The Peoples Community Bank
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About

Frequently Asked Questions About:

FAQs About The Peoples Community Bank

Q: How big is The Peoples Community Bank
A: In addition to assets on our balance sheet of $255,152,721, The Peoples Community Bank services assets for others totaling $236,807,370 for a total of assets under management of $501,960,091.  The bank maintains a staff of 66 and has offices in Mazomanie, Arena, Barneveld, Plain and Spring Green.

Q: How much lending has The Peoples Community Bank made recently?
A: Loans originated by the bank in 2012 totaled $154,434,000 which included consumer loans for residences and vehicles, loans to farms for purchase of real estate and equipment, loans to businesses for a multitude of purposes, and loans to area municipalities.

Q: How does The Peoples Community Bank support local charities?
A: Contributions are made to local charities through donations, food drives and fund raising activities. In addition, our employees volunteered 2,513 hours to their communities in 2012.  A partial listing of community organizations supported in 2012 can be found on our Community Support page.  

Q: What is the difference between The Peoples Community Bank and an investment bank?
A: Commercial banks and savings institutions are FDIC-insured. They accept deposits from consumers and businesses for checking and savings accounts and then lend it to consumers and businesses for autos, homes, manufacturing equipment, etc.  – Investment banks operate differently. Their primary purpose is to facilitate the sale of stocks and bonds. These Wall Street firms act as agents for companies that want to raise capital, often by issuing stock or other securities and they are not FDIC-insured.

Q: Did The Peoples Community Bank take TARP money?
A: No.  The Peoples Community Bank remained a well-capitalized, strong performing institution throughout the recession that began in 2008.  At the same time, we understand the intent of the program and are respectful to those institutions that participated.

FAQs About FDIC Insurance:

Q: Where is the safest place for my money?
A: The safest place for your money is in the bank. It’s FDIC-insured and it’s accessible.

Q: How do I know that bank deposits are safe?
A: Bank deposits are FDIC-insured. No one has ever lost a penny of an FDIC-insured deposit. FDIC insurance now covers $250,000 per depositor per insured bank.

Q: Who pays for FDIC insurance?
A: All banks pay premiums to protect depositors’ accounts much like car owners pay for auto insurance. All costs of the FDIC are paid by the banking industry, not taxpayers. The U.S. Treasury acts as a backstop, if needed, but banks would be required to repay every penny.

FAQs About the U.S. Banking Industry:

Q: How big is the banking industry?
A: The United States has more than 7,600 banks with more than $13 trillion in assets and 2 million employees. There are more bank branches (90,000) than movie theaters or shopping malls. An additional 400,000 ATM locations give banks a physical presence in almost every community.  And, with mobile and Internet banking, banks can travel with customers wherever they go.

Q: Why is the banking industry important to the economy?
A: Banks make loans to consumers to finance the purchases of homes, education, cars and major appliances. Bank credit helps small businesses get started, grow and prosper and provides funding and other services to larger corporations. Bankers help state and local governments fund a variety of public improvements like schools, roads, water and sewer and public health facilities. They are also major players in financing the federal government as both dealers and holders of treasury and agency debt securities. In each of these roles banks support the creation of jobs and the growth in our economy.

Q: Do banks support small businesses?

A: Banks are the primary lender to small business. They hold more than $620 million in small business loans, representing a quarter of all bank business loans. And, the banking industry is the largest supplier of credit to farmers and ranchers. The presence of banks in small communities throughout our nation is critical to meeting the unique needs of small businesses. Banks and small business have a shared interest to help the community thrive.

Q: Isn’t banking dominated by a few giant banks?
A: In terms of assets, yes.  In terms of total numbers, no.  Most banks are small businesses.  The median-sized bank employs 37 people and has $154 million in assets.  There are 3,000 banks with fewer than 30 employees.

Q: Is more regulation a bad thing?
A: We have to strike the right balance. Too much regulation can be as bad as too little regulation. Traditional Main Street banks that stayed with sound banking practices should not face Wall Street-sized regulations. This increases banks’ overhead, resulting in higher costs for everyone and takes resources away from local lending.

Q: What about the increase in bank failures in the last few years?
A: The most important thing for bank customers is to know their money is safe. In the more than 75-year history of the FDIC, not a penny of insured deposits has ever been lost.  The severe economic recession we experienced caused an increase in bank failures.  The banking industry has paid for all costs of the FDIC bank failures and paid more than three years of premiums in 2012 to ensure that the FDIC has the resources to handle future failures.  The vast majority of America’s 7,600 banks remain healthy.  Ninety-five percent of banks are classified as “well capitalized,” which is the highest regulatory designation possible.

Q: Are most banks only looking out for short-term gains?
A: No. Banks cannot be successful without developing and maintaining long-term relationships with customers. One out of every three banks has served its local community for more than a century. And most banks (64 percent) have been in business for 50 years or more. Since the first U.S. bank was chartered in 1782, banks have been integrally linked to the communities they serve.  The Peoples Community Bank was chartered by the State of Wisconsin on November 2, 1891 and has continuously served communities in the area since that time.

 

(information last updated 04/01/13)