OVER THE HORIZON

With increased interest rates over the past year, seasoned bankers have advised me that the conditions we see today are what banking is supposed to look like. That is why we are saying around the OBL this year that we are back to the business of banking.

Going back to the basics reminds me of great memories in graduate school at Ohio University. My two internships were meaningful, memorable and unquestionably enabled me to get to where I am today. One was in Washington, D.C. with the U.S. Senate Joint Economic Committee’s Republican staff. Being on committee staff is a plum assignment. I quickly learned, thanks to a professor who was a mentor and did a wealth of research for the JEC, this first-generation college kid was selected over numerous well pedigreed students from some of the most prestigious universities in the country. That realization taught me the power of mentorships and to never forget from whence you have come.

Every month, our small staff had a private briefing with Federal Reserve Chairman Alan Greenspan prior to his testifying before the full committee. Sadly, with the passage of thirty years, I have forgotten more than I remember. What I do remember was being in awe with the power that position yields. Additionally, Mr. Greenspan was incredibly warm and gracious to me. I also recall how artfully he danced with his responses to committee members. The staff economist whom I supported had an especially close relationship with Treasury Secretary Nicholas Brady. Numerous times I took pride in hearing him on TV interviews or testifying in committee delivering stats that I had researched. Yet, the most indelible memory was the recognition of the Committee’s administrative staff that I was another humble Bobcat willing to do whatever was asked of me. It was the basics. The unglamorous grunt work had to be accomplished and I was there to get it done.

New Normal

We were excited in February to host the annual OBL Economic Summit in person after being virtual the past two years. This event brought the OBL full circle to being back to normal, as this was the last event we were able to hold in person before the pandemic in 2020. We look forward to seeing strong banker attendance at all OBL events this year as we settle into a new normal. The 2023 OBL Economic Summit was also noteworthy because we partnered with The Ohio Society of CPAs. If you know anything about me, you know I am all about collaborating. There is power in working together to maximize synergies and deliver greater member value. A number of bankers are CPAs and many more have accounting backgrounds plus the local accountant is great business referral source. All in all, this partnership made a ton of sense.

Back to the Business of Banking

Members tell us they are focusing on things like liquidity, interest rate risk and loss mitigation. These basics of banking have not particularly been in the forefront given years of historically low interest rates and the unique circumstances the pandemic brought to our industry. Returning to the basics can bring comfort, especially since the future holds uncertainty. There are a handful of bankers who are reporting that lending pipelines have reduced dramatically. This is certainly the case with residential mortgages, but some are even seeing similar softening with commercial lending.

Though conditions can change quickly, Ohio banks are cautionary in not “willing us into a recession.” As the late Tom Farin taught generations of bankers at the Graduate School of Banking at Wisconsin, have those CD specials available. Maybe modest rates are posted in the lobby and you have that 4 percent CD ready at a moment’s notice to keep a relationship or make a new one. Who knew a year ago that 2023 would have bankers talking about liquidity shortages after being so flush over the past three years? Some of the nonbanks are even publishing 5 percent rates and Star OHIO is giving bankers fits again.

A tight labor market and wage pressures continue to create headwinds for many Ohio banks. Banks are especially bracing for such pressures to increase with the tremendous Intel economic development project underway in Central Ohio. We are grateful that Ohio’s community banks invest in their employees by leveraging OBL as their “go to” educator. Additionally, though improving, supply chain issues continue to raise concerns with the stability of some bank customers. Concentrations in hospitality and large commercial real estate developments are also worth keeping eyes on. The good news is that Ohio banks are well reserved so they have the cushion should economic conditions get bumpier.

Meet the New Chair

Each year takes on a new spin with the turnover of chairs who generously give back to our industry with thoughtful leadership and selfless involvement. This year we are blessed to have Brian Young. I have had the pleasure of working closely with Brian over my twenty years with OBL. We have grown up together, professionally, despite taking different paths within our industry. He has strong convictions and is extremely passionate about our industry. He is also a sound leader and espouses the importance of investing in his team at the bank. I am confident he and the entire OBL Board of Directors will give us exactly what we need over the year ahead.

Back to the Basics in Government Relations

By the time this hits your desk, Evan and I will have already been to Washington, D.C. twice accompanied by bankers. Our third trip will come at the end of March. If you missed out on these, stay tuned because we will be back in our nation’s capital a lot this year. With new legislative sessions commencing in Columbus and Washington, D.C., we are getting back to the basics in government relations as well. Given the sizeable turnover at the Statehouse and on the Hill, it is imperative to have four lobbyists on staff focusing a great deal of attention in this critical part of every trade association’s mission.

Ohio has three new Members of Congress and a new U.S. Senator. Relationship building is key so that they look to OBL and its members as value-added resources on banking matters. Senator Sherrod Brown continues as Chair of the U.S. Senate Committee on Banking, Housing and Urban Affairs and is now joined by Senator J.D. Vance. Only one other state has both of its Senators on this powerful committee (Montana). We are hopeful they can finally enact the SAFE Banking Act addressing a crucial public safety issue with cannabis-related businesses. There also appears to be bipartisan interest in leveling the playing field and ensuring consumer protections with cryptocurrency. OBL has been widely quoted in the media advocating for both of those. We will also continue unwavering pushback on federal regulators’ harmful messaging that has been spewed at our industry the past two years. Banker relationships with state elected officials are critical as well. There are potential risks at that level with government efforts to supplant bank decision making, which could cause grave harm on a bank’s ability to serve its community.

A Look Inside the Association

At the OBL we are back to the basics as well. Comprehensive strategic planning is underway. In my tenth year of leading the OBL, it feels like the right time to assess what is most important to ensure the Association’s sustainable relevance in maintaining a strong Ohio banking industry. We will not take our eyes off the ball of OBL’s mission – advocate, collaborate and educate -- as we consider where we need to pivot so we can be even more effective in supporting our members.

Probing conversations with OBL board members and amongst the management team have been affirming. A great amount of respect has been built over our history. Demand continues to be strong for what OBL does with and for the banks we serve. Plus, the Association is in a position of strength financially, in the percentage of banks who are members, size and experience of the staff, credibility in the governmental arena, number of Endorsed Business Partners as well as Affiliate Members who add great value and the depth plus breadth of banker professional development programming. I am grateful for the solid votes of confidence that what the OBL team works on so passionately each day matters. I applaud their willingness to continue striving for excellence because we can do even better to improve the member experience while also achieving more operational efficiencies.

Additionally, this year, a material investment is being made in our own professional development. OBL has relationships with so many impactful speakers that we are “putting our money where our mouth is” to leverage some for our own good. Our team of twenty-one employees has an energy in support of OBL’s mission that is palpable.

It has reenergized me in many ways. The OBL staff’s deep bench has long been an unparalleled differentiator. Intentionally focusing on our professional development will give us insights and tools to better serve Ohio’s great banks and thrifts. I am excited by the team’s interest in upping our game to further solidify our place as an indispensable partner for Ohio’s banks when it comes to government relations advocacy, products/services solutions, and banker professional development.

Going back to the basics might not sound all that exciting, yet it can be a valuable exercise to remember the “why” and ensure the efficacy moving forward in a rapidly changing world. You have the OBL’s continued commitment to look out further over the horizon as we get back to the basics in ensuring our great industry’s sustainability.

Michael J. Adelman President & CEO, Ohio Bankers League

Michael Adelman President & CEO madelman@ohiobankersleague.com

(614) 340-7616

Gauri Airi Executive Director, Ohio Bankers Benefits Trust gairi@ohiobankersleague.com

(614) 340-7598

Carol Allerding Education Manager callerding@ohiobankersleague.com

(614) 340-7618

Brenda Arnold Products & Services Manager, OBL BankServices barnold@ohiobankersleague.com

(614) 340-7620

Steve Bare Database Manager sbare@ohiobankersleague.com

(614) 340-7607

Don Boyd Vice President of State Government Relations and General Counsel dboyd@ohiobankersleague.com

(614) 340-7608

Michelle Crume Senior Vice President, OBL Executive Director, OBL BankServices mcrume@ohiobankersleague.com

(614) 340-7622

Taylor Daniel Executive Assistant tdaniel@ohiobankersleague.com

(614) 340-7602

Cynthia Dondrea Controller cdondrea@ohiobankersleague.com

(614) 340-7604

Rita Hinkle Administrator, OBBT rhinkle@ohiobankersleague.com

(614) 340-7609

Paige Houlihan Products and Services Coordinator, OBLBankServices phoulihan@ohiobankersleague.com

(614) 340-7613

Sarah Husk Education Specialist shusk@ohiobankersleague.com

(614) 340-7610

Audra Johnson Director of Communications ajohnson@ohiobankersleague.com

(614) 340-7621

Susan Poling Jones Professional Development Director spoling@ohiobankersleague.com

(614) 340-7611

Julie Kiplinger Education Manager jkiplinger@ohiobankersleague.com

(614) 340-7612

Evan Kleymeyer Senior Vice President of Government and External Relations ekleymeyer@ohiobankersleague.com

(614) 340-7605

Kimberley Mason Higher Education Partnership Manager kmason@ohiobankersleague.com (614) 340-7601

Jennifer Osburn, CPA CFO, Chief Administrative Officer josburn@ohiobankersleague.com (614) 340-7606

Anna Scheurer Customer Service Specialist, OBBT ascheurer@ohiobankersleague.com (614) 340-7591

Shannon Strow Government Relations Coordinator sstrow@ohiobankersleague.com (614) 340-7614

Christine Zeek Employee Benefits Manager, OBBT czeek@ohiobankersleague.com (614) 340-7617