Custer Federal State Bank

What Custer Federal State Bank does

Custer Federal State Bank is a privately-held, locally-owned community bank headquartered in Broken Bow, Nebraska, with a second full-service branch in Kearney operating from a building constructed in March 2017. Founded on March 25, 1925 as the Broken Bow Building and Loan Association, the institution transitioned through a federal savings and loan charter (1934), a stock federal savings and loan conversion (1990), and finally to a Nebraska state-chartered bank in June 2013 under its current name. The bank holds a Bauer Financial 5-star rating and is FDIC insured; it earns the bulk of its revenue from interest income on agricultural, commercial, consumer, home mortgage, SBA, FSA, and USDA Rural Development loans, supplemented by deposit account fees, overdraft and wire-transfer charges, safe deposit box rentals, and subscription revenue from Kasasa Protect identity protection ($7.99–$14.99/month).

The bank's product suite spans retail deposit products (Free, Premier, Sterling, Commercial, First, and Kasasa Cash/Cash Back/Saver checking and savings accounts; CDs from 6 to 60 months; money market; HSA; Traditional and Roth IRAs), a complete lending line (personal, auto, home mortgages with construction and HELOC options, agricultural operating/equipment/real estate, SBA 7(a), FSA Preferred Lender Program guaranteed loans, and USDA Rural Development guaranteed loans), and supporting services including wire transfers, safe deposit boxes, coin counting, notary, night depository, and Visa debit cards. Its digital channel is built on Fiserv infrastructure: a mobile banking app (iOS/Android) providing real-time balance viewing, transfers, bill pay, mobile check deposit, alerts, and CardValet debit-card management, complemented by an online banking portal. Strategic partnerships include Fiserv (core technology), Kasasa, Ltd. (rewards checking/savings/identity product platform), CSID/Experian (identity monitoring), and government agencies FSA, SBA, and USDA Rural Development.

Custer Federal State Bank serves individual consumers, agricultural producers, small business owners, and rural enterprises across central Nebraska, with an explicit emphasis on locally-rooted relationship banking and rapid local loan decision-making. Leadership consists of Brad Shinn (Chairman/CEO) and Chris Varney (President), with Caitlyn Peterson as Executive Vice President at the Broken Bow location; the broader team includes dedicated agricultural lending officers and a mortgage officer. The bank generates revenue primarily through net interest margin on its loan book, fee income on deposit services, and subscription fees on Kasasa Protect, with go-to-market executed through two physical branches, a 24/7 ATM network, a Fiserv-hosted mobile and online platform, and government-backed loan programs as its primary commercial-distribution channel.

Name

Custer Federal State Bank

Legal name

Custer Federal State Bank

Website

https://custerfederal.com

Company type

Private

Founded year

1925

Operating status

Operating

Headcount range

11–50 employees

Short description

Custer Federal State Bank is a privately held, locally owned community bank founded in 1925 in Broken Bow, Nebraska, with a second branch in Kearney. It offers deposit accounts, consumer and agricultural loans (including FSA, SBA, and USDA guaranteed lending), and Fiserv-powered digital banking to consumers, farmers, and small businesses in central Nebraska.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Commercial Banking (52211)

SIC

State Commercial Banks (6022)

akta.pro primary industry

SBA/Government-Backed & Development Finance Loans (FSAKAGAI)

Keywords

• Community banking services
• Agricultural lending
• Consumer deposit accounts
• Residential mortgage loans
• Small business lending

Headquarters

HQ city

Kearney

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Infrastructure, Marketing or Sales, Others

Revenue model

1. Interest Income: Primary revenue from interest earned on loans including agricultural loans, commercial loans, consumer loans, home mortgages, and SBA/FSA guaranteed loans. Interest paid on deposits including checking, savings, money market, and certificates of deposit.
2. Account Fees and Service Charges: Monthly service charges on certain accounts (e.g., Premier Checking $3 if balance under $500), overdraft fees ($30), ATM fees ($1.50 for external ATMs after 2 free), wire transfer fees ($15 domestic, $50 international), money order fees ($2), safe deposit box rentals ($15-$55/year)
3. Kasasa Protect Subscription: Identity protection service with monthly subscription: $7.99/month for Kasasa account holders, $4.99/month for secondary accountholders, $14.99/month for other checking account holders

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels4 records

Core offering

Custer Federal State Bank is a privately held community bank providing traditional deposit products (checking, savings, money market, CDs, HSA, IRA), consumer lending (personal and home mortgages), and specialized agricultural and small business lending (FSA-guaranteed, SBA 7(a), USDA Rural Development). The bank operates two full-service branches in Broken Bow and Kearney, Nebraska, supplemented by Fiserv-powered mobile and online banking platforms.

Product overview

Custer Federal State Bank is a community bank offering a comprehensive suite of traditional banking products and digital services. Its core offerings include multiple checking account types (with Kasasa rewards programs), savings accounts tailored to different age groups, Certificates of Deposit with competitive rates, Money Market Accounts, Health Savings Accounts, and Individual Retirement Accounts. The bank provides consumer lending (personal loans, home mortgages including construction and first-time buyer programs), agricultural lending (operating, equipment, real estate loans with FSA guarantees), commercial lending (SBA 7(a) loans), and rural development financing. Digital banking services include mobile and online banking, mobile check deposit, online bill pay, CardValet debit card management, and Kasasa Protect identity protection. All digital services are powered by Fiserv infrastructure. The bank operates two full-service branches in Broken Bow and Kearney, Nebraska.

Differentiator

Problem solved

Functional benefit

Brands

• Kasasa: Reward checking accounts including Kasasa Cash, Kasasa Cash Back, and Kasasa Saver with rewards programs and ATM fee refunds.
• Kasasa Cash
• Kasasa Cash Back
• Kasasa Saver
• Kasasa Protect
• CardValet

Products and services

• Checking Accounts Multiple checking account types for individual consumers and small businesses with varying fee structures, interest rates, and rewards; commercial checking available for businesses with $0.15/check credit.
• Savings Accounts Age-tiered savings accounts including First Savings (22 and under), Statement Savings (ages 23-61), and Sterling Savings (62 and older) with varying fee structures and features.
• Certificate of Deposit Fixed-rate CDs with terms from 6 to 60 months, minimum $500 deposit, rates 3.13%-3.65% APY depending on term, with Step-Up CD options allowing one rate change during the term.
• Money Market Accounts Interest-bearing accounts with limited check-writing ability, $1,000 minimum opening balance, 6 free non-personal debits per month, and rates from 0.15% to 2.02% APY.
• Health Savings Account (HSA) Tax-advantaged HSA for individuals with high-deductible health insurance plans, offering triple tax benefits (deductible contributions, tax-free growth, tax-free qualified withdrawals) for qualified medical expenses.
• Individual Retirement Account (IRA) Traditional and ROTH IRAs with tax-deductible contributions (Traditional) or tax-free withdrawals (ROTH), plus SIMPLE IRA plans for small businesses.
• Personal Loans Flexible consumer loans with competitive rates for various personal needs, including auto loans with pre-approval options.
• Home Loans Residential mortgage products including conventional loans (10, 15, 20, 30-year terms), bridge loans, HELOCs for home improvement, construction loans, and NIFA first-time buyer programs.
• Agriculture Loans Specialized lending for agricultural operations including operating loans, equipment financing, and real estate loans with competitive rates and guaranteed loan options for farmers and ranchers.
• Farm Service Agency Guaranteed Loans PLP-designated agricultural loans including lines of credit (up to 5 years), equipment loans (up to 7 years), cattle loans (up to 10 years amortization), and real estate loans (up to 40 years).
• SBA Guaranteed Loans Small Business Administration 7(a) loans for startups, business transitions, equipment, real estate, and working capital with terms up to 25 years.
• Rural Development Loans USDA Rural Development Business & Industrial Guaranteed Loans for working capital (up to 7 years), equipment (up to 15 years), and real estate (up to 30 years).
• Mobile Banking Full-service mobile banking app (powered by Fiserv) enabling real-time balance viewing, money management, transfers, bill payment, mobile check deposit, alerts, and CardValet debit card management on iOS and Android.
• Online Banking Internet banking platform providing account access, fund transfers, e-statements, and bill payment with 128-bit SSL encryption.
• CardValet Mobile app (Fiserv-powered) for debit card control allowing cardholders to turn cards on/off, set geographic restrictions, merchant category controls, transaction limits, and receive real-time alerts.
• Kasasa Protect Subscription identity fraud protection and restoration service providing 24/7 credit monitoring, dark web surveillance, lost wallet protection, and identity restoration through Experian/CSID.
• Wire Transfers Domestic ($15) and international ($50) wire transfer services for fast fund movement between accounts.
• Safe Deposit Boxes Secure storage boxes available in Small ($15/year), Medium ($25/year), Large ($35/year), and Extra Large ($55/year) sizes at Broken Bow and Kearney branch locations.
• ATM Services 24/7 ATM access with unlimited fee-free withdrawals for customers at Custer Federal ATMs; 2 free withdrawals per month at external ATMs ($1.50 each thereafter).
• Coin Counting Services Coin counting service free for customers; 10% service fee charged for non-customers.
• Visa Debit Cards Chip-enabled Visa debit cards accepted worldwide for purchases and ATM withdrawals with Verified by Visa security, paired with CardValet mobile controls.

Quantifiable outcome

• Bauer Financial 5-star rating (highest rating)
• +2 more outcomes

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Seven partnerships are on record, tiered core and minor.

• FiservcoreTechnology or IntegrationTechnology partner powering Custer Federal State Bank's mobile banking app. Fiserv provides the platform enabling real-time balance viewing, money management, transfers, bill payment, mobile check deposit, alerts, and card management services.
• Kasasa, Ltd.coreTechnology or IntegrationLicensing partnership for Kasasa branded reward checking and savings products. Kasasa provides the product platform (Kasasa Cash, Kasasa Cash Back, Kasasa Saver, Kasasa Protect) that CFSB offers to customers.
• CSID (part of Experian)coreTechnology or IntegrationThird-party provider of Kasasa Protect identity fraud protection services. CSID/Experian provides credit monitoring, dark web monitoring, credit reports/scores, and identity restoration services.
• Farm Service Agency (FSA)coreStrategic or Co-development PartnerPreferred Lender Program (PLP) lender status - highest designation from FSA. Enables Custer Federal to offer FSA guaranteed agricultural loans with favorable terms and conditions for borrowers.
• Small Business Administration (SBA)coreStrategic or Co-development PartnerSBA 7(a) guaranteed loan program partner. Custer Federal offers SBA-backed business loans for working capital, equipment, real estate, startup, and business transitions with competitive terms.
• USDA Rural DevelopmentminorStrategic or Co-development PartnerRural Development Business & Industrial Guaranteed Loans program partner. Helps improve rural economy and quality of life through working capital, equipment, and real estate loans.
• Nebraska Investment Finance Authority (NIFA)minorStrategic or Co-development PartnerFirst-time home buyer program partner. Custer Federal utilizes NIFA to offer first-time home buyers financial resources, competitive rates, and potential grant funds.

Scale indicators5 records

Recent moves11 records

Expansion highlights5 records

Direct peers

• Jones National Bank & Trust: Seward, Nebraska-based community bank with a similar ag lending focus, FDIC-insured deposits, and rural Nebraska footprint. Directly comparable in business mix and customer segments.
• Five Points Bank: Hastings, Nebraska community bank providing ag, commercial, consumer, and mortgage lending across central Nebraska. Directly comparable as a multi-branch Nebraska community bank serving similar ag-heavy customer segments.
• Heartland Bank: Geneva, Nebraska community bank offering ag lending, deposit products, and SBA-backed loans in rural Nebraska markets. Comparable in size, geographic concentration, and customer profile to Custer Federal.
• Adams Bank & Trust: Colorado and Nebraska community bank offering ag lending, SBA loans, and consumer deposit products across rural markets. Comparable as a multi-branch ag-focused community bank with government-backed lending programs.
• Equitable Bank: Omaha-based Nebraska community bank offering consumer and commercial lending with focus on local decision-making. Comparable in community banking model and Nebraska market presence.
• NebraskaLand National Bank: North Platte, Nebraska-based community bank with ag lending, SBA loans, and rural deposit products. Comparable as a Nebraska-headquartered community bank focused on agricultural and small business customers.
• Cornerstone Bank: York, Nebraska-based community bank offering a similar mix of ag lending, consumer deposits, SBA loans, and digital banking to customers in rural Nebraska. Closely comparable in size, footprint, and government-backed lending focus.

Broad incumbents

• Pinnacle Bank: Lincoln, Nebraska-based subsidiary of Pinnacle Bancorp, one of the largest community bank holding companies in Nebraska with branches across multiple states. Comparable in product offerings (ag lending, SBA, deposits) but materially larger and more geographically diversified.
• First National Bank of Omaha: One of the largest privately-held banks in the United States, headquartered in Omaha, Nebraska with ag lending, commercial banking, and consumer deposits. Overlaps with CFSB in ag lending and Nebraska consumer banking but operates at vastly greater scale.

Regional players

• Great Plains State Bank: Nebraska community bank headquartered in Petersburg with ag lending and consumer banking products. Comparable in size and ag focus though operating in a different Nebraska region than CFSB.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles12 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Custer Federal State Bank