Nathan Ewert: Where you bank is a choice. And that choice has consequences far beyond your account number. And I just think that's so important. Local banking is better for the community. Local banking is just better banking, period. And I'm proud to be part of it.

David Cota: Welcome back to The Vault, where we unlock stories that matter. I'm your host, David Cota. When we think about banking, it's easy to focus on characteristics like interest rates, mobile apps, branch locations, deposits, loans, but there's an often overlooked dynamic that is worth thinking about, and that is, when you deposit your money with a bank, where does it go? What do they do with it? Today, we're going to talk about the power of banking local, and how banking local can support local businesses, families, and really the community at large, and it does make an impact.

To dig into that question and to explore it a little further, I'm joined today by Nathan Ewert, Senior Vice President of Personal and Small Business Banking here at FNBO. Nathan, welcome. Thanks for joining us today.

Nathan Ewert: Yeah, thank you, David. Pleasure to be here.

David Cota: So, Nathan, talk a bit about entering the banking profession in your career. How did you get to FNBO when you joined us seven years ago?

Nathan Ewert: Yeah, so I've been in banking for 30 years. And over the course of that 30 years, I've worked with three different institutions, three different financial instiutions — a national bank, a smaller community bank, and now I've been at FNBO for the past seven years. And through that journey, I've had the opportunity to work in mortgage, retail, small business, and even commercial banking. So, I feel like I've kind of seen every corner of the banking industry. It's given me a genuine basis for comparison. I've seen banking at a transactional level when a customer and an employee, for that matter, are treated more as a number, an account number. But I've also seen banking when the bank is invested — invested in its people and the communities it serves. And I've seen both sides of the equation, and I think that's probably what I'm most passionate about.

David Cota: Same industry, but very different approaches.

Nathan Ewert: Absolutely. So, I grew up in Western Nebraska. I grew up in a town called Ogallala, and then during my middle school years, moved to McCook and graduated high school there.

David Cota: Two good Western Nebraska communities.

Nathan Ewert: Absolutely. I did my undergrad at the University of Nebraska Lincoln, so yes, I am a big Cornhusker. I am really happy now, though, to call Colorado home. Most of my Nebraska friends and family have forgiven me for that.

David Cota: Right.

Nathan Ewert: But at the same time, you know, growing up in the Midwest, it's not lost on me that that's really shaped my perspective, my values, my work ethic, and how I even think about banking today — which I probably didn't even realize at the time — but I wouldn't replace those Midwestern roots for anything.

David Cota: Yeah. Growing up, did you have a sense of the local bank in those communities, and did you start to form a perspective on what banking means in a local community?

Nathan Ewert: Yeah, that's a fascinating question. Because I think banking in a small town community, it was such a force. And as you ask that question and I think about some of the banking leaders in the community, I can still visualize them. Just very professional, very buttoned up. But they were the community leaders as well, in terms of just being at the bank. I think everybody knew everybody in a small town, but especially who all the bankers were in town. I still recall when I got my first checking account and my first automobile loan. It's almost like it's a rite of passage. And I don't know, that's even more pronounced maybe in a small Nebraska town. Almost to the extent, I remember my first automobile loan — my first automobile loan payment was $137 a month, and I still remember that to this day, because I wrote that check out for five years. And if you're curious about the car, it was a 1985 Toyota MR2, bright blue, and it popped in Western Nebraska, David.

David Cota: But you're right, I mean, so much of the work that we do as bankers and the role that banks play in the community are tied to life events. And so you remember your first car, but you also remember having to get financing for that car.

Nathan Ewert: Absolutely.

David Cota: Opening up your first checking account, which you probably deposited money into like I did from my first job mowing lawns, right? I mean, I opened up a bank account actually at the First National Bank of Omaha, and I deposited my summer lawn mowing money into that account for many, many years. And several years later, I graduate from college and find my way back to Omaha, and now I've had a 28-year career. But it's interesting how so much of the work that we do as bankers is interwoven into life events.

Nathan Ewert: Absolutely.

David Cota: Yeah, I mentioned in the intro that there is an often overlooked question around banking, and it has to do with what do banks actually do with deposits after a business or an individual in the community deposits that money into the bank? So Nathan, maybe share from your perspective, or share with those that are listening, what do we do with those deposits after they are deposited into the bank?

Nathan Ewert: Yeah, I think that's a really good question, and I think the way I would describe it is this. When you deposit your paycheck, you're essentially making a choice about who gets to use that money and for what. So, it's a really important decision when you think about investing in a local bank or depositing your money in a local bank. But let me maybe spell it out in more plain terms. A bank is essentially an intermediary, and they're going to collect those deposits, but in turn, put that money to work by lending it out to local businesses and customers. So, for example, if you put $10,000 into your bank, that could be used for a farm loan, a small business loan, or even a new mortgage for a young homeowner. And then banks will earn what we call spread and that is the difference between the interest that we're paying you for your deposit, as well as turning around and lending that money out, typically at a little higher interest rate. But that difference is what we call spread. And that spread is important because it funds the operations of the bank, and it also helps with our community investment. So, we're not lending all of our money out, we need to keep enough money in the bank to help meet everyday withdrawal needs from our customers.

David Cota: Of course.

Nathan Ewert: But when somebody comes up to me and says, "Nathan, I choose my bank because of the interest rate," that's fine. That's one component you should think about, but I would also ask them to consider — what's the rate of return on a thriving local economy?

David Cota: Absolutely.

Nathan Ewert: Because that is what you're investing when you put money into a local bank.

David Cota: Yeah. Is that business model of local deposits funding local loans unique to FNBO, unique to community banks? How does it differ from bank to bank?

Nathan Ewert: Yeah, that's a good question, and I feel like I have some street credibility to answer this because I've worked at a national bank and a community bank. So, I would offer up three simple questions when I think about this. Question number one: where do my deposits go? A community bank is going to answer — to fund local businesses. A national bank will tell you to fund loans all over the country.

Question number two: who makes my loan decision? At a local bank, it's going to be somebody who knows your community. At a national bank, it could be somebody from a distant headquarters a thousand miles away, or some algorithm that they've plugged in.

Question number three, from a community and national bank perspective: what's the core mission of the bank? For a community bank, it's to be involved and invested in the community. For a national bank, those profits are going to be redistributed to shareholders. So, you can kind of go through and ask yourself a series of questions to really dispel the differences between a national and a community bank.

David Cota: Yeah. John Lauritzen, our current President's grandfather, had a saying that he coined, that described our company as "the great big, small bank." When I hear you describe those questions that you would ask, and I think about the capabilities of a community bank along with a commitment to the community, it really brings out that description of what a community bank is at its core.

Nathan Ewert: Yeah, it really does. And I think it's authentic. I don't think that's just something that we say as talking points, but legitimately, these things are accurate, and that is how we make decisions. That is how we show up in the community. And I just feel like that is a genuine differentiator in terms of how we operate.

David Cota: One of the things you do is run our network of branches — you and your team — 120 branches across nine states. We have thousands of customer interactions every day. Does the team hear from our customers that they value this principle of banking local? Are customers making that connection? Is it something we hear about in our branches?

Nathan Ewert: Absolutely. And I would say I think we're hearing that more and more. I think it's a shift and a change. And maybe that's not a big surprise, just given that customers today have access to so much information — they're coming in more informed than ever. But rather than just asking about rate, they're asking about how we make loan decisions, how we're investing in the community, and those types of things. And then I would also offer up that I think this is more pronounced even in younger customers. I have a daughter who's 21 years old — she's going to be a senior at Colorado State University. You have kids of similar age.

David Cota: I do.

Natan Ewert: College-age kids, young professionals.

David Cota: Yep, yep.

Nathan Ewert: But I think they're evaluating their banking relationship just as if they were comparing it to another purchasing decision they would make. Does it align with my values? Is this the type of organization that I want to be associated with in my community? And I think that's actually pretty cool, because this is a conversation that community banks are actually equipped to win when you look at our behaviors and activities and how we're showing up in the community.

David Cota: Yep, absolutely. We have customers coming to us every day with unique financial needs or situations that they're facing, and our team in that moment has to listen and offer good advice. How do you prepare the team to be effective in those moments?

Nathan Ewert: First and foremost, let me share this — I feel like the team out in the branches in the retail area have a really difficult job. It's a difficult but rewarding job.

David Cota: Absolutely.

Nathan Ewert: And one of the first things, David, that I always do when I'm interacting with retail leadership or if I'm out in the branches is to genuinely thank them for the way that we take care of our customers. But back to your question a little bit — I think it's really reminding them and instilling in them when they start the purpose of what they're doing, that this really is a noble job and that you are on the front lines of helping our customers navigate through their financial needs. And it's such an important piece. I think we do a great job at the bank of empowering our employees that are closest to the customer to make decisions on behalf of the customer. That just goes hand in hand with being a local community bank — to keep that decision making as close as possible. I'm a big advocate on the customer experience front.

David Cota: Yes, you are.

Nathan Ewert: There's probably nothing matters more to me than making sure that our customers get taken very good care of. And that's probably one of the most important things. In fact, this last year, as you're well aware, we've been talking a lot about culture — how important culture is within the branches. And we've been leaning into a program that we're really trying to make personal, where we're owning it and just creating that customized experience for our customers. But at the end of the day, it's really about elevating the hospitality that we're providing our customers.

David Cota: Right. Most often, and increasingly, we're seeing customers show up with a question. And so, to your point, being able to listen and offer a path forward is a big part of what our teams do every single day.

Nathan Ewert: Yeah, and sometimes they don't know the answer, but we have other resources within the branch. They can use the resources at their fingertips, but it is making sure that we're there in the moment to meet them, to get their question answered, or to direct them to the appropriate resource or person that can handle that.

David Cota: And that personal interaction — while we are all pushing to improve the digital experience that we offer — there still is value in those personal relationships and being able to interact with someone that you know listens, is able to offer a connection to a solution, and more than anything, has your back as a customer of the institution or of the bank.

Nathan Ewert: It really is. You're getting at the heart of everything, and that is to be able to sit across the table from someone, look them in the eye. And you know, this is something that's probably not talked about a lot, but these bankers are all showing up in the community, shopping at the same stores, dining at the same restaurants. And so, the stakes become higher, I feel like for a local banker who has to look a person in the eye and potentially make a credit decision or navigate a challenge with that customer, knowing that they'll see them in the community in the next couple of days. So it does make ultimately for a better experience and better decision making.

David Cota: Right. You and I have talked a lot about how one of the greatest outcomes that can result from an interaction with a customer is that they feel a little more confident after they have an interaction with their banker. Money is a personal dynamic.

Nathan Ewert: Very personal.

David Cota: And for many people, it's complicated. If our team can help make life, as it relates to money and finances, a little less complicated, I think we're doing our job.

Nathan Ewert: Yeah, I think you hit the nail on the head, and that's exactly right. And I feel like our people are, you know, well trained and equipped to be able to navigate those conversations with the product knowledge they have, being able to navigate our systems and technology and just be able to support our customers accordingly.

David Cota: One of the biggest customer groups that use our branches and interact with our teams every day are small businesses and small business owners. Talk a bit about small businesses — what do you see them most often coming to us needing and looking for in terms of advice or solutions?

Nathan Ewert: Historically, I think banks have underserved small businesses. One of the things we've done at FNBO that I think has served us really well is to have our own business line and strategy within small business. So, we are deliberately focused on this customer base, and we define small businesses as those customers that have revenue of less than $3 million. And so, you're talking about a smaller subset of customers, but at the end of the day, they are the backbone of the community — they make up 90% of the businesses in the country.

David Cota: Right, absolutely.

Nathan Ewert: One of the things that we hear from small businesses that what they want is they want to be able to have access to a person quickly — so get information, have fast, accurate access at a moment's notice. And so, with the model that we've put in place, we're delivering that and we're getting really good feedback from our customers. We're making the basics easy, making sure that they have a person available that can help them navigate the path they need to go down.

David Cota: Yeah. Business owners are focused — rightly — on running their business.

Nathan Ewert: They don't have the staff or the resources or the infrastructure. It just reinforces the point: you've got to make yourself available for that small business in the moment that they need it.

David Cota: What does banking local look like to a larger business, a commercial business, a manufacturing company that operates within the community?

Nathan Ewert: There are some differences, but some of the items, I believe, are the same when you think about banking local, and here's where I'm going. I think about first just the real connection and that relationship that you develop with your banker. And when you sit across from that banker and you kind of, when they kind of understand the customer story, it takes it from a transaction to a relationship — and I just think you can't replicate from maybe a state or two away, per say. So, I think real connection and that relationship is absolutely mission critical. But then I also think you go back to just local decision making. Most likely that banker dealing with a small operator or even a large commercial customer — if they understand his business, let's say it's a farmer, for example, and a farmer had a rough harvest — and if you put an ag banker in front of that customer, someone who understands the land, who understands the crop, who understands maybe the family history of that customer, they can better tell that story. And maybe they have the credit authority, but probably more than that, they have the context to be able to share that customer story with local underwriters or credit approvers to be able to navigate through a challenging situation. So, I do think that even though it's a larger commercial business compared to a small business, or whatever the case may be, I just think some of the fundamentals of operating local — decision making, relationship, the level of services that we offer, the convenience of having people that you can pick up and talk to — um you know, that makes all the difference in the world. And I think you kind of wrap all of that in with just overall quality of service.

David Cota: Right. Do you have an example or a story that you could share that really just captures this concept of what banking local means?

Nathan Ewert: There are hundreds of stories, and I'm thinking of one that probably just happened recently. We invited a handful of customers at a retail assembly that we recently had. And this was a panel of small business customers. And I'll never forget — this was a couple of months ago — and the gentleman, his name is Brian Scott, and he owns NoCo Garage. He sat on stage and was kind of espousing to this group of branch managers of his experience with FNBO. He had some business accounts with us, but he was starting kind of this new business of redesigning garages. And he didn't know where to start. He walked into our branch in Windsor, Colorado, talked to one of the retail bankers who put him in touch with one of our small business sales advisors. His name's Jacob. And he spoke so highly about Jacob. And the reason he did that was because, he said, Jacob didn't know all the answers to my questions. But he said, you know what he did? He said he found the answers and he followed up immediately, and they stayed connected over the course of the next seven to ten days to deliver him an SBA loan to start a new business.

David Cota: That's amazing.

Nathan Ewert: And it was just a fascinating story because we have shifted our small business strategy and model. And to hear a customer who just genuinely reinforce the value of that model — of making the basics easy and getting that advice and guidance with a trusted advisor in real time — it really resonated with me. So, where the story gets personal, though, I would share — I got back home to Colorado, that was in Omaha, and I called him up and I said, hey, you were actually at our FNBO retail conference. I saw you on stage and I've been thinking about redoing my garage. And he came out and gave me the estimate. Long story short, he just finished it last week. The garage looks amazing. And now my pictures are on his website. And you talk about a relationship coming full circle —

David Cota: That's so great.

Nathan Ewert: It's just fantastic, that's how it should work in a community banking model.

David Cota: It gets back to being able to listen, make connections, understand the need, and then follow up. And in this case, our response in some ways made a difference in his ability to successfully launch that business or not.

Nathan Ewert: That's exactly right. And if nobody's ever done an SBA loan before, they can be extremely arduous. There's a lot of paperwork and hoops to jump in. So that in itself was telling.

David Cota: Those stories, as you said, happen every single day all across the footprint. And it really is the power of local banking.

One other aspect of our business that results from a commitment to local communities and local banking is our philanthropic giving. We have a program, as you know, Impact by FNBO. We support housing, financial literacy, and workforce development. Talk a bit about how that connects to the work that you do and the work that your team does, and the importance of that work as a part of our business overall.

Nathan Ewert: Yeah. At its core, fundamentally, it's everything. You know, it's one thing to make capital available with loans and deposits to small businesses and customers in the community. But, you know, this is a part of that, because if you don't have a vibrant, thriving community, you don't have a strong bank. And so, for me, a strong community and a strong bank go hand in hand. You just can't separate the two. So, I'm really proud of what I see with our employees in terms of the work that they're doing for the three strategic pillars you just talked about. I mean, they put in — I think the number is 35,000 volunteer hours this past year. That's a lot of blood, sweat, and tears of our FNBO employees — your neighbors who are out there mentoring students, building homes, leading workshops and leading classes. And again, that's just a differentiator of a group of employees who say, this is what we want to do. This is the right thing to do, and it shows our investment in the community. But the strength of our communities and the strength of our bank are absolutely inseparable.

David Cota: Yeah, and it really connects to that responsibility that we have as bankers to show up for the community. At the end of the day, the community is entrusting us with one of their most valuable resources, and that's their money. And that requires that we earn their trust. And part of earning that trust is showing up in the community in ways that matter, and being able to be clear on where we will focus. And that's why our focus on housing and workforce development and financial literacy, it not only connects with the work we do as a bank, it also connects with needs that we see every day across the community.

This has been a fun conversation today, Nathan. What is one thing that you want to leave with our listeners or ensure that they walk away with from hearing from you today?

Nathan Ewert: Where you bank is a choice. And that choice has consequences far beyond your account number. I've been in banking for, as I said, 30 years. And one of the things I've realized is that banking is never just about money. It's about the stories and the relationships that you build throughout the bank. None of those stories happen without somebody choosing to bank local. And I just think that's so important. Local banking is better for the community. Local banking is just better banking, period. And I'm proud to be part of it.

David Cota: Ah, so well said, Nathan. I appreciate you being here. I appreciate everything you do for our teams at a local level and also broadly across the company. Thanks for sharing your perspective with us today.

Nathan Ewert: Thanks for having me.

David Cota: Absolutely. To our listeners, thank you for spending time with us today. We appreciate it as always. Until next time, I'm David Cota with The Vault. Have a great day.