2021 CSBS Community Bank Case Study Competition Journal

2021 COMMUNITY BANK CASE STUDY COMPETITION

TriStar knew the firm was a major, local employer and that layoffs from such a firm closing would harm the local economy. According to the Dickson County Economic Development Authority, the firm is one of Dickson County’s top 10 largest manufacturers and distributors, employing approximately 200 local residents (n. p.). Despite that week’s chaos and the need to serve its existing clients, TriStar agreed to assist the firm. As proof of TriStar’s flexibility and swiftness, the firm’s PPP application was approved by the following Tuesday, and funds from the loan were deposited in the firm’s account by Wednesday (T. Williams, Zoom, November 4, 2020). As a true community bank, TriStar was able to move quickly and make a positive impact for many community citizens. This story is one of many in which TriStar has served its customers to provide them with a satisfactory outcome. Impact of the Pandemic on the Balance Sheet The actions taken by TriStar reflect the Bank’s eagerness to keep its communities thriving, and

examining the changes in TriStar’s balance sheet as a result of the pandemic verify this fact. Between March and May of 2020, TriStar’s commercial loans, which included $20.0 million of PPP loans, increased by 138.0% (Institutional Reports, FFIEC ). To ensure its customers received PPP funding, TriStar required its PPP borrowers to deposit their funds with the Bank. TriStar increased investment securities in 2020 because it had increased deposits (D. Sanders, E-mail, March 4, 2021). Because some of TriStar’s clients have yet to use all their PPP funding, and because individuals held more cash due to economic uncertainty, TriStar’s deposits increased by approximately 16.0% in 2020 (T. Williams, E-mail, March 10, 2021). Furthermore, stimulus checks approved by Congress in late March 2020 contributed to higher deposit balances (J. Barber, Zoom, February 26, 2021). To guarantee that TriStar had plenty of liquidity during the pandemic, the Bank also borrowed more funds than usual from the Federal Home Loan Bank (T. Williams, E-mail, March 10, 2021). TriStar demonstrated competency during the pandemic while effectively and carefully taking necessary precautions to safeguard its employees and its balance sheet against uncertainty. Actions Taken to Protect Employees and Customers During the Pandemic As the pandemic spread across the U. S., institutions and businesses needed to establish policies to protect employees as well as customers. When many businesses and institutions were ordered to shut down

As a true community bank, TriStar was able to move quickly and make a positive impact for many community citizens

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