2008 Rising Stars in Banking: Bruce Kout

One question that doesn't keep the Kout family in Iowa up at night is who will take over the family bank. Bruce Kout, a 2008 NorthWestern Financial Review Rising Star, took the reins to Farmers & Merchants Savings Bank, Iowa City, from his father Don. While few things in life are guaranteed, no one was particularly surprised by the transition that occurred last December, least of all Bruce Kout, who doesn't remember ever considering a career in a field other than banking.."I kind of always knew," Kout said. "I grew up at the bank. The bank was a big part of our lives. As soon as I was old enough to work in the summer, I was at the bank. I worked at the bank through college. I never seriously thought about doing anything else.".Kout, 41, earned a bachelor's degree from Cornell College, Mt. Vernon, Iowa, and an MBA from Drake in Des Moines in 1991. With degrees in his pocket, he began pursuing a career in earnest — but not at the family bank.."My father always said, if I wanted to come back and work, there'd be a position available," Kout said. "He also always said I would have to work ten years somewhere else before I could come back to Farmers & Merchants. Well, I made it nine years. I took a job at Farmers Savings Bank and worked with them until 2000. [Pilot Grove Savings Bank bought Farmers Savings in 2001]. Seeing how things are approached at another community bank with a similar customer base and market to our bank made an impression.".Kout had spent his time at Farmers Savings helping to develop a new market, which proved a good training ground for someone aiming to one day become a bank president. The lessons came in handy right away when Farmers & Merchants branched into Iowa City in 2000.."It was a challenge I was in a good place to meet," Kout said. "Our goal was not to grow too large overnight — to set a healthy pace with our branches and keep customer service a top priority. I got involved in the community, in the Chamber of Commerce and the home builders association. I got to know as many people as I could. Community involvement and building relationships are key components to this industry.".In addition to community building, Kout takes part in strengthening the banking industry. Kout sits on various boards within both the Iowa Independent Bankers and the Iowa Bankers Association, and would one day like to pursue leadership positions — after he settles into his new role."It's something I can very much see doing a few years down the road," he said. "It is important to me to contribute in this way.".Back at the bank, generational influences contribute to a difference in management style between Bruce and Don Kout, although they share the over-arching goals of stability, professional growth for employees, and community growth.."I've been around long enough so that the employees know me and are comfortable with the way I'm inclined to do things," Bruce Kout said. "Our paths to these goals might differ slightly, but the reason I've always wanted to be in community banking is because the commitment to the towns we serve is built in."Farmers & Merchants Bank's growth in its three Iowa markets – Lone Tree, Iowa City, and Nichols – establishes a diverse book of business for the $118 million bank. "The ag industry dominates our communities, and ag is something this bank knows very well. But we've always made residential loans. Now, we're getting more into commercial loans and small businesses. Iowa City has the University of Iowa and the hospitals and clinics. It's a completely varied market and a growing one. There are a number of people moving into the community every year and that's been steady.".Kout and his wife Andrea have two daughters: Avery, 9 and Sidney, 7. "The kids keep us busy," he said. "When I'm not at the bank, I'm happy to just have dad duty." His children underline his commitment to making Farmers & Merchant stay fit for coming generations,Kout said.."When decisions are made locally- when it comes to working to keep Iowa strong – the communities are served better," he said. "We're doing it, so we know it's happening."Other 2008 Rising Stars in Banking include:Lynn Olson, Great Northern Bank, St. Michael, Minn.Jon Schmaderer, The Tri-County Bank, Stuart, Neb.Michael Solberg, State Bank & Trust, Fargo, N.D.Mark Demske, Community State Bank, Avilla, Ind.Dale Boyer, Citizens National Bank, Paris, Ill.