About Community Banks (source: ICBA)

• Community banks focus attention on the needs of local families, businesses and farmers. Conversely, many of the nation’s megabanks are structured to place a priority on serving large corporations.

• Unlike many larger banks that may take deposits in one state and lend in others, community banks channel most of their loans to the neighborhoods where their depositors live and work, helping to keep local communities vibrant and growing.

• Many community banks are willing to consider character, family history and discretionary spending in making loans. Megabanks, on the other hand, often apply impersonal qualification criteria, such as credit scoring, to all loan decisions without regard to individual circumstances.

• Community banks offer nimble decision-making on business loans because decisions are made locally. Megabanks must often convene loan-approval committees in another state.

• Because community banks are themselves small businesses, they understand the needs of small-business owners. Their core concern is lending to small businesses and farms. The core concern of the mega banks is corporate America.

• Community banks are the primary source of lending for small businesses and farms. Even though they compose just over 23 percent of the banking industry by assets, community banks with less than $10B in assets made 67 percent of outstanding loans to small businesses and provided 62 percent of the initial dollar amount.

• Community banks’ boards of directors are made up of local citizens who want to advance the interests of the towns and cities where they live and where their banks do business.

• Most community bank loans benefit the neighborhoods where depositors live and work.

• Research has shown average fees for checking accounts and other depository services are lower at community banks than at large, multi-state institutions.

• Community banks offer a wide range of banking services and products designed to meet the needs of consumers and business including:

o Anytime, anywhere electronic banking,

o Automated teller machines, often with little or no surcharge fees,

o Credit and debit cards with competitive rates and features,

o Competitive mortgage- and consumer-loan products

o Competitive checking, saving and investment products and rates, and

o Small-business and agricultural lending.