When Tom Ogaard stepped into the role of president and CEO of Native American Bank (NAB) in 2013, the institution was at a critical juncture. Established more than a decade prior through the acquisition of the $18 million-asset Blackfeet National Bank in Montana by several Native American tribes, NAB had navigated a period of significant challenge. For several years, the bank operated under a formal agreement with the Office of the Comptroller of the Currency (OCC) to address concerns regarding unsafe and unsound banking practices. Simultaneously, it was actively seeking to enhance its outreach and services to the very communities it was chartered to serve. Ogaard, a seasoned banking professional with a career that began at the age of 22, brought a wealth of experience to this complex task.
NAB’s mission to serve rural Native American populations is inherently complex, with physical distance posing a significant hurdle. However, Ogaard recognized the profound importance of personal contact, particularly given the historical distrust of financial institutions within many Native communities. NAB’s strategy has consistently emphasized investing in financial education to bridge this divide. "I knew, having worked in Indian country in my past, what it was going to take to establish a foothold and move things forward," Ogaard stated. "For Native American Bank to be successful, it’s about building relationships. And in Indian country, it’s face-to-face." This philosophy has guided NAB’s growth and its commitment to fostering trust and understanding.
A Decade of Strategic Growth and Transformation
Under Ogaard’s leadership, NAB has undergone a remarkable transformation. The bank has evolved into a $400 million-asset community development financial institution (CDFI) with a presence in Colorado, Montana, and Washington state. A pivotal moment in this turnaround was the termination of the formal agreement with the OCC in 2016, a testament to the bank’s renewed operational stability and commitment to sound banking practices. This period has been marked by rapid expansion, with Ogaard’s core objective of meeting customers face-to-face remaining a driving force, even in areas where geographic isolation is extreme. For instance, one NAB branch serves the Blackfeet Reservation in Montana, a vast area encompassing roughly 10,000 tribal members, a region larger than the state of Delaware. This commitment to accessibility underscores NAB’s dedication to its mission.
Ogaard’s influence extends beyond NAB’s operational sphere. He recently assumed the chairmanship of the American Bankers Association’s (ABA) Government Relations Council. In this capacity, he is tasked with providing policy guidance to the association’s leadership, representing the interests of all banks, and advocating for the broader banking industry agenda. Navigating policy advancements during an election year, Ogaard acknowledged, presents its own unique set of challenges. "I’m going to keep an open mind about what it is that we can get done," he remarked, signaling a pragmatic and adaptable approach to advocacy.
Early Influences and a Lifelong Banking Career
Tom Ogaard’s journey into the world of finance began with a strong emphasis on financial responsibility instilled by his parents in Crookston, Minnesota. The expectation that he and his siblings would contribute to their own private Catholic high school tuition through summer jobs provided an early, practical lesson in financial planning and the value of hard work. "At the time, you’re thinking, ‘Wow, all this money I’m making over summer is going to school,’" Ogaard reflected. "But it prepared us when we were off to college: We had to find our own way to pay."
Ogaard’s family background was not rooted in banking; his father was a surveyor and city administrator, and his mother was a homemaker. After graduating with a finance degree in 1978, he embarked on his banking career as an assistant controller for a thrift bank in Detroit Lakes, Minnesota. His aptitude was quickly recognized, and he was promoted to mortgage servicing manager on his very first day. "Right out of the get-go, they gave me an office. And I was like, ‘Okay, I have a staff,’" he recalled. "I was a 22-year-old kid, trying to manage our mortgage area."
This early experience set the stage for a rapid ascent through the banking ranks. By the age of 24, Ogaard was involved in opening a new branch for a different bank. By 28, he had been appointed regional manager overseeing more than half a dozen Minnesota banks. His tenure at Citizens First Bank in Illinois, where he served as EVP and later president and CEO, further solidified his reputation as a leader capable of guiding financial institutions through turbulent economic periods. His experience in helping institutions navigate the Great Recession brought him to the attention of NAB’s ownership, who were seeking strong leadership to address the bank’s existing challenges.
Navigating Regulatory Hurdles and Fostering Community Development
Ogaard’s arrival at NAB was part of a strategic effort to rebuild the bank’s operational foundation and address the safety and soundness concerns raised by the OCC. He spearheaded the development and execution of a new strategic plan, which proved instrumental in the OCC’s decision to terminate its enhanced oversight in 2016. This period also saw NAB successfully raise millions of dollars in new capital, a crucial step in stabilizing and expanding its operations. Under his guidance, the bank’s staff grew significantly, from just 16 employees at his inception to over 60 employees today. A notable expansion milestone was the launch of a new branch in the Tulalip Reservation in Washington state last year, further extending NAB’s reach.
"I never thought I would come to a bank this small at the time," Ogaard admitted. "It was just under $60 million and I had just left Citizens, which had 21 branches, all of which were as big or bigger than this one bank. And I spent 25 years of my career at midsize regional banks, so I had a lot of larger bank experience, but I knew I could get my arms around this bank." This candid assessment highlights his willingness to embrace a challenge and his confidence in his ability to effect meaningful change.
NAB’s roots trace back to 2001 when 21 tribal investors founded its parent company, Native American Bancorporation. As a certified CDFI, the bank’s core mission is to stimulate economic development in areas historically underserved by traditional financial institutions. This mission is particularly critical given the disproportionately high poverty rates experienced by many Native American communities. According to U.S. Department of Agriculture data, among the 34 U.S. counties with high concentrations of American Indians and Alaska Natives, the average poverty rate for the total population stands at 31.5%, while for the Native American population, it rises to 40.5%.
This socio-economic landscape necessitates a banking approach that deviates from traditional models. "While we offer a lot of the same traditional products, we don’t necessarily use traditional means to assess whether or not, for instance, a particular credit is creditworthy," Ogaard explained. "On the commercial side, we do everything that you would do at a typical bank, but we also look at other things to mitigate risk. It could be that we look for government guarantees… and we have become experts at how you not only structure particular credits, what it looks like in the capital stack, but also how to relate to the borrower we’re talking to." This nuanced approach allows NAB to extend credit and support to individuals and businesses that might be overlooked by conventional lenders.
Approximately 95% of NAB’s loans are directed towards Native- and tribal-owned companies, with nearly 90% of its commercial lending supporting projects in underserved areas. Recent initiatives include providing crucial capital for an opioid treatment facility on the Turtle Mountain Indian Reservation in North Dakota and financing a grocery store in northern Minnesota. In both instances, NAB’s interventions addressed critical needs, eliminating the necessity for tribal members to travel 70 miles or more to access essential services.
The challenge of physical distance in serving rural populations is a recurring theme for NAB, leading Ogaard to humorously liken his team’s travel to the movie "Planes, Trains and Automobiles." Yet, this emphasis on personal interaction is paramount in overcoming the existing distrust of banking institutions within Native communities. NAB’s investment in financial education programs, which cover essential topics like opening checking accounts and understanding loan processes, aims to build this trust. Furthermore, the bank is actively exploring technological solutions, such as interactive teller machines, to provide customers in remote areas with direct access to bank employees, even without a physical branch. "It’s a different niche and business model that we have to try and serve a population that’s woefully underbanked and has a difficult time finding access," Ogaard articulated, underscoring the unique challenges and dedication inherent in NAB’s work.
Advocacy and the Future of Community Banking
The CDFI sector, including institutions like NAB, has faced increased scrutiny in recent years. Proposals to curtail the U.S. Treasury Department’s CDFI Fund have sparked debate, with lawmakers advocating for sustained funding. Ogaard highlighted the critical role of the CDFI Fund, noting that certification requires institutions to conduct at least 60% of their business in low- to moderate-income areas. "The CDFI Fund is really important," he stated. "And quite honestly, funding it at $325 million or $350 million is nominal in the entire federal budget, but it helps the banks like ours, where we get a technical assistance grant or a financial assistance grant to put together programs where we may hire a consultant, or we may put somebody on staff that is going to help us with those operating costs that we might not otherwise be able to do." This funding is essential for NAB to implement programs that support its mission and operational capacity.
As chairman of the ABA’s Government Relations Council, Ogaard is at the forefront of discussions on a wide range of banking industry policy priorities. The council’s objective is to consolidate diverse banker perspectives into a cohesive and actionable set of policy goals. Ogaard expressed optimism about potential progress, particularly regarding regulatory reform. "Some of what we’ve heard from CFPB, from the Treasury Department, from the regulators themselves, has been very promising about reducing the regulatory burden, particularly for small banks," Ogaard observed. "So has some of what is being advocated in terms of moving the metrics up so that when banks hit a $500 million- or a billion-dollar level, you’re not stressed with additional reporting and other regulatory and compliance activities. I think that’s a pragmatic approach." This focus on reducing regulatory burdens, especially for smaller institutions, could have a significant positive impact on NAB’s ability to serve its communities effectively.
Ogaard’s leadership at Native American Bank exemplifies a successful revitalization effort, marked by strategic vision, a deep understanding of community needs, and an unwavering commitment to relationship building. His dual role in leading NAB and shaping national banking policy underscores his dedication to fostering a more inclusive and accessible financial system for all.
