THE POWER OF INQUIRY Leadership Success Through Asking Questions 2024 • Issue 2 3 ALCO Strategies To Manage Risk and Maximize Profitability Putting the Person in Personalized Marketing
INVESTMENT PRODUCTS Municipal Bonds Mortgage-Backed Securities Govt. & Agency Bonds Corporate Bonds Brokered CDs Money Market Instruments Structured Products Equities Mutual Funds ETFs FINANCIAL SERVICES Public Finance Investment Portfolio Accounting Portfolio Analytics Interest Rate Risk Reporting Asset/Liability Management Reporting Municipal Credit Reviews Balance Sheet Policy Development and Review Comprehensive SOLUTIONS 888-726-2880 FBBS believes the success of your team is the future of our firm. MEMBER FINRA & SIPC. INVESTMENTS ARE NOT FDIC INSURED, NOT BANK GUARANTEED & MAY LOSE VALUE. Lending Services Operational Services Audit Services The customer service that MIB provides to our community bank is exceptional. Tim Burns, our relationship manager, listens to our needs and helps our bank meet our goals. Their website protal we use for reports is very user-friendly and easy to navigate. We appreciate the relationship we have with MIB today! 800-347-4MIB mibanc.com MEMBER FDIC Tim Burns Jami Schmidt Jami Schmidt/CFO Henderson State Bank Henderson, NE WHY ? www.FBBSinc.com
9 ©2024 The Nebraska Independent Community Bankers are proud to present The Nebraska Independent Banker as a benefit of membership in the association. No member dues were used in the publishing of this news magazine. All publishing costs were borne by advertising sales. Purchase of any products or services from paid advertisements within this magazine are the sole responsibility of the consumer. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Nebraska Independent Community Bankers or its publisher, The newsLINK Group, LLC. Any legal advice should be regarded as general information. It is strongly recommended that one contact an attorney for counsel regarding specific circumstances. Likewise, the appearance of advertisers does not constitute an endorsement of the products or services featured by The newsLINK Group, LLC. Nebraska Independent Community Bankers 1001 S. 70 Street, Suite 101 Lincoln, NE 68510 (402) 474-4662 nicbonline.com The Nebraska Independent Banker is a Publication of The Nebraska Independent Community Bankers Association Issue 2 • 2024 TAKE A LOOK INSIDE 12 19 NICB Executive Committee Chairman Rick Heckenlively Points West Community Bank Sidney Chairman Elect Dave Ochsner Commercial Bank Nelson Vice Chairman Jim Niemeier Citizens State Bank Friend President/CEO Dexter Schrodt Secretary Kelly Lenners First State Bank Nebraska Pickrell Treasurer Arnold Lowell CerescoBank Ceresco Immediate Past Chairman Corby Schweers Elkhorn Valley Bank Wayne 4 PRESIDENT’S MESSAGE Embracing Renewal: A Springtime Perspective By Dexter Schrodt, President and CEO, NICB 6 FLOURISH Putting the Person in Personalized Marketing By Rebeca Romero Rainey, President and CEO, ICBA 8 We Want to Feature You in Our Next Issue of The Nebraska Independent Banker! 9 Hold On! Bank Loan Quality Doesn’t Align with Wall Street Metrics By David Ruffin, Principal of IntelliCredit, a Division of QwickRate 12 3 ALCO Strategies To Manage Risk and Maximize Profitability By Dave Koch, Abrigo 14 Checks & Balances SVB: One Year Later By Anne Balcer, Senior Executive Vice President, Chief of Government Relations and Public Policy, ICBA 17 Recession Proofing How To Benefit From a Lull in the Economy By Jim Reber, President and CEO, ICBA Securities 19 The Power of Inquiry Leadership Success Through Asking Questions By Connie West, Gallup Certified Strengths Coach, Regional Vice President, The James Paul Group 21 NICB Endorsed Partners 21 Associate Members 2024 22 April Bank Training Webinars
EMBRACING RENEWAL: A SPRINGTIME PERSPECTIVE By Dexter Schrodt, President and CEO, NICB PRESIDENT’S MESSAGE 4 NEBRASKA INDEPENDENT BANKER
As the world emerges from the frosty grasp of winter, there’s a palpable sense of renewal in the air. Springtime, with its blossoming flowers and warmer weather, brings about a spirit of rejuvenation and growth. This sentiment is particularly resonant within the community banking sector, where resilience and adaptability are foundational traits. And it is especially true for Nebraska community banks gearing up for another year of supporting our local agriculture producers. Spring serves as a metaphor for the perpetual cycle of change and evolution that characterizes the banking industry. Just as nature undergoes a transformation during this season, community banks are constantly evolving to meet the needs of their customers, which can change from year to year and customer to customer in the agricultural sector. Our community banks must also meet the demands of a dynamic financial landscape that is currently presenting challenges of its own. Moreover, spring symbolizes a sense of interconnectedness and collaboration that stems from nature but crosses over to us all. Community banks thrive on their close relationships with customers, local businesses and the communities they serve. Just as the arrival of spring fosters a sense of community among people, community banks play a vital role in fostering economic growth and prosperity within their service areas for the betterment of those who call that place home. Of course, spring also brings its share of challenges. Just as sudden rain showers can disrupt a sunny day, economic uncertainties and regulatory changes can impact the stability of the banking sector. However, like resilient spring flowers that weather the storms, community banks are equipped to adapt and thrive in the face of adversity. Even with this ability to persevere, we should still put advocacy at the top of our priorities because, eventually, regulatory changes can become too much to bear, even for well-operated community banks. Right now, there are several storm clouds coming out of Washington, many by regulators acting on their own accord without clear statutory authority from Congress. However, unlike actual storms, this regulatory storm can be slowed down and even stopped by using our collective voice to share how one-size-fits-all regulations can have a detrimental impact on community banks. As president and CEO of the NICB, I am privileged to witness firsthand the collective efforts of our member institutions to support their communities. From sponsoring local events to providing financial literacy programs, community banks are deeply invested in the wellbeing of the areas they serve. This commitment to community engagement is at the heart of what makes them unique. In essence, spring serves as a reminder of the cyclical nature of life and the importance of embracing change. As we welcome the season of renewal, let us reflect on the resilience and adaptability of community banks. By staying true to their core values of customer service, innovation and community involvement, our institutions will continue to flourish and grow, ensuring a bright future for the communities we serve. As we welcome the season of renewal, let us reflect on the resilience and adaptability of community banks. NEBRASKA INDEPENDENT BANKER 5
FLOURISH PUTTING THE PERSON IN PERSONALIZED MARKETING By Rebeca Romero Rainey, President and CEO, ICBA When it comes to community bank marketing, it’s about the person, not the product. As relationship bankers, the client connection drives community bank decisioning around solutions, promotions and outreach. Through every communication, community banks seek to deepen their customer ties, not merely sell them on the next big thing. With that, we again see how community banks truly differ from their megabank and nonbank counterparts. When I think about how others approach marketing, it’s more about pushing the technology they provide or the products they offer. Others in financial services aren’t stopping to realize individual stories; rather, they are simply in the act of the sell. Community banks embody the polar opposite of that transactional approach and are focused on building connections. While you offer advanced technology and state-of-the-art solutions, you do so in a way that supports what your communities need. You are in the relationship for the long term. For example, today, your customer may need a savings account or a home loan, but you will be there to support their future life goals and evolving needs over time rather than providing a singular product. In short, community banks strive to ensure the people, families, small businesses and communities they serve stand to prosper over time. 6 NEBRASKA INDEPENDENT BANKER
It takes a lot to convey that fundamental difference. That’s why the ICBA National Campaign is so important. Through these efforts, we’re able to bolster the community bank story on a national platform, and individual community banks can amplify it on the ground in their own communities. We want to take what you do, highlight your authentic approach to relationships and demonstrate the community bank difference, so you can leverage the momentum in your communities. It’s working. As we close out year one of the National Campaign, we’ve seen a 2,000% year-over-year jump in Rebeca Romero Rainey is the president and CEO of ICBA. Connect with Rebeca on X @romerorainey. We want to take what you do, highlight your authentic approach to relationships and demonstrate the community bank difference, so you can leverage the momentum in your communities. organic traffic to banklocally.org. Fifty-five percent of those aware of the campaign indicate they believe community banks are very important to the local economy. In addition, 26% of millennials who recalled the campaign searched online to find a community bank, taking a meaningful step toward banking in a way that makes a difference. So, we will keep supporting you in elevating the visibility of community banks. We’ll stand beside you as you continue to demonstrate the positive impacts you make. We’ll advocate for you to ensure your voice resonates across the U.S. Because as a community bank, it’s about the people you serve, not the products you offer, and in banking, that makes all the difference. 100 South Phillips Avenue, Sioux Falls (605) 335-5112 advantage-network.com DISCOVER THE ADVANTAGE OF RELATIONSHIPS Why choose The Advantage Network instead of going in-house with your debit card production and ATM programs? Because we’ve built relationships within the industry to provide your cardholders with special perks and convenient, surcharge-free access to thousands of ATMs around the world. Scan the QR code to learn more and discover the relationship advantage. NEBRASKA INDEPENDENT BANKER 7
We Want to Feature You in Our Next Issue of The Nebraska Independent Banker! The Banker Showcase shines a light on those employees that make a difference. To be featured, please email Dexter at dexter@nicbonline.com. Member FDIC Traci Oliver Eric Hallman Tara Koester Bankers’ Bank of the West We champion Community Banking bbwest.com | 800-873-4722 www.bbwest.com YOUR NEBRASKA RELATIONSHIP MANAGERS As a bankers’ bank we strive to help with every level of service and expertise. That is why we service anything from loan participations, merchant services, ATM/debit and much more, because we aim to answer your questions with, “…yes, we can do that too!” 8 NEBRASKA INDEPENDENT BANKER
HOLD ON! BANK LOAN QUALITY DOESN’T ALIGN WITH WALL STREET METRICS By David Ruffin, Principal of IntelliCredit, a Division of QwickRate Well . . . at least not in real time. I recently heard a senior lending officer proclaim, with obvious relief, “Looks like we’ve dodged the recession bullet. We’re refocusing on loan growth opportunities.” The Fed-orchestrated “soft landing” is, of course, what our industry desires, but history clearly warns that it can take years before the effects of macro events such as pandemics, rate shocks and rampant inflation actually show up in lower credit quality. Even as these triggering events subside or abate, the lesson is clear: We shouldn’t let our guard down yet. The Good Despite weaknesses in specific sectors of the economy, overall job growth and unemployment have remained resilient in the face of perceived economic pressures. The inflation rate in December fell to 3.4% vs. 6.5% a year earlier, and the Federal Reserve has hinted at lowering interest rates soon in response. While current rates are moderate compared to standards set in the ‘70s and ‘80s, cutting interest rates will certainly be a boon for the nearlydecimated mortgage industry and other lenders. The Bad Despite those promising economic indicators, other data signals potential challenges ahead: • A December 2023 study by renowned academics for the National Bureau of Economic Research indicated that about 44% of banks’ office loans are underwater (equity-to-loan value), with vacancies soaring. The study noted that a 10% default rate on broader commercial real estate (CRE) loans would result in about $80B in bank losses. Some fear that the drag of higher rates on the 1-4 family housing sector has created a multifamily housing bubble. • The research group MSCI Real Capital Analytics reported last summer that the community and regional bank share of the U.S. CRE market had exploded from 17% to 27% just since the pandemic. While the smaller banks have increased their CRE loans, investors and larger institutions have shed CRE exposures due to credit quality concerns and heightened regulatory scrutiny. • Weaknesses in the trucking sector were at the heart of a recent Midwest bank failure — the first credit quality focused closure in quite a while. • There’s a growing dichotomy between consumers living paycheck-to-paycheck (and running up credit card levels to historic heights) and those with strong balance sheets and investment resources. While this issue may be primarily affecting the credit union industry, it could impact bank performance as well. • The chart on the following page of historical data from the “QwickAnalytics® National Performance Trends Report” (based on the proprietary QwickAnalytics NEBRASKA INDEPENDENT BANKER 9
The Now It’s clear that, given all of the data listed above, those directly responsible for your bank’s credit portfolio performance must stay vigilant. Consider directing attention to these key areas: • Accept that regulatory scrutiny is increasing significantly, particularly in the CRE arena. Be sure to reinforce your adherence to both the December 2006 “Interagency Guidance on CRE Concentrations” (Fed SR7-1) and the more recent June 2023 “Prudent CRE Loan Accommodations and Workouts” (Fed SR235). Be proactive in anticipating CRE repricing and performance, monitoring concentrations unique to your bank and ensuring that management and the board are fully informed. • Enhance all aspects of loan review — whether performed internally (annually) or by an external independent provider — and ensure the quality and experience levels of those performing the reviews are up to the task. Remember, loan review is one of the most reliable tools for early detection of credit risk — a proven corollary to reduce loan losses. • Perform stress tests, preferably paired with loan reviews, that go beyond providing theoretical losses. Also, focus on suspect borrowers who could potentially move the needle on losses higher. • Embrace practical and affordable portfolio analysis tools that provide early detection of weakening trends and emerging hotspots, particularly within your bank’s lending concentrations. Your loan portfolio is your DNA, so know what it is telling you before regulators arrive. Smaller banks remain laggards in this area. Waiting for call report data to depict loan quality is a fool’s errand because, as they say, “Those horses are already out of the barn.” We all join in the optimism of the lending officer ready to put recession fears behind them, but history and current conditions mandate that the industry keep its guard up and manage what appears poised to be the greatest level of credit stress since 2008’s Great Recession. David Ruffin is Principal of IntelliCredit, a division of QwickRate. He has extensive experience in the financial industry, including a long and pronounced emphasis on credit risk in a variety of roles that range from bank lender and senior credit officer to the cofounder of IntelliCredit and its technology that is revolutionizing a decades-old loan review process. For more information, visit intellicredit.com or email info@intellicredit.com. Community Bank Index (QCBI) of true community banks) clearly indicates an approximate two-year lag between the end of rate hikes and the peak of non-performing loans (NPLs). This may be the most telling data supporting the continuing need for credit risk management vigilance! 10 NEBRASKA INDEPENDENT BANKER
Start your instant payments journey now Visit icba.org/instantpayments today Giving you the power to give your customers faster payments. Did you know? 70% of consumers feel it is important to have access to enhanced faster payment capabilities from their financial institution(s).* ICBA Payments instant payments solutions help your bank: Take advantage of growth opportunities Quickly adapt to the changing payment landscape Give customers fast and flexible payment options *Source: Federal Reserve Brief, 2022
3 ALCO Strategies To Manage Risk and Maximize Profitability A strategic asset/liability management committee (ALCO) monitors and manages risks associated with a bank or credit union’s balance sheet. Even more importantly, the ALCO can help identify strategies that optimize profitability, liquidity and the outside availability of funding. A recent Abrigo webinar identified strategies for ALCO members to consider as they assess common options for managing the balance sheet. Below are three examples of common options, along with important considerations and tips for evaluating each to make sure your institution doesn’t leave money on the table: 1. Manage the “Marginal Return” Impact of Balance Sheet Growth Strategies Consider: • Are our strategies allowing for profitable growth, or are we losing margin “growing?” • Are we using our limited liquidity wisely? • What other funding and investment options are there? • How can we calculate the cost to grow? Evaluate: • The marginal impact of using rate cuts to boost loan volume vs. raising loan rates/slowing lending. Will the incremental rate earned ($ volume change/$ income change) on loan growth exceed the marginal rate earned if lending slows? • The impact of loan growth on earnings given our liquidity. (How much is excess cash earning now? What would borrowing costs be to fund growth? What would it cost to raise deposits to fund growth?) • How much must volume grow to raise the yields on an average basis over 1-2 years? • Whether raising loan rates and winning fewer loans would provide a better marginal rate of return. Example: Should we reduce loan rates to regain loan volume? By Dave Koch, Abrigo
2. Use Limited Liquidity Efficiently To Generate Maximum Earnings Potential Consider: • All loan growth is not equal. What is the future of certain loan segments? • What other options are there (products/structure)? • Does our commitment to a particular business fit with our stated mission/vision (vs. are we doing this because we have always offered it or because our competitors are)? Evaluate: • Whether we are currently profitable in that line of business. • The cash flows vs. the risks of each option. • Whether the loan growth via origination generates a comparable or better return on assets vs. buying loans (participations). • Which option generates maximum earnings potential? Example: Evaluate whether to originate auto loans vs. buy auto loans. 3. Have a Strong Growth and Cost Plan With Segmented Deposits Consider: • Are all deposits created equally? • Is raising deposit rates to raise funding the best option? • What other options should we consider? Evaluate: • Marginal cost of raising rates to attract new deposits. • What percentage of existing accounts would move to higher rates too, increasing cost but no new growth? • Would a wholesale fixed-rate credit advance cost less than raising deposit rates? • Stress test various levels to estimate the marginal cost of keeping rate-sensitive customers or members. Example: Should we raise deposit rates to raise funds? To make sure your financial institution’s strategies put you ahead of the competition while preserving liquidity and maximizing earnings, consider Abrigo Advisory Services. Get help with loan and deposit pricing, managing deposits or determining marginal returns on strategies across the balance sheet. Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits and optimizes risk. Abrigo’s platform centralizes the institution’s data, creates a digital user experience, ensures compliance and delivers efficiency for scale and profitable growth. Make big things happen. Get started at www.abrigo.com. NEBRASKA INDEPENDENT BANKER 13
Since [the failure of SVB], ICBA has been the sole national voice representing community banks exclusively to ensure they would not have to pay for the mistakes of large banks. CHECKS & BALANCES SVB: One Year Later By Anne Balcer, Senior Executive Vice President, Chief of Government Relations and Public Policy, ICBA I t’s been one year since Silicon Valley Bank (SVB) collapsed, followed by Signature Bank just days later, shaking the financial world and leaving community banks to manage the aftershocks. Since that time, ICBA has been the sole national voice representing community banks exclusively to ensure they would not have to pay for the mistakes of large banks. And it’s a community bank success story. When the FDIC board of directors voted in favor of a special assessment to replenish the deposit insurance fund in November, it included an ICBA-supported exemption for most community banks. ICBA’s response to the SVB failure is a lesson in successful crisis management and advocacy, with ICBA and community bankers working to limit the impact on community banks and ensure their continued strength and viability. Let’s look back at how that victory was won. 14 NEBRASKA INDEPENDENT BANKER
Immediate Response SVB failed on Friday, March 10, 2023, while community bankers were gathering in Honolulu for ICBA LIVE. This failure became the second-largest bank failure in U.S. history. Signature Bank, which held $110 billion in assets, failed two days later. The confluence of a banking crisis and the nation’s largest gathering of community bankers gave community bank leaders a unique opportunity to work together in person and in real-time to understand what was happening, formulate a strategy and set the stage for successful advocacy. The government didn’t announce that it would backstop all SVB deposits until Sunday night. It was a harrowing few days, with real worry that depositors would flee to banks perceived as too big to fail. That Monday, ICBA released a press release highlighting the differences between community banks and the nation’s largest banks, vehemently opposing the possibility that community banks could bear any financial responsibility for potential losses to the deposit insurance fund. Individual community bankers also took action. While bank customers worried as news reports and social media peddled fear, community bankers proactively reached out to their customers, providing reassurance that their banks remained safe and sound. They answered questions and relied on their reputations as trusted advisors. Not only did community banks not experience a deposit runoff, they grew their deposits in many cases. Regulatory Outreach Once the immediate crisis had passed, ICBA and community bankers took their advocacy directly to the FDIC. In April, ICBA President and CEO Rebeca Romero Rainey sent a letter to FDIC Chairman Martin Gruenberg, arguing that large banks should pay for the special assessment because they were the chief beneficiaries of SVB and Signature Bank’s receiverships and the FDIC’s decision to cover any losses of their uninsured depositors. Romero Rainey cited Gruenberg’s congressional testimony that the FDIC has discretion over the design and timeframe of special assessments under the Federal Deposit Insurance Act and how it was required to consider the types of entities that benefit from its actions. “Community banks and their customers shouldn’t have to pay for the miscalculations and speculative practices of large financial institutions like SVB and Signature,” Romero Rainey wrote. “If any assessment increase is warranted, it should be imposed on the institutions that pose the most risk to the DIF — not community banks.” ICBA had allies supporting this view. The Biden administration called on the FDIC to ensure the costs of replenishing the DIF were not borne by community banks. Supporting a Community Bank Exception When the FDIC released its notice of proposed rulemaking for the special assessments, it reflected ICBA’s viewpoint, exempting community banks with less than $5 billion in assets. It also tied an institution’s special assessment to its estimated uninsured deposits. ICBA applauded the FDIC’s proposal in a July 2023 comment letter, encouraging the agency to finalize the proposal as-is. Community bankers added their letters of support through an ICBA grassroots advocacy campaign. More than 80% of the more than 230 letters submitted to the ICBA came from ICBA members. This united chorus of individuals contrasted with groups representing larger institutions, which were neutral or opposed to the FDIC’s proposed approach for calculating the assessment. In the end, the FDIC board of directors voted 3-2 to finalize the rule with the ICBA-supported exemption for most community banks. ICBA was the only national trade association to call for a community bank exemption from the special assessment, and we will continue educating the public, policymakers and the press about the value of community banks. Anne Balcer is ICBA senior executive vice president, chief of government relations and public policy. NEBRASKA INDEPENDENT BANKER 15
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RECESSION PROOFING How To Benefit From a Lull in the Economy By Jim Reber, President and CEO, ICBA Securities Tell me if you’ve heard this: An inverted yield curve is highly correlated with a subsequent recession. And might I point out that the U.S. treasury curve has been upside down pushing two years now? Since we’re playing master of the obvious, let’s mention that the Fed — while not quite ready to start cutting rates — seems satisfied it’s laid the groundwork for inflation to get back in the 2% box that has proven elusive for several years. The press release following the Jan. 31, 2024, FOMC meeting stated, “The risks to achieving its employment and inflation goals are moving into better balance.” To be sure, the economy still seems to be chugging along quite nicely, thank you. As of this writing, there are “three” handles on several of the more critical economic barometers, which is a pretty good trick to pull off for an economy supposedly being dragged down by a restrictive monetary policy. Fourth quarter gross domestic product has run around 3.2%, the aforementioned inflation (the Fed’s preferred index is “Core PCE”) is sticky at 3.9% and unemployment boasts an impressively low 3.7%. This is not the stuff of an economy that’s about to run off a cliff (probably). On the Other Hand Of course, we’ve been getting a steady diet of not-so-positive news, too. The U.S. went blowing through the $1 trillion level in credit card debt in December 2023 and continues to pile onto that record. Delinquencies on consumer borrowings, particularly with the younger-aged cohorts, have NEBRASKA INDEPENDENT BANKER 17
been running hot as rates are at a generational high. And the mortgage finance industry is a story unto itself. We must go back to the start of the 21st century to see refinance activity this low, and even further to 1995 to see fewer purchase applications. That’s what 7% market rates will do to a borrower base whose average current mortgage is still well below 4%. That differential is the highest in history. Where this leaves us: If community bankers were so inclined, they could find options for their bond portfolios that would look pretty good if rates were to begin trending down. The good folks at Stifel have pointed out that there can be a number of months and even quarters after the final rate hike before the first cut occurs. “Higher for longer” may be in play for 2024, and we’ve seen this movie before. Remember: The last hike was last July. Plenty To Choose From Buyers can pick just how much recession-proofing they want to build into their balance sheets. Thanks to the inverted curve, something with a four- to five-year average life will look attractive compared to longer options. And since community banks’ interest rate risk positions have returned to near-balanced postures, most depositories can buy some fixed-rate items without aggravating their asset/ liability exposures. One of the simplest options is a deep discount callable agency. These were issued in 2020 or 2021 as rates were buried near zero. The bonds themselves can have minuscule coupons (1% or even less) and prices in the low 90s. Usually, their yields to maturity will beat non-callable “bullets” by 10-12 basis points (.10%- .12%), with an enormous upside if they ever get called, which is less than likely. In the mortgage-backed securities (MBS) space, attractive offerings are plentiful. One generic example: Seasoned 20-year pools with 2.0% coupons have been available around 89 cents on the dollar and will have around 30 basis points more yield than the discount callable mentioned above. As mentioned in this space before, there is now an unusually wide range of coupons and prices in the secondary market, so investors can pick and choose their favorite risk/ reward profile. Delayed Response As the comments from the Fed members so far in 2024 have pushed back the expectations of actual rate cuts into the future, so have market rates risen modestly this year. At the time of this writing, the treasury curve has added around 40 basis points (.40%) across the maturity spectrum. What this means for buyers is that there is still additional incentive to layer in some purchases into what seems to be the waning periods before a secular shift in the economic cycle. Unless, of course, the strength of the American consumer keeps producing “three” handles in triplicate. In this case, the long-anticipated recession would be on indefinite hiatus, and significant rate cuts a conversation for future periods. And that is something you perhaps haven’t heard before. Jim Reber (jreber@icbasecurities.com) is president and CEO of ICBA Securities, ICBA’s institutional, fixed-income brokerdealer for community banks. 18 NEBRASKA INDEPENDENT BANKER
THE POWER OF INQUIRY Leadership Success Through Asking Questions By Connie West, Gallup Certified Strengths Coach, Regional Vice President, The James Paul Group One often overlooked yet powerful tool in a leader’s arsenal is the art of asking questions. In the dynamic landscape of modern banking, effective leadership isn’t just about giving orders; it’s about fostering collaboration, driving innovation and empowering teams to achieve their full potential. One often overlooked yet powerful tool in a leader’s arsenal is the art of asking questions. Contrary to widespread belief, leadership isn’t about having all the answers; it’s about knowing the right questions to ask. Here’s how incorporating inquiry into your leadership style can lead to greater success for your bank. Primarily, asking questions demonstrates humility and openness. In an industry as complex and rapidly evolving as banking, no one person has all the answers. By asking questions, leaders signal to their teams that they value their input and expertise. This fosters a culture of inclusivity and encourages employees to share their insights, ideas and concerns freely. In turn, this can lead to more creative solutions, better decision-making and a stronger sense of team cohesion. Moreover, asking questions promotes critical thinking and problem-solving skills among team members. When faced with a challenge or opportunity, instead of simply providing solutions, leaders can prompt their teams to think critically by asking probing questions. This encourages employees to analyze the situation from different angles, consider diverse options and anticipate potential risks and opportunities. In doing so, teams become more adept at solving complex problems autonomously, which is crucial in a fast-paced industry like banking. Furthermore, asking questions helps leaders gain a deeper understanding of their team members’ strengths, weaknesses and motivations. By actively listening to their responses, leaders can identify individual talents and areas for development, tailor their leadership approach NEBRASKA INDEPENDENT BANKER 19
For leadership development or executive coaching, contact Connie West at The James Paul Group, cwest@jamespaulgroup.com or toll-free at (877) 584-6468. Your best employee talent and your customers will thank you! THE JAMES PAUL GROUP Enhancing the performance of your most valuable asset: your people! accordingly, and assign tasks and responsibilities more effectively. This not only maximizes employee engagement and satisfaction but also enhances overall team performance and productivity. In addition, asking questions promotes a culture of continuous learning and improvement. Effective leaders understand that knowledge is dynamic and that there’s always room for growth. By asking questions, leaders not only seek to expand their own knowledge but also encourage their teams to do the same. This cultivates a learning mindset within the organization, where employees are encouraged to seek out current information, challenge assumptions and embrace change. In the ever-evolving landscape of banking, this commitment to continuous learning is essential for staying ahead of the curve. Leadership success in banking is not just about having all the answers; it’s about asking the right questions. By incorporating inquiry into their leadership style, bankers can foster collaboration, promote critical thinking, gain deeper insights into their teams and cultivate a culture of continuous learning and improvement. So the next time you find yourself in a leadership role, remember the power of inquiry and ask away. SOCIAL ENGINEERING NETWORK MONITORING BY COMMUNITY BANKERS FORCOMMUNITY BANKS CivITas Bank Solutions was born from the needs voiced by community banks for affordable real-world technology and information security solutions. Anne Benigsen President David Philippi VP - Business Development Chris Tuzeneu VP – Information Security PENETRATION TESTING VULNERABILITY SCANS info@acivitas.com www.acivitas.com 20 NEBRASKA INDEPENDENT BANKER
NICB ENDORSED PARTNERS • Bankers Compliance Consulting — Dave Dickenson • Barret Graduate School of Banking — Memphis, Tennessee • Community Bankers Webinar Network — Financial Ed • Dell Computers • ICBA Securities — Jim Reber • ICBA Bancard • NICB-CBAK Liquidity Program • SHAZAM — presented last year at Area Meetings • Spectrum Financial — Fee Income with Credit Insurance Products/ Services, Identity Theft Program, Flood Determinations — Scott Votava • Travelers Insurance • UNICO Group — Diana Poquette ASSOCIATE MEMBERS 2024 • The Advantage Network • BancMac • Bankers’ Bank of the West • Bankers Compliance Consulting • Bankers Healthcare Group • Barret Graduate School of Banking • Bell Banks • BKD LLP • John E. Cederberg, CPA • Central States Health & Life Co. • CivITas Bank Solutions • Computer Services Inc. (CSI) • Cross Financial • D.A. Davidson & Co. • FIPCO — Compliance • Federal Reserve Bank of K.C. (complimentary) • FHLBank Topeka • FNB Omaha Correspondent Banking • FIPCO • First National Capital Markets • FPS Gold (Core) • ICBA Bancard & TCM Bank • ICBA Securities • ICBA • ITPAC Consulting LLC (IT audits) • Kirk Gross Company • Labenz & Assoc. LLC (CPAs) • Maple Street Inc. • Midwest Independent BankersBank • Modern Banking Systems • Money Handling Machines Inc. • NFP Executive Benefits • Perry, Guthery, Haase & Gessford PC LLO • Purple Wave Auction • QwickRate • RESULTS Technology • Scantron Technology Solutions • SHAZAM • Spectrum Financial • Taylor and Martin Appraisal Services • Travelers Companies Inc. • UMB Bank, N.A. • UNICO Group • United Bankers’ Bank Enjoy your association news anytime, anywhere. Scan the QR code to visit our online publication to stay up to date on the latest association news, share articles and read past issues. nebraska-independentbanker.thenewslinkgroup.org NEBRASKA INDEPENDENT BANKER 21
x www.fin-ed.info/nicb BANK TRAINING WEBINARS 5 - D E C 6 - D E C 6 - D E C 7 - D E C 1 2 - D E C 1 3 - D E C 1 4 - D E C 1 8 - D E C 1 9 - D E C 2 0 - D E C 2 1 - D E C Proper Repossession, Notice & Sale of Non-Real Estate Collateral Deposit Insurance Coverage & Calculation HELOC How-To In-Depth Commercial Loan Annual Credit Review Best Practices CECL... One Year In Elder Fraud Issues BSA for Officers & Directors Unpacking New Beneficial Ownership Guidance In-Depth Board Secretary: Documenting Minutes, Corrections & Disagreements Telephone Consumer Protection Act Compliance When a Depositor Dies: Next Steps 3 - J A N 4 - J A N 9 - J A N 1 0 - J A N 1 1 - J A N 1 6 - J A N 1 7 - J A N 1 8 - J A N 2 3 - J A N 2 4 - J A N 2 5 - J A N 3 0 - J A N 3 1 - J A N The Top 12 Credit Risks in Agricultural Lending Consumer Lending Collateral Considerations & Documentation 2024 Call Report Update & Top 10 Errors New Beneficial Ownership Rules: Updating Business Account Procedures Critical Timing Requirements in the Mortgage Loan Origination Process Advanced SAR Training: Reporting Beyond the Basics IRA/HSA Update: Including New 2024 Penalty-Free IRA Distribution Options BSA Risks in 2024: What's New & in the News? Regulations Affecting Instant Payments 2024 Compliance Outlook: What's on the Horizon? 2023 HMDA Submission Due March 1, 2024: Updates, Top Issues & Real-Life Examples The Beginning Security Officer BSA & New Beneficial Ownership Rules: Updating Policy & Procedures 22 NEBRASKA INDEPENDENT BANKER
1001 S. 70 Street, Ste 101 Lincoln, NE 68510 This magazine is designed and published by The newsLINK Group, LLC l 1-855-747-4003 Diana Poquette Account Executive 402.499.1011 dpoquette@unicogroup.com Financial Institution Bonds Property & Casualty Cyber Risk Directors & Officers INSURANCE FOR BANKS Financial Institution Bonds Social Engineering Extended Coverage Enhancements No Annual Forms Cyber Risk Updated Benefits and Enhancements Dependent Business Interruption Cyber Extortion Directors & Officers Broad Form With Regulatory Coverage 3 Year Policy Savings Employment Practices Liability Bankers Professional Liability Property & Casualty General Liability Commercial Property Umbrella Liability Workers’ Compensation COVERING ALL OF NEBRASKA, KANSAS AND MISSOURI
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