Independent Banker - May 2024 - 51

some of the employees had not been
there for these experiences, such as
the prior economic recession.
" There is the cultural bond that
we all have because of these special
events, " he says. " Well, a month
and a half later, we had the mother
of these events. Everybody at that
point was talking about that pull, the
camaraderie, the belief that we had
to save not only the bank; we had to
save our community. There is a buzz
and a cultural leftover, if you will, that
was so powerful and potent. And now
the attitude that we can do anything
if we have to prevails in our culture,
because we did it. "
Caldwell says he has seen a similar
cultural change at Community
National Bank.
" I think that the whole commercial
team-the loan processors, the loan
servicing folks, the credit team, the
commercial lending team-I think
everybody to this day looks back on
April 2020 and takes an immense
amount of pride in a very heavy lift on
the part of this organization in a very
short amount of time, " he says. " And
that attitude still permeates, to some
degree, and there's still that level of
real appreciation for each other and
what we did then. "
Small-business rescue mission
Perhaps the most profound lasting
effect of the Herculean effort
community banks put into the PPP
lending is seen outside the banks'
walls. Were it not for that work, many
businesses that now thrive in their
communities simply would not exist.
And it's fair to say that community
banks deserve more credit for saving
the business community during
COVID than their bigger competitors.
Data analyzed by ICBA showed that
community banks originated more
than $210 billion in PPP loans in
the first three weeks of the program,
which saved an estimated 20 million
jobs. During those same weeks, large
banks, credit unions, Farm Credit
System institutions and other lenders
paid out less than half that amount.
Despite the trials and tribulations of
the pandemic, countless businesses are
thriving today thanks to community
banks' efforts. For example, a South
Dakota-based manufacturing company
moved its accounts to Reliabank
during COVID when its existing bank
did not handle its PPP loan application
adequately. Reliabank did the job
right and secured a large loan for
the manufacturer. Before long, the
company increased production and
added space.
" If they had laid off staff during
A safe haven for lower-income communities
One goal of the Paycheck Protection Program was helping the
individuals who were most at risk during COVID: those on the
lower rungs of the economic ladder. Data analyzed by ICBA show
that community banks did a superior job of supporting those
individuals: Community banks accounted for 67% of PPP loans to
industries with average hourly earnings of $10 to $20.
" When you consider that the PPP program was designed to
help those in precarious positions remain employed, you see that
community banks did a better job of that, " says Mickey Marshall,
AVP and regulatory counsel for ICBA.
Jed Fanning, president and CEO of Citizens Bank of Las Cruces,
N.M., says his bank helped a great number of at-risk individuals.
" Most of the businesses and the communities we serve have more
employees in that $12 to $20 per hour range, " he says. " So, I can
say that we probably impacted more employees [of clients] in that
lower income bracket. "
COVID, they probably never would
have got to the stage of where they
could add on, " Hogue speculates.
The efforts of community banks
to help their communities did not go
unnoticed. Courtney of Oak Valley
Community Bank recalls attending a
dinner of local business executives in
2022, during which each spoke briefly
of their COVID experiences. When
Courtney's turn came, he explained
how his staff worked 24/7 processing
the PPP loans. After he finished, the
40 other executives at the event stood
up and applauded him.
" I knew that we were helping some
of these folks, but I had no idea the
depth of that and how important
it was for them, " he says. " There
were some extremely scared people.
They knew if they didn't get their
money and pay their employees,
they were done. If it wasn't for this
program, the percentage of people
who wouldn't have made it would've
been catastrophic. "
Community banks' benefits, from
technological leaps and enhanced
culture to new customer relationships,
are just the icing on the cake.
Ed Avis is a writer in Illinois.
independentbanker.org // 51
http://www.independentbanker.org
Independent Banker - May 2024

Table of Contents for the Digital Edition of Independent Banker - May 2024
