April is Community Banking Month, a time to honor the spirit of community banks and our commitment to the neighborhoods we serve. Community Banks are more than just places to keep your money safe; we are essential to the backbone of our cities and towns, helping local economies thrive and fostering meaningful relationships with residents and businesses alike.

What Is a Community Bank?
Community banks are locally operated financial institutions that focus on serving the needs of the areas we operate in. Unlike large, national banks, community banks emphasize relationship banking and prioritize investing in our customers and neighborhoods. Community banks are also small businesses ourselves, making us highly responsive and adaptable to the specific needs of our communities.

Are Community Banks and Credit Unions the Same?

While both community banks and credit unions are valuable financial institutions, they are different in key ways.

Ownership

Community banks are owned by shareholders, while credit unions are collectively owned by their members. This means credit unions primarily do business with their own membership base.

Taxes and Support
Community banks contribute to local, state, and federal economies through income taxes, offering significant tax support. On the other hand, credit unions do not pay any income taxes.
Insurance
Deposits at community banks are insured by the Federal Deposit Insurance Corporation (FDIC), providing peace of mind for depositors. Credit union deposits are insured by the National Credit Union Administration (NCUA), a separate entity.

To sum up, while credit unions can be good financial partners for some, community banks’ broader focus on serving our community and significant contributions to neighborhood economies make community banks an invaluable resource for local growth and prosperity.

The Power of Relationship Banking
On the surface, banking might often feel like a series of impersonal transactions, but community banks turn that perception on its head with the concept of "relationship banking." This approach recognizes that financial decisions are deeply personal and often tied to larger life goals, such as buying a home, starting a business, or funding an education.

When you work with a community bank, your local banker takes the time to get to know you—not just your financial records, but your story, ambitions, and needs. This personal relationship can make all the difference. Whether it’s securing that first mortgage, obtaining a small business loan, or resolving an unexpected financial challenge, having a trusted partner who understands your unique circumstances can lead to outcomes that go far beyond numbers on a spreadsheet.

Thank you for banking at a community bank!