Except when the owners switch from being a “mutual” bank to a public bank. And then they sell themselves for millions in their pockets.
I worked for one of those. I work with guys who were brought in specifically for that purpose. I worked for the big bank that bought the little banks afterwards. If you want to hear jerks, listen to the Senior level management of those small banks in the “merger” conference room after the sale. They couldn’t care less about their customers.
I am very familiar with the banking industry. I am also not stupid. There are countless local banks that are financially sound...and they can be checked out. They provide the competition to the mega-banks.....and they also provide much better service in many ways.
You can actually knock on a glass panel, wave and talk personally to the president or senior veep of the institution.
I feel more secure with my prosperous, small, conservative local bank than I did last week when I was banking with BOA.
It's not necessary to be pessimistic and distrusting of ALL local banks. Anecdotal evidence of a relatively minor national percentage of local banks being unresponsive to customers, greedy and going belly-up does not a whole industry make.
I like to keep the money in the community, also.
Leni