Isn't That Rich Podcast

Walk down Main Street on a Friday night and you can feel it. The new scoreboard lighting up the field. A family unlocking the door to their first home. A local business adding two more employees this spring. None of these moments happen in a vacuum. They happen because local money stays local and because a community bank quietly connects the dots.

That’s the message Farmers State Bank CEO Charles Holland shared when we sat down with him to talk about why community banks matter so much in small towns. “A community bank turns local deposits into local loans,” he explained. “That is how dollars start working across town.”

What community banking really means

Community banking is more than a business model — it’s a philosophy. Large institutions often see banking as a numbers game, focused on efficiency and scale. A community bank sees banking as a relationship game, focused on people and place.

Charles Holland summed it up clearly: “Community is the point. We are here to keep the town viable and livable.” That means financing the small things that become big things — a family’s first mortgage, a farmer’s equipment loan, or a local café that needs help expanding.

Unlike mega-banks, which may funnel deposits into large urban projects, a community bank is committed to ensuring dollars continue circulating in the local economy. The result is stronger towns, more resilient families, and a deeper sense of connection between neighbors.

Where your dollar goes

Most people don’t think much about what happens to their money after it’s deposited, but Holland says that’s where the magic of community banking begins. “We lend it back out for homes and small business. The interest pays depositors and the rest goes back into serving the community.”

Your checking account could be helping a young couple buy their first home. Your savings may be part of the funds used by a farmer to purchase seed or equipment for the season. Your child’s allowance might even be quietly fueling a local auto shop’s expansion. Every deposit, no matter how small, plays a role in building a thriving community.

That process doesn’t just benefit borrowers. It pays interest to savers, funds local jobs, and creates a cycle of reinvestment that national banks simply can’t match.

Loans that move the needle

When asked which loans matter most, Holland didn’t hesitate. “We don’t pick one winner. Ag, homes, small business. They all matter because they all support families and jobs.”

Agricultural loans keep food production local and sustain multigenerational farms. Mortgage and home equity loans allow families to put down roots and reinvest in their properties, which strengthens entire neighborhoods. Small business loans not only help entrepreneurs chase their dreams, but they also create steady jobs for friends and neighbors.

Each loan category has a ripple effect. A farmer’s loan might mean extra hands hired at harvest. A home loan may keep young families in town, adding to school enrollment and community activities. A small business expansion could spark more foot traffic for surrounding shops. Together, these loans keep small towns vibrant.

Numbers matter. People matter more

In big banks or online platforms, loan applications are often reduced to algorithms. Credit scores, income ratios, and hard data tell the story. But Holland insists that in community banking, the story is incomplete without character. “Character plays a big role in approving a loan. You don’t see that on an online portal.”

Community bankers know their customers — sometimes for generations. They understand seasonal cash flow for farmers, recognize when a borrower has proven resilience through hard times, and value the reputation of someone who has supported the community for decades. This personal knowledge allows banks to make decisions that balance numbers with trust.

Holland shared examples where this balance paid off. One retiring business owner was shrinking operations until local buyers stepped in. With FSB’s support, they not only bought the business but also grew it, hiring more employees and revitalizing a corner of town. That kind of success story is only possible when a bank sees both the financials and the people behind them.

Peace of mind in an uncertain world

Banking isn’t just about opportunity — it’s about security. Fraud can strike anyone, from seniors to young adults, and the damage can be devastating. Holland has seen firsthand how fast scammers move and how important immediate response is. “When trouble hits, you want a person you know on the phone now. Not a hold line,” he said.

Community banks offer that reassurance. Instead of navigating a 1-800 number or chatbot, customers can call or walk into their local branch and speak with someone they know by name. That personal touch can be the difference between stopping a fraudulent wire transfer in time or losing life savings.

FSB staff are also trained to notice red flags — like unusual withdrawals or customers who seem pressured — and to ask gentle but important questions. “We’ve seen people taken for tens of thousands of dollars in romance scams,” Holland shared. “Asking the right questions early is often what saves them.”

Education as a mission

Protecting customers isn’t just about reacting. It’s also about preparing them. That’s why Farmers State Bank invests heavily in financial education. From fraud defense seminars to Money Smart Reality Fairs for students, the goal is to equip people with knowledge before trouble strikes.

“Training our neighbors is worth it at all costs. Kids and seniors both need it,” Holland said. Young people quickly realize that money doesn’t magically reappear on debit cards. Retirees learn how to spot scams before clicking a dangerous link. And adults of all ages gain confidence in managing finances.

Education builds a stronger, more resilient community — and that’s a mission every community bank should embrace.

Giving back where it counts

If you’ve ever attended a little league game or opened a school program and spotted Farmers State Bank’s name, you’ve seen community banking in action. “If we’re not supporting the fields, bands, and clubs, who is?” Holland asked.

Banks like FSB funnel dollars into local causes, from booster clubs and band trips to nonprofits and teacher programs. The giving is intentional — prioritizing schools, customers’ organizations, and community needs that larger corporations often overlook. It’s not just about writing checks. It’s about showing up where it matters most.

This level of giving helps keep small towns lively and connected, reinforcing the idea that local banks are not just financial institutions, but true community partners.

Planning for the next Main Street

One of the biggest challenges facing small towns today is succession planning. Business owners are aging, and too many don’t have a plan for who will take over when they retire. “Talk to your banker five to ten years before retirement. We can help build the roadmap,” Holland advised.

Community banks are uniquely positioned to help. They know the businesses, the owners, and the potential buyers. They can connect retiring owners with new entrepreneurs, recommend accountants or attorneys, and provide the financing that keeps doors open instead of shuttered.

When a local pharmacy or family-owned shop closes, the entire town feels the loss — fewer jobs, fewer sponsors for local teams, fewer options for everyday needs. By guiding succession, community banks help ensure Main Street doesn’t just survive but thrives across generations.

Strong neighborhoods, stronger towns

Housing plays a critical role in community health. Construction loans bring in new families, adding life to neighborhoods. Renovation loans and HELOCs keep older homes updated, roofs replaced, and values steady. “Homes that are maintained keep neighborhoods healthy and values steady,” Holland said.

Owner-occupied homes signal commitment. They tell a story of families putting down roots, sending kids to local schools, and investing long-term in their town. Without these investments, communities risk decline. With them, they build momentum for growth.

What good banking should feel like

According to Holland, banking should never feel intimidating. It should feel like a partnership. “If you can’t reach your banker for something small, it’s probably not the right fit,” he noted.

That means customers should feel comfortable calling with questions, walking into their branch for advice, and trusting that their banker knows them personally. It’s the opposite of being treated like just another account number. Community banking is human banking — and that makes all the difference.

Business questions worth asking

For business owners, Holland’s advice is simple: bring your banker into the conversation early. “Get your banker involved early. It saves time, money, and stress,” he said.

Good questions to ask include:

• Is this purchase a good fit for my cash flow?

• What financial documents should I prepare before moving forward?

• Who else can help me evaluate the tax and legal side of this decision?

By asking these questions upfront, business owners avoid costly mistakes and set themselves up for long-term success.

Clearing up a common myth

Holland chuckled as he shared one of the most persistent misconceptions. “We don’t have piles of cash in the back. We put deposits to work for the town.”

Despite what people imagine from cartoons or movies, community banks don’t keep vaults stuffed with cash. Instead, deposits are immediately put to use through loans and investments that keep the community growing. That’s the point: money is meant to circulate, not sit idle.

A habit that builds resilience

Finally, Holland shared the one financial habit that makes families stronger: saving. “Savings reduce stress because life is unpredictable,” he said. Whether it’s a car repair, a sudden health issue, or an unexpected job change, savings provide a cushion that keeps families steady.

He recommends setting aside several months’ worth of expenses. It may not sound glamorous, but it’s one of the smartest ways to protect your future.

Your next best step

Charles Holland reminded us that when you bank locally, you’re not just storing money — you’re fueling your community. Every deposit, loan, and conversation matters.

If this sparked a question, stop by a Farmers State Bank branch. Ask about account alerts, fraud protection, or how to plan for buying or selling a business. Whether you’re building, renovating, or just getting started, local money should create local progress. That’s what community banks do best.