The Ninth Bankers Bank This year, Midwest Independent Bankers’ Bank (MIB) celebrated its 40th anniversary, marking a significant milestone in its history. Established in Jefferson City, Missouri, (MIB) became the ninth bankers’ bank in the nation. Camden Fine served as the original President and CEO of MIB until the spring of 2003 when he resigned, moving on to the ICBA. Leadership of MIB transferred to L.D. McDonald and eventually to Matt Sinnett, who is the current President and CEO. Today, MIB is one of 13 bankers’ banks, and while they all have their unique startup stories, they also have a shared history of overcoming a threat to their industry, taking action and coming out the other side with a sense of community that speaks to what community banks do on the daily. Three of MIB’s presidents and CEOs share their insights from the perspective of being part of the movement that made such a contribution to the community banking industry. Camden Fine Today, Cam Fine is President and CEO of Calvert Advisors. He is also the former President and CEO of ICBA and instrumental in the startup of MIB. Q: Bankers’ banks emerged in the 1970s and 1980s when many community banks found that their traditional correspondent banks – often larger national banks – were beginning to compete against them for customers. What were the local market conditions like in 1984, when MIB’s charter was approved? A: MIB was chartered in Missouri, and the local conditions there were the same as in other states – the operational resources that Missouri community banks relied on for their day-to-day operations became competitors, and not just any competitors – ones with inside knowledge, if you will, making it very difficult for smaller community banks to fairly compete. Leadership from five Missouri community banks formed an organizing committee with the intent of chartering our own bankers’ bank. We were the ninth bankers’ bank in the nation, so we at least had a blueprint to follow and some direction. But again, the concept of a bankers’ bank was new to Missouri. It is important to note that bankers’ banks were the solution to an industry-wide problem, so there were lots of collaborative efforts, especially from those first bankers’ banks that were chartered in their respective states. Q: MIB’s roots trace right back to MIBA’s convention, which is usually held in September. So, this past September, MIB celebrated 40 years. What makes you most proud of MIB’s growth? A: Well first, the forming committee worked with input and collaboration with the Missouri Independent Bankers Association (MIBA), and the charter was approved during the time of MIBA’s convention, so it was a great place to announce the charter. Once the committee had a path forward – well, the path to obtaining a charter – I was hired to raise the funds, shepherd the process through to obtain the charter and run the bankers’ bank once chartered. While I was, at the time, the State Director of Taxation, I didn’t have direct community banking experience, so for me, the learning curve wasn’t a curve. Added to which I was 32 years old, so I also looked very young as I was convincing bank presidents and board members to invest in this very new idea. I was new in my banking career and so were the concept of bankers’ banks, so my banking career and MIB are inextricably linked. I am really proud of the faith and trust that those early shareholder banks displayed when it came to all the pieces needed to obtain a banking charter, which included raising funds. I literally went door-to-door and pitched leadership much more seasoned in the industry than I was on an idea that had never been done before in Missouri. To see MIB flourishing as it is now, and serving so many community banks is incredible for me personally, and I feel truly fortunate to have been a part of that. The process certainly was not easy. In fact, right up to the granting of our charter, I was raising capital. L.D. McDonald L.D. McDonald was the second President and CEO of MIB, and his years in community banking were instrumental in expanding securities services to the member banks as the next step to MIB’s growth. Q: When you took the reins at MIB, the bank was entering its ninth or tenth year. What were your goals to grow the bank over the many years of your leadership? A: In short: steadying the ship. As an organization, we wanted steady growth, which meant a focus on retaining customers, focusing on processes and training staff. To accomplish this, we needed to add more services, and we were able to do that with acquiring First St. Louis Securities, Inc., now First Bankers’ Banc Securities, Inc., with three other bankers’ banks in November of 2006. Q: You spent the early years of your banking career in community banks, and then as an auditor before your almost two decades at MIB. Your career trajectory started with serving the community to serving community bankers, was there a paradigm shift in how you viewed the industry? A: Not really, working in community banks and later in a position to serve the community banks is very much the same thing. I believe my time in the community banks gave me a sense of how 28
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