A Bank Success Story, Told By the Numbers

AdamsDairyBank-ClientNews-LogoAdams Dairy Bank opened in January 2008, at the very beginning of one of the greatest recessions of our time. Nobody could have anticipated the challenging financial climate this young upstart would face.

Many banks, long-established prior to the recession, couldn’t navigate the turmoil and closed or merged with other stronger banks. It was a tenuous time and definitely not one conducive to launching or growing a small suburban community bank.

That’s why this month’s area financial institution rankings (as compiled by the Kansas City Business Journal) are a remarkable testament to the success-in-the-face-of-adversity story of Adams Dairy Bank located in Blue Springs, Mo.

This month Adams Dairy Bank appeared among the top area banks on four lists reported by the Journal. All of the lists use data as of December 31, 2013 for the 2013 calendar year:

Top Area Commercial Lending Banks – Ranked By Local Commercial Loans
Adams Dairy Bank – 25 of 25 at $45,586,513

Top Area Commercial Lending Banks – Ranked By Largest Commercial Loan
Adams Dairy Bank – 14 of 17 at $2,450,000

Top Area Commercial Lending Banks – Ranked By Loan to Deposit Ratio
Adams Dairy Bank – 9 of 25 at 82.26%

Top Area Commercial Banks – Ranked By Deposits
Adams Dairy Bank – 24 of 26 at $61,000,000

Open just over six years, Adams Dairy Bank always expected to outlast the economic storm, but to thrive and grow into one of the top area banks would have been overly optimistic, and for good reason.

The Federal Deposit Insurance Corporation (FDIC) closed 465 failed banks from 2008 to 2012. In contrast, in the five years prior to 2008, only 10 banks failed.Many in the financial services industry wondered, will commercial banking ever be the same – post recession?

“We certainly hope commercial banking has changed forever,” says Adams Dairy Bank President and CEO David Charles Chinnery.  “It is our responsibility to our shareholders and our customers to make sound business decisions, not just banking decisions. This is a very different way of doing business for a bank. We are customer-focused, community-focused and financially-focused, in equal measure.”

One of the ways in which Adams Dairy Bank operates with a business focus is by maintaining only one location, a sharp contrast to most other large banks. “Technology allows us to serve our customers all over the region and the world, without the cost of opening a branch on every corner. And our clients welcome this approach,” added Chinnery.

Simple survival was never the intention of the nearly 150 local shareholders of Adams Dairy Bank. Slow, steady, profitable growth was always the goal even when faced the most formidable task of buying out the original 51% owner.

In 2009, under the weight of recession pressures, the majority stakeholder Capital BancCorp of Michigan began to struggle as several banks within their portfolio failed. Not wanting to get caught in a whirlwind downturn, local shareholders rallied and purchased full ownership of the bank in 2010.

Today Adams Dairy Bank is 100% owned by local shareholders with a community stake in the bank’s success. The numbers reported this month are another affirmation to the countless individuals who helped support the bank during some tumultuous times.

“Our future is bright,” says Chinnery as he reflects on the bank’s brief history. “The numbers tell a compelling story this month but we must never rest on our laurels. Having outlasted the recession we know we must remain diligent to be the best bankers and neighbors we can be.”

Read the full history of Adams Dairy Bank.

About Adams Dairy Bank

Adams Dairy Bank, located near the intersection of I-70 and Adams Dairy Parkway, is a full-service community bank serving the greater eastern Jackson County community. Based in Blue Springs, Mo., the Adams Dairy Bank associates, board members and nearly 150 local shareholders are creating a banking-family environment by serving individuals, small- to mid-size business owners, and professional corporations in the region. In addition to their convenient location in Coronado Place, Adams Dairy Bank customers have access to over 300 ATMs through the UltraSF network. For more information, visit www.AdamsDairyBank.com.