That’s right. We’re proud to be a community bank with the privilege of serving great communities. And because we’re a community bank, we are able to focus attention on the financial needs of local families, businesses, and farmers. We don’t take deposits in one state and lend in others – we channel our loans to the neighborhoods where our customers live and work, helping to keep local communities vibrant and growing. As a matter of fact, our new lobby poster tells the story of how your deposits are recycled back into the community in the form of loans to individuals and businesses. That’s the community banking difference.
You may have read or heard that recent changes in the marketplace have led some large financial institutions to increase bank debit card fees. The Federal Reserve Board’s rule implementing the “Durbin Amendment” took effect on October 1st and affects large national banks with assets of $10 billion or more. According to an October 4th memo to the members of the Senate and House of Representatives from Frank Keating, President and CEO of the American Bankers Association (ABA), “By capping the fees merchants pay for the value and efficiencies that debit card use brings to their operations, government intervention into this functioning market has fundamentally altered the economics of offering debit cards to consumers. Banks that are losing money on every debit transaction must move away from offering low cost debit choices.”
Smaller banks are hoping to remain exempt from the new laws, but many are skeptical and are watching closely. And, although merchants said that they would cut prices thanks to increased fee revenue received from the new debit interchange law, it is uncertain if this extra revenue will be passed down to the consumer in the form of savings. It may turn out that the only beneficiaries from the legislation are the big-box retailers who will see their profits significantly increase. And if they do reduce prices, any savings realized will be offset by the bank fees that consumers will now pay for debit card usage.
As the banking industry remains in the spotlight during our nation’s struggle toward economic recovery, it is important for you to know that there is a significant difference between large national banks and smaller community banks, like CNB. We have a responsibility to our shareholders, our customers, and our employees to be a well-capitalized and well-managed institution, and to that end we have been successful for over 77 years.