Definition of a Community Bank?

Did you know that Community State Bank has been around since 1931? You can read all about it on Our Legacy page – it’s really a cool story to read. We were designed from the very beginning to help our community be more successful through providing meaningful financial services and support. From day one, we have been called “Community State Bank”. It’s who we are – a community bank. I have a question for you. Other than the “feel-good, we’re here for you” type of descriptions, do you think you could define what makes a bank a community bank?

People naturally lean towards the relationship and individualized support descriptors a community bank offers, because that’s the part that makes a lasting impression. While that positive impact is so important, I want to actually talk about the logistics of it. The Federal Reserve defines community banks as having less than $10 billion in assets. That seems like a lot, and it is! But just to make sure you understand what assets are at a bank, the biggest one is the money we lend out to people. To put that in perspective, we could easily lend out a couple million dollars to a single, local business every year, which does start to add up. We are still under that threshold though, which is why we can call ourselves a community bank.

Additionally, the ownership structure of community banks is typically different than large financial institutions. For community banks, owners are typically local which means that decisions are made locally, and profits are kept local. All of these traits are benefits to our customers. Another huge benefit to working with local customers is that we can actually incorporate the reputation and integrity of the business owners into our decision-making, since we have an existing relationship with them. Big banks can’t cultivate and develop relationships like that when they are located in cities or even states far away.

 

Additionally, if you were interested in borrowing money that was outside of the typical cookie-cutter guidelines, a larger bank would have a lot of red tape to cut through. Sometimes this can be done, and other times it’s just not possible – either way, it takes a lot of time. At a community bank, our team is intentional about understanding the timeline associated with new loan requests and works to not only meet those expectations, but exceed expectations and needs with determination and urgency. Our flexibility and size allow us to do this, and our interest in our individual customers is what motivates us.

 

Which leads us right back to the feel-good and heart-warming relationship side of community banking. While there are regulations in place for all banks to ensure financial institutions are not being unfair or biased towards customers, there are still opportunities for personalized lending and outstanding customer service when you are working with a bank that is dedicated to the success of every customer. Not only can our team provide one-on-one support, but they can also help you understand your options and guide you through what has worked in the past for similar customers.

 

Our team is living right here in the same communities you are, which means we understand what’s happening and how huge some obstacles feel. We go where we are needed and reach out to customers as new or better opportunities arise for them. This is only possible because of the team we have and their dedication to our community. They learn what our community needs and help us be responsive in a way that pushes us as a bank to be even more relevant. We can’t wait to share more about this in future blogs.

 

This is just the beginning of what makes CSB special. We have spent the last 90+ years identifying customer needs and making ourselves a better fit for you – so start a conversation with us! We would love to see what we can do to help you along your financial journey!

 

Written by Carianne Bricker
Marketing Coordinator at Community State Bank
Marketing@csbemail.com
260.994.0571
February, 2024