When preparing his retirement article, one last question put to Sage by the MIBA staff was, “If you could pick your own epitaph, what would it be?” He jokingly said, “The Legend of Noel!” I remember him saying, ‘You don’t have to do anything but say the Independent Bankers of Missouri oppose the legislation,’” Jerry recalled. “I remember, when it came my time to speak, I got up on the high dais in front of this committee, and it felt like I was on trial before a tribunal. My voice was so squeaky, and I was so embarrassed; I’ll never forget it.” But despite his wobbly start, Jerry Sage soon showed himself as an effective lobbyist. “When there was a statewide branch banking referendum in 1958, a bunch of us old independent bankers hired McFadin and beat it,” said Bill Breedlove, a retired banker who, at that time, owned a $1 million bank in Rogersville, Missouri. “After that, Jerry did a great job as McFadin’s assistant; I don’t know anyone who could’ve done a better job.” During the 1980s, a number of banks were gradually removed. As large banks began branching into the various towns and cities, the state’s community banks faced a dilemma. They had a lending limit of just under $1 million, and when a customer exceeded that limit, the bank would have to participate with a correspondent bank or lose the customer. With large banks moving into the market, community banks had much fewer options for correspondent partners, and any one of the large banks could move into town equipped with customer information from their correspondent business. Then in 1982, after five years of pushing, MIBA convinced the state legislature to pass a bill sparing community banks from participating in loans with their large bank competitors. “The bill allowed banks to own up to 5% stock in another bank. Independent bankers could now create their own correspondent bank,” Jerry said. “And we could form a bankers’ bank in Missouri.” Missouri Independent Bank If MIBA was going to organize a bankers’ bank, the venture needed broad support from bankers around the state. MIBA commissioned a feasibility study and began organizing meetings of community bank CEOs across the state. “Jerry was instrumental in getting the study done, in getting the word out and in educating bankers about a bankers’ bank,” said Cam Fine, president and CEO of the Independent Community Bankers of America. Fine was hired to organize and charter the bank in January 1983. “The first time I met Sage was in April 1984 in Jefferson City, Missouri, at a MlBA board meeting. I was introduced as the brand-new president of Missouri Independent Bank. We were just kids then,” he said. Sage and Fine traveled the state together, enlisting investors for the new bank. By mid-1984, Fine, MIBA and Sage gathered the capital to open the bank. The charter for Missouri Independent Bank was awarded by the commissioner of banking at MIBA’s annual meeting in September 1984. In the years that followed, Missouri Independent Bank, now called Midwest Independent Bank, was an important partner to community banks as it competed against larger banks. It was Jerry Sage who helped make community banks possible. Managing a Successful Association Over the years, Jerry also proved effective at killing bills in the state legislature that hurt community banks. “Just about every session and just about every year it was a battle,” Cam Fine said, “[Jerry] was either blocking something bad or helping something good through. He was very successful beating back legislation that would limit or harm community banks.” Jerry had a strong influence on legislators, said Max Cook, a former president and CEO of the Missouri Bankers Association. Whether Missouri banks were fighting to remove a cap on insufficient funds fees, battling credit union overreach or new burdensome mortgage laws, community banks had an effective advocate in Sage, Cook said. “Jerry and I have been on the same page here in the state for many years, and we have worked jointly on issues for years as well,” he said. “The lobbying business is one of building relationships. Continued on page 26 October 2022 | 25
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