Area financial institutions underwent much change in 2023, from a new chief executive at 717 Credit Union to the start of construction for a new headquarters for Farmers National Bank to technology improvements at both and at Premier Bank.

717 Credit Union

Based in Howland, the institution underwent a leadership change in 2023 with the retirement of chief executive Gary Soukenik, who served the institution 46 years.

His successor is John Demmler, who started in the role Nov. 1.

Demmler said 2023 was a “rough year” for the banking industry, but 717 “had a tremendous year. We grew our membership by over 10,000,” a 9% increase.

717 also grew its deposits by 6%, Demmler said, in part because of a merger with Youngstown City Schools Credit Union that brought in 1,200 members from the greater Youngstown area into 717.

A lot of institutions pulled back on lending in 2023 because of tight liquidity, which pushed up loan rates and interrupted auto sales, Demmler said.

717, however, “had a very strong lending year last year” with more than 8,000 auto loans.

He said 717 also had a “very strong year with mortgage lending,” despite the high interest rates in the marketplace.

“But we made 460 mortgage loans last year. And for us, that’s a pretty strong year given the interest rate environment,” he said.

717 also put $67 million into small business lending in 2023, Demmler said.

On the technology front, 717 launched “digital banking” last year.

“If you have ever called into a customer service line and pressed 1 or 2 or 3 or 4. And at some point you just end up yelling into the phone ‘customer service representative,’ and when you get somebody, it’s really hard for that person to relate to you over the phone. They don’t know what you just went through. But when someone pops up on a video screen and you can see that person face to face and they can see your facial expression and you can get feedback from them on the service issue you are trying to work through, or questions you have, that’s really transformative in terms of service delivery,” he said.

He said the tool also facilitates business account transactions.

The credit union is also adding a tool called Savvy Money that helps the credit union provide financial literacy and education to credit union members. They can access it online or through their mobile app.

Farmers National Bank

Farmers National Bank started work on a 27,000-square-foot expansion of its downtown Canfield headquarters on South Broad Street in 2023.

When it’s completed, about 200 employees will work at the headquarters, which, according to Shawn Pompelia, Farmers National Bank northern market president, will occupy the entire block.

Also last year, Farmer’s merged with Pennsylvania-based Emclaire Financial Corp., the holding company of the Farmers National Bank of Emlenton. The transaction took Farmers’ assets above $5 billion.

“When banks are being sold or banks are closing branches, it’s nice to have a community bank such as Farmer’s that has been around since 1887 that has shown stability in our market. We’re proud of that,” Pompelia said.

Farmer’s has had 164 profitable quarters in a row, which translates to 41 consecutive years, Pompelia said.

A key to the bank’s success, especially in today’s online world, is “we want to make sure we take care of our customers,” he said. “They are our primary focus.”

Pompelia works at the bank’s Howland office on state Route 46. His customers have his cellphone number, he said.

“In today’s world, they can bank anywhere. And being a community bank, I think it’s important that we make ourselves accessible to our clients to let them know we don’t take them for granted. I think that’s important in today’s world,” he said.

Pompelia said there is a race to provide the most technology-driven services.

“We have some great mortgage applications online, but it still goes back to people skills, and it still goes back to sitting with individuals that want to look someone in the eye and hear sound advice,” he said.

“We have great advisers through our investment side of the bank that will sit down with customers and discuss what plans they have. And I think sitting in front of someone, building trust and rapport is important in today’s world,” he said.

PREMIER BANK

Premier Bank is growing with the acquisition of new offices in places like Avon and Medina, improving the ways customers can get help with their banking needs, utilizing products such as Zelle and helping customers avoid fraud.

“COVID pushed people more into the digital side of banking. It was just a small percentage before that. But the lockdown kept people in their house, doing banking that way,” said Josh Toot, Premier Bank market president and executive vice president.

“So we have focused on technology upgrades, not only for our clients, but for our employees,” he said. “So we still feel with our client base that the brick-and-mortar is still extremely important, and we’re looking to branch out into more communities that we are not currently in.”

Premier has launched a new secure customer service platform that allows customers to talk with a live person via a chat function on the bank’s website.

“They can put a hold on your card. They can stop a check. They can do just about anything that you could do in a branch. So that makes it very customer friendly,” Toot said.

To help combat fraud, the bank has what is called “positive pay,” meaning the bank is looking at checks presented for payment to make sure it is OK with the customer if the bank releases funds.

Another way is Automated Clearing House, or ACH, which is when a person has money automatically taken from their account to pay for a bill. It is a more secure way of paying for things because most fraud occurs through a customer’s use of paper checks.

Premiere also has launched Integrated Payables for business customers that relieves a business of having to send out lots of checks. Instead, the bank uses the company’s accounting software and sends out payables digitally for the business customer.

Premier is also partnered with Zelle, a product that allows a customer to transfer money to family or friends. It’s another way to reduce the number of checks being used and another way to reduce the risk of fraud.

Toot said no matter what the bank has done to improve technology, it still offers services that don’t rely on technology.

“We can do anything in person, anything over the phone that we can do from a technology perspective,” he said.

MIDDLEFIELD BANK

Middlefield Bank has grown to 21 locations across its 12-county footprint in northeast, central and western Ohio. Its Cortland branch on Route 46 was built in 2008 and serves customers from across Trumbull and Mahoning counties.

Its Cortland management team averages more than 25 years of experience, with expertise in deposits, mortgages and commercial lending.

Middlefield Bank’s business clients have said that they partner with the bank because of its personalized approach to lending, with local decision making, and “we have been able to find unique solutions to meet their business objectives while other banks have fallen short,” said Melissa Maki, vice president of marketing and communications director.

Have an interesting story? Email Ed Runyan at erunyan@vindy.com.