that point of view? At a time when more than 300 community bank charters disappear each year, why is it so important to have a strong ICBA, supported by a vast network of healthy state associations like PACB? (JG): Yes, there are those associations that proclaim to represent all banks regardless of whether they are on Wall Street or Main Street, but we all know that this is not practical and never has been. Trillion dollar banks have their own in-house lobby shops advocating for them and community banks need their own association too. Time and again we see examples where the “one voice speaks for all” mantra results in either no position because of diverse views or worse yet, a position that is not in the best interest of the community banking industry. ICBA was organized more than 80 years ago, back in the depression days of 1930. It was founded by roughly 28 bankers in central Minnesota who wanted to give voice to community banks. Up until that point, they had no exclusive voice. The nation’s largest banks were buying up community banks throughout the country leaving local communities without control of their financial destiny. ICBA ultimately moved their national headquarters to Washington D.C., but
bankers because I think that some bankers feel like their voice doesn’t count, but it certainly does. Collectively, we can give community banking a strong chorus if we have strong membership and strong trade associations across the country. And the latter part of your statement is exactly why ICBA is so critical for community banks. ICBA is the only national trade association that exclusively represents the nation’s community banks. In fact, a key driver of ICBA’s purpose is to preserve competition in financial services and to oppose the concentration of control of financial services resources. This is something that only ICBA can fight for since our membership only includes community banks. Also, ICBA’s network of strong healthy state associations, like PACB, serves a tremendous role as we help each other amplify the advocacy message for community banks both on a national and state level. The number of community bank charters may be declining; but our members are growing and ICBA’s voice is stronger than it’s ever been. With the support of independent state banking associations like PACB, ICBA is able to accomplish great things for the franchise of community banks, both now and for generations of community bankers to come.
Our members are growing and ICBA’s voice is
STRONGER THAN IT’S EVER BEEN still has offices and staff in Minnesota, California, Tennessee, and Florida. In addition, ICBA partners with nearly 50 state and regional partners throughout the U.S. to carry the community banking message. There has been a lot of change in our industry over the past 82 years, but our core values remain the same. ICBA’s mission is to promote an environment where community banks flourish. That mission is as important today as it was 82 years ago. As we stand taller and stronger together, we set the direction for both a resilient and responsible banking industry and banking system across the country. With community banks, our strength comes from everyone pitching in to help on both the state and national level. One of the things I tell Pennsylvania bankers is that your zip code in Pennsylvania gives you access to your elected representative, and my zip code in Nebraska does not. Of course, the reverse is also true. My son, when he was in college a few years ago, worked one summer as a mail room intern for a senator. He told me that his office had instructions explaining what to do with every piece of mail. If there was a letter from Nebraska, someone probably looked at it. On the other hand, if there was a letter from Pennsylvania, for example, it was likely overlooked. So, your zip code and your home town are very important when reaching out to elected officials in your area. That is a strong message that I try to convey to community
(ND): Almost every community banker takes the time necessary to monitor and adapt to current economic conditions. I’m surprised at how many do not take the time to monitor and adjust to the changing political conditions, even though their regulatory burden is a major cost center. America’s largest financial institutions spend vast amounts of money to protect their interests. The credit union industry can mobilize large numbers of people to rally to their cause. What is the advocacy strength of the community banking industry? How do we maximize our ROE when defending against policies that do harm to the franchise value of our community bank members? (JG): That’s a good statement, and a great question. I think that at the heart of this, ICBA and PACB obviously are excellent resources for all bankers to utilize. Of course, as bankers, we are all very busy on a daily basis simply running our own banks. This is where participation between ICBA and PACB comes into play. With the recent Wall Street Reform and Consumer Protection Act of 2010, we were able to increase deposit insurance coverage from $100,000 to $250,000 and lower FDIC premium assessments for probably 98% of the banks across the country. Those are just two examples. I’ve noticed over the years that our community banking voice is getting stronger, which I think goes back to the frustration many bankers experience. Often, individual bankwww.pacb.org | Transactions | 29