FINANCIAL PROFILES
FINANCIAL PROFILES CONTENT
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FINANCIAL PROFILES ROYAL CREDIT UNION
E D U CATI ON IS PR ICELESS R o y al C r e d i t U n i o n p r o v ide s fr e e fin an cial e ducat ion out r e ach throughout region
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athy Buyze and Melissa Janssen are gearing up for another year of community education. It’s not the kind relegated to stuffy board rooms and lecture halls, but the kind that takes place in buzzing classrooms full of fourth- and fifth-graders, in branch locations where high school students develop employment skills during internships, online in fun videos, in jails where vulnerable individuals learn valuable personal finance habits, and in the Royal Credit Union headquarters itself. Kathy and Melissa’s mission at Royal is to uplift the Chippewa Valley by providing financial education at every stage of life. To that end they oversaw more than 750 presentations for area young people, and countless more for community members of all ages.
SCHO O L O U T R EAC H In October 2018, fourth- and fifth-graders at Chippewa Valley elementary schools flocked to apply for a slot in the School $ense program. The application process consists of a paper form followed by an interview. Not every student is selected, but every student receives feedback on their application and interview skills. The ones who are hired go on to staff a real Royal branch in the school. It’s open once a week so that students can make deposits or withdraw money from their own Royal accounts. “It doesn’t matter how much or how small – they can deposit a penny each week,” Kathy said. The kids are rewarded for saving with prizes ranging from bouncy balls to T-shirts. Program participants work with Royal staff to facilitate the transactions and market the branch within the school with posters, announcements, and more. Royal donates $250 to participating schools for every 500 deposits made at the school site branch, further incentivizing good saving habits. Some schools receive as much as $1,000 over the course of the academic year.
responsibilities as they get older. And, just a few years later in high school, Royal offers paid internships that allow teenagers to gain valuable work experience both at school sites and at local credit union branches in the Chippewa Valley. Every step of the way through the school site programs, Royal mentors provide students with classes in financial literacy from bill and coin recognition to savings and up through identity protection. These programs are tailored to the needs of each school, and involve activities inside the classroom as well as training exercises in the grand, high-ceilinged halls of the Royal headquarters in downtown Eau Claire.
IT’S OK TO TALK ABOUT MONEY.
The fun doesn’t stop in elementary school! Royal offers student-run school site banking to area middle schools as well, expanding their
ROYAL CREDIT UNION LOCATIONS THROUGHOUT CHIPPE WA VALLE Y (800) 341-9911 SCHOOL.SENSE@RCU.ORG W W W.RCU.ORG
“The cumulative is that we’ve educated them throughout their school years, and hopefully we’ve given them a strong base on being financially sound,” she continued. “Not only is it great to give back to the school and the community, but we’re giving the workers that real-life work experience, and working with the rest of the students to help them get into the habit of saving that money and paying themselves first.” Other Royal Programs for youth include Future U.S. Entrepreneurs (F.U.S.E.), a six-week program for middle-schoolers that culminates in a “Shark Tank”-like pitch presentation; Financial Education Takeover Day, where the Superheroes of Savings take over area classrooms; and Test Drive … Next Stop Reality, in which high school students are challenged to manage an imaginary budget based on their career path and randomly selected circumstances. CONTENT
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S UPPORTI NG TH E COMMUNI TY T H R OUGH TH I CK AND TH I N In addition to youth education and general community outreach, Royal also invests in financial education programs for inmates at the Eau Claire, Barron, and Dunn county jails. People who have served time in the correctional system are often at a greater risk of experiencing financial hardship or identity theft, Melissa, who oversees the program, explained. Royal’s jail outreach program helps them fight back. “We work with incarcerated individuals and we teach them about basic budgeting, money management, and then credit reports, credit scores, how to avoid predatory lenders,” Melissa said. “Basically, kind of anything and everything that you would need.” She is often stopped on the street by people she taught through the jail program, who thank her for the knowledge she shares. “I think a lot of people have this fear of going in and talking about money, but if you’re not talking about it you’re not learning about it, and when you don’t learn how to manage your money that’s when you make mistakes,” Melissa said. Every program she organizes is meant to teach people that it’s OK to talk about money, opening an educational dialogue that will improve the lives of generations. Royal is expanding educational offerings every day. For more information on financial education opportunities, visit www.rcu.org/youthcommunity. If you are interested in hosting a community education program a business, class, or group, email school.sense@rcu.org. “The best part about my job is that I get to provide free financial education to anyone and everyone,” Melissa said.
FINANCIAL PROFILES LOCAL PEOPLE, LOCAL DECISIONS
C H ART ER BA N K O ve r 4 0 y ear s , C h ar t e r h as g o n e f r o m s t ar t - up b an k t o mar k e t le ade r
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rom its humble beginning in a temporary trailer on Clairemont Avenue nearly 40 years ago, Charter Bank has flourished to become the largest home-grown bank in the Chippewa Valley, with assets nearing the $1 billion mark. Yet, even as it has grown, Charter has focused on fostering its community roots. “When you call here, you’re getting people – local people,” says Paul Kohler, Charter’s president and CEO. “That’s our big differentiator. Because everything is done here in Eau Claire, we can turn around things really quickly.” Charter’s bankers know the Chippewa Valley and their clients so well that lending decisions that might take weeks at institutions based outside the area may take just a few days at Charter. “We have an extremely seasoned team, and it’s a very deep bench of lenders here,” added Kohler, who has been with Charter for 23 years, the past eight as CEO. When bankers know the community well enough, they can see customers as more than just names on a loan application. “You can give this person the benefit of the doubt,” he said. “We’re not just scoring people.” Charter Bank primarily serves business clients, who may range from single-person startups to community mainstays with hundreds of employees. “You get exposed to so many different types of businesses,” Kohler said. “You never get bored. One day I’m working with a veterinarian, the next day I’m working with a manufacturer. The next one might be a jewelry store owner.”
S ERV I N G BU S I N E S S ES , L A R GE A N D S MA L L It was exactly these kind of small businesses that Troy Johnson wanted to help build when he opened Charter Bank in 1980. At that time,
CHARTER BANK 1010 W. CL AIREMONT AVE., E AU CL AIRE (800) 471-4510 INFO@CHARTERBANK.COM W W W.CHARTERBANK.BANK
range of personal banking services. Customers have come to expect checking and money market accounts, mortgage and personal loans, and credit cards – as well as other benefits, including Charter’s annual customer appreciation party in December. In the near future, Charter Bank plans to introduce an array of private banking services, said Carla Leuck, the bank’s assistant vice president-marketing officer. Such “concierge banking,” aimed at high net worth individuals, is uncommon among community banks, and will include services such as unsecured loans and credit cards with unique features.
COMMUNI TY FOCUSE D
the bank only had a handful of employees who worked out of a trailer on the site where Charter Bank is now headquartered. The current headquarters was completed in 2006. Now, as it approaches its 40th anniversary, Charter Bank has 100 employees across three locations, which include its headquarters in Eau Claire and two Minnesota branches, in Chaska and Chanhassen. Charter ranks about 20th in size among the roughly 200 banks headquartered in Wisconsin, Kohler said, and last year Independent Banker magazine named it one of the 25 best-performing community banks with less than $1 billion in assets in the United States. In addition to business banking – including commercial real estate and equipment loans, depository accounts, lines of credit, and merchant services – Charter Bank provides a full
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Charter’s focus on the community goes far beyond helping individuals and businesses with their financial needs. It also involves a strong commitment to providing funding and volunteer resources for a variety of community and charitable groups. Kohler noted that Charter was one of the first financial institutions to step in to donate toward the Confluence Project: The bank’s $250,000 matching grant helped build momentum in the fundraising effort to create what is now known as the Pablo Center at the Confluence, which opened last fall. In March, Charter donated $125,000 to Feed My People Food Bank to help with its expansion effort. And just last month, Charter pledged $400,000 to HSHS Sacred Heart and St. Joseph’s hospitals for a mobile mammography unit, which will help women in rural areas around the region receive potentially life-saving screenings. For Kohler, it comes back to creating strong community partnerships. “Every great community needs great small businesses, and those small businesses need a great community bank,” he said.
FINANCIAL PROFILES ASK AN EXPERT
RI VER P R A I R I E W E A LT H PA RT NER S R i v e r P r ai r i e We a l t h P ar t n e r s’ Ch ie f In ve st m e n t Office r offe r s ins ight into inves ting
THE ROLE OF A FAMILY CFO River Prairie Wealth Partners acts as the family CFO, and in doing so we...
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hoosing the correct strategy for growing wealth can be a daunting task. Thankfully, no one has to do it alone.
Steve Latham is the chief investment officer at River Prairie Wealth Partners, a private wealth advising practice of Ameriprise Financial, in Altoona. He has spent more than a dozen years in the financial industry entirely focused on helping financial advisors manage client portfolios – or doing so himself. Steve holds a bachelor’s degree in finance, a master’s degree in investment management and financial analysis, and a Chartered Financial Analyst (CFA) designation, which requires an additional three-year education program and is considered the gold standard in the field. A local expert in investing and advising, Steve offers some insight on wealth management. Q: How do you measure success within your portfolios? A: Success cannot be defined by any single measure. By understanding what the client is looking to achieve with their wealth, we can better understand what risks we can take with their investments to make their goals a reality. If our clients are able to retire on their timeframe, live comfortably throughout retirement, and/or or pass on their wealth in a tax-efficient way, then I would consider the portfolios we’ve developed to be successful. Q: What are some challenges investors are currently facing? A: Broadly speaking, investors are still struggling to find reliable, low-risk income streams in this market, especially now that yields may start to fall again as the Federal Reserve resumes a more accommodative monetary policy. After an incredible 11-year bull market run, some investors may have become complacent in their approach to investing and have perhaps found themselves taking on too much risk for their current stage in life.
2423 RIVERS EDGE DR, ALTOONA ( 7 15) 832-7 7 15 S T E V E N . L A T H A M @ A M P F. C O M H T T P S : // B I T . L Y / 3 2 V L 7 J B able client portfolios. Q: What are the benefits of aligning with a team who has a Chartered Financial Analyst? A: Financial advisory teams who made the investment of having a Chartered Financial Analyst on staff will have a resource dedicated to observing and interpreting the markets specifically for their team’s and client’s objectives. Clients will know their investment portfolios are constructed and customized in a robust, ethical, and educated manner. Having this resource allows advisors to focus more holistically on their client’s goals.
SUCCESS CANNOT BE DEFINED BY ANY SINGLE MEASURE.
Q: What is a CIO?
A: The Chief Investment Officer role traditionally involves setting long and short-term investment strategy, developing an investment policy as a set of “guidelines” for the team to follow, maintaining relations with fund managers and external analysts, and implementing the construction and ongoing management of invest-
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Q: What is your investment philosophy?
A: Our client base is comprised of working professionals with higher net worth potential and those who are at or near retirement. Those we work with are seeking to protect and grow what they’ve accumulated, and when we’re developing investment strategies, we’re using tools designed to protect on the downside without sacrificing upside potential. For retirees, we put an emphasis on strategies that allow for adequate income with the intent of avoiding the need to sell principal.
FINANCIAL PROFILES ASK AN EXPERT
W ESTCON SIN CR EDIT UNION B u y i n g a n ew ( or n e w - t o- you) ve h icle is e asy if you ke ep thes e things in mind
Q: What factors should someone consider to ensure an auto loan will be a good investment, in choosing a vehicle and in maintaining it? A: When purchasing a vehicle one should consider age and miles along with, if it has any manufacture warranty remaining. This is important because repairs on vehicles are quite spendy. Knowing that it has a warranty is a good way to protect your new investment. The older and more miles of the vehicle the more likely something could go wrong, leaving you with a hefty repair bill.
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he thing that I love about my job is I have the opportunity to help members with their dreams,” Hofacker, a financial services specialist at WESTconsin Credit Union, said. Hofacker helps people all over the Chippewa Valley community access loans and build credit every day. “Some have dreams of a new camper or auto loan or even just rebuilding credit and getting back on track. Everyone has something they are working towards. I’m glad I get to see the excitement on their faces and in their reaction when I get to give them the good news of a loan approval.” Hofacker often works to get locals on the road by helping them secure auto loans; he offered up some professional perspective and advice on the car-buying process.
Q: How can someone properly budget/plan to repay an auto loan?
DON’T BE AFRAID TO NEGOTIATE ON PRICE.
Do your research on the makes and models that you’re interested in buying to see what some of the more common issues are with that particular vehicle. You may also want to consider the type of gas mileage the vehicle is rated to get as worse gas mileage means more fuel costs. You want to factor in how much this vehicle will cost you in fuel with the type of mileage you anticipate to put on it. Q: What are some of the most common barriers to loan approval, and how does one overcome them? One common barrier that I see when working with members is loan to value – meaning that the value of the car is less than the amount people are looking to finance once tax, title, licenses, and other fees are assessed. Some may refer to this as negative equity. Ways to overcome this include offering a down payment, having a trade in with equity, or contacting a loan specialist to take a look at values of certain vehicles to determine if you should proceed with that particular vehicle. Research online using consumer tools such as Kelly Blue Book or NADA to find values. Don’t be afraid to negotiate on price with dealers and private party purchases.
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WESTconsin does offer financing for private party loans as well as dealer purchases whether it’s a car/truck, ATV, camper or boat.
A: The best way to budget/ plan for an auto loan is to sit down and figure out a budget that you feel you can afford. I recommend, especially for first time car buyers, to take that amount for the next 3-6 months and put it into a savings account – and Don’t Touch It. That shows you can make that payment by creating a history for your lender to see. Also, you’ve now saved up for a down payment that you can put towards your new car.
Q: What sets WESTconsin lending services apart? A: We try to help everyone that we can in any financial situation. Some financials have a minimum dollar requirement for a loan or only do auto loans and no personal loans. With WESTconsin I’ve seen us do personal loans for $200 to help get someone get by until their next paycheck. We have a lot of members with unique financial situations and we want them to know we are here to help them with whatever life throws at them.
WESTCONSIN CREDIT UNION LOCATIONS THROUGHOUT CHIPPE WA VALLE Y (800) 924-0022 JHOFACKER@WESTCONSINCU.ORG WESTCONSINCU.ORG
FINANCIAL PROFILES
HERE, THERE, AND EVERYWHERE
N ORT H W E ST ER N BA N K ‘ C ra f t b an ki n g ’ a p p r o ach cat e r s t o sm all b usin e sse s acr oss t h e V a lley
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f you’re looking for Northwestern Bank President Jerry Jacobson, you’re just as likely to find him in his office as you are to catch him at a nonprofit board meeting, handing out a giant check, or volunteering his time for a local charity. And while Northwestern Bank has been known as a pillar of the community in Chippewa Falls for more than a century, you’re just as likely to see Jacobson or his colleagues at work in Eau Claire, Altoona, or other parts of the Valley. In fact, Jacobson spent several years as chairman of Eau Claire Confluence Arts Inc., the nonprofit organization that built and owns the Pablo Center at the Confluence in Eau Claire. Jacobson said his work helping bring the arts center to fruition was almost a full-time job. So why put in those hours on a project that’s not in Chippewa Falls? For one thing, Jacobson said, Northwestern considers itself not just a Chippewa Falls bank, but a Chippewa Valley bank. Moreover, “It’s extremely gratifying to see these organizations grow and help our community, these nonprofits,” said Jacobson, who has spent 41 years at Northwestern Bank, the past 21 as president. “That is for me almost as much gratifying as seeing the businesses grow.” NORTHWESTERN BANK OFFICES IN CHIPPEWA FALLS, ALTOONA, L AFAYE T TE, BOYD, CORNELL , AND THORP ( 7 15) 723-4 461 (CHIPPEWA FALLS) (715) 839-8642 (ALTOONA) W W W.NORTHWES TERNBANK.COM
IT’S EXTREMELY GRATIFYING TO SEE THESE ORGANIZATIONS GROW. Northwestern Bank has been helping communities and businesses flourish since 1904, when it opened at the corner of Bridge and Central streets in downtown Chippewa Falls. Today, Northwestern also has branches in Boyd, Cornell, Thorp, the Town of Lafayette, and Altoona, where it opened in the River Prairie development in late 2016. Northwestern Bank focuses primarily on serving small and growing businesses. It’s a market segment often overlooked by bigger banks, explained Jerry Kuehl, the bank’s senior vice president for sales and marketing. “We’re one of the few places right now that you can come to and start a businesses,” he continued. “The larger banks want you to be established before you build. But if you have a new concept or you’re retired and you want to try something different – or you’ve been in business a number of years and want to split off into something else – there are very few folks who will have that conversation with you.” Kuehl describes Northwestern Bank’s way of doing business as “craft banking.” Consider a
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craft beer or other artisanal product: Unlike a mass-produced, nationally marketed brand, craft products aren’t made by – or for – everyone. The same goes for craft banking: “You can’t just take a formula … where you type in three bits of information and they pull a credit report and boom, you’re done,” Kuehl said. “Business lending takes a different sort of review process, which is more labor-intensive. And so we’ve developed a staff that can do that.” Kuehl began his career at a large bank in Milwaukee, where loans were made based solely on cash flows and collateral ratios. When he joined Northwestern Bank in 1993, he was initially surprised when loan committees made decisions based on personal relationships and knowledge of clients. “What I started to realize is they knew exactly what they were doing,” he said. “They went back to the roots of banking, so they knew this character piece. The numbers and things are just a way to place values on what people do in their real, day-to-day business life.” Today, Northwestern serves business clients in a range of sectors, from medical providers to retailers, manufacturers, builders, and beyond. “I think we need to be making sure that people with ideas have an avenue to be able to get money to try and see if their ideas can work,” said Jacobson – who, like his bank, was born and raised in Chippewa Falls. “All of these companies in the Chippewa Valley were small companies at one time. Some of them started with just an idea.” As he travels to and from his business and volunteer commitments throughout the Valley, Jacobson sees what these ideas have grown into. “It’s very gratifying to see that you’re a part of making someone’s life a little better,” he said. “It’s not just the business owner, it’s all those workers who have a better life.”