Human-Centered Banking for Stronger Local Economic Resilience

Stephanie McClendon, Chief of Community Banking, First Federal Bank

Stephanie McClendon, Chief of Community Banking, First Federal Bank

Stephanie McClendon is the Chief of Community Banking at First Federal Bank. With 26 years in the industry, she champions relationship-first banking, inclusive access and local empowerment. She combines digital innovation with personal service to support individuals, families and small businesses across diverse communities.

Rooted in Relationships: A Leadership Journey

With over 26 years in banking, my leadership journey has been shaped by moments that reinforced the power of community. Early in my career, I worked directly with small business owners and families during an economic downturn. That experience taught me that banking should prioritize relationships, not just transactions.

As I advanced into leadership roles, I committed to leading with transparency, empathy and accountability—core values I believe are essential in community banking. A pivotal choice in my path was to remain rooted in local banking rather than pursue corporate or national roles.

I’ve always believed in the strength of local decisionmaking and community banks’ role in promoting economic resilience and inclusion. At First Federal Bank, I’ve championed initiatives expanding financial education, supporting underserved populations and empowering our team to be active community stewards. My leadership remains collaborative and missiondriven, with the community at the heart of every decision.

Balancing Innovation with the Human Touch

Throughout my career, I’ve believed strongly in offering customers options—never forcing them into digital channels but instead providing Technology as a convenience and complement to the personal relationships that define community banking. Our goal has always been to meet customers where they are, whether in the branch, over the phone, or online.

At First Federal Bank, we’ve successfully introduced new technologies such as mobile banking, online account opening and digital lending platforms. But we’ve done it thoughtfully—by ensuring these tools enhance, rather than replace, the personal touch. One key to this has been training our frontline staff as tellers, bankers, trusted advisors and relationship officers. They help guide customers through their options, provide hands-on support with new tools and ensure that every digital or in-person interaction feels personal and supportive.

Technology should never be a barrier. It should be a convenience that empowers our customers to bank how and when they want. By staying focused on relationships first and technology second, we’ve modernized our service model without losing the trust and familiarity that make community banking special.

Navigating Compliance with Compassion

One of the most pressing challenges in community banking today is the growing complexity of regulatory requirements. The volume of new regulations and policies continues to increase. While they are critical for protecting the financial system and our customers, they can sometimes feel burdensome—especially in small, rural markets where customers are used to a more personal, familiar experience.

“Technology should never be a barrier. It should be a convenience that empowers our customers to bank how they want, when they want”

In these communities, our customers often know us personally and may not fully understand the “why” behind specific requirements. My approach has been to shield the customer from that frustration as much as possible. We train our staff thoroughly on compliance to manage those requirements behind the scenes while maintaining a friendly, solution-oriented approach at the front line.

We also encourage open, honest conversations with customers—helping them understand that these policies are in place for their protection, whether identity verification, fraud prevention, or data security. It’s about balancing strict adherence to regulation with empathy and clarity, which builds trust. By owning the burden internally and equipping our teams to be both compliant and compassionate, we’ve preserved the strong community relationships that define who we are.

Local Insights, Tailored Strategies

One of the most important things I’ve learned as a community banker is that no two communities are exactly alike. Each branch operates as its own “community bank,” with its unique customer mix, economic drivers and financial needs. As leaders, we must embrace that reality and avoid a one-size-fits-all approach to strategy.

At First Federal Bank, we consciously try to stay closely connected to the local communities we serve. That starts with empowering our branch teams—they know their customers best and are encouraged to bring local insights, challenges and opportunities forward. We also analyze demographic and economic data across our markets to tailor products, outreach and services that fit each area’s unique needs.

Whether offering specialized small business support in one community or promoting financial literacy and first-time homebuyer resources in another, our strategy is always rooted in listening first. By staying flexible, community-specific and customer-focused, we ensure that our services grow with the people and businesses we’re here to support.

Cultivating Purpose-Driven Leadership in Community Banking

I believe the most critical foundation for anyone aspiring to lead in community banking is a genuine commitment to people—your customers, your team and your community. Community banking isn’t just about managing transactions; it’s about building trust and relationships that stand the test of time.

Key skills include strong communication, emotional intelligence and the ability to listen with empathy. You must understand what matters to people—whether a small business owner is trying to grow or a family is buying their first home—and then be ready to roll up your sleeves and help.

From a values standpoint, integrity, accountability and adaptability are essential. The industry constantly evolves and successful leaders must be open to change while staying grounded in their purpose. It’s also crucial to never lose sight of the responsibility to uphold the safety and soundness of the financial system, even when those duties aren’t always visible to the customer.

Lastly, I would tell any future leader to stay humble, stay local and never underestimate the power of showing up for your community. That’s what creates a lasting impact—and it’s what makes community banking so special.

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