PROUD TO BE A COMMUNITY BANK
We at First State Bank are proud to be a strong community bank dedicated to supporting the local economy. Community banks play a critical role in the US banking system and are particularly important in rural and small metropolitan areas. Our presence in the community allows us to focus and enables us to develop and maintain relationships with customers in a way that large finance companies, internet lenders, and large banks without a deep local presence cannot. Through these interactions, we can get to know our customers and their operations personally and can use that knowledge to better evaluate credit risk. Statistics show that community banks have 3 times the approval rates on small business loans than the big banks.
Community Bank Advantages
- Community bank officers are typically deeply involved in local community affairs, while large-bank officers and internet lenders are likely to be detached physically and emotionally from the communities where their branches are located.
- Many community banks are willing to consider character, family history, and discretionary spending in making loans. Megabanks and internet lenders, on the other hand, often apply impersonal qualification criteria, such as credit scoring, to all loan decisions without regard to individual circumstances.
- Community banks offer nimble decision-making on business loans because decisions are made locally. Megabanks have much more bureaucracy to navigate before getting a decision.
- Because community banks are themselves small businesses, they understand the needs of small-business owners. Their core concern is lending to small businesses and farms. The core concern of the mega banks is corporate America.
- Community banks focus attention on the needs of local families, businesses and farmers. Conversely, many of the nation's megabanks are structured to place a priority on serving large corporations.
- Community banks are four times more likely than large banks to have an office in rural counties. More than 1,200 US counties–with a combined population of 16 million Americans–would have severely limited banking access without community banks.
- Although small banks accounted for just 22% of all bank lending in America in 2014, they held 51% of all small-business loans and 77% of all agricultural loans, according to a study from Harvard University.
We are proud of our 119 year heritage of community support, and are equally pleased to be supported by our communities.
Previous Chairman's Corner Comments:
Chairman's Corner 07/14
Chairman's Corner 06/12
Chairman's Corner 01/12
Chairman's Corner 06/11
Chairman's Corner 04/11
Chairman's Corner 04/10
Chairman's Corner 11/09
Chairman's Corner 04/09
Chairman's Corner 12/08
Chairman's Corner 10/08
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