Community Advocate Spotlight: Jeff Johnson, First National Bank of River Falls

The following is a brief interview between WBA President and CEO Rose Oswald Poels and First National Bank of River Falls President and CEO Jeff Johnson.

Rose: How did you first get into the banking industry?

Jeff: After graduating from UW–Whitewater in 1987, I landed my first “real job” as a bank examiner with the Federal Deposit Insurance Corporation (FDIC) in Milwaukee. As you might imagine, it was quite an education for a 22 year old, as the savings and loan crisis was at its peak. The FDIC hired hundreds of new college graduates throughout the country in the late 80s, and we were thrown right into the fire despite the fact that most of us really had little education in our industry.

Our office traveled quite a bit, and we spent a great deal of time in New England, New York City, and the southwest part of the country. In my mind, there is no better opportunity for someone to learn about banking than to take a job out of college as a regulator.

After seven years with the FDIC, I decided that I had enough of the travel, and ended up taking a position as a lender at PremierBank in Fort Atkinson. I spent most of the next 15 years in the Fort Atkinson/Jefferson area, before my family and I came up to River Falls in 2009 to take the CEO job at First National. Throughout my career I have worked in a variety of areas, including lending, human resources, and bond portfolio management.

What is your favorite aspect of your role at the bank?

Like everyone who is reading this, I am a huge fan of the community banking model. Having the ability to quickly and efficiently help customers with their financial needs is so very important, and community banks do a better job of that than anyone. I’m certainly biased from working in community banks for the last three decades, but the ability to make local decisions is a huge differentiator, and it sets us apart from many of the
larger banks.

Also, I am so grateful that our bank ownership group, the Smith family, allows us to make such a positive impact throughout our communities. In addition to significant financial gifts, our staff regularly donates over 3,000 hours of their personal time to support local causes that they are passionate about. Banks are only as strong as their communities, thus it is our responsibility to give back as much as we are able. I am blessed to work alongside such a fantastic group of teammates that share the same desire to give back to others. I wouldn’t trade them for anyone!

What do you wish the general public understood about the banking industry?

That we are not all the same. There is a big difference between community banks, large mega-banks, and credit unions. Of the three, we (community banks) are much more reliant on the success of our customers and the communities that we serve. And like I said earlier, nobody provides more efficient customer service than community banks. Also, I am constantly astounded by the fact that the vast majority of people have no idea that credit unions are tax-exempt. I can’t tell you how many conversations I have had with people over the years about this subject, and it is rare when I come across an individual that is aware of this advantage that credit unions have over others. I’m not sure it will happen in my lifetime, but I remain hopeful that someday we will all be able to play on an equal playing field.

Where do you believe the industry’s greatest challenges are in the next three to five years?

Short term, our biggest challenge as an industry will be treading water until rates start to decline. The housing market has grounded to a complete standstill due in large part to high rates, and community banks like us typically rely on this area to provide significant revenue.

Long term, it will be really important for us to promote the fact that community banking is a great place to build a career. Where else do you have the opportunity to help others with their financial needs, build relationships with teammates, and give back to your community? We have so many different career paths — lending, finance, accounting, customer service, marketing, IT, human resources, and many others. There are a large number of current bankers in the 55–65-year-old range and nearing retirement and finding talented individuals to provide succession will be a big challenge for all of us.

Please describe your current role at your bank and share with us one of your more rewarding experiences.

After nearly 37 years in our industry, there are so many things that come to mind. People that I have worked with, non-profits that we have helped through financial support or volunteerism, bank scholarship recipients, the businesses we helped out with the Paycheck Protection Program (PPP) program, etc.

About two years ago, I received a call from a former customer in Fort Atkinson who I helped purchase an insurance business over 30 years ago. I hadn’t talked to him since we moved to River Falls 15 years ago. He was getting ready to retire and was closing on the sale of his business later that day. He called to thank me for taking a chance on him many years ago when nobody else would. He said without that help, he wouldn’t be in the position that he is today. Aside from being humbled by his call, it caused me to pause and reflect on the tremendous impact that we all have within our local communities. That’s something that we can’t ever put a price tag on, and it’s the reason why many of us choose to devote our lives to this great industry.