October 2022

RESPA. Q: We have a consumer real estate loan that we escrow for the property taxes and insurance. We did their annual escrow account analysis in August 2022. Now, we are paying their taxes and see their tax bill has increased by $1,300 from the last bill. We did not have this new tax information until the bill came.

Cyber and data security have long been areas of emphasis for community banks, but in today’s escalating digital environment, that focus has grown. In fact, our 2022 CEO Outlook Survey ranked data security as a top concern, and as the digital sphere continues to evolve, all signs point to that level of concentration increasing.

When it comes to fraud, you don’t know what you don’t know, and what you don’t know can greatly influence your bottom line. But the effects of fraud are felt far beyond budgetary impact; our reputations are at risk. Customers expect their bank to keep their money safe, and though they are often the gateway for fraud, they are inclined to blame us if we can’t fix the problem.

As a native of Missoula, I have lived in Western Montana my entire life. I grew up the oldest of four siblings (two brothers and one sister), attended high school at Sentinel, then graduated from the University of Montana with a bachelor’s degree in Business Administration with an emphasis in Finance. I was lucky enough to marry my college sweetheart Beth shortly after graduation. She has been an amazing partner in our life’s journey together, the most fulfilling of which has been raising our two boys, Ben and Garrett, to be amazing young men.

Welcome to the final 2022 edition of the MIB Community Banker Magazine. Where has this year gone? The speed with which this year has passed reminds me of the following Nathaniel Hawthorne quote: “Time flies over us, but leaves its shadow behind.”

As I write this, I can’t help but think about where our economy is right now and what the next 18 to 24 months will bring our way. We have seen a crazy run-up in real estate values that is now correcting, inflation is stubbornly high, the Federal Reserve is raising rates at breakneck speed, liquidity in the system remains high, and things just feel like they are on the verge of tipping over. With all of that, I would expect the next 18 to 24 months to present some challenges for a lot of people in our state.