Several Long Histories

Fabulous Five—State Bank of Scotia’s team (from left): Scott S. O’Neal, Annette Malmstrom, Crystal Wright, Peggy Jensen and Phyllis Hanson.
Fabulous Five—State Bank of Scotia’s team (from left): Scott S. O’Neal, Annette Malmstrom, Crystal Wright, Peggy Jensen and Phyllis Hanson.
State Bank of Scotia
Scotia, Neb.
ROAA in 2015: 1.28 percent
Assets: $37 million
Retail location: One
Employees: Five
Founded: 1934
Website: None at this time

By Scott S. O’Neal

The State Bank of Scotia had its beginnings during the early 1930s in Greeley County, located in the central Nebraska area. In the late 1940s, the Clarence Sixel family had the controlling interest in the shares of the bank and its insurance agency. The bank’s total assets at the end of 1948 were $750,000.

Moving forward 68 years, the Sixel family still has the controlling ownership interest in the bank and the insurance agency; however, the bank’s total assets have grown to more than $37 million. Being located in a smaller rural agricultural community, the State Bank of Scotia has focused on providing its agricultural business customers with the products and support they need to grow and develop their operations, and in assisting them with the ownership transitions as their operations are passed from one generation to the next.

Our community bank’s five employees have a combined work history of 156 years, with four of them having been with the State Bank of Scotia for the majority of their respective banking careers. Two of our executive officers have a combined 77 years of banking experience and comprise the majority of the bank’s loan committee; they also serve as officers for our board of directors. This gives our bank the ability to make the decisions locally and in a fairly fast response time, which is very much appreciated by not only the older generation but also the younger generation that is an important part of our customer base.

While larger institutions have absorbed many smaller community banks, State Bank of Scotia remains an important component of the financial industry. Given the years of experience within not only their respective industry but within their local trade area, our community lenders have the knowledge and expertise of getting to know our customers and their customers’ respective operations, at a level that is seldom achieved by larger institutions with multiple lenders. This relationship-banking component is as important today as it was in prior years, and I believe that it will remain an important component of community banking’s success in the future.


Scott S. O’Neal (soneal@nctc.net) is executive vice president of State Bank of Scotia.