Original article published in the Mower County Independent, Thursday, May 22, 2025. Reprinted with permission and gratitude.
By Gretchen Mensink Lovejoy
John Osterud had a gift.
Now it’s his legacy.
“He died December 31. That’s so like John Osterud. If he had died January 1, he would have had a whole other year left that he needed to live,” recalled Spring Valley resident Sue Kolling, who was fortunate to be one of the people who knew Spring Valley Home Federal Savings Bank founder Osterud, a man whose vast curiosity and entrepreneur’s spirit left a ledger of his indelible philanthropic enthusiasm for the people who surrounded him and the people who today inhabit his chosen hometown.
Kolling, a board member of the Osterud-Winter Trust, explained how Osterud lived and lasted beyond his years as a bene factor to the people of the Spring Valley, Wykoff and Ostrander area. “John Osterud founded Home Federal, and his daughter was Karen Winter. When John died, he left a legacy to Spring Valley in a $1 million trust fund. The fund was established in 1994, and since then, it has distributed over $1.9 million back into the community, while the $1 million remains intact – twice a year, money is distributed based on the earnings and allocations. Seventy-five percent of the earnings are to be used for Kingsland School District scholarships (currently totaling $925,000), Spring Valley’s historical society, Spring Valley Living, Spring Valley Cemetery, and the remaining 25 percent is allocated as discretionary funds. Primary consideration is given to organizations that provide emergency and dis aster relief in or within a 15-mile radius of Spring Valley and meet the federal tax exemption requirements of a 501(c)(3).”
Osterud’s biography was included in full in his obituary, reading that he left this plane on Dec. 31, 1993. “John Nicholas Osterud was born in Hurdal (near Oslo), Norway. His parents, John O. and Ingeborg Mitsund Osterud, came to America in 1901, bringing four children: Harold, 14; Agnethe, 12; Josephine, 10, and John, 2. They first lived in St. Paul, then moved to Barnum and settled on a small farm. After his father’s death in 1903, his mother moved her family to North Dakota to homestead a quarter section of land. They constructed a sod house, raised cattle, pigs and chickens, and planted 100 acres of wheat and flax and a large garden. With the nearest school 60 miles away, his mother employed a tutor for John. His first formal education began at age 11 when a school district was organized nearby. After five years of hard times, Mrs. Osterud decided to go back to her husband’s area where the Osterud family had first settled in 1861. She bought a tiny house in Spring Valley and worked for 10 cents an hour as a cleaning lady. John found work splitting wood, working gardens and milking cows. During his high school years, he found a job in Rochester as a dishwasher at the Miller Café, working 7:00 a.m. to 7:00 p.m. for $7 per week. A cousin helped him find work in the dining room of the Colonial Hotel-Hospital where he doubled his $35 a month salary by being adept at earning good tips. His job paid so well and he was so comfortable, he ignored his mother’s pleas to return home to attend school. Finally, she boarded the CGW train and came to angrily demand he return with her. He found the task of making up his school work a memorable ordeal, but also played on the basketball team and graduated in 1919. Other work included clerking at the Farmers Store and as mail clerk at the post office.”
His biography continued, “In 1920, John decided the banking business ‘appealed to me,’ and he began working as bookkeeper at First State Bank in Spring Valley. The job included mopping floors, dusting, shoveling coal, stoking the furnace, and clearing sidewalks. After nine years, he was assistant cashier. When the bank closed in 1929, he worked with his brother, Harold — who was a new auto distributor for Star & Durant – financing cars. He and good friend, Harry Washburn, formed W & O Finance Company. This led to the formation of Security Finance Corp., capitalized with $50,000 which he said brought them good ‘public notice.’ John then devoted all time to financing and insurance business. SFC owned and operated small loan companies in six area towns. In 1931, Osterud Agency, Inc., was formed to handle the insurance business. He then organized Minnesota Credit Company to make agricultural loans to farmers and dairymen. John was also general agent for the Guaran tee Mutual Life Co. of Omaha.”
His family life changed as he grew older. “John married Helen Howe, a pretty and talented woman also working in the field of banking. She shared full partnership with him in the business as well as their busy home and social life. Helen died in 1961 at their winter home in Florida. Daughter Karen was born in 1939, and died in March of this year (1993), a severe blow from which John never recovered.”
Business evolved prior to his marriage and becoming a parent, as the biography related, “In 1933, John contacted business as sociates and formed Home Federal Savings & Loan Assoc., later to become Home Federal Savings Bank. He described his 43 years as a director and controlling officer as ‘a labor of love.’ Home Federal opened with capital of $2,620 and today lists assets of over $400 million, with offices in six cities.”
John’s education is a remark able story in itself. “From modest childhood beginnings, he continued as an adult with many correspondence and home study courses in administration and insurance; completed the 5-year Chartered Life Underwriters course; was a graduate student for his Master of Science degree at Wharton College, U of PA.; studied at various colleges to earn his Bachelor’s of Law degree, and in 1940 was admitted to practice before the U.S. Supreme Court.”
It went on to note, “John, Helen and Karen traveled extensively around the world. They maintained a winter home in Florida and the cottage in Barnum where they entertained family and friends for many fruitful and fun fishing experiences. Although John ‘retired’ in 1977, he continued life apace – serving on Home Federal board, enjoying winters at his Florida condo, summer fishing with grandsons Mike and Scott at Barnum, and his office apartment in Spring Valley. A few years ago, John moved to Madonna Towers, where he cultivated a wide friendship with all the residents and staff. He maintained a voluminous correspondence, and kept in touch by phone with numerous friends…his boundless interests, gracious hospitality, and generosity in sharing his blessings will forever be re membered by family and friends.”
Osterud’s funeral at Our Savior’s Lutheran Church in Spring Valley was held with casketbearers whom he likely knew in business and friendship, including Roger Weise, Keith Hagen, Gor don Dathe, James Gardner, Darrell Freeman and Lee Himle. He now rests in the Spring Valley Cemetery on the southeast side of Spring Valley.
Home Federal officially became an acquisition of Alerus Financial in December 2024, rounding out 90 years of home town banking service to the Spring Valley community. The Osterud-Winter Trust carries forward his name and his dedication to his neighbors through the initial $1 million investment tucked away in 1994. Kolling outlined that “there are three trustees…one representing the city, one the school, and another, the ministerial” and that a total of 23 trustees had served over the past 30 years, overseeing the portfolio managed by U.S. Bank Private Wealth Management. “We give grants two times a year…funds are disbursed twice a year, in June and December.
The foundation distributed $14,000 to the Kingsland School District for scholarships in the second half of 2024, as well as $1,750 each to the Spring Valley Cemetery Association, Spring Valley Living, Spring Valley Public Library, and the Spring Valley Historical Society. Discretionary grant awards were given to the Spring Valley Ministerial Association — $1,100 for Senior Dining, $500 for the backpack food program for children, $1,000 to the Spring Valley food shelf, $300 to the Spring Valley Historical Society for new brochures, to the Spring Valley Fire Department for one set of turnout gear at a cost of $3,800, and $300 to the Spring Valley library for musical instruments.
Kolling observed that the trust’s mission is not to interfere with the organizations’ intended projects, but instead, to under write them. “The reward is to see things happen that might not otherwise be possible. We don’t want to be a part of it – we want to be only the source. It’s wonderful to see the fire department have equipment, the library to have what it needs. The library and historical society and cemetery have all been struggling over the past years, but they know that they have a check coming in twice a year. The grant process is not a complicated process…it has to be a non-profit organization. This is probably the best committee I have ever been on because we give out money to people that need it, to help people launch projects. The Spring Valley Area Community Foundation (SVACF) is the people’s foundation, but this is a specific person’s foundation.”
She went on to state that being a trustee of Osterud’s investments has returned dividends unforetold. “It’s a very rewarding role to fill because I worked with John Osterud…I knew John Osterud. Not everybody did. A number of us had the privilege of working for him. In fact, he’s the first honoree on the Kingsland Wall of Fame. John was an amazing per son. This is a wonderful gift that keeps on giving. What a wonderful legacy.”
The 2025 midyear grant application deadline is May 28, and because Kolling’s term as a trustee has recently expired, re quests for grant applications and information may be directed to Steve Himle at shimle@mchsi.com, Scott Mul holland at smulholland78@hot mail.com, or Steve Heusinkveld at cows@cheerful.com.
Courtesy of the Mower County Independent, 135 E Main St. LeRoy, MN 55951, (507)-324-5325
