ICBA's Best-Performing Banks of 2024

These community banks hit their stride in 2024, and they intend to keep the momentum going with hard work, flexibility and the expertise they've built over their years of service.

In this year's Annual Listing of Independent Banker’s Best‑Performing community Banks, we learn just how vital the right employees, Mindset and offerings are to industry success. Read on to see the rankings and how some of these community banks rose to the top.

With contributions from Bridget McCrea and William Atkinson

» LESS THAN $300 MILLION

Q&A

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No. 2

Nebraska State Bank
Oshkosh, Neb

Assets:
$65 million

3-year average
pre-tax ROA:
4.204

fsa-loans.com

Jim Levick
President and CEO of Nebraska State Bank

Q: What is your community bank’s greatest strength?
A: Our greatest strength is the knowledge and experience of the people who work here. Each person brings their own strengths to the team, and we do a great job of trying to serve the customer to the best of our ability.

Q: What sets your bank apart from your competitors?
A: Due to our rural location, we specialize in agricultural lending. What sets our bank apart is our ability to thoroughly analyze an ag credit—that is either having financial difficulties or having difficulty in obtaining credit elsewhere—and coming up with a plan to remedy this. Sometimes, the correct answer is “no,” but when it is “yes,” it can be very satisfying watching the producer succeed.

Q: What is the most important internal process that has helped your bank become a top-performing bank?
A: I believe the most important process we have is identifying problems early and taking prompt action to correct those problems before they cause major issues. This occurs in both the lending and operations departments. It goes back to our strength of knowledge and experience and knowing what to look for. I like to think that our small size is one of our biggest advantages.

A look into…

McKenzie Banking Company

McKenzie Banking Company, sometimes known under its sister organization’s name Foundation Bank, rose from the ashes of the Great Depression when it opened in 1934. The community bank “exist[s] as a tool to invest in those things that will outlive [the bank itself]”—and that can be seen in its well-rounded solutions and resources.

In addition to the typical bank offerings, the McKenzie, Tenn.-based bank provides financial planning and education. McKenzie Banking Company even shares its Money Matters Podcast, covering topics such as cryptocurrency or real estate transactions, as a more casual way for its customers to better themselves financially.

But as many community banks know, McKenzie would be nothing without its dedicated staff members, whose work anniversaries get recognized on its Facebook page whether it’s one year or 21 years. To further acknowledge the banks’ star players, McKenzie Banking Company gives out annual awards to colleagues who are passionate about customer needs, building relationships and servanthood.

4 facts about Richland State Bank

1. Richland State Bank serves primarily agricultural communities and provides financing to farming operations of all sizes. As the agricultural industry becomes more and more dependent upon marketing strategies, the community bank’s officers also educate its farmer customers about marketing best practices.

2. In collaboration with the local government and community banks, the community bank pinpoints community needs and identifies opportunities for the development and expansion of commerce in its served area.

3. Richland State Bank is expanding its markets and services beyond agriculture. It markets niche student loan programs nationally and is cultivating other specialized nontraditional banking services.

4. In 2022, president and CEO Pennie Lutz was an honoree in BankBeat magazine’s “2022 Outstanding Women in Banking.” Since 2009, Lutz has overseen the bank’s strategic and succession planning and prioritizes student loan processing. She is also an active EMT with Bruce Fire and Rescue and is a member of the South Dakota Bankers Association’s Women in Banking work group.

» $300 MILLION TO $1 BILLION

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No. 13

Paradise Bank
Boca Raton, Fla.

Assets:
$350 million

3-year average
pre-tax ROA:
2.941

paradisebank.com

Paradise Bank stands out

Paradise Bank was founded in 2005 by a four-person executive team that had been working together since 1994. After selling their previous institution to the Royal Bank of Canada, the four founders decided to create more of a “forever concept” with the new venture. 

“We’re a Subchapter S corporation with less than 100 shareholders, so we can run the bank [with a long-term perspective] versus running it for the stock price,” says Bill Burke, president and vice chairman. “That plays in our favor in terms of making this the last bank we ever work for.”

The community bank considers its back-office deposit and loan operations its “backbone.” It’s involved with about 70 different community nonprofits and adheres to a highly disciplined loan portfolio strategy that includes a large number of SBA loans. “We take our time when underwriting loans,” says Burke. “As a result, none of our current loans are more than 30 days past due. That’s a tribute to our lending staff.” 

In 2025, Paradise Bank plans to move out of its leased headquarters location and into a brand new 24,000 sq. ft. building that’s currently under construction in Boca Raton. 

“Once you own a building, you’re no longer paying rent, and that positively impacts the bottom line,” says Burke. “We see this investment as a good economic play for us in Boca Raton.”

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No. 2

Bank of Montana
Missoula, Mont.

Assets:
$338 million

3-year average
pre-tax ROA:
5.444

bankofmontana.com

Q&A

Tom Swenson
Chairman and CEO of Bank of Montana

Q: What drives Bank of Montana’s success?
A: Our strategy focuses on doing a relatively small number of loans with a very small number of customers. We have 11 employees, and we’re highly specialized in economic development lending. So, we focus on businesses that are creating jobs in our community and state. Since we’re driven by that mission, we’re able to put a lot of time and effort into those transactions. For example, it’s not uncommon for one of our deals to take between one and three years to fully develop into a permanent loan.

Q: What role does your team play?A: Once a team is assigned to a project, it will stick with [it] from concept to completion. More than half of our current staff has been here for more than 10 years, so turnover is low. When clients call us, they feel like their needs are getting met, because the person answering the phone knows what’s going on with that specific project. Our corporate culture is also family-oriented and welcoming. [You] might see multiple dogs hanging out and young children having a snack in the lobby.

Q: What’s ahead for Bank of Montana?
A: We're seeing significant long-term activity with our clients. A number have gone through business cycles and approached maturity, at which point we were concerned about being able to get new ones. However … a large number of entrepreneurial ventures are popping up around us. This gave us a bright outlook for 2024 and beyond, knowing that we’ll be able to continue doing what we’ve been doing.

3 facts about Peoples Bank

1. Founded in 1908, Peoples Bank operates five branches in Mississippi. Its mission is to make each community better served by providing superior and responsible financial products, design services that increase economic opportunity, create financial stability and improve the quality of life for the people and businesses in each community.

2. Right out of the gate, the community bank focused on servicing its community and treating others the way it would like to be treated. As it grew in both size and reach over the years, its mission hasn’t wavered: “Whether our customer is next door or five states over, our goal is the same.”

3. Peoples Bank helps rural communities by increasing economic opportunity, creating financial stability and improving the quality of life for the people and businesses in its markets. Last year, about 50 predominantly rural Mississippi banks and financial institutions were selected to receive $19 million in funding to support loans and investments in economically distressed areas. Peoples Bank was one of 35 state institutions to receive $451,025 in funding.

» MORE THAN $1 BILLION

A moment with…

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No. 14

Western State Bank
Devils Lake, N.D.

Assets:
$2.2 billion

3-year average
pre-tax ROA:
2.502

westernbanks.com

Todd Heilman
Chief financial officer of Western State Bank

“Western State Bank’s greatest strength is the uniqueness of its business model,” says Todd Heilman, alluding to the fact that the community bank serves a wide geographical area. “We have bank branches located in North Dakota and Arizona,” he says, “but we also have a finance division that conducts business across all 50 states.”

Heilman believes the bank is also set apart by its strong commitment to culture; hiring managers choose staff members by identifying those who believe in the bank’s business model and are driven to meet the expectations of customers. “We focus on being disciplined and committed to our customers, team members and stakeholders, and not becoming distracted from our business model,” Heilman says.   

He notes that the bank and its staff strongly emphasize monitoring credit risk and continually improving credit risk practices: “Our goal is to continue to have strong growth while maintaining a credit portfolio that is diversified with limited exposure to risk.”

In his own words:

Scott Stafford
President and CEO of Evolve Bank & Trust

At Evolve, we firmly believe that our employees are our greatest strength. Their dedication, expertise and commitment to excellence form the foundation of our success. It’s not just about the roles they fulfill, but the passion and collective effort they bring to the table each day that truly set us apart. 

Our team members are not merely employees but invaluable contributors to our shared mission, driving innovative financial technology solutions, fostering a positive work culture and delivering exceptional service to our customers. By nurturing a supportive and collaborative environment, we empower our employees to thrive, ensuring that they remain the cornerstone of our success story. 

What sets us apart from our competitors is our flexibility. We take pride in our ability to understand the unique needs of our clients and tailor financial solutions that go beyond the ordinary. Our dedicated team is adept at navigating challenges and crafting custom solutions, ensuring that each client receives the personalized attention and support they deserve.

By marrying the strength of our history as a community bank with a forward-looking approach to fintech, we stand as a formidable force in the Banking-as-a-Service space, uniquely positioned to serve customers, clients and end users.

Q&A

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No. 20

United Bank
Atmore, Ala.

Assets:
$1.3 billion

3-year average
pre-tax ROA:
2.35

unitedbank.com

Mike Vincent
President and CEO of United Bank

Q: What is your community bank’s greatest strength?
A: It’s our willingness to challenge ourselves to be open to new ideas and new ways of thinking. We serve a customer base that has ever-evolving needs and expectations, and we have always been willing to adapt to change. We simply refuse to be complacent in how we approach a customer’s experience. We do not accept the notion that all is well because “we’ve always done it that way.”

Q: What sets you apart from your competitors?
A: It may sound cliché, but the differentiator is our people. Banking services are homogeneous in nature, so an engaged, empowered employee base must be what sets a bank apart. Our employees drive our success by building and maintaining relationships with customers. We seek out employees who are committed to the success of the communities that we serve.

Q: What is the most important internal process that has helped United Bank become a top-performing bank?
A: Communication. We hold weekly C-suite meetings to discuss ideas, suggestions and emerging concerns. We also [regularly] hold bank-wide calls to update our staff on various topics, as well as conduct periodic training. It has been imperative to have a well-informed staff that understands our culture and can apply it to their daily jobs.