Notes from the CEO
FDIC : Community Banks Play a Key Role
As the holiday season is upon us and another year is drawing to a close, I find myself reflecting on 2012 and feeling grateful for the opportunity to lead Five Star Bank. Being a community banker is important to me … it’s important to all of us here. So much more than a bank, the partnerships that we have forged and fostered in the past year have led to some great successes for our clients. As a community bank, seeing our clients success is something that we’re all proud of. Today, perhaps more than ever, the role of community banks in this country is vital to the economic vitality of the communities that make up a larger whole.
The ICBA (Independent Community Bankers of America) recently reported on a study by the FDIC that stresses the importance of the role of community banks in the U.S. banking system and to the nation’s “Main Street” communities.
The Community Banking Study was released as the capstone on a yearlong Community Banking Initiative and is intended to provide a platform for future research and analysis. ICBA President and CEO Camden R. Fine was quoted as saying “The study confirms that the community bank business model is based on relationships with customers and that community banks have a symbiotic relationship with the communities they serve.”
Some key results include the following:
- Community banks are relationship lenders.
- Community banks are inextricably connected to entrepreneurship.
- Regulations have real costs.
- Record-low interest rates affect the industry.
- Community banks incur lower credit losses than non-community banks.
- Economies of scale are overblown.
- Community banks are well-capitalized.
- Community banks hold relatively diversified asset portfolios.
- Banking consolidation is stabilizing.
You can read the study in its entirety here: Read the Study
As we look toward 2013, I’m eager to work toward more success for our clients, partners, and friends. I wish you all the happiest of holidays and much success and prosperity in the coming year.
James E. Beckwith
President & CEO Five Star Bank