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Iowa State Savings Bank has been owned by Karl Knock’s family for 77 years, since his grandfather S. Ray Emerson and Ike Menzer rode in the backseat of Cal Menzer’s car to a baseball game in St. Louis, brainstorming prominent citizens in Creston who might buy shares of the bank.
That ownership was passed down from Emerson to his son-in-law Joe Knock and then to Karl.
After spending the past 27 years with Iowa State Savings Bank, Karl announced his retirement as chief executive officer during the bank’s annual meeting held Jan. 25.
Karl, 66, will remain involved with the bank, continuing his role as chairman of the board of directors, a position he has held since 1994.
“Between the cross-training we’ve done and the solid management team that was surrounding me, the ESOP way of transition of ownership and the fact we’re having our first grandbaby, this is a good time for me to make the transition,” Karl said in his office Tuesday afternoon.
With Karl’s retirement, Chief Financial Officer Adam Snodgrass is promoted to CEO. Kevin Stewart remains president of the bank and will continue to comprise the bank’s executive management team with Snodgrass.
Karl pointed to Stewart’s and Snodgrass’ experience as making for a seamless transition of leadership at the bank.
History
ISSB was founded by a group of community members in 1884, and the bank recently celebrated its 132nd anniversary.
Emerson and a group of investors then kept the bank open after the previous owners announced their intent to close the business in 1940. Karl’s father, Joe, came to ISSB in 1949 as the bank’s agricultural loan officer and became president in 1950.
Karl began working at the bank in high school and continued to work there during the summers while he was in college.
“My dad and I both thought I needed wider experience,” Karl said. “I applied for and was accepted to work for the FDIC. That was in the early ‘80s when banks were failing. ... I got detailed to the division of liquidation and went to Tennessee where I worked in the investigations unit regarding significant fraud conducted by a couple of brothers who had 29 banks in Tennessee.”
After his stint in Tennessee, Karl’s career with the FDIC took him to Chicago where he was in charge of the Westmont Consolidated Field Office.
Then, in 1989, Karl and his wife, Jan, moved to Creston so Karl could work at ISSB with his father.
“I knew that if I was ever going to come home and work with my dad and spend time with my dad and mom, it needed to be soon,” Karl said. “I had the chance to work with my dad for five years. I also had the chance to share my mother’s last years with her. Those were great years.”
Returning to Creston also gave Karl and Jan the chance to raise their children in a small community and gave them the chance to get involved in the community.
Community involvement
Karl said one of the biggest things he and Jan tried to do in Creston was make it a better place for people to live in than it would have been if they had not returned to Creston.
In fact, some of the accomplishments Karl is most proud of during his career with ISSB bettered the community.
“I’m very proud of some of the things we were able to do in the community,” Karl said. “Whatever I’ve done here, I couldn’t have done without Jan. As many people know, Jan’s involvement in the community has been significant. She’s been a wonderful partner in this time we’ve been in my hometown, not hers. And, she’s probably better known to people in the community and certainly more liked by people in the community.”
Karl and ISSB were instrumental in launching the Environmental and Spatial Technologies (EAST) program at Creston Community High School.
He learned about EAST at an economic development meeting and pitched the idea to then-CHS principal Todd Wolverton. From there, grants and various donations, including a donation from ISSB, helped kickstart the EAST program in the Creston schools.
Karl also helped devise a plan to make improvements at McKinley Park – a plan that is still being utilized and expanded upon by the Creston Parks and Recreation board.
"It is difficult to quantify what Karl has meant to ISSB and Creston," Snodgrass said. "Karl did not have to return to the area to take over leadership of the bank. He could have chosen to sell his share in the bank after his parents passed away. Instead, Karl took a personal risk and bought out his siblings’ interest in the bank. By doing so, he ensured that ownership of ISSB stayed local, and local ownership of community banks is a critical component to the success of small communities. Karl has always given generously of his time and his expertise in addition to providing financial assistance to a variety of projects that benefitted Creston."
At ISSB, Karl has helped expand the bank with the addition of a branch office in 2008.
“I’m very proud of the organization that exists now, and I guess I had a lot to do with making it what it is today,” Karl said. “I’m proud of the people we have and their ability and their support for each other and the way they support our customers. I think the staff now is the best staff that maybe we’ve ever had.”
Ownership
Karl and Jan believed the bank best served the Creston community by remaining locally owned and managed.
They formed an Employee Stock Ownership Plan (ESOP), which was launched in December 2010 and is transitioning ownership of ISSB to ISSB employees.
Currently, 20 percent of the stock ownership belongs to ISSB employees, and the Knock family will continue to sell its stock to the ESOP with a long-term goal of ISSB becoming 100 percent employee owned.
“I believe a community is better served by a bank that is both locally owned and managed. If my family’s involvement in this bank since the 1940s has been about anything, it’s been about that,” Karl said.
Karl said he was fortunate in his time at ISSB to work with Dave Driskell, who retired as president of the bank in 2013. Karl called Driskell his father’s “right-hand man” and one of the best bankers he’s ever seen.
Retirement
With their first grandchild due later this week or next week, Karl and Jan figure to spend plenty of time in retirement with their expanding family in Des Moines.
Jan retired from ISSB as vice president of marketing in 2013 and has been a member of the board of directors for 22 years. She will also continue in her role with the board.
They look forward to enjoying their love of travel and cultural affairs in the Des Moines area.
And, for Karl, he looks forward to reading.
“I see a title and I might buy it and put it on my shelf with the intent to read it sooner or later,” he said. “I’ve got a fair bit of those that were in the later column. So I’ve got some reading to do.”