2014 Rising Stars in Banking: John Welle

Business builders and clean-up artists tend to be two different kinds of bank employee. John Welle, market president for Minnwest Bank Metro, has been both since he joined the Eagan, Minn.-based bank in 2009, according to Todd McVay president and CEO of Minnwest Corporation, the bank's holding company. "A bank can get locked into a bad cycle where it loses track of growth as it focuses on fixing internal issues," McVay said. "John has shown he is very good at both skills.".NorthWestern Financial Review is honoring Welle as a Rising Star in Banking for 2014, along with five other bankers..Welle has a degree in finance from St. Cloud State University, in central Minnesota. He worked as a credit analyst for Marquette Bank, Minneapolis, in college and was hired to the same position in 1991 upon graduation. He has since spent his career as a commercial lender. Welle worked for Marquette Bank through its acquisitions by First Bank N.A., and later by U.S. Bank in 1997. He moved to Associated Bank in 2000. In 2002, he was hired at Excel Bank in Minneapolis, which was purchased by Milwaukee-based M&I Bank in 2007. He joined Minnwest Bank in 2009 as a commercial lender..Within a year, Welle was promoted to market president in the bank's Minnetonka office. Minnwest Bank Metro, with $209 million in assets, is one of six banks in the $1.5 billion holding company. Minnwest Bank Metro has branches in Minnetonka, Eagan, Hammond and Rochester, Minn..Welle immediately became focused internally on resolving troubled credits. The economic fallout from the housing collapse of 2008 swelled Minnwest's portfolio with nonperforming commercial real estate loans. Noncurrent loans reached 8.47 percent of total loans at Minnwest Bank Metro as of year-end 2010, and OREO properties grew to $23 million. "We had to get creative quickly in coming up with solutions to capture revenue," Welle said. "My job was to keep some very troubled clients engaged.".Welle proved effective, coming up with solutions that aided all parties, McVay said. Since taking leadership, Welle has helped reduce problem assets by $20 million in the Minnetonka market..Welle's interpersonal skills have proven invaluable, McVay said. "You have to demonstrate some degree of compassion to the customer out of the gate. They need to see that you will work with them," he said..In some cases, Welle helped customers connect with professional advisors, sat with them for weekly planning meetings and even connected them with a tenant from the bank's customer base. "You need to be clear and show them you believe in their plan to get through the hard times," he said. "We were able to help one customer improve earnings by $2 million. That kind of thing is fulfilling.".Welle also dealt with OREO in a way that brought growth to the bank. One example is a commercial property the bank had to repossess after trying to give the owner time to turn it around. When the bank took possession in April 2013, Welle had a choice. One option was to sell the property in a distressed sale in a depressed market. The other option was to wait, absorbing the expense of holding the asset on the books. Welle held off but began looking for a buyer immediately. Within three months, he had multiple letters of intent from qualified purchasers..Now, the bank expects to sell the asset for millions more than the appraised value in 2013. "Not only that, but we financed the purchase. So now we have taken a loan out of OREO and have made a loan on it to a good borrower," he said. "That moves the needle in a bank our size.".At the end of 2013, Minnwest put Welle in charge of its Eagan location. As of March 31, 2014, Minnwest Bank Metro had noncurrent loans at 1.72 percent of total loans, according to the FDIC. The bank's OREO properties have fallen to just over $10 million..Now Minnwest has promoted Welle again, this time to executive vice president, making him second in command. "John has a number of talents. He is a very competent lender," McVay said. "He has moved quickly into the branch manager position and took what was an unsettled office and got it working efficiently and effectively. Those kind of leadership qualities are in demand. We felt this new position was the best use of his considerable talents."Other 2014 Rising Stars in Banking honorees include:Katy Wolf Bode, Platte Valley Bank, North Bend, Neb.Daron Van Beek, The First National Bank, Sioux Falls, S.D.Laura Pomerene, First National Bank and Trust Co., Beloit, Wis.Brian L. Johnson, Choice Financial, Grand Forks, N.D.Dusten Johnson, Northeast Bank, Minneapolis