Community Banks/Regional Banks

West Valley National Bank         Pinnacle Bank       Sonoran Bank

 

The American financial system is global.  It is the main engine that drives the world’s economy.  As large players are remaking the financial world, small local banks are once again proving their resilience. 

 

Large investment banks were global and have deservedly bitten the dust because of greed and dishonesty encouraged by inadequate regulation.  The large commercial banks that played fast and loose with regulations also deservedly bit the dust.  The people badly hurt were every-day folks like employees, taxpayers, stockholders, businesses that relied on lines of credit and the retired populace.

 

Recent turmoil on Wall Street has positioned Main Street community banks to prosper greater than ever before in history.  Small business owners and consumers can clearly differentiate between investment banks, super-sized commercial banks and small community banks.

 

We now have small community banks from across the country surfacing with their side of what really is happening.  See the links below to articles that have surfaced this month.

 

The five small Arizona community banks I helped start during the past three years are local, play by the rules and are generally very safe!  They hire outside audit firms annually and outside firms on a quarterly basis to make sure management follow the strategic business plan authorized by regulators and mandated by the board.

 

Every single solitary FDIC insured bank is required to file a quarterly financial statement with the FDIC.  Check records of any bank in the U.S. on the Federal Deposit Insurance Corporation Web site, www.fdic.gov.  It is an open book.

 

The banks I helped start are Pinnacle Bank, Sonoran Bank, N.A., West Valley National Bank, RepublicBankAZ, N.A.  I am currently helping form 5 more banks in Arizona.  That is how much confidence I have in the economic future of Arizona.  That is how much confidence directors of the banks have.  They are people of financial means who make a habit of carefully analyzing the businesses they start including banks.

 

Attached are stockholder letters from Pinnacle, Sonoran and West Valley National Banks.  These are 3 of the 5 banks I helped start in the Phoenix area.  As you can see, none have conducted the type of business that has gotten their larger brethren in trouble.  Our banks know better!  Careful selection and training of board and staff pays off.  As you can see, Sonoran and West Valley are looking to acquire other banks.  Check out the Web sites of all 5 at www.pinnaclebankaz.com; www.sonoranbank.com; www.wvnb.net; www.republicaz.com; www.gcbaz.com.

 

What an amazing time to start a bank.  Read the 3 letters and then if you have time, click on to some of the links below for current news about small banks across the country.  Tell your friends and associates since all they have to go by is media sensationalism and the frightening political lies they hear.

 

Also, be sure to read New banks being pressured to provide business loans in the Phoenix Business Journal this week at http://www.bizjournals.com/phoenix/.  Regulators may have limited say so over big banks, but they are very demanding that small banks follow rules of safety and soundness.

 

As of June 30, the FDIC had 117 insured banks and S&Ls on its problem list. That represented about 1 percent of the nearly 8,500 institutions insured as of June 30. 

Based on its analysis of the June 30 numbers, Bauer Financial, Inc. concluded that 426 federally insured institutions are grappling with major problems — about 5 percent of all banks and S&Ls.  About 13% of banks on the FDIC trouble list will usually fold.

 

“It’s scary right now, but it’s not as scary as a lot of people are making it out to be,” said James Barth, now a senior fellow at the Milken Institute, a think tank.  Barth was chief economist of the regulatory agency that oversaw the S&L industry in the 1980s.

 

Economic tumult is creating expansion opportunities for healthy banks.

 

Ernie Garfield, Chairman

Interstate Bank Developers, Inc.

 

Panel: County banks solid financially
Mount Vernon News - Mount Vernon,OH,USA
At this stage, I am not at all worried about the continued success of community banks.” It is the investment banks, however, which seem to be giving
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Local banks benefit from crisis
RoxReview.com - Philadelphia,PA,USA
Small, community banks have gained business.”People are looking for peace of mind,” said Christopher McGill, president and CEO of East River Bank.
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Hometown banks see increase
Jackson Sun - Jackson,TN,USA
Recent bank failures and instability in the stock market have driven some Madison County residents to smaller community banks. Deposits at the Bank of
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Community-based banks still loaning money for many purposes
nwitimes.com - Munster,IN,USA
BY LU ANN FRANKLIN Unlike their big national and international cousins mired in a global credit crisis, community banks in the have money to lend,
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Small US Banks Rise Above Financial Turmoil
NewsBlaze - Folsom,CA,USA
While their big-bank cousins have faced near-catastrophe in the recent market fluctuations, community banks report that they are healthier than ever.
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Upside of Market Turbulence Is Opportunity for Community Banks
San Diego Business Journal - CA,USA
By MIKE ALLEN The turmoil that’s beset the financial services industry is generally having limited impact on most San Diego community banks, which didn’t
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Local banks remain steady in unsteady times
New Richmond News - New Richmond,WI,USA
First National Community Bank President Denny Nybakken agreed that no one needs to worry about the financial health of the local, community banks.
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Statement of condition
Purcell Register - Purcell,OK,USA
“We want to keep our customers happy and safe,” First American Bank Executive Vice-President Mike Murphy said. “We will be here for the long haul.

 

Minnesota’s small and mid-sized banks still doing well
Finance and Commerce - Minneapolis,MN,USA
But their much smaller siblings among Minnesota’s community banks are generally doing just fine, keeping capital flowing into a surprisingly busy local

 

‘We have cash to lend,’ many small banks proclaim
Nashua Telegraph - Nashua,NH,USA
Executives of three local community banks and credit unions say they avoided the disastrous path of subprime loans and are connecting qualified borrowers to

 

Bank execs: Community banks afloat, on course in turbulent
Russellville Courier - Russellville,AR,USA
I don’t know one community bank in the area that’s not making loans. “The public is inundated with national news that you can’t get a loan,” Ron Jackson,

 

Banking savvy that will help you sleep
Boston Herald - United States
Despite the failure of several large banks, more than 65 percent of banks still receive four- or five-star ratings from BauerFinancial, which also rates

 

NH banks‘ loan care pays off
The Union Leader - Manchester,NH,USA
By DENIS PAISTE MANCHESTER – New Hampshire community banks that passed on sub-prime lending during the housing boom are finding they have retained low

 

Commercial banks stand to profit from Black Monday, economist says
Daily Commercial News - Toronto,Ontario,Canada
“The commercial banks are reaping a bonanza in cash deposits,” says Carrick. “In fact, there may be a double benefit to the bank from the stock-market

 

Amid crisis, local banks see opportunity
Burlington Times News - Burlington,NC,USA
While no one truly knows what’s ahead, some folks say that North Carolina and its community banks could be a good place to weather the storm.

 

Nothing’s the Matter With Kansas
Wall Street Journal - USA
Community banks like mine are still making loans and serving the needs of customers. I used to worry about competing in the world of mega “too-big-to-fail”
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Local banks weather market
Evening Observer - Dunkirk,NY,USA
Daniel Drozdiel, district manager at Community Bank, said although people are being more cautious and restrictive with their investing, local banks which

Amid financial crisis, healthy community banks see opportunity to
New York Daily News - New York,NY,USA
That doesn’t mean, though, that community banks are immune to all the troubles plaguing the financial system. “There’s been an overall lack of confidence,”

 

Business as usual for local banks
Marshall News Messenger - Marshall,TX,USA
By Charles Iyoho, News Messenger East Texas banks have remained sound, local bankers said Friday, despite Congress having to approve an unprecedented $700

 

Small banks may not see big bailout boost
San Diego Union Tribune - United States
By Mike Freeman San Diego County’s small banks conceivably could benefit from the controversial $700 billion bailout package by selling troubled mortgages

 

Bailout raises FDIC coverage to $250K
Andalusia Star-News - Andalusia,AL,USA
CCB’s Allen Mims said community banks really aren’t involved in the kinds of problems Congress is trying to help solve. “Our deposits are here,

 

Local Commentary — Independent community bank in strong, safe
Morris Sun Tribune - Morris,MN,USA
They were investment banks, not a community bank! We have been asked by more of our customers in the past month or so “is my money safe in your bank?

 

Bank branch now open
Times-Mail (subscription) - Bedford,IN,USA
The local community banks with us, and in turn, we can invest back into the local community. We can add a lot to this community from the standpoint that

 

Mass. banks stand to make gains
Boston Globe - United States
“We could see some benefit to the commercial banks,” said Gerard Cassidy, managing director of equity research at RBC Capital Markets in Portland, Maine.

 

Are NDs Banks/CUs safe? | KXNet.com North Dakota News
KXMC - Minot,ND,USA
Terry Zeltinger, President - United Community Bank: “We’re kind of insulated from this, because our economy is robust and things are going very well.

 

The truth is, Graham’s banks are thriving
Graham Leader - Graham,TX,USA
Community banks across this country, and especially in Texas, remain in good financial condition and have been doing business as usual,” Gober says.

 

Bankers: Local money secure
Bluefield Daily Telegraph - Bluefield,WV,USA
“All of the national news is talking about the very large banks in the country. Most of the local banks, like First Community Bank, are community banks.

 

Community banks eye ex-Wachovia depositors
Birmingham Business Journal - Birmingham,AL,USA
“There’s no question we are already receiving comments that customers are walking in the door wanting to bring their money back home to the community banks.

 

Cape Region banks are weathering the financial storm
Cape Gazette - Lewes,DE,USA
Depositing more money with local banks also means community banks can continue to provide car and home loans – at least for now.

Small US banks see deposits surge
United Press International - USA
WASHINGTON, Oct. 12 (UPI) — Bankers say there has been a surge of new deposits in small community banks across the United States since the Wall Street

After 20 years, bank president still enjoys job
Times Daily (subscription) - Florence,AL,USA
“There hasn’t been a community bank that’s failed in the state in excess of 20 years.” It’s not just banks that are experiencing the most problems today,

Big Country banks are safe, secure and stable
Abilene Reporter-News - Abilene,TX,USA
With regard to these events and despite all the commentary, we would like to advise people that community banks are safe, secure and open for business.

As Larger Banks Crumble, Local Firms See Rush
Washington Post - United States
The draw of community banks, Cole said, is the relationship. “At times like this, people may feel it’s time to shift to a bank that’s nearby,
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What credit crunch?
Minneapolis Star Tribune - Minneapolis,MN,USA
Indeed, a spot check with commercial banks across the state echoed Ruiter’s observation. “Our loan growth is up on the business side,” said Steve Meads,
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