Reaching 100 years is a milestone. Sustaining relevance over that time is something more.
For many community banks across South Dakota, that raises a familiar question: what does it take to remain relevant across generations of customers, employees, and leadership, especially as the environment around you continues to change?
BankStar Financial’s story offers one answer. Not as a blueprint, but as a series of decisions that will feel familiar to bankers who have faced similar moments.
The Decisions That Define a Bank
At certain points, every community bank encounters the same set of questions.
Do you stay the same to preserve what works, or grow to keep serving customers whose needs are evolving?
Do you hold firm during difficult cycles, or pull back to reduce risk?
Do you invest ahead of demand, or wait until change forces your hand?
BankStar Financial has faced each of these decisions over the past century. During the agricultural crisis of the 1980s, when pressure across rural economies was mounting, the bank chose to stay engaged with its customers.
“We stood by customers and they stood by us. Jointly navigating the uncertainty of that time ultimately led us to being stronger together,” explained Chuck Hegerfeld, former CEO.
Years later, a different kind of pressure emerged. Customers were growing. Operations were expanding. Lending needs were increasing beyond what a single-location bank could reasonably support. It is a moment many community bankers recognize. Growth can strengthen your ability to serve, but it can also test the culture and identity that made you successful.
BankStar chose to expand.
The move into Brookings, and later Volga, and the transition from Corn Exchange Bank to BankStar Financial in 2001 were not about scale for its own sake. They were about continuing to meet customer needs without forcing those customers to look elsewhere.
More recently, another decision point arrived unexpectedly. After the 2022 derecho significantly damaged the bank’s historic Elkton building, the path forward was not automatic. Rebuild, relocate, or consolidate.
BankStar rebuilt.
That decision was not only about a facility. It was a signal to the community that the bank’s long-term commitment had not changed.
“That decision was about showing our original community we didn’t forget where we came from, explained John Heylens, Market President of Elkton and Volga.
Growth, Without Losing the Core
Growth is often where community banks feel the most tension. Too little, and you risk limiting your customers. Too much, and you risk losing what made you distinct. BankStar’s growth has been measured against that balance.
When Chuck Hegerfeld joined the bank in 1991, it operated from a single location in Elkton with less than $15 million in assets. As he transitioned from the CEO role, the bank had grown to nearly $340 million in assets across multiple locations.
Growth like that does not happen by accident. It reflects a consistent set of choices about when to expand, how to expand, and what not to change in the process. One thing that has remained constant is local decision-making. Lending decisions are still grounded in an understanding of South Dakota’s agricultural economy, local industries, and community dynamics. That knowledge allows for flexibility when conditions tighten and reinforces the bank’s role as a trusted advisor.
Leadership Transitions That Matter
If growth tests a bank’s strategy, leadership transition tests its foundation. Many community banksacross the state are navigating, or preparing for, generational transitions. These moments carry risk. Not because everything changes, but because the wrong things might.
BankStar’s leadership history stands out for its continuity. With only five presidents over its lifetime, the organization has benefited from a long-term perspective that extends beyond any single tenure. As Chuck Hegerfeld steps back after decades of leadership, incoming President and CEO Don Greiner takes on that responsibility at a pivotal moment.
“It’s an honor I don’t take lightly,” he says. “Great customers, employees, and management have made this a wonderful organization to bank with and work for. My goal is to carry that forward,” said Don.
His approach is not centered on reinvention. It is centered on continuity with intention.
“It’s important for me to remember where we came from and not to lose sight of that as we grow into the future,” he notes. “That history will always be part of
the formula when guiding decisions.”
At the same time, he recognizes where adaptation is necessary.
“Customers expect flexibility in how they engage, whether in person or digitally, and we must meet those expectations without losing their core identity.”
Operating in a Changing Environment
BankStar’s ability to navigate change has not happened in isolation. Like many community banks that have stood the test of time, part of its long-term success comes from knowing when to rely on others.
Today’s operating environment presents challenges that are larger and more complex than any single institution can address alone. Regulatory demands, technology investments, and shifting customer expectations continue to reshape the industry.
For BankStar, responding to those challenges has included a deliberate commitment to industry engagement.
That is reflected in the leadership of Market President Julie Puetz, who serves as Treasurer and Secretary on the board of directors for the Independent Community Bankers of South Dakota. Her involvement is not separate from the bank’s strategy. It is part of it.
As Puetz explains, “A single community bank cannot navigate regulatory, legislative, and industry challenges alone. But when we band together, we become a collective voice in Pierre and in Washington.”
That perspective aligns with the same long-term thinking that has guided BankStar’s growth and decision-making over time. Just as the bank expanded to continue serving its customers, it also invests in relationships across the industry to ensure it can continue operating effectively in a changing environment.
Through that collaboration, BankStar gains access to shared insight, advocacy, and expertise that strengthen its ability to serve locally.
“We are a network of bankers who can share stories, offer advice and sometimes resources,” Puetz notes, underscoring the practical value of those connections.