2015 Rising Stars in Banking: Mark Heinemann

Mark Heinemann came to community banking from an unusual place: selling cell phones from a kiosk in a South Dakota mall..Although originally intending to spend less than a year at Farmers State Bank of Hartland, Minn., Heinemann ended up making a career of it, buying the bank last year with Daniel Otten, the man responsible for bringing him on board in 2004..Now, Heinemann is president and chief financial officer of the $106 million bank. Otten, who originally hired him as a customer service representative, is CEO and chairman..NorthWestern Financial Review is honoring Heinemann as a Rising Star in Banking for 2015, along with six other bankers..Despite his original plans, Heinemann realized within months that banking was where he wanted to be. Soon, he was helping Otten with loan processing and took on the bank's IT department when its officer left unexpectedly. Heinemann was living about an hour away from the bank at the time. "I commuted 55 miles to Albert Lea – in the winter, which shows how much I wanted to work there," he said.."It was a dream for me to get someone like that and know that he's committed for the long haul," Otten said. "I'd start the conversation about the portfolio or earnings, but then he'd just pick things up and start questioning why things were the way they were. That's when the bells started going off.".The pair had discussed an emergency contingency plan – how to run the bank if owner and president Nancy Skophammer were unexpectedly incapacitated – and both were interested in acquiring the bank when she retired. "Once I finished my MBA [in late 2012], I was getting a lot of soft offers for twice what I was making at the bank and that was hard to ignore," Heinemann said..Five days before Christmas 2012, Otten and Heinemann approached Skophammer about buying the bank three to five years down the road. She listened to the pair – and gave them a year to put together a deal.."I don't know if it was naïve or confident – maybe a combination of both – to believe that we could do it in that time," Heinemann said. "We didn't know all the intricate steps but we had the drive and desire to figure it out, and knowing that I had someone of Daniel's intelligence and experience was a huge benefit.".Otten had developed a list of about 200 potential local investors – customers, community leaders, family and others – to raise the necessary funds, and the two hit the pavement. It took them about 15 months to bring everything together, and the deal closed in April 2014..Heinemann had developed a reputation as a problem solver who was always willing to learn how to tackle new dilemmas. "Once you've been in the industry for a while, people kind of expect you to have the answers. The truth is I don't always know, but I'm always willing to find out," he said. "One of the most important statements you can make is 'I don't know' with the follow-up of 'I will find out.' I think that's the most important attitude to have, and that's what I look for in employees and customers.".When the bank bought its first cash recycler 11 years ago, it was Heinemann who sat down with the vendors and hammered out how it worked. "Pretty soon he was trouble-shooting it all by himself while the rest of us were sitting back and asking how the heck he knew what to do," Otten said. "It's been quite the achievement for me, having been able to mentor somebody like that. He's been able to keep a good perspective even though he's never worked anywhere else. You can get pretty heady at a young age when you've accomplished as much as he has, but he's kept it in check.".In the year since the acquisition, the two have developed a co-CEO approach to the bank, with their strengths complementing each other very well. Without Heinemann, the deal simply wouldn't have happened, Otten said. "He's the reason I'm here," he said. "I wouldn't have been able to do this without him as the leading edge.".Other 2015 Rising Stars in Banking honorees:Bill LaVigne, The Bank of Elk River, Minn.Lucas White, The Fountain Trust Company, Covington, Ind.Amanda Fanning, Adams Bank & Trust, Ogallala, Neb.Tim Heilman, Choice Financial Group, Fargo, N.D.Jennifer Kruchten, First National Bank and Trust of Beloit, Wis.Matthew Lujano, Westside State Bank in Westside, Iowa