2024 ISSUE 5 Meet Your Missouri Banker Jonathan Fish Regional President/SVP, BTC Bank A Background On MIBA President Doug Fish CEO of BTC Bank
INVESTMENT PRODUCTS Municipal Bonds Mortgage-Backed Securities Govt. & Agency Bonds Corporate Bonds Brokered CDs Money Market Instruments Structured Products Equities Mutual Funds ETFs FINANCIAL SERVICES Public Finance Investment Portfolio Accounting Portfolio Analytics Interest Rate Risk Reporting Asset/Liability Management Reporting Municipal Credit Reviews Balance Sheet Policy Development and Review Comprehensive SOLUTIONS 888-726-2880 FBBS believes the success of your team is the future of our firm. MEMBER FINRA & SIPC. INVESTMENTS ARE NOT FDIC INSURED, NOT BANK GUARANTEED & MAY LOSE VALUE. MIB is a key partner of First Independent Bank. Due to the nature of that relationship, we often have questions about the programs and services we utilize. Chris is knowledgeable about everything MIB offers, so we can count on getting information we need from a conversation with Chris. If he doesn’t know the answer, he knows who at the bank to ask and will promptly get back in touch with an answer or solution. WHY ? Jack Muench, President First Independent Bank of Aurora, MO Lending Services Operational Services Audit Services* MEMBER FDIC Audit Services are offered thru MIB Banc Services, LLC, a subsidiary of our holding company. 800-347-4MIB mibanc.com * Chris Bryan with customer Jack Muench www.FBBSinc.com
INSIDE THIS ISSUE PO Box 1765 Jefferson City, MO 65102 (573) 636-2751 | miba.net Editor: Matthew S. Ruge Executive Director ©2024 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. Published for the Missouri Independent Bankers Association 4. PRESIDENT’S MESSAGE The Future of Community Banking 5. Welcome to the 2024‑2025 MIBA Officers 6. FLOURISH Leveling the Playing Field 7. FROM THE TOP Tenacity for the Regulatory Win 8. MIBA Lobbying Report 10. A BACKGROUND ON MIBA President Doug Fish CEO of BTC Bank 15. Leadership Division at the Ballpark August 9, 2024 16. LEGAL EAGLE SPOTLIGHT Financing Unique Assets Aircraft, Artwork and Specialized Collateral 18. MEET YOUR MISSOURI BANKER Jonathan Fish Regional President/SVP, BTC Bank 15 10 18 26 21. MIBA Upcoming Events 22. Expert Web Design for Banks Redesign Checklist 23. MIBA 47th Annual Convention Golf Tournament 24. Thank You to Our 2024 Convention Sponsors! 26. MIBA 47th Annual Convention & Expo 28. Easing Into the Fall At Long Last, Some Rate Relief 30. Securing Missouri to Help Secure Our World 32. F&C Bank Receives Community Impact Award 33. 2024 MIBA PAC Honor Roll 35. Welcome New Associate Members 35. MIBA Endorsed Vendors 36. MIBA Associate Members 38. Upcoming Webinar Schedule The Show-Me Banker Magazine | 3
Doug Fish MIBA President BTC Bank Bethany, MO PRESIDENT’S MESSAGE The FUTURE of Community Banking Number 47 came and went, the 47th Annual MIBA Convention, that is. Matthew, Michelle and the MIBA staff in its entirety gave the membership another well-run, insightful, educational and, as always, fun and entertaining convention. The speakers provided timely information and, with the current political and economic environment, their insightful thoughts were important and appreciated. Craig Dismuke, managing director and chief market strategist with STIFEL, helped provide a little clarity about what might be a very cloudy future. I had the opportunity to meet and talk with Past ICBA Chairman and our Keynote Speaker Brad Bolton. We discussed our industry, and, to me, the conversation solidified the thought that our industry, while challenged, is and will remain strong and vibrant. Thank you to Mark Laune, our immediate past president, for your service to the association — not just this past year but the many years prior. It is the dedication of individuals like Mark and his predecessors that make our association not only survive, but thrive. As I shared during the convention, I have two very simple yet extremely important goals for the coming year. Firstly, grow our membership. There are a number of independent Missouri banks that aren’t currently MIBA members. I’m tasking every member bank and every MIBA director to personally contact one of these non-member banks and invite them to join. Secondly, the demographics of our board aren’t in tune for the dreaded “S” word … succession. We all deal with the “S” word in our banks. We need to look at the MIBA Board the same way we look at the boards in our own banks. Getting the next generation of bankers involved in leadership roles is crucial to the future of community banking. To our many vendors, sponsors and member banks who attended and helped make this another successful convention, thank you. From the golf tournament at The Cove Golf Course to the Rooftop Rendezvous, the amazing entertainment, the infamous LobsterFest and, of course, the MIBAR, the convention was, once again, a tremendous success thanks to our MIBA staff. Taking advantage of events like these — especially the opportunity to interact with our fellow Missouri bankers and discuss our challenges and successes — helps make us all better at accomplishing the most important thing: Taking Care of Our Customers. As I look back at my 40-year banking career, the changes within the industry have been almost unimaginable in every area — regulation, compliance, products, delivery of products — I could go on forever. But technology is, without a doubt, one of the greatest changes. We used to use typewriters, payment posting machines and one pocket or larger proof machines. We were exchanging checks at the end of the day with the other local banks, batching work and couriering it to a data processing center overnight — reams of green bar paper reports were then couriered back the next morning — this was the norm. Today, I can write a check at a local merchant and, before I can get back to the bank, it has hit my account thanks to mobile depositing. 4 | The Show-Me Banker Magazine
FedNow or RTP have made our industry 24/7/365. The technology available to bank customers changes constantly, and the ICBA’s Thinktech Accelerator program is a resource that you should be utilizing. While we may never be on a level playing field against our big bank competitors, we do have access to many other resources from ICBA that help tip the scales in our favor. The one thing that we as community bankers will always have to our benefit is the ability to provide unmatched customer service. As I’m writing this article, I’m sitting in our Oregon, Missouri, branch having just celebrated a ribbon cutting after an extensive remodel. As the picture to the left details, we were able retain the teller windows that were originally installed in the early 1900s, making them well over 100 years old. Imagine the changes in the industry those teller cages have seen. However, the changes we will see over the next 10 years will far exceed the changes of the past 100 years. We as an industry must embrace change and adapt if we are going to SURVIVE AND THRIVE. Welcome to the 2024-2025 MIBA Officers Matthew S. Ruge, executive director of the Missouri Independent Bankers Association (MIBA), the state’s premier banking association exclusively representing over 130 independently-owned community banks state-wide, announced the election of the group’s new officers for the 2024-2025 term of office: Chairman of the Board Jeff Williams Security Bank of the Ozark, Eminence, Missouri President Doug Fish BTC Bank, Bethany, Missouri President-Elect Curt Brumley Community Point Bank, Russellville, Missouri Vice President Charles Gnuse United State Bank, Lewistown, Missouri Secretary-Treasurer Kim Reigelsberger Preferred Bank, Rothville, Missouri The association’s elections were held at its 47th Annual Convention, Sept. 9-11, 2025, at The Lodge of Four Seasons in Lake Ozark, Missouri. The Missouri Independent Bankers Association was the first state independent bankers association to be formed in the country and was chartered in 1959. The association serves community banks throughout Missouri, providing legislative representation, education and seminar programs, as well as other services designed exclusively for community banks. The Show-Me Banker Magazine | 5
Rebeca Romero Rainey ICBA President and CEO @romerorainey FLOURISH They say imitation is the greatest form of flattery, but when it comes to financial services, it doesn’t make for a fair banking environment. Just look at credit unions, trying to position themselves as “community” organizations without having to demonstrate that they meet Community Reinvestment Act requirements. Or Industrial Loan Companies, with holding companies not subject to bank compliance reviews. Or the Farm Credit System, which wants to compete with community banks but doesn’t want to be regulated like them. Or mega banks who are too big to fail, ensuring we pay the price with outsized regulation. The list goes on. We need a level playing field. As outlined in our recent report, “Finding Balance: How Well-Intended Policies Hamper Small Business Lending and Undermine Relationship Banking,” the disproportionate regulatory burden created for individual community banks makes it nearly impossible to compete with those who can position their products and services free of regulatory constraints. They can avoid the heavy cost of compliance while ignoring the impact these imbalances have on our industry. At the end of the day, it’s the customer who will pay the ultimate price if unbalanced regulations are allowed to continue. They will face challenges when they can’t get an emergency loan during a pandemic, like we saw with the Paycheck Protection Program. They will struggle when their small business loan needs don’t meet standardized checkbox requirements. They will lose out when they don’t qualify for a mortgage because those same checkbox requirements apply in consumer environments. Right now, community banks step up in those situations, providing support based on the deep relationships they have in their communities. But as more and more regulations come down on us, this ability to respond may be hindered, leaving our customers and communities without fair options. That’s why community banker engagement and grassroots actions are so incredibly important. We have to speak up and demonstrate how the lack of consistent regulation creates issues. We have to deliver stories that demonstrate the egregious acts committed by non-banks acting like banks. Congress needs to hear not just that community banks think it’s an unfair playing field but to understand the harm this imbalance places on our communities. We encourage you to raise your voice and visit ICBA’s Action Center (icba.quorum.us) for resources to help. In the meantime, we have a message for our imitators: If you want to be like us, you need to up your game to play by the same rules. Leveling the Playing Field 6 | The Show-Me Banker Magazine
Lucas White ICBA Chairman President of The Fountain Trust Company FROM THE TOP Tenacity for the Regulatory Win Top 3 Best Experiences in the Fall 1. Drinking apple cider. 2. Breathing in crisp morning air. 3. Seeing harvest all around me (and cutting wood without the threat of poison oak and ivy). When I’m asked about necessary skill sets for community banking, I talk about problem‑solving and a passion for helping people. But when people question what it takes to be a community bank leader, a single word comes to mind: tenacity — which is just a nice way of saying stubborn. Because we have to be stubborn to stick to our values in today’s environment. We have to be too stubborn to quit, even when credit unions or Farm Credit use their tax advantages to undercut us on deals or when unregulated institutions are allowed to offer the exact same services we provide. But just imagine for one minute what it would be like to function in a fairer environment, one with tiered regulation that better supported us as individual banks serving individual communities. It would allow us to be more creative to help our customers. We wouldn’t have to check the proverbial regulatory box on every loan or business relationship. We would have the flexibility to be nimbler in the products and services we provide — and we’d thrive. Regulation has unintended consequences. For example, at my bank, the Qualified Mortgage Rule drastically affected our business. If you looked back on our loans historically, you’d see we used to have about 30% of our portfolio as consumer in-house mortgage loans. Now, that’s at 11%. Why? We used to be more apt to take a co-signer or require more collateral to make the loan work, but now, if we can’t get a loan to fit according to the standardized matrix, we won’t do it. We won’t make a loan that doesn’t count as a qualified mortgage, so we’re limited in our options. Ultimately, that only hurts the customer. They are looking for their bank to be a partner in their dreams, and we can’t always deliver on that vision. That just means they may be forced to seek riskier loans elsewhere, which benefits no one. That’s why fighting for a fair playing field is every community banker’s responsibility. Going to Washington, writing letters and sharing our stories are our only opportunities to affect the rules we operate under. If we don’t tell our story, no one else will. So, this fall, I encourage you to put your tenacity in motion. Let your legislators know exactly how regulation needs to change and what the unintended consequences of more regulation will be. Don’t take no for an answer. Fortunately, that shouldn’t be a problem because you wouldn’t be a community bank leader if you weren’t already stubborn. The Show-Me Banker Magazine | 7
MIBA Lobbying Report Report Andy Arnold Arnold & Associates The Missouri Primary Election is over, and we now have a better idea of the players for the November Election. The statewide races candidates are settled: Governor (Kehoe V Quade), Lt. Governor (Wassinger V Brown), Secretary of State (Hoskins V Phifer), Treasurer (Malek V Osmack) and Attorney General (Bailey V Gross). We project all of the Republican candidates winning in November. As for the Senate, we believe there are only three Senate seats in play for the General Election: 11th (Sauls V Nicola), 15th (Pereles V David Gregory) and 17th (Nurrenbern V Nolte). We also believe the Democrat candidate has the edge in all three districts. We project 14 of the 17 Senate Districts up this cycle were settled by the primary election, even if there is a General Election opponent: 1st (Beck), 3rd (Henderson), 5th (Roberts), 7th (Lewis), 9th (Washington), 13th (Mosley), 19th (Webber), 21st (Kurtis Gregory), 23rd (Schnelting), 25th (Bean), 27th (Burger), 29th (Moon), 31st (Brattin) and 33rd (Hudson). If the Democrats hold the two contested Democrat seats (11 and 17) and flip the 15th and 19th, there will be a net pick-up of two Democrat seats, making the numbers 22 Republicans and 12 Democrats. As for the House, there will be at least 55 new members due to term limits, members not wanting to run for re-election or members running for higher office before term limits kick in. There are over 100 contested House races going into November, so this will be an interesting cycle. Your business is your biggest investment. So why not give yourself the best chance to succeed? Everyone loves a good deal. But saving money on cheaper IT solutions can actually cost you more. How? Frequent downtimes. Unexpected expenses. Zero customer trust. The good news: it doesn’t have to be this way. Don’t let low-cost IT services equal lost revenue. Scan the QR code now to discover the secrets cheaper IT providers are hiding and how you can avoid falling into their trap. SEE BENEATH THE SURFACE. $ Everyone loves a good deal. But saving money on cheaper IT solutions can actually cost you more. How? Frequent downtimes. Unexpected expenses. Zero customer trust. The good news: it doesn’t have to be this way. Don’t let low-cost IT services equal lost revenue. Scan the QR code now to discover the secrets cheaper IT providers are hiding and how you can keep your company smooth sailing. The TRUTH behind IT “savings” 8 | The Show-Me Banker Magazine
A BACKGROUND ON MIBA President Doug Fish CEO of BTC Bank 10 | The Show-Me Banker Magazine
Doug Fish started his term as the 2024-2025 MIBA President on Sept. 11, 2024. Doug’s thoughtful leadership and years of experience have prepared him well to lead MIBA forward this upcoming year. Born and raised in rural Missouri, Doug grew up on a small farm, milking cows, raising beef cattle and tending to the gamut of other livestock. From a young age, Doug had aspirations of becoming a banker. He would often go into town with his father to meet with the loan officer at Bethany Trust Company, now known as BTC Bank. The loan officer’s secretary, Annabelle Terry, was a neighbor who lived close to his family’s farm. Doug would sit down and wait at her desk when his father went into another room to conduct business. Annabelle was happy to entertain Doug and let him help out while he was there. Annabelle’s kindness left quite an impression on him. After high school, Doug attended Northwest Missouri State University and graduated with a degree in business administration. He went on to work in a number of banks and held a number of finance positions, including spending a little bit of time working at the FDIC. In 2013, Doug had the opportunity to come back home to northwest Missouri and work at The Show-Me Banker Magazine | 11
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BTC Bank. “The first day I was here, lo and behold, I was greeted by Annabelle,” Doug recalled. “The woman who would let me sit at her desk 50 years ago was still working at the bank, be it part-time.” It was then that Doug knew he made the right decision to become a banker. His life had come full circle. Today, as the CEO of BTC Bank, Doug oversees 23 branch locations in Iowa and Missouri with 245 employees. He is heavily involved with the day-to-day of the lending side and oversees all of the other departments. “I’ve got a very good group of people working with me. They are what make the difference; they make our bank unique.” If one were to visit a BTC Bank branch, they would be welcomed with a friendly greeting and personalized service. But that’s not all, under Doug’s leadership, and with the help of bank employees, Customer Appreciation days are held at each branch yearly. Customers can visit a branch and be served a hot meal by a teller, a loan officer, a branch manager or possibly even Doug. Now that’s appreciation. Each fall, BTC Bank sponsors tailgate parties for local high schools. Doug and his employees pull up with a custom-made BBQ trailer and light the grill. They serve the crowds hamburgers and hot dogs with a side of chips, a drink and a cookie, all for the low cost of $5! You can’t beat that price. The bank matches the first $1,000 raised, with all proceeds are given back to the school. Another thing that sets BTC Bank apart is its focus on community, agriculture and youth. “In rural communities, agriculture is by far the primary industry. If you don’t have strong community support for agriculture, you’re not going to have a place for youth to come to or stay at,” said Doug. “We have cosponsored 4H financial literacy programs with the University of Missouri Extension, and a number of our branches interact one-on-one in classrooms at all age levels.” BTC Bank has also funded the EVERFI financial literacy course in 15+ local high schools. Each year, the bank awards four to six scholarships to EVERFI graduates through the bank’s 501(c)(3) BTC Area Youth Benefit Corp (BTC AYBC). BTC AYBC was established in 2013 as a way for BTC Bank employees and their friends to support the youth in the community. To date, more than $375,000 has been awarded to schools, teams, clubs and individuals. Looking back at his career, Doug’s favorite success is people — the people that work with him and the people that rely on the bank day in and day out. “There’s nothing more rewarding as a loan officer than to help a customer buy their first home,” Doug stated. There were many people who helped Doug along the way, but three specific people come to mind when Doug thinks of his mentors. “If any of the three were still alive, they would probably say they had no idea that I felt this way,” Doug said. “When I was in college, I worked in a pizza place. The owner was Earl Brown. The most important thing that I learned from him was that you’ve got to be present. You’ve got to be in the moment. You’ve got to be right there, next to your employees, doing the exact same thing they do,” Doug recalled. “The first boss I had in the finance world was James Bourschik. He gave me an education beyond the books,” Doug said. “You’ve got to look at the financial statements, the income statements, but the most important I learned from him was it’s all about the person — the interaction with that person and the conversation is just as important as what you see on paper.” “When I worked in Hannibal with Bayard Plowman, who was chairman of the board for the bank and managing officer for the local savings and loan, I learned what a true community banker is and how to be a leader in the community,’ Doug said. “To me, Bayard was like George Bailey in the movie ‘It’s a Wonderful Life,’ always helping the community.” Being involved with MIBA has helped Doug throughout his career as well. “I’ve been on the MIBA board for almost 10 years and a member of MIBA for most of my career. In fact, I’ve been involved with MIBA longer than Matt Ruge,” Doug said with a smile. “MIBA is the voice for community banks in Jefferson City and in D.C. With fewer and fewer community banks around, we need a strong voice like MIBA’s looking out for us.” “For me, the greatest benefit of being involved with MIBA is the peer-to-peer opportunities that you have — visiting with peers in the state who are dealing with the same issues that you are dealing with in your bank. Conversations often lead to solutions,” Doug said. “The education piece that MIBA offers is also extremely helpful.” The Show-Me Banker Magazine | 13
As president, Doug has two goals. “It would be great if I could sit here and say that 12 months from now, we have 100% of community banks in Missouri as association members, but that might be a little lofty,” Doug stated. “My goal is to grow the membership of the association and get half of those banks that aren’t members today to become members.” “My second goal is to help change the demographics of the members who are involved on the board or committees or those who attend conferences. Right now, it seems that there are a lot of old white guys,” Doug chuckled. “We have got to get the next generation of bankers involved. They need to be prepared to take over the association and industry one day, and it’s our job to help them.” To help him reach these goals, Doug issued a challenge to all MIBA members. “Reach out to one independent bank in Missouri that is not a MIBA member. Tell them about the benefits of MIBA and invite them to join.” Doug continued, “Involve the next generation of bankers. Invite them to attend meetings, encourage them to serve on committees and be a mentor to them. The future of the industry depends on it.” Doug offers three pieces of advice to his fellow bankers, especially to the next generation: 1. Never stop learning. Our industry changes daily, so continuing to learn is vital. 2. Read, read and continue to read. Focus on your livelihood, banking, finance and things associated with the industry. 3. Try to make your last customer interaction the best interaction that they’ve ever had with a banker. He also loves to motivate his team with inspirational quotes. Doug’s favorite quote is by John Wooden, UCLA basketball coach: “Do not let what you cannot do interfere with what you can do.” When Doug isn’t working, he enjoys spending time with his lovely wife of 42 years, Cindy. They have four children: Rebecca, Elizabeth, Andrew and Jon, who is a second-generation banker at BTC Bank, and four rambunctious grandchildren. He also has a small herd of cattle he tends to early mornings and evenings. “It’s something I do before I come to work. It’s just a good stress relief. I ride the tractor and don’t have to worry about anything other than making sure I don’t run into something,” Doug said. 14 | The Show-Me Banker Magazine
Leadership Division at the Ballpark August 9, 2024 The Show-Me Banker Magazine | 15
Financing unique assets such as aircraft, artwork and other specialized collateral requires a tailored lending approach. Lenders’ counsel should consider the specific characteristics and risks associated with each asset class. These assets, due to their high value, lack of liquidity and market-specific risks, necessitate specialized financing arrangements to secure the loans. Understanding the Nature of the Asset • Aircraft: Aircraft financing must factor in aircraft type (commercial, private or cargo), age, condition and market demand for the aircraft. Regulatory compliance and maintenance records are key considerations. • Artwork: Artwork financing requires an understanding of the piece’s provenance, the reputation of the artist and the current art market trends. Appraisals can be subjective, making the determination of the artwork’s value difficult. Valuation requires specialized expertise and due diligence. • Other Unique Assets: Luxury yachts, vintage cars, rare collectibles or rolling stock present distinct challenges, with each having unique market dynamics. Lenders must consider intangible factors like market demand, rarity and asset condition. Valuation and Appraisal Lenders typically utilize professional appraisals and market comparables, but these basic valuation approaches may be insufficient. Valuating artwork requires lenders and their counsel to understand concepts of attribution, provenance and connoisseurship. Attribution attributes an artwork to a specific artist or school. A work is authenticated and attributed by three methods: provenance, connoisseurship and material analysis. Provenance traces the artwork’s ownership history. Connoisseurship is the informed opinion of experts. Authentication and appraisal are separate processes. Appraisal should be done by a certified professional. Aircraft valuation uses a more systematic approach: aircraft type and model, age, hours flown, maintenance history and market demand, as well as regulatory and legal registration considerations. Appraising aircraft can be done by a certified appraiser. For other unique assets, such as luxury yachts, specialized yacht surveys are completed where the yachts undergo a thorough inspection process. Due Diligence and Risk Assessment Financing unique assets has risks. Artwork may be stolen or faked; therefore, lenders must verify the work’s authenticity and title. Due diligence requires an online search in at least one stolen art database. Because these databases are not complete, a thorough search of an artwork’s provenance should be conducted. Aircraft have high maintenance costs, are highly mobile and can cross international borders, increasing financiers’ risk for non‑compliance with complex foreign regulations. Domestic and international laws aim to reduce these challenges, but recovering assets after a loan default can be difficult. In the U.S., the Uniform Commercial Code (UCC), the Transportation Code and Section 1110 of the Bankruptcy Code each have specific requirements to secure a lender’s interest in the collateral. International, relevant treaties include The Convention on International Civil Aviation, The 1948 Convention on the Financing Unique Assets Aircraft, Artwork and Specialized Collateral By Vincent Aiello, Attorney, Spencer Fane LLP LEGAL EAGLE SPOTLIGHT 16 | The Show-Me Banker Magazine
International Recognition of Rights in Aircraft, The 1933 Convention for the Unification of Certain Rules Relating to the Precautionary Attachment of Aircraft, and The Cape Town Treaty. U.S. aircraft registration is governed by the Federal Aviation Administration, while the Cape Town Treaty offers an international registration framework. Lenders do not want the bankruptcy or insolvency of the owner or any equity investors to jeopardize their interests in the aircraft or artwork. Lenders should consider various Ownership Trust structures, ensuring the title holder to the aircraft or artwork is bankruptcy remote. Financing Structures, Collateralization and Ownership Trusts The financing structure of unique assets varies but generally follows a traditional approach of utilizing a loan, note and security agreement. UCC filings will secure a lender’s interest; however, lenders should consider utilizing an Ownership Trust when suitable. An Ownership Trust permits a lender to have a trust and trustee hold title to the assets. This structure facilitates asset recovery and liquidation in the event of borrower default or insolvency. In these structures, the Ownership Trust: • Borrows most of the funds (typically 80% to 85%) needed to finance the acquisition of the asset; • Holds the legal title to the asset for the benefit of the lender; and • Leases or grants use of the unique asset to a business entity, borrower or designee. BANCMAC COMMUNITY BANC MORTGAGE CORP. YOUR COMMUNITY BANK MORTGAGE PARTNER bancmac.com mortgages@bancmac.com 888.821.7729 | NMLS# 571147 BancMac provides correspondent and wholesale lending and is your Community Bank Mortgage Partner to help your financial institution originate fixed-rate secondary market loans including: PROGRAMS • Conventional Loans • USDA Rural Development Loans • Rural Living (Hobby Farm) Loans • VA Loans • Jumbo Loans • FHA Loans OUR PARTNERS RECEIVE: • Superior Service & Competitive Pricing • No Minimum Volumes • Significant, Non-Interest Fee Income • Non-Solicit Protections & More Art-secured loans are either collector loans or gallery loans. Collector loans provide financing to art collectors and investors, allowing them to purchase or leverage currently owned art. Terms for collector loans differ primarily depending on the collector’s net worth. Collectors may choose which artworks from their collection would serve as collateral. The maximum loan amount is based on the percentage of the collateral’s appraised value. Gallery loans are business loans to a gallery or art merchant and are usually secured by a gallery’s inventory. Collateral for gallery loans is perfected by filing an Article 9 financing statement in goods or inventory. Conclusion Lending on unique assets requires lenders and their counsel to understand each asset class’s specific characteristics, given their high value and specialized financing arrangements. A systematic approach to lending on these assets will allow lenders to maximize profits and minimize default risk. This article was drafted by Vincent Aiello, an attorney in the Las Vegas office of Spencer Fane who focuses on lending, business and trust matters for high-net-worth clients. For more information, please visit spencerfane.com. The Show-Me Banker Magazine | 17
MEET YOUR MISSOURI BANKER Jonathan Fish Regional President/SVP, BTC Bank 18 | The Show-Me Banker Magazine
Where are your main bank and branches located? What is the market like? BTC Bank is headquartered out of Bethany, Missouri, and currently has 23 locations across Missouri and Iowa. I currently work out of our Southern Region, with my home market being Pettis County. With the exception of our Columbia Branch, BTC Bank serves rural agriculture communities. What is something unique about your bank? I like to think there are a lot of things that make BTC Bank unique and separate us from our competitors. If I had to pick one, it would be our ability to maintain our hometown bank feel while we grew to a size that allows us to offer products and services to better serve our customers. How did you get started in the banking business? Short answer, my father. Long answer, when I started at Mizzou, I had planned to become a veterinarian. I had no plans that involved banking. However, after taking some business classes, I developed an interest in finance and banking. I finally decided that I could utilize a “decent” mentor and still serve the agriculture community if I pursued a career in the banking industry. What prompted you to continue the family tradition and join the bank? Like I said, I had a built in “banking mentor” that has provided a lot of knowledge and advice to me in my career. The Show-Me Banker Magazine | 19
What is the most important thing you have learned from this career so far? The numbers matter, and I won’t argue that, but the relationships are more important. I have built great relationships with customers and co-workers over the last 10 years, and I’m grateful for all of them. Those relationships have been tested and solidified during good times and bad, but being a positive asset during those times is always rewarding. Tell us about the bank’s community investment efforts. BTC Bank and its employees are truly committed to the continued success and growth of the communities, youth and customers that we serve. Whether it’s from volunteering, monetary donations or through the Area Youth Benefit Corporation, we continue to show up and show how “Community Minded” we are. 20 | The Show-Me Banker Magazine
What’s your favorite thing about your bank/banking in general? BTC Bank cares about its employees, their work experience and their lives outside of work. Management continues to provide resources/experiences to support employees and our culture, all while remaining flexible with our obligations outside of work. Additionally, I will always give a shout-out to the co-workers I work with every day! Their dedication to BTC Bank and the support they provide me is unmatched! If you didn’t have a career in banking, what other career would you choose? If I had a career outside of banking, it would most likely be in finance/business. But if I was to choose a career outside of finance, it would have been in sports performance and rehab. The Show-Me Banker Magazine | 21
Expert Web Design for Banks Redesign Checklist By forbinfi A well-designed and user‑friendly website not only captivates visitors but also drives conversions and builds credibility. If you’re looking to take your online presence to the next level, forbinfi has got the solution for you! We specialize in creating newly designed websites for community banks and credit unions and have worked with over 100 financial institutions offering custom, compliant website solutions. Your financial institution’s website is the ultimate tool to connect with your customers. We recognize that you may not know where to start when it comes to building a website. That’s where we come in. Our team is comprised of experts who understand the unique challenges that come with developing a new website. We’re here to build a custom website that gives you everything you need and more! Whether you’re a team of one who also is the lender or teller at the bank, OR you have a marketing team of two or 10, forbinfi can help. Contact our team today at www.forbinfi.com/contact-us to start a conversation with our experts about developing your new website. Websites That Captivate and Convert DCreative Design DCustom Content DUser-Friendly CMS DSecure and Compliant DMobile Friendly REFRESH YOUR SITE! 22 | The Show-Me Banker Magazine
MIBA 47th Annual Convention Golf Tournament The Show-Me Banker Magazine | 23
MIBA 47thAnnual Convention & Expo 26 | The Show-Me Banker Magazine
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Easing Into the Fall At Long Last, Some Rate Relief By Jim Reber, President and CEO, ICBA Securities 28 | The Show-Me Banker Magazine
The rate cut in September marks the first time in 4.5 years that the target rate of fed funds has dropped. Jim Reber (jreber@icbasecurities.com) is president and CEO of ICBA Securities, ICBA’s institutional, fixed-income broker-dealer for community banks. I don’t know about you, but I’ve always looked forward to the early days of autumn. I’m of a certain vintage who remembers when September and October ushered in a break from summer heat (which seems to be later in the calendar these days), and there was a certain excitement around the back-to-school activities. Football fans eagerly await gridiron season, which is now in full swing, and baseball playoffs make their return. And this for 2024: rate cuts by the Fed! It’s been a while, but the tightening cycle that started in early 2022 has finally run its course. It appears the price stability mandate has been met sufficiently for the focus to turn to maximum employment. The rate cut in September marks the first time in 4.5 years that the target rate of fed funds has dropped. This adds still more anticipation for an exciting fall. Is Your Bank Ready? But maybe we’re getting ahead of ourselves. Let’s first take stock of where most depositories stand as the fourth quarter of 2024 begins. Earnings will not be a record for the community banking industry this year, as margin pressure has taken the froth off bottom lines. Some positives are that credit quality remains outstanding despite some headline warnings. A lot of the consumer/auto/credit card delinquencies, which are on the rise, seem more to be problems for non-banks. The fear of commercial real estate’s market breakdown hasn’t happened yet either. Another piece of the earnings puzzle is interest rate risk. Community bankers have told me on many occasions since 2022 that they’ve had to get current, and informed, and creative, about managing their liabilities, which they admit had been on autopilot for years. Suddenly at the same time, the Fed was hiking at its fastest pace in over 40 years, and depositors were demanding higher rates or, even worse, moving to non-bank alternatives. Collectively, the industry shifted from being very asset-sensitive to about neutral between 2020 and today. What’s Next? So earnings are, well, meh, but delinquencies are still very low, and we think rate risk is under control. What to do about all this? If the bond market and the Fed are to be believed, and I’m not saying they are, we will finally see the interest rate curve assume a positive slope. And that’s when the fun should really kick in. But (there’s always a “but” in these columns) be warned: multiple rate cuts, and a normal yield curve, will probably have less upside this time around for community banks, at least initially. In a “bull steepener,” which is what we’re likely to experience, short rates fall, and longer rates fall less or longer rates rise. Either way, since most community banks’ portfolio’s effective durations are longer than normal, the price appreciation of your current bonds may not be what you’re hoping for. (To put some numbers on it, a typical bank’s duration is now about 4.3 years versus about 2.5 years back in 2020, according to Stifel). Things Looking Up In spite of the buzzkill of the previous section, a community bank’s universe just performs better when short rates are below long ones. Regardless of which part of the balance sheet you’re responsible for, it’s easier to price in relative risk/reward. For well over a year, the highest-yielding bank-suitable bonds have been CMO (collateralized mortgage obligation) monthly floaters. That’s fun for a while, but that’s not how financial instruments are supposed to work longerterm. Lower risk (i.e., lower duration) is supposed to produce lower yields. I also suspect that “betas” for community bank deposits will be friendly into 2025. Interest rate models weren’t built for 2022-23, in which overnight rates spiked 525 basis points (5.25%) in just 16 months. The initial bulge in net interest margins (NIMs) started to shrink early in 2023 and are now about where they were before the tightening cycle began. From conversations I’ve had with community bankers, anecdotally and otherwise, cost of funds should begin to retreat. Deposit managers have demonstrated their ability to manage NIMs through plenty of rate cycles and rate shocks, and I see no reason to doubt their capabilities now. The big picture is the industry has held up remarkably well through a generation-high interest rate environment that resulted from Fed tightening activity, and inflation, that most of today’s community bankers have never managed through. I’m looking forward to the return of a number of fourth-quarter traditions in 2024: sweatshirts, football, leaves, crisp air and an interest rate environment that supports the community banking model. Balance Sheet Webcast in November ICBA Securities and its exclusive broker, Stifel, will host their Quarterly Bank Strategy webinar on Nov. 7 at 1 p.m. Eastern. Several strategists and economists will make presentations, and up to 1.5 hours of CPE are offered. For more information and to register, contact Jim Reber or your Stifel rep. The Show-Me Banker Magazine | 29
Have you ever thought about what you may be doing to secure our world? Think about it. As technology advances, what are you doing to protect yourself from online threat actors and malicious ransomware attacks? Without a doubt, ransomware has become the most visible cyber threat to our nation’s financial networks. While most financial institutions have implemented robust cybersecurity practices, the rapid advancements in cyber threats and their potentially devastating consequences require that every financial institution review and update its defenses constantly. The exact same is true for you and your family. Securing Missouri to Help Secure Our World By Robert Graham, Cybersecurity Advisor, Cybersecurity and Infrastructure Security Agency 30 | The Show-Me Banker Magazine
Additionally, CISA is committed to working collaboratively with those on the front lines of elections — state and local governments, election officials, federal partners, and private sector partners — to manage risks to the nation’s election infrastructure. We provide resources on election security for both the public and election officials at all levels and will remain transparent and agile in our vigorous efforts to protect America’s election infrastructure against new and evolving threats. The bottom line is the Secure Our World resources offer a diverse range of helpful products tailored to address the cybersecurity needs of individuals, families, businesses and municipalities. Secure Our World offers tip sheets that provide an overview and deep dive into the four easy ways to stay safe online I just mentioned. It even offers select cybersecurity resources in multiple languages. The Secure Our World web page is designed to make it easy for users to find the specific resources they need through a user-friendly website that simplifies the process. Everyone can take steps right now toward a more secure future. For more information about the Secure Our World program and for ideas on how to keep the conversation going year-round, explore our free resources at www.cisa.gov/secure-our-world. Together, we will secure Missouri and secure our world. Robert Graham is the Missouri cybersecurity state coordinator for the Cybersecurity and Infrastructure Security Agency (CISA). CISA is the operational lead for federal cybersecurity and critical infrastructure security and resilience. One way the Cybersecurity and Infrastructure Security Agency (CISA) is working to ensure a secure and resilient critical infrastructure for everyone in the Show-Me State is through our Secure Our World program, and Secure Our World can be a fantastic way for you to bolster your own cyber defense. The Secure Our World program aims to help change bad cybersecurity behaviors and begin to shift the needle towards a more cyber-secure population. It leverages partnerships and cooperation between government agencies, businesses, tribes, industry partners and cybersecurity experts to ensure access to up-to-date resources for everyone. Although October is Cybersecurity Awareness Month, the Secure Our World program recognizes that we shouldn’t just focus on cybersecurity for one month a year; instead, cybersecurity requires an ongoing discussion year-round. Technology is part of everything that makes our modern world go round — from our elections to our workplaces, from financial transactions to our classrooms. In short, we rely on our technology to work when we need it, but the technology that makes our lives easier has also made us more vulnerable to criminals. With that said, if every reader did these four simple things outlined by the Secure Our World program, it would make America exponentially more secure: • Use strong passwords, meaning long, random and unique to each account, and use a password manager to generate them and to save them, if possible. • Enable multifactor authentication on all accounts that offer it. We need more than a password on our most important accounts, like email, social media and financial accounts. • Recognize and report phishing, or as we like to say, think before you click. Be cautious of unsolicited emails, texts or calls asking you for personal information. Resist the urge to click on unknown links or open attachments from unknown sources. • Update software regularly. In fact, enable automatic software updates on all devices so the latest security patches are continuously up to date. For individuals in Missouri, we want to emphasize the importance of securing personal accounts. The Secure Our World resources offer guidance on personal device safety, safe internet browsing practices, social media usage and protecting personal information online. In addition, we recognize the significance of protecting our children online. Secure Our World includes support and resources specifically for parents. It provides guidance on implementing parental controls, fostering safe digital habits and ensuring a secure online environment for children. It also offers animated videos explaining easy-to-follow instructions on how to adopt safe online practices for young people. Small- and medium-sized businesses face unique challenges, so we are working to help them Secure our World by offering tools and resources that can help boost their cybersecurity defenses and minimize the risk of data breaches and cyberattacks. This makes their businesses more secure, and it makes customers, employees and our communities safer. The Show-Me Banker Magazine | 31
Mark Weitekamp, managing director for Forvis Mazars, presenting the Community Impact Award to F&C Bank. F&C Bank Receives Community Impact Award Forvis Mazars is proud to jointly present the Community Impact Award with the Missouri Independent Bankers Association for the 18th year in a row. To be considered for this award, there are three main pillars that the institution must follow: involvement from the community, involvement from the financial institution and an economic impact. We had several amazing submissions this year, which made it difficult for our panel of judges! This year’s award was presented to F&C Bank for their submission titled “Big Brothers Big Sisters Big Auction Honoree.” 32 | The Show-Me Banker Magazine
2024 MIBA PAC Honor Roll September 1, 2024 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. 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 • Bank of Advance • Bank of Iberia • Bank of Old Monroe • Bank of Salem • Belgrade State Bank • Blue Ridge Bank and Trust Co., Independence • BTC Bank, Bethany • Community Bank of Pleasant Hill • Community Bank of Raymore • Community State Bank of Missouri, Bowling Green • Citizens Bank, New Haven • Exchange Bank of Missouri, Fayette • Exchange Bank of Northeast Missouri, Kahoka • Farmers & Merchants Bank, St. Clair • farmbank, Green City • FCNB Bank, Steelville • First Bank of the Lake • First State Community Bank, Farmington • Jonesburg State Bank • Metz Banking Company, Nevada • Midwest Independent BankersBank, Jefferson City • Midwest Regional Bank, Clayton • New Frontier Bank, St. Charles • Northeast Missouri State Bank, Kirksville • Peoples Bank & Trust Co., Troy • Peoples Bank of Altenburg • Peoples Bank of Wyaconda, Kahoka • Peoples Saving Bank, Hermann • Preferred Bank, Rothville • Regional Missouri Bank, Marceline • Security Bank of the Ozarks, Eminence • The Missouri Bank, Warrenton • Town & Country Bank, Salem PLATINUM LEVEL $750 and up • Sherwood Community Bank, Creighton • United State Bank, Lewistown GOLD LEVEL $400-$749 • Community Point Bank, Russellville SILVER LEVEL $200-$399 • 1st Advantage Bank, St. Peters • Bank of Crocker • Chillicothe State Bank • Farmers State Bank, Cameron • Silex Banking Company • State Bank of Missouri, Concordia The Show-Me Banker Magazine | 33
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