Member Spotlight: Mid America Bank

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What inspired Mid America Bank’s founding? How do those roots influence your operations today?

   Dave Hill started MAB in 1997; he saw a need for a local real estate lender. He owned a mortgage company at the time, but it could only finance purchases and refinances.  Land, construction, and home improvement loans required a bank. His investor group bought a small bank in Esbon, KS, located a few miles from the geographic middle of the United States. They changed the name to Mid America Bank and eventually moved it to Baldwin.

   Dave previously worked in banks in smaller communities where he saw the leadership role banks should play in their community. We always say you won’t find a good bank in a bad town. This influences our operations.

What challenges has MAB faced as a community bank? How have they shaped your growth strategy?

   Finding the right people is challenging for business owners. MAB employs 60 people across 7 locations and is usually hiring somewhere. Sometimes there’s pressure to fill a role ASAP, but patience is wiser. There’s a balance to finding the right skills, aptitude, and work ethic. We think we have a great team currently.

   Change is a constant challenge, and we invest considerable financial and personnel resources into preparing. Regulatory change and implementing new technology are continuous obligations. We anticipate economic fluctuations, but some changes are unexpected - for example COVID.  

   Our recent, rapid growth is its own challenge; however, it allowed us to hire talented people who specialize in specific areas. Now we don’t have to wear so many hats, which makes us better at our jobs.

What features does MAB offer to enhance online banking for your customers?

   Mobile banking changed how, when, and where people bank. Today’s emphasis is on fast, convenient payments, and most people have a preferred P2P method. Our app integrates with Zelle, and customers can pay bills, transfer money, and originate ACH transactions. Our debit cards are contactless, and we are working to tokenize them. This allows debit cards to sync with Apple Pay or Google Pay, for example. Most banks utilize the same technology, but people are most important, and they make the difference. 

What are some of MAB’s future goals?

We are goal oriented, but this has been an exceptionally ambitious year. A new branch will open mid-December in Eudora. Dave grew up there and maintains many personal relationships. When Panasonic announced their new battery facility, it seemed the right time.

   Another bank closed its branch in Palco, KS, leaving them without a bank. We hope to bring great banking services back to their community. The great team we found to run it will be the key to our success there.

   We are also branching into Norton, KS. We lived there 8 years before moving to Baldwin and have a passion for that community. Opening is several months away, but like Palco, finding the right team will be the key to success.

   Our next goal is getting these new branches operating the way we want which includes training, establishing culture, and building new relationships. We’re not done growing, but there isn’t anything on our radar currently. If we continue offering great customer service, growth will naturally follow.

What key services does MAB offer, especially ones tailored to Baldwin City’s needs?

   Our real estate focus has contributed greatly to Baldwin. Many people work elsewhere but want to come home to a community like Baldwin.  We need houses to come home to. MAB has financed the majority of Baldwin’s new construction over the last 25 years. We also developed a loan specifically for rehabbing existing homes which contributes to Baldwin’s character and charm.

   Real estate lending is important for a community’s growth. Large banks aren’t making construction loans in small towns.  They don’t know our market or great builders. 

What differentiates MAB’s customer service approach from larger banks, and how do you ensure a personalized experience for clients?

   Personal connections set us apart from large banks. MAB has great employees, and some have been with us a long time.  They know our customers and greet them by name. That should be common sense, but it’s not that way everywhere. Corporate culture experiences high turnover which hinders employees from being there long enough to know the customers.   

How does customer feedback influence MAB’s services?

   We listen to our customers.  Several products and services we offer resulted from customer requests.  When a customer mentions something, it’s worth researching. If it’s a reoccurring request, it should be considered more seriously.

   Our employees have great ideas and provide feedback too.  They see where we can do something different or better, even without customer input. This helps us be proactive instead of reactive. 

Other than providing banking services, how does MAB engage with the local community?

   Our engagement is mostly financial.  We focus on areas that positively impact quality of life.  For example, the staff at the Baldwin City Recreation Commission, the Lumberyard Arts Center, and Rainbow Experience Preschool all put in time and hard work, so we’re glad to contribute financially.  Recently, we were excited to support the community center renovation.

How has MAB made a positive impact on the communities wherein you operate?

   We hope to have a similar impact in all the communities where we work.

We positively impact Baldwin through the business community and job availability. During Covid we did over 300 Paycheck Protection Program loans (not all were in Baldwin). This helped many businesses through the pandemic.

   MAB opened with 7 employees, and today we employ 35 in Baldwin. We are a good option for someone who wants to work close to home. People who work close to home are more personally invested in their work. They spend less time commuting and more time with their families.

What financial advice do you have for individuals and small businesses looking to improve their financial health?

   We promote a basic concept called “The Four Buckets”.  It is effectively budgeting and “filling” each bucket in this order:  Bucket #1: a checking account for day-to-day expenses.  Bucket #2: short-term savings for insurance, taxes, or unexpected expenses, etc. It should have at least 3 months’ reserves.  Bucket #3: long-term savings for buying a car or a down payment on a house, etc. Bucket #4: saving for retirement.  Budgeting eliminates a lot of financial headaches.