The ICBA 400

ICBA’s top-performing community banks STOOD TALL through the recession

By Apryl Motley

20 Saluting the ICBA 400

s part of year-end per- formance rankings of AICBA members, ICBA Independent Banker every year pulls call-report data from the FDIC to identify the top com- munity banks as measured by return on average assets (ROA) and return on average equity (ROE). The ICBA 400 list highlights the top 20 community bank per- formers in 20 asset and tax- status categories. To allow for the most equitable peer-to-peer comparisons, top-performing ICBA members are grouped by their Subchapter S corporation or Subchapter C corporation tax- filing status. Those groupings are further separated into five asset categories: banks with assets of $50 million or less; $50 million to $100 million; $100 million to $250 million; $250 million to $500 million; and more than $500 million. ICBA congratulates all the com- munity banks that earned their way onto the ranks of its ICBA 400 top-20 industry performers for 2009. See pages 26 through 34 for the lists. All community banks listed were formed before 2009 and were ICBA members as of March 31, 2010.

21 hen downsizing and cost- “How efficient we are is a staff of seven for the bank’s con- Wcutting have become the combination of many people tinued success. “One thing that management strategies du jour, doing many small things well helps us is our lack of turnover,” leaders of the ICBA 400 top-per- consistently over a period of Currie says. “We only have one forming banks of 2009 will own time.” employee who’s been here less up to only a little belt-tightening. —Joe Frampton, Paducah Bank than 10 years. With that kind Cutting costs wasn’t their primary & Trust, Paducah, Ky. of continuity, your operation strategy for maintaining—or even becomes more efficient.” improving—their bottom lines Joe Framptom, CEO of $503 during last year’s severe financial in Treynor, Iowa. Currently, the million-asset Paducah Bank & downturn. family-owned community bank Trust in Paducah, Ky., agrees that “We haven’t been aggressive in has three branches and 45 full- having a great team of people cutting expenses,” says Robert S. time-equivalent staff positions, contributes significantly to effi- Touchette, executive vice presi- including in its trust and insur- ciency. “All of our employees have dent and COO of $186 million- ance departments. “We want to a stake in the bank. They make asset City Savings Bank & Trust have more locations, more busi- decisions on a daily basis that Co. in Derider, La. “We’ve focused ness development and more have a positive long-term impact,” on growth: gaining market share education for employees,” says Framptom says. “How efficient and generating revenue.” With President and CFO Josh Guttau. we are is a combination of many seven branches and 76 employees, “Our focus is on growth and reve- people doing many small things the community bank is “the eco- nue generation, not cost-cutting.” well consistently over a period nomic engine of this community,” Fellow Iowan Scott Currie, of time.” Paducah Bank has says City Savings Bank President president of $25 million-asset five locations and 139 employ- and CEO Glen D. Bertrand. “So State Bank of Schaller, believes ees. “We concentrate on taking what we put forth in the commu- that “not being heavily loaned care of people,” Framptom adds. nity is what’s going to happen.” up and having investments with “And that translates into financial A similar philosophy drives longer relative durations” contin- results.” the management team at $180 ues to work in his community At Burke & Herbert Bank & million-asset Treynor State Bank bank’s favor. He also credits his Trust Co. in Alexandria, Va., suc- ceeding in business has been and always will be about taking care of people. “Our reputation has been built on solid, attentive, caring personal banking, whether you are a consumer or commercial customer,” says the community bank’s president and COO, W. Scott McSween. And the bank is willing to invest in maintaining that reputation. Three months ago, Burke & Herbert Bank announced to cus- tomers and new prospects that it will pay their foreign-bank ATM transaction fees. “It’s part of our long-term marketing strategy of making it more convenient for customers to do business with us,” says E. Hunt Burke, the bank’s chairman and CEO. “We recog- nize that we have to show our customers that they can have it all at Burke & Herbert.”

22 ICBA IndependentBanker June 2010 Manage Processes— Not Expenses

According to Mark Stenson, president of Eliminate processes. Some processes Stenson Management Consulting in Marshall, cannot be improved with tweaks or more Minn., creating strategies for revenue growth oversight. Don’t be afraid to eliminate inef- is critical, but improving your community ficient procedures and start over. bank’s bottom-line performance starts with improving and managing internal processes. Expand cross-training. In too many banks, 15 to 20 percent of employees shoulder Stenson recommends the following steps to the bulk of the workload. All employees help you prioritize process management: should be comfortable working in different functions and across departments. Track volumes. Use income statements, balance sheets and activity reports to Reward performance; celebrate suc- assess productivity, anticipate changes and cess. Use volume tracking and qual- respond to challenges. ity measurements to gauge individual, departmental and organizationwide Measure quality. Create systems that contributions. Recognize sales (for evaluate employee performance based on example, loan-volume goals) and service quantifiable results rather than on intan- (for example, beating a deadline) achieve- gibles like “attitude.” ments and milestones.

Burke’s sentiment was shared haven’t managed their processes resources properly. Efficiency is in various ways by other leaders effectively,” Stenson says. “They about taking apart all aspects of of the ICBA 400 top-performing don’t have measurements in place the bank and trying to get metrics community banks of 2009. They for monitoring the volume and in place.” are determined to have it all: accuracy of activities, and you Burke acknowledges that his efficient operations and satisfied can’t manage until you measure.” 158-year-old community bank customers and employees. As a To illustrate his point, Stenson has “some cobwebs that need to whole, this year’s annual perfor- cites the example of wire transfers: be cleaned out.” To do that, “we’re mance rankings show that many “Have we seen a drop in this area taking a good look at ourselves to independent community banks due to the economy? Are we at see where we can be more effi- are doing well by doing more. full capacity? If we’re not, what cient in our operations, which in are we doing about it? If you’re some cases has led to our spend- Measure and manage not asking these kinds of ques- ing more on technology and mar- According to Mark Stenson, pres- tions, then you’re not managing keting,” he says. Most recently, ident of Marshall, Minn.-based Burke & Herbert Bank engaged Stenson Management Consulting consultants to look at whether its and a longtime ICBA educa- “We want to make sure staffing levels are appropriate at tion instructor, most commu- that we’re using our profits certain hours of the day. nity banks should be focused on wisely to sow seeds for the “What’s usually very difficult resource allocation rather than future during years when for most business people is step- cost efficiencies and on manag- things may not be as good.” ping back and asking, ‘Why do ing processes instead of manag- —E. Hunt Burke, Burke & ing expenses. “Many banks really Herbert Bank, Alexandria, Va. continued on page 28

24 ICBA IndependentBanker June 2010 ROA Subchapter S Banks — Less than $50 Million Assets ROE Subchapter S Banks — Less than $50 Million Assets

Institution Name City, State ROA Institution Name City, State ROA 1 The Peoples State Bank Cherryvale, KS 4.08 1 Frontier Bank Davenport, NE 27.95 2 The First Farmers National Bank of Waurika Waurika, OK 2.93 2 Lusk State Bank Lusk, WY 25.86 3 Frontier Bank Davenport, NE 2.76 3 Peoples State Bank Summit, SD 23.53 4 The Bank of Rison Rison, AR 2.39 4 Nebraska State Bank Oshkosh, NE 22.15 5 First State Bank Watonga, OK 2.24 5 Community State Bank Hennessey, OK 21.56 6 Lusk State Bank Lusk, WY 2.23 6 The Buffalo Ridge Bank Beardsley, MN 20.80 7 Farmers State Bank Hosmer, SD 2.17 7 Western National Bank Cass Lake, MN 20.66 8 The Citizens State Bank of Cheney, Kansas Cheney, KS 2.13 8 Prairie Sun Bank Milan, MN 20.58 9 Peoples State Bank Summit, SD 2.11 9 The Cowboy Bank Maypearl, TX 20.52 9 Bank of Rothville Rothville, MO 2.11 10 Liberty State Bank Powers Lake, ND 19.95 11 First Security Bank of Roundup Roundup, MT 2.08 11 Farmers State Bank Allen, OK 19.59 11 Drayton State Bank Drayton, ND 2.08 12 First State Bank Watonga, OK 19.57 13 Welcome State Bank Welcome, MN 2.07 13 Welcome State Bank Welcome, MN 19.44 14 Altura State Bank Altura, MN 2.05 14 Farmers National Bank of Griggsville Griggsville, IL 18.10 15 Home State Bank Royal, IA 2.02 15 The Bank of Whitewater Whitewater, KS 18.04 16 Clarkson Bank Clarkson, NE 1.99 16 First Security Bank of Roundup Roundup, MT 17.98 17 Bank of Prague Prague, NE 1.97 17 Little River Bank Lepanto, AR 17.96 17 Nebraska State Bank Oshkosh, NE 1.97 18 Drayton State Bank Drayton, ND 17.91 19 State Bank Gresham, WI 1.93 19 Citizens State Bank of Glenville Glenville, MN 17.26 20 The Cowboy Bank Maypearl, TX 1.91 20 American State Bank of Grygla Grygla, MN 17.09

ROA Subchapter S Banks — $50–100 Million Assets ROE Subchapter S Banks — $50–100 Million Assets

Institution Name City, State ROA Institution Name City, State ROA 1 Corydon State Bank Corydon, IA 3.07 1 State Bank of New Richland New Richland, MN 33.43 2 Peoples State Bank Rocksprings, TX 2.74 2 Security State Bank Ansley, NE 33.29 3 Farmers and Merchants Bank of Kendall Kendall, WI 2.73 3 Wilburton State Bank Wilburton, OK 29.89 4 The City National Bank of Colorado City Colorado City, TX 2.71 4 Bank of Dade Trenton, GA 28.87 5 Security State Bank Ansley, NE 2.62 5 Wells Bank of Platte City Platte City, MO 27.86 6 Solon State Bank Solon, IA 2.50 6 The First National Bank of Stigler Stigler, OK 27.37 7 State Bank of New Richland New Richland, MN 2.48 7 Farmers and Merchants Bank of Kendall Kendall, WI 27.11 8 The State Bank of Wynnewood Wynnewood, OK 2.33 8 First Valley Bank Seeley Lake, MT 26.40

The ICBA 8 The First National Bank of Stigler Stigler, OK 2.33 9 Bank Northwest Hamilton, MO 24.40 8 The Farmers Bank Carnegie, OK 2.33 10 Peoples Bank & Trust Co. Owenton, KY 23.46 11 Union Bank & Trust Co. Livingston, TN 2.31 11 Westside State Bank Halbur, IA 23.04 400 12 Westside State Bank Halbur, IA 2.26 12 Farmers and Merchants State Bank Plankinton, SD 23.03 13 Wells Bank of Platte City Platte City, MO 2.25 12 The Farmers Bank Carnegie, OK 23.03 14 First Valley Bank Seeley Lake, MT 2.24 14 Union Bank & Trust Co. Livingston, TN 23.00 15 The Farmers and Merchants National Bank of Fairview Fairview, OK 2.23 15 Security State Bank Sutherland, IA 22.49 15 Kaplan State Bank Kaplan, LA 2.23 16 The City National Bank of Colorado City Colorado City, TX 22.32 17 Cleo State Bank Cleo Springs, OK 2.22 17 Brunswick State Bank Brunswick, NE 22.08 18 Farmers and Merchants State Bank Plankinton, SD 2.19 18 Farmers and Merchants State Bank of Blooming Prairie Blooming Prairie, MN 22.02 19 Wilburton State Bank Wilburton, OK 2.18 19 State Bank of Kimball Kimball, MN 21.39 20 Sargent County Bank Forman, ND 2.17 20 Citizens State Bank Miles, TX 21.20

ROA Subchapter S Banks — $100–250 Million Assets ROE Subchapter S Banks — $100–250 Million Assets

Institution Name City, State ROA Institution Name City, State ROA 1 Central Bank and Trust Lander, WY 8.22 1 Central Bank and Trust Lander, WY 83.91 2 Central Bank of Kansas City Kansas City, MO 3.78 2 Central Bank of Kansas City Kansas City, MO 32.12 3 First National Bank of Picayune Picayune, MS 2.59 3 Community Bank Longview, TX 31.14 4 Peoples Community State Bank Doniphan, MO 2.57 4 Welch State Bank Welch, OK 30.40 5 First Bank, Upper Michigan Gladstone, MI 2.55 5 Unico Bank Irondale, MO 28.92 6 Muenster State Bank Muenster, TX 2.53 6 The Carlsbad National Bank Carlsbad, NM 27.37 7 Pearland State Bank Pearland, TX 2.45 7 Delta Bank Vidalia, LA 26.11 8 The Bank Oberlin, KS 2.43 8 First National Bank of Picayune Picayune, MS 24.74 8 The National Bank of Andrews Andrews, TX 2.43 9 The First State Bank Louise, TX 24.68 10 Montrose Bank Montrose, CO 2.42 10 Montrose Bank Montrose, CO 24.58 11 First National Bank of Alvin Alvin, TX 2.41 11 City Bank & Trust Co. Natchitoches, LA 24.48 12 Unico Bank Irondale, MO 2.40 12 Peoples Bank Paris, TX 24.36 13 Welch State Bank Welch, OK 2.35 13 The Union Bank of Mena Mena, AR 24.30 14 Drummond Community Bank Chiefland, FL 2.31 14 The National Bank of Andrews Andrews, TX 24.29 15 City Savings Bank & Trust Co. Deridder, LA 2.28 14 Valley Bank of Commerce Roswell, NM 24.29 16 Lamar Bank and Trust Co. Lamar, MO 2.23 16 The Bank Oberlin, KS 24.14 17 City Bank & Trust Co. Natchitoches, LA 2.21 17 Bank of Montgomery Montgomery, LA 23.75 17 First State Bank of Burnet Burnet, TX 2.21 18 First National Bank Ruston, LA 23.66 19 The Bank of Advance Advance, MO 2.15 19 Lamar Bank and Trust Co. Lamar, MO 23.37 19 The Central National Bank of Poteau Poteau, OK 2.15 20 Four Corners Community Bank Farmington, NM 23.21

26 ICBA IndependentBanker June 2010 ROA Subchapter S Banks — $250–500 Million Assets ROE Subchapter S Banks — $250–500 Million Assets

Institution Name City, State ROA Institution Name City, State ROA 1 Benchmark Bank Plano, TX 3.22 1 Benchmark Bank Plano, TX 37.42 2 Texas Bank Brownwood, TX 2.92 2 Texas Bank Brownwood, TX 31.22 3 Citizens Bank of Las Cruces Las Cruces, NM 2.44 3 Citizens Bank of Las Cruces Las Cruces, NM 27.77 4 First National Bank & Trust Co. of McAlester McAlester, OK 2.38 4 Quail Creek Bank, N.A. Oklahoma City, OK 26.80 5 Quail Creek Bank, N.A. Oklahoma City, OK 2.29 5 First Bank of Berne Berne, IN 23.93 5 St. Martin Bank and Trust Co. Saint Martinville, LA 2.29 6 Community Bank of Louisiana Mansfield, LA 23.83 7 Western Commerce Bank Carlsbad, NM 2.27 7 Western Commerce Bank Carlsbad, NM 23.34 8 First Bank of Berne Berne, IN 2.20 8 The First National Bank of Albany Albany, TX 22.78 9 Community Bank of Louisiana Mansfield, LA 2.15 9 The Paducah Bank and Trust Co. Paducah, KY 22.61 10 The First National Bank of Albany Albany, TX 2.13 10 Phelps County Bank Rolla, MO 22.38 11 First Fidelity Bank Burke, SD 2.11 11 The Converse County Bank Douglas, WY 22.22 12 First National Bank in Alamogordo Alamogordo, NM 2.10 12 First National Bank of Central Texas Waco, TX 21.08 13 The Paducah Bank and Trust Co. Paducah, KY 2.08 12 American State Bank & Trust Co. of Williston Williston, ND 21.08 14 Pioneer Bank & Trust Spearfish, SD 2.01 14 St. Martin Bank and Trust Co. Saint Martinville, LA 19.68 15 The Converse County Bank Douglas, WY 1.97 15 The Bank, N.A. McAlester, OK 19.37 16 Phelps County Bank Rolla, MO 1.83 16 Pioneer Bank & Trust Spearfish, SD 19.19 17 Town & Country Bank Salem, MO 1.80 17 First Fidelity Bank Burke, SD 19.10 18 Fidelity National Bank West Memphis, AR 1.75 18 First National Bank & Trust Co. of McAlester McAlester, OK 19.01 18 The Yellowstone Bank Laurel, MT 1.75 19 Community Bank Fort Worth, TX 18.87 20 The Harvard State Bank Harvard, IL 1.74 20 Dakota Community Bank, N.A. Hebron, ND 18.82

ROA Subchapter S Banks — More than $500 Million Assets ROE Subchapter S Banks — More than $500 Million Assets

Institution Name City, State ROA Institution Name City, State ROA 1 Stearns Bank, N.A. Saint Cloud, MN 3.56 1 Woodforest National Bank Houston, TX 30.46 2 Crown Bank Brick, NJ 3.06 2 The Citizens Bank Farmington, NM 27.36 3 Woodforest National Bank Houston, TX 2.94 3 First National Bank Texas Killeen, TX 27.06 4 Frontier State Bank Oklahoma City, OK 2.66 4 First American Bank Artesia, NM 26.80 5 The Citizens Bank Farmington, NM 2.28 5 Frontier State Bank Oklahoma City, OK 26.52 The ICBA 6 First National Bank Texas Killeen, TX 2.23 6 Crown Bank Brick, NJ 23.19 7 First American Bank Artesia, NM 2.13 7 Bank of the West El Paso, TX 22.70 400 8 Citizens National Bank of Texas Waxahachie, TX 2.02 8 Stearns Bank, N.A. Saint Cloud, MN 22.11 9 Bank of the West El Paso, TX 1.91 9 First Financial Bank El Dorado, AR 21.38 10 Amarillo National Bank Amarillo, TX 1.90 10 Guaranty Bond Bank Mount Pleasant, TX 21.26 10 First Financial Bank El Dorado, AR 1.90 11 Amarillo National Bank Amarillo, TX 21.10 12 United Bank of Iowa Ida Grove, IA 1.81 12 Pinnacle Bank - Wyoming Torrington, WY 21.04 12 Pinnacle Bank Lincoln, NE 1.81 13 Citizens National Bank of Texas Waxahachie, TX 20.90 14 Stockman Bank of Montana Miles City, MT 1.80 14 The Citizens National Bank of Bluffton Bluffton, OH 20.83 14 Pinnacle Bank - Wyoming Torrington, WY 1.80 15 Morton Community Bank Morton, IL 20.63 16 The First National Bank of Bemidji Bemidji, MN 1.75 16 United Bank of Iowa Ida Grove, IA 20.34 17 Security National Bank of Omaha Omaha, NE 1.72 17 Pinnacle Bank Lincoln, NE 19.21 17 Morton Community Bank Morton, IL 1.72 18 Stockman Bank of Montana Miles City, MT 17.66 19 Heartland Bank and Trust Co. Bloomington, IL 1.71 19 Security National Bank of Omaha Omaha, NE 17.54 20 Guaranty Bond Bank Mount Pleasant, TX 1.67 20 The First National Bank of Santa Fe Santa Fe, NM 16.52

continued from page 24 were part of a co-op for data pro- These examples illustrate top- cessing. “Becoming a part of the performing community banks we do it that way?’” McSween co-op could save us as much as taking measured approaches to says. “Is there a better way? It’s $200,000,” Bertrand says. changing their operations. In important to think about this in Treynor State also evaluated some instances, postponing deci- two ways: Can it be done more various operations with particular sions can be better in the long efficiently and how might that focus on tightening risk-review run. Such was the case with State impact customer service.” processes. Traditionally, senior Bank of Schaller’s conversion to Keeping customer service con- loan officer and chief credit offi- check imaging in 2008. From stant was a primary consideration cer were one job, but this year the Currie’s perspective, the technol- when City Savings Bank made community bank created a new ogy became more affordable for the tough decision to change credit risk manager position and the bank over time, and “because its data-processing vendor. Two a new team of credit risk analysts. we’re small, there wouldn’t have years ago the bank merged with “We want to get ahead of any been much cost savings by doing two other community banks that problems,” Guttau says. it sooner than we did.”

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ICBA_Ad_Stay_On_Top_5_2010.indd 1 5/4/10 3:13 PM People and purpose Probably the most difficult deci- sions any business makes in an economic downturn involve Ratios people. Although employee com- pensation and benefits are among all community banks’ largest expenses, typically they are reluc- tant to reduce staff or employee benefits. “There are a lot of other areas that I would look to cut first,” onthe Guttau says. “Employees are an investment and not an expense. Rebound We could probably cut 10 per- cent of the staff right now and be fine in the short term, but we plan to grow.” Guttau’s father and As the economy begins to recover, there Treynor State Bank’s chairman are signs of improvement in overall indus- and CEO, Mick Guttau, concurs: try performance. Industrywide average “The troops come first. We’ve return on assets (ROA) increased slightly done a good job of communicat- in 2009, from 0.03 percent in 2008 to ing that they’re secure in their 0.09 percent. This is still well below the jobs, and this has been a real average ROA of 0.81 percent in 2007 and motivator for employees.” 1.28 percent in 2006. Community banks with less than $100 “Employees are an million in assets fared best, with an investment not average ROA of 0.25 percent in 2009. In an expense. We contrast, larger institutions with assets could probably between $1 billion and $10 billion in cut 10 percent assets posted an average ROA of minus of the staff right 0.30 percent. now and be fine Similarly, industrywide average return in the short on equity (ROE) increased slightly from term, but we 0.79 in 2008 to 0.90 percent. However, plan to grow.” in contrast to their year-end ROA figures, —Josh Guttau, community banks with less than $100 Trey n or Stat e Ba n k , million in assets posted an average ROE Treynor, Iowa of only 0.13 percent in 2009, while banks with greater than $10 billion in assets posted an average ROE of 1.56 percent. It’s likely that employees also feel secure in the knowledge that Treynor State Bank continues to Source: FDIC Quarterly Banking Profile – 2010, Vol. invest in their professional devel- 4, No. 1, and 2009, Vol. 3, No. 1 opment. This year the bank is budgeted to spend $3,500 per full-time-equivalent staff position on training as opposed to $2,000

continued on page 34

30 ICBA IndependentBanker June 2010 ROA Subchapter C Banks — Less than $50 Million Assets ROE Subchapter C Banks — Less than $50 Million Assets

Institution Name City, State ROA Institution Name City, State ROA 1 State Bank of Schaller Schaller, IA 1.91 1 State Bank of Schaller Schaller, IA 17.09 2 State Bank of Scotia Scotia, NE 1.77 2 The Bank of Wyandotte Wyandotte, OK 14.20 3 Bank of Paxton Paxton, NE 1.63 3 Progressive National Bank of Desoto Parish Mansfield, LA 13.40 4 Benton County State Bank Blairstown, IA 1.52 4 Grapeland State Bank Grapeland, TX 12.83 5 First State Bank of Saint Peter Saint Peter, IL 1.49 5 Hiawatha National Bank Hager City, WI 12.16 6 Washita Valley Bank Fort Cobb, OK 1.45 6 Farmers National Bank of Newcastle Newcastle, TX 12.03 7 The Santa Anna National Bank Santa Anna, TX 1.43 7 Gates Banking and Trust Co. Gates, TN 11.97 7 Bank of Marquette Marquette, NE 1.43 8 First State Bank of Wilton Wilton, ND 11.85 7 The Hershey State Bank Hershey, NE 1.43 9 Bank of Paxton Paxton, NE 11.57 10 Hiawatha National Bank Hager City, WI 1.42 10 Farmers and Merchants Bank Milligan, NE 11.49 11 Ipswich State Bank Ipswich, SD 1.40 11 The Commercial Bank Mason, TX 11.32 12 Garfield County Bank Jordan, MT 1.39 12 Walker State Bank Walker, IA 11.11 13 First State Bank of Wilton Wilton, ND 1.34 13 Garfield County Bank Jordan, MT 11.01 14 Chambers State Bank Chambers, NE 1.31 14 Benton County State Bank Blairstown, IA 10.95 15 Gates Banking and Trust Co. Gates, TN 1.30 15 The First State Bank Boise City, OK 10.69 16 Southwest National Bank Weatherford, OK 1.29 16 The First State Bank Kiowa, KS 10.50 17 Montrose Savings Bank Montrose, MO 1.26 17 Menno State Bank Menno, SD 10.47 18 The First State Bank of Ransom Ransom, KS 1.25 18 Chester County Bank Henderson, TN 10.41 19 The First State Bank Kiowa, KS 1.23 19 Montrose Savings Bank Montrose, MO 10.27 20 First State Bank in Temple Temple, OK 1.22 20 Peoples State Bank of Colfax Colfax, IL 10.24

ROA Subchapter C Banks — $50–100 Million Assets ROE Subchapter C Banks — $50–100 Million Assets

Institution Name City, State ROA Institution Name City, State ROA 1 Commercial State Bank Republican City, NE 1.97 1 Community Bank Bristow, OK 23.19 2 The State Exchange Bank Lamont, OK 1.92 2 The State Exchange Bank Lamont, OK 22.15 3 The Citizen’s State Bank of Choteau, Montana Choteau, MT 1.77 3 Atkins Savings Bank & Trust Atkins, IA 20.23 4 The First State Bank of Shelby Shelby, MT 1.76 4 The First National Bank of Ogden Ogden, IL 18.18 5 The Farmers Bank Hardinsburg, KY 1.75 5 Citizens Savings Bank Spillville, IA 15.25 6 Community Bank Bristow, OK 1.68 6 Piggott State Bank Piggott, AR 14.82 7 Peoples-Webster County Bank Red Cloud, NE 1.63 7 People’s Bank of Seneca Seneca, MO 14.27 8 The Ottoville Bank Co. Ottoville, OH 1.54 8 Mainstreet Bank Ashland, MO 14.13

The ICBA 9 Piggott State Bank Piggott, AR 1.51 9 Community State Bank Coffeyville, KS 13.87 10 Farmers State Bank Hillsboro, WI 1.49 10 Farmers & Merchants State Bank Iroquois, SD 13.65 11 Bank of Cairo and Moberly Moberly, MO 1.45 11 First State Bank Loomis, NE 13.18 400 11 First New Mexico Bank of Silver City Silver City, NM 1.45 12 Farmers Savings Bank Wever, IA 12.67 13 Citizens Savings Bank Spillville, IA 1.43 13 First New Mexico Bank of Silver City Silver City, NM 12.46 14 The First National Bank of Fairfield Fairfield, MT 1.42 14 First State Bank of Mobeetie Mobeetie, TX 12.39 14 Atkins Savings Bank & Trust Atkins, IA 1.42 15 Star Bank of Texas Fort Worth, TX 12.34 16 Farmers & Merchants State Bank Iroquois, SD 1.41 16 Palmer Bank Taylorville, IL 12.32 17 Greensburg State Bank Greensburg, KS 1.37 17 Bank of the Valley Bellwood, NE 12.27 17 Richardson County Bank & Trust Co. Falls City, NE 1.37 18 Bank of Brenham, N.A. Brenham, TX 12.19 19 Security State Bank of Wewoka, Oklahoma Wewoka, OK 1.36 19 Commercial Bank of Mott Mott, ND 12.06 20 Leitchfield Deposit Bank & Trust Co. Leitchfield, KY 1.35 20 Sibley State Bank Sibley, IA 12.04

ROA Subchapter C Banks — $100–250 Million Assets ROE Subchapter C Banks — $100–250 Million Assets

Institution Name City, State ROA Institution Name City, State ROA 1 Treynor State Bank Treynor, IA 2.49 1 Treynor State Bank Treynor, IA 33.05 2 First Financial Bank, N.A. Mineral Wells, TX 2.13 2 Security First National Bank of Hugo Hugo, OK 27.51 2 Security First National Bank of Hugo Hugo, OK 2.13 3 FirstBank of Adams County Thornton, CO 23.30 4 Mississippi River Bank Belle Chasse, LA 1.79 4 FirstBank of Parker Parker, CO 20.49 5 The First National Bank of Izard County Calico Rock, AR 1.73 5 FirstBank of Colorado Springs Colorado Springs, CO 19.40 6 West Central Georgia Bank Thomaston, GA 1.63 6 FirstBank of El Paso County Colorado Springs, CO 19.15 7 First Bank of Montana Lewistown, MT 1.60 7 Gibsland Bank & Trust Co. Gibsland, LA 17.94 8 Farmers and Merchants Bank Lafayette, AL 1.59 8 Bank of England England, AR 17.20 8 Bank of England England, AR 1.59 9 The Exchange National Bank and Trust Co.of Atchison Atchison, KS 16.53 8 The Saint Henry Bank Saint Henry, OH 1.59 10 First Financial Bank, N.A. Mineral Wells, TX 16.33 11 The Exchange National Bank and Trust Co. of Atchison Atchison, KS 1.54 11 1st State Bank Saginaw, MI 16.11 11 Farmers and Drovers Bank Council Grove, KS 1.54 12 Mississippi River Bank Belle Chasse, LA 15.97 13 Citizens State Bank Sealy, TX 1.52 13 FirstBank of Evergreen Evergreen, CO 15.46 14 Bank of Crockett Bells, TN 1.49 14 Small Town Bank Wedowee, AL 14.36 14 Small Town Bank Wedowee, AL 1.49 15 Citizens State Bank Sealy, TX 14.24 14 FirstBank of Adams County Thornton, CO 1.49 16 De Witt Bank & Trust Co. de Witt, IA 13.96 17 Gibsland Bank & Trust Co. Gibsland, LA 1.45 17 Bank of Mount Hope Inc. Mount Hope, WV 13.89 17 First New Mexico Bank Deming, NM 1.45 18 Central Valley Bank Yakima, WA 13.42 19 First Bank of Boaz Boaz, AL 1.43 19 State Bank Freeport, IL 13.40 20 FirstBank of Colorado Springs Colorado Springs, CO 1.41 20 First National Bank of Louisiana Crowley, LA 13.33

32 ICBA IndependentBanker June 2010 ROA Subchapter C Banks — $250–500 Million Assets ROE Subchapter C Banks — $250–500 Million Assets

Institution Name City, State ROA Institution Name City, State ROA 1 Pioneer Trust Bank, N.A. Salem, OR 2.43 1 FirstBank of Arvada Arvada, CO 30.60 2 Valley Bank of Helena Helena, MT 2.11 2 FirstBank North Arvada, CO 27.67 3 The Fort Sill National Bank Fort Sill, OK 2.09 3 FirstBank of Arapahoe County Centennial, CO 27.06 4 FirstBank of Summit County Silverthorne, CO 2.02 4 FirstBank of Cherry Creek Denver, CO 25.72 5 FirstBank of Avon Avon, CO 1.86 5 FirstBank of Summit County Silverthorne, CO 25.55 6 FirstBank of Douglas County Castle Rock, CO 1.85 6 FirstBank of Avon Avon, CO 24.60 7 FirstBank of Arvada Arvada, CO 1.84 7 FirstBank of Lakewood Lakewood, CO 24.44 8 FirstBank of Arapahoe County Centennial, CO 1.83 8 FirstBank of Littleton Littleton, CO 24.42 9 Citizens Bank Carthage, TN 1.82 9 FirstBank of Wheat Ridge Wheat Ridge, CO 23.09 10 Independence Bank Havre, MT 1.76 10 FirstBank of Aurora Aurora, CO 22.47 11 FirstBank of Littleton Littleton, CO 1.74 11 FirstBank of Vail Vail, CO 21.59 12 Community National Bank & Trust of Texas Corsicana, TX 1.73 12 FirstBank of Douglas County Castle Rock, CO 21.32 13 Industry State Bank Industry, TX 1.67 13 FirstBank of Longmont Longmont, CO 20.46 14 FirstBank of Vail Vail, CO 1.66 14 FirstBank of Tech Center Englewood, CO 20.38 15 FirstBank North Arvada, CO 1.64 15 Valley Bank of Helena Helena, MT 19.72 15 FirstBank of Cherry Creek Denver, CO 1.64 16 Industry State Bank Industry, TX 19.40 17 FirstBank of Denver Denver, CO 1.61 17 FirstBank of Northern Colorado Fort Collins, CO 18.85 17 FirstBank of Lakewood Lakewood, CO 1.61 18 Minster Bank Minster, OH 17.82 19 FirstBank of Tech Center Englewood, CO 1.59 19 FirstBank of Denver Denver, CO 17.53 20 Bank of Prairie du Sac Prairie Du Sac, WI 1.55 20 Pioneer Trust Bank, N.A. Salem, OR 17.11

ROA Subchapter C Banks — More than $500 Million Assets ROE Subchapter C Banks — More than $500 Million Assets

Institution Name City, State ROA Institution Name City, State ROA 1 Lake Forest Bank and Trust Co. Lake Forest, IL 6.27 1 Lake Forest Bank and Trust Co. Lake Forest, IL 70.91 2 Midland States Bank Effingham, IL 3.54 2 Midland States Bank Effingham, IL 34.14 3 First Federal Bank of Florida Lake City, FL 2.60 3 FirstBank of South Jeffco Littleton, CO 29.39 4 First National Bank Fort Pierre, SD 2.15 4 FirstBank of Boulder Boulder, CO 27.46 5 FirstBank of South Jeffco Littleton, CO 2.00 5 FirstBank of Colorado Lakewood, CO 27.32

The ICBA 6 FirstBank of Colorado Lakewood, CO 1.99 6 First Federal Bank of Florida Lake City, FL 24.21 6 First Bank Troy, NC 1.99 7 Tompkins Trust Co. Ithaca, NY 21.86 400 8 FirstBank of Boulder Boulder, CO 1.90 8 City National Bank of West Virginia Charleston, WV 18.29 9 Burke & Herbert Bank & Trust Co. Alexandria, VA 1.75 9 Burke & Herbert Bank & Trust Co. Alexandria, VA 18.19 10 Stonegate Bank Fort Lauderdale, FL 1.69 10 First Bank Troy, NC 17.65 11 City National Bank of West Virginia Charleston, WV 1.68 11 First Citizens National Bank Mansfield, PA 17.37 12 Cameron State Bank Lake Charles, LA 1.65 12 First State Bank Mendota, IL 17.35 13 First Citizens National Bank Mansfield, PA 1.48 13 Jersey Shore State Bank Williamsport, PA 17.30 14 First Security Bank Searcy, AR 1.45 14 Cameron State Bank Lake Charles, LA 16.42 15 Tompkins Trust Co. Ithaca, NY 1.44 15 First Security Bank Searcy, AR 16.06 16 Wayne Bank Honesdale, PA 1.42 16 Urban Trust Bank Lake Mary, FL 16.00 16 First State Bank Mendota, IL 1.42 17 The Bridgehampton National Bank Bridgehampton, NY 15.56 18 Jeff Davis Bank & Trust Co. Jennings, LA 1.38 18 Peoples National Bank Hallstead, PA 15.06 18 Security State Bank and Trust Fredericksburg, TX 1.38 19 First National Bank of Omaha Omaha, NE 14.49 20 Jersey Shore State Bank Williamsport, PA 1.37 20 Stonegate Bank Fort Lauderdale, FL 14.30

continued from page 30 Framptom says. “Many of these Loans and losses decisions are made at the depart- By far, community banks did not per position last year. “Training ment level where employees regu- engage in the risky lending that has to go deep in the organiza- larly analyze costs and expenses. perpetuated the financial crisis, tion for employees to have own- For example, the decision not to which resulted in many other ership,” Mick Guttau adds. “We fill a vacant position was made at businesses reducing staff. A qual- want people to think and make the departmental level.” ity loan portfolio remains the gold decisions.” It’s in this same spirit that City standard of success in prosper- Paducah Bank & Trust also Savings Bank and Paducah Bank ous and difficult times, ICBA 400 empowers its employees that & Trust introduced incentive- community banks agree. “The way. “Efficiency takes daily acts pay plans for their employees. team that has led lending in this of awareness and evaluation. You “We’re all co-owners, and we try neck of the woods has done a never know when an opportu- to spend our own money wisely,” phenomenal job of making good nity for savings will present itself,” Framptom says. loan decisions,” says McSween of

34 ICBA IndependentBanker June 2010 While cutting costs wasn’t their primary focus during last year’s economic downturn, top-performing com- munity banks foster cost-conscious work envi- Creating ronments. Here are some of the ways they’ve a Culture incorporated cost savings into their cultures. Monitoring utilities. Paducah Bank & Trust in Paducah, Ky., recently installed thermostats to control its air-condi- of tioning and heating units so they don’t run after hours. Cost Bringing staff together. City Savings Bank & Trust in Derider, La., held a meeting with staff in early 2009 to dis- cuss FDIC insurance-premium increases. “While not focused Savings on cost-cutting measures, we did pull a group together

Burke & Herbert Bank. “We were much more rooted in practicing good banking at a time when others were chasing profits by going after [loans] outside their areas of expertise.” Staying true to the bank’s lend- ing standards during difficult times has positioned Treynor State Bank to move forward from a position of strength. “On the loan side, we barely put any loan participations on the books,” Guttau says. “We didn’t push loan officers to make loans that they weren’t comfortable with.” About 10 years ago, Paducah Bank & Trust changed its credit culture to focus on keeping a clean portfolio. “Our loan officers are not paid on volume. They make the right loans for the right reasons,” bank President Wally Bateman says. “Our loan officers are also very proactive in bringing problems to our attention. That’s not the case at some banks.” Most problems can be avoided if community banks practice traditional conservative under- writing. “We have to stick to the fundamentals of good credit cri- teria. This whole mess was started by people who threw that away,” says City Savings Bank’s Bertrand. “We can make good loans in slow

36 ICBA IndependentBanker June 2010 to look at where we could save money,” says the bank’s executive vice president and COO, Robert S. Touchette.

Sharing financial information. John Durbin, Paducah Bank & Trust’s CFO, presents a monthly financial report to all staff. “Some bankers are reluctant to share financial information with staff, which makes no sense,” Durbin says.

Leveraging vendor relationships. Whether it’s your health-care provider or your core processor, regularly meet with your bank’s vendors to discuss potential cost savings. They are a good source for keeping you abreast of changes in the marketplace.

times, but we can’t take chances Framptom agrees. “I really when someone has a history of wonder how thousands of small not paying.” banks will be able to afford to While the quality of City outsource or hire people to Savings Bank’s agricultural port- handle the implementation and folio has improved, State Bank tracking of all the changes.” of Schaller’s Currie is concerned If regulatory issues weren’t that the value of its commercial enough to contend with, there portfolio has slipped. “The best is always concern about risk, way to address this with all your particularly interest-rate risk. borrowers is to encourage loan “Managing margins is going customers to make budgets that to be extremely important,” work based on this year’s or, Touchette says. Burke, with better yet, last year’s income, Burke & Herbert Bank, shares rather than placing too much his concern: “We’re trying to YOU reliance on projected future look ahead to what’s going to are growth. earnings,” he says. happen when deposit rates go In addition to their concerns up. Our cost of funds is very The growth of community banking is not a zero regarding decreasing credit cheap, which is helping the quality, even the most successful bottom line. We want to make sum game. Join the most profitable community community banks are worried sure that we’re using our prof- banks in the country by offering payment about the barrage of regulatory its wisely to sow seeds for the changes expected from Congress future during years when things solutions through ICBA Bancard. Make 2010 and the Obama administration may not be as good.” the year that your bank, your community and enacting financial reform leg- To perform well, community islation this year. “Even though banks must continually moni- community banks as a whole grow together. we’re a high-performing bank, tor and manage risk in a rapidly It’s time to grow! this regulatory environment is changing environment. “It’s not a challenge,” says Treynor State over yet,” Mick Guttau says. “We Bank’s Josh Guttau. “Although need to make sure that we have we have clean assets, regula- plans B, C and D—and the abil- tors don’t like to see that we’re ity to implement them—in our growing.” pockets.” “Regulatory burden from Washington, D.C., will be the Apryl Motley is a communications greatest challenge we face,” consultant in Columbia, Md. One Mission. Community Banks.®

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