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The Story
One of the South’s fastest-growing financial institutions did not originate in a large, metropolitan area or grow with the usual bank business plan. Community Bancshares of Mississippi, Inc., started more than 100 years ago in a small timber community in east central Mississippi and has grown in recent years by employing a unique approach to one of America’s most routine industries.

In just over 10 years, with few acquisitions, Community Bancshares grew from $200 million in assets and a couple of offices to more than $2.2 billion in assets, 36 offices and over 650 employees in four states. Over the last five years, while the corporate banking industry simultaneously morphed into insurance agents, stock brokers, and real estate agents, Community Bank has focused on simple deposit and loan services and proved that plain “vanilla” banking can be very sweet to customers, staff, and stockholders alike.

The Model
Community Bank’s window of opportunity came in the 1980s when the organization was faced with three distinct challenges that many banks face even today: how to create big bank services and economies of scale while maintaining the advantages of being a true, local community bank; how to find an innovative way to continue to push improvement in customer service; and how to compete with the aggressive brick-and-mortar expansion of competitor banks. Community Bank’s ultimate answers to those challenges helped fuel tremendous growth that today spreads the organization’s reach across Mississippi and into other Southern states.

A Family of Local Banks
First, to create big bank synergies, Community Bank decided to establish separately chartered banks that operate independently but share services within a common holding company. Unlike most banks which have a central office that dictates policy to branches, this structure gave Community Bank the best of both worlds — pooled resources that can afford expensive technologies and services and local decision makers empowered to act with the community in mind.

This structure not only helps Community Bank offer true community banking, but allows for better trained management as well. Many banks have their quality people serving as branch managers or division directors under the direction of a central office where these people gain little true executive experience in running a bank independently. At Community Bank, CEOs operate their banks independently as true executives —overseeing their bank’s loan portfolio, managing deposits, directing different bank functions, providing leadership in their community, making strategic competitive decisions in their marketplace, working with their own board of directors, and negotiating shared services with their sister banks. This creates a highly effective training ground for leaders.

In an effort to allow all of the bank CEOs to participate in the decision making process for the system and as a way to foster creativity, a combined management meeting is held once a month. At this meeting, holding company management and each bank CEO are represented. Policy is debated, decided, and delegated at these meetings, and CEOs are given the opportunity to not only represent their individual bank interests, but also to shape the direction of the entire banking system.

Owners Work Harder
Second, in an attempt to gain a unique edge in the never-ending battle to outperform the competition in the area of customer service, Community Bank took an extraordinary step. Unlike some banks whose retirement programs require an employee contribution before providing a match, Community Bancshares established an Employee Stock Ownership Plan (ESOP). Under this plan, all staff members are fully funded 10% of their total compensation each year which is invested in the bank’s stock. The move not only provides a comfortable nest egg for Community Bank staffers, but also gives them a vested interest in bank performance — particularly in how their own customer service delivery could enhance the bank’s bottom line and, therefore, their own bottom line.

Build It and They Will Come
Lastly, when faced with bank competition whose strategy was to build an expensive branch on every street corner and find employees to fill it, Community Bank’s response was simple — do the opposite. Community Bank answered by building community headquarters in a few strategic locations, providing customers a superior staff, and taking the money saved and translating it into better rates for customers. The strategy has helped Community Bank surpass its competitors in efficiency by routinely carrying more assets per office than other banks in the South.

The Secret
Community Bank has used its model to build an impressive resumé. The bank has never had a losing month, a losing quarter or a losing year. The stock value has done well every year–doubling every five years for the last two decades. The story of the bank’s success has grown as fast as the list of those wanting to purchase shares of the bank’s privately-held stock.

Ask Thomas W. Colbert, Community Bancshares Chairman and author of its growth model, what is the secret of the bank’s success and the answer will be quick and simple: “people.”

The bank takes extraordinary steps to identify and recruit topflight bank talent. Once in the organization, in addition to being owners in the bank, staff members are allowed to earn higher than normal levels of authority and independence in bank decision making. And if that weren’t enough, the bank goes the extra mile to keep their staff happy at work, including the ESOP, bonuses, benefits, gifts, clothing allowances, and other incentives. Community Bank even pays for undergraduate courses for staff members who want to pursue degrees — even if they are not finance-related.

The underlying theory in this business model is that good people in a happy workplace are the most effective instrument a bank can have in generating income. This philosophy is one of the reasons Community Bank was named one of the “Best Places to Work” by a leading business publication. People are never identified as employees at Community Bank. The thinking goes that “employees” are merely “managed,” but “people” are “nurtured.”

The Community
Community Bank also prides itself on creating community leaders in the areas it serves. Bank staff is strongly encouraged to be involved in local activities and given the freedom to do so. Community Banks participate in their communities in ways no other chain banks do. Staff members coach Little League teams, serve as volunteer firemen, work with local chambers of commerce, sing in church choirs, give to local charities, host senior activities, and preside over civic clubs.

Community Bank believes if you are going to invest in having the best people you should show them off in the community. Community Bank is proud of its people and believes their involvement in their community is not just good for business, it’s simply the right thing to do.

The Values
Community Bank takes great pride in the values embraced by its bank family. Community Bank leaders believe simple values — all too often ignored by today’s society — can lead to a better quality of life for their staff and customers. Values like fairness, integrity, honesty, respect, humility, self-sacrifice and simple kindness are all hallmarks of the type of organization Community Bank strives to build everyday. From rejecting popular bank products thought to be unfair to customers to fostering a respectful and edifying work environment for staff members, Community Bank puts its values into action every day.

The Future
Community Bank recently celebrated its 100th birthday. All of that history might explain why so much of the organization’s future plans center around its past. The management team at Community Bank believes the strategy that helped the bank not only survive but grow over the last 100 years is a good model to follow in the future. That model includes recruiting topflight bank talent, staying in stride with emerging financial technologies, keeping a strong focus on local customer service delivery, maintaining credit quality throughout the system, and pursuing a sound expansion strategy into emerging growth markets across the South.

There are plenty of success stories in American business and in the banking industry in particular, but it is hard to find a success story with more fascinating chapters than the ones written by Community Bank.

The Team
Community Bank’s management team is comprised of a solid group of executives with diverse backgrounds representing every aspect of the banking industry and every era of banking. Community Bank’s succession plan has two levels. Thomas Colbert, Freddie Bagley, and Chuck Nicholson hold the senior-most positions within the holding company. Underneath this holding company level are four CEOs who lead eight banks and an operations center. These men and women form the pool from which successive leaders will be chosen.

THOMAS W. COLBERT
	Chairman of the Board, Community Bancshares, Inc. Native: Trebloc, MS Education: University of MS, Banking and Finance; Graduate School of Banking of the South, Lousiana State University Joined the Bank: 1968
FREDDIE J. BAGLEY
	President and CEO, Community Bancshares, Inc. Native: Forest, MS Education: Mississippi College, Mathematics; University of MS School of Banking; Louisiana State University Graduate School of Banking Joined the Bank: 1976
CHARLES W. NICHOLSON, JR.
	Vice Chairman and COO, Community Bancshares, Inc. Native: Pascagoula, MS Education: University of MS, General Business; Graduate School of Banking of the South, Louisiana State University Joined the Bank: 1998
DARRELL BROWN
	Vice Chairman of Administration, Community Bancshares, Inc. Native: Forest, MS Education: University of MS, Computer Science; Graduate School of Banking of the South, Louisiana State University Joined the Bank: 1985
WYMAN JONES
	Vice Chairman and Chief Credit Officer, Community Bancshares, Inc., CEO, Community Bank North Mississippi Native: Waynesboro, MS Education: Mississippi State University, Banking and Finance; Graduate School of Banking of the South, Lousiana State University Joined the Bank: 1992
TIMOTHY P. GRAY
	Vice Chairman and Chief Financial Officer, Community Bancshares of Mississippi, Inc. Native: Forest, MS Education: BSBA in Accounting, Mississippi College; Mississippi School of Banking; Certified Public Accountant, State of Mississippi Joined the Bank: 1995
D'AUBY SCHIEL
	Chairman of the Board, Community Bank, Coast Native: Mobile, Alabama Joined the Bank: 1994
BOBBY KNOX
	CEO, Community Bank, Ellisville Native: Houston, MS Education: University of MS, School of Banking, Banking and Finance; Graduate School of Banking of the South, Louisiana State University Joined the Bank: 1987
DAVID HUGHES
	CEO, Community Bank, Coast Native: Biloxi, MS Education: University of Southern Mississippi, Business Administration; University of MS School of Banking; University of Oklahoma School of Banking Joined the Bank: 2002
GREGORY A. MOORE
	President and CEO, Community Bank of Mississippi Native: Jackson, MS Education: Mississippi State University, Business Administration, Banking and Finance Joined the Bank: 2007
JEFF KING
	Vice Chairman, Community Bank, North Mississippi Native: Benton, MS Education: Mississippi State University, Banking and Finance/ General Business Joined the Bank: 1998
OLIVER LATIL IV
	President and CEO, Community Bank, National Association, Mobile, AL Native: Ocean Springs, MS Education: University of MS, Management; University of MS School of Banking Joined the Bank: 1997
R. JONATHAN WHITE
	Chief Information Officer, Community Bancshares, Inc; President Community Operations, Inc. Native: Tupelo MS Education: Mississippi State University, School of Architecture Joined the Bank: 2006

The History
1968
Thomas W. Colbert is named president and CEO, becoming Mississippi’s youngest bank CEO at the age of 28.

1977
Farmers and Merchants Corporation is incorporated as Mississippi’s first-ever bank
holding company.

1983
Thomas W. Colbert becomes chairman of the holding company.

1991
Freddie J. Bagley is named president of the holding company.

1994
The holding company changes its name to Community Bancshares of Mississippi, Inc.

1995
Farmers and Merchants changes name to Community Bank of Mississippi.
» Community Bancshares acquires Merchants and Manufacturers Bank of Ellisville, Mississippi.
» Community Bancshares acquires Peoples Bank of Mississippi based in Indianola.

1996
Community Bancshares forms Community Bank, Coast in Biloxi, Mississippi.

1997
Community Bancshares forms Community Operations, Inc., a whollyowned subsidiary of the holding company that serves the operations needs of its member banks.

1998
Community Bancshares forms Community Bank, DeSoto County in Southaven, Mississippi.

1999
Community Bancshares is named one of Mississippi’s fastest-growing private companies by the Mississippi Business Journal’s annual survey.
» Community Bancshares forms Community Bank, Meridian in Meridian, Mississippi.

2000
Community Bancshares surpasses the $1 billion in assets milestone.

2003
Community Bancshares acquires First National Bank of Lucedale in Lucedale, Mississippi.

2004
Community Bancshares acquires Security Bank in Amory, Mississippi.

2005
Thomas W. Colbert is inducted into the Mississippi Business Hall of Fame.
» Chuck Nicholson named chief operating officer of Community Bancshares.
» By combining Community Bank, DeSoto County and Community Bank, Indianola, Community Bancshares moves into Tennessee by forming Community Bank NA (National Association) and opening an office in Memphis.

2006
Community Bank is named one of the “Best Places to Work” by the Mississippi
Business Journal.
» Community Bancshares joins with local investors to open a bank in Destin, Florida.
» Community Bancshares surpasses the $2 billion in assets milestone.

2007
Community Bank is named one of the “Best Places to Work” by the Mississippi Business Journal for the second year in a row.
» Community Bank, N.A. in Indianola and Community Bank in Amory join forces to create Community Bank, North Mississippi
» Community Bank is named one of the “Fast 40” by the Mississippi Business Journal for being one of the top privately owned businesses in Mississippi.
» Community Bank, National Association, headquartered in Lucedale, joins with Community Bank, Coast, headquartered in Biloxi.

2008
Community Bank is named one of the “Best Places to Work” by the Mississippi Business Journal for the third year in a row.
» Community Bank, National Association, opens office located in Mobile, Alabama.
» Community Bank is honored with the Better Business Bureau Integrity Award.
» Community Bancshares opens stateof- the-art operations center in Brandon.

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» The Values	» The Future	» The Team	» The History