2014 Outstanding Women in Banking: Debra Norstad

When Main Street Bank, Forest Lake, Minn., failed in August of 2009, it threatened to pull White Rock Bank, Cannon Falls, Minn., down with it. The two banks were owned by BancMidwest Corporation, and most of the senior management was with Main Street Bank; once it failed, White Rock was essentially left to fend for itself..At the time, Debra Norstad was vice president and operations officer for White Rock Bank. Norstad's experience and leadership would become vital in keeping the struggling institution afloat for more than a year after the failure of its sister bank until White Rock was purchased by the Minneapolis-based 215 Holding Company..Norstad is one of five women honored by NorthWestern Financial Review as a 2014 Outstanding Woman in Banking..Because of her work with accounting – BancMidwest had consolidated accounting into its headquarters – Norstad was in the holding company's offices when the state banking commissioner arrived to shut the struggling bank down.."I never thought to leave because I knew about the closure beforehand. I saw what Main Street had gone through, and I knew White Rock had a bumpy road ahead, but I just couldn't leave," Norstad said. "There was pride in that, that this was our bank and we weren't going to let it go down. We were going to keep it open.".The 215 Holding Company had expressed interest in White Rock before Main Street's failure, but a year lapsed between the failure and when 215 finally acquired the bank..Keeping White Rock open in the interim would take more than Norstad originally bargained for. The bank was under-capitalized; it had real estate portfolio issues, in turn causing liquidity and capital issues.."I keep telling people, you don't want to get on that naughty list," Norstad said. "We ran all our cash letters and deposits through the Federal Reserve. We had to give them $3 million to hold on reserve just in case we couldn't meet our cash letters and deposits.".Then, their correspondent bank closed their account..Every day became a matter of going through expenses line by line and trying to conserve funds. The bank had to let its cleaning company go. Everyone pitched in to help, including bank President Brett Elford, who vacuumed.."She was key in holding us together until the 215 Holding Company purchased us," Elford said. "She's a positive, uplifting person. She doesn't let things get to her, and then that attitude trickled down to her fellow employees. When we were facing that crisis, her attitude was 'it is what it is, let's figure out how to make it work.' She was the only one who had cashier and investment portfolio experience on the White Rock team.".Throughout that year, along with her work keeping White Rock viable, Norstad worked tirelessly to smooth the way for 215, cooperating particularly with Keith Maetzold, president of 215's First Farmers & Merchants Bank, Le Sueur, Minn.."In an acquisition like this, those people who work within the bank being acquired always have a little apprehension about what the new company is going to be like. I think she really helped keep the people engaged and made sure everybody felt good about what was going on," Maetzold said. "She would jump right in and help with all of the accounting and due diligence, but she also put a positive bent on the whole process. I can't give her enough credit for what was going on.".Once White Rock was purchased by 215, it continued to operate under its original charter for three years before being merged with First Farmers & Merchants. Norstad was again integral to the functioning of the bank. She helped merge all aspects of the two banks' systems and joined 215's operations committee, charged with reviewing policies and procedures for the holding company's five separate charters.."I'm just so pleased that I was able to have somebody on my team like Debra," Maetzold said. "She gets after every project that needs to be completed. She's so positive about everything. She makes me positive."Other 2014 Outstanding Women in Banking honorees include:Jean Ann Honegger, Morton Community Bank, Morton, Ill.Trish Ellison, Cedar Rapids Bank and Trust, Cedar Rapids, IowaSherry Lervik, State Bank of Bottineau, N.D.Annette Russell, Security Federal Savings Bank, Logansport, Ind.