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The Resilience of Community Banks: Why We’re Thriving and Retaining Deposits

G Crawford 2014
Gwen Crawford
Executive Vice President, Chief Retail Officer
[email protected]
(585) 394-4260 x41950

In the ever-evolving landscape of the financial sector, the significance of community banks has proven to be stable and resilient. Community banks have not only weathered the storm, but have emerged as pillars of strength and reliability, retaining deposits, and securing trust amidst times of uncertainty. Canandaigua National Bank & Trust (CNB) is no exception and remains well capitalized and well positioned to continue to serve our customers and community.

Community banks play a pivotal role in fostering economic stability and growth within our neighborhoods. At CNB, we reinvest our deposits back into the communities we serve. CNB manages and maintains a diversified approach to deposits, lending, and funding sources reducing our risk to impacts of a single industry or investment. We also make decisions locally, which means that we focus on our local economy’s health and wellbeing.

Several reports have highlighted a noteworthy trend. Despite a challenging regulatory environment and current economic landscape, community banks have not experienced a drain on their deposit bases. In fact, we have witnessed a surge in deposit retention, solidifying our position as a safe haven for customers seeking stability and reliability.

A few key factors have contributed to the success and deposit retention during this period:

Personalized Service: We emphasize personal relationships and individual attention, cultivating a sense of trust and loyalty among customers. Unlike larger banks, CNB provides a more individualized and responsive customer experience.

Local Focus: Intimate knowledge of the local market and close ties to the community allow us to make informed decisions that benefit the local economy. This focus on local needs fosters stronger relationships and customer loyalty.

Stability and Reliability: While larger banks face challenges due to their size and complexity, community banks tend to have simpler structures and are often more conservative. This stability and prudence reassure customers, especially during times of economic uncertainty.

Adaptability: We have displayed a remarkable ability to adapt to changing circumstances, embracing technology while still preserving a community-oriented approach. Online and mobile banking services, coupled with a personalized experience, offer customers convenience without sacrificing relationship-building.

Community Engagement: CNB is actively involved in community development initiatives, sponsoring local events, supporting small businesses, and contributing to the overall welfare of the areas served. This active engagement further solidifies our position as trusted financial partners. In 2022 for instance, CNB celebrated a historic year for giving, providing support to more than 300 local not-for-profit organizations.

As larger financial institutions grapple with the fallout from collapses and mergers, community banks stand tall as beacons of stability, demonstrating resilience and unwavering commitment to customers. Here at CNB, our ability to retain deposits amidst market volatility speaks volumes about the enduring trust earned from our communities. Our success and longevity is also thanks in large part to our commitment to our customers. We are focused on helping each person reach their financial potential and are proud that many of our customer relationships span generations.

The resilience of community banks in the aftermath of recent banking collapses underscores their fundamental importance in the financial ecosystem. A localized approach, attention to personal service, reliability, and adaptability helps ensure that community banks will remain indispensable cornerstones of economic stability and community prosperity for generations to come.

This material provided by Gwen Crawford.