Celebrating 60 Years of Community Banking!

Please join us as we celebrate our customers and 60 years of community banking! Stop in at our Weston office on Friday, July 13th from 11am to 2pm for FREE brats, chips and beverages! We’re also accepting donations (food, toys, etc.) for the Marathon County Humane Society. We hope you find the brief history of our bank enjoyable and interesting…see you on the 13th!   

The first Intercity State Bank building, on the old site of the Schofield City Hall.

How Was Intercity State Bank Started?

In 1951, the only banking facilities available to the people of Schofield, Rothschild, Weston and the south side of Wausau were either in the downtown Wausau business district or on its west side. A local group of citizens felt that there was a definite need for a bank to serve this fast-growing area. This group proceeded to solicit funds for the capital structure of a bank and, on November 29, 1951, a meeting was held in Schofield at the City Hall, and a new bank was launched with a capitalization of $100,000.00. Because this bank was to be located in Schofield between Rothschild, Weston, and Wausau, the name “Intercity State Bank” was chosen. A state banking charter was applied for under that name. At this meeting, Otto H. Jahns was elected Chairman, Hugh H. Karrmann, Secretary, and Arthur E. A. Mueller, Treasurer.

Ground was broken for the new bank building on April 7, 1952 on the site formerly occupied by the Schofield City Hall. The first meeting of the stockholders of this bank was held June 19, 1952 at the Schofield School. At this meeting, the following individuals were elected to serve as the first Board of Directors:  Clarence O. Egdahl, Dan M. Genrich, and Otto H. Jahns.  The Board of Directors elected the following officers: Otto H. Jahns, President and Cashier; Arthur E. A. Mueller, Vice President; Dan M. Genrich, Vice President; Hugh H. Karrmann; Arthur E. A. Mueller; Hjalmer A. Olson; Jeanne Damp, Assistant Cashier; Hugh H. Karrmann, Board of Secretary. 

The Bank was opened for business on July 14, 1952.

Cutting the ribbon of the first bank building was
Mrs. Otto H. Jahns, wife of the late founder.

On August 6, 1973, Intercity State Bank opened the doors of its new building located immediately north of the old building on Grand Avenue. Cutting the ribbon was Mrs. Otto H. Jahns, wife of the late founder, who believed the building constructed in 1952 would provide ample service to the modestly-growing community. Growth of the Schofield area has been so great, however, that President Ray C. Jahns, son of the founder, said, “In twenty years from now, we may have to do construction all over again.” The new bank had three times the space of the old.

In February 1985, Bosshard Banco, Ltd. (John Bosshard) acquired majority ownership of Intercity State Bank. We are part of a group of banks originally owned by John Bosshard and now run by his son, William Bosshard.

Our Weston location, since 1990.

 On November 6, 1990, our Weston Branch was opened at 2900 Schofield Avenue. The building had been purchased from Calvary Baptist church and the 4,480 square-foot facility was remodeled and converted to Intercity’s full service Weston Branch.

Randy L. Balk was named the new president of Intercity State Bank on June 2, 1991, by Chairman of the Board William Bosshard. Balk had prior experience in the Bosshard system and had most recently served as VP of the First National Bank & Trust Co. of Baraboo, WI.

 

Our Wausau location, opened in 2007.

In 2007, the bank expanded into the Wausau market with the construction of a new 6,500 square-foot office condo at the northwest corner of Stewart Avenue and 36th Avenue in Wausau. The building is co-owned by Intercity and Keller, Inc., a design/build general contractor. The bank owns 4,354 main level square feet of that condominium facility, with four-lane drive-up access and full service banking convenience.

We believe that a bank’s progress and success are directly related to the talents and dedication of its employees. We pride ourselves on the high quality of our people and look forward to offering excellent quality service and competitive community banking products for years to come.

2012 Annual Forrest Goetsch Run

As the local community came together for the Forrest Goetsch run on June 23, 2012, several Intercity State Bank employees waited behind the start line along with the other runners. Participants had the option to run/walk either 2 miles or 5 miles for the benefit. This year was the second time this event was held and both years have had a great turnout. This year, over 800 participants were registered!

 

 

 

 

 

 

 

 

Forrest Goetsch was a 14-year-old D.C. Everest student who loved to run as a cross-country athlete. His smile was contagious and he had a warm personality, which is why he was so well-liked. On September 21, 2009 Forrest collapsed and passed away during warm-ups at cross country practice. This charity run has been established in memory of Forrest Goetsch. Intercity State Bank felt honored that they could sponsor such a wonderful and meaningful event in the community. Some Intercity State Bank employees even placed well at the awards ceremony! It was a memorable race for all.

 

 

 

 

 

 

 

 

E-statements now available!

Although we know many of our customers like receiving paper statements, we also know a number of them like the ease of getting their statements electronically. We are now offering all of our customers the ability to manage their accounts with e-statements.

To sign-up for this service, simply do the following:

1. Login to your ISB account. Once you are logged in, you should see something like the image below:

 

 

 

 

 

 

 

 

2. Click on the box to the left of the account name for which you want to enroll for e-statements, so that it looks like this:

 

 

 

 

3. Beneath this area, check the box to agree to the terms and conditions, and then click on “Accept”:

 

 

 

 

4. If you get a message like the one below, make sure to enter confirm your e-mail address to the right of the Primary Account Owner Email area:

 

 

 

 

 

 

5. If successful, you should see the following message on the next screen:

 

 

 

If you have any trouble with this, please contact us during business hours with any questions (715-359-4231). We’d be happy to help you use this new service.

WBD & SBA Financing

Although most of Intercity State Bank’s Commercial loans are done with conventional financing, sometimes that conventional financing may be difficult to obtain.  In those situations, Intercity State Bank participates with other various loan programs that are available.

We have worked with Marathon County Development Corporation (McDevco) and Central Wisconsin Economic Development Fund (CWED) to help provide additional resources or down payment assistance for companies through their Revolving Loan Fund.  They offer a 2% fixed rate over a longer loan term.  Their area of focus is in job creation and typically lend up to $10,000 for each job created or retained and will not exceed the amount of the lead bank’s participation.

When a business is purchasing, constructing or expanding a facility or making a large equipment purchase, we have partnered with Wisconsin Business Development Corporation (WBD) and their SBA 504 Loan Program.  This program helps your business by having 30-40% of the costs financed on a long term fixed rate note, and helps the bank by allowing us to be in a first lien position at up to 50% of the costs.  Depending on what exactly is being financed, they require a 10-20% down payment.  However, some of that down payment may be covered through CWED.

SBA is now starting to implement a new program called the 8(a).  This program is designed to assist socially and economically disadvantaged individuals.  The program can assist your business by offering counseling and also by monitoring  your business plan. It also looks for opportunities to assist with obtaining some government contracts for your business.

Intercity State Bank still participates with the SBA 7(a) program.  This program gives a guaranty to the bank for 75% of the outstanding balance.  We have used this program when loans do not fit standard collateral guidelines.

All of these programs have both advantages and disadvantages depending on what and how much you are financing.  Different programs are designed for different business and I can help you decide which one would work the best for you.  Always feel free to contact me with any questions.

 

 

Community Events: Marathon County Humane Society’s Run For Their Lives 5K

The summer season is approaching again and Intercity State Bank is excited to get involved in some community events.

On June 2nd, Intercity State Bank participated as a sponsor in the 2nd annual 5K Marathon County Humane Society Walk/Run.  The competitive walk/run benefits the pets and programs of the Marathon County Humane Society. Some of our staff even participated in the run! Our booth was a big hit and the runners were excited to receive candy-filled athletic water bottles.

We believe, as a community bank, that involvement with a great cause like the Marathon County Humane Society is well worth our time and efforts. Stay tuned for our upcoming sponsorship events.

 

 

 

What is title insurance and why do I need it when I buy a home?

When you purchase a home, you are given a title to the property, giving you full legal ownership.  However, there could be possible hidden defects, risks, or flaws that may affect your title to the property.  Some of these include unsatisfied claims, clerical errors, forgeries,and tax or water/sewer assessments.   Title insurance is basically protection against a loss if a problem or defect is found in a property title.

There are two types of title insurance issued when you purchase a property.  If you are financing your home, you will be required to purchase a loan policy, which covers the outstanding balance on the mortgage for the lender, but doesn’t cover the owner.  The second type is an owner’s policy, which insures the owner of the property.  The premium you pay is only once, when the title is transferred from the property’s prior owner, and the policy remains in effect for as long at you retain ownership in the property.

If you have any questions regarding title insurance, please feel free to contact one of our lenders at Intercity State Bank.

 

 

First Time Homebuyer: What You Need to Know

With home values stabilizing and interest rates at or below record levels, now may be the time to purchase the new home of your dreams. As a first time homebuyer, you probably have many questions about the process of securing financing. The most common questions asked are as follows:

Home much money will I need to buy a home?

You will need enough money to cover these costs: Earnest Money; the deposit you make on the home when you submit the offer to purchase. The down payment; a percentage of the cost of the home that you must pay at closing. Closing costs; which are the costs associated with processing the paperwork, such as an appraisal, title insurance, credit report, recording fees. etc.  Also, a homeowner’s insurance policy must be provided prior to closing with a receipt for the first year paid in full. Homeowners insurance insures the property against loss from fires, smoke, theft, and other hazards.

How much of a down payment do I need?

We offer mortgage options with as little as 3% down. Mortgages with less than a 20% down payment will require a mortgage insurance policy (PMI)  to secure the loan.

What is Mortgage Insurance (PMI)?

Mortgage insurance is a contract insuring a mortgage lender against default. Mortgage insurance allows a borrower to purchase a home with a down payment as low as 3% and less then 20% down. Mortgage insurance insures the mortgage and it will reimburse the mortgage lender if default occurs.

Does credit matter?  

Yes, credit is one of the key factors in determining eligibility for financing. Credit is determined by the following factors; credit score, payment history, collections and public records, number of inquiries on a borrowers credit report, credit limits, etc. The most important factor is the borrower’s record of paying their debts.

Always feel free to contact one of our mortgage lenders: Michelle Knopf, Julie Jacobson, or Tracy Engman with any additional questions you may have on becoming a first time home buyer.   

 

 

What do children’s bank accounts and the Berenstein Bears have in common?

As a mortgage lender, I get to meet many great people.  Often, they are smart, savvy and educated, yet struggle with financial concepts like budgeting and money management.  We believe in empowering our customers to make wise financial decisions, and part of that empowerment involves educating kids so they can grow up to be confident about how to manage their money.

For the next couple of months, we are running a special incentive to help parents teach their kids about smart money management in a fun, creative way.  Just stop in one our locations and open a minor savings account, and they will receive a free piggy bank, along with the Berenstain Bears’ Trouble With Money!  It’s a wonderful story that opens up a fun dialogue about money.  We look forward to seeing you and your children soon!

What do I have to do to get a business or commercial loan?

I have heard many people say that banks are just not lending anymore.  Some say the rules are so constricting that very few people can actually get a loan. While the economy has created an atmosphere of cautious lending, we are in the business to lend money and we do our best to meet our customers needs without putting undue risk on our bank or on them. 

When assessing the risk of any loan, we use the 5 C’s of credit as a filter for determining credit risk.  The 5C’s are  Character, Capacity, Collateral, Capital and Conditions.

Character is your willingness to pay the proposed debt.  A large part of this is your credit history.  This will show how you have handled you finances in the past.  Even if you are looking at a business loan, we look at how you handle your personal finances.  How you handle your own money is a large indicator of how you will handle the finances of a business.

Capacity is your ability to support the debt.  For this, we are looking for documented sources of income or cash flow to make the proposed payments.  We analyze past tax returns to give us an indication of whether the necessary income is actually there and if the income can be sustained.

Collateral is the ability to pay the debt through liquidation, if the projected income stream does not occur as planned.  For many types of business loans, we are looking for additional personal property to be offered as collateral.  Depending on what is offered as collateral, we will attach different percentages of the debt to different types of collateral.  In all cases, we are looking to cover 100% of the debt with appropriate collateral.

Capital is your reserve supply of money and equity including your net worth.  When in business or starting a business, there are almost always unforeseen or unexpected expenses that come up over the course of time.  Having the ability to cover some or most of these is essential.  Adequate capital can also carry you through slower cycles of your business.

Conditions are the general business conditions that exist in your market place.  Is there room enough in the economy for your business?  Do you offer a special niche that is yet to be filled, or are you one of many companies doing the same thing?  Since the economy is not very strong right now, you will have to show more strength in the 4 other areas (character, capacity, collateral and capital) to overcome the weakness of the current market place.

Even in the midst of our current economic climate there are loan opportunities for those who are prepared and can show strength in these 5 important areas.  If you are planning a business expansion or a start-up rate yourself in these 5 areas before applying for your loan.  Or, if you’d like to talk through your eligibility with one of our friendly loan officers, we’d welcome the conversation.  Contact us through our website or give us a call at: 715.359.4231.

Rent vs. Own

When it comes to a house, should I buy or rent?  It all depends on your personal circumstances, but there are three important questions you may want to ask yourself before you make your decision:

Can I afford to buy a home?  When considering the costs, it’s important to remember that in addition to the monthly mortgage payments of principal and interest, there are taxes, homeowners insurance, and ongoing costs to maintain your property.    

How stable is your job?  It’s a good rule of thumb to plan on being in a home for at least five years to make it worth the down payment and closing costs.  Do you feel confident you will continue to be employed for at least 5 years?  With our current weak economy, it may be unsettling to face potentially being unemployed and having a mortgage.  If you choose to rent, you would have the flexibility of moving if needed.

What is your credit history?  Financial institutions and landlords both check your credit, so it’s a good idea to be aware of your credit standing as it will be a factor in determining if you qualify for a home loan or lease. 

After answering these questions you should come away with a clearer sense of whether to buy or rent.  Always feel free to contact one of our  friendly mortgage lenders: Michelle Knopf, Julie Jacobson and Tracy Engman.