July 29, 2022

MIBA recently interviewed Mitch Baden, the president and CEO of Royal Banks of Missouri, about his life, career and work perspectives.

Where is your main bank and branches located? What is the market like?
Pony Express Bank is chartered out of Braymer, Missouri but the majority of our business comes from the Liberty branch located in the Northeast Kansas City Metro area. Liberty is one of multiple fast-growing suburbs throughout Northland with a population of approximately 35,000.

Region 1 Farmers State Bank – Mackenzie Williams Bank of Orrick – Tatum FloydCommunity Bank of Raymore – Mackenna Graef Chillicothe State Bank – Jensen Simmer Region2 Farmers & Merchants Bank – lain RugeBank of Brookfield-Purdin N.A. – Ryan McIntyre Regional Missouri Bank – Daniel CorbinFarmers Bank of Northern Missouri – Carly Spencer Region 3

In January of this year, the Consumer Financial Protection Bureau (CFPB) declared war on its newest enemy: so-called “junk fees.” The Bureau put out a press release with a headline that cleverly read, “Consumer Financial Protection Bureau Launches Initiative to Save Americans Billions in Junk Fees.”¹

With summer and campaign season in full swing, Matt and I are busy researching candidates for the Missouri House and Senate seats. The MIBA PAC has been active on behalf of MIBA allies, fielding and funding campaign contribution requests.

As we kick off this year’s lending issue, I want to pause for a moment to reflect on just how much lending has changed. Remember not that long ago when a loan card was handwritten on a one-page form? You would just rip off the top sheet, fill out the terms and provide a description of the collateral. From there, the loan assistant would key it in and produce loan documents. That was it. That was the process.

As a community banker, you’re either going through a crisis or preparing for one. In the late 1990s and early 2000s, our bank faced a significant challenge around loan quality. It stemmed from two major factors: first, getting too lax in our underwriting, and second making too many concessions to build business.

Management
A good manager ensures his team members understand the goals they are trying to achieve and then lets the team members work together to accomplish the goals. The manager does not just walk away, though. If you were in the Army, you might remember the saying, “Inspect what you expect.” A manager needs to ensure the steps to accomplish the goals are being taken and take corrective action if needed.

As if navigating the 2008 Housing Crisis and the 2020 Global Pandemic weren’t enough, banks now face the most feared economic monster of all – inflation. CPI YOY jumped by 8.6% in May of 2022, backed by broad price increases across many sectors. Obviously, this is well above the Fed’s normal target of 2% and increases the chances of more severe economic headwinds.