HOMETOWN CONNECTIONS

New Community Bank of Owatonna (CBO) President Derek Skala has built a career around hard work and a relentless determination to succeed, making him the perfect candidate to bring CBO into its next chapter.

The Owatonna native was raised on a dairy farm and excelled in wrestling, winning a national title during his collegiate career at St. Cloud State University, and has since “built his banking career through progressive leadership roles with experience in credit administration, and relationship management, along with a strong specialization in agricultural banking,” according to his CBO resume.

“I’m honored to join CBO. I know the value of local, community banking and the value of Owatonna in general, being from here and seeing this place grow from where it was when I was young to where it is today,” said Skala. “I’m excited to be able to help people chase their dreams. Whether it’s a home, a business or their farm… all that fun stuff has always interested me. To be able to help people grow in their own life gets me really excited, especially being able to do it in my hometown.”

Skala’s transition to CBO president comes after beginning his career working in financing as a loan processor with Wells Fargo and other stops working in agricultural insurance.

Most recently, he served as the vice president of credit for Central Farm Service in Owatonna.

However, the opportunity to join CBO was something he knew that he couldn’t pass up.

“You know some people locally that you grow up with and things get mixed into discussions. I don’t even know how long we were talking about it. I decided to take the leap. I don’t want to call it a challenge, but I’m excited to stay local and take on the opportunity,” said Skala.

He’s taking over an institution that has become a rarity in the banking industry. Community Bank is the only locally owned bank in Owatonna and one of only a few left in Minnesota. The local bank was founded in 2002 by a group of local bankers and business leaders who joined forces to bring about “much needed change to Owatonna’s banking landscape.”

Today, the bank has grown to nearly $70 million in assets, while remaining solely focused on the mission created by its founders.

For Skala, life on the family dairy farm and time spent in athletics prepared him for his career.

“It’s part of growing up on a dairy farm. That alone is hard work. No days off – morning, night and everything in between. All the sports – football, wrestling and baseball – all helped too, along with my coaches. I still have all my friends, and I have an awesome wife that supports me and pushes me. I grew up around hard work and always giving your best. Seeing your dad, family members and friends do that makes you think, ‘If they can do it, so can I,’” said Skala.

CBO’s Board of Directors is excited about Skala’s hometown connections. “He has a strong local connection to Owatonna having been born, raised and involved in the community,” said Gregg Draeger, chairman of the bank’s board. “He has a long history of service to the community and will bring additional business expertise to our bank.”

Skala’s outlook for the future of CBO is growth; both in the company and himself.

“I’m coming in and continuing to grow in every aspect of this business. I’ve been working with customers and staff, learning everyone’s roles… This is a long game. I’m going to continue to learn from [CBO CEO] Steven Grams. He understands this business from top to bottom. I also get to work with an awesome board of directors that want to see me grow with this business,” said Skala.

DEREK SKALA AT GLANCE

Community Bank’s new president

• Grew up on dairy farm outside of Owatonna
• State high school wrestling champion in 2006 (160 pounds)
• 2006 graduate of Owatonna High School
• Two-time All-American wrestler at St. Cloud State University (184 pounds)
• Purchased Reggie’s Brewhouse in 2023
• Named president of Community Bank in 2026