Community Bank & Trust, Sheboygan, Wis., is opening a branch in the Milwaukee suburb of Franklin. The bank has two existing offices in greater Milwaukee, one in Greenfield and one in Glendale. The new 6,500-square-foot shop will operated as part of a 57,000-square- foot building within the Franklin Office Park. The building's development entered the construction phase in July. The branch is expected to be open by December. Franklin has enjoyed steady commercial and retail growth, said bank President Paul Farrelly. "We think it's one of the best locations in the area," he said. "Development around the Franklin park is increasing. It's growing. You look out from the spot and see a lot of opportunity.

"Some of the other businesses in the park are already our customers. And that's how we like to grow the bank; it's very much based on where the customers are already and what their needs are," Farrelly said. The bank finds those spots the best ones to step into.

"We see other similar opportunities in Milwaukee and plan to open more branches in the future, but what we don't want to do is rush into any market or a section of the metro just because it's growing," Farrelly added. "We kind of grow with our customers."

The new bank will launch with a staff of eight to 10, said Farrelly, and additional staff from the nearby Greenfield office will be on hand as needed. "Without over-lapping too much, it's a strategic reason for the location," he said. "It adds more convenience for our customers and we can double up some resources with the Greenfield branch as we get going - we can share some resources. The new branch will have a lead banker overseeing day-to- day operations, but you probably can never have enough support when you first open the doors."

S.D. family-owned banks combine

First State Bank of Claremont in Groton, S.D., has completed an acquisition announced in January of the $11 million Langford State Bank in Langford, S.D. First State enters the merger with $34 million in assets. The transition to a combined bank is humming along, said bank President Jeff Stohr.

"The computer system is about the last big piece we've yet to fully combine, but that shouldn't cause too many problems," he said. "We're similar banks and things overall aren't going to change very much in Langford. We're just a little bit larger of a bank, and we can offer a few more services down the road, so that's what we're looking forward to."

Both family-owned First State Bank and Langford State Bank have deep roots in their communities. Coincidentally, they both opened for business in 1903. The Stohr family took over controlling interest of First State in 1950, and Jeff, took over operations roughly 20 years ago. The Erickson family has controlled Langford State since 1972. Family banks of this size share a multitude of sensibilities, said Stohr, and those familiarities make merging two such banks a little easier.

"I think the Langford customers know what to expect from us," Stohr said. "There aren't going to be any big surprises. Both of these banks have been run in the type of way true independent community banks are run. Our customers and Lanford's customers already know there's a difference in that."

Illinois holding company adjusts for net loss

In response to a slippery economy and dipping profits, $1.6 billion Mercantile Bancorp, Inc., Quincy, Ill., the bank holding company for Mercantile Bank and Farmers State Bank of Northern Missouri, plans to merge Farmers into Mercantile. Farmers' locations in Savannah and St. Joseph, Mo., will operate as Mercantile branches once the deal is completed. Following the merger, Mercantile Bank will have $710 million in total assets with five branches in Quincy, Ill., two branches operating in St. Joseph, and one in Savannah.

In the holding company's first quarter earnings statement, Mercantile told investors that the merger was one corrective step the bank was taking after posting a $1.7 million net loss that quarter. Other moves include moving a location within Quincy, "investing in new technology, and opening a loan production office in Carmel, Ind.," said Mercantile Bancorp President Ted Awerkamp. "As difficult as the current environment is, we are in an excellent position."

"This [merger] makes considerable business sense from an operational standpoint," said Awerkamp. "The greater operating efficiency and added growth will be noticeable."

Farmers State Bank leads the holding company in developing a brokerage management services template. Mercantile's expertise is in trust and business banking. A combining of the two will result in continued growth for the franchise."

The Carmel, Ind., loan production office was announced in February. Carmel, an outlying suburb of Indianapolis, has doubled in population in the last 10 years. Mercantile hired Kevin Murphy, most recently senior vice president for M & I Bank, Indianapolis, to lead the office, which will operate as an arm of Mercantile Bank.

"Our strategy in entering new markets is to find the best local people possible to help us build our presence," said Mercantile Bank President H. Blaine Strock III. "Kevin is a true hometown product, in addition to being an experienced banker. The essence of successful community banking is to know your market, and how to tailor products and services. Kevin brings all these capabilities to the table."

Copyright NFR Communications Inc Aug 1-Aug 14, 2008

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