ESOP-Owned Bank Thrives
Last November we discussed how Thriving ESOP-Owned Banks like the Paducah Bank & Trust Company Keep Employee Turnover Low.
Shared Ownership Helps Bank Thrive in a Downturn discusses how Paducah, a Top Small Workplaces winner and 23% ESOP-Owned, increased their earnings by 24% in 2008 in large part to their commitment to their employees and the community:
Marketing Director Susan Guess has worked with the bank for 10 years and highlights the option for ownership as fundamental to the organization's nature as one of the country's Top Small Workplaces. "We all are a part of achieving that success and we all share in the rewards that are associated with making good decisions and providing superior service," she says.
Paducah Bank's President, Wally Bateman, similarly argues that the ownership program serves to reinforce these values of foresight and quality service. "As an employee sees modest beginnings turn into hundreds of thousands of dollars, it's pretty easy for them to keep their eye on the ball," he says, adding, "Our employees know that it's going to be a long haul. They're not chasing one quarter to the next. If we hold true and steady, in the end the reward for them is going to be tremendous."
In recalling how industry conditions soured nationally, Bateman cites the fundamentals. "In any industry, I think greed has a lot to do with it," he says. "It's a lack of attention to the risk. People try to grow way too fast, and they're so hung up on the numbers."…
Beyond excellent service at the teller window, the bank is held in high esteem among community members in terms of its wider involvement, development and donations. Citing one statistic he's particularly proud of, Bateman explains that for 15 years running Paducah employees have maintained 100 percent participation in The United Way, making the bank the largest single contributor to their local campaign.