By Michael Howell
As of January 1, 2012, two local community banks, Ravalli County Bank and Bitterroot Valley Bank, have merged their operations. Although retaining their separate names and offices, they are now operating one bank under the name The Family of Banks, sharing both assets and a unified computer system. Charles Shonkwiler will continue to serve as President of Ravalli County Bank and Rich Zins will continue to serve as President and CEO of Bitterroot Valley Bank.
Both banks will continue to be locally owned and operated. Technically, all shareholder interest in Ravalli County Bank was transferred to Bitterroot Holding Company. Bitterroot Holding Company, which holds the shares in Bitterroot Valley Bank, founded in 1982, lists assets at $200 million. Ravalli County Bank, established in 1895, lists current assets at $179 million.
Shonkwiler said now that he’s turned 58 with children who have chosen different careers, it made sense for him to start thinking about the future of the bank and the best way into that future.
“With my family’s desire to see the Ravalli County Bank continue operating independently, it made sense to join with a like-minded community bank and pool our resources,” said Shonkwiler. By sharing a computer system and other costs both banks can save money. He said they can reduce costs by sharing in FDIC insurance costs and by having one board instead of two, among other things.
“They call it economy of scale,” said Zins. He said that from his bank’s perspective it was a win/win situation.
“We have very similar philosophies,” said Zins. He said the banks have always had a strong friendship based on mutual respect. He related a story about how the Bitterroot Valley Bank was founded. He said when Alan Bradley decided to start the bank in Lolo, he went to visit with bankers in the Bitterroot Valley to introduce himself. But he did not get a very good reception, except from Link Shonkwiler, Charles’ dad.
They struck up a great friendship. Link said they could help each other out. And they did. He related how Alan drove up to Ravalli County Bank with a pick-up truck and said he wanted to buy whatever old equipment Shonkwiler had to sell. Shonkwiler filled up the truck but then said he could not charge a friend.
“Our banks have been friends for a long time,” said Zins. “When it came time to look at growing and gaining some economy of scale it was a natural match.”
The banks will soon be doing business under The Family of Banks logo, but plans are being devised to allow each bank to retain its own identity. They both agree that melding the two computer systems has been the most challenging aspect of the merger.
“Everybody will keep their job and customers will not see any difference except perhaps the look of their statement,” said Zins. It will have The Family of Banks logo on it.
Both organizations got 100 percent support from their shareholders for the merger and received regulatory approval.
Zins said there are no plans for selling the new bank that has been formed. “This bank, with this philosophy, will be here for years to come,” he said. “We are preparing the next generation of bankers to take over and continue this operation.”
Both men were grateful to the staff that has taken on the daunting task of merging the computer systems: Kate Templeman, Senior Vice-President of Operations at Bitterroot Valley Bank and Jean Isherwood, Susan Senn, Joanne Roth and Nick Hallet of Ravalli County Bank.