American State Bank is celebrating 25 years this month. As employees celebrate, they reflect on how banking has changed over the years.
On April 23, 1987, a group of investors assumed the deposits of the former Osceola State Bank and Trust Company, which was declared insolvent by the state superintendent of banking.
The ownership group consisted of Jim and Vesta Emary, Jim and Elaine Schipper, Bob and Faye Garnett, Denis and Sandy Kale, the late Fred Reed and his wife Dorris and Todd Kale.
However, not everyone was excited about investing in a bank at this time, said Jim Schipper.
“It was in the midst of the economic bottom of Iowa agriculture,” he said. “My partners and I saw the opportunity and need for a locally owned bank in the community.”
Several original employees are still with the bank. Marilyn Penick was the bank’s first hire, followed by Marcia Pontier. Rick Oshel and Diane Addison were hired in the fall of 1987. Mellony Jamison, Teresa Jackson and Kevin Klemesrud were hired in later years. All of these employees have been with the bank for 22 or more years.
In 1990, ASB acquired the deposits of First Central Savings Bank, along with the current downtown Osceola location – 101 N. Main St. A Lamoni branch location was added in 1998 to serve the bank’s expanding trade area. The bank’s Winterset branch opened in July 2011.
Changes in banking
In the early days, the bank only had one computer, said Marcia Pontier, executive vice president and cashier.
“Today, each of our employees has their own station and transactions are processed electronically in “real time” with images and easy access through Internet banking,” said Pontier.
Marilyn Penick, now vice president, remembers when a residential real estate loan could be closed with only four documents for the customer to sign.
“Today, there are over 25 customer signatures required and many more documents,” said Penick. “It is our job to make the mortgage process as easy as possible for our customers, in spite of the increased regulations.”
Addison, another 25 year employee, works in the bank's information technology department.
"Item processing equipment at the bank has greatly reduced in size over the years," she said. "Instead of a large machine the size of our room, to encode and sort checks, we currently have a piece of equipment, the size of a toaster, that automatically scans each check."
Rick Oshel, now senior vice president, has been working with area farm customers for 25 years.
"When I joined the bank in 1987 average farmland in Clarke County had reached the low of $400 per acre compared to current historical highs of $3,200 per acre," Oshel said. "Farm input costs are also up, leading to farmers handling a lot more dollars in and out that certainly leads to more risk. All in all, there is certainly less conomy versus 1987, which leads to more economic agricultural stability."
Bank growth
President and Chief Executive Officer Kevin Klemesrud joined the bank in 1990.
"From $7 million in assets to nearly $140 million, currently, we have had steady growth in the past 25 years," said Klemesrud. "We have grown from the initial core group of five employees in 1987 to 35 employees currently, with 27 of those employees being with the bank over 10 years."
According to Klemesrud, with these increased resources, employees were able to provide 2,300 volunteer hours last year, and the bank made donations of more than $60,000. In addition, ASB provides an Internet-based financial literacy programs at no charge to six area high schools. The program meets the State of Iowa’s education requirements.
"We believe in community service and financial education," said Klemesrud.
American State Bank has provided leadership both locally and statewide, he said. ASB Chairman, Jim Schipper served as chairman of the Iowa Bankers Association in 2009. In 2011 Schipper was appointed by Gov.Terry Branstad to the position of superintendent of banking for Iowa division of banking, the chief regulator for state of Iowa chartered banks.
While Jim has duties outside the bank, he remains "very active," in the bank, said Klemesrud.
"American State Bank's growth is also attributed to our ability to grow profitably, while maintaining sound banking principals," said Schipper.
Today, the board of directors includes Schipper and Klemesrud, along with original board member Denis Kale. Additional board members include, Todd Thompson, Subway franchisee; Steve Reynolds, local farmer; and Royce Diveley, Lamoni businessman.
“It takes a team to make things work,” said Schipper. “Everyone in our organization understands the commitments American State Bank was founded upon. If the past 25 years is any indication, banking will continue to change and evolve, and American State Bank will be there to change and evolve with it.”
To celebrate its silver anniversary, American State Bank is having an open house at the Jeffreys Drive location on April 27.