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The year 2025 marks the 120th anniversary of Century Next Bank. Each month, members of our team will share how banking has changed across our history. From events such as wars, Y2K, 9-11 and the crumble of the Savings & Loan industry, our team will share how history has shaped banks both nationally and locally. Stay tuned and enjoy the journey through banking history!
image: Debbie Barnes, Relationship Banker at Farmerville Hwy. Branch
Last week, we sat down with Debbie Barnes, Relationship Banker, who is an all-around wealth of knowledge about everything banking. Debbie has worked for CNext 39 years and is a “customer-service-dynamo.” She knows her customers by name and has the skills to match her high level of service. During the time of the Savings and Loan crisis, Debbie witnessed what our bank experienced as Ruston Building and Loan, so we asked what that time was like.
[This is a very brief summary of the S&L debacle. Throughout the late 1980’s and early 1990’s the US economy experienced a volatile Savings and Loan crisis which fueled a collapse of many savings and loan financial institutions. “The crisis caused a failure of nearly a third of the 3,000+ savings and loan associations in the United States.”[1] Slow economic growth and fluctuating rates began the hurdle, while corruption, fraud, and poor lending practices put “desperate banks” on target to be risk-heavy without the capital to support it.]
Century Next Bank began as Ruston Building & Loan Association and navigated through the Savings and Loan crisis better than most. We were fortunate. Our bank leadership and board of directors were filled with persons of integrity, market understanding, and the willingness to say no when a loan or setting was not beneficial to the customer or the bank. For this reason, we were one of just a few S&L’s that remained strong in Louisiana when many were failing. Debbie shared with us her experience when a local Savings and Loan abruptly closed their doors and left customers seeking a bank they could trust.
1. We have heard stories about lines to the door and out the door when Pelican Homestead and Savings closed. Can you tell me what those first days were like?
It was extremely busy for us. Before we opened, during the first week to a month, once customers had received their FDIC checks they were lining up to come inside to open accounts. They needed a place to put their money.
All of the lobby chairs were full and people were standing and waiting to be served. Keep in mind, this is before ATMs and Debit Cards were widespread. When you wanted cash, you came to the bank to withdraw funds or cash a check. There was no online banking to transfer funds between accounts, and in this case their primary bank was closed, so a new one had to be found.
2. What kind of volume are we talking about? How many customers do you think you served in one day?
I cannot give an exact number of people, but I can tell you that on the first day that we opened those accounts, we had a deposit of around $1 million for new accounts that day. FDIC coverage was limited to $100,000, unlike today at $250,000.
3. What made our bank different? Why were these customers coming to us for new accounts?
As stated previously, we had a stellar leadership team including our board of directors who had a solid reputation for sound banking. They were well known in our community. They were trusted and made conservative decisions. People knew this was the right place for their financial needs.
And it still is! Century Next Bank has been serving our community since 1905, and we are proud to have employees like Debbie Barnes in our CNext family. Thank you, Debbie, for your time and perspective.
[1] Kenton, Will. “Savings and Loan Crisis (S&L): What Happened and Aftermath.” July, 21, 2024. Investopedia.com. Kelly, Robert C., Reviewer.
