Minnesota certificate of deposit

Minnesota bank sitting pretty in booming 'burb

A brand new Minnesota bank picked a good location when it settled in Maple Grove, a fast growing community situated in the northwest corner of the Twin Cities metro area where three major highways come together.

Since 1990, the town has gained 20,000 people, making the population 57,000. The city projects that it will have 10,000 more citizens by 2010. The median household income is $108,000. When it opened its doors on December 12, Eagle Community Bank became the only bank chartered in the city.

The plan, however, wasn't always to open the bank in Maple Grove, which is 15 miles northwest of Minneapolis. President Lee Ashfeld said he researched the Twin Cities market and Maple Grove would consistently rise to the top of independent reports concerning growth and business viability. "The area is wonderful. I've watched the metropolitan area trends much like anyone else. The market here in Maple Grove is as good or probably better than any market I can think of around the metropolitan area," Ashfeld said.

For the first time in three decades in the banking industry, Ashfeld has an ownership stake in a bank. Eagle Community Bank began as an idea in January of 2002. An investor interested in banking but lacking experience in the industry approached Ashfeld, who was intrigued. The two gathered other investors and raised $3.5 million. Then the real work began.

"I've opened branches before, so I thought I'd be prepared for the work involved with getting a bank off the ground," said Ashfeld. "There's no comparison. In retrospect the branches were easy compared to starting a bank."

The application process through the Department of Commerce, the Federal Deposit Insurance Corporation and The Federal Reserve was slow and tedious, Ashfeld said. "When you go through it, there is so much punishment. You just have to wake up everyday and keep doing it and you get one step closer."

Like all new bank directors, each Eagle Community director had to fill out an interagency biographical and financial report. That report is accompanied by additional requests, such as tax returns.

"When you have people involved that are entrepreneurial and have several businesses, this becomes a huge undertaking,"Ashfeld said.

All the directors and senior officers had to have their fingerprints taken and comply with an FBI and Department of Justice background check. "The finger printing might be new," said Ashfeld. "I'm not sure about that, but I've been the director at other state banks and I've never had my finger prints taken."

Not that he is complaining. Ashfeld concludes that in spite of the mountain of paperwork and personal disclosures, the process of starting a bank is reasonable. "Banking shouldn't be an easy game to get into. It's a fickle process, but it has to be," Ashfeld said.

Besides 30 years of banking experience, Ashfeld is a graduate of the University of Minnesota and Northwestern University. He also has a certificate from the Graduate School of Banking at Rutgers University.

He has surrounded himself with a strong team to help manage the de novo bank. Michelle Schewe, a 20-year retail banking and marketing veteran, is serving as the bank's chief operating officer.

Executive Vice President Todd Anderson, a graduate of the University of Minnesota and the Graduate School of Banking in Madison, Wis., has been a banker for 20 years, 10 of which he's spent in Maple Grove. He has been directly involved with financing a wide variety of commercial projects in the area and will lead the bank's efforts to develop new commercial relationships.

Wendy Oleson is head teller and is responsible for customer service and new accounts. She has worked in customer service for 10 years.

"We've got a great team. The area is booming," said Ashfeld. "Starting a bank has been sort of a lifelong goal for me and I think we're in for a good run here."