Why is Local Ownership and Local Management Important?

By: TXRB Staff | 18 Dec 2012

Texas Republic Bank is a rare breed in the banking world: it is locally owned and locally managed. So what makes local ownership and local management so important?

Local ownership refers to where a bank’s shareholders live. Our shareholders are local citizens of Frisco and the surrounding cities. They make decisions with the community in mind. Why? Because they serve in civic clubs here, their kids go to school here, and they live here. Their interests reflect those of local small business owners, homeowners, and parents. They live here so they want to invest here. A big, corporate bank has shareholders whose ties are not to this area, and so there is no true incentive for them to consider the consequences their business decisions will have on the community. They may just see another struggling small business owner needing a loan, while our shareholders see a small business owner with four employees counting on their jobs to care for their families and which is important to the local economy. One view leads to a loan being disapproved, our view leads to finding solutions to making a loan happen.

Local management enables customers to speak to someone who is able to make decisions. There’s no run-around at TXRB. We can get you upper level decisions quickly. You won’t find that in a management team that is located in another city or state. Also, since our team is local, we can customize products and services to suit our customer’s unique needs and circumstances because we know you. A large bank or a community bank with several branches is less likely to take the effort to find creative solutions to financial needs. Either your loan requests fits in their box or it is declined. We purposefully remain a one-location bank in order to provide quality banking relationships with each of our customers.

Most businesses (including banks) believe “bigger is better”. Their main focus is on growth, which often sacrifices the amount of attention given to each customer. Our way of doing banking focuses on each customer individually. It requires bankers who can think outside of the box to develop personalized solutions and a management team that is willing to be flexible. It’s not the easiest way to do business, but we believe it’s the best.

After all, that’s “banking like it oughta be!”

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