Main Street Business

On a gray Wednesday morning, George Whalen III invited me into the conference room of the Bank of Millbrook’s newest branch in Millerton, NY. Whalen may look like a banker, with a starched oxford shirt and tie, but his easy manor is spontaneous and genuine. Those who know him well describe him as “a good guy.” 

You’re the third George to head the Bank of Millbrook. How did that happen?

The Bank of Millbrook was started in 1891 by a group of local citizens in the just-incorporated Village of Millbrook. By the time of the dark days of the Great Depression in 1932, the bank required new leadership and capital. My grandfather George Sr. and his wife Lillian were hard workers and had built several local businesses – a real estate and insurance brokerage and a dairy. When there was an opportunity to acquire stock in the bank, they were in the right place at the right time, and our family eventually gained a controlling interest. 

My grandfather was incredibly personable, and people trusted him. He became the bank’s president in 1938 at the age of 36 until my father George Jr. succeeded him in 1970. In 1998, I was elected president. My son George IV, who joined the bank in 2018, is now senior vice president of lending and next in line.

What would people be surprised to learn about you?

Maybe that I originally wanted to take over the family dairy farm or that I studied sociology in college and was a social worker before getting a MBA and becoming a banker. Or that my idea of leisure is running 10 to 12 miles on Sundays with my running group, the Junk Yard Dogs. I don’t play golf.

Why did the Bank of Millbrook open a branch in Millerton?

We are always looking for opportunities and had been considering Millerton for a long time. Initially we passed on the Key Bank branch when it was offered to us, but when Salisbury Bank was purchased by NBT, we realized there was an opportunity for our kind of banking in Millerton. 

It’s going really well. We are now the only community bank in the northeast corner of Dutchess County with branches in Millbrook, Pine Plains, Stanford, Amenia, and Millerton.

The Millerton branch is so modern – not like your branches in historic buildings.

We wanted it to be compatible with the style of this building. Our architect Doug Larson helped transform the former Elizabeth’s Jewelry store into a light-filled, modern space. Our interior designer, Rebecca Hathaway, selected everything locally. The cow paintings are by Virginia Meili, and the dollar bills over there are all by local artists.

How do you compete with other banks? What sets you apart?

I used to say other community banks were our competitors, but they have largely disappeared. The consolidation of banks has led to a reduction in relationship-based lending, as larger institutions favor standardized underwriting criteria creating credit gaps for small businesses, especially in rural areas like ours.

Our customers select us because of our local connections and personalized service, which large banks can’t offer. The bank’s board of 12 directors are all local business people who refer customers to us.

We can do everything a large bank can and do it faster and better with a personal touch. There’s an ease with doing banking with us. Everyone who works at the bank from the teller line to the board lives and works in our community. Our culture is stable and consistent – no 180-degree turns. The mortgages and commercial loans we extend remain on our books, and we retain the relationship with the customer. We know our customers and understand their business. History makes a difference.

One of the bank’s directors told me he gives your cell phone number out to potential customers. Is that true?

Yes it’s true, and my son George and I sign off on most of the lending – commercial and mortgages. We are always asking for business.

What’s challenging for banks right now?

We’ve learned to deal with the increased scrutiny and regulation after the 2008 banking crisis. Right now the biggest challenge is ever-changing technology and cyber security. We used to think we could do this internally, but two years ago decided to outsource it to experts. 

What’s your take on the local economy?

The business climate is strong, and our downtowns continue to evolve. The real estate market shows no sign of weakening with a lack of supply and healthy demand.

You mentioned a strategic plan. What are your goals?

Our strategy is steady growth, growing with our customers and taking advantage of opportunities that fit with our way of doing business. 

When did Bank of Millbrook add money management capability in addition to consumer banking products, mortgages, and commercial lending?

We started the fiduciary business 25 years ago and built it from scratch. It took guts. We have our own portfolio managers who create customized investment strategies for clients and will also pick up the phone and talk about the market. We’re very proud of their track record compared to various indexes. We now manage over $200,000,000. In general, our approach is conservative. We don’t chase the latest get-rich-quick schemes. 

Residential mortgages are a big part of your business. Why do home buyers prefer the Bank of Millbrook to online companies like Rocket Mortgage and big New York banks?

Again, it’s the personal, individual interaction. Being local, we understand the value of the real estate and can make fast decisions. We primarily do adjustable rate mortgages, but we also offer 10-year and 15-year fixed-rate mortgage products. We do not fix the rate on mortgages for 30 years because of interest rate risk. 

The Bank of Millbrook does not sell mortgages to other financial institutions or investors. Our ARM product can be more affordable and attractive, especially in the current environment, where there is the general expectation that interest rates will decline. We maintain the client relationship and service the loans ourselves. George IV and I personally approve all of the mortgages we make. 

Who are the directors of The Bank of Millbrook?

The twelve directors on our board are primarily owners of local businesses. We meet monthly and discuss business issues and opportunities. Some, like Farnham Collins and my father, have served on the board for decades and offer incredible perspective. The bank is actually owned by Millbrook Bank System Inc., which is a single bank holding company created to make it easier for shareholders to buy and sell their shares in the Bank of Millbrook. 

Has the bank been approached by likely purchasers?

Not recently. We’ve said no thank you for three generations.

What business leaders do you admire?

Well, all bankers admire Jamie Dimon, but I think locally, I admire the perspective, the instincts, and the values of my 94-year-old father, George T. Whalen Jr. 

Can you recommend your favorite business book?

With limited downtime, my reading is more newspapers and magazines or financial newsletters. Anything I can get my hands on that provides business news.

What do you worry about most?

What I think about most is how to allocate my time between my family, the bank, and its 50 employees; our real estate business; and my civic responsibilities to the Millbrook Community Partnership and the development of the Thorne Building and Bennett Park. They are all so important to me. 

What’s the best part of being a community bank president?

No one has ever asked me that. Leading a healthy strong bank for the next generation. I love coming to work. Our region has changed in a good way with a larger weekend influence, which has strengthened our communities and our real estate market. •

To learn more about Bank of Millbrook you can visit or call one of their many branches, or visit them online at bankofmillbrook.com.