Thief
River Falls Business and Entrepreneur of the Year
award recipients
Keeping in
touch with their past helps them keep in touch with
the present
by
David Hill
Editor
In
1935, George Beito, president and chairman of the
board, stated, "The Northern State Bank is, in
every sense, a home-owned and home-managed
organization, formed to serve the financial needs
of Thief River Falls and the great territory of
which it is the business center." Northern State
Bank, its employees, directors and president,
remain just as dedicated to those principles
today.
When
in 1935 Northern State Bank opened, more than 1,200
citizens of Thief River Falls extended a welcome to
the new bank. In recognition of its continuing
commitment to the community it serves, the Thief
River Falls Chamber of Commerce recently named
Northern State Bank Business of the
Year.
Paying
attention to the financial needs of the customer
and community has paid dividends to the bank. On
October 24, 1935, deposits totaled $243,000. As of
December 31, 2003, the bank had total assets of
$175 million and $90 million of loans
outstanding.
Success
is often the result of hard work, good luck,
putting the needs of the customer first, and paying
attention to details.
Not
paying attention to the details can sometimes get
you in trouble. The President of the bank got a
little ribbing from his father Gene last week
because of the potholes in the parking lot.
Dave
laughed, and asked, "didn't I delegate that to
you?"
"You
have to have some fun in this business," said
Gene.
To
the father and son, who have grown up in the
banking industry, the most rewarding aspect of
working at a community bank in northwestern
Minnesota is watching the community
grow.
The
reason the bank has continued to thrive over all
these years, said Dave, is because the community
has thrived. Oh, he added, the community has had
its ups and downs, but it continues to grow, and so
does the bank.
There
have been many ups and downs over the years. Being
there when someone needs help, even if it isn't
you're problem or fault, is certainly one way
banking can be very rewarding.
One
of the more interesting moments for Gene came when
four young men from the community paddled canoes
all the way to Hudson Bay. The trip actually took
two summers, and involved quite a risk to the
paddlers. As rewarding as reaching a goal like
Hudson Bay by canoe may be, however, when the boys
reached their destination, they were out of money.
"One
day," Gene said, "I received a call asking if we
could wire them $300 so that they could make it
back to Thief River Falls. We were glad to do
it."
Having
faith and courage to
believe in the people you live with has been
important to the success of Northern State Bank.
Gene can remember several instances when a man's
word was better than his credit. In many instances,
Gene was willing to take a substantial risk simply
on a person's word. In doing so, he cemented
long-lasting friendships, and secured substantial
benefits to the community, the business owner and
the bank.
Gene
is thankful for the many times people and
organizations recognized their efforts as a
community bank. One year, the Vocational-Technical
Schools in Minnesota named Northern State Bank
"Employer of the Year." In another year, the Thief
River Falls Chamber of Commerce named Gene a "Man
of Action" for total community development. In
1989, the Minnesota Office of the United States
Small Business Administration recognized Northern
State Bank as the Financial Service Advocate for
1989.
Dave
explained that the success of any business isn't
because of the bank, it's because of the hard work
and entreprenurial spirit of the people employed at
the business. Staff at the bank feel thankful and
fortunate, he said, to play a part in the success
of any business, and in supporting the community.
During
all the years it has operated in the region,
Northern State Bank has supported the community in
many ways. The bank provides for several
scholarships every year, and is well-known for its
support of the arts. Numerous artists have had
their work displayed in the bank, and the bank is
credited with providing many paintings for the Art
Adventure program at local schools. It also works
hand-in-hand with many community organizations,
such as the Chamber of Commerce, Jobs Inc., Sports
Boosters, City Planning Committee, TRFAHA, the
Backcourt Club, Depot Preservation Committee,
Rotary, Lions and through its celebration of
Syttende Mai, reminds many in our community of
their past.
Being
a community bank means helping the community
realize its dreams, which is certainly in keeping
with its mission as a home-owned, home-managed
bank.
History
of
Northern
State Bank
Northern
State Bank opened for business on August 24, 1935.
Its president and chairman of the board was George
A. Beito, and its directors were C.M. Berg, Rasmus
Oen, O.D. Ostby and E.M. Bennes. More than 1,200
citizens extended a welcome to the bank on its
opening day and the bank reciprocated by giving
cigars to the men and carnations to the
women.
On
October, 24, 1935, deposits totaled $243,000. On
its 10th anniversary in 1945, deposits had
increased to $2,400,000. At that time, Kenneth E.
Lindbergh was assistant cashier. In 1954, Orville
Hanson joined the bank and soon became
cashier.
Tragedy
struck at Northern State Bank in 1955 when Kenneth
Lindbergh was murdered. James Taylor enticed
Lindbergh to hold the bank vault open after hours,
promising a $25,000 deposit. Instead, Taylor
abducted Lindbergh, stole the coin and travelers
checks in the vault, and drove to Clear Lake where
he killed Lindbergh. Taylor was apprehended several
months later in Illinois and was sent to Federal
Prison.
In
1945, George A. Beito was elected president of the
Minnesota Bankers Association.
In
1960, G.A. (Gene) Beito joined the bank and was
elected vice-president and director, and Orville M.
Hanson, director.
By
its 25th anniversary in 1960, deposits were
approaching $5 million. During its anniversary
celebration, orchids were presented to the ladies
and leather key cases to the men.
George
A. Beito died in 1965, and Gene Beito was elected
president and chairman of the board of directors to
succeed his father.
Between
1965 and 1970, Fred Dallmann, Orville Botner, and
Steve Stokke, were elected officers and Stan
Wilson, Clyde Christenson, Gordon Ballingrud and
Norris Melander were elected directors. Twenty
people were employed by the bank at that
time.
The
1970's and 1980's were a time of growth. The bank
building was extensively remodeled and expanded
between 1970 and 1971 by local contractors. Several
adjacent properties were acquired. An automatic
teller and discount brokerage service was added.
William G. Ness was elected a director, and Tim
Erickson, Barbara Bjerken, and Louise Breznay were
elected officers.
On
the occasion of the banks 40th anniversary in 1975,
former director Alfred Skarstad wrote, "Little did
we dream when we took in the first deposit in 1935
that the bank would grow to $29 million in the
short period of 40 years; we were elated when the
million-mark was reached." By 1980, deposits
totaled $46 million.
In
1977, Gene Beito was elected president of the
Minnesota Bankers Association.
In
1983, David A. Beito became an officer and directed
installation and operation of a new computer
system, which also served the Gonvick, Oklee,
McIntosh and Newfolden banks. In the 1980's, Kathy
Vatthauer and Kyle Anderson joined the bank, and
Orin Green and David Beito were elected
directors.
In
1991, bank deposits were $93 million, and the bank
employed 45 people.
The
1990s were also a period of growth and expansion.
Rick Reierson, Pam Dallmann, Larry Spong, Tom
Harlow, Vickie Meunier and Travis Kotrba joined the
bank. In 1993, the entire exterior of the bank was
refaced, and a new consumer service area added in
the former Ole's Northern Supply building. The
bank's walk-in branch facility was moved across
Third Street to the former First Federal Savings
and Loan building. Richard Sjoberg joined the board
of directors.
In
1994, there was an important change at the bank. On
January 1, 1994, Dave Beito became president of the
bank, and Gene entered semi-retirement. Gene
continues to serve the bank and community as a bank
director.
In
2000, the bank responded to the growing needs of
its customers to save time by adding a branch in
Hugo's Supermarket under the direction of Kazumi
Stegeman and Chrisy Bates. Jim Rogalla signed on as
chief lending officer, and Anthony Holthusen began
his career in banking. Randy Zaviska also joined
the bank to accomplish a complete revamping of the
bank's Information Technology Systems.
As
of December 31, 2003, the bank had total assets of
$175 million and $90 million of loans
outstanding.
In
addition to the officers already listed, employees
of the bank include Surleen Adams, Carol Audette,
Michelle Barry, Sandra Berry, Pamela Bettin, Wayne
and Karen A. Bjerken, Dennis Bondy, Rachel
Demarais, Sue Edgar, Terry M. Fayette, Marva J.
Green, Barbara Guzek, Vickie Holmaas, Cassandra
Holthusen, Esther Johnson, Evelyn Johnson, Vivian
Knutson, Jeannette Kvick, Roberta Laroque, Andrea
Marquis, Shandrae Marquis, Shelly McFarlane, Joan
Melgaard, Jennifer Nelson, Janice A. Olson,
Kimberly A. Olson, Francesca Opdahl, Ashley
Pederson, Carolyn Pittman, Jacquelyn Potucek, Tammy
Sparby, Heather Sunsdahl, Anissa Tranby, Kathy
Vatthauer, Candyce Wells Stacey Wikert, Jennifer
Saustad, Kenny Kain, Clarence Guzek, Jon
Metusalum
In
1990, Gene Beito was asked what he enjoyed about
the Thief River Falls business community. He
responded, "The personal contact with our
customers, board of directors, and
employees.
The
father and son duo of Gene and Dave Beito fully
support the bank's commitment to the community.
Thief River Falls Chamber of Commerce named
Northern State Bank the 2004 Business of the Year.
Northern State Bank and the Beitos were honored at
a Small Business breakfast May 18.
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