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Money Weekly

Southeastern Wisconsin financial service industry news.


Tuesday, April 1, 2008

North Shore Bank launches leasing division

North Shore Bank recently opened its North Shore Bank Leasing LLC division. The new service, based at 10923 W. Mitchell St. in West Allis, focuses on vehicle and equipment leasing to the bank's commercial clients, said Chuck Storniolo, general manager of the leasing company.

"The bank has thousands of business customers who are always relying on the bank for financial help," he said. "And one way to improve their cash flow is with leasing. Being a bank, with all of the customers we service, this is just another service to the customer."

The bank received numerous requests from commercial customers to provide leasing services.

"(The bank) was getting inquiries about leasing, and it was referring customers to other companies that lease equipment," Storniolo said.

North Shore Bank Leasing can lease cars, trucks, sport utility vehicles, cargo vans and other vehicles from any manufacturer. It also leases equipment for commercial businesses, ranging from medical devices for physician offices to printing equipment to fork lifts to ovens and refrigeration equipment for restaurants to electrical equipment such as HVAC systems.

In the coming months, Storniolo and his leasing team will begin teaching North Shore Bank's commercial lenders about leasing. Commercial lenders will help steer potential clients to the leasing company when appropriate, Storniolo said.

"For businesses, there are some leasing advantages," he said. "They don't have to show (vehicles or equipment) as assets on their books. And we are the only (bank) in the market that leases vehicles directly to consumers and businesses."

North Shore Bank Leasing now has three employees - Storniolo, a leasing specialist and an equipment specialist. The division is likely to hire two additional employees by the end of the year, he said.

It also houses several of the bank's employees who specialize in selling vehicles whose leases have run out.

"We sell 40 to 60 vehicles a month here," Storniolo said.

North Shore Bank Leasing also will likely need to move within the next few years to accommodate its growth, Stornolio said.

"We feel that we'll grow sooner rather than later," he said. "There are people that have needs, and they have them today."

M&A Deals of the Week

Marcus Corp. to acquire Nebraska theater chain
Marcus Theatres Corp., a division of Milwaukee-based Marcus Corp., has signed an agreement to acquire selected assets of the Douglas Theatre Co. theatre circuit in Lincoln, Neb., for approximately $40.5 million in cash, subject to certain closing adjustments.
Marcus Theatres will acquire and operate, through a subsidiary, seven Douglas Theatres locations with a total of 83 screens in Omaha and Lincoln. Douglas Theatres will continue to operate the Cinema Center Theatre in Omaha for an undetermined period of time, and will also close, but continue to own the Cinema 9 property in Omaha.
Marcus Theatres has agreed to purchase, subject to certain conditions, an additional site for the development of a new theatre in LaVista, Neb., for approximately $4.4 million, and has an option to purchase another undeveloped site in North Lincoln.
Douglas Theatres is the nation's 42nd-largest theatre circuit, currently operating 100 screens at nine locations in Nebraska. Upon completion of the transaction, Marcus Theatres will operate 678 screens at 56 locations in seven states and remain the seventh-largest exhibitor in the United States.
Bruce Olson, president of Marcus Theatres, said, "Ever since our company entered the theatre business with a small-town theatre in Ripon, Wis., in 1935, Marcus Theatres has been a leader in the exhibition industry. Marcus Theatres was among the first circuits to convert the vast majority of its first-run auditoriums to digital sound and stadium seating. Our company has also consistently been at the forefront of innovation in the industry, with our UltraScreen concept, comfortable high-back seats, online print-at-home ticketing, lobby entertainment on flat-screen monitors, self-service soft drinks and other amenities. We have a tradition of continually upgrading our theatres and adding new features and services that make the movie-going experience better than ever. We look forward to serving the customers of Douglas Theatres in Omaha and Lincoln."

Manpower to acquire LA recruiting firm
Milwaukee-based Manpower Inc. has entered into an agreement to acquire CRI Inc., a recruitment process outsourcing service provider based in Los Angeles, Calif. CRI is privately held, and terms of the acquisitions were not disclosed.
When the transaction is complete, CRI will operate under the Manpower Business Solutions service line.
“This acquisition of CRI is part of our strategy to strengthen our presence in the rapidly growing RPO market. Our leadership in RPO allows us to help our clients grow nationally, as well as globally, by providing them with access to an experienced network of recruitment professionals who specializes in recruiting key talent such as sales, IT, engineering and finance professionals,” said Jonas Prising, President of Manpower North America.
Manpower Business Solutions is a global Manpower service line where the company takes on the management of customized, large-scale recruiting and workforce-intensive initiatives for clients, including managing a company’s entire recruitment process. Through MBS, Manpower currently delivers RPO solutions to clients in over 20 countries worldwide.

Profile of the week

Name: Kevin Seiberlich
Title: Managing Director
Company: Optimus Financial Services, LLC
City of Residence: Menomonee Falls, Wisconsin
Family: Married to Debbie;, two daughters: Maddie and Allison.
How does the market look to you?  "I believe the overall economy is weak, and it is slowly hitting Wisconsin businesses, lenders and investors. In the past six to 12 months, all types of lenders are tightening their credit criteria and investors are scrutinizing their deals even more, which leaves businesses less options. Since we help businesses through crisis situations and turnarounds through improving profit/cash flow and assist with restructuring their corporate finances, our business has really picked up. This just means that Wisconsin businesses need to start the process of changing the way they are looking at how they do business and the effects on their financials. The good news is we are seeing business come back from overseas which will help level out the stresses companies have faced previously."
What are you working on now? "We are currently helping several companies look at restructuring and refinancing their existing debt. We are also acting as interim CFO, treasurer, finance director and GM for several companies that are either distressed or growing very quickly."
What was the best deal you've been involved in? "There are two engagements that really standout. One was a middle market supplier that was growing quickly and going through some difficult situations, and we helped provide a solid plan to focus on while we facilitated a $40 million financing which enabled the company more flexibility to grow. The other one was a difficult transaction which enabled a third generation to buy out the second generation, and we provided the company a fresh start to continue that business another 60 years." 
What was the funniest or most interesting moment of your career? "I was the division controller of a company that did over 10 acquisitions within 18 months and had to spend some time in the UK rolling together the European operations. When I was there, the British soccer team was in the World Cup, and I was wondering why no one was at work one Friday afternoon. Well, I soon realized where everyone was when I heard a loud roar from the streets and looked out our office window to see people lined up outside at all the bars. Let's just say we did not get a lot of work done that day."

Money Odds & Ends

Paulson unveils financial regulatory restructuring plan
U.S. Treasury Secretary Henry Paulson on Monday unveiled his blueprint to overhaul the nation's financial regulatory structure.
"Few, if any, will defend our current balkanized system as optimal," Paulson said.
The plan would consolidate financial regulation into three agencies and give new powers to the Federal Reserve Bank to investigate all aspects of the financial markets, including hedge funds, if there is a threat to national financial stability. His plan includes the creation of new regulatory agencies to monitor mortgages and other transactions.

Thompson Plumb Funds launches new mid-cap fund
Madison-based Thompson Plumb Funds Inc. recently launched a new no-load fund named The Thompson Plumb MidCap Fund. The fund will focus on domestic equity securities with market capitalizations between $1 billion and $10 billion, and will be headed by John W. Thompson, CFA.
Thompson Plumb Funds operates two other funds: the Thompson Plumb Growth Fund ,  and Thompson Plumb Bond Fund. John W. Thompson is owner of Thompson Plumb Funds. He also owns Thompson Investment Management Inc., which serves as advisor to the funds.
For information, visit www.thompsonplumb.com.

MGIC raises $848 million in stock sale, debt offering
MGIC Investment Corp. recently sold 42.9 million shares of its common stock, raising about $483 million, and sold $365 million worth of convertible junior subordinated debentures.
Subordinated debentures usually work as debt that is convertible to shares of stock in the future, Michael Zimmerman, MGIC's senior vice president of investor relations, said previously.
The company said it will use the proceeds of both the stock offering and the subordinated debentures to fund the company's operations and expand its volume of business.
MGIC has been battered by the subprime mortgage crisis. The company had a net loss of $1.67 billion in 2007, compared with net income of $564.7 million for 2006. Diluted loss per share for the full year was $20.54, compared with diluted earnings per share of $6.65 in 2006.

Northwestern Mutual to donate $1 million
Northwestern Mutual Insurance Co. Inc. is inviting customers to express their priorities by voting online to determine how much money the Milwaukee company will donate to four national charities.
The company intends to donate $1 million to be divided among: America's Second Harvest - The Nation's Food Bank Network; Susan G. Komen for the Cure; Habitat for Humanity in New Orleans, La.; and the YMCA.
Each organization is guaranteed to receive at least $100,000.
To vote on which charity deserves more, visit www.letyourworriesgo.com, an interactive site that empowers people to "let go of their worries" using a medieval catapult, rocket ship, submarine or hot air balloon.

Financial Services People in the news

Lake Shore Wisconsin Corp., the proposed holding company for Lake Shore Bank in Sheboygan, announced the formation of its board of directors. Joining James Meisser, who will become the nation's first profoundly deaf bank president and chief executive officer, will be chief operating officer and controller Jeanene Meisser and chief credit officer and managing director Thomas Schueller. Other members of the board will include: Miguel Bayliss, Sheboygan; Richard Bemis, Sheboygan; Eldon Bohrofen, Kohler; Anne Grunau, Milwaukee; Edward McKelvey, Sheboygan; Stephen Skoronski, Kohler; Richard Testwuide, Bell Canyon, Calif.; Daniel Waibel, Sheboygan; and Dirk Zylman, Sheboygan. Lake Shore will be located at 615 Pennsylvania Ave. in Sheboygan and is expected to open by early third quarter 2008.

MWBank recently appointed Tom Manthy, owner of Lakeland GMC & Jeep and Pontiac dealerships in Oconomowoc and the Chevy, Pontiac and Buick dealership in Lake Mills; Keith Pollnow, president and CEO of Choice Bank of Oshkosh; and John E. Perry, vice president at Wauwatosa Savings Bank, to its board of directors.

Community Bank & Trust recently hired Michael Shadduck as vice president mortgage lending and business development for its Appleton office. Michael has over 9 years of financial experience having worked at other banks and a title company. He graduated from the University of Wisconsin Oshkosh with a degree in Finance.

DeWitt Ross & Stevens recently hired Peter J. Manghera to its Intellectual Property Group in Madison. Manghera's practice focuses on preserving and exploiting investments in technology by obtaining patent protection for inventors and counseling businesses in the area of patent law. He has worked with technology in a variety of mechanical, electrical, and software fields, including: computers and other digital systems, controls and communications, implantable and diagnostic medical devices, semiconductor and micro machine fabrication, business methods of financial institutions, statistical analysis and applications, data manipulation and presentation, and others.

Jefferson Wells, a global provider of internal audit and controls, technology risk management, tax, and finance and accounting-related services, presented Kris Best with its Corporate Director of the Year Award at its Annual Kickoff Event in February. The Corporate Director of the Year Award is given to the individual who demonstrates excellence in engagement management and client service, as well as commitment and contribution to thought leadership.

Calendar

Associated Financial Group's 2008 Leaders Forum, April 15, 7:30 a.m. to noon, at Marcus Majestic-Brookfield, 770 North Springdale Road; call Michelle Cattoor at 800-258-3190 to register or register online at www.associatedfinancialgroup.com/leadersforum.

The Reform of the European Union and Transatlantic Economic Relations Luncheon, April 2, 11:30 a.m. to 1:30 p.m., Grohmann Art Museum on the Milwaukee School of Engineering Campus, 1000 N. Broadway, Milwaukee; keynote speech will be delivered by German Consul General Wolfgang Drautz; presented by the Wisconsin Chapter of the German American Chamber of Commerce; $25 members, $35 non-members; register at www.gaccom.org.

Financial Executives International Milwaukee Chapter meets on the second Tuesdays of the month at 5:30 p.m., University Club, 924 E. Wells St., Milwaukee. Call Mary at (414) 226-6975.

Financial Resources


Eric Decker This exclusive news bulletin is compiled by BizTimes Milwaukee reporter Eric Decker. Send financial services industry news and tips to eric.decker@biztimes.com

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