Tuesday, March 19, 2013

Congratulations Jack Hartings!

ICBA announced Jack Hartings (President & CEO, The Peoples Bank Co. - Coldwater) as Vice Chairman on the ICBA Executive Committee during the 2013 ICBA National Convention and Techworld in Las Vegas last week.

Wednesday, February 27, 2013

Bob Palmer Testifies at the Ohio Insurance & Financial Institutions Committee

The Ohio Senate
February 27, 2013
Briefing From The
Good afternoon Chairman Hughes, Vice-Chairman Bacon, Ranking Member Turner and members of the committee.
My name is Robert L. Palmer. I am President and Chief Executive Officer of the Community Bankers Association of Ohio (CBAO).  CBAO’s sole purpose is to exclusively represent the interests of Ohio’s 218 community banks who serve their communities through 1,229 locations with over 14,600 employees, with more than $59 billion in assets, $46 billion in insured deposits, and $39 billion in net loans.

Personally I have had the privilege of being a part of the community banking industry for almost 40 years having served in positions ranging from teller to executive positions as President and Chief Executive Officer of two different community banks, and a director of four different community banks.
At CBAO we believe we are more than just an association as we were organized to establish and maintain an informed network of independent community banks in the state of Ohio that will have the influence and commitment to effectively serve, protect and promote the interest of the community banking industry.  We are always looking to the future as we realize that we cannot change the past. In the 38 years of our existence, much has changed, but we still remain focused on our original mission of increasing the value of independent financial institutions.
In December, 1973, four Ohio community bankers met to discuss the possibility of establishing an association for the independent community banks of Ohio. At that time, there was a tremendous amount of merger activity occurring in the state. These four community bankers realized that one of the most important benefits of an association would be group purchasing to obtain products and services at a competitive price. Group purchasing strength would allow community banks to remain competitive, slow the merger rate, and preserve a strong community bank presence in Ohio. CBAO and its subsidiaries continue the mission of keeping community banks competitive while preserving a strong community bank presence in Ohio. We continue to offer the highest quality products and services, ranging from insurance to credit cards, with negotiated discount and fee income opportunities, which increase our community banks’ bottom line. We offer unique and useful networking opportunities through our regional meetings and our annual convention and trade show. We offer to our community banks high quality education and training seminars and web casts.
CBAO maintains a strong legislative and regulatory focus in Ohio and Washington D.C. Jon D. Myers and Associates has represented CBAO for the last 7 years. As a former member of the Ohio General Assembly, Jon and his associates bring a wealth of knowledge to our organization and the legislative process.
In Washington DC, we partner with The Independent Community Bankers of America, the nation’s voice for nearly 7000 community banks of all sizes and charter types. ICBA also is dedicated exclusively to representing the interests of the community banking industry, with nearly 5000 community banks, representing 24,000 locations nationwide and employing 300,000 Americans. ICBA community banks hold $1.2 trillion in deposits and $750 billion in loans to consumers, small businesses and the agricultural community.
Many of you may ask what a community bank is and that is a fair question. Generally, community banks have assets of $10 billion or less, (most community banks range in assets from $100 million to $400 million). The criterion to be designated as a community bank is as follows:
  • Must be operated under the control and direction of an independent management team with decision-making ability in the communities that they serve.
  • Must have a primary focus of investing local deposits and making loans for the financial and social betterment of the communities that they serve.
  • They focus attention on the needs of local families, small businesses, and farmers.
  • They are known for their quality service and personal attention.
  • They offer nimble decision-making on loans as they consider character, family history and discretionary spending instead of relying solely on impersonal criteria such as credit scoring.
  • Must be a commercial bank, savings bank, mutual bank, or a savings and loan association.
  • Must have an independent bank charter from at least one of the appropriate regulatory agencies.
  • Must be insured by the Federal Deposit Insurance Corporation. (FDIC).
  • Must represent and promote the independent community bank philosophy.
Community bankers are very involved in their communities, often serving on the local school board, volunteering on the fire department, or actively volunteering in their local service clubs.
The community bank business model is significantly different from other banks.  We focus on the unique needs of our communities, build strong customer relationships which help attract local retail deposits, take deposits from our local communities and recycle them back in the form of loans.  There is no denying that community banks are the engine that drives the economic growth in our communities across Ohio.
CBAO works with legislators and regulators to recognize these differences.  Community banks cannot and should not be required to meet the same requirements of the larger more complex banks as we strongly believe that, “one size cannot and does not fit all.”
Mr. Chairman and members of the committee, thank you for allowing me the opportunity to provide an overview of CBAO and the community banking industry and the unique role we play in our communities and Ohio’s economy.
I would be pleased to answer any questions you may have.

Congratulations to the Ohio community bankers selected to serve on an ICBA committee this year!

Steve A. Burns (Greenville National Bank, Greenville) - Subcommittee on Tax, Subcommittee Member

Thomas G. Caldwell (The Middlefield Banking Company, Middlefield) - Subcommittee on Lending, Subcommittee Member

Eric A. Gillett (Sutton Bank, Attica) - Bank Operations & Payments Committee, Committee Members

Jack A. Hartings (The Peoples Bank Co., Coldwater) - Policy Development Committee, ICBA Vice Chairman; Large Community Bank Council, Executive Committee Liaison

Shon B. Myers (Farmers & Merchants Bank, Miamisburg) - Subcommittee on Regulation Review, Subcommittee Member

Barry Parmiter (Community Savings, Caldwell) - Bank Operations & Payments Committee, Committee Members

Friday, February 22, 2013

Save the Date for CBAO’s 39th Annual Convention!

The dates have been set for our 39th Annual Convention & Trade Show! We will we back at The Lodge at Sawmill Creek for another year of education, networking and a bit of fun. Be sure to mark your calendar for August 6-8, 2013 to join us!
Keep an eye out for our new agenda (it will be released in the next couple weeks) - we've made some noteworthy changes, including moving our golf outing to the the day prior (August 6)!
We look forward to seeing in August!

Wednesday, February 13, 2013

Dodd-Frank Update: Characteristics of profitable, thriving community banks revealed in Fed research

Banking, Inside the Beltway
By: Nathan Marinchick

New regulations, heightened supervisory expectations and challenging economic conditions continue to weigh on community banks as they work to help their communities rebuild in the wake of the economic crisis. However, recent research from the Federal Reserve shows community banks can thrive even under adverse circumstances. Fed Governor and former community banker Elizabeth Duke outlined the characteristics that are strongly linked to banks’ success during a speech at the University of Georgia’s Terry College of Business in Duluth, Ga., on Feb. 5.

For the rest of the story: http://www.doddfrankupdate.com/DFU/ArticlesDFU/Characteristics-of-profitable-thriving-community-b-57190.aspx

Thursday, February 7, 2013

Ohio Treasurer of State Praises CBAO for Leadership

In a CBAO-hosted webinar held February sixth, and attended by over fifty community bankers, Ohio Treasurer of State Josh Mandel praised the Community Bankers Association of Ohio for its leadership and advocacy in developing the Star Plus program. Through this program cash balances, including tax funds collected in Ohio and held by local government entities, are placed with community banks, with a priority to have funds placed in Ohio banks. These funds thereby become available as loans to Ohio businesses and consumers, benefiting the communities where they were collected. Two hundred and fifty-three government entities disbursed throughout the state, and thirty-five banks headquartered in Ohio currently participate in the Star Plus program with new banks and entities joining each week.

Community banks can benefit from the program by using it as a stable and low-cost source of deposits, and as a tool to manage liquidity by moving funds both ways through the account. For a bank, participation is simple and routine. There is no initial cost or extraordinary paperwork involved in getting started or maintaining an account, it is just a matter of opening and servicing a business deposit account as the bank would for any other new customer.

State Treasurer Mandel has endorsed the principal of keeping funds collected within local communities working in those communities by supporting and promoting this program. It is important that all Ohio community banks respond and support this principal (a definitive principal of community banking!) by participating in the program. To open an account, request additional information, or obtain a copy of the presentation, you may contact Kyle Moseman at CBAO (kmoseman@cbao.com 614-846-2238) or Lindsay Stavola at StoneCastle Partners (lstavola@scpny.com 866-343-5516).

Wednesday, February 6, 2013

CBAO needs your comments for upcoming OCC Meeting!

CBAO has been invited to attend an OCC Central District Meeting, with District Deputy Comptroller Bert Otto; Senior Deputy Comptroller, Jennifer Kelly, Ombudsman Larry Hattix and other senior officials, in Chicago, IL on Thursday, April 4, 2013.

The meeting will cover the OCC/OTS integration, the appeals process, lessons learned from bank failures, legal update on pending regulatory matters, Dodd-Frank, examination process, and other supervisory and regulatory items of interest. CBAO has requested that those in attendance also discuss the following.

- Strategic Risk

- Credit Risk

- Credit Risk Management Systems

- Trends in CAMELS Ratings

- Increase focus on Information Technology Ratings

- Improved Problem Bank Trends

- Compliance

- Accounting

- Investment Grade Standards

- Credit Concentrations

We ask that you please let us know if you have other areas that you would like to have discussed or you can offer any comments that would strengthen the value of our conversation.