Independence Bank ranks second in the nation among community banks

Independence Bancshares Inc. has grabbed the No. 2 spot in a leading financial intelligence provider’s ranking of the best-performing community banks in the country with between $500 million and $5 billion in assets.

Texas-based Westar Bank Holding Co. Inc. was No. 1 in the national rankings.

Independence, with $1.012 billion in assets, did not significantly out-perform the top 100 banks in any one category used for the analysis, but it scored well enough across the board to lock in second place.

That assessment came from SNL Financial, which provides information and analysis for banks, financial, insurance, real estate, energy and media/communications companies.

“That means there was nothing extreme in any one area,” Independence President Darrell Higginbotham said. “We performed well enough in all categories to earn that second ranking.”

Of the 760 community banks that fit SNL’s criteria for the rankings, none has more than 60 offices.

If consolidated information was reported, the bank was ranked at the holding company level. Otherwise, SNL used commercial bank subsidiary data.

Higginbotham said another major takeaway from the No. 2 ranking is that it’s an asset for the community to have a nationally-ranked bank with the strength and stability to meet the region’s financial needs.

Here is Independence’s performance in the six areas that were ranked: 1.89 percent in return on average tangible assets before tax; .11 percent in net charge-offs as a percent of average loans; .46 percent adjusted nonperforming loans as a percent of total loans; 54.46 percent operating expenses as a percent of operating revenue; 4.37 percent net interest margin; 9.02 percent loan growth rate.

Higginbotham and CEO Chris Reid attribute the company’s success to its quality employees.

“We also think that it’s a validation of our strategies, of how we provide community bank services, and that communities are responding to how we do business,” Higginbotham said.

Northern Bancorp Inc. of Woburn, Mass. kept its net charge-offs to almost zero (.01 percent) to make it into the third slot.

Kentucky placed seven of its 22 banks eligible for this analysis in the top 100.

Independence Bank’s roots are in McLean County where Farmers & Merchants Bank opened in 1909. The modern-day history, however, began in 1971 when Charles A. Reid and Maurice E. Reisz purchased that bank and Providence State Bank in Webster County.

Soon after, current CEO Chris Reid joined his father and uncle and assumed a leadership role in the banks. In 1997, the two small banks were incorporated under one name, Independence Bank.

The bank has grown fast with offices now in Henderson and Owensboro, Sebree, Beech Grove, Hawesville, Lewisport, Bowling Green and Paducah.

The banks now employ more than 250 people.

Joy Campbell, 691-7299, jcampbell@messenger-inquirer.com

Community Campus receives grant funding

Community Campus has received two grants totaling $125,000 to fund and help expand the campus’ biomedical and energy technology academies that will enroll students in the fall and next year.

An experimental partnership between local school districts, colleges and businesses, Community Campus is tasked with finding new ways to educate students. The goal is to better prepare students for college or the job market by teaching them real-world situations and applications of their lessons.

These grants are both funded by the national education initiative Project Lead the Way, according to a release from Daviess County Public Schools, one of the key partners in Community Campus.

Marcia Carpenter, DCPS College and Career Readiness Coordinator, said Project Lead the Way is an education initiative based on improving education, just as Community Campus is.

“Project Lead the Way, what makes it unique is that it is relevant, the learning that students do is meaningful and everything is related to a real-world situation. Students are hungry for relevance,” Carpenter said. “I think the fact that we received the grant is an acknowledgement of the faith they have in what is being done in this area.”

The first grant, $50,000, will go to the Life Sciences Academy that is due to enroll students for the 2012-13 school year. The funds will be used to implement a four-class course of study under the academy.

“The Life Science Academy will start for the 2012-13 school year and this grant provides the start-up money for the Project Lead the Way Biomedical Program, which will be the anchor for that academy,” Carpenter said. “It’s all learning by doing. All of the projects are based on simulations of real-life situations ... “It (the grant) also directly meets the needs that have been identified in our community for a growing health care community.”

The second grant, worth $75,000, will go to fund the Construction, Energy and Trades Academy and create an integrated pipeline course that will help middle school students interested in energy-related fields get on track to that academy.

“The energy-technology side starts with middle school. It’s a pipeline program that will lead into high school for an awareness on the kind of energy that we are using, the kinds of energy we’ll be using in the future and the consequences of energy use, such as pollution control,” Carpenter said.

Daviess County Public Schools Superintendent Tom Shelton said the grant funding is a big boost to Community Campus.

“I think it’ll definitely help us move Community Campus and our academies forward,” Shelton said. “This really builds the foundation for us in each of these programs.”

Shelton added that because of the cooperative nature of Community Campus, this money goes to help more than just one school system.

“It’ll benefit not only our district, but students from other surrounding school districts as well,” Shelton said. “These grants allow us also to have further conversations about how to structure programs for the future and continue to expand opportunities for students that we wouldn’t have had otherwise.”

Dariush Shafa, 691-7302, dshafa@messenger-inquirer.com

OCTC and Jobs

In further reflection and commemoration of the 25th anniversary celebration of the Owensboro Community and Technical College, I offer the following analysis of jobs data before and after the establishment of the college in 1986.

• According to the Bureau of Economic Analysis, Owensboro has experienced far higher rates of job growth since the opening of OCTC when compared to the 15 years prior to the existence of the college.  Job growth in the region from 1970 to 1985 was 17%, compared to 25% since the opening of OCTC in 1986.  
• As far as manufacturing jobs are concerned the numbers are striking and significant.  In the 15 years before OCTC opened its doors, the region was bleeding manufacturing jobs at a rate of  hundreds of jobs a year.   A total of 1,500 jobs or 16% were lost from 1970 to 1985.  In the 15 years after the college opened, the region actually gained manufacturing jobs.  Manufacturing job retention rates in Owensboro from 1985 to 2008 far surpass the national level and the levels in many of Owensboro's peer regions.   Since 1985, Owensboro has retained 98% of manufacturing jobs.  This compares favorably to 85% nationally and 70% in our peer regions.   The importance of a highly skilled and technical workforce is a critical component of this retention and OCTC, particularly since the consolidation of the technical programs, has been a key part of the region's competitiveness in the retention of manufacturing jobs. 
• Since the college opened Owensboro has seen a marked increase in professional service occupations that typically require some form of post secondary preparation, a 50% increase since 1985.  This compares to 30% increase from 1970 to 1985.  

I recognize that multiple factors play a part in the changes to the economy over the past 40 or 50 years.  But numbers like these, particularly in the area of manufacturing, demonstrate the importance of increased access to higher education and training.   The emphasis on technical skills provided by OCTC certainly have been a major driver of our regional competitiveness over the past several decades. 

Owensboro College Celebrates New President and 25th Anniversary

The Owensboro Community and Technical College celebrated the inauguration of Dr. Jim Klauber as the institution's fifth president as part of the 25th anniversary celebration of the college's founding in Owensboro.

In reflection on this occasion, the founding of OCTC is easily the most important event in the last 25 in the Greater Owensbro region. It has raised education levels and contributed to the region's ability to be competitive in the face of significant changes impacting the global economy. Nearly all of these changes, from the growth of jobs in industries like health care and biotech to retention of jobs in declining industries in manufacturing, have been rooted in human capital.

OCTC has played a pivotal role in preparing Owensboro's human capital to navigate the changing economy with job training in every sector of the regional economy.

Since the consolidation of the community and technical colleges in 1997, enrollments at OCTC have increased significantly, to over 6,000 students. There is no better tool to improve the workforce and economic development of a community than a strong community college—and we have one of the best.

From the enrollment of high school students through the Discover College program to the customized business and industry training delivered to area businesses, OCTC demonstrates why a strong comprehensive community college and programs such as the Advanced Technology Center are key to the future progress and prosperity of Owensboro.

The community college movement has been called the Ellis Island of our time. It provides the same hope for the future that the shores of our great country provided immigrants of a century ago.

Like so many things that happen in Owensboro, the citizens of the community were slow to embrace this movement and many even fought it.  To those leaders who fought to create this beacon of hope and those who continue their legacy today, I say thank you for showing us the power of transforming a community.

Joe Berry Appointed to EDC Downtown Development Position

The Greater Owensboro Economic Development Corporation announces the appointment of Joe Berry as Project Manager for Downtown Development.  Berry’s role will be to coordinate all private investment efforts specific to downtown Owensboro.

Berry has worked as an economic and community development planner for the past two years at the Green River Area Development District.  At GRADD he managed small business projects through the $2.5 million revolving loan fund.  He also administered funding to the region through Community Development Block Grants and from the U.S. Department of Commerce, Economic Development Administration. 

“Joe Berry represents the profile of the kind of young professional we are attracting to this region with our efforts to revitalize downtown,” said Nick Brake, EDC President/CEO.  “His enthusiasm and experience in working closely with economic development projects will take our private investment efforts to the next level.”

Mr. Berry was born and raised in Owensboro, a graduate of Owensboro High School.  He is currently a downtown resident. 

He holds a Master of Public Administration from Western Kentucky University and an undergraduate degree from Transylvania University.  He is certified in Economic Development Finance and is a graduate of the Kentucky Institute for Economic Development.  His employment will begin on April 18.

“It is certainly an exciting time for downtown and economic development overall in our community,” said Berry.  “I am delighted to join the team of professionals at the Greater Owensboro Economic Development Corporation and I look forward to working with the next phase of our master plan in attracting private investment to match and exceed the commitment of public funds downtown.”

Mixed Use Development Planned for Bates Building in Downtown Owensboro

Terry Woodward said last week he has purchased the three-story Bates Building at 101 W. Second St., the building next to it and a large vacant lot on Veterans Boulevard for $1.2 million.

The owner of WaxWorks/VideoWorks plans to build a "mixed-use, retail, high-rise condominium" on the lot, after the Bates Building has been restored.

"That is my plan," Woodward said. "Obviously, it's very preliminary, but that's what I want to do."

The purchase includes the building at 105 W. Second St., occupied by Patti's ReSale store (the former Woolworth's). The open lot behind those two buildings overlooks Veterans Boulevard and Smothers Park. The large lot sits between the city's parking garage and the American Legion.

Hollison Technologies, Centre will be featured on Fox Business

The Fox Business Channel is filming a segment featuring Hollison Technologies at Owensboro's Centre for Business and Research.

Hollison, a tenant at the 37,000 square foot business accelerator, is a provider of products and services to the food industry to detect and track contaminants in the food supply chain.

Hollison provides unique products and services for food protection and the detection of contaminants in the food supply chain including, but not limited to, farms, bulk storage facilities, commodity transportation, food processing, food distribution and point of consumption. The company offers patented technology for the protection of the entire food supply chain with the detection and identification of chemical, biological and radiological contamination in food commodities, processed food and beverages. Hollison has developed a proprietary secure web-based food tracking capability for use with its breakthrough sampling and detection technologies to offer complete chain-of-custody information complete with available contamination test data.