What’s your story? by Rebecca Rowe

Daniel Otten is well known throughout Albert Lea and southern Minnesota as a reliable banker and community-oriented man.

He led the 2014 shareholder purchase of Farmers State Bank and altruistically serves on the Albert Lea Business Development Center executive board and the ALEDA loan committee.

Beyond these highlights, though, Otten has been a critical component, a vital cog, in a multitude of entrepreneurial endeavors throughout the city.

As chief executive officer of Farmers State Bank, he is the person to whom many future businesspeople of Albert Lea turn when they’re really ready to pursue their dreams.

Otten will share his story and entrepreneurial advice as the featured expert-in-residence at the upcoming ALEAP Thursday event.

 

Beginning

Otten graduated in 1981 with a degree in agricultural economics from the University of Nebraska. He originally wanted to return to the farming community in which he was raised near Pilger, Nebraska, but the farm crisis of the 1970s and ’80s altered his plans. Instead of beginning life on the family farm, Otten took a job with the Farm Credit System.

“I worked with farmers in Nebraska doing operating loans for about five years. The farm economy was really bad. Interest rates were near 21 percent and farm debt levels were climbing dramatically. I foreclosed on way more loans that I ever made. It was a sobering experience for a young lender and one that I’ll never forget,” Otten said.

Seeking a more positive environment in which to work, Otten escaped the ravaged agricultural sector of the Midwest and found employment in California. He began work as a credit reviewer with Western Farm Credit Bank. The team upon which Otten worked traveled throughout the five-state region of Arizona, California, Hawaii, Nevada and Utah and reviewed many different types of agricultural credits.

“It was a great job not only because of the interesting work, but because most of the people I was working with were Midwestern farm boys who had moved West during the agricultural crisis of the ’80s. We traveled all over the West looking at credit. It was a nice niche and certainly expanded my horizons,” said Otten.

 

Return to the Midwest

Beyond farmboys, there were, as well, farmgirls who had headed to the prosperous West. Otten met and married a Minnesotan, and the couple soon returned to their Midwestern roots. The newlyweds settled in Albert Lea, and Otten found a job at Americana Bank in Alden. Over a period of eight years, he assisted this financial institution in building its asset size from $26 million to $100 million and opening a new branch in Albert Lea. At the new location, Otten expanded his area of expertise to include commercial lending and overall bank management.

Otten utilized the strong relationships he built at Americana when embarking in 2001 upon his own entrepreneurial journey. He opened his own consulting business; banks and businesses throughout the region were soon calling for Otten’s advice.

“I left Americana with four children and no income for our family,” said Otten. “I knew, though, it was the right choice for me.”

As usual, Otten’s plans were precise. Consulting jobs at banks in the Twin Cities eventually led to the bank in Hartland and, ultimately, his adopted hometown of Albert Lea. Experience and clientele from his days at Americana Bank in Alden and Albert Lea perfectly positioned Otten to serve as a leader for the newly opened Albert Lea branch of the Farmers State Bank. This is the institution which Otten, along with partner Mark Heinemann and 78 investors, acquired in 2014 from Nancy Skophammer. As the bank’s current chief executive officer, Otten is fully committed to continuing its 100-plus year legacy of growing locally.

 

Entrepreneurial advice

Otten is highly qualified for the Thursday Albert Lea Entrepreneur Advancement Program event. He plans to expound upon some of the challenges discussed by John Schipper of Schipp’s TankerKleen at the July ALEAP event and will especially highlight his “Top 10” list of what not to say to a banker. It’s a conversation not to miss!

“The way in which you present yourself is absolutely key when approaching any banker or investor,” Otten said. “I can definitely tell you what not to do or say if you want to get a loan and, on the contrary, tips for not getting turned down. I’ve had a great amount of experience with both.”

A significant portion of time will also be reserved for questions. Attendees are encouraged to bring their entrepreneurial business banking inquiries to the Thursday night event; rumor is some special coins may be available to the brave souls ready to ask questions.

Otten will share his story and tips for entrepreneurial success beginning at 6 p.m. Following the spotlight session, there will be time from 7 to 8 p.m. for the development of connections and ideas. The event will be at The Marketing Plant at 137 S. Broadway Ave. Guests are welcome to come for either half or the entire duration of the ALEAP evening event. No RSVPs are required, and all are invited to join as we collaboratively work to build and improve our community.

 

Rebecca Rowe is a community economic development intern with the city of Albert Lea. She is currently a graduate student at the London School of Economics in England.