Money Weekly for Tuesday, April 8, 2008

Southeastern Wisconsin financial service industry news.

Tuesday, April 8, 2008

New owners will change MW Bank's name

Millwaukee-based MW Bank has been purchased by an investment group led by David Davis, president and chief executive officer, and Michael Peters, executive vice president and chief operating officer. Davis, Peters and their investors purchased the controlling interest formerly held by Roger Dirksen, the bank's chairman. In total, the investors group raised more than $20 million for the purchase. Dirksen, along with Davis, Peters and several local investors, purchased the bank in 1994. "When we first purchased the bank, the strategic plan was to be here seven to 10 years," Davis said.

However, the bank struggled during the economic slowdown in the aftermath of Sept. 11, 2001. Its owners recognized that selling the bank then would not have given their investors the return they wanted. "The highest and best value for the bank was to continue it on," Davis said. The sale was about five years in the making, Davis said. "It was a 60-month project," he said. "I spent time working with my colleagues to create asset quality and to right the ship from 2000, and we got back to stable earnings in 2005."

A request by MW Bank to change its name to Securant Bank & Trust was recently approved by the Wisconsin Department of Financial Institutions. Davis said the name change will be rolled out in June, and he declined to discuss it further. MW Bank is now offering several new services that complement its focus on commercial lending, Davis said. Over the last six months, the bank has hired new managers for wealth management, trust management and private banking, services the bank is rolling out because of customer requests.

"Wealth management, private banking and trust management is a natural transition for our clients," Davis said. "Our clients are aging. We've lost five our clients in the last year when they sold their businesses. They deposit the money in the bank, because they trust us, and ask us what they should do with it. And if we are unable to provide them with resources, they go away."

MW Bank opened a new branch in Slinger earlier this month and is planning additional locations in southeastern Wisconsin, Davis said. "I hope to have one more in the fourth quarter this year or the first quarter of next year," he said.

Johnson Bank's Brookfield branch will open June 2

Racine-based Johnson Bank will open a new branch at 14000 W. North Ave. in Brookfield on June 2. Work on a new 12,000-square-foot building is being completed now, said Brad Quade, Milwaukee market president for the bank. "This will be a teriffic location in terms of coverage and the level of service that will be available," Quade said. The bank's closest branches are in Whitefish Bay, downtown Milwaukee and Pewaukee, Quade said.

The branch will offer traditional retail and mortgage services on its first floor. The second floor will offer investment management, private banking and wealth management, Quade said, services that will be based from that branch. "It also helps as we look at follow clients to the places they live and work," he said. "We want to provide convenient locations." The branch will also be a LEED-certified green building. Its HVAC system, lighting and electronics will be low energy models, and its choices of materials for paint, flooring, fabrics on chairs and work surfaces will be environmentally friendly.

The new branch will have on-site water detention in a basin beneath its parking lot. Johnson Bank was started in 1970 by the late Sam Johnson, and the LEED certification is part of the family's philosophy of protecting the environment. "We've always been sensitive to it, and now we are able to demonstrate it via certifications," Quade said.

Wisconsin Banking News

Marine Bank parent company unloads Florida assets
Pewaukee-based CIB Marine Bancshares Inc., the beleaguered parent company of Marine Bank, has reached a definitive agreement to sell all of the branches, substantially all of the deposits and the majority of the loan portfolio of its Florida banking subsidiary, Citrus Bank N.A. The Florida operations will be sold to 1st United Bank, a subsidiary of Boca Raton, Fla.-based 1st United Bancorp Inc., at book value, plus a $7 million premium. The transaction, which is subject to certain conditions including approval by regulatory authorities, is expected to be completed within two to four months.

Following closing and receipt of regulatory approval, approximately $27 million in capital (consisting of the premium and certain retained loans) will be transferred to CIB Marine. CIB Marine Bancshares Inc., which lost $13.8 million in 2007, has incurred five consecutive years of multi-million dollar losses. "The CIB Marine board of directors is deeply committed to strengthening the company and its banking subsidiaries, creating shareholder value, and serving our communities," noted Stanley Calderon, chairman of the board of CIB Marine. "This sale, together with our ongoing efforts to reduce expenses and generate revenue, provides clear evidence of our determination to resolve critical issues and return value to our shareholders."

M&A Deals of the Week

Indian firm to acquire Criticare
A subsidiary of Opto Circuits Ltd. of Bangalore, India, recently completed its tender offer to acquire the outstanding shares of common stock of Waukesha-based Criticare Systems Inc. Stockholders of Criticare have tendered a total of approximately 11.5 million Criticare shares for $5.50 per share, representing approximately 93 percent of the outstanding shares of common stock of Criticare. As a result of the merger, Criticare will become a wholly-owned subsidiary of Opto Circuits, and Criticare's stock will no longer be listed on the AMEX. Criticare president and chief executive officer Emil Soika told SBT that the 80 jobs at the company's offices in Waukesha will be retained, as will the Criticare name and the company's leadership team. "We're going to stay here with our own name," Soika said. Opto Circuits is an Indian manufacturer and developer of medical devices, including digital thermometers, sensors, probes, pulse oximeters, patient monitoring systems, cardiac stents and catheters.
Criticare designs, manufactures, and markets cost-effective patient monitoring systems and noninvasive sensors for a wide range of hospitals and alternate health care environments throughout the world.

Modine to sell off Thermacore division
Modine Manufacturing Co. announced it has reached an agreement to sell substantially all of the assets of its Thermacore Inc. subsidiary, based in Lancaster, Pa. The company will be sold a new firm formed by Thermacore's management team. The transaction is anticipated to close in the first quarter of the company's 2009 fiscal year. Additional terms of the transaction were not disclosed. "The Thermacore sale marks another step in our commitment to fine-tune our product and business portfolio," said Tom Cromwell, managing director of Modine's Commercial Products Group. "As part of our ongoing evaluation process and our strategic focus on our core vehicular, HVAC and fuel cell markets, we recognized that the Thermacore business would be better positioned as a standalone company, allowing its management team to focus in the electronics cooling market." Racine-based Modine had acquired Thermacore in 2001 to add end-market diversification to its product line. On May 1, 2007, Modine announced its intention to evaluate its strategic alternatives for the electronics cooling business. Modine also announced last week it will close its plants in Camdenton, Mo.; Pemberville, Ohio; Logansport, Ind.; and Tubingen, Germany.

Trega Foods sold to Canadian dairy co-op
Little Chute-based Trega Foods Inc. was recently sold to Agropur Cooperative, the largest dairy cooperative in Canada. Trega Foods operates three facilities in Wisconsin where 300 employees annually process approximately 1.3 billion pounds of milk. The company sells about $300 million of cheddar, mozzarella, provolone, feta and whey products to a variety of customers. Terms of the acquisition were not disclosed. Trega Foods retained the Milwaukee law firm Godfrey & Kahn to evaluate the offer to purchase and advise it in the sale, which closed on Feb. 29. Attorneys David Navarre, Douglas Patch and Kasey Wroblewski worked on the transaction.

Delavan precision machine shop acquired
Delevan-based Swiss-Tech LLC was recently acquired by Cornerstone Industrial Group LLC, an Ohio-based private investment company. Terms of the acquisition were not disclosed. Swiss-Tech is a manufacturer of precision machined parts, serving the aerospace, medical, fluid power and industrial markets. Milwaukee-based Cleary Gull Inc. provided investment banking services to Swiss-Tech in the acquisition. For more, visit www.clearygull.com.

Profile of the Week

Name: Jennifer Wolff
Title: Business Law Attorney
Company: Godfrey & Kahn S.C.
City of Residence: Wauwatosa
Family: Married
How does the market look to you? "There are still a number of private equity funds looking for good acquisition opportunities. Lenders are more reluctant to lend to less profitable companies if the assets aren't there to support the loan. However, profitable companies may be able to take advantage of the competition between the banks for these opportunities. Also, we may see an increase in the capital gains rate in the near future, which is an incentive for some business owners to sell now."
What are you working on now? "Right now I am working on a number of leveraged buy-outs of companies by minority shareholders or members of management."
What was the best deal you've been involved in? "One of the most interesting deals I worked on was the acquisition and redevelopment by Marcus Corporation of a historic hotel in Oklahoma City. It involved issues regarding the acquisition of the property, historic and rehabilitation tax credits and financing. In the end the hotel turned out to be a huge benefit for the city."
What was the funniest or most interesting moment of your career? "One of the most interesting moments of my career was the first pro bono project that I worked on for a community organization. Although I only helped them clean up some corporate and administrative matters, they were so appreciative to have someone there to answer their questions. It was very rewarding."

Money Odds & Ends

Clifton Gunderson names new CEO, to move headquarters to Milwaukee
Clifton Gunderson, one of the nation's largest certified public accounting and consulting firms, announced it has named Krista McMasters as chief executive officer, and the company plans to relocate its headquarters to Milwaukee from Peoria, Ill. McMasters becomes the fourth CEO in Clifton Gunderson's nearly 50-year history. She also becomes the first and only female to serve as CEO among the nation's top 25 certified public accounting firms in the history of the profession. McMasters succeeds Carl George, who is retiring after 16 years as CEO of the firm. McMasters will begin the transition into her new role, effective immediately, until she officially takes office on June 1, 2009.

"Since joining our firm, Krista has played an instrumental role in key business initiatives at Clifton Gunderson - from ensuring our firm provides the best quality service to our clients, to providing strategic oversight to the firm's human resource and business development areas to grow our firm," George said. "The appointment of Krista as CEO is an exciting and significant step forward for our firm and we are excited about the passion and commitment Krista brings to her new role as CEO." McMasters becomes the fourth CEO in Clifton Gunderson's nearly 50-year history. She also becomes the first and only female to serve as CEO among the nation's top 25 certified public accounting firms in the history of the profession.

McMasters has a 30 year history with the firm, having joined as an associate accountant in 1978. She was admitted as a partner in 1985, became director of assurance services in 1989 and most recently serves as chief practice officer. George will continue to play a strategic role with Clifton Gunderson until his retirement in 2012. "For nearly two decades, Carl George has led our firm as a caring, charismatic and forward-thinking CEO, and I am very fortunate to have been provided with many amazing opportunities and experiences. Carl's leadership and commitment to Clifton Gunderson are characteristics to be admired and ones I will carry over in my new role as CEO," McMasters said. "I look forward to continuing to promote the unique and progressive Clifton Gunderson culture and I am excited about what the future holds for our firm and for our clients."

Landmark Credit Union sponsors financial show for kids
Landmark Credit Union is sponsoring a new financial education TV program for children called Biz Kid$. The weekly program airs on WMVS, Milwaukee Channel 10, every Thursday at 5:30 p.m. Each episode comes with teaching materials developed by Junior Achievement (JA) Worldwide to be used in classrooms and homes. As each episode airs, Biz Kid$ educational resources for parents, teachers and students are available at no cost on www.bizkids.com.

Financial Services Industry People in the News

Associated Banc-Corp recently hired Bernard Shaw as Senior Vice President, Manager of Correspondent Services. He brings more than 35 years of banking and financial experience to the position. Shaw will be based in Milwaukee. Previously, Shaw held the position of vice president of correspondent banking for LaSalle Bank in Milwaukee, where he was responsible for overseeing correspondent banking in Wisconsin and Minnesota. Other experience includes 18 years with Freddie Mac in a number of sales and credit management roles. Shaw holds a bachelor's degree in Finance from Marquette University, Milwaukee.

Associated Banc-Corp recently hired Donald Lloyd as senior vice president and international banking manager. Lloyd will oversee Associated's International Banking services. He will be based in Chicago. Before joining Associated, Lloyd served as vice president risk solutions, Commercial Foreign Exchange for Travelex Americas, where he directed a team of hedging specialists who supported more than 60 sales people throughout North America. Other previous experience includes senior management positions in foreign exchange with Fifth Third Bank, Bank of Montreal and Harris Bank.

Chris Guse has recently joined the State Bank of Newburg as a commercial lender. Guse brings 10 years of commercial banking experience to the State Bank of Newburg.

William Ridenour was recently appointed to the Johnson Bank - Wisconsin Board of Directors. Ridenour, who is the founder and managing partner of Ridenour Hienton Kelhoffer Lewis & Garth PLLC, in Phoenix, Arizona, has been practicing law for nearly 38 years. Ridenour was also one of the founders of Biltmore Investors Bank in Phoenix, Arizona, which opened in 1985. He was responsible for all legal work in forming Biltmore Investors Bank and has represented the bank and its successor Johnson Bank since inception.

Paula Hogan, founder of Hogan Financial Management, LLC has been named to the Top 50 Distinguished Women in Wealth Management list published by Wealth Manager Magazine. Paula has earned both the Chartered Financial Analyst designation and the Certified Financial Planner certification. She graduated from Princeton University with a degree in economics and received her M.S. from Harvard University. In 1992, she founded Hogan Financial Management, LLC, a comprehensive fee-only planning firm with a mission to enrich and simplify client's financial lives.

Susan Bellehumeur, a managing director and branch manager of R.W. Baird & Co.'s Waukesha branch has been recognized by On Wall Street magazine as one of 10 "Branch Managers of the Year." Bellehumeur is the only female branch manager and the only one from the Upper Midwest recognized as part of a new program created to honor excellence and achievement in branch management. Bellehumeur was honored at an awards dinner March 18 in New York City, and is recognized in the magazine's April issue. An online interview with Bellehumeur is also featured.

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.

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

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Wealth Management/Financial/Retirement Planning

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Molly Newman This exclusive news bulletin is compiled by BizTimes Milwaukee reporter Molly Newman. This bulletin is published every Tuesday morning. Send financial services industry news and tips to molly.newman@biztimes.com or call her at (414) 336-7144.