> Small Banks vs. Large Banks

People like to go where everybody knows their name, and not just when it comes to their favorite watering hole. When searching for a bank, business owners don’t just look for high-tech services and the best rates, they look for relationships, and more often than not, they are building those relationships at community banks.

George Hopper, president of Keystone Development Group, banks at Heritage Bank because the decision makers took the time to get to know him and his business.
“I’ve had several banker relationships that have been a revolving door,” Hopper said. “You’re just a number on the computer, and every time you go in, you work with somebody different. Heritage offers old-fashioned service. They build relationships with clients and stick with you through good times and bad.”

Wes Smith, a partner at law firm Stumbo Hanson LLP, banks at Capital City Bank because of the personal service and the convenience.

“If I need to transfer money from a line of credit to an account, I can send an e-mail, and it will happen,” Smith said. “It’s almost instant turnaround.”

“When looking for a bank, it’s important for business owners to determine their banking needs ahead of time,” says Kim Rees, senior vice president and director of business banking at CoreFirst Bank & Trust. “They need to think about what type of services will help them run their business, for example, direct deposit or online banking. Do they just need checking, or do they need a flexible account structure?”

Business owners might choose a larger bank if they need to borrow more than what a community bank could lend. Large banks may also have an edge if a business operates in multiple markets, when it may be beneficial to have a banking network with branches in all markets.

“Still, with today’s technology, such as remote deposit capture, we are finding ways to bridge that distance and the need for brick and mortar,” said Bob Kobbeman, president of Capital City Bank.

Hopper said that large banks offer size and lending capacity, but they lack the speed and expertise to dig into a deal quickly.

“Heritage has turned around deals in a week,” Hopper said. “Big banks don’t give an answer back for a month or six weeks, which doesn’t work in my business.”

When Grady Golden, third-generation owner of Hygienic Cleaners, switched to Community National Bank more than 10 years ago, he walked away from a 48-year-old banking relationship that his grandfather had established. Golden was looking for a more contemporary bank.

“I wanted to build a relationship that went beyond the traditional suit and tie stuffed-shirt banking experience I was used to,” he said. “I wanted to be able to reach out and touch the people in the organization, not because of ego, but because I wanted to know who made the decisions.”

Golden knew the bank president’s wife from junior high school days, and bank personnel were customers of his dry cleaning business. He said he felt able to bear his soul about where he wanted to take the business.

His latest venture is to expand into the tuxedo business, and when he thought he had completed his due diligence, Community National made him do more.

“One night I woke up and realized that by making me spend more time on the due diligence, they forced me take a step back to see if this was something I really wanted to do,” Golden said. “I’m glad they did.”

Businesspeople should be able to look at their bank as a resource on whether it makes sense to finance or lease and financing options, Kobbeman said. Your banker should be a good consultant on how things are going in the economy, locally, regionally and nationally.