Pub. 1 2021 Issue 4

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

This past month, discussions about inflation have been commonplace. People are offering opinions on what lies ahead, and the topic seems to be everywhere in the headlines.
Historical context is critical to understanding the current situation. Dropping back about 18 months, global economic issues included advanced countries having the most debt ever recorded in modern history, aging populations (one of several key demographic shifts), and the slowing of the European Union economy. The EU was hit hard due to the deceleration of their manufacturing giant, Germany. Manufacturing suffered because China slowed purchases of imports. In the United States, there exists an amazingly high amount of government debt, consumer debt, and business/corporate debt. Business debt was the highest on record a little over a year ago, 60% of which would be junk bond status if we had an economic disruption.

August WEDNESDAY, AUG 4, 2021  10 a.m. – 11:30 a.m.The TRID Dirty Dozen: Navigating the Landmines WEDNESDAY, AUG 4, 2021  2 p.m. – 3:30 p.m. New Accounts Series: Regulatory Alphabet for Deposit Accounts THURSDAY, AUG 5, 2021  2 p.m. – 3:30 p.m. Comparing Regulation E with Visa & MasterCard Rules FRIDAY, AUG 6, 2021  10 a.m. –

Region 1 Carroll County Trust Company – Ethon & Emily GoettingCommunity Bank of Pleasant Hill – Jasmine BrownBank Northwest – Malachi McBee (Not Pictured) Region 2 Exchange Bank of Nemo – Breanna GibbonsBank of Monticello – Zoe PorterThe Callaway Bank – Ashlyn JarmanAlliant Bank – Natasha Jenkins (Not Pictured) Region 3 Bank of Billings –

Businesses within the financial industry are among the safest and most secure companies in the world. They must be because they house and protect their clients’ most valuable assets. While physical bank robberies continue to decline, the financial industry has become the #1 target for cybercrimes. Criminals would rather use ransomware instead of a weapon, and for good reason. According to Forbes, half of all businesses will pay a ransom, with the average cost being nearly $112,000. That does not include financial and business losses from a ransomware or cyberattack downtime, which lasts about two weeks on average. For most banks and financial institutions, cybersecurity is already top of mind, and in reality, cybersecurity is critical.

The Cyber Threat Landscape is increasingly prominent in the news, represented by the major security breaches of SolarWinds and Colonial Gas. In recent years, the United States federal government has passed several bills relating to Cybersecurity. One of the most comprehensive actions was recently established in an executive order signed by President Biden May 12, 2021: “Executive Order on Improving the Nation’s Cybersecurity.”

No one wants to overspend on anything, especially IT. In fact, one of the first questions most organizations ask when they begin working with us is how much they should be spending on IT. Frustratingly, the simple answer is, “It depends.”

Has it really been a year already? It’s felt like 10 minutes … underwater, while being attacked by a shark as you watch the Chiefs in the 2021 Super Bowl. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. Since then, community banks throughout Missouri and nationwide have adapted to working remotely, scrambled to fund billions of dollars of loans through the Paycheck Protection Program (PPP), and modified terms on thousands of loans to help our struggling community members and address shrinking margins brought on by incredibly low-interest rates. Missouri community banks tackled these challenges while we were helping our children learn remotely, eating room temperature carry out, figuring out the mute button on Zoom calls, and just hoping our new COVID puppies wouldn’t bark during weekly check-in calls. Notice I didn’t even mention navigating all of this during an election year. All of that to say … WHAT. A. YEAR!

And now for something completely different. Except it’s not; it just hasn’t been around for a number of years. But it most assuredly has an impact on your community bank’s bond portfolio and on the securities you’ll be thinking about purchasing the next time you’re in the market.

I developed an interest in banking and specifically agricultural finance way back in high school. I saw it as an opportunity to live and work in a small rural community while pursuing a rewarding career. Upon graduation from college, I worked for the Farm Credit System and immediately experienced the difficulties brought on by the Ag Crisis of the 1980s. It was a very difficult time, but it also provided a great training ground for my future in lending. After 18 years with FCS, I transitioned into community banking, and it has been my passion ever since. Now, with 20 years of experience, I am more convinced than ever that we need to work hard to preserve the community banking model. I firmly believe that the “too big to fail” institutions cannot and will not truly serve the needs of rural communities as effectively as community banks.

About Mid America Bank Established in 1914, Mid America Bank serves customers from six locations in central Missouri. Mid America Bank prides itself on being a proud, locally owned and operated bank that’s good for you and your community too! Visit us online at midambk.com or call the marketing department at 573-635-0019.  Mid America Bank

Our main bank is in Troy, Missouri, with branch locations in Troy, Hawk Point, Bowling Green, Elsberry, Winfield, O’Fallon, and Cottleville. Our market is primarily focused on residential and commercial, with some ag lending as well. The housing market is still doing very well in our area, which equates to closing numerous residential loans and financing homebuilders.

Since my last post, Governor Parson signed two bills into law: SB 106, sponsored by Sen. Sandy Crawford & Rep. Bill Owen, continues the modernization of Chapter 361 (Financial Institution Regulation); and HB 697, sponsored by Rep. Bruce DeGroot and Sen. Sandy Crawford that revises the Property Assessment Contract Energy program (PACE). MIBA Executive Director Matt Ruge and I attended the bills’ signing in Jefferson City June 29 in the Governor’s Office. Both bills will take effect Aug. 28, 2021.

In recent years, secured creditors have become more familiar with using receivers as one method of protecting and liquidating collateral. In 2016, Missouri enacted the Missouri Commercial Receivership Act (MCRA), which provided a comprehensive statutory framework for receiverships.

Recently in the Financial Services Committee at a hearing entitled “A Biased, Broken System: Examining Proposals to Overhaul Credit Reporting to Achieve Equity,” Chairwoman Waters and the majority made clear their efforts to move toward a government takeover of the financial services industry are moving full speed ahead.

Recently at the dinner table, my family had a fascinating conversation about the merits of short stories versus novels. My daughter, an avid reader, made the case that the novel is the superior form of storytelling because it allows the piece to deepen and evolve. My husband, on the other hand, argued that with a short story, every word counts, and that critical focus creates a vivid snapshot of an experience.

When it comes to implementing new technology, community banks have been faced with challenges. For one, we often don’t have the internal bandwidth to build the solutions we want, so we must seek products that exist in the marketplace — and that can feel like searching for a needle in a haystack. Once we find the right product, it has to integrate into our core systems. And when a product or service doesn’t perform, we may let it limp along instead of sunsetting it.

Community Bankers, it is time, once again, to gather at The Lake of the Ozarks to celebrate community banking in Missouri. MIBA and ICBA are the organizations serving as the exclusive voice of our industry: community banking! I invite you to show your commitment to our cause and join community bankers from across the state at the 44th Annual MIBA Convention and Expo at The Lodge of Four Seasons, Sept. 13-15, 2021.