Independent Banker - March 2019 - 58

ways to communicate the bank's culture of
good corporate citizenry to a demographic that
values making a diff erence. He's demonstrated
this local commitment with stints as president
of the Feliciana Chamber of Commerce, the
Zachary Chamber of Commerce and the Rotary
Club of Zachary. He's served on the boards of
the Lane Regional Medical Center Foundation
and the Dixie Business Center, a smallbusiness
incubator.
Fintech and technology are critical to
Kennedy's community banking agenda. One of
Bank of Zachary's top goals has been expanding
and improving its online off erings to reach
more customers. Fitting together the pieces isn't
always easy, especially when trying to get thirdparty
products to work with core providers, but
Kennedy says there's no choice but to do it.
" Community bankers need to do whatever it
takes to make sure their banks are competing in
the areas of technology, " he warns. " If we can't
solve the fi ntech challenge, then we're just going
to become irrelevant. "
Looking up
Despite these challenges, Kennedy is fi lled with
optimism for the industry.
" As long as I've been in the banking business,
there has been the prediction that there would
no longer be community banks, " he observes. " I
believe people will always want local fi nancial
institutions to invest in, be a customer of, and
know that they are invested in communities. "
Kennedy partly attributes industry
consolidation to barriers to entry, noting that
even during the savings and loan crisis, new
community banks formed regularly. Following
the Dodd-Frank Act, just 13 de novos have
formed. Meanwhile, many community banks
are more than a century old and are often the
oldest businesses in their communities. Kennedy
believes this is a testament to their vitality.
" Our industry is alive and well, " he says. " I
don't know of any M&A fi rm that's 114 years old.
We've been around for a long time and intend to
stay around for a long time. "
Kelly Pike is a writer in Virginia.
58 Q ICBA Independent Banker Q March 2019
Kennedy addressed the Virginia Association of Community Banks last September.
Facing the fl ood
In August 2016, a stalled storm system poured about 7 trillion
gallons of rain on Louisiana, including Bank of Zachary's
footprint. Nearly everyone living in the area, including bank
employees, saw their home or vehicle flooded. And if they
weren't aff ected, a loved one was, says Preston Kennedy.
It was a devastating disaster, but, looking back, Kennedy
says it was his proudest moment as a community banker. He
got to see his bank step up and take care of everyone the
community bank serves. Here's how:
Q Community: The bank organized lunches for workers,
made monetary donations and filled the expected role of
good corporate citizens.
Q Employees: The bank, board and staff rallied around the
employees to provide what
was needed, whether it was
a place to live or a car to
drive. Teams of employees
were deployed to employee
homes to help. The bank
also created a relief fund.
Q Customers: Bank of Zachary
reached out to find out
about gaps in insurance and
provide temporary relief. The community bank expedited
the process for cashing insurance checks co-written to the
bank as lienholder, taking on a little bit of risk to get their
customers the money they needed quickly.
Q Shareholders: Bank of Zachary had a strong loan portfolio
due to conservative lending. The nightmarish flood had
little impact on its balance sheet.
Independent Banker - March 2019

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