Milton bank doing better than ever as it hits milestone
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The Bank of Milton. The bank is celebrating it's 125 anniversary.
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The interior of the Bank of Milton as it appeared in the early 1900s.
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The exterior of the Bank of Milton as it appeared in the early 1960s.
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Daniel M. Honold
MILTON — The Bank of Milton didn’t make headlines last year when the economy collapsed.
It didn’t make huge profits during the housing bubble, and it didn’t suffer huge losses when the bubble burst.
In fact, the bank at 323 Parkview Drive is doing better than ever as it celebrates its 125th anniversary this month, President Dan Honold said. Assets have grown 13 percent this year and deposits have grown 15 percent, he said.
“We are financially stronger than we’ve ever been, and we didn’t have to take any money from the government,” Honold said.
Honold believes more customers are turning to locally owned banks after the economic meltdown last fall. Smaller banks didn’t make as many risky investments as their corporate cousins, so they were seen as more reliable during the recession, he said.
“(Customers) have learned that you have to know and trust your financial institution,” Honold said.
Milton residents always have shown loyalty to locally owned banks. The city has three independent banks and no corporate ones, a rarity these days, said Kurt Bauer, president and CEO of the Wisconsin Bankers Association.
“I think that speaks volumes of the loyalty of Milton residents to be able to support three community banks,” he said.
Bank of Milton customers said they appreciate the small-town feel of the bank.
“Even if I’m not in for a couple of weeks, they still know my name and say, ‘Hi,’” said Laura Miller. “It’s definitely a lot more service than you’d get in a Janesville bank.”
Employees get to know the customers and their families, Honold said. Often, the bank serves several generations of the same families.
That helps when it comes to loaning money, he said. For example, many banks won’t give a home loan to someone who just changed jobs, he said. But if the Bank of Milton knows the customer is trustworthy, it might overlook that.
“A lot of times with your bigger banks … either you fit in the box or you don’t,” he said. “They can’t bend the rules.”
The bank also gives back to Milton by reinvesting money in the community and participating in community events, he said.
“It’s kind of like a revolving circle,” he said.
A RARE ANNIVERSARY
Less than 2 percent of U.S. businesses make it to their 100th anniversary, said Kurt Bauer, president and CEO of the Wisconsin Bankers Association.
The number is higher for banks—about one-third of Wisconsin banks have been around at least a century—but making it to 125 years still is an impressive milestone, he said.
“You’re looking at a bank that has witnessed the best and worst in American history, whether it’s political or economic,” he said. “That’s an impressive feat.”
The Bank of Milton started with 19 men and $27,000 in 1884, according to a special publication created for the bank’s 100th anniversary. Today, it has about $68 million in assets, President Dan Honold said.
It has survived the Great Depression, two world wars and many changes in Rock County. It moved to a new building next to the old one in 1972 and opened an Edgerton branch in 1998.
And it’s not going away any time soon, Honold said.
“I see us lasting for another 25, 50, 100 years,” he said.
Dec 16, 2009 at 3:14 p.m.
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I know a lot of people who bank at this branch, but I receive the same hospitality and customer service as described, if not better, at M&I Bank. I started banking with them 15 years ago and have been treated like family since the first day I opened a savings account with them.
I have gone into the Bank of Milton to drop off my CenturyLink bill and I've been greeted with hospitality less than half of the time. Because of this, I decided to start mailing my bill.
But everyone has their own preferences, can choose where to do business and with whom. However, I do offer my sincerest congratulations to the Bank of Milton for their longevity.
Dec 16, 2009 at 2 p.m.
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See, bigger isn't always better. You certainly have made a good point - donnaw.
Dec 16, 2009 at 12:05 p.m.
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No problem. Glad to help.
Dec 16, 2009 at 11:40 a.m.
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localreader29: Thank you very much for clearing that up, it always seemed a little odd to me since I have always heard good things about the Bank of Milton. I never even realized that it was a separate companies sign, my apologies to the Bank of Milton for confusing the signs.
Dec 16, 2009 at 11:22 a.m.
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mespl,
I know the sign you are referencing. I asked a bank employee about that sign, as it was under the investment company’s sign in front of the bank, opposite the Bank of Milton sign. It was explained that the FDIC required the bank to show that wording under the investment company’s sign in order to make sure customers realized that the bank and the investment company were separate entities. All deposits with the Bank of Milton are FDIC insured. Investments made with the investment company that has an office in the back of the building are not. There are signs throughout the bank stating that deposits are covered by FDIC insurance.
Dec 16, 2009 at 9:38 a.m.
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I am a Milton resident and my wife and I looked into switching to the Bank of Milton and we made it all the way to the front door and changed our minds. We changed our minds when we read the sign out front that stated very clearly that the Bank of Milton is not FDIC insured. It is good to hear that they have been around for a long time though and it seems that they know what they are doing. It would be nice if the larger banks could learn from some of the practices of the smaller ones.
Dec 16, 2009 at 4:54 a.m.
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This is really an outstanding story! As it just goes to show that good SOUND banking is a GOOD thing, and that that there are MANY good bankers out there who know what they are doing, and don't engage in recklessness. With good banking, BOTH parties can be made happy. A modest profit can be consistently turned by the banker, and the client can receive the desired capitol to expand upon their business, or build a home of their dream. While a good working relationship can often be made between the parties for future business, and or friendship to boot..
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The reason community banks like this work, is because they stick to time tested financial principals that have worked for centuries, and they never deviate from those time tested principals. If only the GIANT banks(now known as "to big to fail" ) operated in the same manner! The obvious problem we have now is that these giants (Citi, Wells Fargo, Bank Of America, Jp Morgan, ext) is that the Government just keeps empowering them more and more. So much, that they are now designated as the new classic term of the 21st century "TO BIG TO FAIL". So they are now guaranteed to NEVER go under, and can basically do what ever reckless leveraging scheme they want. Of course; the governments answer to that is to "stop" the recklessness by regulating them, but we all know what happens then. The governmnet and regulatory agencies just become part of the whole power structure with the banks. Just one giant country club, or Oligarchy, if you will.
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Keep in mind that the great regulators of the stock market (the SEC) audited Bernie Madoff 8 times over the years! No doubt they had some great dinners, and entertainment, together all those times!
Dec 15, 2009 at 5:14 p.m.
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Gee, you mean there are banks that made good business decisions and didn't need to take any gov't money? Smaller is better. They should have let those big banks (who fell under the control of Barney Frank and Chris Dodd's pressure to make those bad loans) fail--we would have been better off without them.
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