Community, regional banks cater to niche markets
Community and regional banks have their own niche markets and continue to maintain profitability by reaching out to local borrowers. One commentator stood up for the value of the smaller banks, noting that they bring extra life to a community while still maintaining their profitability. The Huffington Post explains:
Every big bank began life as a community bank. Even Bank of America, which was founded under the name of Bank of Italy, offered immigrants a banking experience that was denied to them by the white-shoe banking establishment of San Francisco. Even though the bank founded by AP Giannini was gobbled up long ago, the brand "Bank of America" continues today as a monument to acquisitions and empire building, but the name that built the brand was done one customer at a time.