Independent Banker - December 2023 - 22

PORTFOLIO
types of complaints that Weinstock
regularly hears about directors who
have outlived their usefulness on a
bank board.
Lake Ridge has avoided such
nightmare scenarios by engaging in
a rigorous board evaluation process
conducted each and every year.
Tubbs points out that the ideal
candidate will get " check marks " in
several areas, including whether they
are still actively engaged in business
and are a participant in the community
the bank serves. These areas are not
static, and so someone who fit the
criteria a year ago may no longer be
suitable today.
" When life changes, " says Tubbs,
" that gives us an opportunity to say,
'You're no longer fulfilling all of the
characteristics of an ideal director,
so maybe now is a good time to
part ways.' "
For vetting new candidates, Lake
Ridge engages in a process that
begins casually. First, Tubbs asks all
current directors to name promising
individuals, who then become part
" A decade ago, [our board
succession process] was
more reactive. We've evolved,
and we're now very process
driven and intentional. "
-THOMAS FRASER, FIRST MUTUAL HOLDING COMPANY
of his " bullpen. " He then sits down
for a cup of coffee with a prospective
candidate and follows a clear and
well-defined script. He meets with
these individuals even when no seat is
open as a way of gauging interest and
explaining what the bank is looking
for in a director.
Lake Ridge engaged in its last
director search four years ago.
Knowing what an " ideal candidate "
looks like can make the process easier,
explains Tubbs.
One advantage of following an
intentional board succession process
is that he's ushered far more age
diversity onto the board. " We now
have three directors under the age of
50, and they bring a different element
of energy to the table, which has been
fantastic, " he says.
A critical part of succession is
making sure a new director is set up
for success.
Diversity: the impossible dream?
Topping most community banks' wish lists for prospective
directors is " greater diversity. "
Jim L. Tubbs, CEO of Lake Ridge Bank in Middleton, Wis., is
proud of the age diversity on his bank's board, as well as the
geographic diversity (directors reside throughout the bank's
footprint). Sincere efforts notwithstanding, though, the bank has
only one woman on its board and no ethnic diversity, he says.
Tubbs believes having more diversity would benefit the bank and
is committed to persevering on his board-diversity search.
" All directors bring their own experiences to the table, which
sparks discussion, " he says. " I'd expect that someone with a
different ethnic background would bring a different point of
view, and different points of view are healthy and something we
want included. "
Fraser assigns each new director
a seasoned director who serves as
a mentor or just answers questions
about board processes and materials.
First Mutual also arranges a series
of meetings with business unit
heads so " the new director can gain
an understanding of the different
functions within the organization and
how they fit together, " he explains.
First Mutual's mentorship program
is a best practice but one that often
goes overlooked. Far too many banks
take enormous pains to recruit
desirable directors without then
easing the transition.
" Most banks have a short
orientation, they go over a board
book, there's some socializing, and
then they throw you in there and
say, 'Perform,' " notes Weinstock. " If
there's one thing banks should do,
it's to provide more orientation for
new directors. "
Elizabeth Judd is a writer in Maryland.
22 // ICBA Independent Banker // December 2023
Independent Banker - December 2023

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