For bank located in 'the place that time passed by,' it's catch-up time

Northwestern Financial Review, Oct 15-Oct 31, 2005 by Hilgert, Jackie

As the outer reaches of Minnesota's Hennepin County transform from idyllic pastureland into bustling exurb, Farmers State Bank of Hamel is holding fast to its rural tradition - at least at the surface. Just last year, the $71 million bank constructed a new office in the heart of Hamel's business district instead of moving the quarter-mile to busy Highway 55 where all the traffic is and where many of the "big banks" have set up branches.

"We thought that if we moved to the highway, we'd be abandoning the town," said Rick Traut, president. Hamel isn't actually a town; it's an unincorporated area, part of Medina, a still-sparsely-populated community known for its equestrian culture. But that's been changing lately as grazing land starts to get swept up by developers who, with slight exception, are building million dollar homes that attract local notables from all walks of life, including professional sports figures Flip Saunders and Randy Moss. Even on Hamel Road, which serves as Main Street for the businesses of Hamel. residential development is underway in the form of high-end condominiums for seniors - it's just one of many projects the bank has an interest in. And while all this building concerns Medina city officials, leading to efforts to protect the rural flavor of Hamel, the transformation of local land has been a boom to the bank.

"We have about $37 million in our loan portfolio and about $20 million of it is in real estate and land development," Traut explained. The bank has a $1 million lending limit so it relies heavily on correspondent banking partners United Bankers' Bank, Bloomington, Minn., along with Wells Fargo. Most of the bank's income is derived from commercial business as residential newcomers are less invested in the local, countrified bank. Agri-business, meanwhile, dried up more than a decade ago.

In 2004, when the bank building was under construction, Medina required the new structure include a sprawling covered front porch making it match existing structures built in the 180Os. Leaders have since repealed that requirement on new construction and the sense in town is that as sidewalks go in and power lines get buried, there'll be no stopping the sprawl and the big boxstyle chain stores that typically follow.

Chairman, D. J. "Shorty" Dorweiler, isn't concerned about the perceived loss of Hamel's rural flavor. "I live in the real world," Dorweiler said. "Change is going to happen and I'm going to be part of it."

Fear doesn't appear to belong to Dorweiler's vocabulary. On the wall of his office, there's a photo of the third generation banker riding a bull in a rodeo; that's the arena where he picked up the nickname Shorty. Now that he's left bull riding to younger men, Dorweiler stays active in rodeo as operations manager for the annual Hamel Rodeo, a summertime event that raises hundreds of thousands of dollars for local non-profit organizations.

On display throughout the bank are "character" pieces contributed by Dorweiler and Traut - taxidermy from big game hunts conducted in Canada, Alaska and Africa. The most striking trophy is a brown grizzly bear standing in perpetual angst behind the teller line. Dorweiler wears its claw around his neck in place of a tie; it goes better with his blue jeans.

"People who move out here like that it feels rural," Dorweiler said. He added that a week or longer will often pass between times when a customer will come into the bank wearing business attire. But appearances can deceive and while customers like it that they can call their banker "Shorty," they also demand a modern bank with all the conveniences technology delivers. Traut said creating a nice environment was one of the driving forces for last year's construction of their new bank. The bank handles all its data processing in house and Traut boasted about low employee turnover. "It used to be, customers would drive past five or six banks to get to us," he said. "Now they pass a dozen." They'll keep coming here as long as we treat them right, he added, saying his employees were a large part of that equation.

From the street, the new bank looks old. One could easily imagine the structure to open after hours as a saddle shop. Inside, sunlight reflects off of a 125-year-old reclaimed plank floor. There are numerous display cases on the walls holding bank archives, antique guns and relics from early 20th century Hamel. And, of course, there's the bear.

It could be argued Farmers State Bank's old-west theme is deceiving. Inside, Traut and Dorweiler have secured the future of the rural flavor so many in Hamel desire; it's just as safe at the bank as items once secured behind the old safe door also on display in the lobby. But Hamel is still just a tiny part of a wealthy, fast-growing area west of Minneapolis. And Dorweiler is right when he said the town is changing and nobody can stop it. Just steps beyond the wagon wheel bench sitting on the bank's front porch, two vehicles roll past - a Hummer and a red Corvette.