2012 Rising Stars in Banking: Eric Kjos

As the technology officer and internal auditor at his bank, Eric Kjos has helped Regional Missouri Bank of Marceline, Mo., overcome the regulatory and technological hurdles brought on by growth. Over the course of a career that has spanned accounting, regulation, technology, economics and small business management, Kjos has fostered the skills he needs to add value at his bank..Kjos has been selected by NorthWestern Financial Review magazine as a 2012 Rising Star in Banking..Kjos always wanted to own a business. "I learned early on that I would rather be the person in charge," said the 1990 graduate from Bemidji State University in Bemidji, Minn. After college, where he majored in business administration, he built a varied portfolio of professional experience. He was an assistant controller at Communicor, a Wisconsin-based design firm, where he was responsible for accounting and federal regulatory compliance. After a layoff in 1999, he worked on networking, database and Microsoft systems engineering certifications. Initially this allowed him to work as an IT trainer but it also gave him the skills he would later need to start a business. "Those years got me the great overall business experience I needed," Kjos said. "They gave me the basic knowledge of how to run a business and, in some cases, how not to run a business.".In 2003, his chance to start a business came. Kjos' wife's family talked to him about working together to open a grocery store in Keytesville, a tiny town in north central Missouri. "The town needed a grocery store," he said. He and a business partner bought an old, beat-up building and repaired it. Kjos set up the database for the store's food stock and set up the cashiers' systems. "We started the whole thing from scratch," he said..In order to start the store Kjos had taken a loan out from the local bank. Before long, it became apparent that "the payments were far too large and the loan was not working for us," Kjos said. Then Regional Missouri Bank purchased the Keytesville branch. "We approached them and they made that loan fit," he said. "They did a great job working with our business," he added..The beginning of that lending relationship corresponded with a new need for Regional Missouri. The bank had normal organic growth for a community bank but it was reaching a size where the regulators expected more. "We had a pretty unfavorable IT exam," said Don Reynolds, president of the bank. The examiners believed the bank's systems were open to intrusion and called for the bank to reduce that risk. The bank had also fallen short in consumer compliance, according to its examiner. "It was basically growing pains from getting bigger over time," Kjos said, "the examiners expect more as you grow.".So in 2007, the bank zeroed in on Kjos when they learned he had singlehandedly set up the technology for his store. "That was the start of the relationship," Kjos said. He started doing technology part time for the bank but his role soon became more. The bank decided it also needed an internal auditor to develop a system that ensured the bank was complying with regulations. So, the bank offered Kjos a full time job as the technology officer and internal auditor..The salary of a new officer is a significant commitment for a community bank with $75 million in assets but the bank is getting its money's worth. Kjos has been proactive about obtaining the knowledge he needs to do his job well. In addition to taking many online courses, he graduated summa cum laude from the Barret School of Banking in Memphis, Tenn., and has completed two Independent Community Bankers Association audit school courses. "Eric is eager to learn and extend his education," Reynolds said..Now Kjos's has done his part to ensure the bank does not encounter trouble in its examinations and has taken on responsibilities as varied as his experience. Above and beyond more basic tasks like preparing the bank's call report, Kjos has developed the bank's audit system into a more efficient machine. "He has taken our internal audit function from something that frequently failed…to an efficient system of checks and balances," Reynolds said. Kjos also coordinates the bank's technology planning and systems. He is the chairman of the IT Committee and the head of the bank's interest rate risk management area..Over the course of Kjos's employment, the bank's assets have grown to $130 million and the expectations from the regulators have continued to grow. But now the "examiners are pleased that our efforts in these areas are being properly coordinated and maintained," Reynolds said. "I will admit that it was difficult for me as a manager [of a $75 million bank] to justify an officer's salary for someone who did not make loans or make any other direct income. I am now convinced that Eric's salary is money well invested."Other 2012 Rising Stars in Banking honorees include:Sherri Van Beek, CorTrust Bank, Sioux Falls, S.D.Henry Schutz, Lake Country Community Bank, Morristown, Minn.Todd Heilman, Western State Bank, Devils Lake, N.D.Tod Eastman, HomeStar Bank and Financial Services, Manteno, Ill.Adam Dittrich, Americanna Community Bank, Sleepy Eye, Minn.Blair Folkens, L.A. Amundson Investments, Sioux Falls, S.D.Greg Turner, MidWestOne Bank, Iowa City, Iowa