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Discover the Benefits of Community Banks with O1ne Mortgage

Are you considering a different kind of banking experience? Community banks offer the same essential services as big banks but with a unique focus on local communities. Unlike national banks, community banks prioritize lending to and serving their local areas. They are often privately owned and emphasize “relationship banking,” which can be particularly beneficial for small business owners and aspiring homeowners. Ready to learn more?

How Do Community Banks Operate?

While there’s no single definition for community banks, a useful comparison can be made. The largest U.S. banks, such as JPMorgan Chase, Bank of America, Wells Fargo, and Citibank, each have over $1 trillion in assets. In contrast, community banks typically have no more than $10 billion in assets. According to the Federal Deposit Insurance Corp. (FDIC), community banks are characterized by:

• Lending and deposit gathering within a limited geographic area
• Relationship lending, which relies on specialized knowledge gained through long-term business relationships
• Private ownership, prioritizing the long-term interests of local communities over the demands of capital markets

Community Banks vs. Big Banks

Community banks are locally owned and operated, often focusing on small or regional areas. They are active in lending to small businesses and offer banking products tailored to everyday people in the community, including home loans for low- or moderate-income borrowers. In contrast, big banks are publicly traded, operate on a national or international scale, and offer a wide array of products and services that may be more standardized.

Pros and Cons of Banking with a Community Bank

Pros

• Relationship banking: Community banks consider your family history or their knowledge of your small business when evaluating loan applications.
• Local investment: They lend money to local people and businesses and often sponsor community initiatives.
• Personal touch: Community banks may offer a more personalized experience, making you feel supported and valued.

Cons

• Size limitations: If you prefer a national network of branches and ATMs, a big bank might be more suitable.
• Product range: While community banks offer many of the same services, big banks may provide a broader range of financial products.
• Digital services: Although many community banks are investing in digital technology, they may not match the advanced digital services of big banks.

Should You Bank with a Community Bank?

To determine if a community bank is right for you, consider the following questions:

• Do you prefer face-to-face banking? If you enjoy personal interactions for banking transactions, a community bank might be a good fit.
• Are you community-oriented? Banking with a community bank means your money is invested locally, supporting your neighborhood’s economy.
• Do you own a small business? Community banks can be particularly valuable for small business owners needing loans, lines of credit, and other financial services.
• Can you find a community bank that fits your needs? It’s essential to find a community bank that offers the services and products you require.

Where to Find a Community Bank

Finding the right community bank may require some research. Here are a few tips:

• Check your neighborhood: Look for local branches in your area.
• Use a locator: The ICBA has a community bank locator to help you find banks in your area.
• Ask a friend: Community banks often have enthusiastic customers who can provide recommendations.
• Read the news: Look for community banks that sponsor local events and initiatives.

The Bottom Line

Before opening an account at a community bank, visit their website to ensure they are FDIC insured and offer the products you need, such as free or low-cost checking, high-yield savings, home or small business loans, and robust mobile banking tools. Check out their blog or social media to get a sense of their personality and customer relations. You might find a community you’d like to join—and get a bank in the process.

For any mortgage-related needs, call O1ne Mortgage at 213-732-3074. We’re here to help you navigate your financial journey with confidence and ease.

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