Chairman of the Board of Directors Mike Berkley marks 55th year in banking
Bennington State Bank
In 1887, the Bennington State Bank became one of the first banks chartered by the State of Kansas.
What started as a single-branch operation in the small town of Bennington has grown these past 135 years into an expansive operation with nine locations in eight Kansas communities.
While that growth story may be impressive, President and CEO Darren Gragg said it has also been with intentional focus on customers, employees and communities. The bank, he said, will never grow beyond its means to do business face-to-face and to develop deep-seated relationships in the communities it serves.
“It’s about the value of the conversation,” Gragg said. “Most banks want to get that loan booked and move on to the next one as fast as they can. We’re the opposite. The quality of those conversations and our willingness to spend the time is what’s been important to us.”
That model speaks to the bank’s legacy of being locally owned and operated for its entire 135-year existence. It also speaks directly, Gragg said, to the lessons taught for 55 years and counting by Mike Berkley.
On Dec. 1, 1967, Berkley and his seven siblings purchased the Bennington State Bank from their parents and uncles, who had owned the bank since 1945. The family tapped Berkley to run the operation, though he initially agreed to do so under the condition that he’d only be there a few years.
“I had just gotten out of law school and was working in Denver for a CPA firm,” Berkley recalled. “I liked it in Denver, and I was planning on getting a CPA certificate. My plans were eventually to come to Salina and practice law.”
Fifty-five years later, while now retired, he chairs the bank’s board of directors. He never practiced law, as banking became his lifelong business endeavor.
When Berkley took control of the bank in '67, it had assets of about $5 million. Today, total assets are approaching $1 billion. Through it all, the Bennington State Bank has maintained strong capital and holds a 5-star rating by Bauer Financial, the nation’s leading independent bank rating firm.
Berkley and team first expanded in 1986, adding a branch in Minneapolis. Then in 1989, they opened their first Salina branch on S. Ninth Street and moved the bank’s charter to Salina. They opened a second Salina location in 1995 on S. Ohio Street. The Wamego branch opened in 2004, followed by Sylvan Grove in 2010, Lucas in 2011, Abilene in 2021 and Wichita in January of this year. The bank has also significantly expanded its Trust & Wealth Management Division over the past eight years to over $380 million in assets under management.
Berkley attributed the bank’s growth and ongoing success to investing in people and communities. He said that while the bank’s portfolio may have included more risk than other banks would tolerate, he’s always seen the value in erring on the side of helping his fellow community members.
“Seeing somebody who was maybe turned down at other banks go on to be successful, that’s very rewarding,” Berkley said. “I think our customers and communities realize that we’re going to work with them. Just because they have a bad year or two, they know we are not going to cut and run.”
Gragg credited Berkley with also having the foresight to retain talented employees by investing in their wellbeing. In 1978, about 10 years into his ownership, Berkley instituted an Employee Stock Ownership Plan (ESOP) that allows staff members the opportunity to own shares in the bank and participate in the bank’s financial success. This program is completely bank funded on behalf of participants.
“In my heart, one thing that I always felt wrong about was when you would see a retirement picture where the person gets a plaque and a thank you for 20 years or more of service,” Berkley said. “And you know what, that kind of bothered Mike Berkley. So I promoted that we start the ESOP.”
Gragg said that in 2022, more than 100 participants owned Bank stock through the program, which owns 10% of the bank. Additionally, in 2016, the bank began a program to sell stock directly to an employee. Today, 10 employees together own more than 3% of the bank, outside the ESOP.
With 135 years now in the books and a 55-years-and-counting career for its chairman, the Bennington State Bank has history on its side.
“The key to the future is to not outsmart your common sense,” Gragg said. “Our goal is to continue to improve on the foundation Mike has put in place while staying true to the principles that have made BSB successful.”