Features

Community bankers tailor new services to customer needs

Gone are the days of the homogenous customer base. A community bank’s reach may span multiple states, varying customer demographics, a wide range of business needs, and an ever-changing competitive environment with near-infinite options of products and services. The 39 branches of Miles City-based Stockman Bank of Montana are spread across the wide expanse of the state. The $5.4 billion bank includes customers located in larger cities and some in very rural locations, sometimes up to 100 miles from the nearest branch. The bank serves a mix of commercial and agricultural customers, in addition to its consumer population. [Continue]

How should community banks coexist with cryptocurrencies?

Though cryptocurrencies could be seen as a threat to traditional finance — they neither need an intermediary nor are they tied to a centralized government, bank or regulatory agency — consumers still indicate a strong desire for a bank to be involved. Community bankers worrying that demand for cryptocurrencies might eclipse demand for traditional bank products will be well-served to remember that consumers attracted to decentralized finance still yearn for the security offered by a bank.  [Continue]

First International Bank & Trust’s growth fueled from within

“Live first.” First International Bank & Trust’s approach to community banking is expressed in this seemingly simple yet often complex summary of the work-life balance FIBT desires for its employees. This individualized approach, along with the steady community leadership the Stenehjem family has adopted during the past 110 years, has successfully laid the cultural foundation for the $4.7 billion, Watford City, N.D.-based bank’s expansion across the Midwest and Southwest. [Continue]

CRE looks strong in 2022 despite challenges

As commercial real estate spaces emptied following the onset of the pandemic, industry experts questioned when — if ever — the CRE market would recover. Less than two years later, CRE has returned to a strong level and is expected to grow even more over the next 12 months as the growth of e-commerce continues to fuel the need for industrial CRE. However, inflation and ongoing supply chain shortages could throw a wrench into the long-term CRE economy as businesses finalize where their employees work in a post-pandemic economy. [Continue]

Banker of the Year 2022: Brenda K. Foster

The 340 employees of First Western Bank & Trust likely will not use the term “acquisition” to describe how their bank leapt from roughly $1.1 billion at the beginning of 2020 to $1.85 billion by year’s end once it had absorbed Fargo, N.D.-based BlackRidgeBANK. The preferred term — according to Brenda K. Foster, leader of Minot, N.D.-based First Western Bank & Trust — is “merger.”  [Continue]

Bank of Labor survives, thrives despite declines among union ranks

“When you face a crisis, you know who your true friends are.” The quote, attributed to basketball legend Magic Johnson, also pertains to how Kansas City, Kan.-based Bank of Labor, the nation’s only union-owned and labor-focused financial institution, has done business over nearly a century. It’s been a successful approach with far-reaching impact.  [Continue]

As employees return to in-person work, banks seek new normal

During shutdowns, some wondered if banks would be left with a surplus of space in their buildings if remote work became the new norm. As Covid-19 vaccines rolled out and bank employees trickled back to their offices, those worries have so far been unfulfilled. Still, with more employees working from home and consumers embracing remote banking, some institutions have reduced their space needs — possibly forever. [Continue]

‘Bank On’ catches on as way to reach the unbanked

Banking the unbanked has long been an industry phraseology — and a goal of the FDIC. But despite attempts by different organizations, a nationwide effort to bring the unbanked into the financial fold has proven unsuccessful. The “Bank On” national program offers a solution for both sides of the equation. [Continue]

Fare thee well, 2021

The year 2021 was unlike any other for community banks. Even as Covid-19 variants blanketed parts of the country with illnesses and deaths, creating uncomfortable reminders of 2020, more Americans became inoculated against the virus. The economy strengthened, and many bank employees returned to their offices, easing previous fears of an influx of available commercial space.  Still, more familiar challenges roared back: President Joe Biden’s administration, inaugurated in January, has already proposed tightening policies relating to overdrafts, reporting requirements and M&A, three issues that could have significant impacts on community bankers in the coming years. With a toast to 2021, BankBeat.biz has compiled the five stories that especially captivated the industry during the previous 12 months: [Continue]

Technology blended with expertise opens new lending sources

There are age-old questions that banks must ask when considering their loan portfolios. What types of loans do we want to originate? What should our portfolio mix be? What is our risk tolerance? The answers shouldn’t be static: Rather, they need to reflect an ongoing comparison of the loan portfolio to the bank’s overall goals, along with an evaluation of changes within the market and communities being served. [Continue]