Julie Dreesen is president and chief operating officer of Central Illinois Bank (CIB) which specializes in commercial banking services, with 17 locations throughout central Illinois.Her offices are headquartered in Riverside Center near the Super Wal-Mart in East Peoria.Her responsibilities include the overall business operations of the bank. Currently, Central Illinois Bank employs approximately 200 employees in Peoria, Bloomington-Normal, Champaign-Urbana, Springfield and Decatur.Dreesen’s banking career began in December 1980. Her experience from that time included: commercial loan credit analyst, operations supervisor, assistant cashier, and internal staff auditor. In July 1987, Dreesen became a loan review officer, and her responsibilities included traveling statewide to financial institutions, conducting loan reviews and administration. She wrote policies, procedures, and judged adequacies of bank reserves. She was progressively promoted from a position of commercial loan officer to an assistant vice president, achieving the position of vice president in December 1989. Her managerial responsibilities included training lending staff as well as managing a $45 million portfolio.In May 1993, Dreesen was appointed vice president of Commercial Lending for Bank One in Peoria. At that time, she was responsible for qualifying, developing, acquiring, and managing commercial loan relationships, which conformed to loan policy and provided the bank with the maximum benefit at the least risk. Her efforts entailed a financial portfolio of 130 customers.Dreesen became vice president of commercial lending for First of America Bank in Bloomington-Normal in July 1995.Her career with Central Illinois Bank began as senior vice president of Commercial Banking in August 1996. She then advanced to executive vice president and senior lender in January 1997. Dreesen was appointed to president and chief operating officer in July 1997.She graduated from Knox College in Galesburg as an economics major in 1980. Her career in the banking industry began soon after with a strong motivation to focus on commercial lending.Her community involvement includes: board member of Easter Seals, UCP, Bradley Chiefs Club member, Robert Morris and Associates (RMA) member, previous board member and vice president of Fund Development for Big Brothers Big Sisters, previous member of the National Association of Women Business Owners (NAWBO), a previous member of the Women in Management (WIM), and the Community Leadership School (CLS).Dreesen resides in East Peoria.
Tell us about your background – family, schools attended, etc.
I grew up in the small town of Wyoming about 35 miles northwest of Peoria. My father, Edward, worked at Caterpillar as an engineer. I attended Wyoming High School and graduated with a small class of 50 people.
During that time, I enjoyed being very active in basketball, volleyball and golf teams. I was also the editor of the yearbook, a member of the high school choir and participated in various plays. After graduation, I chose to attend Knox College in Galesburg, primarily due to my preference for a smaller school enrollment.
At that time there were approximately 1,000 students attending Knox College. Also, the close proximity to home as well as the school’s reputation as a liberal arts school was an advantage to me.
Again in college, I became active in the sports I enjoyed in high school. I was also the treasurer of the Delta Delta Delta sorority, enrolled in various club memberships and officer positions, and was a choir member while at college.
I was unsure of my career goals during college. I knew I wanted to pursue a business career and an economics degree made sense. Ironically, at that time, the only career I thought I would not be interested in was the banking industry.
After graduating from college, I moved to Springfield in 1980 and accepted an offer as an intern in the Governor’s Internship Program with the Illinois Department of Revenue. It was not long until I discovered government was not for me, and subsequently I moved back to my hometown of Wyoming and lived with my parents.
At that time the employment market was slim, and I interviewed for many different positions in retail. I worked two jobs – Brown’s Sporting Goods and as a teller at CEFCU until I found a full time position with First National Bank of Peoria as an internal auditor – and I moved to Peoria.
During my time at CEFCU I received valuable training as a teller and experience in opening new accounts.
As an auditor at First National, I continued to develop an overall understanding of banking. From there I moved into the position of manager of the note department.
I learned first-hand how to post payments, bank loans, and the general loan operations. My mission was to “clean up” the department and to hire and train new employees. In addition, I began a credit department and loan review program.
My responsibility was to structure this new program. I remember at that time I was a little anxious to have such an opportunity that early in my banking career.
In 1987, I accepted a position as loan review officer at Midwest Financial Group (later purchased by First of America Bank). There I worked with three other individuals, and we traveled to the various banks owned by the Midwest Financial Group. At this time, I also had the opportunity to work with many commercial lenders and directly interact with commercial loan management in Peoria, Rockford, Springfield, Decatur, and Bloomington. Our group also acted as the liaison for external accountants and bank examiners.
In 1989, I received an opportunity to be a commercial lender, an area of banking I wanted to pursue for many years. However, to accept the position it was necessary to sell my home in Peoria and relocated to Springfield. In this position, I handled a variety of customer needs and transactions. Also, my experience grew with how to deal with customer relationships and how to structure and negotiate loans. Even though I enjoyed the growth of my career in Springfield, I missed Peoria. After two years, I moved to Tremont to be closer to my family and friends and commuted to Springfield.
Subsequently, I received an offer from Bank One to return to downtown Peoria. During my experience at Bank One, there were many opportunities to meet several people in the business community. This helped establish business relationships in my future. As I reflect on that position, I can recall my preferences to work within a smaller bank that could offer better service to customers, as well as the advantage to make decisions at the local level.
I then returned to First of America in the business development area in the Bloomington-Normal community. This position allowed me to work with commercial lenders and branch managers to develop a commercial calling program.
In 1996, I accepted a position as a commercial lender for Central Illinois Bank, a wholly owned subsidiary of CIB Marine Bancshares, Inc.
When Central Illinois Bank began in 1987, it was a commercial bank offering business loans to finance start up costs, working capital needs and reinvestment in facilities and equipment. Today, Central Illinois Bank has expanded its array of products and services to include credit card processing, cash management services, trust and investment services businesses have come to expect from a community bank.
Initially, my efforts and responsibilities with CIB were to focus on the growth and expansion of commercial banking for CIB in the Peoria market.
We opened our Morton office in September 1996, but soon realized the need to find a larger location closer to Peoria. My selection was the new development of Riverside Center where a Super Center Wal-Mart was to open. Our building would be located at the entrance of the project. The location was selected based on its projected retail and commercial growth as well as the support from the City of East Peoria. However, after making the commitment to the site, we suffered some delays for construction and opening. We then moved up our plans to locate a facility in Peoria where there was a strong demand for commercial loans and deposits. We selected the Glen Corporate Park location and close proximity to many businesses. Subsequently, the East Peoria and Peoria facilities opened in October 1997. Our most recent facility opened in October 1999 in One Technology Center, located in the heart of the business district of downtown Peoria. This is our 17th facility to open in central Illinois.
My position at CIB changed during out expansion into Peoria. In January 1997, I became the senior leader for the bank, and in July 1997 was promoted to president. In August 1998, I became president and chief operating officer of CIB.
How is commercial lending different from personal banking? Does Central Illinois Bank focus more on commercial development than individual accounts?
CIB specializes in Commercial Banking Services. We understand that we can not be everything for everyone. Our bank can and will handle personal banking services, but CIB has a great deal of experience in commercial lending and deposit services.
With banks in Chicago, Indianapolis, Milwaukee, and Omaha, we have more years of commercial loan experience than the majority of our competitors. Our focus is on understanding the customer’s business, identifying the credit risks, and working a solution that is a win-win for both sides.
How does a smaller bank like CIB compete with the larger banks that have merged with even larger national banks? What particular benefits does a small bank offer that a larger one might not?
Central Illinois Bank has a lending limit in excess of $25 million. With the other locations in Chicago, Indianapolis, Milwaukee, and Omaha, CIB has links to compete with even the national banks. The smaller bank theme is a dedication to community involvement and personalized customer service, with the benefit of corporate cash management, merchant services, etc. Our professional staff will interact with whomever you designate in your organization to ensure prompt personal attention to your organization’s needs.
It is rare to see a female bank president. Have you experienced any bias or gender discrimination? Are clients sometimes surprised that CIB has a female bank president?
Many customers don’t expect a female commercial loan officer, and are even more surprised to see a female bank president. From time to time, a prospective customer would rather deal with a male loan officer.
I take a personal interest in my customers and try to provide quality customer service. It is also my experience that trust and respect is earned regardless of gender. Regardless of the questions or banking services requested, the customer has to call only one person – me. Integrity plays a very important role in our industry and I emphasize that to my staff.
Many bank presidents have not had the “hands on” retail experience and commercial lending experience that I have had. I’m able to use that experience to make decisions regarding the operation of the bank with a continued focus on taking care of our customers.
How has the banking industry changed in the last 30 years? How has the lending process changed?
Have you ever made a phone call to your bank and dealt with an automated phone system, experienced long delays, and never spoke to the same person twice?
This is just one example of the many dramatic changes that have taken place in the banking industry over the past 20 years. Unfortunately, mergers and acquisitions within the banking industry have eliminated many of the community banks. Technology has also made many advances that have affected customers, and the way in which they conduct their banking.
Then invention of ATMs (introduced in the early 1980s) and the integration of personal computers (in the late 1980s) have significantly changed how a person interacts with their bank. Electronic banking now allows individuals and businesses to manage their cash without visiting a bank lobby. Many of the larger banks have instituted practices such as not returning cancelled checks, 800 customer service phone numbers, and home banking services.
CIB offers many electronic banking services; however, a phone call is still answered by a person in the local branch, not a recorded message.
The commercial lending process has changed in that the loan request is evaluated based upon its ability to generate sufficient cash flow to retire the debt. Other factors considered are personal guarantees and collateral.
The character and/or knowledge of the borrower are extremely important, but are not the sole factor for consideration. In general, there are fewer commercial lenders as well as many larger banks that handle small business loan requests (less than $1 million) through a business banking center where credit scoring is applied. In many cases, the banking center is not located in our community. Our loan decisions are made locally by lenders and a loan committee that includes representatives from each of our central Illinois markets.
If a woman needs a business loan, what steps should she take before asking for a bank loan? What criteria does the bank base their decision on? Is it more difficult for a single woman to secure a loan?
It’s always a good idea to consult your accountant to evaluate the ramifications of the loan to the company’s financial statement. It’s also important to analyze the company’s ability to repay the debt on the “front end.” This may eliminate problems for the future. Also, I would suggest consulting an attorney which may limit the risk to the individual.
The bank will make its decision based on the liability of the project or the business within the industry. We also consider the cash equity contributions made by borrowers. In summary, it is necessary for the customer and the lender to develop a trust and later a working relationship. With the factors and conditions above, in my opinion, it is not more difficult for a single woman to secure a loan.
Where do you see the future of commercial lending? Describe the national market trends and how they compare with central Illinois. Will interest rates go up this year?
Commercial lending is different than other banking services as it requires personal relationships to be developed and maintained with customers that may not be replaced by technology. I believe the challenge in commercial lending will be for the lender to understand the new types of businesses that emerge in the future.
National market trends have been for banks to pursue large commercial loans and not focus on small business loans. Banks in central Illinois need to include small and medium size loans in their loan portfolios, as the number of large loan relationships is limited. It is different than doing business in metropolitan areas.
Also, the trend has been to only approve loans that qualify under standard underwriting guidelines. In many cases it is necessary to be creative and work with the business to approve a loan that does not strictly fit “in the box” by mitigating the credit risk.
I am often asked the question of interest rate change. My standard response is, “the interest rates environment is always subject to change, and very difficult to predict.”
What misconceptions, if any, do people have regarding banks and lending? What might be the most peculiar request for a loan you have heard?
People tend to have a fear of approaching a bank for a loan. In general, a lender should be one of three very important people that a business consults on a regular basis to be successful – its accountant, attorney and banker. It’s important to regularly meet with the lender to discuss historical performance, future plans, and projections of revenue streams. Communicating upcoming events that will affect the financial statements will ease the acceptance of negative results. Bankers don’t like surprises.
Regular communication will solve problems and issues before they become serious.
Tell us about your community involvement. How important is it for a business person to volunteer their time and expertise in the community?
My staff and I are continually involved with community events. I feel it is important to stress this with all my staff this with all my staff. Usually I am surprised to the extent that they are already involved. We are all involved in community activities such as PACE events, chamber functions, and participate in charitable agencies. I feel these efforts are critical to the success of the Peoria area. This is my home and I feel we should all give back to the community in the best way possible.
What do you like to do in your leisure?
Travel and sports have always been a major part of my life. Almost all local and national sports interest me. It is not unusual for my relatives and friends to watch sports whether on TV or at a game. My true love though is traveling. My mother is very active in this area and I only hope I can do the same. When I consider “leisure time” my thoughts usually focus on family and friends. TPW