AU G U S T 2 0 2 2 PAGE 16 45TH ANNUAL CONVENTION & EXPO
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 ST. LOUI S , MO • OVERLAND PARK, KS • OKLAHOMA C I T Y, OK • AUST IN, TX • DENVER , CO • NASHVI LLE , TN 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. COMMUNITY BANKING CONFERENCE AUGUST 24-26, 2022 ST. CHARLES, MO OCTOBER 18-19, 2022 OMAHA, NE TOGETHER... WE MOVE FORWARD Ben Pankonin Social Assurance The Currency of Trust Chris Kuehl Armada CI Economic Update Mitch Holtus KC Chiefs Announcer Leadership Amber Farley Financial Marketing Solutions Power of Internal Branding Go to our website for all the details and REGISTER today! WWW.MIBANC.COM/EVENT Featured Speakers MEMBER FDIC
INSIDE THIS ISSUE 06 08 22 26 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 02. President’s Message 04. From the Top 06. Flourish 07. MIBA Lobbying 08. A View From the Capitol 09. 2022 Scholarship Auction Winners 10. Meet Your Missouri Banker 12. A Background on Mitch Baden 16. MIBA 2022 Annual Convention & Expo 17. MIBA 45th Annual Golf Tournament 18. 45th Annual MIBA Convention & Expo 19. MIBA Endorsed Vendor Bankers Security 20. 2022 MIBA PAC Honor Roll 22. Why Hackers Want Your Computer 24. The Battle for Deposits is Heating Up: Are you Ready? 26. Diving into Digital Currency: What You Need to Know About Crypto 29. Dates and Events 30. Up with Coupons Larger interest payments can build a floor under your bond prices 32. New Associate Member August 2022 | 1
PRESIDENT’S MESSAGE Jack Hopkins Community Bank of Raymore “Looking backward, we have all made tremendous strides to improve productivity and provide more userfriendly experiences.” Management, Operations & Pre-Convention Management A good manager ensures his teammembers understand the goals they are trying to achieve and then lets the teammembers work together to accomplish the goals. The manager does not just walk away, though. If you were in the Army, you might remember the saying, “Inspect what you expect.” A manager needs to ensure the steps to accomplish the goals are being taken and take corrective action if needed. Another comment stolen from the Army is that your battle group is as strong as your NCO core. In bank terms, your bank is as strong as your supervisors and managers. Notice I did not mention “senior” managers, although that does help. Operations Operations are not something you wake up in the morning thinking about. We all take it for granted that everything will work well. If we fail in operations, we will not be in business for very long. The daily functions in operations of a bank have changed little in my 40+ years in banking, but how we perform those functions has changed dramatically. We no longer have dozens of people working in “bookkeeping.” We do not have people working in “proof and transit.” Most of those functions are done electronically today. We still have return items and overdrafts. They are just nowmanaged using a computer. Debit cards are a newcomer in the operations area. Fraud related to debit card activity and checking accounts now soaks up about onethird of our staff’s attention in operations. Ideally, we will continue refining our bank’s “operations” area to reflect how our clients want to interact with us. Unbelievably, this would not have been a discussion topic in banks not too long ago. With fintechs now going after our clients, we must think about how our clients want to interact with us, or we will become extinct. With labor costs rising quickly and availability questionable, automation is becoming more critical as we look at how we provide services. Many of us struggle with this as community bankers. We have prided ourselves on providing “personal” service. In general terms, do you think the younger generations are looking for something different than those of us older folks who value “relationship banking”? Looking backward, we have all made tremendous strides to improve productivity and provide more user-friendly experiences. Our bank has grown by more than $300 million (244%) organically in the last dozen years without adding any staff. This has been possible by using online account opening, mobile deposit, remote deposit, teller capture, teller recyclers, automating some of the account opening processes, etc. The only area where we have added staff is in our trust department. Pre-Convention Our annual convention is rapidly approaching. Please consider attending and consider sending some of your younger associates. Meeting bankers across our state and discussing their challenges and successes is a motivating experience. The convention also gives all of us a chance to see many vendors in one place. Unless you explore what is available to us, you will not know if there is a product or service available that will make your bank more profitable. ■ 2 | The Show-Me Banker Magazine
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.
FROM THE TOP Brad Bolton Chairman of the ICBA “Working through any difficulty or crisis at your community bank won’t be a walk in the park, but it may lead to an experience for which you’re truly grateful.” Connect with Brad at @BradMBolton My Top 3 Tips for a strong loan portfolio 1. Know your limitations in terms of expertise — and pass on loans that don’t fit. 2. Adhere to the “5 Cs of underwriting” (credit, capacity, character, collateral, conditions). 3. Manage loan portfolio relationships proactively after the loan is funded. As a community banker, you’re either going through a crisis or preparing for one. In the late 1990s and early 2000s, our bank faced a significant challenge around loan quality. It stemmed from two major factors: first, getting too lax in our underwriting, and second making too many concessions to build business. I was young in my career when this took place, but being part of that experience set the stage for how I lead today. It’s like throwing a rock into a pond when dealing with credit quality issues: The ripple effects are real, leading to issues in all areas of CAMELS (capital adequacy, asset quality, management, earnings, liquidity and sensitivity). And today, CAMELS are a main area of focus for our bank. In addition, weathering this storm exposed the importance of procedures. We brought in a consultant to help us enhance our loan policies, which are still in use today. In fact, we nowmanage our loan decisions by asking, “What would an independent third party do if they selected this file and tried to understand the decision?” and documenting accordingly. That mindset forces us to think through every decision critically. How we work with regulators also was firmly shaped by this experience. Building trust with examiners became so important that when I was promoted to senior lending officer in 2005, I made it my mission that they wouldn’t uncover a problem I had not already identified. When examiners came in, I told them upfront what the issues may be and how I was managing them. Over the years, that transparency has led to mutual trust and respect. Working through any difficulty or crisis at your community bank won’t be a walk in the park, but it may lead to an experience for which you’re truly grateful. In my case, we came out stronger, and when the 2008 crisis came along, we got through unscathed because we had already buttoned up our loan operations. So, as you read this month’s lending issue, I encourage you to consider what steps you can take to be stronger and better. Could you work more closely with your examiners, keeping your relationship manager informed of changes in the portfolio, even between examinations? Could you tighten up on business expansion? Is there education or training at ICBA Community Banker University that can help? Asking these questions may be hard, but I can attest to the fact that the answers will lead you to create an even better version of your community bank. ■ @bradmbolton 4 | The Show-Me Banker Magazine
WA = Weighted Average Nellie Szczech, EVP, Institutional Relationships nellie@bhgbanks.com • (315) 509-2637 BHGLoanHub.com/MIBA WA FICO: 737 WA Income: $290,000 Avg Loan Size: $147,000 WA Years in Industry: 19 WA DSCR: 2.5 2022 BHG borrower: High-quality borrowers on demand. To learn more about BHG, please contact:
As we kick off this year’s lending issue, I want to pause for a moment to reflect on just howmuch lending has changed. Remember not that long ago when a loan card was handwritten on a one-page form? You would just rip off the top sheet, fill out the terms and provide a description of the collateral. From there, the loan assistant would key it in and produce loan documents. That was it. That was the process. Fast forward to where we are today, and you almost can’t believe it’s the same product line. The pendulum has swung from a simple solution to the point of extreme detail and complexity. While it has had some benefits, like stronger risk management for our banks, it has made the customer process much more daunting. In fact, the loan process has grown more complicated in lockstep with today’s financial landscape. But community banks have adapted to address that shift. Over the past couple of years, we have drawn on technology to complement the human touch with digital efficiency and have been using behind-thescenes automation more consciously to streamline the process. By implementing these new strategies, we have focused on what matters most: our customers. Take, for example, how the Paycheck Protection Program (PPP) affected our infrastructure. The forced urgency behind that program lit a fire under us to implement new solutions quickly and efficiently because our small business customers needed them. In fact, for many bankers, PPP compelled action around technologies they had been considering for years: everything from e-signatures to digital document processing and beyond. FLOURISH “Loan providers are multiplying, and we cannot underestimate the need for a frictionless loan, one that removes hoops for our customers and feels simple, efficient and effective.” @romerorainey Rebeca Romero Rainey ICBA President & CEO Connect with Rebeca @romerorainey. That experience left me questioning what we could be doing now to anticipate what will come next. As we think about our ability to leverage technology, what is the lowhanging fruit? What new solutions can we stop kicking down the road? It’s smart business strategy to turn inward and ask the tough questions, particularly as we’re up against such a competitive landscape. Loan providers are multiplying, and we cannot underestimate the need for a frictionless loan, one that removes hoops for our customers and feels simple, efficient and effective. Today’s lending environment is markedly different from a decade ago, but we have weathered bouts of economic volatility, inflation and restrictive regulations in the past, and we have flourished despite them. So, while this next round of uncertainty will bring with it new challenges, the strength of the community bank business model remains intact. We, as community bankers, will continue to adapt to meet our customers’ needs. ■ Where I’ll be this month I’ll be attending the 2022 Idaho, Nevada, Oregon and Washington Bankers Associations’ Annual Convention in Coeur d’Alene, Idaho, and meeting with ICBA’s board of directors. 6 | The Show-Me Banker Magazine
MIBA LOBBYING REPORT Andy Arnold Arnold & Associates The Missouri Primary Election is August 2nd, so get out and vote! With summer and campaign season in full swing, Matt and I are busy researching candidates for the Missouri House and Senate seats. The MIBA PAC has been active on behalf of MIBA allies, fielding and funding campaign contribution requests. As expected, the big race this August is the Missouri U.S. Senate race, where former Missouri Governor Eric Greitens has a slim lead at this writing over Attorney General Eric Schmitt and Congresswoman Vicky Hartzler. Typically, voters move toward a single candidate in the last two weeks of the election. As far as State House races go, we are watching all of the state senate races closely, as there are seven open seats (six Republicans and one Democrat) and 10 other seats where incumbents are running, with most facing either a primary challenge, a general election or both. As far as the House is concerned, several contested primaries will decide 93 of the 163 seats up for election and 70 contested general elections in November. With the bulk of the House (93-seats) being decided by the primary election, I fully expect the House to stay in Republican hands. The Missouri Primary Election is August 2nd, so get out and vote! ■ September is right around the corner where we will gather for another exciting Convention & Exhibition for our MIBA Membership, family and friends. This year’s 32nd annual MIBA Scholarship Auction on Tuesday, September 13th, 2022, is at The Lodge of Four Seasons Golf Resort & Spa Shiki. We hope you are thinking about what special gift you will donate. On Tuesday, the Exhibit Hall will close at 2:30 p.m. and the Happy Hour Reception and Silent/Live Auction will begin at 4:30 p.m. in the Granada Ballroom. All registered bankers and exhibitors are invited and welcome to join the “Bidding Frenzy” for all items donated! If you already have your gift to donate, call the MIBA offices at (573) 636-2751 or go to MIBA.net > For Members > Annual Convention & Exhibition for your donation form. Donations to and purchases at the auction are not deductible for federal income tax purposes. August 2022 | 7
Congressman Blaine Luetkemeyer Missouri’s 3rd Congressional District “As our country’s inflation rates continue to make history with upsetting speed, this is no time to do away with overdraft services that help a family keep food on the table or gas in their car.” A VIEW FROM THE CAPITOL In January of this year, the Consumer Financial Protection Bureau (CFPB) declared war on its newest enemy: socalled “junk fees.” The Bureau put out a press release with a headline that cleverly read, “Consumer Financial Protection Bureau Launches Initiative to Save Americans Billions in Junk Fees.”¹ The problem is that neither in the announcement nor in the months since has the Bureau been able to find a definition for the term “junk fee.” Instead, they have offered vague explanations of what could qualify, which could include nearly every consumer fee. CFPB Director Chopra has even gone so far as to suggest he has authority over hotel fees – he does not. One of the reasons the Bureau relies on vague descriptions and absent data in their announcement is likely the fact that data does not support their arguments. In fact, data actually shows that Americans would rather pay the associated fees to ensure easy payments and have access to their desired banking services. The “junk fee” exercise is yet another one of the Bureau’s attempts to expand its power and unilaterally determine what is and is not legal based purely on Director Chopra’s biases. It is a pattern we have seen repeat itself over and over. For this reason, Ranking Member Patrick McHenry and I led a letter² to Director Chopra regarding this unethical practice and urged the Bureau to stop disregarding consumer sentiment in favor of political priorities. The letter focused on overdraft fees, which the Bureau has decided should be classified as predatory “junk fees.” This is despite a study from Curinos that showed American consumers see the benefit in having overdraft fees and prefer to have that service available. While the Bureau also made the blatantly false statement that banks are reliant on overdraft fees, the numbers show they only make up a tiny percentage of revenue. Again, this isn’t about consumers or facts. Unfortunately, my colleagues across the aisle in the Financial Services Committee seem to be on the same page as the CFPB. In our recent markup, Congresswoman Carolyn Maloney’s overdraft bill was passed on a purely partisan basis. This legislation builds on the Credit Card Accountability Responsibility and Disclosure (CARD) Act that in 2009, gave the CFPB the authority to set the cap for late fees. Congresswoman Maloney’s bill would give the CFPB similar authority over overdraft fees, which builds on an already misguided practice. The CFPB should not be a price setter, yet this bill has the potential to give the Bureau even more power over our financial system than it already has, which would affect almost every American consumer. As bankers know, an overdraft is an emergency liquidity product that provides consumers with a cash infusion when they need it most. As our country’s inflation rates continue to make history with upsetting speed, this is no time to do away with overdraft services that help a family keep food on the table or gas in their car. The fact that the CFPB has such little regard for consumers is extremely concerning and is further evidence of the “government knows best” mentality in Washington. However, I truly believe that many of the Bureau’s actions are not supported by the law, and I am adamant that Congress and the private sector must hold them to account. ■ Consumer Financial Protection Bureau Press Release Luetkemeyer, McHenry Send Letter to Chopra Regarding So-Called “Junk” Fees 1https://www.consumerfinance. gov/about-us/newsroom/ consumer-financial-protectionbureau-launches-initiativeto-save-americans-billions-injunk-fees/ 2https://luetkemeyer.house. gov/news/documentsingle. aspx?DocumentID=400681 8 | The Show-Me Banker Magazine
SCHOLARSHIP AUCTION WINNERS 2022 Region 1 Farmers State Bank – Mackenzie Williams Bank of Orrick – Tatum Floyd Community Bank of Raymore – Mackenna Graef Chillicothe State Bank – Jensen Simmer Region 2 Farmers & Merchants Bank – lain Ruge Bank of Brookfield-Purdin N.A. – Ryan McIntyre Regional Missouri Bank – Daniel Corbin Farmers Bank of Northern Missouri – Carly Spencer Region 3 First Independent Bank – Melissa Tate Bank of Springfield – Courtney G. Chapman Citizens-Farmers Bank of Cole Camp – Riley M. Bright Farmers & Merchants Bank of St.Clair – Jackson Laumann Region 4 FCNB Bank – Naomi Perkins Legends Bank – Destiny Bax Maries County Bank – Trey W. Snodgrass Peoples Bank of Moniteau County – Dylan Knipker August 2022 | 9
MISSOURI BANKER MEET YOUR Name: Siblings, Kevin Page and Lynsey Page-Waldman Title: Vice President of Corporate Finance and Vice President of Customer Relations Bank Name: Pony Express Bank Where is your main bank and branches located? What is the market like? Pony Express Bank is chartered out of Braymer, Missouri but the majority of our business comes from the Liberty branch located in the Northeast Kansas City Metro area. Liberty is one of multiple fast-growing suburbs throughout Northland with a population of approximately 35,000. We’re conveniently located right off Interstate 35 and have seen tremendous growth in residential, commercial and industrial sectors over the past decade. What is something unique about your bank? Pony Express Bank is one of the few remaining 100% family-owned financial institutions located in the KC Metro area and we are proud to say that there are currently 4 members of the Page Family working at the bank. Scott Page, CEO and President, started with Pony Express in 1993 when the bank had approximately $12 million in assets. Scott’s brother, Tom Page, CFO and EVP, joined in 1997 when the bank had roughly $50 million in assets and the family purchased the bank in 2003 with about $75 million in assets. Lynsey Page-Waldman, Scott’s daughter joined the bank in 2012 when assets were about $135 million and then Kevin Page, Scott’s son and Lynsey’s brother, started in 2020 when assets were $222 million. Since then, we’ve grown to more than $340 million in assets by continuing to serve the community of Liberty and the greater Northland area. How did you get started in the banking business? Kevin – I got my start in banking during high school where I worked at the family bank as a teller on Saturday mornings and during summer vacation. After learning the retail side of the business, I transitioned over to the lending side and assisted with loan review & property inspections. After graduating from Liberty North High School in 2013, I headed south to Texas Christian University where I graduated with a degree in Finance & Accounting. I took a job as a Consulting Analyst in Fort Worth, Texas with a firm called JTaylor & Associates, specializing in Healthcare Mergers & Acquisitions. Lynsey – I was a teller in high school after school and on the weekends at the family bank. I truly enjoyed the staff and the customers and it was a great job for a high schooler! I left for college at the University of San Diego with a plan to major in Business and no real plan to come back to the banking industry as I thought I wanted to get into the event planning world. After graduation, I took a job at the Hyatt in KC as an event planner but unfortunately the recession hit in 2008 and that job was eliminated. What prompted you to continue the family tradition & join the Bank? Kevin – When the pandemic hit in early 2020, I was quickly approaching my threeyear anniversary with JTaylor. I began to evaluate how I wanted my career to unfold and started having conversations with my dad, uncle and sister about their succession Never stop learning. Banking has been around since the advent of business, but modern banking requires modern solutions. 10 | The Show-Me Banker Magazine
plan for Pony Express. Having grown up in and around the bank, I knew the culture was excellent and felt confident that my background in Finance & Accounting could be a valuable asset to help ensure our families’ ownership of the bank continues into the next generation. My sister, Lynsey Page-Waldman, and I are proud to represent Pony Express as fifth-generation community bankers and look forward to helping facilitate further development throughout the area we’ve chosen to call home. Lynsey – After being laid off frommy event planning job in 2008, I worked as a finance administrator for a mobile app company called Handmark, and after four years there, realized I wasn’t really ever going to move “up” and began thinking about my future. I was having a conversation with my dad about the bank’s succession plan and things he needed help with at the bank and realized they all sounded like things I’d enjoy doing and that I knew I was good at. He kind of created a new role for me with a lot of different job descriptions which I love because it’s not the same thing every day. Coming back to work for the bank also meant I’d get to help carry on the family name. So, in 2012 I made the switch back to banking and will celebrate my 10-year anniversary this year! Working with my dad, uncle and brother have been really great and surprisingly we haven’t had too many arguments. We all know our strengths and weaknesses and have really worked together to allow the other to shine when/where they need to. What is the most important thing you’ve learned from this career so far? Kevin – Never stop learning. Banking has been around since the advent of business, but modern banking requires modern solutions. We’re constantly working to improve our operation and service offering and that requires a commitment to adaptability and continued learning. Lynsey – Never judge anyone’s situation and always be willing to listen. Money is such a personal matter and sometimes people encounter hard times and just need a little help and someone to give them a chance. I love being a family-owned, community bank because we truly care about our customers and enjoy helping people through both good and bad times. Sometimes just picking up the phone when you see someone is in overdraft can lead you to learn they were sick in the hospital and just need a week or so to get themselves straightened out, etc. A big bank would never take the time to do that and I love that we have those types of relationships with our customers. Those simple (yet important) things we do have paid us back tenfold with our relationships and referrals from current customers. People know at Pony Express you’re a name, not a number and we truly pride ourselves on that. Tell us about the Bank’s community investment efforts. Pony Express has actively supported the growth & development of the Liberty Community for nearly three decades now. In addition to our service offerings as a bank, we’re also involved with Liberty schools, Liberty parks, and various charities that work tirelessly to make this community such a fantastic place to call home. Our employees serve on various boards throughout the Northland and lend their time & expertise to making their respective organizations the best that they can be. What is the Bank’s biggest challenge in the area of Internet banking/mobile banking? We’ve adopted all aspects of modern banking in an effort to meet the financial needs of our community in the most efficient and secure way possible. With the rising prevalence of malicious actors, particularly online, internet security & awareness has become one of our biggest priorities. What’s your favorite thing about your bank/banking in general? Kevin – Helping our customers achieve their goals is easily my favorite part of banking. We have the unique opportunity to become partners with all types of business owners across all types of industries, and I always enjoy learning more about how others have chosen to make their living. Lynsey – the relationships we’ve fostered through the years! It’s amazing that it’s almost been 20 years since I started as a teller in high school and the same customers are still here and we are now seeing their children and even some grandchildren come into the bank! It’s truly a family bank and being able to help people through good times and bad is so rewarding. We also have a wonderful staff, many of who’ve been here for 20+ years, and they truly are the bread and butter of this bank. If you didn’t have a career in banking, what other career would you choose? Kevin – I’ve always loved working with people and think I would have enjoyed a career in financial planning. Lynsey – I am actually a wedding planner as my “side job” and have been for the last 10 years. I only do three-four a year so I’d probably choose to be an event planner of some sort but after 10 years in banking, I think banker’s hours are definitely more appealing! ■ Sometimes just picking up the phone when you see someone is in overdraft can lead you to learn they were sick in the hospital and just need a week or so to get themselves straightened out, etc. A big bank would never take the time to do that and I love that we have those types of relationships with our customers August 2022 | 11
MITCH BADEN A BACKGROUND ON MIBA recently interviewed Mitch Baden, the president and CEO of Royal Banks of Missouri, about his life, career and work perspectives. Mitch was born in St. Louis, Missouri, and has lived most of his life there. Mitch’s father, Arthur Baden, worked at a meat processing plant. “Dad started as the cleanup man in the meat plant. He was a smart guy and worked hard,” said Mitch. “Everybody liked him; he was the life of the party! My dad worked his way up to become the No. 2 person and the head of sales. He died far too young.” Arthur and his wife Betty had four boys and a daughter. He died at 39 of colon cancer when Mitch was only 12. Before Arthur died, he arranged for his three older sons to work at the plant. He wanted them to understand the importance of a college education. It worked. Banking was easy compared to the work they did at the plant. Mitch’s older brother Steve started Mitch in banking and helped raise the two youngest children. “I have always looked up to Steve, and I was proud to follow in his footsteps,” said Mitch. “Steve was the CEO at Royal Banks of Missouri for more than 20 years and retired in 2018. He was a great banker.” Mitch’s older brother Dale is now the national sales manager for a company in San Antonio. Mitch’s younger sister Donna worked as an officemanager but has now retired with her husband.The youngest child, Larry Baden, has a Ph.D. from the University of Kansas and is a journalismprofessor at Webster University in St. Louis. Mitch is the middle child and began working as a teller in June 1972 as a high school junior. Steve was working as a controller at Creve Coeur Bank, and Mitch visited him just after a teller was fired. “The head teller, Dee Pickle, came in ranting. Steve told her I was looking for a job, and she asked me three questions. The first was whether I could count backward by 10, the second was if I could add 10 and 20 together, and the third question was whether I could start working the next day. After that, I worked for the bank every year at Christmas and in the summer. She taught me that helping young people grow their careers was important. She probably put 20 young people my age through college. When she died, there 12 | The Show-Me Banker Magazine
I am blessed to work for great principal shareholders, Linda and Matt Renner and Steve Pessin. They gave me the opportunity of a lifetime. I don’t want to disappoint them. I owe themmy best efforts. I do not take it for granted!” During his interviews, Mitch told the board he wanted the bank to be a relevant shareholder investment by growing shareholder value and improving client experience. were hundreds of successful bankers at her funeral. She touched the lives of 20 people now helping to run banks. I am one!” Mitch spent six years in Columbia, Missouri, while he and his wife, Robin Rone-Baden, earned degrees at the University of Missouri at Columbia. He earned a four-year B.S. degree. Robin earned a graduate degree in elementary school counseling. They stayed in Columbia an extra couple of years so she could finish her work before they returned to St. Louis. After Mitch had finished college, and while his wife was finishing her academic work, he worked at Boone County National Bank. “I will tell anybody that the foundation for anything good in my life happened because I spent four years at Mizzou,” said Mitch. “I met my wife and bought my first house there. I also worked for Mike Stroup at Boone County National Bank. He gave me my first opportunity in management. I ran a credit department when I was 22 or 23. He sent me to other banks to learn how to put together the department. I amwhere I am because of him.” (Later, Central Bank bought Boone County National Bank.) “My mentors, Steve, Dee and Mike, helped create a very rewarding career. Because of their example, I really believe that my legacy is to help mentor and grow careers for young people the same way they did for me.” Mitch has three recommendations for anyone he mentors. “It doesn’t take a lot of talent to be early,” he said. “Our most precious resource is our time. One of our clients taught me this concept. I tell our team to be the first person in the room and the first to shake someone’s hand. Respect a person’s time!” His second recommendation is to love what you are doing. “You spend more waking hours at work than with the family you love,” he said. “Nothing is worse than going to a job you hate. If I sense a teammember is not happy, I discuss how we can make it a more fulfilling opportunity. If we can’t, then I encourage them to find a role that is satisfying! Life is too short; why work a job if you don’t love it? The third recommendation is to learn something new every day. “Know what you don’t know, and find ways to improve yourself,” said Mitch. In St. Louis, Mitch worked very briefly at Landmark Bank and, later, at Boatmen’s Bank for five years. “Mike Stroup was the first person I called to thank when I became a VP,” saidMitch. But Mitch wantedmore of a challenge, so hemoved toMercantile Bank for 13 years and South Side National Bank. When that bank sold, Mitch joined Steve at Royal. Mitch attended St. Lewis University (SLU). “I stumbled on to the Jefferson Smurfit School for Entrepreneurial Studies. I attended the program and taught several classes as well. I figured if I was going to do business with small-business owners, I needed to understand what their leaders were thinking. Small-business owners think in a totally different way. What I learned in that program has had a big impact on how we run our own company.” Mitch also graduated from the ABA National Commercial Lending School. For years Mitch was the chair of the Minority Business Council in St. Louis, Missouri. He was also honored as the Missouri Financial Services Advocate by the United States Small Business Administration. “I thought about starting a new bank after South Side was sold, but Steve suggested I join him at Royal so we could work together.” He laid our foundation and gave me the chance to grow to where we are today!” “Bankers don’t die; they just go to new banks,” said Mitch. “Almost all of our Royal management team came from larger banks. Continued on page 14 August 2022 | 13
What makes us different and a great community bank is we choose to work at a community bank. We prefer the personalized, one-onone service of a smaller bank. We all know what it feels like to be at a large bank where clients can become a number. We didn’t like that culture. Like other community bankers, we prefer to develop relationships with our clients.” When Steve decided to retire, Mitch interviewed for Steve’s position. “I didn’t expect the board to choose me. Steve and I are not owners. I was 63 and thought they might want a younger person or be tired of having a Baden in charge. I am blessed to work for great principal shareholders, Linda and Matt Renner and Steve Pessin. They gave me the opportunity of a lifetime. I don’t want to disappoint them. I owe themmy best efforts. I do not take it for granted!” During his interviews, Mitch told the board he wanted the bank to be a relevant shareholder investment by growing shareholder value and improving client experience. “I’ve worked for great people who want to make the bank as successful as possible, and I’m probably a better manager and think more strategically because this job came later in my career,” said Mitch. “Most people have difficulty believing I am 67. I’m energized by our team, and I’m having too much fun to retire. I’m very energetic and enjoy working long hours. Being active and creative keeps your mind sharp. I work with an amazing group of young people, and their energy keeps me young.” Within 45 days of taking over as CEO, the bank was presented with a major acquisition opportunity. The expansion increased revenue, and the bank has had record dividends for the last three years, but the bank is still community-focused. Mitch understands that employees are the bank’s biggest assets. Despite bringing in five new locations and growing to 17 locations, the bank did not lay off any employees and has continued to invest in its communities. The Royal Bank of Missouri has replaced drive-up windows with interactive tellers and is the only one in St. Louis to expand its hours. To reach the interactive tellers, customers can drive or walk up to an ATM, press a button and connect to one of Royal’s most experienced tellers. “Clients love the individual service,” said Mitch. “Transaction times are longer because people are visiting with friends. One elderly client in his 90s told us he was moving the accounts he’d had with us for 50 years because he didn’t want to do business with an out-oftown service center. I told himwe were not going out of the market. I showed him he would work with the same friends he has had for years. He is still a client today! Community banks are a part of the fabric of the communities they serve. I tell our team that we have failed if we start acting like a big bank.” When Royal purchased another bank last year, regulators repeatedly asked what Royal Bank would do with a facility in Center, Missouri. The office is in a community of 500 people. Center had farmers and clients who had banked there since the 1930s, and it is the only bank in town. Mitch said, “Why do you keep asking us about the Center location?”The regulators answered that they were concerned Royal Bank would close the facility center to be more efficient. Mitch said, “We are not planning to close or lay anyone off! I can commit to you that we are not closing our Center office.” Mitch knows he has worked with great people who shaped his career. “I hope I honor them by doing good things,” he said. He has also been blessed with great opportunities. However, watching young teammembers grow has become the most rewarding part of his career. He said, “When I took over the job, I knew it wouldn’t be for 20 years. My legacy wouldn’t be the bank I took over; it would be the people I leave in charge after I retire. I watch young people really grasp our business and understand how important what we do is for Continued from page 13 14 | The Show-Me Banker Magazine
our clients. It is very gratifying. I love molding the next generation of community bankers. Our management team is very young, and they are doing a great job. This story should be about them!” He also values the relationships he has formed with clients. “My longest client has been with me almost 35 years and has joined me at three banks. You become a financial partner. You may not be an owner, but you are invested. Most likely, if someone were in my role in a big bank, they wouldn’t handle clients. As it is, I know my clients and work with them daily. I can say hello if I see them in a restaurant. I see many of them at church; my children probably went to school with their children. We want our communities to thrive because this is our home. We donate hundreds of thousands of dollars into our markets.” MIBAmakes it easier for Mitch to reach out to people he knows and trusts. “I can run an idea by other bankers, and they will giveme an honest answer,” he said. “Wemay be competitors, but we are both in the business for the same reason, tomake our communities thrive, so we don’t view each other as a threat. MIBA gives us the ability to network with other successful people.That is unbelievably important.” MIBA also benefits members by providing training opportunities. “Training is a tremendous resource for our employees and me, personally,” he said. “During COVID, MIBA helped keep our staff trained and continued providing programs online and Zoom instead of shutting down.” Mitch sees several challenges currently facing the community banking industry. “I think some regulators want to have fewer banks,” he said. “They think banks will be more efficient if they reduce our number. That’s a threat to community banks. We are trying hard to find good people, grow fromwithin and do what we can to be solid citizens every way we can.” The second challenge is nontraditional bank competitors like credit unions and online lenders. “We need to level the playing field,” said Mitch. “First, credit unions don’t play by the same rules as we do. They became major competitors the day regulators allowed credit unions to provide commercial loans. Providing a competitive pricing advantage is huge when you do not have to pay taxes. Most credit unions are tax-exempt. Online lenders are changing the lending landscape, but I wonder if the ease of borrowing will ever replace a personal relationship. When things are going well, anyone can be a good lender. The truly great lender is the one who sticks with you in tough times.” Mitch thinks bankers must invest in and build their communities to deal with these challenges. “Community bankers live in our communities. We are active and reinvest our resources in our local markets,” said Mitch. “These are markets we call home! Mitch and Robin have three children, a daughter and two sons aged 37, 30 and 28. The two sons started their careers at other banks but now work at Royal. One son is head of the mortgage group, and the youngest son is the assistant manager on the retail side. Mitch and his wife sponsor and support many local charitable organizations within their community. One favorite is Operation Shower, which started in St. Louis. The website address is https://operationshower.org. The charity provides baby showers for women in the military or women whose husbands are in the military. The PGA Tour partners with Operation Shower. “These young parents think they are going to get diapers and a blanket, but it is much more,” said Mitch. “It’s a great charity that honors the service of people who are willing to put their lives on the line for our freedom.” Mitch’s main interest away fromwork is sports. “I love sports, but the only game I play is golf,” Mitch said. “I am also a huge supporter of the Mizzou football program and SLU basketball. At the end of the interview, Mitch said, “I’m so blessed by the opportunity our ownership has given us, and so blessed to be working with a great group of young people. What we’re doing as bankers is a lot of fun. If you are in your late 50s or early 60s, I recommend jumping at any opportunity that comes your way.” ■ Mitch sees several challenges currently facing the community banking industry. “I think some regulators want to have fewer banks,” he said. “They think banks will be more efficient if they reduce our number. That’s a threat to community banks. We are trying hard to find good people, grow fromwithin and do what we can to be solid citizens every way we can.” August 2022 | 15
2022 Annual Convention & Expo September 12-14, 2022 The Lodge of Four Seasons, Lake Ozark, MO Monday Golf Tournament, Opening Expo Reception & Rooftop Luau Tuesday General Session, Expo, Scholarship Auction & President’s Dinner Wednesday Closing Session Join Us For An Exciting Line-up of Speakers and Events This Year! 16 | The Show-Me Banker Magazine
45TH ANNUAL GOLF TOURNAMENT The Cove Tournament Organization & Prizes Compliments of PRE-TOURNAMENT BREAKFAST, BLOODY MARY & MIMOSA BAR MONDAY SEPTEMBER 12TH, 9:00AM TOURNAMENT LUNCH Golf Hole Sponsors BKD LLP TIG Advisors JMARK BCC Bell Bank VGM Forbin 1st Advantage Bank Farmers & Merchants Bank FHLB Country Club Bank BHG Financial QwickRate First Bankers' Banc Securities Midwest Independent BankersBank On Monday, September 12th, the MIBA will hold its 45th Annual Convention Golf Tournament at THE COVE, A Robert Trent Jones Sr. Signature Golf Course The Tournament tees off at 10:00am. Entry fee per person in $150- includes 2 mulligans, breakfast with Bloody Mary & Mimosa Bar, lunch, refreshments, cart and green fees. You must be a fully registered convention attendee or exhibitor to participate in the tournament BEVERAGE CARTS & HOLE IN ONE CONTEST GOLF GIVEAWAYS August 2022 | 17
THANK YOU TO OUR EARLY CONVENTION SPONSORS Bancard & TCM Bank | Mortgage | Securities | Reinsurance www.icba.org Download the MIBA app now from the Apple or Google Play stores to keep up to date with what’s going on at the convention! Convention App Sponsored by 45th Annual MIBA Convention & Expo 18 | The Show-Me Banker Magazine
Bankers Security (BSI) recently became a fully Endorsed Vendor at MIBA. BSI is proud to mark three generations of trusted service. In addition to their Kansas City headquarters, their growth includes satellite offices throughout the Midwest (Omaha, Springfield and St. Louis) and access to over 300 years of collective experience. They are opening their doors to newmarkets, bringing the strength of products developed for financial institutions to other industries and individuals. BSI customers enjoy the peace of mind they receive, knowing they are protected by the highest quality security products and services on the market. Bankers Security offers you many benefits from their commitment to Tradition with Vision. Be sure to check out all their services and products from 24/7 alarm and monitoring services, consulting on branch planning, modular banking solutions, custom fabrications and so much more! Visit bankerssecurity.com to get all the details or contact MarkThatcher at (816) 358-0883. BANKERS SECURITY MIBA ENDORSED VENDOR August 2022 | 19
2022 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 • Adrian Bank • Bank of Advance • Bank of Iberia • Bank of Old Monroe • Bank of St. Elizabeth • Blue Ridge Bank & Trust, Independence • BTC Bank, Bethany • Citizens Bank, New Haven • Community Bank of Pleasant Hill • Community Bank of Raymore • Community State Bank of Bowling Green • Exchange Bank of Missouri, Fayette • Farmers & Merchants Bank, St. Clair • First Independent Bank, Aurora • Jonesburg State Bank • Metz Banking Company, Nevada • Midwest Independent BankersBank, Jefferson City • Midwest Regional Bank, Festus • 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 • Preferred Bank, Rothville • Regional Missouri Bank, Marceline • Security Bank of the Ozarks, Eminence • Sherwood Community Bank, Creighton • The Bank of Missouri, Perryville • The Bank of Salem • The Missouri Bank, Warrenton • Tipton Latham Bank • Town & Country Bank, Salem • 1st Advantage Bank, St. Peters • Callaway Bank, Fulton • Chillicothe State Bank • Farmers State Bank • Silex Banking Company • State Bank of Missouri, Concordia • John Allee, Tipton • Carl Blochberger, Tipton • Sue Ann Loesch, Jefferson City • H.E. Blankenship, California • Bobby Schatzer, Latham • Lori Woratzeck, California • Calen Bestgen, Tipton • David Johansen, Syracuse • Karen Messerli, California SILVER LEVEL $200-$399 Individual GOLD LEVEL $400-$749 • 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 PLATINUM LEVEL $750 and up 20 | The Show-Me Banker Magazine
TIRED OF BORROWINGMONEY BEINGMORECOMPLICATED AND DIFFICULT THAN IT NEEDS TO BE? Bank Stock and Bank Holding Company Stock Loans Done the Simple Way Bank mergers, acquisition loans and refinances up to $50 million » Call Rick Gerber or Ryan Gerber at 1-866-282-3501 or email rickg@chippewavalleybank.com ryang@chippewavalleybank.com 1. Calling us is the first step. 2. You email us the appropriate documents of information. 3. CVB preparing the loan documents generally within 5 to10 days. 4. Meeting the customer. We will come to you to sign loan documents. 5. CVB wires the funds. 6. Wow that was easy.
WHY HACKERS WANT YOUR COMPUTER By John Streff We hear so much about data breaches and cyber attacks these days. Learning that hackers exposed millions of credit card numbers or other pieces of personal information seems to happen more and more. Even large companies with wellfunded security — such as Facebook, Microsoft, and Equifax — suffer at the hands of malicious cyber attackers. Considering how these mega-companies make such high-value targets, you may wonder, “How does this affect me? Why do I need to care about cybersecurity? Why would an attacker want my computer? There is nothing of value on it, and I only use it for email, social media, and occasional online purchases.” What many people forget is that hackers are not only dangerous because of what they can take from you but also because of what they can give you. While it may be true that your personal computer does not store millions of credit card numbers, your PC still has potentially tremendous value to an attacker. You need to care about cybersecurity. So, what can an attacker do with your computer? Let’s look at some major reasons an attacker may want your computer. If you have saved your email password to your computer, so you don’t have to type it every time you log in, attackers may be able to access your email account. They could read your emails. They could even send emails in your name to wreak havoc in your life or damage your reputation. They could obtain the contact information of your friends and family. With access to your email, it would also be possible to reset the passwords of any online accounts that you have set up with that email address using the “Forgot my Password” button on a website’s login page. Access to your email provides wildcard access to most of your Your computer may be more valuable to an attacker than you think. online accounts. Consider what these other online accounts are. Someone with access to your Amazon account could probably make purchases using the credit cards you have saved in your account. Think of the damage an attacker could do to your personal and professional reputation with access to your Facebook, Twitter, and LinkedIn accounts. A hacked computer is also dangerous because it may allow attackers to access your computer’s webcam and microphone. Attackers could potentially take pictures of you without your knowledge. If the images captured were private, they could blackmail you. For this reason, keeping your webcam covered when not in use is always a good idea. With access to your computer, attackers could also install malware (malicious software) capable of encrypting all your files and making them unusable until you 22 | The Show-Me Banker Magazine
www.thenewslinkgroup.orgRkJQdWJsaXNoZXIy ODQxMjUw