Our Economy

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.

Our banks are flush with cash, but where is the loan demand normally associated with an economic expansion? Loan to deposit ratios stand at a low point not seen in more than 30 years.

Many of you know the Chinese symbols for chaos and opportunity are the same or very similar. It will be interesting to look back on this period and reflect on whether we are in a time of chaos or opportunity. I would like to think the latter.

Our Country

It appears our country continues to steer away from capitalism and more toward socialism or even communism. I don’t know that I can sum up where we are right now any better than Thomas Sowell: “One of the sad signs of our times is that we have demonized those who produce, subsidized those who refuse to produce, and canonized those who complain.”

Watching events in our country and around the world, I am often reminded of the old cowboy logic saying, “there isn’t any vaccine for stupid.” All kidding aside, we need to step up and help our country. We are leaders in our communities. We cannot sit back and think someone else will deal with the craziness we are seeing unfold.

Our Association

We are very fortunate to have a great staff running the daily affairs of our association. Matthew, Michelle, and Sara make it happen. We are also blessed to have many bankers across the state that contribute their time, energy, and knowledge to keep the association moving forward.

Matthew Laumann is one of our bankers who deserves special recognition. He has led our association for the last two years. While his term as President of the association may have ended, I am sure we will be able to rely on his wise counsel for years to come.

Our vendors and sponsors are another key element in the success of our association. In addition to making us aware of products and services that can help our banks, they help keep our events affordable and lively. Thank you all for your efforts to help the community banks in our state have the tools to meet the needs of our communities.

Our association continues to face many challenges. We know the number of banks in the state continues to fall, presenting challenges in funding the association. We must also meet the needs of our membership as the industry continues to evolve. We may need to rethink the way we provide services and operate. Before making any changes, however, we need to make sure we agree on where we are and where we want to go. Hopefully, it will be easier to get our bearings in 2022 than in 2020 and 2021.

The Future

As we look forward to the 63rd year of our association, I am reminded of another old saying. “When the going gets tough, the tough get going.” We have proven that Missouri independent bankers are tough. We have overcome an infinite number of obstacles blocking our path to success. It is now time for us to get going and work together to address the challenges facing our association, our industry, and our country.