval to branch.."It still should be a good fit and a good place to the grow the bank," said Nancy Yount, regional president of Unico's Potosi and Irondale markets. Yount is overseeing the move into Desloge. "The larger construction and development projects simply are not moving forward as quickly as we'd hoped. It's a concern to us, but I wouldn't say it's making us nervous or unsure of whether it's the right place to go. There is uncertainty almost anywhere you go right now. There's nothing particularly weak about Desloge. We're not going to let the slowdown keep us from moving ahead because as a bank we're still in a position to do so.".Had the national economic slump not been influencing development in the region, the existing competition would have been enough to keep Unico on its toes. "It's a fairly tight market and that factor is still going to come into play," Yount said. "Our game plan from the start was to claim the piece of the pie we see available to our bank and to meet the stiff competition head on. Things aren't going to be easy. We've noticed people are being more cautious with their money. People aren't traveling or shopping as much. But in a slowdown like this, when a lot of your competition is the bigger banks that are having the most trouble, we offer customers a direct line to the source of the financial services, and when times are uncertain, that trust goes a long way.".Minnesota de novo fully functionalMinnesota Bank & Trust has come a long way since announcing its formation in late 2007. Guided by the Dubuque, Iowa-based Heartland Financial USA, Inc., the separately chartered state bank officially opened to the public in Edina on April 15 and held an opening ceremony on May 22. The bank launched with $16.5 million in capital, and has a goal to reach $115 million in assets in three years and eight locations in five years.."We had about 300 people at the grand opening reception, and we think that shows the word is getting around," said Catherine Kelly, the de novo's president. As the group waited for the charter process to play out, it ran a loan production office backed by its $3.3 billion parent company, which gave the Minnesota bank an advantage beyond starting cold, Kelly said. "We had made ourselves busy, and that has only increased. Heartland has had a desire to move into the [Edina] market for some time. Now all burners are firing, and in a nutshell, we couldn't be more thrilled. We have a team of 13 employees who represent an experienced group who are cultivating a lot of activity.".The bank has its sights on the business and high-end private markets. Retail is also part of the mix. "The first reception was more of a formal launch with a ribbon cutting and that whole process," Kelly said. "We also held an open house week. It was much more of a loose and friendly thing, and we had a lot of fun with it. We had a caricature artist, a fellow giving guitar lessons, and a Nintendo Wii hooked up to a flat screen for the kids.".Kelly said although the current banking environment is tepid, the bank's growth goals can be achieved. "It's not a large concern for us directly as we don't see relevant problem areas in our portfolio, and Heartland is very well capitalized. But these conditions could reach everybody in other ways – no one is immune. Everyone benefits from a healthy competitive environment, and the list of banks not turning up profits grew the last quarter. During a time like this, reputation is what we have to live on, and we're building this bank on that solid foundation.".Another de novo dives into ChicagolandOrganizers of First Community Bank of Plainfield, Ill., launched a capital drive for their de novo in mid-July, and the reaction has been positive."People are telling us that a new bank is really great news," said Richard Ethridge, who will serve as the bank's president. "We're finding that investors are eager to buy into a locally owned community bank – a true community bank with Plainfield as its base.".The new bank's holding company, the $398 million First Community Financial Partners, Inc., has an existing Plainfield branch running under its flagship brand, First Community Bank of Joliet. The new bank will acquire this location if its chartering moves forward without a hitch.."Since opening in November of 2006, that branch has climbed up to just under $60 million in assets," Ethridge said. "We think that's telling us something about the community – that it likes to do business with a company that's not only a bank but also a good neighbor.".Operating in temporary quarters, First Community expects to move to its permanent home this fall – a 20,000-square foot Federal-style, two-story brick building. Plainfield is roughly 30 miles south of Chicago.