The term ‘community bank’ is widely-known in the financial world, but what exactly does it mean and how do these institutions differ from other banks? All ecosystems rely on the interdependence of different species. Every living thing provides unique and valuable abilities that build a balanced environment. In many ways, our local economies are the same, their success is determined largely by the cooperation of the businesses and people who reside there.
Community banks are small, but they play a big role in local economies. The Federal Deposit Insurance Corporation (FDIC) defines a community bank as “a bank which has specialized knowledge of their local community and their customers,” and they “base credit decisions on local knowledge and nonstandard data obtained through long-term relationships.” Essentially, they receive deposits from sources within a town or city and lend that money to local businesses to create balance within that economy.
Community banks fund nearly half of all small business loans, per the FDIC. They consider relationships when lending money and not just solely rely on credit scores, ratios or collateral. Because community banks consider history and reputation of their customers when making decisions, they invest themselves in their success and offer assistance, training, and support beyond that of many national institutions. These additional resources help small business owners make vital decisions that are often overlooked.
Commencement Bank continues to invest in the people and businesses of the South Sound 14 years after its 2006 grand opening. As a community bank, Commencement focuses on doing the right thing for its customers and communities and will uphold this mission at its new, full-service branch in Auburn.
“We selected Auburn because of the rapid growth of small to mid-sized businesses and the lack of local funding options,” said John Manolides, President & CEO. “It is markets like this where we have the most potential to make a positive impact.”
The next time you are looking for financial assistance, remember to search for local options like Commencement Bank. Not only will you receive personalized service, you will support the businesses and people within your community.
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