Bank to close Footville branch
JANESVILLE — For the first time in 100 years, Footville will be without a bank.
The Janesville-based Mid America bank recently informed its Footville customers that its Footville branch will close Feb. 20.
Mid America President Brad Palubicki said the decision to close was a business decision: The revenue did not support the cost of maintaining the Footville branch.
“I feel bad from a customer standpoint because we do have a lot of customers out there, but it’s the right thing to do for the bank,” Palubicki said.
Palubicki said the Footville bank was good for deposits but offered few opportunities for generating loans.
“If we’re going to invest in a branch location, I’d rather invest in a market that produces better revenues,” Palubicki said.
Footville is a village of about 760 residents located about 10 miles west of Janesville.
Mid America told customers they may continue banking at the main branch in Janesville and/or bank online. The Mid America ATM will remain in Footville, dispensing cash and accepting deposits, according to the letter to customers.
Village Clerk Chris Carlson said she’s heard expressions of anger and frustration from people who grew up with the bank.
“Now their choice is to drive over to Milton Avenue (in Janesville) to stay with Mid America or to find another bank,” Carlson said.
Older people especially like to be able to go to a bank and talk to someone rather than managing their accounts online, Carlson said.
Palubicki said he’s worried customers might take this move as a bad sign for Mid America, but nothing could be further from the truth; the move will strengthen the bank’s bottom line by cutting expenses.
Tim Simz of the state Division of Banking said the closing is not related to any question of instability on the part of Mid America.
“It’s just a business decision by the bank. There’s no regulatory pressure or anything like that,” Simz said.
Ironically, Mid America got its start as the Footville State Bank. The name was changed to Mid America in 1989, and it opened a Janesville branch in 1990, according to the bank’s Web site.
Footville State Bank was chartered as a Wisconsin financial institution Jan. 3, 1910.
Mid America opened a branch in Williams Bay in 1999. It also has a “loan production office” in Brookfield.
Wisconsin Bancorp, whose founders include Palubicki, acquired Mid America in July 2008.
Carlson held out hope, saying she’s been calling around, looking for a bank that might want to take a chance on Footville.
Jan 2, 2010 at 6:36 p.m.
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From a pure financial standpoint, I understand what Mr. Potter, I mean Mr. Palubicki is doing. As most people realize, this is one of many examples of what usually happens when a business is bought up by outside investors. They look at their newly acquired assets, then they look at which ones are at the top, and which are at the bottom, profit wise. It's too bad Clarence's nephew couldn't come down and show Mr. Palubicki what Footville would be like if he kept the bank open. The peoples lives that he would touch. Mr. Palubicki fails to realize that behind the spreadsheets, there are people. It sure would be nice to hear a bell ring in Footville. Mr. Palubicki could be a local hero, but he realizes that more money is the secret to a wonderful life.
Jan 2, 2010 at 5:02 p.m.
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Well my Mom has banked at the Footville Bank for over 50 years. This has been quite a blow to her. She has decided to move all her farm and personal banking to Orfordville. By the way it sounds a lot of people are also moving there business to Orfordville. They have no safety deposit boxes left so she is getting one a UBT in Evansville
Jan 2, 2010 at 3:45 p.m.
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If you have direct deposit you can pick any bank that has online accounts. Does Mid America have this option? If they don't and work outside of the city I would guess their next option would be to set up an account in the city where they work . If none of this applies I feel bad for those in Footville.
Jan 1, 2010 at 1:05 a.m.
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If the bank thinks it's Footville branch customers will transfer their accounts to Janesville, I think they are in for a rude awakening. Those who don't drive or rely on others for transportation, won't want to go to Janesville and if they do they certainly will be more likely to stay on the south or west side rather than the east side. They may even go to the downtown banks.
My daughter has a savings account there; it won't be staying at Mid America.
Not enough loans? Well duh. It's a farming community and has a significant elderly clientel. What's really stupid is Mid America's stipulation that another bank cannot go into the Footville building. Hate to break it to them, but I doubt they will sell it with that restriction.
Dec 31, 2009 at 1:03 p.m.
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As a loyal customer of Mid America Bank, I fully understand the reason for closing a nonproductive office. It is my understanding that they have continued to grow and have opened loan production offices not just in Brookfield but in Madison as well. Therefore, this bank shows the stability and has my confidence of their continued success. ATM's are available at all their locations and in Footville. I am not charged for using their ATM's. I enjoy banking with Mid America for all their employee's know me and are always friendly.
Dec 31, 2009 at 6:49 a.m.
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But local business's, small or large have to give consumers a reason to shop or do business with them. They have to show some loyalty and good business practices and you don't see that a lot anymore either.
I feel bad for the elderly, who really don't leave town anymore than they have to. It will impact them the most.
Dec 31, 2009 at 6:41 a.m.
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sprout You are right on ,can't add to that
Dec 31, 2009 at 4:36 a.m.
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I am really surprised they left it open as long as they have in footville. Footville is a very small town, and with the bank having limited locations, and limited atm's without fee's. Everyone is looking to save a $ these days, and they just can not offer that.
Dec 30, 2009 at 8:04 p.m.
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This is not a good sign for the bank. The fact that they feel that it is necessary to bring this up is suspicious.
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