With a vote of the membership, the Community Bankers Association of Illinois strengthened its resolve against a merger with another banking association. The vote took place during CBAI’s annual convention at the Crowne Plaza hotel in Springfield, Ill., Sept. 14-16. The CBAI unanimously approved an amendment to its constitution making it significantly more difficult to change association policy on bank structure or to merge with another association.
Previously, only 60 percent of the member banks in attendance needed to approve any change, but the amendment raised that figure to 80 percent. Proposed changes to matters of policy consistent with CBAI precedents still need only 60 percent approval.
“It elevates the threshold on issues of that magnitude,” outgoing CBAI President Bob Wingert said, leading the final convention of his 43-year career. “In other words, there has to be a meaningful consensus to take that course of action.”
Incoming CBAI Chairman Gregg Roegge, president and CEO of Rushville State Bank, underscored the reasoning behind the amendment’s bump. “We need a CBAI and an Independent Community Bankers of America to focus resources on our unique needs, to represent us in all branches of government, to educate and to inform us,” Roegge said, “to use our collective leverage so we can continue to operate as independent, competitive and prosperous institutions.”
Tom Marantz, president and CEO of Bank of Springfield, concluded his CBAI chairmanship at the annual meeting. His father, Jack Marantz, was the association’s seventh chairman in 1981. Back then, Tom Marantz said he did not see reason to spend so much time on the fledgling association. Instead, he wanted the then-$21 million bank to pursue more loans and personal chances to grow.
“Why was he wasting his time with this?” Tom Marantz asked.
The Bank of Springfield is now a $948.8 million institution, and Marantz credits the CBAI with some of that success.
“Today, I feel quite differently,” Marantz said. “This organization thrives on volunteerism. In every aspect of our operation — undiluted advocacy, targeted education and quality collaboration — it is the willingness of volunteer bankers to commit time, thought and energy that makes us successful.”
Marantz said today 175 bankers from 115 Illinois banks serve on CBAI boards and committees. He said Illinois community bankers must continue to advocate for reg relief and smart government. On the state level, he noted Illinois’ financial health is the worst in the country, with a state debt burden equal to $12,000 for every citizen in the state.
“As lenders and investors in our communities, we have a big stake in the outcome,” Marantz said in reference to banker advocacy efforts at the capitals in Springfield and Washington. “Our operations benefit from economic growth and job creation, but that’s not happening here…We owe it to ourselves, our employees, our stockholders and our customers to engage in this effort to resolve our state’s financial crisis.”
Furthermore, regarding reg burden, Marantz said: “We have a golden opportunity in this session of Congress to shed the yoke of regulatory burden so we can focus more resources on serving our customers and enhancing our franchise values.”
Roegge picked up on Marantz’ comments. “Let’s fully unleash the grassroots power of this profession to enact the key provisions of ICBA’s Plan for Prosperity during this session of Congress,” he said. “Let’s create an environment so business friendly that new shareholders see opportunity in the traditional community bank business model and in new bank formations.”