For the 49 community banks celebrating landmark anniversaries this year, it’s been an eventful tenure. They’ve been through a pandemic or two, multiple recessions, one Great Depression, two World Wars and, for one of them, even the Civil War.
While their pasts are impressive, these banks have their eyes firmly on the future, never mind the competition from megabanks, tax-advantaged credit unions and a regulatory burden that has led many smaller financial institutions to sell.
These community banks continue to flourish, moving ahead with the times and continuing to meet customer and community needs in the way community banks do best. Let’s hear some of their stories.
175 years: Keeping things local
In 1848, a miner found gold at Sutter’s Mill in California, launching the California Gold Rush.
That same year, $960 million-asset First Bank of Alabama in Talladega, Ala., opened its doors for business for the first time. Today, the community bank has 12 branches and 14 ATM locations within six counties of east central Alabama.
What has kept this bank thriving for almost two centuries? “The local, grassroots knowledge of the communities we grew from and grew into have always been with service-minded intent,” says Chad Jones, president and CEO. “We are a family within our organization, and we treat our customers the way we want to be treated.”
We are the decision-makers in small and large projects in the communities we serve, locally. Our input matters to the quality of life that our business communities and public organizations are looking to achieve.”—Chad Jones, First Bank of Alabama
The community bank has kept its competitive advantage thanks to the continuous growth of its product lines and services. “This sometimes means stepping out on the cutting edge, but not the bleeding edge, and always leading with the end in mind,” says Jones. “Our team has an effective synergy that allows us all to be confident that we are the best banking solution for our customers’ families or businesses.”
First Bank of Alabama is focused on serving rural markets, with a special emphasis on growing local “main streets” in these communities. “For example, we focus largely on being a part of the local ballpark sponsorships, education in local schools and having seats at the tables of local nonprofits,” says Jones. He emphasizes the word “local” because “we are the decision-makers in small and large projects in the communities we serve, locally. Our input matters to the quality of life that our business communities and public organizations are looking to achieve.”
Along with its innovative services, the community bank continues to expand its influence. “We began a partnership with Talladega Superspeedway to deliver a successful STEM program with local seventh graders,” says Jones. “We began the program in 2019, and we serve 600+ students annually to coincide with their school learning in a fun market, while utilizing NASCAR as a backdrop for exciting learning.” Read more about this initiative in the March 2023 issue »
“I anticipate that this will garner future customers and, more importantly, keep us as good stewards of our communities,” Jones adds.
150 years: Relying on experience
In 1873, the Coinage Act of 1873 was signed into law by President Ulysses Grant, ending bimetallism in the U.S. and placing the nation on the gold standard.
That year, $115 million-asset Blissfield State Bank in Blissfield, Mich., was founded.
”It's hard to compete with the locally owned bank. Our board members and senior management boast combined service of nearly 275 years in banking.”—Julie A. Goll, Blissfield State Bank
One of the bank’s main keys to success, according to Julie A. Goll, president and CEO, is “conservative leadership.” “This means avoiding unnecessary risks, managed growth, maintaining tightly held stock and Sub-S with many generations holding stock,” she says.
The community bank’s philosophies for preservation are in existence throughout the bank, including its lending market. “We offer personal service within a rural market; focused on conservative farm lending, home mortgage loans and generations of dedicated staff,” she says.
According to Goll, larger banks have come and gone in its market, but Blissfield State stays the course. “It's hard to compete with the locally owned bank,” she says. “Our board members and senior management boast combined service of nearly 275 years in banking. In fact, expertise sits at the table with two former CEOs as part of the board, as chair and vice chair, which makes for access to great advice and support.”
Of course, like all banks, old or new, Blissfield State Bank has weathered some crises. The Great Recession and the even more challenging pandemic are examples. “We struggled in the first situation,” says Goll. “However, the pandemic was the topper. It still seems to have a lasting effect on our staffing and even our leadership.”
However, these challenges have not prevented the bank from moving forward. “We have not added any new programs, but we have been busy with technology changes to our online banking service, as well as loan and deposit platforms,” says Goll. “The past year has been filled with upgrades and advancement to provide customers and the team with the latest tools to serve our customers.”
125 years: The power of family
In 1898, 125 years ago, the Trans-Mississippi Exposition World’s Fair opened in Omaha, Neb., promoting westward expansion. Something else opened in Nebraska that year, too: the Bank of Steinauer, in Steinauer, Neb.
“With assets of $16 million, we are one of the smallest banks in Nebraska,” says bank president Suzanne Borcher.
However, the community bank’s small size hasn’t prevented it from thriving. “We are a five-generation family bank, with the sixth generation working here,” she says. “The Steinauer family started the village of Steinauer and the bank.”
As far as the Bank of Steinauer is concerned, the most important focus is on community and family.
“We are accessible and out in the community,” she says. “The advantage of family ownership is that we can make a decision quickly. We keep things simple here and have learned to serve the market we have. Otherwise, we would not be serving our customers.”
The bank is located in the southeast corner of rural Nebraska and has small towns and small schools in its service area. “No matter which town or school you are located in, there is a big sense of pride in the community,” says Borcher.
As is common to long-established banks, the Bank of Steinauer has been through plenty in its 125 years. The most recent was the pandemic. “However, overall, we maintain a steady stream at our bank, so challenges become a minor bump in the road,” Borcher says.
Looking to the future, through a new partnership, the Bank of Steinauer plans to become active with the new FedNow Service, allowing it to provide safe and efficient instant payment services.
According to Borcher, “That will open many doors for [the Bank of Steinauer] to offer new products and more services to our customers.”
100 years: Knowing the community
In 1923, 100 years ago, the first issue of Time was published, and the original Yankee Stadium opened its doors in Bronx, N.Y., Farmers & Merchants Bank in Miamisburg, Ohio, also opened its doors.
”Through involvement, we stay relevant and know what the needs are in the communities we serve. We also continuously give back, making our communities better places to live and work.”—Shon B. Myers, Farmers & Merchants Bank
According to Shon B. Myers, president and CEO of the $280 million-asset community bank, one of the most important keys to staying in business for a century has been being fully engaged in community organizations and activities, as well as allowing employees to serve and volunteer their time and skills to help community activities.
“These are the hallmarks of a strong community bank,” he says. “Through involvement, we stay relevant and know what the needs are in the communities we serve. We also continuously give back, making our communities better places to live and work.”
According to Myers, there are very few community banks remaining in its area of the state, so sticking to the basics of truly knowing its customers really makes it stand out. It prides itself on having a live person answer every phone call.
Myers notes that the pandemic presented an interesting challenge that both people and businesses had to navigate, but the community bank itself faced it head on. “We were very successful in keeping all our offices open and all of our employees on-site through the entire crisis,” he says. “We did close the lobbies for a couple of weeks, but, compared to all of the other business in the area, we remained open for all of our customers, and also picked up several new customers.”
Turning challenges into opportunities
While virtually every bank has weathered one or more challenges, 175-year-old First Bank of Alabama in Talladega, Ala., got hit with several challenges at the same time, according to Chad Jones, president and CEO.
“In 2012, the bank had a troubling time coming out of the Great Recession,” he says. “On Oct. 31, the then president and CEO retired, and, eight days later, the interim president and CEO passed away unexpectedly.”
As a result, First Bank of Alabama had to tighten its belt. However, it also took the opportunity to look ahead to see how it could continue to grow. “This moment and change of management put our opportunities into perspective,” says Jones. “If you aren’t growing, you are dying on the vine.”
So, for the time being, management shrank the bank but also created credit policies for growth, rolled out products and services that would compete both in large and small financial organizations, and executed some major purchases.
It acquired two banks: the Bank of Wedowee and SouthFirst Bank. It also bought property for two brand-new locations and bought two existing buildings in new locations. “As a result, we were able to grow from 48 employees then to 137 employees today,” says Jones.
Helping downtown come to life again
Many banks find themselves doing business in communities that are in decline, whether they are urban or rural. It’s the community bank way to help these communities turn their fortunes around.
Farmers & Merchants Bank in Miamisburg, Ohio, looked at problems in its area dead on and set out to help. “Our downtown had really suffered over the years and had more vacant storefronts than full,” says Shon B. Myers, president and CEO. “We worked diligently with community leaders and a few remaining businesses to revive the downtown. Over the period of about 10 years, we have totally changed our downtown to one that is now vibrant with several restaurants and shops and no vacancies.”
And the community bank is not done yet creating growth and growth opportunities. “We have created a Community Foundation in the last few years that our bank board members serve on as the executive committee members,” says Myers.
The foundation has already been able to bring a new dog park and several murals to the area. “We are currently in the process of raising funds for a complete renovation of our park along the riverfront, which was able to break ground in April of 2023.”
The hot list
What was happening in pop culture when our featured community banks were founded?
❦ 1848 ❦
Popular Dance
The Waltz
Popular Song
“Oh! Susanna”
by Stephen Foster
Fashion
Women: Full dome-shaped skirts, long-waisted bodice and narrow sleeves
Men: Top hats and frock coats
Fact
A Glance at New York, a huge theatrical hit, was notable for its groundbreaking inclusion of working-class characters and street slang.
| 175 YEARS IN BUSINESS | ||
|---|---|---|
| Bank Name | City | State |
| First Bank of Alabama | Talladega | AL |
❦ 1873 ❦
Popular Book
The Gilded Age: A Tale of Today
by Mark Twain and Charles Dudley Warner
Popular Song
“Good Sweet Ham” by Henry Hart
Fashion
Women: Bustles, ruffles and bell-shaped sleeves
Men: Three-piece suits with a frock and morning or sack jacket
Fact
Levi Strauss patented rivets in 1873 and began producing denim jeans.
| 150 YEARS IN BUSINESS | ||
|---|---|---|
| Bank Name | City | State |
| Blissfield State Bank | Blissfield | MI |
| Citizens Bank and Trust Company | Blackstone | VA |
| First Heritage Bank | Shenandoah | IA |
| Cattle Bank & Trust | Seward | NE |
| First Bank of Ohio | Tiffin | OH |
| Jonestown Bank and Trust Company | Jonestown | PA |
| Citizens State Bank of New Castle | New Castle | IN |
| Sharon Bank | Springfield | PA |
| Tioga-Franklin Savings Bank | Philadelphia | PA |
❦ 1898 ❦
Popular Music
Ragtime
Best-Selling Book
Caleb West, Master Diver by Francis Hopkinson Smith
Fashion
Men: Lounge or sack suit with a bowler hat
Women: Shirtwaist, skirt, jacket and straw boater
Fact
Good and Plenty and Tootsie Rolls were new candies on the market.
| 125 YEARS IN BUSINESS | ||
|---|---|---|
| Bank Name | City | State |
| State Bank of New Richland | New Richland | MN |
| Kindred State Bank | Kindred | ND |
| Janesville State Bank | Janesville | MN |
| Bank of England | England | AR |
| Century Bank & Trust | Milledgeville | GA |
| Bank of Calhoun County | Hardin | IL |
| Community First Bank | Menahga | MN |
| Kensington Bank | Kensington | MN |
| The State Bank | Fenton | MI |
| Better Banks | Peoria | IL |
| West Shore Bank | Ludington | MI |
| Security First Bank | Rushville | NE |
| Regent Bank | Tulsa | OK |
| The Farmers State Bank | Westmoreland | KS |
| Peoples Bank and Trust Company | McPherson | KS |
| The Payne County Bank | Perkins | OK |
| Liberty Bank for Savings | Chicago | IL |
| Adirondack Bank | Utica | NY |
| State Bank of Schaller | Schaller | IA |
❦ 1923 ❦
Popular Song
“Down Hearted Blues” by Bessie Smith
Highest-Grossing Movie
The Ten Commandments by directed by Cecil B. Demille
Fashion
Women: Drop waists and straight silhouettes with ankle-length skirts
Men: Fitted jackets and slim trousers with no pleats
Fact
The attorney general declared it was acceptable for women to wear trousers in 1923.
| 100 YEARS IN BUSINESS | ||
|---|---|---|
| Bank Name | City | State |
| Farmers & Merchants Bank | Miamisburg | OH |
| TS Bank | Treynor | IA |
| The Neffs National Bank | Neffs | PA |
| The North Salem State Bank | North Salem | IN |
| Templeton Savings Bank | Templeton | IA |
| First Option Bank | Osawatomie | KS |
| Welch State Bank | Welch | OK |
| The First National Bank of Hope | Hope | KS |
| Muenster State Bank | Muenster | TX |
| First Oklahoma Bank | Jenks | OK |
| Hertford Savings Bank, SSB | Hertford | NC |
| MCS Bank | Milroy | PA |
| Riverview Bank | Vancouver | WA |
| Black Mountain Savings Bank, SSB | Black | NC |
| Lindell Bank & Trust Company | Saint Louis | MO |
| Systematic Savings Bank | Springfield | MO |
| The Old Point National Bank of Phoebus | Hampton | VA |
| Paper City Savings Association | Wisconsin Rapids | WI |
Image Credits: 1848: Lebrecht Music & Arts / Alamy Stock Photo, BigJoy/Adobe Stock, Women 1848, Plate 031 (1848), Gift of Mary P. Hayden, Digital Collection, Costume Institute Fashion Plate, The Libraries of the Metropolitan Museum of Art, Gado Images / Alamy Stock Photo. 1873: Library of Congress, Dariusz Szwangruber / Alamy Stock Photo, Adobe Stock, Adobe Stock. 1898: Chronicle / Alamy Stock Photo8, Shawshots / Alamy Stock Photo, Adobe Stock, Kristin Lee / Alamy Stock Photo. 1923: Album / Alamy Stock Photo, Photo 12 / Alamy Stock Photo, Library of Concress, Courtesy Everett Collection, public domain sourced / access rights from Art World / Alamy Stock Photo.
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