Bank Thrives as Industry Transitions
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TOWN & COUNTRY BANK BI-MONTHLY NEWSLETTER MAY–JUNE 2014
Bank Thrives as Industry Transitions
Reprinted from the
“Senior Sampler”
T he landscape of banking is shift-
ing. With the public’s embrace of
electronic banking, many financial institu-
tions have seen a marked decline in foot
traffic and are rethinking their strategy
on branching. Bank of America has sold
some 271 branches since 2012, and other
bigger banks are quietly doing the same.
In response to the new technology
paradigm, and in ratcheting down per-
sonnel expense, some large banks are
connection with their bank. In this regard, semi-retired, says, “I feel as though I receive
re-tooling how their remaining branches
locally-owned community banks can dif- a private banking-like experience when I do
operate. The cover of the June 2014 issue
ferentiate themselves from big financial business inside the bank.”
of American Banker Magazine asks, “Have
institutions by crafting more intimate de- More than a few industry profession-
tellers finally reached the end of the line?”
livery of services. ” als have recognized Town & Country for
Self-service operation at some bank of-
For a bank that’s been open for only being several years ahead of the curve.
fices, just like at airports, is being phased
six years, Town & Country has not only And it seems big city banks are only now
in. The Chairman of large PNC Bancorp
survived difficult times, it’s flourished. Ear- catching up. Reporting on PNC’s new
prophesied that, “In five years, only a third
ly on, Jensen and the bank’s organizers de- branch format, American Banker notes
of PNC’s branches will look like tradition-
cided to avoid forming what Jensen calls that universal tellers are being deployed
al branches.”
a “cookie cutter bank”, and instead polled and, “Not only are there no visual clues
As bankers scramble to install flat
people to see what their “dream bank” alerting customers to the presence of
screen monitors, iPad “consultation
would look like.Town & Country then un- tellers—there aren’t any tellers, period.”
counters” and kiosks where customers
veiled its own unique branch model. That precise description could have
can access a human banker by video,
The bank opened its doors in February been—and was—written about Town &
some customers are befuddled. Bruce
2008 with “concierge bankers”, or universal Country Bank in 2008.
Jensen, CEO of St. George, Utah-based
bankers, who combine teller functions with Not only has Town & Country bond-
Town & Country
new account opening and other banking ed with the locals for its “white glove” cus-
Bank says, “While
tasks. Customers are comfortably seated tomer service, it endears itself to them and
it’s important to
to transact business with a concierge bank- the community at large by offering good
provide technol-
er in a semi-private setting, and in an atmo- quality, free concerts in the bank’s Great
ogy solutions for
sphere that resembles an inviting country Room every Friday at noon. “I love coming
banking custom-
inn. Former executive Robert Manley, now in each week for top notch entertainment,
ers, small town
“says Raymond Miller, who formerly played
residents still want
in the U.S. Army “Pershing’s Own” White
to feel a personal CEO Bruce Jensen
THE TOWN CRIER
House Marching Band in Washington, D.C.
He’s now a customer of the bank.
Town & Country has also differenti-
ated itself by extending various products
and services not found at other institu-
tions, such as its “Town Card” (an ATM
card offering time-of-purchase discounts
at hundreds of local businesses), special-
ized lending programs for homeown-
ers’ associations and a Women’s Banking
Group providing bundled services for
women entrepreneurs.
In six years, single-office Town &
Country Bank has grown its market share
to roughly that of one, large nationally-
chartered bank having four offices in
Washington County. In February, Town
Concierge Banker Shelley Duce serves a customer
& Country sent a customer satisfaction
survey to a random sample of 5% of its financial results also reflect the success of in Washington County, Utah has been in
customers. “The results surprised even its novel approach. Town & Country is the vanguard in re-tooling what people
us,” says Jensen. Customers were asked well capitalized, and its first quarter 2014 have universally wanted all along: genuine
to choose among five responses to their earnings were the best on record, with its service. One must ask why it’s taken the
level of satisfaction, with 90% saying they return on assets being ahead of all but 2% rest of the banking industry so long to
were “very satisfied” (top rating), and the of banks in the entire country. catch up. And by the way, Town & Coun-
remaining 10% saying they were “pretty So with the face of banking in need try is contemplating opening additional
satisfied” (2nd highest rating). The bank’s of a makeover, a small locally-owned bank branches.
Banker Over the past four years, several
bankers from Town & Country Bank have
start-up business. Both the students and
their business plans are evaluated by the
Helps Future assisted in a special entrepreneurial learn- banker, and the results are submitted for
Entrepreneuers ing program at the Pine View High School their grade.
of Business under the direction of teacher, “I am so impressed with the knowl-
Shelley Bracken. In May, Senior Vice Presi- edge the students gained from Ms. Brack-
dent Wendy Holt made her fourth onsite en’s leadership. I truly feel some of the
visit in relation to the program. students are prepared today to start
Students of the entrepreneur class the businesses they have created for the
spend the semester learning how to start class…and be successful!” said Wendy.
their own businesses. They develop an Despite the success of the program
idea for the type of business they would and the benefit to students, this year’s
like to create, research viability, determine participation was a bittersweet one for
their target market, create a budget, proj- both the Pine View High School Busi-
ect profits and losses, and develop a mar- ness students and Town & Country Bank.
keting strategy. The semester ends with a Shelley Bracken, who teaches the class
completed professional business plan that and has invited Town & Country Bank to
determines their final grade. Students participate for the past four years, will be
Pine View High School teacher Shelley Bracken present their business plan to a banker retiring from Pine View High School. She
(left) with SVP Wendy Holt to obtain advice and/or financing for their will be greatly missed by many.
2
THE TOWN CRIER
Town & Country Expands Support for Upcoming
Marine Corps League Seminar
To be sure, Utah Dixie Detachment several of their pursuits, including Toys for What if you could expand your
#1270 of the Marine Corps League and Tots, Devil Pups (seeking out top-notch wealth by optimizing how you think
Town & Country Bank have enjoyed a youth interested in spending time at Camp about money? Advances in neurosci-
friendly affiliation over many years. In ad- Pendleton wherein they are exposed to ence and medical technology have re-
dition to providing banking services for Marine Corps discipline and training), and vealed groundbreaking insights into how
the Marine Corps League—as well as a the Utah Dixie Detachment Golf Tourna- our brain functions when we think about
place to hold monthly detachment meet- ment (which allows them to provide sup- money. For example, financial losses are
ings—Town & Country has also found port for the Veteran Service Organization processed in the same area of the brain
ways to support the noble causes pro- in Southern Utah). that respond to “fight or flight” impulses.
moted by the League. The bank has a special fondness for
the League, since Former Post Comman-
dant Dennis Rogers’ wife, Liz, works as a
Concierge Banker. Liz has a love of coun-
try and a healthy regard for the contri-
butions of this group, and has made this
detachment one of her favorite priorities.
Utah Dixie Detachment #1270 has
shown appreciation to Town & Country
Bank by presenting various certificates of
appreciation. As Post Commandant D’Arci
Griser says, “Town & Country Bank has
been fully supportive of our efforts. Thank
Members of the Marine Corps you, Town & Country Bank!” And James
League join together in camaraderie and Haney, Treasurer of the Dixie Detachment,
fellowship for the purpose of preserving adds “The folks at Town & Country are
the traditions and promoting the interests so nice to work with. You can’t be in the
Thomas R. Seneca
of the United States Marine Corps. The bank without feeling that they truly care.
League advances the ideals of American Those of us who have served our country On July 17th at 6 PM at the bank,
freedom and democracy, voluntarily aid- value the appreciation shown us from the Thomas R. Seneca, managing partner at
ing and rendering assistance to all Ma- people at the bank.” T.M. Wealth management and Professor
rines, former Marines and of Finance at Virginia International Uni-
their widows and orphans. versity, will offer a unique and insight-
Perhaps you can see why ful presentation called “Rich Mind, Poor
Town & Country Bank likes Mind”. Mr. Seneca obtained his Masters
these guys. of Business Administration degree from
Locally, the Utah Dixie Columbia University. He will explain how
Detachment has been in- a change in thinking can increase your net
volved in providing color worth, and how to implement this new
guards for special events, aid- science to enhance your returns. Come
ing several relief efforts and and learn why the $19 billion Yale En-
helping to look after area dowment consistently beats the market!
Marine families. The bank Cost: $20 per couple, with all proceeds
has recently expanded its going to the Washington County Diabetic
association with the detach- Youth Association. Light refreshments will
ment by lending support to Members of Marine Corp League detail at St. George Cemetery be served.
3
THE TOWN CRIER
Someone You told me, ‘Hire that woman to be the face
of your bank and you’ll go far.’ That only
Should Know confirmed our wish to make her an offer
of employment.”
She’s been called the “soul” of the
Elsa is the mother of four sons and
bank—the person who best represents
two daughters, and is grandmother to ten,
Town & Country’s welcoming brand. This
soon to be eleven—all under six years of
wonder woman greets customers, ar-
age. Her loving husband of 37 years, Gary,
ranges scheduling, acts as scribe to the
passed away from ALS (Lou Gehrig’s Dis-
bank’s Board of Directors, decorates the
ease) not long after Town & Country
bank for holidays, plants fresh flowers in
opened its doors. As Elsa herself tells The
outdoor planters, coordinates the Free
Town Crier, “The bank has become like my
Friday Concert Series and pretty much
very own family, and I’m very family ori-
scatters sunshine all around the bank. She
ented!” Indeed, Elsa is often the “go to”
is Elsa Picklesimer. As Executive Assistant Elsa with grandchildren Emery and Kate person for life advice sought by many of
to Town & Country’s management team
the younger employees of the bank. Brad
and Board, she’s seen by all as a pleas- Country’s organizing committee decided
Hales, Executive VP and Chief Financial
ant departure from the stereotypical staid to lease an office there before opening
Officer says, “Elsa’s whole orientation is of
bank employee. the bank. Elsa’s diverse capabilities were
tremendous value to the bank.”
A lifelong resident of St. George, Elsa instantly recognized by head organizer,
While her kids assure us that she’s
was working as the receptionist/office Bruce Jensen, now CEO. “When the
not perfect, she’s amazing and is defini-
manager of the executive suite offices FDIC visited our office during our applica-
tively someone you need to know!
at 20 North Main Street when Town & tion process,” he recalls, “the senior official
WEST’S WORLD: market from February 2013 to Febru-
ary 2014: A) The median sales price of
holding $11 million in construction loans
as of 3/31/14.
Status of Local Lending homes has increased from $179,950 to After speaking with many of the
By West Martin, $225,000, an increase of 25%; B) The av- contractors with whom we do business,
Executive Vice erage sales price of homes has increased and based upon the above information,
President & Chief from $227,015 to $242,508 or 6.8%; C) we have reason to be optimistic that
Lending Officer
Days on the market have declined from this summer we will not experience the
You may re- 92 days to 78 days.; and D) Homes for seasonal construction lull that commonly
member me stat- sale have increased from 1,755 to 2,248, comes from June through September.
ing in my April 2013 column the follow- with the month’s supply of inventory in- Town & Country Bank is excited
ing: “We are all seeing signs of growth in creasing slightly from 6 to 6.8. about the future opportunity for this
our community, primarily fueled by the This is just a small taste of the op- type of lending. We have experienced
rejuvenated residential building industry. portunity we are feeling in the residen- little to no delinquency or losses in this
As a result, new small businesses are be- tial market. Town & Country Bank’s pri- loan category. The loans commonly carry
ing conceptualized and opened by those mary involvement in this segment of the a slightly higher than average interest rate
who have the entrepreneurial spirit. We market is limited to construction loans, with exceptional fee income.
are also seeing slow, measured growth and which are done as “pre-sold” or “spec” Our institution has tried to abide by
expansion of many existing businesses.” loans. We have limited our involvement the adage that we are always after a win/
A year has passed and we continue in spec construction loans due to the in- win for the customer and the bank. We
to see slow measured growth and ex- herent risks, but, when they are done, we want to serve the needs of our commu-
pansion of small businesses which is being involve only the best builder/developers nity. As Kenyan President Mwai Kibaki
spurred by the resurgence of our local in the area. However, pre-sold construc- has said about opportunity, “Leadership is
residential building industry. Of note, tion loans have become a mainstay of the a privilege to better the lives of others. It
ERA Brokers report the following growth Bank. Our officers report, on average, is not an opportunity to satisfy personal
in the Washington County residential five applications per week, with the bank greed.”
4
THE TOWN CRIER
SUMMER BANK INDEPENDENCE Bank will be closed Friday, July 4th and
HOLIDAYS DAY will reopen the following day.
Bank will be closed Thursday, July 24th
PIONEER DAY
and will reopen the following day.
MESSAGE FROM THE PRESIDENT
A bank is a bank is a bank. Right? elsewhere. We “get” Southern Utah. As
Apparently Jesse James seemed to think a hometown bank, we are fully dedicated
so. And so do many Americans—includ- to improving the financial conditions of
ing Congress who, in its zeal to right the local businesses and families. To attain
wrongs that launched the recent financial these objectives, we’re all about finding
crisis, enacted a one-size-fits-all agenda multifaceted ways to share our expertise
for bank regulatory reform with our neighbors one-on-one. That’s
But in reality, the species of financial why our bankers regularly spend time in
institutions are quite varied, and each has area schools teaching business concepts.
its own modus operandi. For example, That’s why we sponsor and co-sponsor
there are banks with “industrial” charters free community workshops that have
that provide only a limited scope of ser- included topics dealing with preventing
vices or customer focus. Industrial banks identity theft, tax planning, investments
are frequently owned by non-financial You’re probably wondering why I left and basic money management. That’s also
companies (e.g. a retailer offering credit out community banks. Well, I was saving why we assist the community in clean-up
cards to its store customers). There are the best for last because that’s really what efforts, recycling, charitable contributions,
also credit unions. Credit unions are I wanted to talk about. What exactly is serving on non-profit boards and even of-
tax-exempt institutions owned by those a community bank? I categorically agree fering free weekly concerts! And, we’re
who qualify for membership. As a rule, with Wikipedia’s definition for a commu- always on the lookout for fresh opportu-
credit unions, too, serve a limited market nity bank: “A community bank is a de- nities to contribute to the betterment of
with limited services. Savings and loans, pository institution that is typically locally Washington County.
or S&L’s, are another kind of bank. They owned and operated. Community banks Yes, our role as a community bank
are specialized institutions created to pro- tend to focus on the needs of the busi- is as noble and fulfilling as it gets. And
mote affordable homeownership. There nesses and families where the bank holds in addition to our clear differentiators
are yet other kinds of banks. Some fo- branches and offices. Lending decisions described in this newsletter’s lead story,
cus exclusively on serving other banks, are made by people who understand the we at Town & Country Bank are unique
while others may be single task oriented, local needs of families, businesses and because of our deep care for and under-
like a bank that handles just the process- farmers. Employees often reside within standing of Southern Utah. I love being a
ing of prepaid gift cards. And then there the communities they serve.” community banker here. I love making an
are “central banks”. Our central bank Town & Country is the epitome of impact. It’s the stuff dreams are made of.
in America is the Federal Reserve Bank, a true community bank. Not only do we
Bruce T. Jensen
which has a charter that’s so broad, the fit the definition to a “t”, we revel in it.
President & Chief
general public still isn’t sure of its overall Because we’re locally owned and operat-
Executive Officer
purpose—though most are familiar with ed, and we reside in wonderful Southern
bjensen@tcbankutah.com
its key role in setting monetary policy. All Utah, we really care about improving our
of these different banks fill certain niches surroundings. To us, Washington County
in our economic system, and they have is our whole world. We’re not some re-
different characteristics. mote office of a financial institution based
5
THE TOWN CRIER
CUSTOMER SPOTLIGHT
level of care are a perfect reflection of the
personalized care of both businesses. As
a sole proprietor, the bank’s free Business
Courier is crucial to getting deposits into
the bank on the same day.” Lynda also
appreciates Town & Country’s Women’s
Banking Group. “The Concierge service
and support of female-owned local busi-
Dixie Optical best choices for them. Lynda has over 25 nesses are what makes Dixie Optical and
1495 S. Blackridge Drive, Suite years of experience in styling and fitting Town & Country Bank synergistic sisters!”
A270 glasses. And, Dixie Optical’s client eye- Town & Country agrees and salutes the
St. George, UT 84770 wear makeovers often include an entire outstanding Dixie Optical boutique.
(435) 628-9100 package consisting of eyeglasses, sunglass-
www.dixie-optical.com es, a matching handbag and jewelry.
After 20 years working in the Op- Combining style with the latest in
tical Industry, Certified Optician Lynda lens technology, the specialists at Dixie
Burgess decided to open her own optical Optical can make sure you look great and
shop. Being a consultant and managing see amazingly, using high-definition digital-
several practices, Lynda could see what ly-ground lenses. Men are loving the cur-
was missing in our local market: an em- rent “Transitions Advantage” lenses that
phasis on art, color and beauty. Her Dixie turn from clear to dark and polarized in
Optical boutique is quite unique because the sun’s rays, turning their clear eyeglass-
Lynda ‘s business model focuses on retail es into the perfect sunglasses! And, the
and fashion rather than the medical as- latest in lens technology is only available
pect of eyewear. to private practices, such as Dixie Optical,
With today’s trends making glasses for two years before being released to big
an accessory, Dixie Optical has eyeglass- box stores.
es that are very much Santa Clara resident
a fashion statement. Dr. R. Hillstead, OD, is
Lynda studies the lat- available for eye exams
est colors, trends, styles at Dixie Optical. With
and shapes so her cli- more than twenty years’
entele are most current experience in optom-
and fashionable—often etry, Dr. Hillstead takes
making trips to New his time to make sure his
York City to bring back patients have good eye
the latest colors, fashions health, and a prescrip-
and accessories. tion to see clearly. Im-
There’s no question portantly, Dixie Optical
that being styled and fit- patients are scheduled
ted at Dixie Optical for so they never wait more
glasses and sunglasses than ten minutes to see
is a fun one-on-one ex- the Doctor.
perience. Patients are Town & Country (435) 673-1150
405 East St. George Blvd. - St. George, Utah 84770
pampered, styled, and Bank is a perfect fit for
www.tcbankutah.com
their lifestyles analyzed Dixie Optical. Lynda says,
to personally suggest the “The beauty, service and
6
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