In The News

Eco-Friendly Commitment

By: Michael Scheibach

Freedom Bank serves Columbia Falls, Mont., located on the western edge of the Continental Divide and best known as the “gateway to Glacier National Park.” The bank, opened just four years ago, has grown to $66 million in assets and is firmly committed to serving this community of some 5,300 — a community that prides itself on being a recreational destination with everything from snowboarding and skiing in the winter to fly fishing and river rafting in the summer.

This commitment began with Don Bennett, founder and president. His decision to start Freedom Bank after 16 years as president of First Citizens Bank in Columbia Falls resulted from the loss of local control. Bennett wanted a bank that could respond to community needs without the bureaucracy. “I felt the time was right for the establishment of a new independent bank with local decision-making capabilities,” he says. “Starting a new bank from scratch was a daunting process, but it has been a very challenging and rewarding experience.”

Today, Freedom Bank operates in a new, energy-efficient building, has implemented paperless technologies and, perhaps most important, is taking a leadership role in helping the community become more environmentally friendly.

Western Banking talked with Bennett to learn more about how his bank is going green, as well as his own views about community banks’ role in promoting environmental initiatives.

WB: How has the community responded to Freedom Bank and contributed to its success?
DB: Freedom Bank has enjoyed tremendous acceptance by our community and our growth has greatly exceeded our original expectations. The bank has grown primarily through a word-of-mouth strategy and by focusing on our customers and our community. We built a very attractive building that many people in our community are proud to be a part of. The building was designed to incorporate energy efficiencies, low maintenance and employee comfort.

WB: What importance does the community place on protecting the environment?
DB: We are located in a gorgeous part of the country, as we are only 15 miles from the entrance to Glacier National Park. We have many rivers and lakes that are in pristine condition. The citizens of Columbia Falls and the greater Flathead Valley are very cognizant of the importance of maintaining the natural beauty of the area and the protection of the exquisite water quality. The quality of our environment plays a critical role in the health of our communities and has an impact on the well-being of every individual.

WB: Specifically, what do your customers expect from Freedom Bank in terms of environmental initiatives?
DB: I believe everyone is becoming more conscious of the impacts we all have on our environment. Community banks are often looked at as providing leadership in their communities on both a personal and professional basis. Our consumer and business customers look to us for support of organizations that promote the preservation of our quality of life and the sustainability of our local natural resources. They also expect us to do our part in helping to reduce the impact that we have on our environment through energy conservation, operational efficiencies, recycling and effective utilization of resources.

WB: What has Freedom Bank done to demonstrate its commitment to the environment? For example, has it adopted paperless technologies or introduced customer services that help the environment?
DB: We have demonstrated our commitment to the environment by constructing a very energy-efficient building; adopting paperless technologies, such as the Efficient Loan File Management System, also known as ELF; utilizing energy-saving heating, cooling and lighting technologies; and employing paper-saving processes, such as printing on both sides of paper documents and using imaging technologies that eliminate the use of paper and carbon toner. By implementing these strategies, Freedom Bank has been able to significantly reduce operational costs as compared to our peers. An added benefit is that we are able to provide a higher level of customer service and satisfaction.

WB: To go a little further, what are your future plans for going green? And what are your primary reasons for implementing these plans?
DB: We are continually assessing our operational processes to increase our efficiency and enhance our resource utilization. A bank’s loan department, for example, generally uses a significant amount of paper and toner to produce and document loan files. Our use of the ELF software has greatly reduced our dependence on paper files, while providing superior loan documentation and customer service. The ELF system not only reduces the bank’s use of paper; it also reduces the amount of paper used by our customers because they can deliver required documentation through electronic channels as opposed to delivering physical documents. This also reduces the energy and resources that would otherwise be expended through the normal mail channels. Physical file space is a precious commodity for banks, as well, and our utilization of electronic loan files greatly reduces the amount of file and storage space necessary for our operations.

WB: Much has been written about going green being an expensive endeavor for a bank. Do you believe it is more difficult to implement eco-friendly products or programs as a small community bank? What specific ways can smaller banks move forward in their environmental efforts?
DB: Our experience has been that going green may require a little more investment at the front end; however, we have found that our initial investment in the energy-saving features of our physical plant and the adoption of the ELF system have actually saved us money. And we recouped the initial investment within a short time frame. The real beauty of implementing these eco-friendly strategies is that we will continue to save money well into the future. Expense reduction flows through to the bottom line.

WB: Finally, do you believe community banks should take a leadership role in helping their respective communities become more environmentally friendly?
DB: I believe it is very important for community banks to take a leadership role in helping their communities become more environmentally friendly because community banks are respected institutions in their communities and it is important that they lead by example.

Michael Scheibach is executive editor of Western Banking.

Copyright © January-February 2010 BankNews Media

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