“Banker, ranch owner, says ag lending comes naturally”

Banker, ranch owner, says ag lending comes naturally

Posted: 21 Aug 2010 10:54 PM PDT

Banker, ranch owner, says ag lending comes naturally

By Larry Dreiling

Garden County, Neb., is a land of pristine natural resources, expansive ranches and productive farms as well as excellent hunting and fishing. In a recent survey, more than half of the teens there surveyed say they would like to stay in or return to the area if career opportunities were available.

The same number would be interested in entrepreneurship training and owning a business someday.

It's in this land of production and promise that Tom Olson plies his trade as a rural banker.

Olson is chairman of several banks in Nebraska, Colorado and Wyoming but calls the $14 million Lisco State Bank in Lisco, Neb., his home base. Olson's life has been one of devoted service to his profession and to the nation. Following graduation from college, Olson entered the U.S. Air Force. Upon his return to Lisco, Olson joined his father in the bank, later attending the University of Colorado's Graduate School of Banking.

As his reputation as a banker grew, so did his opportunities for service.

A few years ago, Olson was chairman of the Independent Community Bankers Association. He is also a past chairman of the Nebraska Bankers Association, past director of the Federal Agriculture Mortgage Corp. (Farmer Mac), and is a board member of the Federal Home Loan Bank in Topeka, Kan.

This year, all that work culminated in Olson being named the 2010 recipient of the American Bankers Association's Center for Agricultural and Rural Banking's annual Bruning Award for his lifetime commitment to agricultural banking.

He will receive the award at ABA's North American Agricultural Lenders Conference, which is being jointly held with the Canadian Bankers Association in Omaha, Neb., Nov. 7 to 10.

"Olson's dedicated service to his customers and the banking industry earned him the Bruning Award, which honors a lifetime of commitment to providing credit and financial guidance to farmers, ranchers and businesses in rural America," an ABA release said.

Olson is a second-generation banker. In 1935, his family took over ownership of Lisco State Bank and a small interest in Rush Creek Land and Livestock Co., a large cow-calf operation. After majoring in business administration at the University of Nebraska, Olson entered the U.S. Air Force as a budget officer at the now-closed Sewart Air Force Base, Tenn.

"Dad came from the Genoa, Neb., area," Olson said. "At the urging of a banker friend of his, he applied for a job with Mr. Lisco at the bank here in 1926. As the Depression came about, he saved this little bank for Mr. Lisco, who organized the ranch with the Wells family."

"I admit I did follow my dad in the business after college, but the bank alone wouldn't have been enough to convince my wife to return to this little community. It was the combination of the bank and the ranching operation that really drove me to return to Lisco. I told (my wife) Cynthia, I need a couple of years here to get my feet on the ground."

Bank acquisitions

Not long after Olson's return from active duty in the Air Force in 1966, he decided to buy a bank, in Dalton, Neb., on his own.

"My father said we would go broke if we did this, so I got two farmers and a brother-in-law to help me," Olson said. "It was then we purchased one bank after another. We now have bank locations in three states with assets between $550 million and $600 million."

Olson's office, decorated with photos of the famous and plaques acknowledging his good works, suits a man who seems to spend much of his time concerned with the prosperity of rural America.

"The consolidation in agriculture in the banking industry and other industries, and the reduction in the number of people on the farms and ranches that surround the community means you really have to work hard to attract new business," Olson said.

"Instead, take a town right down the road in Oshkosh. We worked with the Bank of Oshkosh to go to the Federal Home Loan Bank to get the money to bring Mark Ferrari Specialty Coffees to town. One of the partners is from Oshkosh. We got a $25,000 grant to bring them in. It's not a big home run, but it's up now to six employees, I think. That's wonderful. They ship coffee all over the country."

Olson isn't afraid to take advantage of everything that the state and national trade associations offer to assist customers so they won't need to shop elsewhere for credit.

"We make use of the connections I have with the Federal Home Loan Bank. It's a great source of liquidity for us," Olson said. "We also use the Bankers' Bank of the West in Colorado because they're most convenient to the majority of our bank locations.

"It doesn't matter if the customer is a college student using online or bank by mail, or a business or ag operation who wants to grow, we want to be there for them and give them no excuse to take their business anywhere else. Big or small, relationships are important."

Like any leader, Olson sees challenges as opportunities. Those challenges include finding good employees, making sure those employees have good continuing education, and the regulatory environment.

"Finding the right people is tough. Sometimes, you not only have to delve into that person's background, but I'd like to know what their education is and whether or not they are bright," Olson said.

"It's also important to have continuing education (such as online schools) as well. As former chairman of ICBA, I can tell you that all of these sources are great for successful bankers."

When the conversation moves to regulatory reform, Olson is measured with his words, as he has friends with many different viewpoints on the issue.

"What's important is that you have two fine trade associations in ABA and ICBA. Sometimes, it's difficult, because you have some people who are inclined to be with one association and not the other. Just like times we've just gone through on regulatory reform, each organization has taken different sides, which makes things difficult.

"I don't make a big issue of it because I've been associated with both, and you have to look at what each does and be positive about what each of them does, and sometimes you may disagree with the stands one of the associations takes. You can't really get hung up at all on the positions these associations take. It would be good if these organizations would work closer together."

That said, Olson adds that small-town banks were never the problem as regulatory reform issues reached Congress.

"All the same, we are going to have to deal with higher regulatory costs and insurance rates. I read somewhere about this and how we may see more consolidation in the industry because of it. I hope not. I really believe in those independent banks in small communities and what they can do for their communities."

Giving back

Still, it goes back to the people Olson serves in his banks.

"You have to have compassion for them. Take the older generation that isn't accustomed to online banking, for example. You have to be secure in knowing what their needs are," Olson said. "Safety and soundness are still important to them and to everyone. This recession is not over even though we've made some strides.

"When you come from a small community, I have always told my people here at the bank as well as my customers that they are the beneficiary of the experiences that I'm having," Olson said. I bring back everything I learn and try to let them be aware of what's going on."

That includes his years of service as Nebraska's Admissions Liaison Officer Coordinator for the U.S. Air Force Academy and its ROTC programs, overseeing officers who counsel young men and women interested in the U.S. Air Force Academy and the U.S. Air Force ROTC programs. He is a colonel in the USAF retired reserve.

Olson and his wife, Cynthia, also are active in the Nebraska Community Foundation, offering part of their charitable dollars to support NCF's HomeTown Competitiveness programs as a way of acting on the survey that indicated young people would stay in the area if there were opportunities available.

To that end, the Olsons established a donor-advised fund in 2006 that started the "Grow Garden County" program. The program now is moving into development of a strategic plan. Last January, 70 residents came together to set priorities for leadership development, entrepreneurship, youth engagement and philanthropy.

Through the Olsons' donor-advised fund, eight local public and private entities have partnered to leverage support for several community development grants. Recently, NCF was awarded a U.S. Department of Agriculture Rural Development matching grant for $124,000 over three years to support HTC in Garden County. Through that grant, the county has hired an HTC coordinator and business coach.

"Banks do a lot in their communities, but it matters if the bankers themselves get involved. To come back and give back can insure that our legacy will be around for a while," Olson said. "This is a good, safe investment that can maybe pay big dividends."

Olson is noticeably uncomfortable talking about himself. Yet, he finds receiving the Bruning Award to be quite satisfying.

"I don't think I should be bragging, but I've had a wonderful time doing what I've been doing in this industry and in my life," Olson said. "I've had so many calls and e-mails since the award has been announced. I've been getting a lot of letters telling me that I'm deserving of the award. It's a real surprise. I never really knew.

"They say the best part of a great job is getting to know the people that you meet along the way. I have that every day, it seems. I'm very fortunate."

Larry Dreiling can be reached by phone at 785-628-1117, or by e-mail at ldreiling@aol.com.

This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php
Five Filters featured article: "Peace Envoy" Blair Gets an Easy Ride in the Independent.

College Loan Consolidation

Sunday, August 22, 2010