Basics and Niche Markets

Chad Martin
Chad Martin

By Chad Martin

Goodfield State Bank, chartered in 1920, has decided that sticking to the basics and focusing on niche markets will provide steady asset growth and a reasonable return to our shareholders. There is no secret sauce to our community bank’s recent strong performance. Simply put, our board of directors has empowered a young, energetic, educated and motivated management team to make things happen.

In fact, our directors don’t just show up for the monthly board meetings and committee meetings; they are very much engaged in the oversight of our bank. They are visionaries and stay involved; at the same time, they don’t meddle in the day-to-day operations of the bank. It’s a fine line, but they are active in trade association events, participate in ongoing education and are active in grassroots governmental lobbying trips, just to name a few.

Goodfield State Bank
Goodfield, Ill.
ROAA in 2015: 2.27 percent
Assets: $105 million
Retail locations: Three
Employees: 26
Founded: 1920

The housing market in central Illinois has remained strong, and Goodfield State Bank has focused on residential real estate. As a $105 million-asset bank, it also services another $125 million in secondary market loans. The non-interest revenue generated through the origination fees, premiums on sale and ongoing servicing continue to bolster our bottom line.

Our bank has a strong partnership with our local Federal Home Loan Bank and has used its Mortgage Partnership Finance program. Members of our lending team are not order takers. They don’t sit back and wait for the business to walk in the bank. They are active in the communities that the bank serves, working closely with the Realtors and home builders. Our lending culture is “let’s make it happen.” In other words, we don’t just settle for the cookie-cutter loans. We realize that many times we have to look outside the box to find the right solution for our customers, and that kind of treatment has led to amazing word-of-mouth advertising and referrals.

An additional area of focus has been in another non-interest income area and that is wealth management and investment services. In 2007, our bank started an investment services division. The timing was incredible. A local broker-dealer, Midwestern Securities Trading Co., was just starting to work closely with community banks in delivering investment services, and a local individual who was largely connected in the central Illinois area had decided to switch careers and get into financial planning. The stars and planets aligned, and Goodfield State Bank Investment Services was born. The assets under management in our investment services division will soon surpass the assets of our bank. And the ongoing revenue stream from this production has been extraordinary.

Finally, managing a strong net interest margin and keeping loan losses to a minimum have been two other major focuses of our bank. We believe if we treat our customers as we would want to be treated and stick to the basics that we will continue to attract and retain quality staff and continue to provide a reasonable return to our shareholders.

Chad Martin ( is president and CEO of Goodfield State Bank. He began working at the bank at age 26, and was appointed president three years later.