“A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain.” — Robert Frost, American poet.

Waiting patiently for the next available teller or bank officer is an elderly person with questions on their monthly statement, a teenager applying for a loan on an automobile, one couple in need of a mortgage, and another with questions on their impending retirement.

The association with a hometown/community used to begin at an early age with a passbook savings account and would continue throughout life, helping people build wealth by providing financial services.

The hometown/community bank chose their location purposely, to be close to the largest source of funds, the central business district. It would become the financial foundation of the community, consolidating cashflow into deposits that earned a rate of return for customers by making a profit from lending. The priorities of the institution were important enough that recognized leaders of the community served on the board of directors.

“We Built This Bank for You!” — 1st National Bank.

With brick and mortar, hometown/community banks used classical architecture to design the building to make the statement, “Put your trust in us, we are here to stay.” The interior would be dominated by a spacious lobby with islands of upholstered furniture adjacent to free-standing desks, teller stations lined a wall. Private offices surrounded the remaining walls or were on another floor. The building would be head and shoulders above surrounding structures.

“Real People. Real Relationships!” — American State Bank and Trust.

The ability to work with numbers, make calculations, and understand ratios is important for a hometown/community bank employee. Green eye shade “bean-counter” types provide support, but critical to success are those who can interpret policy, apply it to a fact situation, and explain the decision to customers. These qualities make hometown/community bank employees valued participants in volunteer activities that benefit the community.

An appropriate introduction to a discussion about hometown/community banking in the nation today might begin with the phrase, “Once upon a time there was bank on the corner of…” Hometown/community banks became branches of larger national banks; the downtown location was also eroded by drive-through stations near shopping malls, automated teller machines, internet banking, and cell phone applications.

The consolidation of banking began in the 1980s. What then numbered 18,000, was just under 5,000 by 2021, according to the National Community Reinvestment Coalition. Impacting us locally, from 2017 to 2021 PNC Bank closed 418 locations and Huntington Bank Corporation closed 318. Alpena and the surrounding area have become what advocacy groups call a “financial desert.”

In the 1980s Alpena had two full-service banks in the downtown area. Each was fully staffed with a president, vice-presidents, loan officers, tellers, and support personnel. Each institution has changed its affiliation multiple times, benefiting the local sign company. Former employees that managed to stay in the area have continued to serve the community.

The elderly person that has questions, the teenager that needs an auto loan, the young couple that is applying for a mortgage, another that wants answers, are still waiting, on the phone. Now they have something in common, listening to music that is from an elevator that never reaches the top floor. Customer service, where have you gone?

“Banks are to the economy what the heart is to the human body. They cycle necessary capital through the whole, and they are barely recognized until pressure, necessity, or crises.” Hendrith Smith, author, “Essays on the Banking Industry.”

Tom Brindley grew up in Iowa, and studied journalism and accounting. He is a retired controller from Alpena Community College and has been active in local nonprofit organizations. He can be reached at bindletom@hotmail.com. Read him here the first Thursday of each month.