Community banks are a regional treasure

Years ago, I did my banking at a large national bank that soon got swallowed up by an even larger bank. The weekend of the takeover, I called the branch, now under new management, where I had done my banking for several years. The outgoing message mispronounced the name of the town where they had just set up shop. My home town! They lost my business, and that branch soon closed.

I quickly moved to a much smaller community-based bank. The manager knows my name, says “Hello” every time I’m in the place. Transactionally speaking, I get what I need from a bank, plus the trust that comes from a relationship with a bank staff I also see in the grocery store and at the post office.

Smaller, local banks are gaining cache in the current financial climate. I spoke with Fred Schea of First Savings Bank of Perkasie. You know it’s a local bank, because Fred’s title is President and CEO, yet he took time to talk with me for this article! First Savings has branches throughout central and upper Bucks County, and assets of around 1.1 billion. According to Schea, they are the largest of the regional banks based in Bucks.

Schea told me, “As the transactional side of the business becomes more and more automated, the relationship side has become more and more important.” So they are a truly a part of the community. They sponsor your kids sports teams. They give back, in First Savings’ case, to the tune of $158,000 in charitable gifts last year. First Savings also has programs in place to increase what Schea calls “financial literacy” Kids can join a special savings club and adults can learn online and in person. When you know the people where you do your banking, you are more likely to be comfortable asking questions, like “What’s a good option right now for college savings?”

This isn’t just a feel-good story. There are solid financial reasons for choosing local. “We couldn’t afford the risk of sub-prime loans, so we just didn’t even get into that,” Schea says. First Savings is doing more home mortgage loans up to this point than in the same period of last year. They’ve been on solid footing, so they haven’t had to pull lines of credit from businesses, as some larger banks have had to recently.

If that personal touch doesn’t mean much to you, by all means, go with the big kahunas. As long as you’re not a jazillionairre, FDIC-wise you’re covered in large and small banks alike. But for stability and lasting relationships, our region has some great assets in its local community banks!