As the year draws to a close, it is a fitting time to reflect on the challenges and triumphs that have defined the landscape of community banking in the past 12 months. As President and CEO of the Nebraska Independent Community Bankers, I find myself contemplating the unique journey that our member banks have undertaken in the uncertain year that was 2023.
This year has been marked by a series of unprecedented events, from the bank failures in March to the increased rate environment and the ever-escalating regulatory scheme. However, amidst the challenges, community banks have demonstrated remarkable resilience. They have adapted swiftly to the changing circumstances, implementing innovative strategies to support their customers and communities, all while trying to maintain a profitable business.
The regulatory landscape this year has been dynamic, to say the least. It seems the federal government never stops when it comes to pushing new regulations onto community banks, with absolutely no recognition of the burden that keeps compounding under these regulations. Through engagement with regulatory bodies by NICB and ICBA, community banks have made strides in pushing back on the regulatory burden and contributed to shaping policies that align with their unique needs. Two successful examples of this include community banks being exempt from the special assessment to the Deposit Insurance fund following the large bank failures and Congress passing a resolution to rescind the CFPB’s rule on Section 1071.
Although regulators can be a drag, one of the most inspiring aspects of this year has been witnessing the unwavering commitment of community banks to the development of the areas they serve. Whether through small business loans, home mortgages, or community outreach programs, community banks have stood as pillars of support, recognizing the importance of fostering economic growth and stability on a local level. I’m fortunate to have seen some of these examples firsthand as I made member visits across the state this year. Each time, I’m reminded of what makes community banks unique: they just care.
As we bid farewell to 2023, it is important to celebrate the achievements of community banks throughout the year. Many have successfully navigated economic uncertainties, expanded their customer base, and continued to make significant contributions to the communities they call home. Their dedication to the principles of community banking serves as a testament to the enduring strength of the sector.
As we turn our gaze toward the future, there is a sense of optimism within the community banking sector. The challenges of the past year have forged a path for growth and evolution. Community banks are poised to play an even more integral role in the financial landscape, and the NICB is committed to supporting them on this journey.
In closing, the end of the year is not just a time for reflection but also a moment to express gratitude for the resilience and commitment demonstrated by community banks across the nation. As we stand on the cusp of a new year, the Nebraska Independent Community Bankers remains steadfast in its dedication to advocating for the interests of its members and fostering a thriving community banking sector for the benefit of all in the state.
