2008 Rising Stars in Banking: Jon Schmaderer

Jon Schmaderer's first jobs in banking involved shredding documents and mowing the lawn. By junior high, he'd been promoted to behind-the-counter work with customers. At 36, Scmaderer admits he's "kind of one-dimensional" since he's been around banking his whole life.."It intrigued me from the start and fit my personality. I always liked being around and helping people," said Schmaderer, a NorthWestern Financial Review Rising Star selection for 2008. "I enjoy the business part of banking and all that that brings. There was no other industry where I could be part of the community and in the business field helping with economic development, helping individuals fulfill their passions.".Schmaderer, now president and CFO of the family's $66 million Tri-County Bank in Stuart, Neb., graduated from Nebraska Wesleyan University in Lincoln, Neb., and went to work at Havelock-Pinnacle Bank. "It was critical for me to see how other banking systems worked," he said..That experience helped Tri-County with transitions. "Until recently we only had one office; that's the way it was for 60-plus years," said Schmaderer. "At Pinnacle, we had 40 branches. I was able to pick out things about staffing and management that's helped us here. When I got here, we had maybe 16 or 18 full time employees — we're in the 28 range right now. We've had some growth; you can't do things the same when you have that.".Schmaderer believes one of his main contributions to the family business is his forward-looking vision. "It's more important to me that we're here and healthy five to 10 years down the road," he said. "Things we do here are pretty strategic. We're well capitalized, financially sound today; decisions we make are really designed [for fruition] five years from now.".Schmaderer said he has adjusted some of the bank's operation, such as its mortgage business. "Some of the things we did when we initially got into the mortgage lending area made no sense. We had one office in a town of 600 to sell mortgages on the secondary market; we didn't have the volume to justify the resources we needed to run that program. Today, 12 years later, we are probably one of the area's leaders. Not only has it justified the resources we dedicate to it, it has been a great source of customer relationships," Schmaderer said.."Another deal would be our investment department," he said. "It was started a little bit before I got here. It's been a great way to retain customers; many of the customers we picked up through our financial center didn't have a banking relationship prior, but they do now. It's brought deposits into the bank. Our bank has grown because we've got retail investments," he said. The bank is bringing on its first full-time investment representative later this year..Schmaderer completed his master's degree at Wayne State University, and in 2006, graduated with honors from the Graduate School of Banking at Boulder, Colo. He's also garnered wisdom from fellow board members of the Nebraska Community Foundation, as well as fellow members of the products and services committee at the Nebraska Independent Community Bankers..While continuing education is important to him, "I don't worry too much about my career or where it takes me because it's completely attached to this organization," Schmaderer said. "We'll have managed growth within our capital means and where that takes us remains to be seen. I really didn't come back here to sit on my hands and not be progressive."."My challenge as a leader in this organization is to continue our uniqueness. My staff and I will close loans, open accounts [at any time]; we've done it at midnight, at 5:30 a.m., we'll do it Sundays. If you want to get a job and work bankers' hours, this probably isn't your place.".In looking at the industry as a whole, Schmaderer sees community banking income moving "more toward the service end of things. We're starting to see finance and deposit becoming commoditized," he said. "We're going to see more relationships with larger money centers where we get paid a fee to service customers through their product line — see less interest income and more fee income. There's going to be opportunities for community banks that are a little non-traditional. The service end is never going to change; the products you bring them are going to be what keeps them coming in the door."Other 2008 Rising Stars in Banking include:Bruce Kout, Farmers & Merchants Savings Bank, Iowa City, IowaLynn Olson, Great Northern Bank, St. Michael, Minn.Michael Solberg, State Bank & Trust, Fargo, N.D.Mark Demske, Community State Bank, Avilla, Ind.Dale Boyer, Citizens National Bank, Paris, Ill.