Circleville ? A hundred years ago, this town had all the trappings of a thriving community a hotel, newspaper, train depot, shops, stores and even a bank.

Most are gone, except for a half dozen businesses and Farmers State Bank. Still operating in the same white corner building where it started in 1900, it’s a bank in a community of 185 without big-bank trappings.

In a nod to slower times, it still hands out calendars and key rings, along with friendly first-name greetings to customers. It even serves homemade candy and hot cider during the Christmas holidays.

But looks can be deceiving. Behind vintage teller cages, Farmers State can do just about everything bigger banks do and sometimes a little more.

“We do every loan. I’ve even done a five-dollar loan when they needed to put flowers on their parents’ grave,” said bank vice president Jim Cole, who works here with one other person.

“You’re not going to make money with a five-dollar loan, but you do it because it’s the right thing to do for the person,” he added.

Community connection

Sometimes, Cole offers favors that aren’t always considered standard banking services. Local grocer Kenneth Wykert uses the bank’s fax machine to send his orders to the wholesaler.

“They told me I could use their machine so I wouldn’t have to buy one,” said Wykert. “They don’t even charge me for it.”

Wykert said he’s been doing business at the bank for almost a half century and never would consider going elsewhere.

“They’ve got all the money I need,” he said.

The bank has $2.8 million in capital and $38 million in assets. Cole notes, however, “Banks don’t keep a lot of cash on hand. Most people use checks and credit cards.”

In some parts of the world, small-town banks have gone the way of the buggy whip. But in Kansas there are at least 334 towns of 500 or fewer residents dotting the landscape.

The State Banking Division says at least 46 state banks have their headquarters in communities of 500 or fewer people. There are a total of 268 state-charted banks in Kansas.

In the late 1800s, towns sprang up throughout Kansas. Banks often held the key to success or failure of these settlements.

“Banks were critical to getting credit development for the communities, especially the farmers. Credit availability was locally determined in the 19th century,” said Kansas University history professor Lloyd Sponholtz.

“The initial recourse for people interested in stimulating the local economy is pooling their money and forming a bank and using that capital as a way of extending credit,” he added.

Over the years, scores of small town banks folded, especially during the Depression. But like with any other business, there were those who survived and thrived, like Farmers State.

Many small Kansas towns consist of little more than a bank, coffee shop and a few stores, which State Banking Commissioner Franklin Nelson doesn’t find unusual

“It wouldn’t strike you as strange to find a restaurant in one of these towns,” he said. “They deserve banking services just like anybody else.”

Loyal customers

While a town may have only a couple hundred people, the bank gets its customers from the surrounding area.

Nelson said that just because a bank is in small town doesn’t mean it’s behind the times.

“There’s not that much difference between a rural bank and an urban bank because they are a financial marketplace, but some are more sophisticated than others,” Nelson said.

Many of these small-town banks have found their niche a loyal following of customers who may span generations.

The community approach has proven successful. Although Farmers State opened a larger branch in Holton a decade ago, Cole estimated a significant percentage of the bank’s loan volume still crosses his desk.

“We know our neighbors. We know the town. You are more involved personally,” Cole said.