Writer: Douglas Farmer

Appropriate supervision can lighten regulatory burden, Fed chief says

If the Federal Reserve continues its emphasis on regulatory reform, community bankers may not find much in the exam process to complain about. They already largely welcome the exams and regulators themselves, finding fault with only the redundant and cumbersome natures of some of the compliance requirements, according to a national survey of 611 community bankers conducted by regulators from the Fed and state regulatory agencies.

The survey was released at the fifth annual 21st Century Research and Policy Conference hosted by the Federal Reserve Bank of St. Louis and the Conference of State Bank Supervisors, conducted Oct. 4-5 at the St. Louis Fed. [Continue]

Patience, outreach, lead M&A strategies discussed at BHCA Seminar

Most of the many merger and acquisition strategies discussed during the Bank Holding Company Association’s Fall Seminar, “Buy, Sell or Hold: Strategies for Success,” sounded familiar to Lynn Fuller.

The president and CEO of Heartland Financial, Dubuque, Iowa, has made acquisitions a habit for more than three decades. Fuller described Heartland’s growth from less than $200 million in assets to $8.2 billion during one of the general session presentations at the seminar held at the Hyatt Regency hotel, Bloomington, Minn., Oct. 2-3.

“I said to my father, ‘We better giddy up or get out,’” Fuller said. “Our goal back then was to get into the top 100 banks. Today, we’re somewhere between 90 and 80, depending on how our positions go. … Starting from less than $200 million, you can imagine that was a long haul.”

The Federal Reserve Bank of Chicago gave Fuller the push he needed to pursue acquisitions when it predicted massive consolidation coming. [Continue]

CBAI bolsters policy independence, urges reg relief effort

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.” [Continue]

Big shoes to fill, Lounsberry readies to lead the CBAI

Kraig Lounsberry will take over as president of the Community Bankers Association of Illinois on Jan. 1. Only one person has ever held the position, Bob Wingert for the past 43 years. Lounsberry spoke with NorthWestern Financial Review writer Douglas Farmer. [Continue]

Finding deposits becomes Wisconsin banker’s specialty

Oregon Community Bank’s management could see economic growth taking hold in the Madison area. A suburb of about 10,000 people 10 miles south of the Wisconsin capital, Oregon may be an unlikely place to spot the early bounce back from the recent recession, but Oregon Community President and CEO Steve Peotter was confident the incoming loans in late 2013 and early 2014 were not outliers. [Continue]

KSOP expertise makes Minnesota banker indispensable

When a Safeway plant in southwest Minnesota closed nearly four decades ago, Connie Lonneman needed to find a new job. Just a few miles away, First State Bank Southwest, then based in Rushmore, Minn., had an opening. Lonneman began as a do-it-all, working as a teller, secretary and bookkeeper, adding in whatever else needed tending but might not have a specific title. [Continue]

Financial literacy remains focus for Wisconsin EVP

Jenny Jakel has been a part of AbbyBank for 41 years, a period in which the Abbotsford, Wis., bank has grown to $458 million from $13 million. Yet, Jakel’s preferred focus does not involve any discussion of profits. For that matter, it hardly deals with AbbyBank’s current customers. [Continue]