PAGE 9 EMERGENCY RENTAL ASSISTANCE PROGRAMS WILL PROVIDE SIGNIFICANT RELIEF BENEFICIAL TO MORTGAGE OWNERS LEGAL EAGLE SPOTLIGHT F E B R UA R Y 2 0 2 2
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INSIDE THIS ISSUE 02 06 18 22 Published for the Missouri Independent Bankers Association P.O. Box 1765 Jefferson City, MO 65102 573.636.2751 | miba.net Editor: Matthew S. Ruge Executive Director ©2022 The Missouri Independent Bankers Association | The newsLINK Group, LLC. All rights reserved. The Show-Me Banker Magazine is published six times a year by The newsLINK Group, LLC for The Missouri Independent Bankers Association and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of The Missouri Independent Bankers Association, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. The Show-Me Banker Magazine is a collective work, and as such, some articles are submitted by authors who are independent of The Missouri Independent Bankers Association. While The Missouri Independent Bankers Association encourages a first-print policy; in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at 855.747.4003. MADE IN THE USA
PRESIDENT’S MESSAGE Jack Hopkins Community Bank of Raymore “Going through the process improves communications among team members and can generate some incredible discussions. Over time the value of a planning process will bear fruit.” Strategic Planning What are two things at a minimum you need to know before pulling out of your driveway to go on vacation? 1. Where are you starting? 2. Where do you want to go? Aren’t those the same two basic things you need to know when you begin to develop a plan for your bank? Next, what do we consider? SWOT. Strengths, weaknesses, opportunities, and threats facing our bank. These things address how your bank interacts within its market. While this seems basic, sometimes we overlook the obvious as we go about our daily business. Some businesses have operated for years without a written strategic plan. I have heard business owners say their plan is in their head, or it can be summed up to make money. While that seems to work for some people, I have found that involving your team in a formal planning process makes it easier to achieve success. If you have a good written strategic plan, many decisions throughout the year become easy. A written strategic plan shared with the entire team also helps get everyone pulling in the same direction. Going through the process improves communications among teammembers and can generate some incredible discussions. Over time the value of a planning process will bear fruit. The rising importance of the bond portfolio Many bankers grew up in the business giving little thought to the bond portfolio. It was there to provide liquidity and pledging for public funds. Boy, has that changed. Liquidity in recent years has led to significant increases in our bond portfolios. We are now looking at the portfolio to contribute to earnings in a meaningful way. Average maturities have creeped out to reach for yield. Collaborating with a broker who can help you develop a strategy for your bond portfolio is critical. The days of buying whatever the salesperson called to sell you are long gone if you rely on your portfolio to generate earnings while also worried about asset-liability issues. We are potentially facing the perfect storm this year. Many of us have grown our bond portfolio during the last few years during low-interest rates. With interest rates expected to rise this year, losses may be common on our balance sheets, reflecting bond price decreases. No one said this was an easy business. ■ 2 | The Show-Me Banker Magazine
FROM THE TOP Robert M. Fisher Chairman of the ICBA “Let’s rediscover what it means to be community bankers. Let’s exercise our nimble natures to exceed customer expectations. Because as community bankers, it’s what we do.” @RobertMFisher Nimble. That just may be community bankers’ word of the year. Because during this time of continuous change, our agile natures are the key to our continued success. As we enter 2022, we are balancing low margins, high wages, too much liquidity and lack of loan demand, and we have our work cut out for us. But by releasing rigidity and giving our banks the space to adapt to the environment, we will unleash new opportunities. For example, fintech partnerships may allow us to offer services in ways we’ve not considered previously. Mergers and acquisitions in our markets may lead to opportunities to draw in new customers. Flush customer accounts may enable us to position wealth management services. Emerging options like cryptocurrency may warrant strategic consideration. The beauty is that opportunity is not one size fits all. Community banks have business models as diverse as the communities we serve, so there’s no silver bullet to answer all of our needs. That’s where thoughtful planning comes into play. We need to evaluate how we performed against our plans this past year. Where did we meet our budget? Where did we fall short? Why? We need to ask ourselves how that previous plan stood up and where there were innovative ideas that were put on the back burner due to COVID-19 or other factors. Then, the local market and economic trends can guide us in creating the right new products and services. Considering our communities’ needs is critical to our success as well as theirs. Beyond supporting our own bottom lines, taking the time to align resources and vision enables us to continue empowering our communities. And while in today’s environment, this may seem like a particularly daunting task, ICBA offers resources that can help. For instance, the ThinkTECH Accelerator brings to market the fintech solutions that will allow us to better serve our customers. ICBA Securities can help us find sound investment opportunities to keep our money working. ICBA Bancard can support us in keeping pace with evolving payments trends. And Community Banker University provides needed education to stay on top of our changing landscape. There’s no doubt 2022 will be a tough one, but with great challenge comes great opportunity. So, let’s set our missions to excel amid difficulty. Let’s rediscover what it means to be community bankers. Let’s exercise our nimble natures to exceed customer expectations. Because as community bankers, it’s what we do. ■ My Top Three ICBA helps community banks in many ways, but here are the three I plan to take advantage of this year: 1. ThinkTECH Accelerator cohorts 2. ICBA LIVE networking 3. ICBA Securities’ investment options Connect with Robert @RobertMFisher February 2022 | 3
Creative Planning provides a full suite of investment, tax, estate planning and trust services capabilities through our team of in-house CPAs, attorneys and CFP® professionals. We support you as you deepen client relationships and solve a wide range of financial challenges. We offer a simple and seamless process that is easy to implement and allows you to access our services only when you need them. If you’re ready for a new approach, it’s time to get Creative. Call for a complimentary guide and to schedule a consultation. We look forward to supporting you. Clay Baker, CFP® 314.882.6940 Clay.baker@creativeplanning.com Wealth management solutions for your community bank customers Broaden your services. Deepen client relationships. Enhance your bank’s reputation.
MIBA ENDORSED VENDOR CREATIVE PLANNING Creative Planning became an Endorsed Vendor of the MIBA this past December. We are pleased to welcome them and want to provide our members with a brief overview of their services. Creative Planning is one of the top independent wealth management firms in America, with over $75.6 billion in assets as of March 31, 2021. Located in Overland Park, KS, its advisors serve clients in all 50 states and abroad. Creative Planning provides a different approach to private wealth management. Their financial planningled approach considers your income and investments, retirement goals, tax situation to create a comprehensive financial plan that’s completely custom to your unique situation. Creative Planning provides its clients with a full team of skilled specialists to optimize client wealth. This team approach provides clients access to a variety of financial disciplines, such as Certified Financial Planner™ practitioners, CPAs, and attorneys, led by experienced wealth managers, all of whom are fiduciaries. ■ FACTS & FIGURES Over $100 billion in assets under management $100 50 34 Serves clients in all 50 states and abroad Operates 34 offices across the United States • An independent, fee-based RIA (Registered Investment Adviser) • Provides customized, comprehensive financial advice • Conducts business as a fiduciary • Structures fees transparently and competitively • Offers no proprietary or commissionable investment products • Delivers cost-and tax-efficient portfolios ONE TALENTED IN-HOUSE TEAM FOR YOU 305+ CFPs 75+ CPAS 45+ JDS To learn more about Creative Planning, please contact Clay Baker CFP® at 866-273-2848 or cpi@creativeplanning.com. February 2022 | 5
FLOURISH “[A] spirit of innovation and can-do attitude will serve you well this year, helping you remain ahead of the curve and address issues that arise.” @romerorainey Rebeca Romero Rainey ICBA President & CEO “Dream big. Start small. But most of all, start.” This sage advice from bestselling author Simon Sinek is the motivation we need to navigate the new normal of this new year. With the aftereffects of the pandemic still at hand, community banks face an unparalleled level of uncertainty. This is not just another year. We’re confronting historic margin compression, fee income attacks, employee recruitment challenges, and the list goes on. But as community bankers, we rise to the challenge by taking the next step forward. As the leaders of our organizations, what we do drives the path ahead. And as we prioritize where to start, we recognize it’s not about being bleeding edge. Rather, it’s about focusing on what we can do to better guide our organization in these new and different times. For instance, consider the partnerships that arose during the Paycheck Protection Program (PPP). Almost overnight, community banks nationwide launched new fintech relationships to meet the needs of their communities. From document collection to forgiveness tracking, you were able to think outside of the box to find the solutions that spoke to your bank’s internal infrastructure and customer-facing offerings. That spirit of innovation and cando attitude will serve you well this year, helping you remain ahead of the curve and address issues that arise. And you’re not in this alone. We are a community of community bankers, and we lean on one another. Whether it’s amplifying community bank voices on Capitol Hill or providing insights into what’s coming next, ICBA will be by your side to support you in education, advocacy, innovation and beyond. Our commitment to you remains steadfast as you navigate these times, and we invite you to engage on new levels with us and to explore the power of the shared community bank story. Because when we come together, we are stronger than when we are apart. Collectively, we brainstorm what’s next, determine how to tackle problems in our path and lead. From our shared vision grows an infectious enthusiasm that inspires us all to excel. 2022 is about forward momentum. So, let’s explore new ways to connect ourselves and our teams with colleagues and expand our spheres of influence. Sign up for ICBA LIVE, spend a day at theThinkTECH Accelerator, enhance skillsets through Community Banker University or connect with colleagues at a state banking convention. No matter what we choose, let’s make sure we take the steps to set our dreams in motion. Where I’ll be this month: I’ll be in Little Rock, AR, to kick off the fourth year of ICBA’s ThinkTECH Accelerator. Connect with Rebeca @romerorainey. ■ 6 | The Show-Me Banker Magazine
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Congressman Blaine Luetkemeyer Missouri’s 3rd Congressional District “Politics will never be completely removed from regulation, no matter who is in power. Positions appointed by the president and confirmed by the senate will naturally be affected by the party in control of the process.” A VIEW FROM THE CAPITOL As 2021 was coming to an end, you could feel the excitement of Christmas approaching. Many of us were looking forward to spending time with our families, and our kids (or grandkids in my case) were excited to see what surprises Santa had in store for them. My wife Jackie always ensures our grandkids make out okay, and I hope you and your families were treated well at Christmas too. It turns out holiday surprises weren’t only being cooked up at the North Pole. In D.C., newly appointed regulators, who prefer getting drunk on power over eggnog, decided nothing says surprise like an unethical coup and trampling of 100 years of precedent. Right before Christmas, with the help of Martin Gruenburg —who was an absolutely horrible Chairman of the FDIC under President Obama and is still a member of the board — CFPB Director Rohit Chopra attempted to usurp authority from the FDIC and dictate the policies of both agencies. Mr. Chopra tried to completely circumvent the FDIC Chairman and Board of Directors, and announced the Bureau would be launching a review of bank merger policy without the consent of Chairman McWilliams. The FDIC promptly denounced this unprecedented statement in a press release. This blatant disregard for another agency’s authority and overstep makes me fearful for what else is to come from the CFPB under Mr. Chopra’s heavy-handed leadership. It is a very sad day when an independent agency undergoes unchecked partisan and political attacks. And unfortunately, Chairman Jelena McWilliams has since announced her resignation from the FDIC, putting it even further at risk of being controlled by a person who was neither nominated nor Senate-approved. Raised under a socialist regime, Ms. McWilliams has an especially deep appreciation for capitalism, and economic freedom and these ideals were constantly at the forefront of her leadership at FDIC. Her departure is a major loss for our country and American’s economic system, and I highly doubt this Administration has the desire or political will to appoint another person who defends democracy and economic liberty as fiercely as Ms. McWilliams. In response to this stunt from Director Chopra and Gruenberg, I have introduced a bill to provide more accountability and transparency at the agency. The FDIC Board Accountability Act would remove the CFPB Director from the FDIC Board of Directors and put term limits in place for FDIC Board of Directors. Mr. Gruenberg’s seemingly unending term on the board and desperation to regain power at the FDIC was instrumental in Director Chopra’s failed power grab. It also perfectly illustrated how brazen certain people will become when they can sit in a position for a decade after Senate confirmation. I don’t have to tell bankers how much power the CFPB director has. Dodd-Frank granted the position unprecedented control over the American financial system.The last thing the director needs is a board seat at another agency.The FDIC’s mission is far too important to be tainted by the crusades of a separate agency that I believe was designed by President Obama and ElizabethWarren to carry out political retribution under the guise of “consumer protection.” In the absence of replacing the CFPB director with a fiveperson board, which is long overdue, the least that should be done is prevent the director from interfering with safety and soundness requirements like liquidity and capital for America’s financial institutions.That’s exactly what my new bill would do. It removes the CFPB director from the FDIC Board and eliminates never-ending board tenures for forgotten regulators likeMartin Gruenberg. Politics will never be completely removed from regulation, no matter who is in power. Positions appointed by the president and confirmed by the senate will naturally be affected by the party in control of the process. But we can and should create a balance so no matter who sits in the White House or Congress, the agencies’ focus remains on the health and safety of the financial system. After all, a safe, efficient financial system is the only true way to ensure financial protection for U.S. consumers. ■ 8 | The Show-Me Banker Magazine
Matthew Wine Spencer Fane LLP “Owners of rental properties, property managers, and tenants should all be aware of the benefits available to ensure that unnecessary collection activities and expenses, as well as eviction proceedings, are avoided.” LEGAL EAGLE SPOTLIGHT Emergency Rental Assistance Programs Will Provide Significant Relief Beneficial to Mortgage Owners The COVID-19 pandemic has strained many parts of the global economy over the last two years. Among those most affected are individuals who lost jobs (temporarily or permanently) and had difficulty paying rent on time, causing a ripple effect throughout the rental industry. Landlords have, in turn, struggled to meet mortgage payments, developers have struggled to satisfy investment requirements with respect to affordable housing projects, and market-rate developments may struggle to attract and retain tenants who can meet the market rental rates. Add to this the moratorium on evictions issued by the Centers for Disease Control for a period of time and similar moratoriums enacted by other jurisdictions, and there grew a significant gap of rents owed by tenants that remained uncollected by landlords. On Dec. 27, 2020, Congress passed the Consolidated Appropriations Act, 2021, Public Law 116-260, Section 501(a). This Act provided $25 billion for the U.S. Treasury to establish the Emergency Rental Assistance program to make payments directly to States and local governments with more than 200,000 residents and provide financial assistance to eligible households unable to pay rent and utilities because of the COVID-19 pandemic.Then, March 11, 2021, Congress passed the American Rescue Plan Act of 2021, Public Law 117-2, Section 3201, which provided an additional $21.55 billion for the Treasury to make additional funds available for the program. In an effort to combat unnecessary evictions and still permit landlords to receive the rent they are entitled to, eligible states and local jurisdictions have established their own jurisdictional programs to provide these funds, available not only to tenants applying for assistance directly but in many cases, landlords are eligible to apply on behalf of the tenants to seek eligible benefits. These benefits are paid directly to the landlord whenever possible to satisfy eligible rental expenses. To obtain the benefits, tenants and landlords cooperate Matthew Wine is an attorney at Spencer Fane LLP in the firm’s Overland Park, Kansas, office. He focuses on commercial and residential real estate development, tax credit incentive financing related to commercial and affordable housing developments, state and federal regulatory counseling, financial services, and general construction and development matters. Matthew can be reached at mwine@spencerfane.com. in the process, including submitting an application (paper or electronic is usually available). Next, they certify the legitimacy and accuracy of the underlying application and provide supporting information required by the jurisdictional programs, such as leases, proof of property ownership, personal identification, banking information, etc. Benefits can include eligible rental arrears, utility expenses, certain other miscellaneous expenses and fees, and a limited amount of forward rent if tenants remain unable to meet their rental expenses. The program does have certain limitations, which include, but are not limited to, limits on total assistance paid that cannot exceed 12 months of arrears or 15 months in total (including any eligible forward rent), benefits cannot be duplicated with funds from the program or other eligible programs, and landlords must agree to halt and not bring eviction proceedings for failure to pay rent against tenants for such period of time as assistance has been paid. Owners of rental properties, property managers, and tenants should all be aware of the benefits available to ensure that unnecessary collection activities and expenses, as well as eviction proceedings, are avoided. States and eligible local governments may also be working with sub-grantees such as local nonprofits to try and more directly make benefits available to individuals who may not otherwise be aware of the jurisdictional programs or how to access the benefits. The U.S. Treasury website links to applicable state programs so tenants and landlords can investigate the appropriate programs and seek benefit assistance where appropriate. ■ February 2022 | 9
MISSOURI BANKER MEET YOUR Name: Bryce Cohen | Title: Vice President/Commercial Loan Officer Bank Name: First Midwest Bank Where are your main bank and branches located? What is the market like? First Midwest’s main bank is located in Poplar Bluff with branches in Columbia, Puxico, Piedmont, Van Buren and Greenville. We also have a sister charter with branches in Dexter, Sikeston, Cape Girardeau, Jackson and soon Springfield. We’ve been fortunate that the majority of our markets are constantly growing, with new development and an increase in population. This growth also promotes an increase in bank competition. There are now 10 or more banks in most of the markets we serve. What is something unique about your bank? Our bank has done an excellent job at long-term employee retention. As a family-run business, it has always been important to treat employees like family. This cultural aspect has led to multiple people reaching 50-plus years of service with the organization and many others making First Midwest their career home. The long-term dedication to the bank is also rewarded with our retirement plan, the ESOP, a benefit plan that gives workers ownership in the company. How did you get started in the banking business? While attending the University of Missouri, my girlfriend (now wife) told me about a teller position at her family’s bank. I was in desperate need of a part-time job. First Midwest Bank had recently opened a new branch in Columbia; the hours were perfect for a college student, although I didn’t know the first thing about banking! What prompted you to continue the family tradition & join the bank? Many can relate to the uncertainties of career choice after college. To be honest, I never saw myself being a banker long-term. This changed very quickly once I began my commercial lending role. I significantly enjoyed creating new relationships and being heavily involved in community development. Joseph McLane, my father-in-law and CEO of First Midwest for over 25 years, played a significant role in my decision as well. He truly created a workplace with an amazing atmosphere and stands as a model banker for anyone in the industry. What is the most important thing you’ve learned from this career so far? One aspect that sets banks apart from other businesses is that personal finance is extremely private information. As a result, the relationship strength and trust with our customers are vital to community banking. I’ve learned so many things from this career, but the emphasis on building relationships has been the most important by far. Tell us about the bank’s community investment efforts. First Midwest has always strived to be a major staple in the communities we serve. This is achieved by supporting local charities, volunteering and sponsoring local initiatives. We have also partnered with other local banks to help build manufacturing facilities. As a result, hundreds of new jobs are created, immediately benefiting the entire community. What is the bank’s biggest challenge in internet banking/ mobile banking? The biggest challenge is operating in times of constant technological change. New and more efficient technology is being rapidly produced, and the bank must stay ahead of the curve. This digital era with the internet and mobile banking has caused a permanent change in customer behavior, making these services a top priority. With markets full of good competition, if we don’t continue adding technological value, other banks will! What’s your favorite thing about your bank/banking in general? Banking can play a pivotal role in the success and growth of the businesses we serve. As a loan officer, I can see the beneficial impact firsthand. More specifically, my favorite thing about First Midwest is our loan approval process. With a vast range of experienced banking professionals, loan decisions are executed quickly. This speed has differentiated us from the many competitors in our markets and keeps customer retention high. If you didn’t have a career in banking, what other career would you choose? One of my hobbies has always revolved around computers. Their capabilities seem to grow stronger every year and become more vital to our everyday lives. If it weren’t for my incredible banking position, I would probably learn computer coding and find a career in that direction. ■ 10 | The Show-Me Banker Magazine
MIBA LOBBYING REPORT Andy Arnold Arnold & Associates In my last writing, I discussed Congressional redistricting and the musical chairs that would occur due to Senator Roy Blunt’s announcement he would not seek re-election in 2022. This article discusses House and Senate redistricting and the scramble that process will set in motion. It doesn’t appear the House and Senate bi-partisan redistricting commissions will come to a consensus on redistricting plans. But the House Commission agreed on 112 of the state’s 163 House districts and submitted two maps. The Senate Commission did not agree, has not submitted a map, and appears deadlocked. The Missouri Constitution calls for the submission of a single map, not two maps, as submitted by the House Commission. That means a Judicial Commission comprised of six appellant judges will be formed to draw House and Senate District lines for the 2022 elections. Filing for a House or Senate office opens February 22 and closes March 29, and we may not know the makeup of the districts until candidate filing is underway. This gives incumbents in safe House and Senate Districts an overall advantage if their current district doesn’t change much. However, in viewing the 112 House Districts the House Commission agreed on, several pit incumbents against one another, which normally leads to one of the candidates running for higher office. With 17 Senate seats up for re-election this cycle, we anticipate several Senate primaries, especially on the Republican side. ■ Call me at 573.268.5172 Based in Columbia, Mo., covering Missouri and Kansas Bill Lloyd, Jr. Together, let ’s make it happen. Member FDIC 33299 We do not reparticipate any loans. Leverage our large lending capacity, up to $20 million on correspondent loans. Our lending limits are high enough to accommodate what you need, when you need it. Why choose Bell as your bank’s lending partner? Commercial & ag participation loans Bank stock & ownership loans Bank building financing Business & personal loans for bankers February 2022 | 11
CASEY HOPKINS A BACKGROUND ON Recently, MIBA sat down with newly elected board member Casey Hopkins to gain insight into his life and work in community banking. He was also recently appointed president of the Bank of Old Monroe. While attending college, Casey accepted an internship with Edward Jones and then took a job with them after graduation. He worked on the investment side of finance before exploring the lending side of banking. His best friend from high school told him there was an opening at Bank of Old Monroe, and after three bank leaders interviewed him and extended an offer, he became part of their team. Casey has a B.A. with an emphasis in finance from Maryville University in St. Louis, Missouri. He is also a graduate of Barret School of Banking in Memphis, Tennessee. He has 21 years of experience in finance, 16 of which have been as a banker. Casey credits many people with having a significant impact on his career, including customers, friends, family and coworkers. Customers have given him business opportunities and taught him important business lessons. Through the years, they have discussed everything from their business operation to philosophies on managing people and how he can be better in his role at the bank. He also has great friends who are successful business owners, and they continue to challenge him to think differently and continue to improve each day. Mike Miller, Bank of Old Monroe Senior Vice President, helped hire Casey and has been an outstanding mentor. He has taught Casey about lending and community banking. Dale McDonald, the CEO, also works closely with Casey and has helped grow his knowledge of the operational side of the business while teaching him how to manage at peak performance levels and provide excellent customer service to clients. Casey’s family is his most important influence, and continues to have the largest impact on his career. His wife and three daughters give him purpose and support in whatever he’s involved with at the bank or through volunteer opportunities. Each day, Casey has the opportunity to work with customers and coworkers. He prides himself on building strong relationships and coaching them on how to achieve their goals. The most rewarding times in his career are when customers and coworkers meet or exceed their goals. Casey said, “MIBA allows a platform for community bankers to engage and build trusting relationships to ensure we are around to serve both now and in the future. MIBA offers many beneficial educational opportunities and has a lobbying side to 12 | The Show-Me Banker Magazine
keep community banks alive. In addition, MIBA provides banks affordable quality educational opportunities to help us stay current on changes in banking regulation or trends.” Bank of Old Monroe’s former president and CEO, Darrell Harke, recently retired. Dale McDonald took on the role of CEO, and Casey was promoted to president. Dale McDonald thought it would be beneficial for Casey to join the MIBA board and get involved. Casey said, “I’ve attended MIBA functions for quite some time, but joining the board and having a seat at the table is an exciting opportunity for my career. I look forward to getting involved and working with other bankers who share my passion for community banking and serving clients.” Casey already serves on other local boards. He is familiar with the commitment of time and talent necessary to be an asset to the board. He said, “I am eager to get involved in MIBA and help the association in any way that I can. I want to ensure that community banking will always have a place in our communities. Initially, I plan to learn more in-depth about the MIBA board and where I can support their mission best. Once I get more involved in the meetings and organization, I know I will find a space to help. I’m excited to get involved and serve.” As Casey considered the pandemic and banking, he said, “I think the long-term impact is yet to be determined, especially from a balance sheet standpoint. The pandemic forced us to look at banking differently and work more intentionally on our webbased applications, creating the most efficient way for customers to communicate with us in whichever medium they feel most comfortable. In addition, it made us utilize staff more efficiently, which made our internal operations better. As a result of the pandemic, people value relationships and having the opportunity to speak to someone they trust more than ever. I think it allowed community banks to get in front of a new pool of customers who had never thought about switching until their bank was not accessible. Given the amount of government intervention, we are still waiting to see the financial consequences the pandemic will have on our customer base and finance in general. The one banking area that I believe was accelerated due to the pandemic was technology and our inability to be with clients in person. We were forced to find alternate ways to create a service culture and be available to our customers via technology.” Casey has learned three valuable lessons he shares with those he mentors: 1. Be kind and listen. 2. Over time, hard work with a pure heart leads to great success. 3. You never know your impact on people around you, but remember that everyone is always watching. Casey and his wife, Holly, have been married 16 years and have three daughters: Landry (14), Reese (13) and Bella (10). He spends time with his family coaching sports and watching his daughters compete, and he also enjoys traveling to warm places to play golf and be with friends and family. Casey also volunteers for the Mercy Health Foundation, Community Opportunities, and the Troy Chamber of Commerce. Casey’s favorite quote is, “Time wasted is lost forever.” He said, “The minutes we waste today are gone for a lifetime. Make each day count and spend your time intentionally and wisely.” As Casey reflected on his work, he said, “Being a servant leader is at the forefront of my mind whenever I enter the workplace. That, coupled with the fact that I am blessed to work for a bank whose board and leadership is rooted in integrity and humility, makes my professional experience particularly rewarding. Regardless of what happens at an organizational or structural level from a regulatory or political perspective, I will continue to provide value-added opportunities at the Bank of Old Monroe and MIBA. It excites me to work alongside professionals who truly embrace the fundamentals of community banking, and it gives me hope that we will prevail collaboratively regardless of the fiscal or political climate we may encounter.” ■ Casey credits many people with having a significant impact on his career, including customers, friends, family and coworkers. Customers have given him business opportunities and taught him important business lessons. February 2022 | 13
2021 MIBA PAC HONOR ROLL Note: personal or corporate campaign contributions to any PAC are not deductible in any amount for federal tax purposes. PRESIDENT’S FAIR SHARE LEVEL $10 per Million in Deposits up to 250M Cap • 1st Advantage Bank, St. Peters • Adrian Bank • Bank of Advance • Bank of Iberia • Bank of Louisiana • Bank of Old Monroe • Bank of St. Elizabeth • Bank of Salem • Blue Ridge Bank & Trust, Independence • BTC Bank, Bethany • Community Bank of Pleasant Hill • Community Bank of Raymore • Community State Bank of Missouri, Bowling Green • Exchange Bank of Missouri, Fayette • Exchange Bank of Northeast Missouri, Kahoka • farmbank, Green City • Farmers & Merchants Bank, St. Clair • First Independent Bank, Aurora • First Missouri Bank, Brookfeld • Jonesburg State Bank • Meramec Valley Bank, Ellisville • Metz Banking Company, Nevada • Midwest Independent BankersBank, Jefferson City • New Frontier Bank, St. Charles • Northeast Missouri State Bank, Kirksville • Peoples Bank & Trust Co., Troy • Peoples Bank of Altenburg • Peoples Bank of Wyaconda • Peoples Savings Bank, Hermann • Bank of Crocker • Chillicothe State Bank • Farmers State Bank, Cameron • Silex Banking Company • State Bank of Missouri, Concordia • The Callaway Bank, Fulton SILVER LEVEL $200-$399 INDIVIDUAL GOLD LEVEL $400-$749 • Bank of Monticello • Commercial Bank, St. Louis • Community Point Bank, Russellville • Legends Bank, Jefferson City Contributors to the MIBA Political Action Committee are recognized for their generosity on the Association’s website and at the MIBA Annual Convention and Exhibition. Different levels of contribution have been set to recognize supporters of our Political Action Committee fund and to make the Association’s membership more aware of this important facet of our work on behalf of the political agenda of community banks across Missouri. • Bank 21, Blue Springs • Mid-America Bank, Jefferson City • United State Bank, Lewistown PLATINUM LEVEL $750 and up • Preferred Bank, Rothville • Regional Missouri Bank, Marceline • Security Bank of the Ozarks, Eminence • Sherwood Community Bank, Creighton • The Bank of Missouri, Perryville • The Missouri Bank, Warrenton • Town & County Bank, Salem • Chuck Brazeale, Paris 14 | The Show-Me Banker Magazine
FROM YOU NEWS Mid America Bank is pleased to announce Michelle Abbott has joined the Bank as VP Treasury Management Officer. In this role, she will be responsible for sales, administration and development of the Bank’s treasury management products and services, as well as digital banking solutions. Michelle brings 24 years of banking experience to Mid America Bank, having held a variety of positions — from teller to assistant branch manager — over the years. Most notably, the last 15 years of her career were spent as the Electronic Banking Coordinator for First Mid Bank & Trust, formerly known as Providence Bank. Michelle holds a Bachelor of Science Degree in Business Administration from Lincoln University. She and her husband Steve reside in Wardsville, where they are members of St. Stanislaus Catholic Church. Outside of work, she enjoys spending time with family and friends. ■ Friendship Bancshares Inc., the parent company of Mid America Bank, has announced the completion of its acquisition of the Bank of St. Elizabeth. “We are thrilled to close the acquisition of the Bank of St. Elizabeth,” commented Mark Luebbert, Chairman of Friendship Bancshares Inc. and President & CEO of Mid America Bank. “We are very excited about the linking of two great local and longstanding banks with common ownership,” Luebbert further added. The acquisition brings together the history of two great local banks that began in 1914, just a mere 15 miles apart. The acquisition was announced in the fall of 2021, with plans to merge the two institutions in late 2022. Additional information will be provided to clients in the future about any changes affecting them. In the meantime, current clients of both institutions are encouraged to verify that their contact information is up-to-date and correct. “We’re looking forward to welcoming everyone to our organization in late 2022, once integrated, and we look forward to a bright future together,” closed Luebbert. ■ The Board of Directors of Adrian Bank is pleased to announce the following: Cary R. Six has been named the new Chairman of the Board, effective Jan. 1, 2022. Mr. Six will continue his duties as Chief Executive Officer of the Bank. He has been with Adrian Bank for more than 17 years and held various officer positions at the bank over that time. Mr. Six is filling the Chairman position vacated by the retirement of Alan Marr, who served as Chairman of the Board since 2018 and had been with the bank for 40 years, most recently serving as Executive Vice President. In addition, Debbie Umstattd has been named a director of the bank, filling an open position on the board. She previously served as Secretary of the Board since 2005, as well as being an employee of the bank since 1982. Ms. Umstattd will also continue to serve as a Senior Vice President of the Bank overseeing loan operations and financial reporting duties. The Board Secretary position will be filled by Christie Bunch. She has over 15 years of community banking experience and will continue to serve as Vice President of the bank, working in compliance and operations. Danny Milligan has also retired from the bank as of Dec. 31, 2021. He was the lead Agriculture Lender of the bank and an Executive Vice President. He had been with the bank for over 35 years. Mr. Milligan will retain his seat on the Adrian Bank Board of Directors. ■ Mid America Bank Hires Abbott as VP Treasury Management Officer Mid America Bank Acquires Bank of St. Elizabeth Adrian Bank Announces Board Changes February 2022 | 15
Affordable Housing Grants Dec. 13, 2021, FHLB Des Moines awarded more than $11.8 million for 19 building or renovation projects in Missouri. Local housing organizations will build new houses and renovate existing homes and rental properties. The grants are part of its 2021 Competitive Affordable Housing Program awards and will benefit more than 540 families and individuals. Appointments and Reappointments to the Affordable Housing Advisory Council FHLB Des Moines has an Affordable Housing Advisory Council that makes recommendations to its board of directors about meeting district needs for affordable housing and community economic development. The district includes 13 states and three territories. The council appointed or reappointed five members to the advisory council for a three-year term that began Jan. 1, 2022. Michael Akerlow (Reappointed) Mike was first asked to fill an open position in 2020. He has now started his first full term on the council. Mike is the CEO at the Community Development Corporation of Utah, where he oversees the acquisition, development, and rehabilitation of single- and multifamily housing. He is also a member of the National Association of Housing and Redevelopment Officials. Mike has a B.A. in English from the University of Utah and an M.S. in real estate development from Columbia University. Kevin Bryant (Appointed) Kevin has been asked to represent Missouri on the advisory council. He is the president of Kingsway Development LLC and the CEO of Conversions Global Marketing. For the last 24 years, Kevin has been involved in almost every part of commercial real estate and urban planning. He has Master Development rights to more than 207 prime acres of St. Louis real estate, and he has revitalized properties that were vacant or underused. Many of Kevin’s St. Louis projects have supported equitable development in the region. For example, he created a mixed-use office building for entrepreneurs in an abandoned warehouse and was also involved in constructing a 200-unit market-rate apartment building. Kevin has a B.A. in advertising from the Art Institute of Pittsburgh. Juel Burnette (Appointed) Juel has been asked to serve as an at-large advisory council member representing Natives. He is a branch manager at 1st Tribal Lending, the teammanager for HUD 184 mortgages, and has served Indian Country for 25 years in the mortgage and banking industry. His work supports Native homeownership and helps Tribes, Tribal Housing Authorities, and tribal members. Juel is an enrolled member of the Rosebud Sioux Tribe. He graduated from Todd County High School on the Rosebud Indian Reservation and attended the University of South Dakota and Sinte Gleska University. Robert Peterson Jr. (Reappointed) Bob is now serving a second term on the advisory council. He is a multifamily housing and community facilities division manager with the Washington State Housing Finance Commission in Seattle, Washington. Bob has been with WSHFC for more than 18 years and has experience in affordable housing finance. He has a bachelor’s degree in business administration fromWashington State University and received an executive development certificate from Notre Dame’s Mendoza College of Business. Renee Stevens (Appointed) Renee has been asked to serve as an at-large advisory council member. She is the executive director of Open House Ministries in Vancouver, Washington, a Vancouver-based family shelter with a program to prevent poverty and homelessness by teaching and helping participants. Renee is a program graduate who started as a single mother with three children. She became a nighttime security officer for OHM and advanced until she became the director in 2017. She works with donors and community partners and is a leader and mentor within the program. Renee has a B.A. in human development fromWashington State University in Vancouver. She also has A.A. and A.S. degrees from Clark Community College in Vancouver. ■ FROM YOU NEWS 16 | The Show-Me Banker Magazine
BOARD MEETING December 13-14 THANK YOU TO OUR SPONSORS The Annual December Board Meeting was held on December 13 and 14 at the MIBA Headquarters in Jefferson City, MO. The members were able to meet on the latest topics and also celebrate the Holiday season. Thank you to MIBA’s newest Endorsed Vendor, Creative Planning, for Sponsoring the event. February 2022 | 17
In today’s world, every business is an IT business. Yes, even your bank. That’s why it’s more important than ever to manage your information technology well. But there are two sides to the IT coin. At JMARK, we call these the operations of IT and the business of IT. Both must be handled with strategic intention. Operations of IT: This is defined as the dayto-day delivery of IT services that ensures an organization can maximize its technology investment so people can maximize their productivity. This is accomplished through help desk services; security; server, network, and workstation management; backup and business continuity strategies; application and data management; patch management; firmware; and vendor update management. Business of IT: This is defined as the strategies that ensure technology design meets the mission of the organization and aligns those outcomes with the budget and lifecycle management plans. It should result in appropriate investments to protect the organization from risks associated with underspending, wasting of resources, and overspending. By properly aligning design, resources, and capabilities, your technology will advance your bank toward its objectives. In this article, we’ll focus on the business of IT. Make sure you’re managing this side of the coin well by building the following eight actions into your operations: 1. Align IT with the strategic business plan. IT should support and complement your bank’s business plan. For many organizations, IT is seen as a static tool, not a means to achieve strategic objectives. However, in 2022, this is non-negotiable. Achieving your goals means capitalizing on how technology can augment everything you do. 2. Plan the lifecycle for every piece of hardware and software. When a component goes into usage, your bank EIGHT ESSENTIALS TO MANAGING THE “BUSINESS” OF IT By Thomas H. Douglas, JMARK 18 | The Show-Me Banker Magazine
should know when it will be removed. Depending on the technology, this can be a three, four, or five-year cycle. Doing this helps align the budget with amortization schedules. JMARK recommends having a five-year rolling budget for all IT components. This should include all hardware assets, warranty management, software renewal and subscription fees, software upgrades and maintenance fees, labor costs (internal or outsourced), data center and hosting costs, communications costs (internet), power management, etc. Nothing that is known or anticipated should be left out. 3. Increase your IT budget by 3% to 5%per year for the next few years. This is important because of the increasing sophistication of IT and securitymanagement and increasing regulation. Frankly, it is gettingmore challenging tomanage IT; therefore, costs are increasing. However, they should not be increased at a faster pace than the gross margins of your business. 4. Establish spending benchmarks against banking industry standards. Best practice in the financial industry sets the typical technology spending range between 2.5% and 7% of an organization’s operational budget. This variance is based on the sophistication of the business, compliance requirements, and growth plans. 5. Include training plans. Most organizations only utilize around 30% of their applications’ capabilities. With robust training, you can bump that to 75% or more. This drives efficiency and profitability and often removes duplicative applications from the environment, reducing the complexity and costs of IT. 6. Develop business continuity and disaster recovery plans. These should be aligned with the expectations of your institution’s board of directors. Most businesses do not have clarity between the IT structure and its leadership. Consequently, senior leaders may believe that recovery time after a disaster is less than one day, when in reality, it may be closer to 14 days. Such gaps between reality and expectation create massive pain and frustration throughout the business. They can even lead to business failure when lack of alignment leads to ill-informed business plans. 7. Simplify your environment. Simplification is the ultimate sophistication. A common tendency is to over-engineer and overbuy, making a network more complicated than it needs to be. Right-sizing the environment can decrease cash requirements, remove overspending, and reduce the complexity of an environment, all of which lowers IT management costs over time. 8. Invest in research, development, andmarket management. Most businesses need a dedicated group of people who are paid in part or in full —depending on the size of the bank and local market — to focus their energy on research and development and knowing the market. Every day, innovative organizations develop new applications, capabilities, delivery methods, and other breakthroughs to help your bank. These solutions can be the difference between keeping up with the competition, leaving the competition behind, or being wiped out by a disruptive new entrant in your industry. These are the essentials for properly managing the business of IT. Of course, this is a very high-level overview of these actions. One of the most significant advantages of working with an experienced managed services provider is they can bring experience to the table in helping you stabilize your efforts in these areas so you can take the next step and make your technology a strategic advantage. ■ If you’d like to learn how these practices can be carried out in your specific bank, please reach out to Tom Douglas at Tom@JMARK.com. Establish spending benchmarks against banking industry standards. Best practice in the financial industry sets the typical technology spending range between 2.5% and 7% of an organization’s operational budget. This variance is based on the sophistication of the business, compliance requirements, and growth plans. February 2022 | 19
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