In a move designed to simplify its legal and governance structure, First Business Financial Services Inc. has announced plans to consolidate the charters of its three subsidiary banks, including Madison’s First Business Bank, First Business Bank-Milwaukee, headquartered in Brookfield, Wis., and Alterra Bank, headquartered in Leawood, Kan.
First Business says its existing products and services will be unchanged and offered under the names of First Business Bank in Wisconsin, Alterra in the Kansas City market, and First Business for trust and investment management and specialty finance. No changes will be made to the company’s existing management structure, with the current roles and decision making authority retained by local banking leaders in Madison, Milwaukee, and Kansas City, as well as the heads of First Business’s trust and investment management and specialty finance businesses.
Corey Chambas, president and CEO, says the simplification is a natural next step in the organization’s evolution as a growing commercial bank. No personnel changes are anticipated in connection with the charter consolidation plan, and operating efficiencies gained through charter consolidation are expected to free resources to drive growth.
The plan is subject to regulatory approval. In addition to Federal Reserve supervision of the holding company, First Business’s three chartered bank subsidiaries are supervised by four federal and state banking regulators. The necessary regulatory applications will be submitted to consolidate its three bank subsidiaries into First Business Bank’s existing charter in Madison, which would then be supervised only by the Federal Deposit Insurance Corp. and the Wisconsin Department of Financial Institutions.
The boards of directors of First Business and its bank subsidiaries have unanimously approved the charter consolidation plan. It is expected to take effect during the second quarter of 2017.
