The end of the year is fast approaching; looking back, it has been a busy year for Community Banks in Missouri. Competition, the Federal Reserve and inflation, and regulatory and legislative issues heavily impacted our banks this year. It has been an interesting year, with many changes and new issues. Missouri’s Community Banks have navigated these issues nimbly while serving those on Main Street better than anyone else.

Missouri banks’ economic and competitive environment has changed significantly over the year. We started the year flush with deposits, trying to figure out what to do with them. Over the year, many of you told me this situation changed quickly. In several of our markets, there is stiff competition for deposits, creating a lot of pricing pressure. In addition, the rapidly increasing Federal Reserve Fed Funds target rates have pressured us to increase loan pricing. Due to inflation impacting all individuals and businesses across the state, the Fed has been aggressive. These rate increases have put us in a territory we haven’t seen in several decades.

The regulatory and legislative front has been as busy as ever. The CFPB has been aggressive in its efforts to combat what it calls “junk fees.” We spent most of the year discussing and pushing back against this type of language. In addition, banks have been working on their CECL models and trying to sort through all the comments and guidance issued by the regulatory offices.

Like every year, MIBA has had an incredible slate of conferences, educational seminars, and events. From what I hear, the early-year seminars were successful and very informative. The Directors and Officers Conference this year at Margaritaville in May was a massive success, with bankers coming together from across the state. This year’s convention at The Lodge of the Four Seasons provided the setting for some wonderful camaraderie and a tremendous source of timely insights. The MIBA staff works hard to put all these events together each year. If you get a chance next year, sign yourself or someone at your bank up for as many of these events as possible. I want you to know there’s a lot to be gained by attending.

Financially MIBA is on solid footing, and the High Street Building has been an excellent resource for providing a space to hold educational events and help keep costs down. However, MIBA is always looking to grow membership and affiliates. If you know of any community banks or reputable vendors near you that would make good members, let us know.

It is time to think about next year as this year winds down. I encourage everyone to sign up for all that MIBA has to offer. One favorite event is the ICBA Capital Summit, held in early May. MIBA has traditionally represented itself well by sending plenty of Missourians to be heard in Washington. If you or anyone in your bank is interested, please feel free to reach out for more information.

Thank you for being a member in 2022, and here is to a solid and profitable 2023!