ISHPEMING — The second oldest state banking franchise in the state of Michigan celebrates its 125th anniversary this year. It’s been a year of changes that include the appointment of a new president, the launch of two building projects and an updated corporate identity.
Following the retirement of 22-year president Bill Stream, the board selected Kim Van Osdol as president/CEO. Van Osdol joined the bank in July. “This is an exciting and dynamic time in the bank’s history,” Van Osdol said. “We’re planning to break ground on a new building in Marquette, and we plan to relocate our Front Street office into the new building in early fall of 2013. We’re also expanding our branch inside the Super One grocery store in Negaunee, with completion expected in early spring of next year,” he said.
The bank has also adopted an updated corporate identity, and work is in progress on an updated website with improved options for customers. Peninsula Bank Board Chair John Jilbert reflected on the history of the institution. “We take great pride in the solid history of the bank and the legacy of its founders,” Jilbert said. “At the same time, we’re embracing their forward-thinking approach and forging ahead to continue providing the contemporary services our customers expect.”
Peninsula Bank opened its doors on Main Street in Ishpeming on December 21, 1887, and the main office remains on the same site today. Since 1968, Peninsula Bank has expanded to six locations in Ishpeming, Negaunee and Marquette.
In April, 1887, the founders invested $50,000 in capital. By the time the bank opened in December, the local newspaper reported that Peninsula Bank had subscriptions exceeding $76,000. Steady growth in the ensuing 125 years has led to current assets in excess of $136 million.
When Peninsula Bank began in 1887, Ishpeming was the largest city in the Upper Peninsula, with a population of 9,000 people. Eight active iron mines in Ishpeming fueled a robust local economy. Advancing technologies in the region at that time included the introduction of telephones and electrical services.
Current mining activity includes two active iron mines and the development of a $469 million nickel mine slated to begin producing ore in 2014. The new mine anticipates an annual payroll, excluding benefits, of $21 million. “The new mine has already created new jobs, and those jobs translate into home and vehicle purchases,” Van Osdol said. “We serve many of the mining company employees, and we’re excited about the other banking opportunities we can provide to incoming workers.”
In recent years, the economic base of Marquette County has diversified. Health care is a strong focus with the presence two hospitals and more than 200 doctors. Other components of the local economy include Northern Michigan University, a state prison, numerous government offices, an active tourism industry, and expanding retail and hospitality facilities.
Through the decades, Peninsula Bank has weathered large fluctuations in the economy. Van Osdol credits the bank’s focus on relationships, careful management and solid banking practices as key reasons for the bank’s longevity.
“Our customers have told us that they value the relationships they have with our people,” he said. “In some cases, Peninsula Bank has served five generations of local families and businesses.”
Community involvement is also an important focus for the bank and its employees.
“We encourage our employees to participate in local community service and civic organizations,” Van Osdol said. “We have a strong commitment to support youth development, and we’ve sponsored the broadcasts of local high school sports events for many years.”
The bank also sponsors annual events at the U.S. National Ski and Snowboard Hall of Fame in Ishpeming, the foundations of both hospitals in the county, and numerous community events. “Any anniversary is about the past, present and future,” Van Osdol said. “For banks, it’s also about context and the growing competition from large nationwide banking organizations. We believe that our customers trust us, as a local small-town community bank, to provide the best overall banking experience now and for years to come.”
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