“Shopping local” has been a buzzword for years, but it’s only becoming more relevant as online retail continues to gain momentum. So, why shop local? The reality, of course, is that a dollar spent locally pays dividends for a community in ways that online purchases just can’t. Fortunately, recent data¹ has shown a sharp increase in consumers planning to shop at small businesses – up more than 25 percent. The benefits of this behavior are clear.

Local Economy

When you spend money locally, those dollars don’t just evaporate to some corporate headquarters across the country or around the world. Instead, they tend to stay in the community, where they’re reinvested between three and six more times. When consumers spend $100 at a chain store, only $13 stays in the local community², on average. At a local business, that number rises to a healthier $48.

Local Business

The need to shop local is even more important now, as many communities, including our own, have felt the financial impacts from COVID-19. The past few years have been hard for independent business owners to keep positive profit margins while navigating health guidelines and consumer concerns. This leaves it up to us, the fellow community members, to prioritize shopping locally, to keep our towns economically healthy, and our neighbors doing what they love — serving this community. The benefits of shopping local are not only felt in the pocketbooks of these store owners but almost everywhere.

Schools

Local spending is one of the most important sources of tax income for local and state governments. K-12 schools, in particular, rely heavily on the financial resources³ of these government bodies — about 47 percent of school revenues come from state funds and another 45 percent comes from local governments. The small need remaining is what’s met by the federal government, which is the story for most other public assets as well.

Public Services

While the federal government helps to build and maintain public assets, state and local governments generally cover three-quarters of the cost of maintaining and improving these assets. When it comes to the foundation of a state’s economy — specifically schools, water treatment and distribution, and transportation — state and local governments spend 90 percent of their tax revenue^⁴ on these projects.

In order to accurately measure tax revenue generation and compare one area to another, a “per acre” figure helps to illustrate the source of tax dollars. While a typical big-box retail store will earn a county around $7.11 per acre in tax revenue, the same area generates $287.55^⁵ in a mixed-use business district that you’d typically find on Main Street, USA.

Real Estate

Tax revenues aren’t the only benefit, however. When you shop local, supported independent businesses are also a boon to the real estate market, and on average, home values in these neighborhoods increase by 50 percent⁶.

Jobs

These businesses are also responsible for creating around two-thirds of private-sector jobs⁷. Every $10 million spent at local businesses results in 57 jobs. The same amount spent at online retail giant Amazon creates just 14 jobs — and those jobs aren’t in the community. Just think about that. When you shop local, you are helping protect the jobs of your family, friends, and neighbors, as well as creating new employment opportunities for your community in the future.

Shop Local, Give Local, Bank Local

There are many clear benefits to spending money locally, and at The Callaway Bank, we don’t just do business in the community; we live in it. As an independent community bank, our neighborhoods are more than just our livelihood, and all our decisions center around giving back. That’s why we do all we can to support our local community, including the push to get more individuals to shop local — including ourselves.

Learn more about the benefits of banking local.

Sources:
¹;vistaprint.com, Vistaprint® Consumer Survey ²;amiba.net, Ten Studies of the “Local Economic Premium” ³;cbpp.org, A Punishing Decade For School Funding ⁴;cbpp.org, It’s Time For States To Invest in Infrastructure ⁵;ilsr.org, Key Studies: Why Local Matters ⁶;huffingtonpost.com, Small Businesses are the lifeblood of local communities ⁷;bealocalist.org, Why Local Matters

Help us support our local shops! Join the Callaway Bank Rewards Program!

Callaway Bank Rewards

New eAlert Features To Customize Your Banking

eAlerts are text messages or emails that alert you to a balance or transaction on your account. We’ve made some improvements to make it easier to set them up and easier to read.

New eAlert Options You Can Utilize:

• You can now set up and manage eAlerts via our Personal Mobile App
• Control the day and time you receive alerts, meaning you can pause them overnight
• Alerts via text are condensed to 1 text message
• Accounts will be checked for updates more frequently – every 15-minutes

Already Use eAlerts?

If you already utilize our eAlert system, you won’t have to do anything for this update! Your eAlert notifications will continue to be sent based on the eAlert setting you created before the update. If you would like to review or change your eAlert settings, you can quickly do so from our Personal Mobile App!

Can I still access eAlerts from within Online Banking?

Unfortunately, no. Our Personal Mobile App will now be the central place to manage or set up your eAlerts. Additionally, any alerts that went to your Online Banking messaging center previously will now be sent to the email we have on file.

These can be changed to text messages or a different email address via the Personal Mobile App by following the steps here or without the app by filling out this form.

Set up or manage eAlerts with our Personal Mobile App

Learn How

Who you bank with matters.

It’s not just a choice you should make blindly. Your bank helps you manage your money, protect your money, and grow your money. In most parts of the country, you have multiple banking options, including both local community banks and national banks.

The decision on which type of bank to use depends entirely on your goals and what’s important to you. In larger metropolitan areas, you often see more national bank chains such as Chase or Wells Fargo. However, in less densely populated areas and smaller cities, local banks are more common to see and service the community.

So what exactly classifies a community bank and a national bank?

Community banks offer more than just banking services. They offer a relationship that can benefit you throughout your life or entrepreneurial journey. These depository and lending institutions are available in large metropolitan areas as well as in rural areas. 

Unlike megabanks, community banks are entrenched in their communities. They support individuals, small businesses, and non-profit organizations through thick and thin. Their success is tied to their community and the customers they serve. 

Community banks are much smaller than megabanks which allows them to focus on building personal relationships with their customers, working to know and serve their needs on a case-by-case basis. However, being small doesn’t mean unsafe. Nearly all community banks are insured by the FDIC (Federal Deposit Insurance Corporation), which protects depositors up to $250,000 in case of a bank failure.

There are roughly 5,000 community banks spread across the United States. In a 2019 survey conducted by the Federal Reserve, 79 percent of community bank small business customers were reported to be happy with their lending bank. This is 12 percent higher than small business customers who had a loan with a national bank.

In a 2016 op-ed in The Wall Street Journal, JPMorgan Chase CEO, Jamie Dimon wrote about the attractiveness surrounding community banking.

“[Regional and smaller community banks] sit close to the communities they serve; their highest-ranking corporate officers live in the same neighborhoods as their clients. They are able to forge deep and long-standing relationships and bring a keen knowledge of the local economy and culture. They frequently are able to provide high-touch and specialized banking services.”

On the other hand, national or megabanks are commercial banks chartered by the United States Treasury and are required to be members of the FDIC. National banks serve both individuals and businesses of all sizes. These banks are publicly traded companies where any individual can buy and sell company stock. The four biggest banks in the United States include JPMorgan Chase, Bank of America, Wells Fargo, and Citibank. The majority of Americans do their banking at commercial banks like these.

What is the difference in experience between community banks and mega national banks, and what might be right for you?

Typical Mega/National Bank Experience

Megabanks have an extensive regional reach, if not national. In large metropolitan areas, they have numerous branch locations and ATMs. They offer their customers a nationwide network of banking locations, which prior to digital banking tools, helped people managing their money if they worked across the country or when traveling. Businesses with locations in multiple states may benefit from their multi-state branches.

However, while these giant banks may offer a wide selection of banking and loan products, the experience can be lacking. Clients regularly report feeling like a number and not recognized for their specific needs.  When problems arise, these banks are less likely to be understanding or willing to address your personal needs.  Their policies leave little wiggle room, and they are often less understanding of their customers’ daily lives and needs. They can be less flexible or forgiving regarding personal circumstances should you or your business have special needs or fall on hard times.

With national banks, there is less attention or focus on the local communities in which they operate. It is not feasible or in the best interest of megabanks to have a community-by-community approach. Whether it is supporting local non-profit organizations or civic improvement initiatives, historically, megabanks do not provide much in resources. Because they are publicly traded companies, their interests are hinged on what is best for investors and prominent stakeholders in the short term, not necessarily what best serves a community or customers over the long run. Nearly all revenue these banks generate is pulled out of their local communities and consolidated at their headquarters, rather than recirculating it within the local communities.   

Typical Community Bank Experience

Community banks approach banking with a much different mindset than megabanks. Their success is tied directly to the success of their communities. Community banks can range from one location to dozens, but they are usually concentrated within a localized geographic area. This has advantages in how operational decisions and loan decisions are made. Not to mention advantages to customers in the attention they receive.  

Technology is usually not an issue for customers of community banks. While some of the smallest banks may have fewer mobile or digital banking options, most community banks provide digital and technology services comparable to national banks. Services such as mobile apps, mobile check deposit, and online bill pay are commonly available. Business services such as direct deposit and wires are widely available with community banks. 

However, the biggest draw to community banks centers around the personalized attention and care they can provide. Rather than a sterile experience that feels like you’re just a number or another transaction, community banks often know their customers on a first-name basis. They understand their needs. They know what they do for a living and how their family is doing. Small business owners don’t feel overshadowed by large business customers because small business is a critical sector for community banks.

Lending decisions at a community bank are made locally, allowing their lenders more input. Community bank lenders have a better understanding of the challenges and opportunities that their customers face. They have a stronger relationship with their clients and can provide better insight.

Community banks are owned and operated by individuals who live in the community and often next door to their customers. They understand their community and the ongoing financial ups and downs of it. This information and participation in the community enable banks to make business decisions that are beneficial to the community. They don’t have to worry about being held accountable to wall street investors or megabank executives.

These smaller community banks are also a key player in helping uplift local businesses and individuals. Community banks tend to be more flexible and understanding with loans and accounts than national banks who feature a rigid set of guidelines and rules. They also tend to have lower fees associated with their products and services compared to their larger counterparts. Additionally, local banks are interested in investing in their own community through donations, sponsorships, and events that benefit their customers.

The Best Community Bank in Central Missouri

The Callaway Bank is a central Missouri community bank dedicated to building lasting relationships and elevating their clients and communities through moments that matter. Founded more than 160 years ago, they are still locally owned and operated. The Callaway Bank offers a strong selection of banking products and services to small businesses and individuals. See what their clients say about banking with them. Get in touch with them and learn how they can help you pursue your passions through moments that matter.

Attention All Restaurants, Bars, Food Trucks, And Eating Establishments:

The Small Business Administration announced it would open its online application portal for the Restaurant Revitalization Fund at 11 a.m. CST Monday, May 3. Registration for the SBA application portal will begin at 8 a.m. CST Friday, April 30.

Can The Callaway Bank Help Me Apply?

Technically no. Unlike the PPP Loan program, this fund is administered directly through the SBA.

The SBA recommends qualifying applicants familiarize themselves with the application process in advance to ensure a smooth, efficient application experience, specifically by completing the following.

1. Registering for an account in advance at restaurants.sba.gov starting at 8 a.m. CST Friday, April 30.
2. Reviewing the official guidance, including program guide, frequently asked questions, and application sample.
3. Preparing the required documentation.
4. Working with a point-of-sale vendor or visiting restaurants.sba.gov to submit an application when the application portal opens. [Note: If an applicant is working with a point-of-sale vendor, they do not need to register beforehand on the site.]
5. Attending a live recorded virtual training webinar at noon CST Wednesday, April 28, or 1:30 p.m. CST Wednesday, April 28.

What is the Restaurant Revitalization Fund?

Established under the American Rescue Plan, the Restaurant Revitalization Fund provides a total of $28.6 billion in direct relief funds to restaurants and other hard-hit food establishments that have experienced economic distress and significant operational losses because of the COVID-19 pandemic. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Funds must be used for allowable expenses by March 11, 2023.

What Businesses Are Eligible To Apply?

Eligible entities who have experienced pandemic-related revenue loss include:

• Restaurants
• Food stands, food trucks, food carts
• Caterers
• Bars, saloons, lounges, taverns
• Snack and nonalcoholic beverage bars
• Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
• Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
• Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
• Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
• Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)
• Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products

Have you received a postcard or letter with “an important matter” regarding your mortgage?

Have you received a postcard or letter about a time-sensitive issue with your mortgage urging you to call an unknown phone number? If you have, you are not alone. Scammers all across the country are pulling public data records to target you and your information.

The first thing to understand is that these mailings did not come from The Callaway Bank or any other financial institution. They are sent to homeowners in the hopes of selling them something or, most often, to steal their identity by tricking them. Recipients are asked to call a phone number about an “important matter” with their loan. This scam is especially tricky because it looks like a late notice or official letter that mentions your lender by name.

The notices will often have a small disclaimer on the bottom stating, “Not Affiliated With” and your lender name. However, in the example below, there is no mention of that.

The example seen below is from Home Warranty Solutions and mentions The Callaway Bank as the lender. According to The Better Business Bureau, Home Warranty Solutions has a C rating and not BBB Accredited. The letter also gives the impression that they are working with the bank. But that is not true at all.

The Callaway Bank is committed to protecting your personal information, and we do not sell or otherwise distribute it to non-affiliate third parties. There is some information with mortgages, regardless of what lender you might have worked with, that is public record. Public Record entries are how scammers like this obtain your information. For example, companies can get information from a county recorder’s office, such as lien filings or property purchase and transfer documents, which are all public records. The records and the information they can gather are used to develop letters with detailed information to help legitimize the “important matter” they refer to.

If you receive the notice, disregard and dispose of it as you would any other junk mail. Calling the number may connect you with a real person, or it may connect you to an automated recording. Regardless, do not offer your personal information. It could lead to some unfortunate problems.

Please contact us for any questions you may have.

Have you ever wondered how your stolen information is used to commit fraud, and what you can do to help prevent it? We have some tips to help you keep your information safe.

Fraudsters have become increasingly adept at getting the information they need to commit fraud by posing as financial institution call center agents, or by sending text messages that look like they are coming from your trusted financial institution, warning of suspicious transaction activities. They are also known to call in to call centers posing as customers requesting changes to their card information and parameters. Fraudsters use information stolen through data breaches (at health insurance providers, reward program providers, credit bureaus, merchant terminals, and social media sites, to mention just a few recent ones) as well as through malware programs deployed on personal computers and other sources. Stolen personally identifiable information (PII) is combined with stolen card information, resulting in sufficient information to create profiles that fraudsters can use to position themselves as the actual cardholders.

Help protect your personal information from fraud by remembering:

A text alert from The Callaway Bank warning of suspicious activity on your card will not include a link to be clicked. You should never click on a link in a text message supposedly from The Callaway Bank. A valid notification from The Callaway Bank will provide information about the suspect transaction and ask you to reply to the text message with answers such as ‘yes’, ‘no’, ‘help’, or ‘stop,’ and will never include a link.

A text alert from The Callaway Bank will NOT be from a 10-digit number resembling a phone number. 

A phone call from The Callaway Bank’s automated dialer will only include a request for a cardholder’s zip code and no other personal information unless they confirm that a transaction is fraudulent. Only then will they be transferred to the Customer Care Team, who will ask questions to confirm their identity before proceeding with the transaction.

If at any point you are uncertain about questions being asked or the call itself, hang up and call The Callaway Bank directly at 800-446-2265 (BANK). Receive a call claiming to be The Callaway Bank call center and asking to verify transactions. You shouldn’t have to provide any information other than your zip code and a ‘yes’ or ‘no’ to the transaction provided.

The Callaway Bank will NEVER ask for the debit card PIN or the 3-digit security code on the back of your card.

Fraudsters posing as call center agents will often ask you to verify fake transactions. When you say no, you did not perform those transactions. The fraudster then says that your card will be blocked, a new card will be issued, and that they need the card’s PIN to put on the new card. Many people believe this and provide their PIN. A real call center agent will tell you to wait until you receive your new card to activate it and set a new PIN.

Regularly check your account(s) online for suspicious transactions, but especially if you are unsure about a call or text message you’ve received. If anything looks amiss, call The Callaway Bank directly for assistance.

If you receive a voice or a text message from The Callaway Bank’s fraud call center and are unsure about responding to it, call The Callaway Bank’s Customer Care Team 800-446-2265 directly for assistance.

Buying your first home can feel like a daunting task. However, if you know what to look for and what to avoid, you can bring a level of confidence to a process that seems overwhelming.

¹Subject to credit review and loan approval. Offer applies to any active or honorably discharged member of the United States Army, Navy, Air Force, Marines, Coast Guard and National Guard. Available on first lien on primary residence only for properties located in contiguous counties of or within Boone or Callaway counties in Missouri. Appraisal fee up to $1,000 will be waived. Offer made by The Callaway Bank and does not imply that any loan will be made by the VA or US Government. This offer is subject to end without advance notice.

When you can boast a 162-year legacy, 18 months is not too long to wait to bring an exciting program to fruition. For a year and a half, The Callaway Bank’s president and CEO, Kim Barnes, lead a team of people, including the board of directors, and diligently laid the groundwork for the opportunity for employees to grow with the bank and share in its success. The result is an employee stock ownership plan (ESOP) that aligns internal and external shareholder goals and serves clients to the best of our ability.

Why create an ESOP? In short, because it creates a commonality of purpose. Employees feel more vested in their careers, so there is greater motivation to do what’s in the best interest of the client, the bank and the community as a whole. The organization benefits by aligning the goals for the employees and the company. When employees see themselves as owners, they better understand how their actions drive customer satisfaction, which results in a more successful company. By being an owner, employees have a greater reason to be engaged and work together for the client’s benefit.

Commitment to Our Employees

How, exactly, did we fulfill this goal of becoming an employee and investor-owned entity? Essentially, we invested significant energy creating an ESOP and then connected it to our corporate 401(k) program, which is referred to as a KSOP.

Of course, the concept of offering employees a 401(k) is not new. However, many companies don’t also have an ESOP and fewer link it to their 401(k) plan. Our 401(k) options historically included a company match— even for part-time employees — and offered traditional stock market investment options. Today, this solid benefit has become more robust by offering employees a chance to invest a portion of their 401(k) contributions in company stock alongside the stock market investment choices. Employees benefit from the option to not only invest in their own financial future, but their company’s future, too.

Certainly, ownership opportunities have always been available to anyone interested in The Callaway Bank. In fact, our shareholders are mostly local members of the community, including some current and former employees. Yet Barnes and the board felt it was worthwhile to go a step further and give employees more opportunity to have a stake in ownership. To further show its commitment to the effort, the board made a jump start contribution to the 100+ employees at the time. Going forward, new team members can participate as well.

The Role of the ESOP in Modern Banking

ESOPs are not necessarily rare in banking, but more community banks offer them than big banks. Why? Community banks tend to make decisions for the betterment and long term well-being of their communities, which means embracing tools and strategies that support long-term success.

Our objective with The Callaway Bank ESOP is to position our financial institution to best meet the opportunities and challenges of today’s world. Not only have employee owned companies proven to be more resilient 1, but they also foster a culture of creative ownership. Individuals who believe in our company’s mission tend to gravitate toward working with us (and staying with us), which bodes well for employee retention, advancement, and engagement.

When employees are rewarded for staying with the company longer, it encourages them to go the extra mile to make their job more than “just a job.” They’re also surrounded by other team members who are just as passionate about their roles in the organization, providing a culture of ownership where everyone works together in the best interest of the community.

From our customers’ perspective, the ESOP will help The Callaway Bank perform at its best by bringing a commonality of purpose to the company and the employees — already, we’ve seen an increase in the level of motivation and creativity among employees as they embrace their stake as local owners.

In addition, having an ESOP reinforces the idea that The Callaway Bank takes community commitment seriously. For 162 years, we have valued our independent, local decision-making, and providing ownership to our employees proves and reinforces our commitment to longterm success for everyone in the equation.

For many generations, our outside supporters, customers, and team members have been our bedrock. The decision to move to an ESOP will only deepen our foundation, enabling us to focus our decisions on what makes sense for the neighbors who trust us with their financial aspirations. And who better to have a vested interest in these decisions than the people who call this community home?

Sources:
1 hbr.org, Profit Sharing Boosts Employee Productivity and Satisfaction.