Community Banking Month: Competing Banks Partner to Rebuild the Community

April is Community Banking Month, which the Independent Community Bankers of America (ICBA) calls “a celebration of the independent spirit and unwavering commitment of community banks to help consumers and small businesses achieve their financial goals to create communities of prosperity nationwide.” In April, PRI is celebrating some of the excellent community banks that we’re fortunate to work with and observe up close what sets them apart in their communities. We spoke to First Kentucky Bank and FNB Bank of Mayfield, Ky., to learn how they set aside their roles as competitors to join forces to help rebuild their community after a devastating tornado leveled it.

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On Dec. 10 and 11 of 2021, a monster EF-4 tornado tore a path of destruction across some 165 miles in Kentucky. Mayfield, a town of around 10,000 people, was practically leveled and 24 people perished in the storm. More than three years later, Mayfield and the larger Graves County are still in the process of rebuilding several downtown mainstays, like the county courthouse, city hall and the police department.

In the aftermath of the storm, two competing community banks, both based in Mayfield, decided to combine efforts to help rebuild the place they’ve each called home since the late 1800s. First Kentucky Bank and FNB Bank partnered to provide a special loan and incentive program for businesses impacted by the tornado and called it DREAM Together. DREAM stands for Downtown Revitalization and Economic Advancement for Mayfield. Together, the banks are providing incentives and low interest loans for businesses that want to rebuild and reinvest in downtown Mayfield. The joint goal of FKB and FNB is to stimulate economic development and bring jobs back to one of the hardest hit areas in their community.

Stacy Overby, Chief Credit Officer of First Kentucky Bank, said they were in contact with FNB Bank from the beginning after the devastating tornado. At first, it was just to offer general help as neighbors to FNB, which suffered extensive damage to its buildings. But within weeks, the two banks were sitting down together to brainstorm about ways they could help the community of Mayfield as well.

“We asked what we could do together to help revitalize downtown in the longer term,” Overby said. “What do these folks need quickly and what can we provide? First Kentucky and FNB are the two local banks with local ownership, and it was vital to us to get something started. We met and came up with the program that we have today.”

Tyler Goodman, Assistant Vice President at FNB Bank, said they all recognized the importance of getting resources to the community quickly to facilitate rebuilding efforts. While awaiting insurance claim processing and FEMA funds, which can be delayed by complicated application requirements and the sheer magnitude of the devastation, many downtown businesses needed funds right away to continue to operate. In addition, as Mayfield was just coming out of the COVID pandemic, inflation was beginning to rise, and the cost of building materials had jumped sharply. Many found that insurance was simply not enough to cover the gap.

“With the DREAM Together program, we were able to lay out simplified parameters, offer attractive incentives and more favorable interest rates than they could get on the open market and get our customers their money promptly,” Goodman said. “Both banks set aside significant amounts of money for incentives for new or returning businesses because it was important for folks in the community where we all live and work to see downtown come back. Providing people with definitive answers and clarity really helped as they navigated some tough situations.” 

Overby said they have approved loans that range from $15,000 to $1 million and paid incentives of more than $400,000 since the program began. The DREAM Together program is designed to help businesses of all sizes. The two banks committed up to $10 million combined in loans for the initiative, and they expect that DREAM will ramp up again soon as construction begins on some of the cornerstone downtown employers and government buildings, such as the city hall, county courthouse and police station. 

“It’s a benefit to both banks and very encouraging to see downtown come back and become as vibrant as it once was,” Overby said. “When a natural disaster hits – or even when there’s just a mutual desire to help support and revitalize a community – it’s a good time to take off the competitive gloves a bit and have a spirit of cooperation. It not only makes good economic sense for the community and the banks, but I think it gives the community a good feeling to see two of the cornerstone institutions in Mayfield and Graves County coming together to benefit everybody.”

Goodman said the local nature of the DREAM Together program makes it special. The banks cooperatively designed DREAM to cater to their community and the immediate needs at hand. It was not a one-size-fits-all approach, which also makes it unique.

“We’re able to evaluate what our community needs based on the situation and make decisions locally, which is important,” he said. “You don’t have to appeal to Frankfort or Washington. You’re not waiting for someone you’ll never meet to make these decisions. It’s your neighbors and the people you see at school or the ball fields. It’s encouraging to see, and it shows that people do cooperate. Businesses get along, and it’s for the betterment of the community and the people who call Mayfield and Graves County home, more than for themselves.”

Overby expects that DREAM Together will continue to be part of helping to rebuild Mayfield, and the banks still have significant funds to distribute. He says if any Mayfield business has need for a loan or thinks they qualify for an incentive, they can contact a commercial lender at either bank who will walk them through the process.

Resources

Mayfield’s Two Local Banks Partner on DREAM Together Initiative – Grow With FNB

Mayfield’s Two Local Banks Partner on DREAM Together Initiative First Kentucky Bank

Kentucky tornado path map: See the deadly, 200-mile path

Kentucky tornadoes: Before & after pictures of Mayfield, Ky | Lexington Herald Leader

Tuesday marks 3 years since deadly western Kentucky tornadoes as families continue rebuilding | Local News | wdrb.com

About First Kentucky Bank

First Kentucky Bank is a Kentucky-based community bank established in 1899 with assets exceeding $576 million. The bank currently has 11 locations located in Carlisle, Graves, Livingston, Marshall, Muhlenberg and Ohio counties. First Kentucky is a Member FDIC bank and an Equal Housing Lender.

About FNB Bank, Inc.

FNB Bank, founded in 1875, is one of the oldest banks in the state of Kentucky with assets exceeding $690 million.  The bank currently has 11 locations located in Graves, McCracken, Calloway and Trigg counties. FNB is Member FDIC and an Equal Housing Lender.