MAQUOKETA, Iowa — The planned Jan. 27 closure of the remaining U.S. Bank branch in Maquoketa is not unprecedented. Of the banking giant’s more than 2,000 branches, several in eastern Iowa towns have closed in recent years.

The shuttering of a small-town bank branch is a gradual process.

“By the time these nationwide banks close in small communities, they already downsized with reduced staff and reduced lending,” said Al Tubbs, chairman of Ohnward Bancshares Inc., which owns Maquoketa State Bank, First Central State Bank and Ohnward Bank & Trust. “There’s consolidation going on in the banking industry (overall).”

That consolidation is thanks to a shift in how people bank and has caused financial institutions — both locally owned and national establishments — to rethink how they operate.

Tubbs, who has been involved in banking leadership since 1972 and served as president of the American Bankers Association in 1991 — said banks under the Ohnward Bancshares umbrella have had to evolve to keep up with changing consumer trends. These trends were cited by a U.S. Bank spokesperson regarding the impending Maquoketa branch closure.

“Clients’ banking preferences and behaviors are changing, including a rapid migration toward digital and mobile banking platforms and a desire for greater simplicity,” reads a statement from Caitlin Hurley, U.S. Bank assistant vice president and business line communications manager. “As we evolve along with our clients, we are reevaluating our physical footprint, and in some instances, consolidating branch locations in select markets.”

The closure will remove U.S. Bank from Maquoketa altogether, as it previously closed its downtown branch in 2018.

Brick-and-mortar branches, local bankers still valued

Tubbs said Ohnward’s banks have expanded their digital offerings but that brick-and-mortar, face-to-face banking is still valuable to his community.

“Relationship banking is not dead,” he said. “That’s what our banks rely on — a good relationship with clients but also with the community.”

Brennen Clark, president and CEO of Peoples State Bank, which is based in Prairie du Chien, Wis., and has locations across northeast Iowa and southwest Wisconsin, feels similarly to Tubbs. He said Peoples State Bank clients value doing business with bankers from their own community when, for example, signing a mortgage.

“(Our clients) value having someone they know walking them through these major life decisions,” Clark said.

However, Peoples State Bank is not immune to the challenges faced by banks of all sizes, Clark said. Three of its branches, including two in Grant County, Wis. — in Glen Haven and Bagley — closed in August 2023.

Clark said many customers in those small towns, especially younger generations, have either shifted to using online banking services with People’s State Bank or traveling to a different branch.

“We saw transactions really fall off at those locations,” Clark said.

Rural banks support communities

Locally owned and locally involved financial institutions can have a positive impact on small towns and rural areas, as they have a vested interest in operating in a thriving community.

Tubbs said Ohnward Bancshares has had a large philanthropic impact on Maquoketa and other small eastern Iowa towns — Maquoketa’s Ohnward Fine Arts Center bears its name. The company also supports Maquoketa Art Experience, Maquoketa Area Family YMCA and the Central DeWitt (Iowa) Performing Arts Center.

“We see that as our of role — being supportive of things that improve the quality of life in the communities we serve,” Tubbs said.

Ron Brisbois, executive director of Grant County Economic Development Corp., said many local banks in his county — including the multiple Peoples State Bank branches — are an asset to his efforts.

“(Local banks) are always very instrumental in economic development in my county,” he said.

Brisbois said several banks pooled money to fund a regional revolving loan program, which offers low-interest loans for equipment purchases, land and building acquisitions and working capital to assist businesses planning to locate to southwest Wisconsin.

In general, Brisbois said, local banks have been generous in the Grant County community.

“I know that they get heavily called upon to serve our area charitable organizations and they always do an amazing job,” he said. “They’ve always been very supportive.”

Clark said Peoples State Bank employees are encouraged to serve on local boards and participate in community events, such as parades. He said many of the bank’s philanthropic contributions are first suggested by employees.

“A lot of our employees are bringing (forward) these opportunities to donate money,” Clark said. “It becomes pretty easy for us to make these decisions.”