Feature Story: The First National Bank in Phillip

FIRST NATIONAL BANK IN PHILIP

When your bank is in rural Philip, South Dakota, you may be a long way from a lot of things, but that doesn’t mean you’re not close to people.

In fact, it makes you closer than ever to the communities you serve. Vice President Dillon Kjerstad of First National Bank in Philip agrees.

“In our territories, many customers may be 90 miles away from another independent bank,” said Kjerstad. “Our team is from here, they operate ranches and businesses here, and they know the people who come from miles around to keep their livelihoods going.” With locations in Philip and Faith, the bank has been in business for over 110 years. Originally chartered as The Bank of Midland, they eventually moved to Philip, acquired another bank and became what we now know as First National Bank in Philip.

That history matters, according to Kjerstad. Because when you’ve been around that long, you are better built for the challenges and changes of a livestock and agricultural economy.

“We’ve lasted through the thirties, the eighties and the nineties when credit was drying up and interest rates were soaring,” said Kjerstad. “Having a community bank model, we were able to weather those challenges and not be beholden to national decision makers or market trends.”

With a predominantly ag-related clientele, it’s crucial that decisions are made locally and quickly. It’s a level of service that business owners,

ranchers and producers may not readily receive otherwise. Funds on hand, efficiencies and margins matter. But people matter more.

“When you know the people, you know their circumstances and what they’re capable of,” said Kjerstad. “That not only makes for quicker decisions, it helps put money back into the community because you keep those families here, operational, successful and invested.”

Speaking of being invested, the First National Bank in Philip team doesn’t really think twice about investing their free time by sitting on school boards, economic development committees or hosting local fundraisers. “The bank is kind of a hub for all those things. We just do that naturally, because we know it’s important,” said Kjerstad.

As Kjerstad takes on his latest role as Chairman for the ICBSD Board of Directors, he follows the path of those who came before him. Ray Smith, former ICBSD President and current President, First National Bank in Philip, set an example of protecting and advancing what community banks do for a living, and for the living of their customers.

“We need people to know that when times are tough, community banks are going to stand tall,” said Smith. “Banking options are always changing and we must always advocate for the strength of our community model and keep it moving forward.”

While Kjerstad and his team at First National Bank in Philip look ahead, he is also looking ahead to his plans for ICBSD. “We have a great team of people, perhaps the best we’ve ever had. I view our number one job as preserving and protecting community banking and all that community banks do for our customers.”