Illinois banker turns industry heads with unceasing energy

Northwestern Financial Review, Jul 15, 2001 by Crews, Jennifre Goepfert

He was named one of the "Outstanding Young Men in America" by Outstanding Young Americans, earned a Distinguished Service Award for people under the age of 40 from the Belleville Jaycees, was named one of the "Top 10 Outstanding Young People in Illinois" by the Illinois Jaycees, and is a Distinguished Past President of the Belleville Optimist Club.

In addition, he serves on the executive committee with Illinois Bankers Association and is currently its vice president. He has served on the Missouri Bankers Association board and has been involved with the Bank Marketing Association and the American Bankers Association. And this is just a small sample of the impressive resume of Gary Hemmer, president and CEO of the First National Bank of Waterloo. Hemmer's tireless energy as an enthusiastic young leader and a community advocate made him one of the most sought after bankers in the Illinois area early in his career. It also contributes to his selection as North*Western Financial Review's 2001 Rising Star for Illinois.

Hemmer began his career with aspirations of becoming a financial analyst for commercial business. After getting a bachelor of science degree in finance in 1975 at the University of Illinois, Hemmer took a bank job with the intention of continuing his education. He started with the First National Bank in St. Louis, now Centerre Bank, in 1975. Although he attended St. Louis University for a masters degree in finance, his initial goals fell by the wayside when he realized that there was much more to banking than he had anticipated.

"The biggest thing that hooked me was the fact that you are helping people achieve dreams and goals," said Hemmer. "That in itself has interested me. You meet a lot of different people, you deal with a lot of different industries and you help people achieve their goals and desires."

Hemmer proved to be not just a competent banker but an achiever and a go-- getter. After working in operations and in the credit program, Hemmer spent two years with the First Union Bank Corp., the bank's holding company and one year with correspondent banking at First National. His progress did not go unnoticed by his peers.

Norm Backeus, then president of MidAmerica BancSystems, Fairview Heights, Ill., met a young Hemmer through First National's correspondent banking program. Backeus recalls, "I can still remember the first time I met Gary. I stuck his name in the back of my mind thinking, `Somewhere down the line, I want this guy.' He was impressive. He was a young fellow but he handled himself well and was mature for his age. And he was obviously very intelligent."

But in 1981, before Backeus had a chance to work with him, Hemmer was scooped up by the First National Bank of Belleville, Ill., where he worked on mergers and acquisitions. Hemmer helped negotiate deals and bring several financial institutions on board, including the $400 million thrift, Charter Bank in Sparta, Ill. They also picked up Homeland Bancshares, a five-bank, $1.2 billion bank holding company in Waterloo, Iowa. During Hemmer's time with First National, the bank grew from a $250 million institution with four locations to a $7 billion multi-bank holding company, which became Magna Bank.

As part of the management team, Hemmer spent a great deal of time on the marketing and retail banking side as well. Although he had no background in marketing, he became involved in the Bank Marketing Association (BMA) and he spearheaded a successful campaign with the launch of their new television and radio spokesperson, "Magna Man." Hemmer also introduced supermarket banking in four locations. His work at Magna Bank turned heads in the financial industry.

When Magna Bank was bought by Union Planters Bank in 1998, Hemmer decided not to continue on with the institution. Backeus, who was now president and CEO of Norman Backeus and Associates, a bank consulting company he founded in 1984, was eyeing retirement and was looking for someone to take over his firm. Backeus had been watching Hemmer throughout his career. He was delighted that Hemmer was finally available. Backeus asked him to come to work with him at his firm, with the intention of eventually selling the firm to Hemmer.

"Norm and I really hit it off which is why I decided to go to work for him," said Hemmer, who said Backeus was one of his career mentors. Hemmer and Backeus worked for several months contacting and recruiting new business. One of the new businesses that Hemmer contacted was the $175 million First National Bank of Waterloo. They offered Hemmer a proposal, but it wasn't exactly what Backeus was hoping for.

"We were looking for a good CEO and president and we grabbed Gary," said Bob Hoffman, former president and CEO of First National Bank of Waterloo. "I had known that he was pretty involved in Magna's growth and new acquisitions. He had been in banking a long time and we had heard good comments about him."

Hemmer accepted the position as president and CEO of First National, although he said leaving Backeus was like "telling your father that you were not staying in the family business."