Piedmont Federal Bank’s mutual model puts people first

The founders of Piedmont Federal Bank made a decision before they opened the doors in 1903 to put people first, and the bank has stayed true to that business model for more than 120 years.

Headquartered in Winston-Salem and originally named the Piedmont Building & Loan Association, Piedmont Federal Bank has embraced the mission of helping individuals and families achieve homeownership and build financial security since the first day of business.

That mission continues today through a structure that has become increasingly unique in modern banking: mutual ownership. It is owned not by stockholders, but by its depositors. That distinction allows the bank to focus on long-term stability, community investment and community relationships over the pressures of profit.

“When you put your trust in a mutual bank like Piedmont Federal Bank, you get all of the services and products you need and much more. You get a promise to make a real impact in your community,” said Piedmont Federal Bank president David Barksdale. “It’s what drives mutuals. It’s why we exist — to serve the best interest of our communities.”

Piedmont Federal Bank became only the seventh financial institution in the country to adopt a federal savings and loan charter. That move, in 1935, reinforced its commitment to the mutual banking model.

The institution has stayed true to that decision. While many community banks have consolidated or disappeared over the past several decades, Piedmont Federal Bank has continued to grow while maintaining a relationship-based approach. The bank highlights local decision-making and personalized service as key advantages for both personal and business clients.

Through volunteerism, financial wellness initiatives and support for local nonprofits, the bank works to strengthen the communities where its clients live and work.

According to the bank, the absence of shareholder pressure allows management to take a longer-term perspective when making decisions. That includes maintaining a strong focus on risk management, financial stability and sustainable growth.

“This approach,” said Barksdale, “has helped Piedmont Federal Bank navigate changing economic conditions while remaining a steady presence in the region.”

Piedmont Federal Bank today operates under the purpose statement “We Open Doors for You,” reflecting its commitment to helping clients purchase homes, build savings, finance businesses and pursue financial goals.

Piedmont Federal Bank continues to demonstrate that a locally focused, mutually owned institution remains relevant in a rapidly evolving financial landscape. For clients seeking a bank rooted in and committed to the Piedmont community and long-term relationships, Piedmont Federal Bank’s history suggests that staying local remains a viable path forward.

Visit piedmontfederal.bank for more information.

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