14
Wisconsin Community Banker
September/October 2014
‘community banks.’”
The bank’s tagline, “The Natural
Choice,” referenced the choice to con-
struct the green branches in Oshkosh
and Fond du Lac. Incorporating geo-
thermal technology for heating and
cooling, the two branches take advan-
tage of the earth’s stable temperatures
through a heat transfer process utiliz-
ing underground wells.
The Fond du Lac branch also fea-
tures the Blue Goose Coffee House,
which serves Milwaukee-headquar-
tered Alterra (now Collectivo) cof-
fee, baked goods, and other specialty
drinks in a customer-friendly envi-
ronment. Situated near three college
campuses (Marian University, Uni-
versity of Wisconsin-Fond du Lac,
and Mid-State Technical College), the
branch offers free WiFi and a large
screen television, making it a destina-
tion spot.
Doing good does not distract
Schwertferger’s attention from the
bottom line. In 2013, Horicon saw a
return on assets of 1.61 percent while
return on equity was 13.8 percent.
In 2011, Horicon Bank received
Treasury capital through the Small
Business Lending Fund (SBLF) and
since that time, has increased its SBLF
portfolio by nearly 34 percent. Cur-
rently SBLF loans make up more than
50 percent of the bank’s loan portfo-
lio. The bank has invested over $35
million in loans to small businesses,
churches, and farms. Under Schwert-
ferger’s leadership, the bank has seen
the most profitable years in its 118-
year history.
When asked why he chose a career
in banking, Schwertfeger answered
simply, “Growing up, I was aware of
the importance of the then-named
Horicon State Bank to the local
economy, which gave me a sense
that I would like to pursue banking
as a career,” he said. Horicon Bank’s
employees and the local communities
are glad he did.
With assets of $550 million, the
bank has 14 locations in Appleton,
Beaver Dam, Fond du Lac, Green
Lake, Horicon, Iron Ridge, Mayville,
Neosho, Oshkosh, Ripon, and West
Bend.
Community Banks: Oil in the
Economic Engine
ICBA chairman-elect, Jack Hartings (center) presented a check for $109,264.70 in ICBA royalties to
CBW. Also pictured, from left: Fred Kelly, ICBA Securities; Stan Leedle, CBW outgoing chairman; David
Holsted, ICBA Securities; and Daryll Lund, CBW president and CEO.
“Passion” is the thread that binds
community bankers together, said Jack
Hartings, president and CEO, Peoples
Bank of Coldwater, Ohio, and chair-
man elect of ICBA. Hartings made
his remarks at the 33rd annual CBW
Management Conference & Expo held
at the Wilderness Resort, Wisconsin
Dells, in September.
Growing up as one of eight chil-
dren, Hartings was the first to gradu-
ate from college. At age 36, he was
appointed CEO of Peoples Bank,
a $415 million bank with seven
branches. From his parents he learned
three core principles: discipline,
opportunity, and community.
Discipline meant whatever you
needed or wanted, you had to save for.
Hartings’ parents defined opportunity
as surrounding oneself with the right
people and keeping your nose to the
grindstone. Community was viewed as
giving back for the betterment of the
whole.
Community bankers have the same
three core principles as Hartings’
parents. Customers discover how “dis-
ciplined” they are when they realize
that their credit is a result of lifestyle
choices.
Community bankers love to give
people the “opportunity” to buy their
first house. And community bankers
are all about “community.” “Our suc-
cess is dependent upon how well our
community does.”
Hartings listed ICBA’s three top pri-
orities for his term: one voice for the
industry, fighting unfair subsidies, and
regulatory relief. By encouraging all
community bankers to speak as one
voice for the industry, ICBA has cap-
tured the attention of Congress and
the regulators about the differences
between community banks and the
too-big-to-fail behemoths. But ICBA
can’t do it alone.
Hartings told the bankers, “You
have done such a great job in defining
your industry.” But it’s not time to rest
on our laurels. “We need to stay at the
table or else we’ll be on the menu.”
Unfair subsidies for the too-big-to-
fail, too-big-to-jail banks were revis-
ited when the Brown-Vitter legislation
found that the largest six banks had
less than five percent capital, falling
some $60-plus billion short of what
they were required to have.
The unfair tax subsidy that credit
unions are still able to utilize and
their interest in getting into business
lending have been well reported. “I
think Congress is starting to get it and
credit unions are more sensitive to the
charges.”
ICBA’s Plan for Prosperity has
resulted in 28 bills being considered
in the House and Senate. The CLEAR
Act garnered support from 170 House
members and 38 Senators.
