Here’s how some of Columbia’s banks carry out the directives of the Community Reinvestment Act.   

You deposit some cash and checks into a savings or checking account then probably give little thought to what happens to that money – at least until you want to withdraw or transfer some of it or make sure that the account covers ongoing expenses. But what does your money do while it’s in that account as part of your bank’s overall assets portfolio?  

The answer depends on the bank’s community priorities, investment strategy, and compliance with regulations under the Community Reinvestment Act (CRA). The CRA, enacted in 1977, requires the Federal Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of the communities where they do business, including low- and moderate-income (LMI) neighborhoods.  

When a local bank contributes to a Columbia or Boone County nonprofit, that is just one of multiple ways of complying with the CRA. One notable feature of CRA-fueled initiatives is Central Bank’s ProsperU, a free financial education program. Last year, ProsperU served more than 4,000 people with financial education classes and one-on-one financial counseling, said Mary Wilkerson, senior vice president of marketing for Central Bank of Boone County.  

Wilkerson and others point out that CRA also highlights what banks already do to a vital part of their communities.  

“We have always taken the approach that complying with the CRA is really about the things we do for our community every day,” said Matt Williams, community regional executive for Simmons Bank in Columbia. “We take local deposits and lend money to individuals and small businesses in parts of our community.”   

Giving back to organizations that serve individuals in need was already a part of the bank’s culture before the CRA was enacted in 1977, he said.  

“Our bank is only as strong as the community we live in,” Williams said.  

Bill Costello, director of community affairs and senior relationship manager at The Bank of Missouri, echoed that conclusion.  

“While CRA is indeed a requirement for banks like ours, our true motivation at The Bank of Missouri for giving back to the communities we serve is driven by the care, concern, and connection we have with our friends and neighbors,” Costello said.   

In 2024 alone, The Bank of Missouri will donate to more than sixty-five individual nonprofits and causes in mid-Missouri – ranging from little league baseball teams to highway improvements and airport projects.  

Hawthorn Bank’s Corporate Communications Manager Kristin Cable highlighted a starkly visible element of lending that also meets CRA requirements: Construction. Hawthorn Bank has financed multi-unit apartment buildings aimed at providing affordable housing as well as financing building construction for local businesses, thereby contributing to job creation and revitalization of areas in Columbia, she said.  

Wilkerson explained that the CRA essentially requires three things:  

1. Serve the whole community: That can include all types of loans from business to home to others, as well as where branches and ATMs are located and even operating hours.  
    

2. Invest in the community: Generally that means the bank participates in community development projects, which might include supporting affordable housing units or working to provide homeless veterans services or other community improvement projects.  
    

3. Service to the community: This is where donations of time and money come in. In particular, CRA regulations want to see banks use their financial expertise to help low-to-moderate-income citizens and nonprofit groups.  

COMO Business Times asked several Columbia banks to provide information about how they comply with the CRA. Here are the responses we received.  

Central Bank of Boone County  

Taking another glance at ProsperU, the bank provided about 144 classes and presentations and hosted several non-profit organizations in the ProsperU space. The monthly classes serve both individuals and businesses in our community.  

Other highlights include:  

• The largest Small Business Administration lender in this market. The loans are often the only way a small business can get started, “and we pride ourselves on the expertise and experience we have in making these dreams happen,” Wilkerson said.  

• From a financial perspective, the bank consistently gives more than $300,000 each year to many nonprofit organizations. That can be as simple as tickets to an event or a multi-year capital gift. The number varies but at least 300 organizations benefit each year from Central Bank’s financial gifts.  

• Employers are asked to volunteer their time and expertise to community efforts. In 2024, forty-one employees hold leadership positions in nonprofits throughout the community and more than 130 employees report multiple volunteer efforts so far.  

• Producing “Branch Out” videos for social media that highlight small businesses and nonprofits in the community, often featuring places that might fall under the radar.  

• Even the bank’s branches each adopt a nonprofit each year to support through a variety of activities throughout the year. The bank itself chooses four nonprofits each year to do group projects for.  

• Twice each year, the bank creates a month-long promotion raising funds for two nonprofits. In June this year it was the Humane Society and Mexico Animal Shelter. In November, it will be Patriot Place and the Mexico Veterans Home.  

“Banks are reviewed for everything from the number of customer complaints we get to the types of loans we do, to how well capitalized we are,” Wilkerson said. “However, we are dealing with people’s money so it is certainly understandable that the government would want to be sure we are doing the right things.”  

First State Community Bank  

First State Community Bank (FSCB) takes great pride in being of service to the communities it serves, said Kim Ponder, executive vice president-regional retail leader for FSCB in Columbia.  

“Our resources can sometimes come in the form of a donation, but the ones that are really impactful come from hands on work,” she said. For instance:  

• In 2023, the FSCB team members served on fourteen different boards in Columbia. The team also volunteered or served more than 3,500 hours.   

• FSCB resources directly impacted eighteen United Way Agencies, and the total investment touched eighty-one nonprofit organizations, groups, or agencies.   

• Provided resources to first responders to support and serve children during an emergency.  

• Paid off school lunch balances.  

• Filled the resource closet at a local veteran’s shelter with items that are needed to transition.  

• Supported the senior center through financial training and programs designed to protect their identity and prevent scams.  

• Updated children’s toys and books at a local hospital.  

• Built and designed mobility carts.  

• Filled the pantry of a small non-profit agency with items that are not easy to collect.  

• Provided coaching and counseling on how to start a business from scratch.  

• Sponsored activities and events that further support a lift for a variety of events and causes.  

“From providing financial literacy training on how to build a budget to how to start a business,” Ponder said, “our goal is to be a trusted resource for all segments of the community.” 

Hawthorn Bank  

Hawthorn Bank serves the deposit and credit needs of the Columbia market, and other markets it serves throughout Missouri, Cable said. That includes two full-service branches, three interactive teller machines, and one ATM in Columbia.   

Other highlights include:  

• Small business loans and status as an SBA Preferred Lender. The bank’s 2024 CRA performance evaluation showed that the bank’s lending performance in low-income tracts significantly exceeds aggregate performance.  

• Credit builder loans to those who want to improve their credit score and begin saving money for a down payment.  

• Several affordable home loan products with low down payment requirements. (All loans are subject to credit approval, underwriting, and property qualifications.) Some of those loan options include Opportunity First Home Loans, HomePossible Loans, FHA, VA, and USDA loans, HomeStart Grant through FHLB, and Missouri Bond Loan through MHDC.  

The Bank of Missouri  

“Our goal in giving is to first focus on the most ‘at-risk’ members of our community and support their critical needs either directly or through the wonderful nonprofits that serve those needs,” Costello said. “But we also encourage each of our bankers to support the community on their own in a personal way.” That includes supporting team members and causes they care about by donating company time and money on their behalf. He added, “We think that’s meaningful to not just our community in general, but to our team members individually.”  

Other highlights include:  

• The Bank of Missouri has been an investor in many organizations focused on economic development. For example: The bank has been involved from both a leadership and investor level with Columbia’s Regional Economic Development Inc. (REDI).  

• Opportunities to finance projects in mid-Missouri, ranging from construction of new offices for not-for-profits, to partnering with clients that use tax credits or other subsidies to provide affordable housing in the community.  

Costello explained, “From the regional level to the street level, The Bank of Missouri is committed to not only meeting federal CRA requirements but also making a significant impact in the individual lives of the people we serve, live, and work with.”  

Simmons Bank  

Williams pointed out that Simmons has a dedicated pool of funds to provide resources to organizations that qualify as CRA-eligible – by serving LMI geographies and individuals – which is separate from the bank’s standard donations and sponsorships budget targeted for CRA giving. Among other highlights: The Simmons First Foundation that provides funding for organizations serving K-12 youth programs that may also qualify as CRA-eligible organizations.  

Williams emphasized that the Simmons Bank CRA report encapsulates what is already in the bank’s DNA – especially when it comes to building relationships with customers, organizations, and businesses, as well as the community in general.  

“In community banking, our customers are local, they have their business and personal accounts with us, we lend them money,” he said. “Those deposits that our customers have are somebody else’s home loan, somebody else’s operating line of credit, of some other type of loan. That’s always been the case for banks.”  

In essence, that means the bank’s assets that come from the community go back to the community. And it certainly bears stating that Columbia has “a very stable economic base” built around education, insurance, and finance, Williams added.  

“One of the reasons the nonprofit community here is so strong is that banks and other companies are giving back,” he said. “I think all of that benefits Columbia.”  

Williams also cited examples of how banks have partnered in ways to benefit economic development.  

“People from the outside – they see how well the banks get along. In our community, we are really fortunate,” he added. “We know each other, we like each other. We compete fiercely, but we all have a lot of respect for each other. Having banks that can work together benefits the community. I think that makes us unique.”