2023 Community Bank Case Study Competition Journal

SECOND PLACE: Iowa State University

Conclusion As Peoples Savings Bank prepares to celebrate its 25th anniversary in 2023, it can be proud to have successfully served the rural communities in which they are located. De Novo banks are started just like any small business with optimism and visions of growth. The bank has assessed the demographics, market shares, and gaps in service to expand its offerings through rural Southern Iowa. PSB’s company culture and customer service focus allow the bank to recruit and retain both customers and employees successfully. PSB’s succession plan allows it to prepare for a leadership change that will supplement its growth and innovation mindset. Further technological innovation is expected to add to the bank’s success. It appears PSB’s growth strategy has the makings of a success story. The bank has put in the work and taken advantage of opportunities to be more than just a De Novo survivor. Free of credit risk distractions and with proper use of the sundown rule, PSB appears wired for growth and is positioned to flourish in a target-rich environment. A mindset of patience and discipline has served the PSB team well as it has entered new markets. While it is growing in spurts through acquisition, it supplements these growth spurts with organic growth obtained by sprinkling its existing customer base with superior service. The planned opening of its 8th location in 2023 will provide scale and opportunity for Halterman to make his luck.

Examination PSB has undergone an examination since the onset of the pandemic. While Halterman prefers face-to-face interaction, he is comfortable with either onsite or remote examinations. Management has a great relationship with regulatory crews due to the bank’s reliability and adherence to policy. Halterman shared that regulators often use PSB examinations to aid in the development of novice examiners. The pandemic accelerated the rate at which regulators work remotely or from the office in Des Moines. This remote work allows examiners to save time and money on travel. Technology and Profitability PSB primarily uses technology to deliver a seamless online/mobile banking experience to its customers. Combined with quality customer care, E-Branch is the chief technological tool used to drive profitability. Completing loan payments, transferring funds, and making mobile deposits can all be done from a mobile device through the web or banking app. This tool has helped PSB reach new heights and extend its services to customers outside of geographical locations. Despite this technological success, Halterman still takes pride and prioritizes the customer service offered at each branch over anything else. Online/mobile banking is a tool used to succeed, but at the end of the day, it’s the employees at PSB that make it a great community bank.

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