A day that will go down in history for PWSB

Last Thursday, the day Port Washington State Bank celebrated its 125th anniversary by unveiling a hardcover book that traces the history of the financial institution, the bank celebrated another milestone.

That day, for the first time ever, the bank had $1 billion in assets under its management, ranking the family-run institution among the top 15% of banks in Wisconsin, Bank President James Schowalter said.

“That’s a milestone,” Schowalter said.

A milestone indeed for a bank founded with $25,000 in capital on Sept. 11, 1899. By the close of business that first day, the bank had $29,349.64 in assets.

The bank, the oldest continually operating business in Port and one of only a few remaining family owned banks in the state, was founded by Clarence Hill — Schowalter’s great-grandfather — whose title at the time was cashier, and George Henry, who was listed as president. 

Henry was a dentist from Manitowoc who didn’t work at the bank, while Hill, who started his career as a telegraph agent in Ripon and later turned to banking, bought out his partner in 1910 and built a legacy at Port State Bank.

“Port Washington State Bank: Putting Communities First Since 1899” is a 90-page volume that traces the bank from its roots to today, giving a personal spin to the business that is at the center of so much of life in Port.

A book wasn’t the first thing that came to mind when the Schowalter family started thinking of ways to celebrate the bank’s anniversary, Schowalter said.

Jack Henke, a friend of his who owns the marketing firm Henke & Associates in Cedarburg, suggested creating the book about two years ago, when they started looking at ways to celebrate the anniversary.

“He said to me, ‘This is a remarkable story,’” Schowalter said. 

Henke had created similar books for other businesses, he noted.

It didn’t take long for the Schowalter family to sign on, despite the fact no one in the family had experience as an author.

The book, Schowalter said, “is really a celebration of the banking industry, with a significant spotlight on Ozaukee County and Port Washington State Bank. It intertwines the story of our family and the family beyond that supports the bank — the shareholders, customers and employees.”

The book, written by Henke, is based primarily on information provided by Schowalter, his father Steve, who is the bank’s executive chairman and CEO, and uncle Mark, who is the bank’s vice chairman.

They were aided by the fact the bank had a relatively complete archive, Mark Schowalter said.

“We’ve always been at this location, and all the history stayed here,” Mark, the bank’s historian, said, noting the original 1899 building  at 206 N. Franklin St. was razed and replaced with the current structure in 1921. “The book represents like 20 stuffed boxes of clips, photos, everything. It was pretty disorganized, but it was here.”

One special thing that was found was Hill’s diary, Mark said.

“To have that dairy — that’s the beginning,” he said.

There wasn’t much written history of the bank from its inception to the 1930s, he added, so they pulled from several sources to get the full story.  

“Post World War II, more was written,” Mark said. “Our records kept getting more in depth.”

When they didn’t have enough from the records, the book fills in the blanks with background on what was happening nationally, internationally and in the banking world.

“You had wars, recessions,” Steve said. “Things that were really affecting our business because our customers were being affected.”

One invaluable resource, the men said, was Ronald Schowalter — Steve and Mark’s father, who started at the bank in 1949 and was active until his death in 2024. The book is dedicated to him and his wife Bette, Hill’s daughter.

“We got a lot of stories from him,” James said. “Unfortunately, we didn’t get to show him the finished product, but he saw some of the spec sheets.”

The book also touches on the fact Port State Bank is a family business — something that’s not always easy to continue.

“We’re all very different but we want the same thing, to do right by our customers,” James said.

The book touches on the bank’s origins at a time when people in Port were wary of financial institutions, how it built trust in the community and survived the Great Depression, with Hill able to open following a state-mandated bank “holiday” early because of Port State’s stability.

It mentions bank robberies — there have been six, and no one was injured during any of them — and security measures that included guns behind the teller cage, a tear gas security system — it short-circuited once in 1954, spraying customers and employees throughout the building — and spikes and electric wires atop the tellers’ cages. 

It also recounts the personal stories of some of the bank’s customers, both individuals and businesses, as well as employees.

It talks about the way Midwestern values have shaped the business and how it balances tradition and innovation.

The book talks about how Port State Bank expanded to having a branch in each Ozaukee County community, and how it practices philanthropy, contributing to a wide variety of community causes and encouraging employees to volunteer their time for good causes. 

“Our general philanthropy totals in the millions of dollars,” Steve said. “That’s a part of our history I like.

“Maybe we’re a little crazy in that we try to be involved in everything. But because we have such a diverse customer base, we feel we have to be part of everything.”

He’s especially proud of the bank’s scholarship program, which started in 1949 in honor of his great-grandfather, who died a year earlier, he said.

The book, James said, is “really a love letter to the bank, its customers and employees and the Schowalter family. It’s a testament to what community banking is and the difference between community banks and corporate banks.” 

The bank distributed copies at a celebration last week, and copies are being donated to the libraries and schools in the area. Beyond that, they’re considering ways to distribute it, noting any proceeds will be donated to the Port Historical Society.

“We never intended it to be an Amazon bestseller,” James said. “It’s a story of our business and a story of the community we served and that supported us.”