important community banks are to the communities they serve, so working in a bankers’ bank brought that full circle for me. Bankers’ Banks are really the best edge that smaller, independent banks have to compete with larger banks and be the lifeforce in so many small and rural communities across the country. Matt Sinnett Matt Sinnett is the current President and CEO of MIB. He started his banking career at MIB and has watched its growth over three decades. Q: You have had a front row seat, so to speak, in the bankers’ bank movement from the beginning to now. What are your thoughts as to the growth and the importance they have to the community banking industry? A: Well, first, I think it’s important to note that the development of bankers’ banks were a game changer for the industry, and I believe the very formation of these banks – that exist only to serve other banks – have contributed to the success the independent banks that make up the community banking industry. MIB works in collaboration with other bankers’ banks, and together we learn from each other, develop best practices, and share information formally through the Bankers’ Bank Council, and more informally through relationships that have developed over many years. Q: What are your thoughts about the future of community banks? A: I believe that there will always be community banks. For a lot of reasons: they fulfill a valuable function within small towns, and they are essential in rural economies where larger, national banks have a challenging time navigating the nuances of small businesses that deal with specialized local and regional concerns. Community banks are vital in maintaining vibrancy in small towns – they create jobs, fund businesses and so on. With the services that bankers’ banks provide, I think there’s no reason that community banks can’t continue to grow and thrive. I may look at this differently, but while the number of community banking charters is declining, the number of branches and communities being served are holding steady. Yes, it’s a different landscape, but I am optimistic. Looking Ahead As Ben Bernanke, Economist and former Chair of the Federal Reserve of the United States put it, “community banks have a critical role in keeping their local economies vibrant and growing by lending to creditworthy borrowers in their regions. They often respond with greater agility to lending requests than their national competitors because of their detailed knowledge of the needs of their customers and their close ties with the communities they serve. Such lending helps foster the economy by allowing businesses to buy new equipment, add workers, or sign contracts for increased trade or services. Those effects are felt at a local level and may appear at first glance to be fairly modest, but when you multiply these effects across the thousands of community banks in the United States, you really see how the lending decisions they make help the broader national economy.” The development of bankers’ banks in the continued growth of the community banking industry was a turning point that shaped the industry. TAKE US ANYWHERE! Stay up to date from your couch, office or even the moon! Place a 1” x 1” QR Code White on Black Here to the main website Scan to read the most recent publication. 29
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