It’s unclear to me exactly what role a local bank is supposed to play in the modern era. In the old days when banks did real underwriting, a local banker would

It’s unclear to me exactly what role a local bank is supposed to play in the modern era. In the old days when banks did real underwriting, a local banker would know a small business or would-be homeowner’s reputation and take it into account (for better or worse.) Now banks just originate mortgages and use the standardized underwriting criteria provided by the buyer, usually GSEs. All other consumer lending is almost strictly driven by credit scores. Even medium sized businesses now have access to debt and equity markets. There are national companies that specialize in things like factoring. I guess maybe local banks are still making loans to hyperlocal businesses like pizza shops and hair salons?