BUSINESS

Bank Mutual set to switch to Associated Bank this weekend

Milwaukee Journal Sentinel

A temporary Bank Mutual sign covers a newly installed green Associated Bank sign at a Bank Mutual branch in Brookfield. The conversion of Bank Mutual to Associated is set for this weekend.

With signage at Bank Mutual branches set to change and the bank’s computer system prepped for conversion to Associated Bank’s this weekend, the name “Bank Mutual” is about to join Firstar, M&I and AnchorBank on the growing list of prominent brands that have disappeared from the Wisconsin banking landscape.

The remaining elements of Brown Deer-based Bank Mutual are scheduled to begin merging into Green Bay’s Associated on Friday after Bank Mutual branches close at 3 p.m.

If all goes as planned, by Monday morning, Bank Mutual — once the state’s third-biggest bank — will have faded into banking history by folding into Wisconsin’s largest financial institution.

The $482 million purchase of Bank Mutual by Associated was the top bank deal announced in the state last year, and the acquisition, which ends Bank Mutual’s 126-year run, is part of an ongoing consolidation of the banking industry.

Big bank conversions during mergers can be tricky, and competing banks and credit unions sometimes use the potential disruption to lure account holders their way. But Associated spokeswoman Jennifer Kaminski said the two banks have been working for almost a year to make sure the transition goes as smoothly as possible.

“Since announcing the merger agreement last summer, approximately 250 colleagues from both organizations have been planning for the integration of our two companies,” she said.

So far, so good, she said.

“We regularly conduct customer satisfaction surveys and are pleased to report that customer satisfaction with the branch experience is running at more than 85 percent of Bank Mutual customers providing a rating of 5 on a scale of 1 to 5,” she said.

Associated’s acquisition of Bank Mutual brings together almost 4,500 Associated employees and about 450 workers from Bank Mutual. At the time the deal was announced, Associated had 226 branches, and Bank Mutual had 58. Associated has said it plans to close 29 Bank Mutual branches and seven Associated branches, generating savings that help the deal financially without causing too much additional traveling for customers.

“Approximately 50 percent of Bank Mutual branches are within one mile of an Associated branch. As a result, customers will continue to have branches conveniently located at or near where they currently do their banking,” Kaminski said.

She said ATMs at branch locations that are set to close will become inaccessible at 10 a.m. Friday and will have signs directing customers to the nearest available ATM.

Customers should continue to use their Bank Mutual debit cards through Friday and may begin using their new Associated Bank debit cards on Saturday, she said. New Associated Bank credit cards will be issued shortly after conversion to replace Bank Mutual credit cards. All credit lines, transaction data, statements and applicable rewards points will move to Associated Bank with customers’ accounts.

Although any payments or transfers Bank Mutual customers previously scheduled will occur as planned, Bank Mutual online and mobile banking will be unavailable.

Kaminski said Associated customer care centers are prepared for an increase in call volume during the transition.

“We have additional staff trained and ready to welcome our Bank Mutual customers and assist them with their inquiries,” she said. “Earlier this year, we also opened a third call center in Wisconsin. This facility will help with call volume as we convert Bank Mutual customers and continue to grow the bank.”

She said “as with any large event, there is potential that customers may experience longer wait times" as the transition unfolds.

“We appreciate customer’s patience as we want to give every customer who calls us the time they need to resolve their inquiry,” Kaminski said.

In some conversions, such as M&I Bank’s transition to BMO Harris Bank in 2012, irate customers vented their frustrations on BMO Harris’ Facebook page.

“Customers who reach out on social media will work with our customer care representatives who will guide them through the conversion and assist with their banking needs,” Kaminski said. “Customers are reminded to not post any personally identifiable information, including account numbers, on social media.”

She said customer service representatives will be available at (800) 236-8866 to guide people through the conversion. Customers can also visit https://www.associatedbank.com/bkmu for additional resources.

While the system conversion takes place inside, the signage will change outside at the Bank Mutual branches that are being rebranded as Associated branches. The new green Associated signs already are installed and have been covered by temporary flexible red, white and blue Bank Mutual signs until the unveiling this weekend.

The end of Bank Mutual this weekend adds another name to dozens of Wisconsin bank brands that have exited through acquisitions over the past two decades. Along with Firstar, M&I and AnchorBank, other brands that no longer exist because of mergers include: Baylake, Continental, Delafield State, First Federal Capital, First Northern Savings, Ledger, Liberty, Ridgestone, Southport, St. Francis and State Financial.

ARCHIVE:Independence ending for M&I Bank

The Associated-Bank Mutual acquisition, which closed financially in February, is part of a long-running consolidation trend in banking. Although there were only seven bank mergers set in motion in 2017 (not counting the failure of Guaranty Bank), there already are six deals under way in 2018, said Tom Homberg, a banking attorney with Milwaukee’s Godfrey & Kahn.

“There is most definitely an increase in activity in Wisconsin,” Homberg said. “The transactions that have been announced to date are relatively small — nothing to the size of the Associated-Bank Mutual type of transaction.”

In 2015, there were 10 mergers announced involving Wisconsin banks, and in 2016, there were 18. Most mergers are among smaller community state banks, although in recent years some banks have come in from other states to buy Wisconsin banks, and even some larger credit unions have purchased the assets of banks.

Homberg said 2017 "was historically a very light year for bank M&A, regionally, in Wisconsin, and nationally as well."

But when federal corporate taxes were cut late last year and some bank rules were eased, that expense relief — combined with a good economy and solid bank profits and capital — made bankers perk up and consider growth through acquisition, Homberg said.

It’s possible larger regional banks from outside of Wisconsin might make some moves to enter the state or become more widespread here.

Last month, Wells Fargo Bank said it is selling 52 Midwest branches to Troy, Mich.-based Flagstar Bank, including four in northeastern Wisconsin. While Flagstar has some mortgage lending offices in Wisconsin, the purchase would give Flagstar its first branch presence in the state.