Testimony of Cathy Owen before the House Financial Services Committee's Hearing on "Making Community Banking Great Again"

Chairman Hill, Ranking Member Waters, and members of the Committee, thank you for the opportunity to offer testimony for today's Hearing: "Making Community Banking Great Again." My name is Cathy Owen, and I am Chair, President & CEO of State Holding Company and Executive Chair of Eagle Bank & Trust Company in Little Rock, Arkansas. In 2025, I will celebrate my 51st year in banking and this hearing could not be any timelier given the changes underway in our industry.

My family entered banking in 1967 when my father chartered First State Bank of Sherwood, because he observed a need for a bank in this unbanked community. He wanted me to learn about banking, which I did, and in 1984 I led the formation of State Holding Company as well as the purchase of the Heber Springs State Bank (Chartered 1919), which was scheduled to be closed the next day by regulators. I became the President of the bank and worked with the staff to rebuild a healthy bank. Later, the two banks were merged under what is now Eagle Bank & Trust Company.

Today, Eagle Bank & Trust is a 104 years old, $485 million state bank, with 13 branches in central Arkansas, and Mortgage Loan Offices in Arkansas, Idaho, Louisiana, Mississippi, and Tennessee. Our Mortgage Division has continuously been one of the top three originators in Arkansas. I am very proud of Eagle Bank’s commitment to the communities we serve, which we fulfill by lending to small businesses and underserved communities, as well as providing financial education, stocking food pantries, and paying for school scoreboards.

Banks of all sizes and business models are drivers of healthy growth across our economy. Community banks are a very important part of this ecosystem and play a crucial role in both our local communities and national economy. Community banks help local businesses thrive by providing them with credit, and by becoming trusted advisors that help small businesses make good financial decisions and manage their capital. One of the many examples of this commitment is a commercial loan we made recently for a small business to purchase and renovate a retail center that helped stabilize a moderate-income census tract that created new businesses and jobs for low-to-moderate income individuals.

I am very pleased to speak on behalf of my community bank, the Arkansas Bankers Association, and as the Vice Chair of the American Bankers Association (ABA).

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