“All we have to sell is service.”
Charles Johnson Sr. made that statement the motto of the Root River State Bank in Chatfield and today, his son, Charles Johnson Jr. carries on his father’s legacy.
It’s been 160 years since the Root River State Bank in Chatfield, Minn., opened its doors. In that time, it’s been owned by three different families, first by J.C. Easton who established the bank in 1856. In 1905, it exchanged hands and was incorporated by George H. Haven. He then passed it down to his son, George A. Haven.
In 1916, Hiram Johnson purchased the First State Bank of Fountain. His son, Charles Johnson Sr. worked with him there after he graduated from college and eventually became the owner. In 1966, George A. Haven decided that it was time for him to sell the Root River State Bank and approached Charles Sr. to see if he was interested. He was, and the rest is history.
Charles Sr. was kept busy running both the First State Bank of Fountain and the Root River State Bank of Chatfield. While both were owned by him, they were run separately. Yet, he managed to stay involved in the day-to-day workings of each one.
Around the age of 14 or 15, Charles Sr.’s son, Charles Johnson Jr. began working at the Root River State Bank, cleaning and organizing the store room. “When I wasn’t in school, I was at the bank,” he said. He graduated from Chatfield High School in 1980 and attended the College of St. Thomas, where he earned a Bachelor of Arts with a concentration in finance. After college, he moved back to Chatfield and began working at the bank full-time with his father.
Over the next 16 years, Charles Jr. gradually took over more responsibilities at the bank as his father’s health declined. When Charles Sr.’s health got to the point that he knew it was time to resign, he penned a letter which Charles Jr. still keeps in his office in a protective sleeve.
In the letter, he said about his own father and the first Johnson to own the Root River State Bank, “Hiram Johnson is the best banker I’ve ever known.”
Charles Sr. appointed his son, Charles Jr. as president of both the Root River State Bank and the First State Bank of Fountain, writing, “Chuck will be president of both banks, along with the tremendous staff at both banks.”
Charles Sr. then assumed the title of Chairman of the Board and President Emeritus. He continued to work at the bank in those capacities until his death in January of 2009.
Charles Jr. still remembers the day that he asked his father if it was okay for him to take over his father’s old office, as he was no longer using it. Charles Sr. looked at his son in surprise and said, “I thought you already had!” Today, Charles Jr. still does business at his father’s desk.
Running the bank was a family affair. Charles Jr.’s mother, Patricia Johnson was his father’s business partner and is still on the board of directors for both of the family’s banks. She was awarded the title of Pioneer Banker by the Minnesota Bankers Association in 2011, an award that is only given to those who have been in the banking business for over 50 years. Eleven years prior to that, in 2000, Charles Sr. had been given the same award and his plaque is displayed in his son’s office.
“I happened to be the chairman of the Minnesota Bankers Association at the time and so I got to give my mother her award,” Charles Jr. commented. The event was made even more special because she didn’t know she would be receiving the award.
The Root River State Bank has the honor of being the oldest bank in Minnesota. A big celebration was held to mark its 150th anniversary in 2006. That year was a momentous year for the Johnson family, as it also marked Charles Sr.’s 80th birthday, 100 years of the Johnsons being involved in the First State Bank of Fountain, and 40 years of Charles Sr. owning the Root River State Bank of Chatfield. “It was a big year and a big celebration,” Charles Jr. remarked.
The Root River State Bank is primarily an Ag bank. “It’s been our focus for years, and we’re not looking to make any changes,” Charles Jr. remarked. “We’ve been though good times and challenging times with farmers. We’ve stuck with them no matter what and have been right there with them through it all.”
“We try to treat people like family and make them comfortable,” Charles Jr. said about his customer service philosophy. “It’s a family-run business, and we use the golden rule.” He pointed out that a lot of the process of banking is tied up with trust, and so he strives to build that with his customers.
Charles Jr. knows very well that without a good staff, the bank wouldn’t be where it is today. “You’re only as good as your employees. Someone has to run point, but it definitely takes a good team to run a business,” he commented. “You want to surround yourself with good people. I don’t have to have every answer because we all work together for a common goal.”
Charles Jr. also believes strongly in giving back to the community by making good loans, treating people properly, re-investing in the company, giving good interest rates, and more. “It’s the right thing to do. If the community doesn’t thrive, the bank won’t either,” he stated. Whatever the community has going on, be it school, special events, etc, Charles Jr. knows that “the bank better be involved in it.”
Charles Jr. and his wife Kathleen have three grown children, all of whom have worked at at least one of the banks their father runs. “The hope is that it (the bank) will stay in the family, but the jury is still out on who might be interested,” he laughed. “Throughout the generations of my family, no one has ever pushed the next generation into it, and I won’t either.”
Although 160 years is a big milestone, Charles Jr. doesn’t plan on having a celebration at the bank this year. “It’s going to be business as usual. We intend to be here for many more years serving the needs of Chatfield, Fountain, and the surrounding areas,” he said.