Iracore Case Study

Aug 28, 2023

Overwhelmed by banking acronyms? Unsure of the steps needed to take out a loan? Confused about different lending options? Don’t worry. We’ve got you.

We cover all these topics and more in our video series, Making Cents. Our knowledgeable associates break down a variety of banking topics, offering viewers education and clarity. Each video will leave you feeling empowered to make smart financial decisions that fit your needs.

In this edition, NBC SVP – Chief Commercial Banking Officer Brian Milliken and CFO of Iracore, Jim Skalski, to answer some rapid-fire questions from our host, Marketing Director Hannah Willis. Here’s what we learn:

Hannah starts off by giving Jim a pass on the jargon jar but informing Brian that she expects him to pay up if he commits a jargon foul.
Brian tries to negotiate a deal where, if he avoids using jargon, he gets to keep the money currently in the jar. This idea is quickly shot down.
Hannah, we now know, is tough. But fair.
Jim gives us a rundown on Iracore’s history. Turns out they’ve got over seven decades of experience, having been started in the back of a tire shop by a rubber warden.
Just giving you a second to let that sink in. A rubber warden.
Yeah. So, a rubber warden is a position people actually held during WWII. Rubber was a very scarce, very precious resource. 70% of the steel used during The Great War was mined from our very own Iron Range, and the rubber used to help reduce abrasion and corrosion on mining equipment was allocated by an area rubber warden. This same rubber warden would, years later, found Iracore on an understanding that rubber’s anti-abrasion, anti-corrosion properties could be used to line the interior of pipes. And a company was born.
Jim jumps ahead through several decades, past the founding of sister company, Irathane, in the 70s and landing us firmly in the present with the opening of a new manufacturing site in Canada.
Hannah then asks for the story of the Meet Cute between Jim and Brian.
Jim prefers the term love story.
It all started with fish. Fishing, to be exact. Jim showed up for a fishing trip on Lake Superior, only to meet the owner and captain of the boat — Brian.
A strong friendship was born, and while Jim knew Iracore didn’t have any banking needs at the moment, he tucked that idea in the back of his mind until the opportunity arrived to work with Brian and NBC.
Iracore’s business is very lumpy. That means they get a lot of business in a big chunk and then they have a long period of quiet. You know, lumpy.
The year was 2017. Iracore was acquired and goals were set to undertake some projects with a new banking relationship.
Private equity groups, like the one that acquired Iracore, have a tendency to want to use New York-based lending, or very large, national lenders. Jim doesn’t like their high cost, their slow speed, and the challenge of working with them. So Jim went rogue and included NBC in the mix. The board was shocked. Pleasantly shocked.
So, five years past that fateful fishing trip, Jim and Brian finally got their chance to work together.
Brian’s boat is named the Millenium Falcon.
Brian believes they won Iracore’s business because NBC can do all the things a big bank can do, while making all their decisions locally.
Another important factor is that local deposits stay local at NBC. They aren’t funneled out across the country to fund projects thousands of miles away. They fund projects right here, in the community.
Hannah explains that the speed with which NBC can get things done is due to local lending decisions.
Every business is unique and operates differently, and Brian loves learning all the ins and outs of each business he works with.
During the onboarding process, members of the NBC leadership team and Board came up to visit and do full due diligence to understand what Iracore does and just how they do it.
Now, in 2023, Iracore has doubled their line.
Jim has to put some money in the jargon jar. You can tell Brian wants to keep it.
Duly chastened, Jim then explains that a line is basically a revolving line of credit. And that it’s merely one of the NBC products they use.
This spring, there was some turmoil in the economy and some of the Iracore board is risk-averse. Brian helped Jim activate a seamless, behind-the-scenes product that made Jim’s board happy and comfortable.
Jim thinks smart people make him look smart. Jim doesn’t give himself enough credit.
To Jim, the key to business is people.
Brian offers advice to businesses looking for lending. He urges people to look at banking local, so your money gets reinvested into your community.
Hannah lets the audience know that NBC is the place to be if you’re looking for local banking … and maybe a new friend.

Also Available On