I AM A COMMUNITY BANK.
by Tom Wilbur
I am a community bank. Some of you recognize me, because you’ve chosen to do business with me. I’ve generally been around these parts a while, and more often than not, have a history of service to our community. I’m confident you’ve stopped by one of my facilities in the area, or seen an advertisement about me in the local newspaper. I’d like to let you know, that community banks like me, create value in our community. You probably already know that, but let me share some things with you.
As a community bank, my team is mostly made up of neighbors and friends of yours—people who have the same aspirations and dreams that you do. They want to raise a family here. They have an interest and a passionate commitment to improving the quality of life in this area. They are homeowners. They are dads and moms, grandmas and grandpas, sons and daughters. People on my team are board members in local non-profit organizations, often involved in outreach to feed people who are hungry in our community, and they sing in the local church choir. Many of you recognize me as an entity that supports your little league baseball team, or helps our area with volunteers who work with seniors. I’ve walked the highways picking up trash, and I donate money to area arts, civic, and education programs.
If you want to meet the President, Vice President, or Manager of my community bank—you can generally walk in and say hello. Any of these folks will be happy to see you, and listen for opportunities to serve and help you. A community bank is generally a small business—a small business trying to grow in direct partnership with our town, improving the quality of life for everyone. As a partner, we depend upon building lasting and ongoing relationships.
As a community bank, I don’t have huge departments filled with investment brokers, attorneys, hedging specialists or world money market traders. I don’t have government lobbyists on my payroll, and wouldn’t know which end is up in foreign investments. In fact, most of what I do relates to supporting the things you do, as a consumer or with your business.
Like other community banks, many of the services we provide come with little or no charge. We offer checking accounts, at no charge. We never charge a client to meet in person with one of the members of our retail team, to make a deposit, cash a check, or make change. There are no upfront costs in meeting with one of our loan officers, and discussing the possibilities of getting a loan for your next home, your next car, or evaluating the pluses and minuses of a business idea you have. I counsel older folks to ensure that their money is safe and protected from harm, and that they will get a reasonable return on their investment. I talk to kids about the value of saving money, and encourage them with programs supporting that process. I’m a community bank. That’s what I do.
At my community bank, we have a website, and you can often connect with me on Facebook or Twitter. Most community banks like me have on-line banking and generally, a safe and efficient electronic bill payment service, for very little cost. And at my community bank, there’s not a $5 charge to use debit card each month. I don’t have a charge for a debit card, at all.
Somewhere along the way, Congress and regulators have decided that community banks like me are in the same basket of culprits directly involved in the banking crisis of the past few years. Somehow, we’ve been joined together by association. The media calls large investment houses “banks”, and that’s not actually a true statement. Most investment houses were not regulated by the banking system, but were regulated by the securities and exchange commission, and were given latitude to grow using much less of their own capital as a percentage of assets, as community banks are required to hold. These investment organizations took billions of dollars of government bailouts, and failed to serve our nation’s financial system with the same level of integrity and trustworthiness as community banks did. They were highly leveraged, and carried too much risk. Their oversight was flawed.
There are also very large banks, which came under the umbrella of banks deemed to be “too big to fail”. And, in the time of crisis, a cry went out that these banks should also take government bail-outs to help alleviate their ills. Congressmen and women spouted that these huge banks should be reduced in size and scope so this would never happen again. But the most recent policies of our current President and Congress (by way of regulations like the Dodd Frank Act) has been to place thousands of pages of rules and regulations on every bank in this nation, and the net effect of their actions is that “too big to fail” banks— are getting even bigger.
In the United States today, four behemoth financial institutions control 53% of all of the assets held in banks. Community banks are getting crushed by regulations so onerous, that federal banking agencies have closed hundreds of community banks all across this country, just like me, in the past couple of years. Often times, the community bank that’s being closed was one of the key lifelines to banking services in the community being served. Many community banks that got into a bind were not offered any capital support by our government, because community banks were “too small, for big government to care”.
Today, it’s not unusual to have a home loan recipient sign and initial their name fifty times or more, to secure a home loan. As a community banker who used to look people in the eye, shake hands and give folks a loan they needed, I’m a little taken back. The process to get a home loan has become incredibly difficult, but it’s doable in working with a professional—like the people on our team.
Community banks like mine provide funding for area people to get loans, staying in the boat as major market players like Fannie Mae and Freddie Mac place restrictions on lending so tight, few people can qualify. There are more outreach programs for home lending today than ever before at the Federal level, but few of these federal programs and announced initiatives actually reach people or the businesses who need them the most, due to all the restrictions involved. Fortunately, the banking professionals who work on loans in my community bank are committed to serve, in any way they can. It’s tough, but we’re getting it done.
At my community bank, I have money to lend. And I am ready to do so. But national surveys taken recently say that most businesses are afraid to borrow more and invest in their businesses until they gain a better understanding of what lies ahead from our nation’s government—for taxes, for health care, and for increased potential regulations in commerce and business. As a community bank, I understand, because I’m a small business, too.
I am a community bank. I am not a credit union, but I serve the same functions in helping people. The difference is that the profits of my business create income that is taxed, and which support government services. Credit unions are non-profit because they are supposed to have like membership, and the bottom line is that credit unions do not pay taxes. Depositors of credit unions are not insured by FDIC,
I am a community bank. With the bank’s funds, we can stand behind the loans we commit to make, unlike a mortgage broker. Mortgage brokers always sell your loan to someone else—that’s what they do. Thousands of mortgage brokers disappeared following the real estate crisis of the mid-2000’s. We community banks are here to stay. Our capital and funding comes from this area, and we put the money back into use, in this region.
I am a community bank. I am not an investment house, or banking giant who thinks of you as an account number, has a call center in some distant land, and has no idea who you are. I know your name, where you live, and I’m here to serve you and your family—however I can. I’m here to respond to your call. You know me, and I know you.
I am a community bank, and I appreciate our relationship.
I am a partner with you in making our community a better place.
Thank you, partner.
Tom Wilbur is President/CEO of BANK VI in Salina, Kansas. He is a graduate of the University of Kansas, a lifelong resident of Salina, a regular editorial contributor to newspapers and magazines, and a public speaker. On New Year’s Eve, his band—the Last National Band, will play its final gig, after 32 years together—the proceeds of which are going to Big Brothers, and Hospice of Salina. He is active with various civic and church organizations, State and regional banking organizations, and he can be contacted directly at [email protected].