At a time when banking is becoming increasingly corporate and impersonal, community banks like Raccoon Valley Bank (RVB) remain a lifeline for Iowa’s families, farmers, and small businesses. Locally owned and deeply invested in the communities they serve, independent banks provide more than financial services—they strengthen local economies, create jobs, and serve as a foundation for growth.

For more than a century, RVB has remained committed to the core principles of community banking. Under the leadership of President & CEO Terry Nielsen and the Garst family, the bank has remained independent, focused on local decision-making, and dedicated to serving the people and businesses that rely on it. Their approach reflects the core strengths of Iowa’s community banking industry and highlights why keeping banking local remains essential.

But RVB’s impact goes far beyond banking. From hunger relief and housing initiatives to education and volunteerism, the bank sees giving back as part of its core mission.

A Culture of Giving: Investing in the Community

For community banks, supporting local causes is not just a responsibility—it’s a commitment to the people and places they serve. At RVB, philanthropy is not an afterthought; it is woven into the fabric of the bank’s mission.

“Community banks don’t just provide loans and accounts,” says Terry Nielsen, President & CEO. “We step up when our communities need us, whether that means supporting local food pantries, helping families access housing, or investing in our schools.”

RVB has long prioritized giving back to its communities in meaningful ways. The bank not only provides financial resources but also encourages its employees to actively engage in volunteer efforts that directly benefit local families and businesses.

Fighting Hunger in Iowa

Hunger relief has been a key area of focus for RVB, particularly through its ongoing support for food pantries and community feeding programs. Each year, the bank donates $10,000 to four local food pantries, ensuring that families in need have access to essential food resources.

In 2024, RVB expanded its commitment by partnering with the Food Bank of Iowa to support the BackPack Program, which provides weekend meals for food-insecure children. Wanting to make an even greater impact, the bank introduced a fundraising challenge between Perry High School, Dallas Center-Grimes High School, and ADM High School, encouraging elementary students to raise funds, with RVB providing a dollar-for-dollar matching donation.

The program raised $6,285 which RVB matched for a total donation of $12,570. The top fundraising school, Perry Elementary, was rewarded with a special celebration featuring RVB’s mascot, an event that reinforced the importance of community support in addressing food insecurity.

“This isn’t just about making a donation,” Nielsen says. “It’s about making sure families in our communities don’t have to worry about where their next meal is coming from.”

Beyond financial contributions, RVB employees have taken an active role in the fight against hunger. Groups of six employees at a time have dedicated full days to packaging food at the Food Bank of Iowa, ensuring meals reach families as quickly as possible. Due to the overwhelming success of this initiative, RVB has committed to ongoing volunteer shifts for the next several months.

Expanding Access to Housing and Family Stability

In addition to hunger relief, RVB has focused its philanthropic efforts on supporting affordable housing and family stability. Through its partnership with Habitat for Humanity, the bank has helped fund home builds for families in need, making homeownership a reality for many who otherwise would not have the opportunity. Employees have also volunteered their time to assist in the construction of these homes, demonstrating a hands-on commitment to improving their communities.

Recognizing that stable housing extends beyond homeownership, RVB has also developed loan programs aimed at helping first-time homebuyers. By providing accessible financing options and financial guidance, the bank ensures that working families have the tools they need to achieve long-term stability.

Another significant area of support has been RVB’s involvement with Ronald McDonald House Charities of Central Iowa, which provides temporary housing for families with children undergoing medical treatment. Nielsen, who serves as President of the Board, has helped oversee initiatives that allow families to stay close to their loved ones during difficult times. Whether through direct financial support or hands-on engagement, RVB remains committed to making sure every family has a safe place to call home.

Investing in Local Schools and Youth Development

RVB’s commitment to education and youth development is evident in its ongoing efforts to support schools, students, and community programs. The bank provides annual scholarships to graduating seniors, ensuring that local students have access to the resources they need to continue their education.

Beyond scholarships, RVB plays an active role in promoting financial literacy, partnering with schools to educate students on responsible money management and long-term financial planning. These programs help young people build a foundation for financial success, preparing them to make informed decisions as they move into adulthood.

RVB also remains deeply involved in local youth activities, sponsoring sports teams, academic programs, and school events. Whether supporting a high school football team, funding a robotics competition, or providing classroom resources, the bank continues to invest in young people, knowing that their success will shape the future of the communities it serves.

“Our investment in schools is an investment in the future,” Nielsen says. “We want to see young people in our communities succeed, whether they choose to go to college, start a business, or join the workforce.”

Challenges Facing Independent Banks

Despite their value, independent banks in Iowa and across the country face increasing challenges. As large institutions continue to grow through mergers and acquisitions, locally owned banks must work harder to compete and differentiate themselves.

Regulations designed for large banks often have unintended consequences for community banks, making it more difficult to offer the same level of service while managing compliance burdens.

This is why community banks continue to advocate for policies that ensure they remain competitive. Through industry organizations, Iowa’s community banks work together to push for fair regulations, share best practices, and ensure that independent banks remain strong.

“We all have a role to play in protecting the future of community banking,” Nielsen says. “It’s about making sure our voice is heard so that independent banks can continue serving the people and businesses that rely on us.”

Balancing Tradition and Innovation

While RVB remains committed to relationship banking, the bank also recognizes the need to evolve to meet modern financial needs. Under Nielsen’s leadership, RVB has invested in enhanced digital banking services to provide greater convenience to customers while maintaining the personal connections that define community banking.

RVB has also embraced AI-driven tools and geofencing technology to improve customer engagement, ensuring that it can continue to compete with larger institutions. Additionally, the bank has expanded its small business and agricultural lending solutions to better serve Iowa’s economy.

“Technology is changing the way customers interact with their banks, but relationships remain the foundation of what we do,” Nielsen says. “We believe technology should enhance service, not replace it.”

This balance between innovation and personal service is what will keep independent banks like RVB strong for the next century.

Why Local Banking Still Matters

The success of Raccoon Valley Bank reinforces a fundamental truth: local banking isn’t just an option—it’s a necessity. By staying locally owned, community-driven, and forward-thinking, RVB continues to provide financial guidance tailored to local needs, support for small businesses and first-time homebuyers, and significant contributions to schools, nonprofits, and community projects.

“We believe in independent banking because we see the impact it makes every day,” Nielsen says. “When banking decisions stay local, everyone benefits.”

Looking Ahead

As Iowa’s banking landscape continues to change, Raccoon Valley Bank remains focused on its mission: delivering high-quality banking services while reinvesting in the communities it serves.

By maintaining its independence, prioritizing community involvement, and embracing smart innovation, RVB continues to prove that local banking is not only relevant but essential.