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Left to right, Amy Kiefer, chief operating officer; Brian Straughan, president; Jan Baumgartner, executive vice president; Phil Watson, chief lending officer
Left to right, Amy Kiefer, chief operating officer; Brian Straughan, president; Jan Baumgartner, executive vice president; Phil Watson, chief lending officer

2012 Dynamic Dozen No. 2: Springfield First Community Bank

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In just more than three years, Springfield First Community Bank has grown from a fledgling bank with $22 million in investment capital to the 10th-largest financial institution based on deposits. With deposits of $185.5 million, the bank holds 2.49 percent the market share in the Springfield metropolitan statistical area, pushing it to the No. 10 spot last year, up from No. 16 in 2010 based on the latest market share report from the Federal Deposit Insurance Corp.

The bank reported 2011 revenues of $9.97 million, up 36 percent from $7.36 million in 2010 and 149 percent higher than in 2009. Assets were at $242.9 million for the year.

Bank leaders say that kind of growth required a clear mission, a vigilant eye on taking on only sound assets and understanding the needs of the community.

“Not to oversimplify, I think really, at the core of it, is our relationships,” says President Brian Straughan, citing examples ranging from the long-term relationship between the bank’s leadership team to front-line employees’ relationships with account holders.

“(Bank employees) sincerely love our customers,” says Executive Vice President Jan Baumgartner. “It’s hard to put on paper, but I think if you walk in the bank you get the feel for our culture.”

At first blush, October 2008 may not seem to have been the best time to charter a new bank. The economy was already in trouble and the housing market was crumbling. But Straughan points out that may be precisely why it was a great time to open a bank — the start-up had a clean balance sheet, good capital and no asset challenges.

The bank’s founding leaders – banking veterans Straughan, Baumgartner and Kirk Bossert – went to work developing a business plan, talking to investors and completing a charter application. They felt it was important that they develop the plan, rather than hiring a consultant.

“There’s a real disconnect through that process a lot of times,” Straughan says. “We built our business plan and developed our charter application, so we knew what it was going to take.”

Springfield First Community Bank offers a network of automated teller machines, online banking and remote deposits for merchants. A mortgage department was added about a year after the bank opened its doors.

In mid-2011, Rob Fulp was hired as chairman and CEO of Springfield First Community Bank, bringing with him more than 30 years of experience in the local banking market, including previously serving as president of BancorpSouth in Springfield.

Since opening, the leadership team has kept a close watch on lending to ensure they make safe investments.

“That’s the cornerstone of what we do, safely lending money,” Straughan says. “Given the time when we opened, in October 2008, for the next several years  – and really, it’s still true today – credit quality is always an issue. That was one of our biggest challenges, safely growing the bank.”

The bank operates a single branch, 2006 S. Glenstone Ave., and despite market share and revenue growth, Straughan says there are no immediate plans to add branches.

“We don’t have immediate plans to branch, at least for the next 12 months,” he says. “I think we’re going to continue to focus on asset quality, growing our core business, deposits and loans,” he says.

Officials don’t plan to let the bank grow too large, however.

“You won’t see us being a billion-dollar bank. We have plans to grow, but we want to grow strategically and profitability,” Baumgartner says.

Click here for the complete 2012 Dynamic Dozen overview.[[In-content Ad]]

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