Progress: A Year in Review at First Security

The year 2023 ended with First Security’s Board of Directors electing Kurt Herbrechtsmeyer as Chairman of the Board and promoting Brad Miller, who had been the bank’s Chief Financial Officer since 2021, to President and Chief Executive Officer effective January 1st, 2024. Brad also joined the bank’s Board of Directors.

Brad came to the bank with a bachelor’s degree in accounting and business administration from the University of Kansas as well as a Master of Business Administration degree from Washburn University. He also earned a Chartered Financial Analyst® Institute designation and is a member of the Institute of Chartered Financial Analysts. He has a background in public accounting, institutional investment management, and community-based financial institutions.

“My career has been in banking and financial services for over 30 years. I’ve been doing a lot of things over those decades to prepare for a role like this,” said Brad. “It’s an honor and I appreciate the trust that Kurt and the Board of Directors have placed in me. There is a strong 120-year legacy at First Security, and I look forward to building on that.”

A Herbrechtsmeyer has been employed by First Security for over 100 years, successfully directing the bank through the Great Depression, a devastating tornado, a 100-year flood, multiple pandemics, expansions, mergers, and the transition from traditional banking to high-tech digital services.

As Brad settles into his new role, Kurt Herbrechtsmeyer, former President and CEO of nearly 20 years, isn’t going anywhere. He is taking over as Chairman of the Board, allowing for some continuity as leadership changes at First Security.

The year ended with announcements regarding leadership – it also began that way. In January of 2023, Jason Walters joined the bank as Chief Lending Officer and Chris Corcoran joined as Senior Ag Lender. Chris was soon promoted to Ag Lending Manager.

“Chris has a diverse knowledge base in community banking and possesses a great deal of passion in ag lending,” said Jason. “He aspires to grow our ag lending footprint, improve our ag underwriting and analysis, and find innovative specialty lending areas. He has played a huge part in developing new channels for our lending team, and with his help, I believe we can make a big impact for our rural communities.”

Despite 2023 being an especially challenging year for many farmers and business owners due to inflationary price increases, interest rate hikes at a pace unseen in decades, and an overall shortage of labor, First Security allocated an impressive $92.3 million in funding. To put this into perspective, that amount could cover the inputs required for nearly 103,000 acres of corn and beans, or the equivalent of the land encompassing the ten towns where First Security has branches – Charles City, Dumont, Hampton, Ionia, Manly, Nora Springs, Riceville, Rockford, Rockwell, and Thornton – and more. Altogether, this area amounts to a staggering 161 square miles, underlining the breadth and impact of First Security’s financial support.

“That is a testament to our passion to provide access to capital and tools to help our farmers and small businesses,” said Jason.

Also proof of this dedication is the fact that, as of February 1st, 2024, First Security is the only community bank in North Central Iowa to offer financing through the State Small Business Credit Initiative (SSBCI). Whether it’s navigating the SSBCI, which is limited in duration, or programs like the SBA 7a or SBA 504, First Security is committed to finding innovative solutions to help small businesses prosper.

“That commitment mirrors my own value system. Rural Iowa is special and something to be protected,” Jason said. “I invite you to visit with us to learn more about how we can leverage loan programs to achieve small business dreams.”

Another area of the bank also finds joy in assisting customers with a different dream: owning a home. The Retail Lending Department is made up of Kim D. Schlader, Tracey C. Lynch, and Lacy Schoenfeldt, who was promoted to a lending role last year after accumulating 9 years of experience in other areas of the bank.

Kim said, “Lacy has been a valuable team member for our department. She’s a quick learner and a great resource for others in the bank. I have no doubt she’ll be successful in her new role with the additional responsibility of real estate loans.”

Many other First Security employees in addition to Lacy celebrated achievements and promotions. They include:

• Ag/Commercial Lender Andria Hillegas completed the Iowa Bankers Association’s (IBA) Commercial Lending School
• Portfolio Managers Ashley Engels and Danielle Tegtmeier graduated from the IBA’s Ag Credit School
• Compliance Specialist Billi Herman completed the American Bankers Association’s (ABA) Foundation to Compliance School
• Trust Operations Specialist Carly Demro and Trust Assistant Anila Kloberdanz achieved their Accredited Trust Operations Professional (ATOP) Certification
• Wealth Management team member Bobbi Spainhower passed the Finra Series 66 exam
• Drew Mitchell was promoted to Ag/Commercial Lender
• Alyssa Nauman was promoted to Accountant 1
• McKenze Schoba was promoted to Information Services Assistant
• Sheila Drilling was promoted to BSA Compliance Specialist
• Tierney Wedeking was promoted to Service Center Specialist
• Katelyn Schwery was promoted to Assistant Vice President, Marketing Manager
• Ramona Robinette was promoted to Lead Retail Advisor
• Amy Wilson was promoted to Assistant Vice President, Operations Manager
• Branch Manager Kathy Steere was promoted to Assistant Vice President

“One of First Security’s new core values is ‘life-long learning’,” said Chief Administrative Officer Heidi Worrall. “Our goal is to invest in employees’ personal and professional development so that they are happy and engaged in their current role or so that they can develop and evolve to fit the role they aspire to.”

Not only are employees on the move between attending schools and taking on new roles, but some departments are also physically moving. One of those departments is the Video Banking Department.

Through Video Banking, First Security can offer extended service hours to 8 of its 10 locations. Although some employees in Hampton can assist with video banking calls, the department is primarily based in Charles City. It was previously located in the bank’s old record vault and is now located near the bank’s Service Center and Data Operations Department.

“We are trying to move some folks around to make better use of office space, improve that office space, and also have more efficiency so employees in related roles can work more closely together,” said Brad Miller, President/CEO.

Another improvement in facilities was the replacement of each ITM. First Security first installed ITMs in 2015 and after 8 years, the technology had improved.

“Having updated machines with updated software has provided customers with a more secure and reliable experience,” said Video Banking Supervisor Caysie Erickson. “With the simplicity of the machines and guidance from our knowledgeable staff, using the ITM makes for quick and easy transactions."

Even though the Video Banking Department has been in existence at First Security for nearly 9 years, the technology is still new. In fact, First Security is one of the only banks in North Central Iowa that provides the technology. It’s similar to the level of service one may expect from a metropolitan bank, but First Security provides it in towns as small as Thornton, which has a population of just 400 people.

“It makes a big difference to our customers. Like everywhere, it’s become harder to staff some positions that require evening or weekend hours, especially in small towns,” said Retail Manager Lyndsay Clark. “Because of Video Banking we can stay open from 7am – 6pm on weekdays and from 8am – 1pm on Saturdays in 8 of our locations. Each ITM also functions as a 24/7 ATM.”

First Security also wants to stress that Video Banking is more than an ATM. In fact, since Video Banking customers talk face-to-face with a bank employee, they don’t even need a debit card. The banker can identify customers through other means, and they can help with just about any transaction that could be done in the lobby – like depositing cash, making a loan payment, or cashing a check. Another perk is that it’s fast – in 2023 the average wait time to receive help from a Video Banker was just over 12 seconds and the average time to complete a transaction was under 2 minutes.

Through Video Banking and other tools, the bank is always aiming to enhance customer service. The bank also recognizes its obligation to support the communities where it operates and where its employees and customers reside. The bank supported a large number of non-profits and development initiatives through both volunteerism and donations. In 2023 and in Floyd County alone, First Security Bank and the First Security Foundation’s largest donations included:

• $125,000 toward building the NIACC Career Center
• $25,000 to the Rudd Historical Society to rebuild after the 2022 tornado
• $10,000 to the Rudd Public Library to rebuild after the 2022 tornado
• $5,000 toward the Floyd County Historical Society’s masonry project
• Over $22,300 toward replacing bleachers at the Floyd County Fairgrounds
• $15,000 to the 19th Amendment Society’s efforts to build a shed at the Carrie Chapman Catt Girlhood Home
• $5,000 toward Immaculate Conception School’s new playground

Looking ahead to 2024, First Security is committed to maintaining its focus on providing accessible financing to support farmers, businesses, and residents in the communities it serves. Additionally, the bank is dedicated to offering a secure and reliable place for individuals to deposit their funds.

President and CEO Brad Miller sums it up, “Our aim is to protect our customers’ financial futures, whether they’re new to banking or seasoned experts. We’re committed to improving their financial well-being and that of the community this year and for years to come.”

First Security Bank & Trust has locations across North Central Iowa and headquarters in Charles City. Member FDIC.