Phil Baldwin
Phil Baldwin is the president and CEO of Citizens Bank of Batesville.
Before joining Citizens Bank, Baldwin was president and CEO of CredAbility, a nonprofit credit counseling agency based in Atlanta. He previously led Southern Bancorp of Arkadelphia, the nation’s largest rural development bank.
While at Southern Bancorp, Baldwin created a model of community development that was honored with the Council on Foundations’ most prestigious award, the Critical Impact Award. He also was named one of the top five social entrepreneurs in the U.S. by Bloomberg Business Week magazine.
Baldwin is a founding board member of United Way Worldwide, chairman of the Winthrop Rockefeller Foundation and a member of the boards of Lyon College, Aeris and the Batesville Area Chamber of Commerce and of the Advisory Board for White River Medical Center.
Tell us about your Christmas Loan Program and other efforts to serve the underbanked. How did your program work and will you be doing it again?
I am probably the only bank president in Arkansas who has also served as president of a nonprofit organization. This creates a unique perspective and a strong association with the daily struggles of middle- and low-income families.
These families know they are in trouble, with many living three paychecks from poverty, meaning that if they lose their job they have no savings, retirement or home equity to sustain family life. The Wall Street Journal reported last year that 50 percent of Americans are now expected to die with a net worth of less than $10,000. The difference people feel today is the loss of any cushion in life.
Our Christmas loan program offered low-interest loans of up to $600 to middle- and low-income families. The response was overwhelming. The Citizens Bank of Batesville was organized with a focus on serving the needs of working-class families. Yes, we will offer this program again, and we plan to use what we learn to create a suite of products and services designed specifically for families in need in Arkansas and possibly across the United States.
Mistakes are said to deliver some of the most meaningful lessons. What was your most important business mistake?
Failed perspective. I have actually repeated this mistake several times. It is difficult to see the world with the eyes of others. Business success requires we overcome this challenge.
Some bankers blame government regulations for the growing number of small banks being sold. Have heightened regulatory requirements become too stringent?
Bank regulations have increased substantially in recent years. These regulations are reactive to problems experienced by large national banks and New York-based investment banks. Unfortunately, community banks in Arkansas have been swept into a complex regulatory system designed for someone else. In many cases we are no longer allowed to do what we know is right for our customers. I don’t blame the decrease in community banks entirely on regulations. Technology and demographics play a much more significant role.
What is the biggest challenge facing Arkansas bankers?
Looking around the corner. Envisioning opportunities. Customer service innovation. These collectively are our biggest challenges and our biggest opportunities.
What are the most significant market opportunities confronting your bank?
The potential to create a statewide banking franchise that incorporates nationally innovative financial services.
What directed your career path into banking?
I enjoy working with people, helping them realize their dreams. Bankers get to do this every day.
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