2014 Rising Stars in Banking: Daron Van Beek

At some banks, service declines as the bank grows. Daron Van Beek, a branch manager for The First National Bank in Sioux Falls, S.D., has shown that while his bank has grown to more than $1 billion in assets, service is a word that has not been forgotten..NorthWestern Financial Review is honoring Van Beek as a Rising Star in Banking for 2014, along with five other bankers..As deposit-gatherers, branch managers at First National Bank will play a central role in the coming year. The boom times for agriculture have brought loan growth to First National Bank. Since 2010, the bank's loan to deposit ratio has increased to more than 81 percent from 72 percent. Now the bank needs deposit growth to keep pace with loan growth. "We want to put the accelerator to the floor on loans," said Van Beek, who is also the bank's assistant vice president. "My goal as a branch manager is to grow our core deposits so that we continue to grow the bank.".Van Beek has a unique opportunity to contribute to the bank's growth goals. Van Beek serves the most affluent demographic in the bank's footprint. The city of Sioux Falls is divided between Minnehaha County and Lincoln County. Van Beek is responsible for one of the three branches in Lincoln County. In Lincoln County, median household income is $73,300, according to 2012 data from the U.S. Census Bureau. That's 40 percent higher than the rest of the bank's footprint. "While we serve six strategic target markets, we serve primarily executives and professionals," Van Beek said. "These people obviously make up an important part of our customer base.".Executives and professionals tend to be the busiest segment of a bank's deposit base, Van Beek said. "They tend to want the mobile app. They want 24-hour, online banking and bill pay," he said. "They are the segment that pays their bills at midnight. They are also the hardest market to get into the bank. They want someone they know at the bank.".Executives and professionals want service, Van Beek said. "These are the people who will call you at 7 p.m. with a question," he said. "You impress them by giving them your cell phone number. Our philosophy here is that they do not go to a call center, they go to my cell phone.".Van Beek's philosophy also is that these deposit relationships should be serviced like they're commercial loan customers. A recent incident illustrates Van Beek's approach: a customer called Van Beek's cell phone after losing their debit card on a Saturday. The customer had tried the 1-800 number but couldn't get through to a representative. "I was able to call around and find someone in the card department to help them," he said..In the following week, Van Beek continued to follow up with the customer. He let them know their account had no unusual activity and let them know paperwork to protect them was underway. "I receive lots of calls on my cell," he said. "Some come from customers out buying a vehicle. Others come from clients leaving on a trip who just want to make sure the bank expects transactions out of town.".Winning deposits from executives and professionals tends to bring more business to the branch, Van Beek said. "This segment tends to be building up savings for retirement, so they carry significant balances, on average $100,000 in deposits per relationship," he said. "But beyond that they also bring their children's checking and savings account. When we can make a good impression and win their business we can take that goodwill as an opportunity to sell a mortgage loan or to create a wealth management relationship. It is about building their trust and wowing them the first time. Then they rarely walk out without an account.".When Van Beek became manager, the branch had $12 million in deposits and $2 million in consumer loans. Today, he and his team of six employees have built the branch to $40 million in deposits and $5 million in consumer loans. "I love starting new relationships," Van Beek said. "That's what makes me tick."Other 2014 Rising Stars in Banking honorees include:Katy Wolf Bode, Platte Valley Bank, North Bend, Neb.Laura Pomerene, First National Bank and Trust Co., Beloit, Wis.Brian L. Johnson, Choice Financial, Grand Forks, N.D.John Welle, Minnwest Bank Metro, Eagan, Minn.Dusten Johnson, Northeast Bank, Minneapolis