Pub. 1 2022 Issue 3

Deciding which fintech to partner with in today’s regulatory environment can be a difficult road to navigate, especially moving forward during rocky economic times. That’s why it’s more important than ever for community banks to perform comprehensive due diligence on any third-party organization that provides services to them.

https://financialedinc.com/?a=nicb

Now that interest rates are beginning to move up, many bankers are blowing the dust off their adjustable-rate mortgage (ARM) loan offerings. Interest rates for fixed-rate loans have been so low for quite some time, which made them much more appealing to mortgage loan customers. But now, with rates starting to increase, the lower initial rates of ARM loans are beginning to look more appealing, at least to some borrowers.

The people behind a community bank make it what it is. Our relationships with our customers begin and end with us, so it’s our obligation to ensure our employees embrace our values and care about the community. To do that, we need to draw in team members who are not only seeking nine-to-five jobs but also are striving to become community continuators.

It has been a productive year of work with the Nebraska Legislature for the Nebraska Independent Community Bankers. Once-in-a-generation legislation was passed to lower corporate and personal income taxes and allocate federal stimulus funding for housing, childcare, and community development. For all the progress made, this session should also be noted for the harmful legislation that did not pass – a bill to change bank franchise taxes and a constitutional amendment to move Nebraska to a consumption tax system. This session was also marked by the addition of one of NICB’s own members to the Legislature with the appointment of Senator Mike Jacobson. During the general election on November 8, Nebraskans will elect a new governor and at least sixteen new senators for the 2023 session. The work will be ongoing to build new community bank champions and educate policymakers.

The financial press, economic commentators and social media sites have used a collection of terms this year that convey a certain image of market values for investment securities: “Plummet,” “Underwater,” “Leaking oil,” and “Nosedive.” I think you get the picture.

The new era of opening accounts online is here. Over time, more people have been opting to open accounts online instead of in person at a branch, as some of us might be used to. And with online account opening come uncertainties in staying compliant with Bank Secrecy Act requirements.

In today’s climate, the road ahead feels uncertain. Between growing inflation and fluctuating interest rates, the future may seem more clouded than ever, leaving us to ponder, “Where’s the crystal ball when you need it?”

I’ve now been on board as President and CEO for a few months and have enjoyed diving into all the moving pieces of the NICB, including getting to know some of our board members better. No doubt, there is still a lot to learn and appreciate about running this long-standing organization. My main takeaway thus far, however, is that the “community” in NICB is more than just a part of the organization’s name.