Pub. 9 2021 Issue 2


Bankers’ Bank of the West Bancorp, Inc. Forms CivITas Bank Solutions, LLC

In 1980, a group of visionary community bankers founded Bankers’ Bank of the West (BBW) for one purpose: to establish a service provider chartered to do business only with community financial institutions. Our holding company is owned entirely by more than 140 community banks, and our board of directors includes seasoned executive officers from shareholder banks across our service area.


Montana Independent Bankers 2021 Outstanding Young Banker

To recognize upcoming leaders in Montana’s banking community, MIB honors an exceptional young banker each year. This award is based on the community banking values of good citizenship, community service, and sound banking skills. This award recognizes the impact the candidate has on his or her business each day and the difference he or she makes by investing in their community. Eligible candidates are under 35 years of age and work for a MIB member bank. The winner receives free convention registration and three nights lodging at the 2021 MIB Annual Convention, $100 in travel expenses, an honor plaque to display in his or her office, and prominent mention in the MIB magazine and website.


Compliance Q&A: Summer 2021

TILA. Q: We have a loan that had the right to rescind. The borrower signed the rescission notice that he wished to confirm the loan. However, the co-borrower said they both wanted to cancel the loan. We have a copy of the borrower’s signature wishing to confirm the loan but no copies with signatures that they both wanted to cancel the loan. Is this an issue? Would it matter if the confirmation was signed after the cancellation?
A: First, the “confirmation” signature is not required or even acknowledged by Regulation Z. (It is a common method lenders use to document that rescission has expired and the customer has not canceled.)


American Jobs Plan

On March 31, 2021, President Biden announced his proposal for a $2.3 trillion infrastructure and jobs plan entitled the American Jobs Plan. Many investors regard this plan with mixed emotions. Although we may benefit from jobs being created and investing in our infrastructure, the sticker shock of a multi-trillion dollar spend has some people concerned about what this could mean for taxes and inflation.


Pick and Roll — Multiple Institutional Relationships Influence Bond Yields

Bond yields have risen, and the interest rate curve has steepened thus far in 2021. For all the discourse about cause and effect, the most popular and logical explanation is that the Federal Reserve’s insistence on maintaining an easy money policy, coupled with record fiscal stimulus, is likely to unleash a torrent of inflation sometime soon. Therefore, longer-term investors have demanded a higher return to compensate them for the perceived greater exposure to purchasing power erosion.


From the Top: Challenges Ahead

When it comes to implementing new technology, community banks have been faced with challenges. For one, we often don’t have the internal bandwidth to build the solutions we want, so we must seek products that exist in the marketplace – and that can feel like searching for a needle in a haystack. Once we find the right product, it has to integrate into our core systems. And when a product or service doesn’t perform, we may let it limp along instead of sunsetting it.