As we get older, they say time flies! Well, 2023 is a great example of this statement. Also, the saying, “time flies when you are having fun” can be associated with the swiftness that this past year went by. I think if you poll community bankers, most, if not all, enjoy their jobs and have fun.

Reflecting on the past year, we have seen four banks fail, three due to liquidity issues and one due to fraud this past summer. When the banks failed earlier in the spring, many were skeptical about the strength of the banking sector and how this would play out throughout 2023. Just like in other trying times, our community banks dug their feet in the sand and held solid, and the community banking industry remains strong. Community banks represent 90% of insured institutions in the United States.

Inflation and increasing interest rates were still a focal point in 2023. Interest rates have continued to increase and inflation has slowly subsided but not to the target amount that the Federal Reserve is looking to achieve. Community banks thrive when given challenges! We look for answers and solutions for our customers; we work with our customers and communicate with them. That is because we are part of the communities we serve.

Unfortunately, the number of banks continues to decrease, however, the largest impact has been branches closed by the large regional banks. Over 3,000 bank branches were closed so far in 2023 while 1,000 were opened. This is one of the largest net decreases we have seen in branches in many years. Community banks have stepped up and increased our deposit shares with the closures of the larger bank branches.

As a country, we have seen devastating events in 2023 with natural disasters and the historic wildfire in Maui. Many members from the MIBA were in Maui earlier this year and cannot believe the pictures that they have seen since the fires.

Currently, the war between Israel and Hamas-led Palestinian Militant Groups continues to escalate. The United States continues to monitor and emphasize that the two regions remain separated and must come to a diplomatic resolution. As bankers, we will continue to monitor as this could have a significant impact on our economic conditions if we get involved more with this conflict.

As we look ahead to 2024, we are always reminded of the work we need to do to make community banking better. Community bankers step up in challenging times, especially for our local communities. We are the backbone of many of these communities, and our customers’ success is instrumental to our success. Our customers are our friends, neighbors and families and we look forward to serving them.

The holidays are quickly approaching, just like the year of 2023 has quickly passed. Remember, we represent Main Street not Wall Street, and we are the future of the success of our friends and families in the communities we call home. Have a safe and happy holiday season!