Johnson Bank was ranked No. 1 in the country for all regional lenders selling "Relief Refinance" loans to Freddie Mac. Regional lenders include all lenders except the 14 largest lenders designated by Freddie Mac as national lenders. Even when including the 14 national lenders, Johnson Bank ranked in the top 10 nationally in "Relief Refinance" loans originated and sold. Johnson Bank was also listed No. 24 nationally in 2009 in total loan volume sold to Freddie Mac.

Even if you wish you could, you probably can't respond to every worthy cause that would like your financial support, but you might be able to do more than you realize. It's all a matter of planning. Here are some techniques being used by thoughtful supporters of education, health and social welfare groups, the fine arts and a broad range of other charitable organizations:

Donate appreciated securities.

Many investors have handsome capital gains and, thus, potential exposure to income tax on those gains when they sell. Solution: Give appreciated securities as donations instead of cash.

Enhance your income by creating a charitable remainder trust.

A charitable remainder trust allows you to set aside a substantial gift to charity and reserve income payments for life. The payments may be based on a specified percentage of the trust fund's market value each year. (This arrangement is called a charitable remainder unitrust.) Or the payments may be structured as a fixed dollar amount each year (a charitable remainder annuity trust).

Charitable remainder annuity trusts provide greater certainty than unitrusts: The donor knows exactly how much the trust will pay each year. Unitrust payments fluctuate with market conditions. Still, in the long run, most of the fluctuations should be upward, creating a growing income flow that helps the donor keep a step ahead of the rising cost of living.

Note: Charitable remainder unitrusts can be funded by installments if desired. Annuity trusts must be funded all at once; no later additions may be made.

Conserve family wealth with a charitable lead trust.

Want to help your favorite charity and pass along part of your estate to your children or grandchildren in a way that minimizes or eliminates gift tax? Consider a charitable lead trust.

Charitable lead trusts work much like charitable remainder trusts but in reverse. A charity receives unitrust or annuity payments for a specified number of years then the trust remainder passes to family beneficiaries.

The idea behind planned giving is that you should sit down, consider your charitable intentions and look at the ways in which these intentions can be linked with steps that create greater financial security for yourself or members of your family. It's an idea often worth pursuing.

Terri Trantow is market president for Johnson Bank in Appleton. She can be reached at ttrantow@johnsonbank.com.

Johnson Bank announced today it will close its branches in Lake Geneva and Sheboygan and its drive-up location at 5417 Washington Ave. in Racine.

The Racine-based bank will consolidate its Lake Geneva office into its Burlington location, and the Sheboygan office will be consolidated into its Kohler location. The Lake Geneva and Sheboygan branches will close Dec. 17.

The closures are part of a plan to manage business in light of the evolving economic environment, the bank said.

"No one is immune to the impact caused by the current economic situation," said Russ Weyers, chief operating officer and incoming chief executive officer of Johnson Bank. "We're making decisions so we can be an even stronger financial partner in the future for our clients."
Approximately 12 jobs will be eliminated with the closures. Weyers said he expects the impact on clients to be minimal.

Weyers said the bank will continue to review multiple aspects of the organization to manage the business and adapt to the changing economic environment.

Johnson Bank said it will close its Lake Geneva and Sheboygan offices and a Racine drive-up window "in light of the evolving economic environment."

The Lake Geneva office will be consolidated into Johnson Bank's Burlington location and the Sheboygan office will be consolidated with Johnson Bank's Kohler location.

The Lake Geneva and Sheboygan offices and a drive-up at 5417 Washington Ave. in Racine will officially close on Dec. 17.

"No one is immune to the impact caused by the current economic situation," said Russ Weyers, the Racine-based bank's CEO and chief operating officer.

Twelve employees will lose their jobs in the office closings.

The bank had assets of $5.14 billion as of June 30. Its net income was $9.9 million for the first half of 2010 compared with net income of $10.75 million a year earlier, according to Federal Deposit Insurance Corp. filings.

A combination of the slow economy, tight bank underwriting and a shortage of investors has stalled $504 million available locally for a tax credit program that has enabled prominent Milwaukee-area projects including the Iron Horse Hotel, the GE Hotpoint redevelopment and Joe Zilber's The Brewery.

The U.S. Treasury New Markets Tax Credits program is designed to encourage real estate development and business expansion in distressed areas. The Treasury allocates credits to community development groups affiliated with banks and local development agencies. Those groups, in turn, issue credits to companies and developers to enhance the capital structure of financing projects.

The credits are key, especially in the current tough financial environment, to putting together a financing plan for a development or business expansion. The lack of credits is likely to stall many potential projects in southeastern Wisconsin.

Some organizations that allocate the credits are ready to close deals, but can't because the banks that used to buy the credits as a hedge against income tax payments don't need the credits. The banks aren't as profitable as they were before the recession and have less income tax to offset.

Locally, U.S. Bank was the largest buyer of the credits and has stopped investing in them until 2011, said representatives of the organizations.

"The buyers just have really shrunk in recent years," said David Latona, vice president of the Milwaukee Economic Development Corp.

A U.S. Bank spokeswoman said the bank does not discuss internal strategy and declined to confirm that the bank has stopped buying credits for the balance of the year. U.S. Bank has expanded its tax credit program this year and is very supportive of the program, said U.S. Bank's Lisa Clark. She said the bank had invested more than $158 million in tax credits in Wisconsin since 2000.

Clark said U.S. Bank is handling any pending tax credit purchases on a case-by-case basis.

"We're working with all of our partners," she said. "We're trying to work on financing on each of these deals."

The largest player in the New Markets Tax Credits locally is the Wisconsin Housing and Economic Development Authority (WHEDA), which has $158.25 million in tax-credit deals pending, but lacks a buyer for the credits. The agency won't disclose the identity of businesses or projects affected, but is working with banks to provide interim financing to start projects until 2011 when U.S. Bank resumes buying credits.

The only new markets deal that WHEDA closed in the Milwaukee area this year included $5.25 million in credits for a Walgreens at 2826 N. Dr. Martin Luther King Jr. Drive. The developers were Vangard Group and Endeavour Corp., both of Milwaukee.

Milwaukee Economic Development Corp., a quasi-public city agency, also has a full pipeline of deals, but will wait until 2011 to sell the credits to U.S. Bank, Latona said. The one announced deal that has been delayed involves $13 million in credits for The Art Institutes of Pittsburgh to remodel the P.H. Dye House, 320 E. Buffalo St.

The project is proceeding with bridge financing from Citizens Bank of Mukwonago, Latona said. The tax credit sale to U.S. Bank is now scheduled for January 2011, he said.

The project also is receiving tax credits through the Wisconsin Business Growth Fund, Waukesha.

Future projects
Future projects in the city of Milwaukee that have been discussed as New Markets Tax Credits candidates include expanding the Ambassador Hotel, the potential Astronautics Corp. of America headquarters at The Brewery and a plant currently under construction for Spain-based Ingeteam in the Menomonee Valley, Latona said. None of those are expected to reach the closing stage this year, he said.

Businesses seeking credits and banks that provide the senior financing for projects also have become less plentiful. If they're pursuing projects, they are much more cautious and face challenges including luring tenants.

"It's just like all development right now - it's really slowed down," said Russ Weyers, chief executive officer of Johnson Bank, which runs Johnson Community Development Co.

Johnson Bank's program expects to close on two projects this year in distressed neighborhoods, but is seeking other projects. The community development arm has $52 million in credits available.

M&I Community Development Corp. has yet to commit its $40 million allocation of credits to projects, but has two in the underwriting process, said president Vincent Lyles. M&I Marshall & Ilsley Bank has typically bought the credits from the community development unit, he said.

The First-Ring Industrial Redevelopment Enterprise, which is run by West Allis development director John Stibal, has $68 million in uncommitted credits. Stibal said he expects to issue about $20 million in credits to a manufacturer in the fourth quarter and commit to two more projects in 2011.

First-Ring closed one deal this year that included $8 million in credits for Milwaukee developer Joel Lee's redevelopment of a former Sam's Club on South 60th Street.

Adding uncertainty to the New Markets Tax Credits program is that Congress has yet to approve a $5 billion allocation for 2010 proposed by President Barack Obama. A spokesman for the U.S. Treasury said the agency expects Congress to act on the allocation in December.

Dollars for development
More than $500 million of New Markets Tax Credits are available for developments and business expansions in economically distressed areas of southeast Wisconsin. Here are the entities that have received allocations for credits through 2009 and the amounts they have yet to transfer to recipients.

Johnson Bank said Thursday it plans to close four of its nine branches in Arizona in a cost-cutting move.

The announcement that the bank will close branches in Phoenix, Mesa, Peoria and Rio Verde on Jan. 8 comes about two weeks after Racine-based Johnson Bank said it planned to shut down three branches in Wisconsin. Branches in Lake Geneva, Sheboygan and Racine are set to close Dec. 17.

The closings and consolidations will affect about 12 employees in Arizona and 12 in Wisconsin, the bank said.

In announcing the Arizona branch closings, Russ Weyers, chief operating officer, said the bank was "making the right decisions to remain a strong, long-term financial partner for our clients."

"These carefully planned branch consolidations will result in fewer locations, yet allow us to continue to provide good coverage of the Scottsdale and Phoenix areas and most importantly the same high level of service our clients are accustomed to," Weyers said.

Johnson Bank, with assets of more than $5.1 billion, is the third-largest bank based in Wisconsin.

37 closed in past year amid slow economy and increased online traffic

The stubbornly slow economy appears to have curtailed what had been a banking industry trend for years - ever-increasing branch networks.

After more than a decade of constant growth, the number of branches in Wisconsin declined by one in 2009, then slid by 37 more this year to 2,351, new data from the Federal Deposit Insurance Corp. shows.

Although no one is predicting the end of brick-and-mortar branches, analysts say some banks have decided they don't need or can't afford quite as many.

"Most of it is the economy," said banking consultant David L. Donihue, of Maximizing Shareholder Value & Co. in Leesburg, Fla. "With banks not doing very well, they are looking closely at cutting costs, and some branches are not producing. You open a branch in anticipation of growth, and for the past couple of years that growth has not been there."

Among those shedding branches was the state's second-largest bank, Green Bay-based Associated Bank. Although Associated still has the most branches in the state at 209, that's 11 fewer than last year. Associated said that, like most banks, it evaluates customer information, traffic patterns and market factors regarding branches on a continuing basis to ensure "effective and efficient placement of banking locations." Associated noted it just opened a location in Suamico and will open another in Oconomowoc in November.

Madison's AnchorBank, which is struggling from losses on loans that went bad, sold off 11 branches in northwestern Wisconsin and was down 14 branches overall from 2009.

While Johnson Bank held steady at 51 Wisconsin branches though June 30, when the FDIC collects its annual bank deposit data, the bank recently announced plans to close two branches in the state - in Lake Geneva and Sheboygan - and a drive-up location in Racine in December. Johnson Bank said it also will close four of its nine Arizona locations in January.

Russ Weyers, chief operating officer of the Racine-based bank, said part of the reason is the challenge of containing costs at a time when loan demand is down and regulatory expenses are going up.

"What we're concerned about is the economy being as slow as it is for as long as it is," Weyers said. "That's putting a lot of strain on our customers and ultimately will lead to loan-loss reserves and loan losses at a higher level than we were anticipating."

Technology's influence

Weyers said the decision to close branches was made easier because many people don't use them as much as they used to, thanks to technology.

"We are seeing our customers utilizing technology much more than they have in the past," Weyers said. "Our online banking product is a big thing, and there's a lot of our clients - commercial clients in particular - who are using products where they can electronically deposit checks from their office as opposed to physically coming into the branch."

Financial industry consultant Steven Reider said branches are - and will continue to be - important to banks. But the adoption of technology by more businesses and consumers is setting the stage for smaller branches, he said.

Customers are becoming comfortable with banking online, adding to already accepted banking functions that don't require a branch, such as electronic direct deposit of paychecks and cash withdrawals from automated teller machines, said Reider, president of Bancography, of Birmingham, Ala.

When the economy improves, banks will resume opening branches in growing markets because physical branches remain "the near-exclusive intake mechanism" for new customer accounts, Reider said.

Because more business and customers will be making transactions via technology, he said, branches of the future will be smaller and won't need as many employees.

Walk in for new accounts

"We are not seeing online banking displace branches for account opening, but we are seeing tremendous displacement of transaction activity once the account is opened," Reider said. "The overwhelming majority of consumers still walk into a traditional bank to open an account. Once they've done that, though, their interaction is far less frequent."

Reider said that across the industry, transactions such as check cashing and withdrawals inside bank branches have declined from 35% to 50% over the past five years.

Shrinkage is nationwide

Customers still want to be able to meet with someone in person when they open accounts or have banking problems or issues, Donihue said, so branches aren't going to fade away.

"But I think we're going to see a trend of fewer branches until the economy turns around," he said.

The shrinkage in branches is nationwide, the FDIC report shows. The total number of bank offices in the United States dropped to 98,505 this year from 99,540 in 2009. Reider said a significant part of the decline nationally is due to consolidation of redundant branches after some very big bank mergers: Wachovia into Wells Fargo, Washington Mutual into Chase and National City into PNC.

Another reason for it is banks combing their market to see whether some branches can be eliminated as they cut costs and focus on conserving capital, said Thane Bublitz, a financial institution analyst from Thrivent Asset Management in Appleton. If a branch "doesn't meet its profitability hurdle, which is harder to reach when times are tougher," it may be in jeopardy, he said.

Credit unions adding

Reider noted that credit unions have managed to avoid a fall-off in branches. Credit unions are like banks in many ways, but they're not-for-profit cooperatives owned by members instead of stockholders. They generally have fewer business loans than banks.

"There are certainly some impaired credit unions out there, but on average, the credit unions seem to have stayed healthier through the economic troubles, so they are using that to be very opportunistic and add branches," Reider said.

The 11 branches AnchorBank sold in northwestern Wisconsin went to Eau Claire's Royal Credit Union. Madison-based UW Credit Union expanded its presence in the Milwaukee area this year after buying a like-new branch building near Mayfair Mall in Wauwatosa from Amcore Bank before Amcore failed, and then announced it was buying a branch property in Waukesha from the Equitable Bank.

According to the Wisconsin Credit Union League, there were 670 branches in the state in June, up from 660 in 2009. Nationally, there were 21,477, an increase from 21,341 in 2009, the league said.

Paul Gores
The Milwaukee Journal Sentinel

Johnson Bank posted a $39 million loss in the third quarter as it beefed up reserves to cover potential bad debt, a top executive of the bank said Tuesday.

Johnson Bank president Russ Weyers spent three days in Arizona last week and it wasn't for fun in the sun.

Weyers was tending to the Racine-based bank's hard-hit loan portfolio in Arizona, which accounts for about two-thirds of the bank's problem loans overall.

Johnson Bank, like four other southeast Wisconsin banks, expanded in the Valley of the Sun during the state's boom years only to get burned when Arizona real estate crashed the past two years.

"Arizona is very real estate-centric," said Weyers, president of Johnson Bank Wisconsin and chief operating officer of Johnson Financial Group. "We're feeling the pain now."

For the quarter ended Sept. 30, Johnson Bank increased the amount of its construction and development loans in nonaccrual status - that is, overdue or delinquent - to $115.5 million from $74.2 million the previous quarter. The $5.2 billion-asset bank increased the funds set aside to cover possible losses on loans to $144.5 million from $48.4 million the previous quarter.

Johnson Bank, which posted a loss of $39 million in the latest quarter, is downsizing its Arizona operations to match the shrinking economy. The bank announced Sept. 29 it would close four of its nine Arizona branches by year-end.

Johnson Bank has the second-largest presence in Arizona of area banks. The most prominent Wisconsin bank in Arizona is Milwaukee-based M&I Marshall & Ilsley, which ranks fifth in Arizona in deposits.

M&I suffered its worst loan losses in the Grand Canyon State where M&I lent heavily for commercial development.

The two southeast Wisconsin banks that have failed during the financial crisis both were hurt by loan losses in Arizona.

Bank of Elmwood, Racine, had a loan-production office but no branches in Arizona. Maritime Savings Bank, West Allis, had a branch in Fountain Hills and its Arizona loans contributed to the bank's downfall. North Shore Bank, Brookfield, now runs the branch after acquiring Maritime in a Federal Deposit Insurance Corp.-assisted transaction.

Another area bank with operations in Arizona is CIB Marine, Waukesha, with a branch in Scottsdale.

Southeast Wisconsin banks that hoped to mine Arizona for growth are far from alone in trudging the past two years on the downslope of an economic Grand Canyon.

Four Arizona-based banks have failed so far this year after five failed in 2009. At least one other Midwestern bank - Irwin Union of Indiana - failed under the weight of its soured Arizona real estate loans.

Know the market

Non-Arizona banks made different mistakes in some instances than the local banks, said Craig Williams, a Phoenix attorney and a trustee involved with commercial foreclosures. The banks made loans without knowing the market or collateral, he said.

Arizona banks would not have made some of those types of loans, but it ultimately didn't matter, Williams said.

"In the end, both the Arizona and the non-Arizona banks would suffer a loss on 'bad' and 'good' loans as the market is so terribly depressed," he said.

A more negative assessment of the non-Arizona bank's foray into the state comes from Ernest Garfield, a former Arizona state treasurer and president of Independent Bank Developers, a Phoenix firm that starts banks. Garfield said many outside banks made loans to generate transactions rather than to engender long-term business relationships.

Those banks will continue suffering until things improve, he said.

"The economy here has been in the basement and now it seems to be climbing back out slowly," Garfield said. "It's going to take several years."

M&I has done much heavy lifting to dig out of its Arizona loan problems but did not make an executive available to comment for this story. A spokeswoman referred a reporter to a presentation M&I executives gave to analysts after the bank reported a net loss of $169.2 million for its quarter ended Sept. 30.

The slides show that M&I has reduced the size of its Arizona construction and development loan portfolio by 77 percent since the end of 2007, to about $900 million. The bank has aggressively shrunk both its commercial and consumer loan totals.

M&I virtually stopped lending to business in Arizona in 2008 and started selling delinquent and foreclosed properties and batches of bad loans.

M&I started in Arizona in 1986 but pursued rapid growth in the 2000s to balance its slow-growth base of Wisconsin with more business in then-booming states like Arizona and Florida. M&I executives have said many of the loans gone bad in Arizona were with developers who had long-term successful relationships with M&I.

M&I's strategy for now includes shrinking its construction loan portfolio, which is down 65 percent.

Drawn in

Two area banks with exposure in Arizona would never have entered the state if not for acquiring failed banks.

North Shore Bank, which acquired Maritime Savings, is keeping a branch in Arizona for now under an agreement with the FDIC, said chief executive officer Jim McKenna. He said North Shore has a strategy of staying close to its home base in Wisconsin and northern Illinois where bank executives know the market well.

"What do I know about Phoenix?," McKenna said. "You've got to have your feet on the ground to manage this stuff."

Tri City National Bank, which acquired Bank of Elmwood, eliminated prospective losses from Elmwood's Arizona loans by heavily discounting the bid to the FDIC for the failed Racine bank, said Ron Puetz, Tri City's CEO. Tri City's business model otherwise focuses only on southeast Wisconsin, he said.

Bank of Elmwood was hurt by participating in other banks' Arizona loan deals that are troubled, Puetz said, but the loans Elmwood generated itself are performing well.

"If I had my druthers would I have loans in Arizona? No," Puetz said. "Are they making their payments? Yes."

CIB Marine entered Arizona in the early 2000s and the market represents the bank's second-largest source of problem loans behind a $50 million commercial customer in the Chicago area, said CEO John Hickey. The bank holding company, which reorganized in Bankruptcy Court early this year, has a branch in Scottsdale.

"The Arizona situation (has) made it difficult for us as we try to climb our way back out," Hickey said.

Mining for deposits

Here is a ranking, by amount of deposits in Arizona, of banks based in Wisconsin or with Wisconsin ties that do business in Arizona. Figures are for deposit market share as of June 30.

Source: Federal Deposit Insurance Corp.

Read more: Once-hot Arizona market parches Wisconsin banks | The Business Journal

By Kathleen Gallagher of the Journal Sentinel

"Investors are more concerned with the safety of their investments than ever before," says David A. Baumgarten, president of Bank Mutual in Milwaukee. "Baby boomers are concerned if their money will last the rest of their lives. Their primary question is, 'Do I have enough?' And, even Generation Y-ers under 30, who traditionally didn't think much about saving for the future, are thinking more about retirement, seeing what has happened to the stock market and their parents," he says.

Whatever the goal, planning is still the key, financial experts say.

Reducing Risk

Because every investment involves some risk, it's important to learn techniques and strategies that minimize those risks. "When you put an investment portfolio together, you can't just set it and forget it. You need to understand what you own so you can manage it," says Charles Albrecht, senior vice president, Investments, Wells Fargo Advisors in Milwaukee.

He suggests investors follow these guidelines:

•Know your goals. What are you saving for and when will you need your money? "You may need to review and adjust your goals from time to time," Albrecht says.

•Understand your risk tolerance. "How much can you afford to lose? This depends on different factors, including age and income," Albrecht says.

•Know what you are investing in. "Many people don't know. Even some investment advisors don't understand the investments they recommend to their clients. That's why it pays to know something about your advisor," Albrecht recommends.

•Diversify your portfolio. "This is extremely important. Don't invest in just one type of asset. You need asset classes that tend not to correlate with each other," Albrecht says.

•Maintain flexibility and liquidity in your portfolio. "Make sure you are able to easily make adjustments. A life event can occur that might necessitate the need to obtain cash quickly," Albrecht says.

•Monitor your portfolio and rebalance it from time to time. "This should be done at least annually. When circumstances change, review your investments to see if they still make sense," Albrecht advises.

Finally, just be prudent, Albrecht says. Avoid falling prey to deals that sound too good to be true. "We tend to let our guard down when we hear a good pitch. Many people learned some hard lessons in the last few years," Albrecht says. "It sounds cliché, but if an investment sounds too good to be true, it probably is."

Funding a College Education

"Twenty years ago, people used to tell me all the time that they wanted to retire early. I don't hear that so much anymore," says Blanche Berenzweig of BSB Financial in Mequon. "These days, people are planning for two primary goals: retirement and college for their children. And, an increasing number of my older clients are providing funds for their grandchildren's education. They may be concerned that their children can't afford it," she says.

The best vehicle for saving for college is a 529 plan, Berenzweig says. "A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. These plans are sponsored by the state and some private colleges and universities," she says.

The 529 savings plans generally permit investors to establish an account for a future student, choosing among several different investment options that the savings plan invests on behalf of the account holder. These options include stock or bond mutual funds and money market funds, as well as age-based portfolios that automatically shift toward more conservative investments as the student gets closer to college age.

"There are many benefits to a 529 plan," Berenzweig says. "Withdrawals can generally be used at any college or university, and earnings aren't subject to federal tax or state tax so long as the withdrawals are used for college expenses. And, the parent or grandparent can keep control of those funds. You can keep it going as long as you want, and if the student gets a scholarship and doesn't need the money, it can be transferred to another beneficiary," she says. Generally, there are no income limitations or age restrictions on 529 plans.

Planning For Enjoyment

While some clients might be re-evaluating their investments, most are trying to stick with their long-term strategies, says Lori Gervais, CFP, senior vice president, Gervais Group, Robert W. Baird in Mequon. "I don't think folks are dropping their dreams. Their perspective might be different; for example, instead of saying, 'I want to retire early,' they are saying, 'I want to retire comfortably,'" she says. "Or, they are seeking retirement at 60 or 65 instead of 58."

People still want something to look forward to, Gervais says. "They may want to sail around the world or build a home up in northern Wisconsin. They are still planning for these things," she says.

Gervais helps her clients save for dreams like travel after retirement. "We have to evaluate a number of factors: When will they need the money, what is their current income and current investments, and what can they afford to put aside toward that goal? We have to look at the present value of that future cost and build a monthly savings budget for that goal," she says.

You always need to be focused on what you want to do and when, Gervais advises. "If you have 10 years to plan for your trip, you likely have the opportunity to invest your money in multiple investment vehicles," she says. "But we need to create a customized plan, to evaluate where it's best to invest and what makes the most sense for each individual."

Debt Management Strategies

Financial planning involves multiple aspects including, of course, savings and investment, but also focusing on credit and debt management. Financial planners can recommend a plan to help lessen your debt, to free up more money for investment. "In the current environment, many people are simply looking to properly manage their debt," says Matt Demet, senior vice president, Wealth Management, at Johnson Bank. "Ultimately, people are trying to get themselves into a position to retire at a reasonable age. Part of that is making sure people are effectively managing their liabilities with regard to credit cards," he says.

Paying down debt requires some discipline, Demet says. "Many people have gotten into situations where they have racked up high credit card bills. And, many individuals used their homes as ATMs in recent years," he says.

"The first question to ask is, 'How did we get here?' Was it a one-time situation that drove the problem? Or, is it an ongoing situation? A plan needs to be put in place that will examine anticipated income flows and other things that can be done to try to eliminate debt," Demet says. "We may look for other resources, such as selling investments. Or, some individuals may have equity in their homes and they can take advantage of the favorable interest rate to refinance," he says.

It comes down to managing your individual balance sheet. "You need to attempt to strike a balance between reducing liabilities and increasing assets. The goal is to improve net worth," Demet says.

Closing in on Retirement

Are you approaching the traditional retirement age? More importantly, are you ready for retirement? "The last 10 years before retirement are the most important years in terms of investment planning. Typically, these are the 10 highest earning years when you likely have the most money in the stock market, although you may want to pull back a little on stocks," says Michael Sadoff, investment advisor with Sadoff Investment Management LLC, in Glendale.

"Don't underestimate the importance of the choices you make during those 10 years between 55 and 65," Sadoff says. "The wrong decisions can lead to disastrous mistakes, and that applies to people at all levels, whether annual income is $100,000 or $500,000. The math doesn't change," he says.

To prepare for retirement, people need to determine how much money they have, how much they plan to save per year, and at retirement, how much they plan to spend, Sadoff says. "Then, we subtract Social Security and any pension and say, OK, they need this additional dollar amount. Next, we look at what is in the retirement account and how much more they will need to make it last throughout their expected retirement years. And, that could be 20 years or more," he says.

The portfolio mix is critical, Sadoff says. "You might have all stocks at age 55, but as you get closer to 65, you need to diversify to satisfy your comfort level," he says. "Consider how much you're going to save and how much the portfolio is going to appreciate."

Proper planning with the correct team is important, he says. "You need the correct advice about not just investing, but about insurance, estate planning and other issues. Odds are that the market will come back, but the economy is likely to be lackluster for a number of years. You can only build in so much protection," he says.

Most of us have financial goals, whether it is to retire at a reasonable age, fund our children's education, do some traveling or simply manage debt. While overall plans haven't changed, people's attitudes have gone through a period of adjustment - and that's occurring across all age groups, local industry experts say.

"Investors are more concerned with the safety of their investments than ever before," says David A. Baumgarten, president of Bank Mutual in Milwaukee. "Baby boomers are concerned if their money will last the rest of their lives. Their primary question is, 'Do I have enough?' And, even Generation Y-ers under 30, who traditionally didn't think much about saving for the future, are thinking more about retirement, seeing what has happened to the stock market and their parents," he says.

Whatever the goal, planning is still the key, financial experts say.

Reducing Risk

Because every investment involves some risk, it's important to learn techniques and strategies that minimize those risks. "When you put an investment portfolio together, you can't just set it and forget it. You need to understand what you own so you can manage it," says Charles Albrecht, senior vice president, Investments, Wells Fargo Advisors in Milwaukee.

He suggests investors follow these guidelines:

•Know your goals. What are you saving for and when will you need your money? "You may need to review and adjust your goals from time to time," Albrecht says.

•Understand your risk tolerance. "How much can you afford to lose? This depends on different factors, including age and income," Albrecht says.

•Know what you are investing in. "Many people don't know. Even some investment advisors don't understand the investments they recommend to their clients. That's why it pays to know something about your advisor," Albrecht recommends.

•Diversify your portfolio. "This is extremely important. Don't invest in just one type of asset. You need asset classes that tend not to correlate with each other," Albrecht says.

•Maintain flexibility and liquidity in your portfolio. "Make sure you are able to easily make adjustments. A life event can occur that might necessitate the need to obtain cash quickly," Albrecht says.

•Monitor your portfolio and rebalance it from time to time. "This should be done at least annually. When circumstances change, review your investments to see if they still make sense," Albrecht advises.

Finally, just be prudent, Albrecht says. Avoid falling prey to deals that sound too good to be true. "We tend to let our guard down when we hear a good pitch. Many people learned some hard lessons in the last few years," Albrecht says. "It sounds cliché, but if an investment sounds too good to be true, it probably is."

Funding a College Education

"Twenty years ago, people used to tell me all the time that they wanted to retire early. I don't hear that so much anymore," says Blanche Berenzweig of BSB Financial in Mequon. "These days, people are planning for two primary goals: retirement and college for their children. And, an increasing number of my older clients are providing funds for their grandchildren's education. They may be concerned that their children can't afford it," she says.

The best vehicle for saving for college is a 529 plan, Berenzweig says. "A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. These plans are sponsored by the state and some private colleges and universities," she says.

The 529 savings plans generally permit investors to establish an account for a future student, choosing among several different investment options that the savings plan invests on behalf of the account holder. These options include stock or bond mutual funds and money market funds, as well as age-based portfolios that automatically shift toward more conservative investments as the student gets closer to college age.

"There are many benefits to a 529 plan," Berenzweig says. "Withdrawals can generally be used at any college or university, and earnings aren't subject to federal tax or state tax so long as the withdrawals are used for college expenses. And, the parent or grandparent can keep control of those funds. You can keep it going as long as you want, and if the student gets a scholarship and doesn't need the money, it can be transferred to another beneficiary," she says. Generally, there are no income limitations or age restrictions on 529 plans.

Planning For Enjoyment

While some clients might be re-evaluating their investments, most are trying to stick with their long-term strategies, says Lori Gervais, CFP, senior vice president, Gervais Group, Robert W. Baird in Mequon. "I don't think folks are dropping their dreams. Their perspective might be different; for example, instead of saying, 'I want to retire early,' they are saying, 'I want to retire comfortably,'" she says. "Or, they are seeking retirement at 60 or 65 instead of 58."

People still want something to look forward to, Gervais says. "They may want to sail around the world or build a home up in northern Wisconsin. They are still planning for these things," she says.

Gervais helps her clients save for dreams like travel after retirement. "We have to evaluate a number of factors: When will they need the money, what is their current income and current investments, and what can they afford to put aside toward that goal? We have to look at the present value of that future cost and build a monthly savings budget for that goal," she says.

You always need to be focused on what you want to do and when, Gervais advises. "If you have 10 years to plan for your trip, you likely have the opportunity to invest your money in multiple investment vehicles," she says. "But we need to create a customized plan, to evaluate where it's best to invest and what makes the most sense for each individual."

Debt Management Strategies

Financial planning involves multiple aspects including, of course, savings and investment, but also focusing on credit and debt management. Financial planners can recommend a plan to help lessen your debt, to free up more money for investment. "In the current environment, many people are simply looking to properly manage their debt," says Matt Demet, senior vice president, Wealth Management, at Johnson Bank. "Ultimately, people are trying to get themselves into a position to retire at a reasonable age. Part of that is making sure people are effectively managing their liabilities with regard to credit cards," he says.

Paying down debt requires some discipline, Demet says. "Many people have gotten into situations where they have racked up high credit card bills. And, many individuals used their homes as ATMs in recent years," he says.

"The first question to ask is, 'How did we get here?' Was it a one-time situation that drove the problem? Or, is it an ongoing situation? A plan needs to be put in place that will examine anticipated income flows and other things that can be done to try to eliminate debt," Demet says. "We may look for other resources, such as selling investments. Or, some individuals may have equity in their homes and they can take advantage of the favorable interest rate to refinance," he says.

It comes down to managing your individual balance sheet. "You need to attempt to strike a balance between reducing liabilities and increasing assets. The goal is to improve net worth," Demet says.

Closing in on Retirement

Are you approaching the traditional retirement age? More importantly, are you ready for retirement? "The last 10 years before retirement are the most important years in terms of investment planning. Typically, these are the 10 highest earning years when you likely have the most money in the stock market, although you may want to pull back a little on stocks," says Michael Sadoff, investment advisor with Sadoff Investment Management LLC, in Glendale.

"Don't underestimate the importance of the choices you make during those 10 years between 55 and 65," Sadoff says. "The wrong decisions can lead to disastrous mistakes, and that applies to people at all levels, whether annual income is $100,000 or $500,000. The math doesn't change," he says.

To prepare for retirement, people need to determine how much money they have, how much they plan to save per year, and at retirement, how much they plan to spend, Sadoff says. "Then, we subtract Social Security and any pension and say, OK, they need this additional dollar amount. Next, we look at what is in the retirement account and how much more they will need to make it last throughout their expected retirement years. And, that could be 20 years or more," he says.

The portfolio mix is critical, Sadoff says. "You might have all stocks at age 55, but as you get closer to 65, you need to diversify to satisfy your comfort level," he says. "Consider how much you're going to save and how much the portfolio is going to appreciate."

Proper planning with the correct team is important, he says. "You need the correct advice about not just investing, but about insurance, estate planning and other issues. Odds are that the market will come back, but the economy is likely to be lackluster for a number of years. You can only build in so much protection," he says.

Janine Anderson

RACINE - From the first "Hi Grandma" on the phone Wednesday, Margie Sweet knew - she knew - she would do anything for the person on the other end of the line.

So when she heard her granddaughter tell her she might sound funny because she had just broken her nose in a car crash while on vacation in Barcelona, she didn't think anything of it. When she cried and said she needed help to pay for the totaled rental car, Sweet said she'd do anything to help.

Sweet listened carefully as an American man told her how to send the $3,000 to his repair shop, Western Union.

She drove straight to Johnson Bank, 4001 N. Main St.

All the tellers know Margie Sweet. When she came in Wednesday morning, shortly after the bank opened, teller supervisor Eileen Bernhardt moved from the drive-through area to a lobby window to help her.

Sweet looked upset.

"I need help a lot today," Sweet told Bernhardt.

And she told the whole story, about the call, the totaled car, the smashed nose, and the $3,000.

"I'm sorry to hear that," Bernhardt told Sweet.

The story set off a red flag. Bernhardt asked if Sweet was sure it was her granddaughter who had called, if she had tried to confirm the story.

Bernhardt said it sounded like a scam.

But Sweet was so sure. Bernhardt called for Cheri Smith, a personal banker. Smith told Sweet the same things - and something else.

"I said it could be legitimate, but once you pay that money, it's gone," Smith said.

They told her to go back home, take 30 minutes and figure out whether her granddaughter really needed the help. If she did, Sweet would get all the help she needed to take care of things.

So Sweet went home.

She called around, but couldn't reach anyone in the family.

Sweet called the 877 number she got from the man on the phone. Her granddaughter broke down, sobbing. She begged her grandmother not to tell anyone - not her dad, not her husband, no one - what had happened.

Sweet was confused. When she got off the phone, she called her son Peter. He echoed the bank employees: the whole thing sounded fishy.

Sweet called the number again, and told her granddaughter not to worry. Her uncle was in Barcelona right now. Give me the address, and he'll be right over and take care of everything.

That seemed to make things even worse.

Sweet hung up, and called her son again. She gave him the number, and he tried to call his niece. He got the woman on the phone, Sweet said. He asked a few questions about where she had previously lived, and the line went dead.

Later that day, Sweet heard from her granddaughter, safe at home in Atlanta. She credits Johnson Bank with saving her the money. If it hadn't been for their questions, she would have sent the money right away.

"They were so professional," she said. "She would just sob. The acting was amazing."

RACINE - Johnson Financial Group, the $5 billion parent company of Johnson Bank and Johnson Insurance, ranks No. 46 on Fortune magazine's annual list of the 100 Best Companies to Work For.

Johnson Bank said Monday it lost $102 million in the fourth quarter - the bank's largest quarterly loss ever - as more loans, primarily in Arizona, deteriorated amid a housing slump and slow economy.

For all of 2010, Racine's Johnson Bank, the third-largest bank based in Wisconsin, lost about $135.3 million, according to regulatory records.

"It continues to be a challenging environment for banks," said Russ Weyers, chief executive of Johnson Financial Group. "We've got clients who are having a difficult time making payments."

Among them are commercial real estate borrowers in the bank's Arizona market, where property values have plunged.

In a note to employees Monday, Weyers acknowledged the bank had deviated from its traditional business plan.

"As we reflect on our strategy over the past several years, it is clear that Johnson Bank strayed from our conservative philosophy and roots as a community bank," he said. "In an effort to grow both our revenue and income, we made large commercial real estate loans in areas outside of our core markets."

Privately owned Johnson Bank added $82 million to reserves in the quarter to cover potential future loan losses.

Weyers said he could not forecast when the bank would be profitable again.

"We're making progress and we're comfortable we are going to work our way through these loan challenges. It's a little difficult to predict exactly when that's going to happen," he said.

In an interview, Weyers said the bank will be evaluating "all aspects of our business," including staffing.

"We haven't made any decisions yet, but we are looking at everything that we're doing," Weyers said.

Weyers noted that there were some positives in 2010. He said the bank's wealth management unit had a record year, with combined revenue of more than $20 million, and that combined trust and brokerage assets grew 16% to more than $5.7 billion.

"Our mortgage area continued its strong performance, with nearly $1.5 billion in loans originated in a generally weak economic environment. This follows a record year in 2009 of $1.77 billion in loans originated," Weyers said.

He said Johnson Insurance also performed well, with net income of $2.3 million, nearly double the 2009 figure.

When dealing with high-net-worth (HNW) clients, Johnson Bank favors a hub-and-spoke client relationship model. "We put the client in the middle," says Lucareli, who oversees both trust and brokerage.

There is a relationship manager in the center who draws on a team of experts. The four disciplines represented are trust, brokerage, private banking (credit) and insurance.

The customer him- or herself selects the relationship manager. "It starts with client needs," Lucareli tells us. If the client wants the bank to make investment decisions, they go to the trust and investment management shop. If they are active investors, then "the better fit may be on the brokerage side."

There are no "hand-off" rules for brokers, although a client should have at least $500,000 in investable assets to qualify for the trust/investment management side.

In 2008 and much of 2009, during the recession, brokerage and trust clients were "fearful," recalls Lucareli. But the bank's financial advisors "never lost touch," even if clients were not investing and their financial assets were declining. Advisors communicated with clients continuously-not only by telephone and email but also via blogs and other means.

Finally, confidence in the market began to return. At that point, the bank was well positioned to serve those clients.

Having diversified revenue streams, including wealth management revenues, is important to Johnson, a subsidiary of Johnson Financial Group, from a strategic standpoint, Lucareli tells us.

In fact, at the end of 2010, assets under management ($4.88 billon) were almost equal to balance-sheet assets ($5.1 billion). Few banks in the Wisconsin institution's peer group (e.g., banks with $1 billion to $10 billion in balance-sheet assets) could make such a claim.

-Andrew Singer of Bank Insurance and Securities Marketing Magazine.)

Johnson Financial Group said Friday it has completed the sale of its Swiss subsidiary.

Terms of the sale of Banque Franck Galland to BCV Group of Lausanne, Switzerland, were not disclosed.

"This sale is part of our ongoing plan to refocus on our core U.S. businesses and further strengthens our capital position," said Russ Weyers, president and chief executive of Racine-based Johnson Financial Group.

The company's Johnson Bank recently said it lost $102 million in the fourth quarter - the bank's largest quarterly loss ever - as more loans, mainly in Arizona, deteriorated amid a housing slump and slow economy. For all of 2010, Johnson Bank, the third-largest bank based in Wisconsin, lost about $135.3 million, according to regulatory records.

The road to recovery remains difficult for 13 banks in southeastern Wisconsin under regulatory orders to improve as the real estate market continues to languish.

Six of the 13 banks under regulatory orders to improve actually achieved improvement in the fourth quarter of 2010. Seven declined in major performance measures.

The bank showing the most improvement in the quarter was WaterStone Bank, Wauwatosa. Slipping were Legacy Bank, Milwaukee, and Southport Bank and Bank of Kenosha, both in Kenosha.

Southeastern Wisconsin banks' performance as of year-end 2010 versus a year earlier looked better, as 10 banks posted improvement in key measures. Showing the most improvement were Equitable Bank, Wauwatosa, and Fox River State Bank, Burlington.

Statewide, a higher percentage of banks posted net income for the full year 2010 than any year since 2007, said Peter Bildsten, secretary of the Wisconsin Department of Financial Institutions. The percentage of unprofitable banks declined to 21 percent from nearly 26 percent.

"I'm very encouraged by the recent progress," Bildsten said this week. "In general, Wisconsin banks are doing better than they were a year ago."

Net interest margin, a key measure of bank profits, increased to 3.53 percent from 3.34 percent, according to figures released last week by the Federal Deposit Insurance Corp. The percentage of noncurrent loans declined to 4.16 percent in 2010 from 4.58 percent in 2009.

Bildsten acknowledged that many banks still face challenges in improving to the point where they will exit regulatory orders that restrict their ability to make loans, issue dividends and generally control their own finances.

As long as those banks remain under orders from federal and state regulators, businesses will have less access to capital. Community-sized banks are especially important to small business owners who rely on the flexibility and personal touch of smaller banks.

"In general, we're seeing progress even among banks operating under an order," Bildsten said. "That doesn't mean there won't be more failures or more orders."

Since October 2009, five banks have failed in Wisconsin, including three in southeast Wisconsin. Bildsten noted that the Wisconsin figure is much lower than many other states and speaks to the strength of the state's banks and the fact they didn't take as big of risks as banks in some other states.

That being said, the 13 banks continue to deal with elevated levels of problem loans. Because a large percentage of community banks' loans were for real estate and development, the lagging recovery in real estate saps momentum from banks' balance sheets.

"Both residential and commercial are pretty slow - it's still taking a while," said Russ Weyers, CEO of Johnson Bank, Racine.

Johnson Bank is not under a regulatory order but its Tier 1 risk-based capital level ranked among the worst in southeast Wisconsin as of Dec. 31. Weyers said the figure will improve in the first quarter after the bank closed branches and sold a European subsidiary.

Ridgestone Bank in Brookfield, which is under an order, saw its noncurrent loans increase to nearly 10 percent of its total loans in the fourth quarter. Chief executive officer Bruce Lammers said the increase was caused by two large loans in the Chicago area that became delinquent.

"We've got a lot of things that are going in right direction - housing prices after an incredible drop have leveled," Lammers said.

Sales of vacant, foreclosed land, on the other hand, are "just dismal," he said. Lammers hopes Ridgestone will emerge from its regulatory order either this fall or in the fall of 2012.

Madison-based AnchorBank, which has a major presence in metropolitan Milwaukee, has reduced the dollar amount of its delinquent loans the past year. But removing many of those bad loans from the bank's books is proving stubborn because of the real estate market, said executive vice president Mark Timmerman.

Anchor has been under regulatory orders since June 2009, but continues to show progress and seek new capital. The real estate market appears to have stabilized, which helps, but the still-high unemployment rate hurts banks' efforts to improve because consumers aren't spending, Timmerman said.

Highest delinquencies

Southeast Wisconsin banks with 8 percent or more of their loans listed as delinquent as of Dec. 31, 2010

Southeast Wisconsin banks with lowest Tier 1 risk-based capital ratios as of Dec. 31, 2010

Source: Federal Deposit Insurance Corp.

RACINE COUNTY -- Local businesses and lenders seem to be doing a cautious dance when it comes to making and taking out loans.

But lenders say there is money available for creditworthy borrowers, after a period when the common perception seemed to be: Banks don't want to make loans.

"It became very difficult. It is loosening up right now," said Jim Beere, president of Pioneer Products, 1917 S. Memorial Drive.

Racine County Economic Development Corp. Executive Director Gordy Kacala's perception is that the purse strings are still drawn quite tight. "It is still very tough to access private-sector financing," he said.

"A ton of this is not under (financial institutions') control" because of much tighter banking regulations imposed since the financial crisis that began in 2007, Kacala said.

Whatever the reasons, Kacala said access to capital is "still an issue in our county."

Lenders say money is available, but businesses are being ultraconservative about asking for it. Both sides seem to have absorbed enough punishment during the recession to make them very risk-aversive.

Lingering caution

"I think there was a lot of caution in the market in general about what was going to happen among banks, government, and borrowers got cautious," said Dave Titus, senior vice president for M&I Bank, 1 Main St.

That carefulness is only dissipating slowly. Dave Grebetz, owner of ClearCom, took a conservative approach to adding a van to his fleet.

ClearCom, 8338 Washington Ave., does security and communications integration. Grebetz's 2004 startup has grown to $1 million in annual sales and nine full-time employees, five of them technicians.

Despite that growth, "I did two guys per vehicle as long as I could," Grebetz said, before borrowing about $10,000 from Educators Credit Union late last year to buy a used van.

Racine Area Manufacturers and Commerce President Mike Kobylka said he sees a lot of two kinds of companies.

"Either they're barely holding on and they're not interested in capital, or they're doing really well and sitting on tons of capital and just holding it," he said.

Some exceptions

"We're aggressively looking for loans to make right now to solid manufacturers," said Johnson Bank CEO Russ Weyers. "We're still not seeing that customer base trying to grow yet.

"There's plenty of money available to lend," Weyers said. "Liquidity is not the issue. It's really finding the qualified deals to lend to."

Real estate is a glaring exception, lenders said. Because of a tremendous glut of vacant property, money for real estate development or refinancing is scarce.

"We haven't stopped funding (those borrowers)," Weyers said. "But you would need to have a tenant or be fully leased."

M&I's Titus said: "I think the only thing our appetite has declined for are real estate development loans. That's across the banking sector."

Victor Frasher, business development officer at Educators Credit Union, said other dubious loan requests would involve speculative businesses such as investment companies or flipping houses.

The kinds of projects lenders say they're happiest to fund could involve new equipment to increase efficiency or increase production volume. Frasher said ECU has also made loans for working capital, forklift trucks, remodeling and debt restructuring.

That doesn't mean any loan is necessarily easy to get.

Lenders are all spending more time on underwriting and inspecting the business plan, said Weyers. He added: "All banks are asking more questions than they did in the past."

Russ Weyers is pleased for the recognition.  "This is a great example of earning recognition for delivering an excellent client experience in the communities we serve, and earning the recognition by our clients.  Knowing they appreciate our efforts is really what it's all about."

To qualify for consideration for the regional awards, Johnson Bank had to have a minimum of 30 clients respond to the survey.  Excellence Awards selection is based upon the Top Box "Excellent" ratings percentages,  The banks selected had to have a significantly different percentage of "excellent" ratings than the mean of all banks.  Greenwich Excellence Awards are presented in 10 categories at the national level and in two categories across four geographic regions in small and middle market business banking.

Greenwich Associates provides research-based strategy management services for financial professionals.

Phoenix Business Journal

Angela Gonzalez

April 22, 2011

 

Kelly Foster has been named regional president of Johnson Bank in Arizona.

Foster served most recently as chief credit officer for Johnson Financial Group. Based in Wisconsin, the $5 billion financial services company has about 80 employees at its five Valley branches.

Foster said he hopes to hire five more by the end of the year.

"I am looking to add commercial and private bankers right now," he said. "Those will be two areas of growth."

There are more opportunities in Arizona than in the company's home state, Foster said.

"We are definitely looking to add staff and grow our lending portfolio," he said. "I don't know if we will be growing branches anytime soon."

Johnson Financial is one of four business operations privately owned by the Samuel C. Johnson family. The others are SC Johnson (maker of household cleaning items such as Glade, Windex and Pledge), Diversey Inc. and Johnson Outdoors.

Foster replaces Bill Morgan, who left the bank last fall to pursue other opportunities.

Foster, who has been with Johnson since 1992, has an MBA in finance and banking from Indiana University. A past board member of the Greater Milwaukee Open PGA Tour event and the Ronald McDonald House, he said he looks forward to becoming involved in local organizations in the Valley.

Before joining Johnson, he worked at M&I Bank, also based in Wisconsin.

Feature Article - Spring 2011 | By Andrew Singer

2010 WAS A RECORD year for wealth management at Johnson Bank, the Racine, Wisconsin-based institution that has more than 60 branches in Wisconsin and Arizona.

Brian Lucareli, Johnson Bank

• In February, Pennsylvania's Bryn Mawr Bank Corp. announced that it was buying Hershey Trust Co.'s private wealth-management business, adding 25 employees and $1.1 billion in assets under management to its then 50 employees and $3.4 billion under management.
• Also in February, IBERIABANK (Lafayette, LA) announced the signing of an agreement to purchase certain assets of the Florida Trust Company, a wholly-owned subsidiary of the Bank of Florida Corporation that had $460 million in assets under management. "This transaction provides an opportunity to accelerate the entry of our Trust and Wealth Management businesses into our key Florida markets," said Jefferson G. Parker, Vice Chairman and Managing Director of Trust, Brokerage and Wealth Management for IBERIABANK, in a press release.
• Most notably, perhaps, on April 20, LPL Financial LLC, the nation's largest provider of third-party investment services to banks and credit unions, announced the intent of its parent company, LPL Investment Holdings Inc., to acquire Concord Capital Partners ("Concord Wealth Management"), which provides technology and investment management solutions to bank trust divisions.

LPL has typically worked with banks in the brokerage and advisory areas, but not in trust. That will change with the Concord Wealth Management acquisition. LPL has 300-plus banks with trust powers-roughly half of its client institutions-and most of them will be able to profit from Concord's technology and "open architecture" investment management solutions, LPL Divisional President Dan Arnold told us.

Concord Wealth Management (Matawan, NJ) has more than $10 billion in assets under administration. Its executive managing director, Nicholas Mariniello, was quoted extensively in this publication in a recent story on bank wealth management. (See "Brokerage and Trust Together Under The Wealth Management Umbrella," Bank Insurance & Securities Marketing magazine, Winter 2011.)

The Business Journal

Date: Monday, June 6, 2011, 9:05am CDT 

Provided by Johnson Bank

Tom Bolger has been named CEO at Johnson Bank and parent company Johnson Financial Group.

Tom Bolger, who was one of Harris Bank's top Wisconsin executives until he left Harris in May, has been hired as CEO of Johnson Bank and its parent company Johnson Financial Group.

Russ Weyers, who has been CEO of Johnson Bank, remains with the bank as president and also continues as president of Johnson Financial, the Racine-based company said Monday. Weyers had succeeded Richard Hansen in January as CEO of the Racine-based bank and Johnson Financial Group.

Bolger is a 40-year veteran of the banking industry in Wisconsin and Illinois, including a 30-year stint at M&I Bank. He was president of M&I when he left in 2004 when then-chief financial officer Mark Furlong was named president. Bolger led Harris Bank in Wisconsin starting in October 2007.

Harris Bank parent BMO Financial is buying M&I parent Marshall & Ilsley, resulting in a series of management changes at both banks. Bolger last month declined to comment on the reason he left Harris Bank.

"We are at a pivotal moment in our evolution and with his 40 years of financial services experience, Tom is the right leader at the right time to help us reach the next level of operational effectiveness and efficiency," said Helen Johnson-Leipold, chair of Johnson Financial Group. "His intimate knowledge of the competitive landscape will also be key in helping us maximize our unique market opportunities."

Russ Weyers, who has been CEO of Johnson Bank, remains with the bank as president and also continues as president of Johnson Financial. Weyers had succeeded Richard Hansen in January as CEO of the Racine-based bank and Johnson Financial Group.
Bolger is a 40-year veteran of the banking industry in Wisconsin and Illinois, including a 30-year stint at Milwaukee-based M&I Bank. He was president of M&I when he left in 2004 when then-chief financial officer Mark Furlong was named president. Bolger led Harris Bank in Wisconsin starting in October 2007.

Harris Bank parent BMO Financial is buying M&I parent Marshall & Lisle Corp., resulting in a series of management changes at both banks. Bolger last month declined to comment on the reason he left Harris Bank.

"We are at a pivotal moment in our evolution and with his 40 years of financial services experience, Tom is the right leader at the right time to help us reach the next level of operational effectiveness and efficiency," said Helen Johnson-Leipold, chair of Johnson Financial Group. "His intimate knowledge of the competitive landscape will also be key in helping us maximize our unique market opportunities."

Posted June 23, 2011

RACINE - Newly appointed Chief Executive Officer, Tom Bolger and the boards of directors of Johnson Financial Group and Johnson Bank today announced that they have named Judy Carre Sutfin as Chief Financial Officer of Johnson Financial Group and Johnson Bank.

Ms. Sutfin most recently served as CFO at AMCORE Financial, having been hired to work through the issues and eventual transition of that organization. Prior to that, Sutfin spent 23 years with LaSalle Bank Corp in Chicago, in increasing roles of responsibility across many functions and areas within accounting and finance.

"This is a critical role and Judy's knowledge, experience and managerial strength will serve us well as we continue to build a stronger organization," said Bolger.

Sutfin succeeds, Dennis Axelson who retired from the company in January of this year. Sutfin received her master's degree from the University of Chicago, and received the Chicago United Business Leader of Color Award in 2007. She also serves on the University of Illinois Alumni Board Finance and Audit Committees.

Sutfin said, "The combination of family ownership, strong culture and a focus on doing the right thing for clients makes this a great opportunity for me," said Sutfin. "I see an organization with a great deal of potential."

By Paul Gores for the Journal Sentinel

July 28, 2011

The new head of Racine's Johnson Bank has brought in a former colleague who worked with him previously at two banks - Harris Bank and M&I Bank.

Peter X. Engel has rejoined Tom Bolger at Johnson Financial Group, where Bolger became chief executive of the bank and its parent earlier this summer.

Engel was named executive vice president of consumer banking for Johnson Financial Group and Johnson Bank, the company said Wednesday. He will focus on developing integrated sales, product and marketing strategy for the company.

"As a Wisconsin-based, Johnson family company, our reputation and long-standing relationships with clients are truly unique," Engel said. "This will be even more important in the future and I'm proud to be part of the team that takes this company to the next level."

Johnson Bank has struggled over the past year with loan delinquencies.

Before Canada's BMO Financial Group, the parent company of Harris Bank, acquired Milwaukee's Marshall & Ilsley Corp. for $4.1 billion on July 5 - greatly expanding its presence in the Midwest - Bolger and Engel led Harris' Wisconsin operations. Bolger was market president and commercial lending chief and Engel was president of retail banking. Both left Harris while the M&I-BMO deal was being finalized.

Earlier, Bolger and Engel had worked together as executives at M&I.

By Jessica Stephen

July 29, 2011

August 28, 2011

Milwaukee Journal Sentinel

Current market favorable to building new. Yes the economy has seen better times but sluggish markets and high unemployment may just have an upside. Fewer customers in the marketplace mean competitive prices for goods and services. Homebuilders are benefiting from having the best construction crews and craftsmen available for their building projects and building materials are competitively priced Builders are vying for business so they are passing the quality and savings along to their customers. There also is a wide selection of lots to choose from in desirable developments. Projects start quickly and stay on schedule. So all in all it s a good time to build a home. Yes building materials are priced competitively but we also do things now with materials and construction techniques that save our customers money in both the purchase price of the home and energy costs for years to come said Shelly Basso owner and president of Aspen Homes. Aspen Homes has been building homes since 1993 and currently has nine homes under construction Aspen Homes will be showcasing the Jameson model in Hawks Meadow in Pewaukee at the 2011 Parade of Homes.  The Jameson is a two story Craftsman style home with four bedrooms and two and half baths. It is a Focus on Energy home. Also builders have been careful not to put too much inventory in the market said Dave Dickie sales manager for Wolter Brothers Builders. We find that our customers get what they want if they contract to build he said. We are seeing more people scaling back on the size of the home but not the amenities or craftsmanship. Dickie said customers will always want a quality product and a home that is very energy efficient. Our homes have geothermal heating and cooling systems he said. There are federal tax credits available for homeowners with homes that have various energy saving features or use energy saving materials. Many of these tax credits have been extended out until 2016 For more information visit energystar gov. Wolter Brothers built the Autumn Ridge model at Hawks Meadow in this year's Parade. The three bedroom two and half bath split ranch home features an open concept design and is a Focus on Energy home. Also there has been no appreciable price increase in new homes in about five years said Rod Demlang owner and president of Demlang Homes. It's really a combination of competitive prices on building material, an A team on every building site and historically low interest rates. Also at Hawks Meadow Demlang Builders is featuring the Brittany a split ranch home with a finished basement and three seasons screened in porch. It's a Energy Star certified home. Demlang said of the three bedroom, three bath model. Paying for the project. Historically low interest rates are great but are banks lending? Yes, interest rates are at historic lows for all loans and it's not difficult to get financing for qualified borrowers said Bill Winkler director of mortgage banking at Johnson Bank. Whether you are building or buying an existing home Winkler s advice is simple. Seek out a good lender he said A good lender is a good adviser…One who will talk to you about lending programs that are right for you and will help you understand the financing of your home. Adjustable rate mortgage loans are used while the home is under construction. The rates are locked in for three to five years Winkler said. However you pay interest only until the house is complete. After which the loan rolls over to permanent financing where you pay interest and principle. Currently ARMs are hovering around 4. Winkler said there is value in establishing a long term relationship with your bank. A good builder and a good lender make it a good time to build a home.

Tom Bolger, chief executive officer of Johnson Financial Group and Johnson Bank today announced the appointment of Daniel L. Kaminski as executive vice president of strategic projects for the company.

"Dan is a very talented and experienced financial executive," said Bolger. "His breadth and depth of leadership coupled with a strong record of accomplishment will be instrumental in our efforts to continuously improve as an organization."

A Certified Public Accountant, Mr. Kaminski has extensive financial experience spanning more than 26 years with M&I Bank. His accomplishments there include creating the Special Assets Division and serving as CFO of the Wealth Management Division as well as managing major corporate projects. Most recently, Kaminski served as the senior vice president of the Special Assets Division before joining Johnson.

A resident of Whitefish Bay, Kaminski is a graduate of Marquette University.

By Paul Gores of the Journal Sentinel

November 1, 2011

Johnson Financial Group said Tuesday that Racine's Johnson family will make a capital investment of $235 million in the company, a move that will recapitalize Johnson Bank and assure it remains privately owned.

Johnson Bank, the second-biggest bank based in Wisconsin, lost $220 million in 2010, mostly because of real estate loans that soured in the weak economy. Through the third quarter of this year, it has lost about $10 million, according to regulatory records.

"My father, Sam Johnson, founded Johnson Bank over 40 years ago to deliver the exceptional service our customers deserved but couldn't get from the large national banks, and that need has never been greater," Helen Johnson-Leipold, chairman of the board of Johnson Financial Group, said Tuesday in making the announcement. "This is a commitment by the family to ensure we remain independent, privately owned and focused on meeting the needs of our local customers and communities for the long term."

The Johnson family's investment was formalized on Oct. 28, and will close following completion of the regulatory approval process. The additional capital will raise the bank's capital ratios above well-capitalized status and position the company and its customers for sustainable, long-term success, Johnson Financial Group said.

Last summer, Johnson Financial hired Tom Bolger, a former M&I and Harris Bank executive, to run the bank and its parent company.

Although Johnson Bank expects to have loan losses into 2013, Bolger said Tuesday, the infusion of capital allows the bank's employees "to begin playing offense rather than playing defense, as they have for basically a year now."

"As the economic recession has lingered and as the turmoil in the banking industry - particularly in Wisconsin - has intensified, we think there are many employees and customers of other banks who are unhappy or unsure or frustrated with their current financial institutions," Bolger said. "And we think this announcement today is really a key cornerstone in presenting Johnson Financial Group as a great alternative for employees and for customers."

Johnson-Leipold said the bank never was for sale as it struggled last year, but the company looked at all its options, including outside investors, to raise capital. The company has been under orders from regulators to develop a capital plan.

"I think it was very thorough and very productive, and the family always was going to participate in some way, but we didn't really know exactly at what level and we were still in the process of identifying how much capital actually was needed. So we went through the process and had quite a bit of interest," she said. "I think where we ended up is that we felt even better about the business and about the opportunities and also the importance of being family owned and operated, so we decided as a total family to participate at the 100% level."

Bolger said there were outside investors "that were very interested in the investment and made very credible offers to put the investment in," but those investors would have brought different terms and exit provisions in as part of the deal.

"Ultimately, at the end, the family decided it was the best long-term investment to put all of the funds in and have it as a family owned company," he said.

Bolger said going through the process of considering outside investors helped validate $235 million in capital.

"The $235 million number was really a number that the outside professional investors felt was needed to recapitalize the company, to keep us above 'well-capitalized' status and really allow us to run the business and grow the business going forward," Bolger said.

Johnson-Leipold said the commitment of Bolger to run the business also was "a critical aspect of moving forward."

Jon C. Bruss, chief executive of Fortress Partners Capital Management in Hartland, said the decision of the Johnson family to make the entire capital investment is good for banking in Wisconsin.

"I'm pleased with the outcome because ultimately I suspect what would have happened is that second-largest bank in the state would end up being controlled by someone out of state," Bruss said. "And I don't know that that's something that would be particularly healthy for the state of Wisconsin."

The Business Journal by Rich Kirchen, Senior Reporter

Date: Wednesday, November 9, 2011, 4:49pm CST 

 

Peter Engel

 

Johnson Bank changed the leadership in its Milwaukee region, naming Peter Engel regional president and moving former Milwaukee president Brad Quade to a new role.

Engel is a former Harris Bank and M&I Bank executive who joined Johnson Bank in July as executive vice president of consumer banking. Johnson Bank said Wednesday afternoon that Engel is expanding his responsibilities to include Milwaukee regional president.

Quade will "continue to have commercial leadership responsibilities in Milwaukee" as senior commercial banking manager, Johnson Bank said. The bank is part of Johnson Financial Group, Racine.

"Milwaukee is a very important part of the Johnson Financial Group strategic plan," CEO Tom Bolger said. "Peter's leadership and experience in the market will significantly strengthen our Milwaukee-area team."

Rich Kirchen is The Business Journal's senior reporter. He covers banking, financial services and politics.

RACINE - Johnson Bank will expand access to its ATM network with MoneyPass. The new offering is part of the bank's plan to continue expanding their services to customers.

"Johnson Bank customers now have access to thousands of surcharge-free, convenient ATM locations-giving them more choices for accessing their accounts," said Peter Engel, executive vice president of consumer banking at Johnson Financial Group and Johnson Bank. "Being a part of the MoneyPass network translates into significant benefits for our customers."

MoneyPass already has nearly 20,000 ATMs coast to coast and the network continues to grow. MoneyPass ATMs offer customers surcharge-free access to their money.

"The MoneyPass network lets our customers know we remain committed to providing them the best services available," Engel said. "Regardless of where you live, work or travel, our customers can find a MoneyPass ATM nearby."

Customers wanting to use the new service should look for the MoneyPass logo and use their existing Johnson Bank ATM or debit card. 

"It's easy and it's all part of Johnson Bank's commitment to deliver the best products and services to our customers," added Engel.

For more information on MoneyPass, including the MoneyPass locations nearest you, visit www.moneypass.com. For even greater convenience, customers can access ATMs at www.johnsonbank.com/locations-atms or download locator apps for your iPhone or Droid. For additional information contact Johnson Bank at (888) 769-3796 or visit www.johnsonbank.com.

Thomas Bolger, chief executive officer of Johnson Financial Group and Racine-based Johnson Bank, and Helen Johnson-Leipold, chairman of the board, announced today that the previously announced Johnson family investment of $235 million in the company has been approved by the Federal Reserve Bank.
With the additional investment, the bank's capital ratios will be above the Fed's well-capitalized threshold.
"This commitment by the family ensures that we will remain independent, privately-owned and focused on meeting the needs of our local customers and communities for the long term." said Johnson-Leipold. "As we continue to enhance our services and delivery and the banking landscape continues to change, we see tremendous opportunity ahead."
Johnson Bank occupies a unique position as a privately-held, family-owned company headquartered in Wisconsin.
"Businesses and customers are looking for a strong, local bank that will take the time to understand their unique needs and build a lifelong relationship," Bolger said. "This investment allows us to help our customers succeed and contribute to the growth of our communities."