COVID-19 emphasized importance of community banking
Washington, D.C. (April 1, 2021) — The Independent Community Bankers of America (ICBA) is once again honoring the nation’s nearly 5,000 community banks during April, which is Community Banking Month.
This month, ICBA pays tribute to community banks for their ongoing contributions throughout the COVID-19 pandemic in a new video series, which highlights the unmatched role community banks served in supporting their small business customers through the Paycheck Protection Program (PPP).
“Community banks are relationship lenders that stand by their customers and communities, and the pandemic has only emphasized their vital role in our financial system,” ICBA President and CEO Rebeca Romero Rainey said. “During ICBA Community Banking Month we are proud to recognize community banks as financial first responders who continue to demonstrate their flexibility to address customers’ unique financial needs while performing acts of community service that create healthy, resilient and vibrant communities, which benefit Americans nationwide.”
Community banks take in local deposits and redistribute them back into the community—consistently making more than 60 percent of small-business loans and more than 80 percent of agriculture loans. They also contribute tax dollars that help maintain local municipalities and keep local neighborhoods viable and strong because serving the best interests of their customers is fundamental to their business philosophy. Community banks:
- Are highly favored by small businesses, earning a 74 percent net satisfaction score compared to 60 percent for large banks, 46 percent for finance companies and just 25 percent for online lenders, according to a Federal Reserve study.
- Are committed lenders with loan growth that has outpaced noncommunity banks for eight years.
- Demonstrate safety and soundness with higher capital ratios and better loan quality than the largest institutions.
- Offer high-tech, high-touch service, giving consumers access to modern-day conveniences while maintaining the superior customer service for which community banks are known.
- Have a strong track record in helping underserved Americans by focusing a relatively large share of their resources in low- and moderate-income tracts.
“As financial stewards and civic leaders, community banks have always stood shoulder to shoulder with their customers and community; doing whatever it takes to support their neighbors and ensure a strong local economy,” ICBA Chairman and President and CEO of Tioga State Bank Robert Fisher said. “I’m proud to be a community banker and applaud my colleagues on showcasing the enduring strength of community banking as we endeavor to build a legacy of prosperity.”
Learn more about community banking and find a community bank near you at www.banklocally.org.
The Independent Community Bankers of America creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, over $4.4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.
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