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tree fmr
Advisor

Re: How long do you stay with your bank?

My Dad has been with the same small town bank his Dad banked at his entire life (Dad is in his 80's).  I also belong to USAA and Navy Federal Credit Union.  These are great for online services and loan rates.  But for my farm loans I use the small bank that my Dad does, everything is so simple there.  Matter of fact I closed on my first 80, in Iowa, while I was stationed in Hawaii then signed loan documents and payed closing costs 5 months later when I was on vacation at home.  The bank covered everything for me with no additional fees.  Its hard to beat service like that.  Of course they cannot support large loans so have to go some place else for them.  Then getting low interest and no pre pay penalty is most important to me. 

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greenup3399293
Veteran Reader

Re: HOw long do you stay with your bank?

I am on my third bank in 30plus years . I st bank  I was just starting and not very big I referred a acquaintance to them . He later  thanked me and told me the rate which was a lot better rate than I was getting .I asked the loan officer if  my I was more of a risk he laughed and said no that the bank had some lea way with rates to attract new customers. I said OK  . I went out of his office told the loan dept to total up my notes with intrest and I would be in 2 days to pay them off.

 My loan officer came driving out in his Caddy that afternoon drove out to the field I was working on fence. He got out of the car and said he had made a mistake and he would match the rate.  Sorry I said it was over nothing he could say would have changed my mind.

 I may have been wrong but loyalty has always been important to me.

seed corn companies could learn to treat customers as they would like to be treated.

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Kay/NC
Honored Advisor

Re: How long do you stay with your bank?

We are having a spirited discussion about boycotting Walmart on the women's page...and it occurred to me that this is really no different.  If people don't patronize their smalltown banks, there won't be any left before long. 

A lot of them went belly up in the failures following the mortgage meltdown...they weren't too big to fail.  Those that were bought up and continued in place were likely eaten up by bigger regional banking companies.    We will probably look back on this era as having had that effect as a drastic consolidator. 

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WI AgLender
Contributor

Re: How long do you stay with your bank?

Are you loyal to the institution or the loan officer working there?

 

Would you stay with your local long time bank if they got bought out by a big bank, but they kept your loan officer as an employee?

Kind of a conflict between your ethical issue of big corporations and loyalty to your loan officer.

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jrsiajdranch
Veteran Advisor

Re: How long do you stay with your bank?

Wisc Ag Lender.  I have been real busy trying to catch up on field work so I didn't get back to this till this morning Probably won't be back in the house now till 12 or 1 for lunch.

My first bank was the bank My dad had done business with through the 80's.  Times were tough and Dad and the Bank had some tough decisions to make but the Man who was in charge of ag loans was very experienced and a good people person.  In 87 he retired and they brought on a new guy from outside at that time the Bank wanted to focus on non ag loans and service suffered as well as the feeling that they just didn't want us any more. by 92 we were looking into farm credit.

 

Went to farm credit from 92-98,  They seemed to always be pushing some type of expansion and a bring everything to us type of attitude which finally turned us off. In 96 we had a complete crop failure only able to plant half our corn acres and then most was pl;anted about the last two weeks of June. That was a real hard year.  THe loan officer who had us was no help.  Found out later he was Hoping we would sell out so uncle could farm our ground.

 

98 went to new bank and stayed there till 2002 till I moved to Iowa.

 

First bank out here was OK it was real hard to break into the small community.  I also didn't have all my ducks in a row so it made tensions.  I am sure most of the relationship problems I had with that bank were on me.

 

Switched to new bank in 2008. Stayeed with them 18 months when loan officer left unexpectidly I realized the rest of the bank didn't know me and I felt wierd coing in there as I still had relationship outsice of banking with loan officer.

 

New bank is OK Dairying has been tough and He is really not up to speed with dairies needs. But I am tired of switching and decided to make it work.

 

Terms for me are probably most important though out here the schedles are more accustomed to the crop farmer than the dairy guy and that makes it tough.

 

Mowed hay yesterday through standing water the leaf hoppers have reallly taken over though quality will definantly be down. JR

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WI AgLender
Contributor

Re: How long do you stay with your bank?

It seems to matter more about the Loan officer than the name on the building.  Makes me feel like some of us are doing an alright job.

We do have mostly dairy loans, and we do get specialized at that, and probably lack in other areas.  Crop loans are easy to structure, and it doesn't take to much creativity.  I would echo earlier statements that you just need to "train" your account officer. 

 

the sad part is that your loan officer shouldn't push anything on you.  they should be more of a trusted advisor and try to show you why you may / may not need something he offers.  The loan officer selling products is looking out for the company, and not your bottom line!

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k-289
Senior Advisor

Re: How long do you stay with your bank?

Read the Denverpost this AM about some more dairy troubles---2 big to fail must not apply there--if they close who cleans up the manure and waste??? 

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68jd4020
Veteran Reader

Re: How long do you stay with your bank?

I have been farming for 20 yrs and I had one bank for 14 yrs till they peeeed me off. 
I have two different banks now.  FC and local big bank.  I am very loyal, operation got bigger and FC had better rates on land and Big equipment loans than local bank.  Local bank great for checking and operating notes.

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belarus
Senior Contributor

Re: HOw long do you stay with your bank?

what side of town did you live on?  That's an interesting area once you go north of Bronson.

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Kay/NC
Honored Advisor

Re: How long do you stay with your bank?

I am not necessarily anti-corp.  We make good money raising pigs for Smithfield, and I deal with the largest mining company of its type in the world routinely, too. 

 

We probably dealt with who we dealt with due to the Farm Credit loan officer, but he did not gain our business.  We walked in the door with the proposal for them two years into this farm, and they jumped at the chance to get that size loan with positive cashflow already established...no growing pains, construction crap all past, etc.  We liked him and we stayed and are happy we did.

Our bank is a big regional one, and buys up others.  They push the "relationship banking" approach, which we really like.   I tend to use one local branch, and the girls there all know me and are very nice.  Even when I travel, the  branches away from home are very helpful, too. 

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