Independent Banker - January 2025 - 44

COMMUNITY BANK
CEO OUTLOOK
2025
SPONSORED BY
efforts will result in higher customer satisfaction along
with a more efficient and happier employee experience. "
When it comes to boosting income, CEOs listed several
different initiatives their banks are planning in 2025.
These include growing an existing line of business,
running a new brand or marketing campaign, and
adding a new line of business or service.
" We have ample room to do more of what we already
do, because we're not currently restricted by the size of
our market, " says Shettlesworth, referring to the greater
Albuquerque area, which has a population of 800,000.
" We still have plenty of room to grow without sacrificing
our business model and delving into other products and
services that, quite frankly, we aren't good at yet. We
have done this in the past with mixed results. "
Main Bank can't grow, however, without talented
new employees. " Thankfully, we don't have to double
the size of our staff to double the size of the bank, "
says Shettlesworth. " That's the beautiful thing about
increasing efficiency. What we've done over the past five
to 10 years to get to where we are now will not be what
gets us to the next level of doubling in size. "
Main Bank plans to focus on expanding merchant
services in 2025, which Shettlesworth calls
" low-hanging fruit. " " We have not made an intentional
effort to reach out to our business customers and
ask for this business, " he says. " It's such an easy ask,
though, because we will only ask customers to switch
their merchant services to us if we can save them
money. It's a win-win for everybody. "
Yampa Valley Bank also plans to emphasize merchant
card processing in 2025. " We have a really strong
merchant product with a lot to offer customers and
competitive pricing, " says Wharton. " We're in a resort
area, so there are a lot of retailers, restaurants and ski
shops. It just comes down to capacity and manpower;
we haven't had time for outbound calling. "
Merchant services aren't highly profitable,
says Wharton, but they are sticky. " They solidify
relationships with our existing customers and increase
overall customer satisfaction. "
Wharton is bullish on community banking in 2025
and beyond. " Community banking is alive and well, "
he says. " The megabanks have abandoned many rural
areas and are relying more heavily on technology
like AI, while we are investing in our community and
growing market share. This gives me great hope for the
future of community banking. "
Don Sadler is a writer in Georgia.
As community banks seek to boost earnings in
the current interest rate environment, they are
focused on increasing efficiency. About a third
(35%) of bank executives say they plan to tighten
expenses this year.
One way to slash expenses and increase
efficiency is to merge with another community
bank. One out of 10 CEOs say their bank is
planning a merger in 2025, including Scott McComb, chairman, president
and CEO of Heartland Bank in Whitehall, Ohio.
" Our markets, Cincinnati and Columbus, dictated that we need a bigger
balance sheet [capability] in order to continue doing what we're doing, "
says McComb. " This is especially true when you consider new regulatory
requirements coming down the pike, as well as the cost of everything
increasing exponentially. "
Heartland Bank will merge with German American Bank in Jasper, Ind.,
during the first quarter of 2025. " This merger will help us gain scale, " says
McComb. " We think it's a really good move for our shareholders, so they
can have a growth stock that continues to increase dividends and [liquidity]
along with [increased non-interest income] to bring home those returns. "
44 // ICBA Independent Banker // January 2025
Independent Banker - January 2025

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