Pub. 1 2021 Issue 5

October Fri., Oct. 1510:00 a.m. – 11:30 a.m.Required Compliance for Commercial Loans Secured by Real Estate Tues., Oct. 192:00 p.m. – 3:30 p.m.Job-Specific BSA Series: Job-Specific BSA Training for Senior Management & Director Wed., Oct. 202:00 p.m. – 3:30 p.m.Top 10 IRA Rollover Mistakes   Thurs., Oct. 212:00 p.m. – 3:30 p.m.Reg E Investigation & Requirements for Debit […]

The Federal Reserve recently unveiled a tool to help small community banks – those with less than $1 billion in assets – comply with a new accounting standard they are required to implement by 2023. The standard is the current expected credit loss (CECL) methodology for setting banks’ loan loss allowances, and the tool is called SCALE, the Scaled CECL Allowance for Losses Estimator.

To view the convention photo gallery, please visit miba.net/annual-convention.html. 

To view the convention photo gallery, please visit miba.net/annual-convention.html. 

Thanks to all those who attended the MIBA 44th Annual Convention held Sept. 13-15, 2021, in Lake Ozark, MO. Attendees met in person and had a great time networking, golfing, and enjoying great food! Thank you to all of our exhibitors and those that donated to the 31st Annual Scholarship Auction. We hope to see you at our next event.

Contrary to a multitude of reports, not all community banks are awash in cash in 2021. A number of ICBA member banks have been able to grow their loan pipelines, or at least maintain their cash positions – which remain annoyingly unprofitable – at manageable levels. Perhaps the avalanche of cash flows from the bond portfolio is past its peak, too, since mortgage rates have moderated somewhat in recent months.

Thanks to all who attended the Leadership Division Conference September 15-16. We had a great time learning, connecting with colleagues, and investing in the future of community banking. We hope you will join us next time. For more information on upcoming events, please visit web.miba.net/events.

First Community National Bank is pleased to announce the following employee promotions: Peggy Alexander was promoted to Assistant Operations Manager at First Community National Bank, headquartered in Steelville. Ms. Alexander joined FCNB in December 2005 and serves as Vice President, Elite Banking Manager and Loan Officer at the Steelville Financial Center. Nathan Booker was promoted to

Where are your main bank and branches located? Do you target a specific market?
The original bank in Wyaconda, Missouri, is still in operation today. The main bank is in Kahoka, and we also have a branch in Canton. We are in an Ag-heavy market in Northeast Missouri.

The announcement in March by Senator Roy Blunt that he would not seek another term in the U.S. Senate has created a high-stakes game of political musical chairs. It seems just about every sitting congressman/woman believes they have what it takes to be our next U.S. Senator. Only Ann Wagner and Blaine Luetkemeyer have ruled out a run.

I was very fortunate to have a great experience growing up. While Independence had a population of about 100,000, it felt like a small town. My family lived in town, but they owned farmland and my grandparents and extended family all farmed. I spent a lot of time in the country. My parents were both educators. My father was the former basketball coach at the high school I attended and was an administrator in the school district in addition to teaching drivers’ education. My mother taught home economics in another high school in Independence.

In one sense, it feels like a decade ago that Congress started working on the CARES Act. At the same time, it feels like only a few weeks ago, we discussed the formation of the PPP programs and the SBA’s new, outsized role in the government’s response. I’ve written about that role several times in this magazine, and many of us have spoken in person about it a few times over the last 18 months.

A 2020 U.S. Government Accountability Office report concluded that a “very small” community bank could spend up to 2.4% of operating expenses on Bank Secrecy Act (BSA) work alone. And costs are rising, with more than half of compliance officers expecting to make an increase in their budget. This doesn’t seem to match up with what makes community banking different. Being relationship bankers, we pride ourselves and our industry on going the extra mile — or miles, as proven by the heroic efforts during the Paycheck Protection Program — to serve our customers and communities.

When I consider what differentiates us as community bankers, I’m immediately drawn to the legacy of good we create. We care for those in our communities not because we have to but because they are our friends, neighbors and relatives. It’s our responsibility to help make our communities better places to live, to help pull people out of poverty and address issues they’re facing. And, we build a long-lasting positive impact because that’s what community banking is all about.

We entered 2021 filled with hope that our economy would rebound swiftly after the COVID shut down of 2020. The federal government provided more stimulus in the first quarter, but the lack of workers, material shortages, rising prices and the additional regulatory burden has created a cloud over our economy.