Community Banks Power Local Communities and Fuel Economic Prosperity

Strategic Insights -

As part of Community Banking Month in April, First Federal Savings Bank and the Independent Community Bankers of America are highlighting the significant contributions of community banks to local economies. Community banks provide more than 60% of small-business loans and 80% of agriculture loans nationwide, generating tax dollars that support local municipalities. These banks are favored by small businesses, earning an 81% net satisfaction score, and are committed lenders with loan growth outpacing non-community banks for a decade. By offering high-touch, high-tech service, community banks cater to the needs of underserved Americans, providing flexibility to low-income and minority borrowers.

Key Takeaways:

  • Community banks give more than 60% of all small-business loans and more than 80% of agriculture loans nationwide.
  • Community banks contribute tax dollars that help maintain local municipalities.
  • Community banks are favored by small businesses, earning an 81% net satisfaction score compared to 68% for large banks, 62% for finance companies, and 48% for online lenders.
  • Community banks are committed lenders with loan growth that has outpaced non-community banks for a decade.
  • Community banks offer high-touch, high-tech service, providing modern conveniences and technical capabilities while maintaining personal service.
  • Community banks have a track record in helping underserved Americans by providing greater flexibility to low-income and minority borrowers.
  • Community banks serve 93% of majority-minority communities and 96% of low-income designated counties.
  • First Federal Savings Bank was established in 1904 on Evansville, Indiana's Westside and offers services in Posey, Vanderburgh, Warrick, and Henderson County.
  • First Federal Savings Bank has a total of eight locations, including Home Building Savings Bank locations in Daviess and Pike County.

Statistics:

  • Community banks give more than 60% of all small-business loans nationwide.
  • Community banks contribute more than 80% of agriculture loans nationwide.
  • Community banks are favored by small businesses, earning an 81% net satisfaction score.
  • Community banks have loan growth that outpaces non-community banks for a decade.
  • Community banks serve 93% of majority-minority communities nationwide.
  • Community banks serve 96% of low-income designated counties nationwide.
  • First Federal Savings Bank was established in 1904.

Sources:

  • M2 Communications, "BANKING AND CREDIT NEWS-April 14, 2025-First Federal Savings Bank Teams with Independent Community Bankers of America"
  • Independent Community Bankers of America