7/22/2005 - Shelby growth fuels huge leap for family bank
Birmingham Business Journal - July 22, 2005 by Tiffany Ray Staff
As Shelby County continues its rapid pattern of growth, so, too, grows Central State Bank, a family-owned affair that has been a Calera fixture for nearly 90 years.
Founded in 1916 by a previous owner, Central State Bank hired Roy Downs in 1945 as cashier. Two years later he was made president. Soon after that he bought a controlling interest in the bank, and it has remained in his family every since.
Downs' son-in-law, Bill Schroeder, joined the bank in 1968 and, at age 29, took over leadership of the bank following Downs' death in 1971. He remains the bank's chairman, president and CEO.
Under Schroeder's leadership, Central State's deposits have grown from about $8 million in 1971 to about $132 million. After years of steady progress, the bank's business, which extends beyond Shelby County into adjacent counties, has boomed in the past decade. Shane Schroeder says the bank's deposits have more than tripled since 1992.
Central State Bank is a family affair in which each member plays an active role. Schroeder's wife, Deegee, serves as vice chairman; his two sons, Shane and Mitt, both are senior vice presidents; his daughter, Shanda Watts, is a vice president; and his brother-in-law, David Downs, is an executive vice president.
Mitt Schroeder says the city's growth has largely ignited the growth of the bank.
Branching out
For most of its life, Central State has been run from a single office location. In 1998, the family opened a second branch, also in Calera, near the Shelby County Airport. At that time, its lone neighbor was a filling station, Shane Schroeder says. Now the intersection is peppered with additional development. In 2001, they started Central State Mortgage from an office in Birmingham. Now, a third bank branch is slated to open in October in Pelham, where the family is refurbishing a former SouthTrust branch to service their existing customer base there and expand market share as the growth continues.
Birmingham-based Hallmark Builders Inc. is overseeing the renovation work. Shane Schroeder says the family has been careful to manage its growth, adding infrastructure while maintaining a consistent level of service.
"We could blow this thing up pretty quickly if we wanted to, but I don't know if any of us would sleep at night," he says.
Raised in the bank
Mitt Schroeder says consistency has been the key to Central State's success, pointing out that, of the bank's 52 current employees, six have more than 30 years of service, and 13 have been there a dozen years or more.
"I sat on some of our tellers' laps when I was four and five years old," he says.
And despite the recent growth, he says bank leaders remain accessible to customers. "They know when they pick up the phone that they can talk to one of the family members," he says.
His brother, Shane, agrees: "Customers come in and they see the same faces, and that creates comfort knowing there's not a revolving door."
They also put in time being a part of the community outside the bank, with each family member taking an active role on local boards or with local schools or other groups. For example, Bill Schroeder chairs the City of Calera Zoning Industrial Development Board.
Mitt is also a member of that board. Shane serves on the City of Calera Zoning Board of Adjustments.
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