Through the decades, community bank leverages independence for customers’ benefit

This piece is sponsored by The First National Bank in Sioux Falls.

Imagine going to your local bank for a mortgage. You’ve spent months looking for the perfect home and finally found it.

Now, you sit at a banker’s desk talking about the perfect neighborhood, yard and floor plan.

After a battery of questions and forms, your banker says it’s time to wait for a decision, and they’ll call you with the news. And, by the way, you’ll have to wait for about a week for a decision.

For many hopeful homeowners in the first half of the 20th century, this was the home loan experience when working with a non-independent bank.

A non-independent bank was one with faraway headquarters. This meant decisions were made in Minneapolis, San Francisco, New York or some other distant financial hub.

Your local bank was simply a mailbox to drop off your requests.

An independent bank, on the other hand, meant the people you sat with made the calls. You’d have your loan decision within hours, not days.

This kind of speed and decisiveness could make or break futures — from residential home loans to new-business financing.

It was the difference of a community bank like The First National Bank in Sioux Falls, which has been locally owned and operated for the past 140 years.

And for about 25 years after the federal government allowed First National Bank to reopen following the Bank Holiday of 1933, it was the only independent bank in Sioux Falls.

They were the only people who could give loans and answers at the same time. This was paramount because it meant customers having people beside them who were part of the same community.

The difference of an independent community bank

First National Bank never wanted to be a conglomerate because independence is what allows the bank to build successful relationships. Company values can be aligned across the organization rather than being overwritten by a large parent corporation’s interest in profit over people.

This cleared the way for exponential growth. For 25 years, it was open-field running.

Today, FNB still sees independence as a key competitive advantage. Deeper than turn-around times on loan decisions, it fuels innovation that directly benefits customers, communities, teammates and shareholders alike.

Fierce independence means a community bank can own its vision rather than having it handed down from someplace disconnected from the heart of its community.

That long-term vision informs every quick turn and move made, allowing a community bank to be a coach and guide for decades to come.

Independence for all

Independence is the ability to know, think and act locally. Local knowledge matters because no one has a better pulse on the city than the people who live here.

First National Bank has been in business longer than South Dakota has been a state. That’s a very good thing for everyone involved: customers, communities, teammates and shareholders alike.

Phillips Avenue in the heart of downtown Sioux Falls in 1929.

Independence for customers

For entrepreneurs envisioning a market opportunity to build or buy something new, speed is of the essence. They need a responsive bank.

They don’t want to talk to a stranger for an hour, then wait for a month on a decision from Minneapolis, San Francisco or New York. Business leaders want to tell their story, get an answer and take action.

Sometimes this is the difference between success and failure, between prosperity and missed opportunity.

For independent banks, that decision is made locally. The same holds for homebuyers making offers on their dream houses or for farmers buying livestock, seed, chemicals and equipment.

They can’t wait for a month to get a lending decision; the season is clipping by, and they’re stuck without capital to invest in supplies.

Simply put, customers need swift answers to move their lives forward.

Independence for communities

First National Bank is, first and foremost, a community bank, wearing this badge with pride.

The bank’s teammates live here, work here and raise families here too. That drives decisions to charitably invest in the health of this community.

Each year, First National Bank prioritizes significant donations to organizations in our community like the Sioux Empire United Way, The Banquet, Bishop Dudley Hospitality House, local schools and fire departments, Boys and Girls Clubs, and more.

In fact, FNB thoughtfully entertains more than 250 charitable giving requests each year. More often than not, they say yes!

Just like with business decisions, these choices are made here. Nonprofits with fundraising requests talk directly to the decision-makers.

When tornadoes and flooding ravaged Sioux Falls, First National Bank was able to step up and serve, cleaning debris and helping out wherever possible. Others came and joined the volunteer and donation efforts as well.

From the onset of the 2020 pandemic, FNB was among the first local banks to offer loan payment deferrals and even loan forgiveness.

When a crisis looms, a community bank’s job is to help our communities thrive. When our communities struggle, we all do.

Independence for teammates

Now, as great as an independent community bank is for its customers and community, it’s also fantastic for its teammates. Every decision on future programs, benefits, compensation and incentives is made here.

Opportunities are inspired — and crafted — by the people within those four walls. For 140 years, First National Bank has been motivated to run well because the people whose lives are affected most work in the adjacent offices.

Whether you’re a potential customer, nonprofit in need, or prospective teammate, First National Bank has ways for you to discover the difference of a community bank:

• Start your financial journey with FNB by finding the right account.
• Submit a Community Giving Request or request volunteers for your nonprofit.
• Take the next step in your career with The First National Bank in Sioux Falls.