2005 Rising Stars in banking

Northwestern Financial Review, Jun 15-Jun 30, 2005 by Bengtson, Tom

Ag background, father's inspiration helps Nebraskan

Leadership training and many years of experience as a farmer are helping Kendell Holthus rise through the ranks at Cornerstone Bank, N.A., in York, Neb., where he is a senior vice president, and a 2005 selection for North* Western Financial Review's Rising Star honors. Holthus, the son of former American Bankers Association president C.G. "Kelly" Holthus, hopes to fill some big shoes left by the example of his father.

About the same time Kendell graduated from Nebraska Wesleyan College in Lincoln, a long-time tenant left a farm the Holthus family owned some 100 miles north of York. Kelly encouraged Kendell to take over the operation. "I was only going to do it for a year," explained Kendell. He ended up working the 1,100-acre farm for 13 years.

In a high-interest rate environment, Kendell Holthus said he found the 1980s to be a tough time to be a farmer. With help from his parents, he weathered the storms - both meteorological and financial. But after getting through difficult times, he switched careers and joined his father's bank. He had grown up around First National Bank of York, which is now called Cornerstone Bank. It was 1994, and Kelly wanted to bring family into the bank, something that was prohibited by mutual agreement before Kelly bought the bank's sole interest from two other partners.

"I started at the bottom of the bank," Kendell Holthus explained. "I didn't want to be known as Kelly's boy."

Working through a variety of positions, Kendell entered an 18-month management training program at the bank. Although he has a wealth of experience farming corn and beans, and raising livestock, Kendell gravitated toward commercial lending more than agricultural lending. Cornerstone Bank makes a lot of agricultural loans, but its mainstay is commercial loans.

In addition to training provided by the bank, Holthus enrolled in a program called Nebraska LEAD, a leadership program operated by the University of Nebraska. The program is intended to help people with agricultural backgrounds develop leadership skills. Holthus called the two-year program "very important" in his growth as a business manager. "When you spend a lot of time sitting on a tractor you can become pretty withdrawn," Holthus said. "This program helped to pull out of me some skills and abilities that I didn't know I had."

The program involved travel to meet with industry and government leaders in Washington, D.C., Kansas City and other places. A highlight of the program was a 16-day trip during 1997 to Europe. Holthus was exposed to economies in three states of health: a sound economy in the Netherlands, an average economy in Turkey and a depressed economy in Bulgaria.

Holthus stayed with a family that farms tulips in the Netherlands and still corresponds with them to this day. Holthus said the trip helped him to learn to handle a variety of situations and people, something that is proving useful at the bank.

"Nebraska LEAD really tried to teach us that if you want to make things happen you have to get off the tractor and get involved," Holthus said.

Shortly after that experience, the Nebraska Bankers Association started its own two-year leadership development program. Holthus was selected to be in the program's second class. Holthus was also the NBA's choice to receive a scholarship to the Graduate School of Banking in Madison, Wis. That's a three-year commitment involving three twoweek sessions at school and numerous projects and reports to be complete between sessions.

"One day I was working late and dad saw me working on a project for the Graduate School," Kendall explained. "He asked me if I thought it was worth all the work. Of course it's worth it. If you asked me if I thought it was worth it while I was doing the work, I'd say no. But when I am done, will I think it is worth it? Of course I will."

Holthus says all the training will help him as the bank tries to remain a leader in an ever-increasingly competitive marketplace. "People don't seem to price for risk anymore. They just price to get the business," Holthus said.

Holthus noted a plethora of nonbank competitors, in addition to York's four banks. The town of 8,000 people is experiencing a housing boom, of sorts, and Holthus said loan demand has been solid. Although growing the $390 million bank is a goal, Holthus said equally important is to maintain the bank's familyowned, independent status. Kendell's sister, Kris Holoch, also works at the bank. They have a sister in Scottsdale, Ariz., and a brother in San Diego. All serve on the boards of the holding company and the bank.

Kendell says he remembers traveling to Washington D.C. and other places with the family when his father was president of the American Bankers Association in 1989-90.

"At the time, I didn't understand what a big deal that was," Kendall said. "My hope is that someday I can earn the level of respect that my father has earned in this business."

By Tom Bengtson