As the calendar rolls over into another new year, I am reflecting on the importance of focusing on what community bankers do for a living and what the profession does for our local communities. This is because, as the author E. Stanley Jones stated, “Whatever gets your attention … gets you.”
For the last several years, Montana’s community banking was forced to focus its attention on the fiscal and social impact of the COVID-19 pandemic. Part of this focus was, of course, protecting internal banking operations and employee health, administering the federal paycheck protection program (PPP), and helping bank customers navigate the most unprecedented economic disruption event of the last 50 years.
I now write with some optimism that 2023 marks the year where MIB’s members can put the pandemic crises in the rear-view mirror and double-down their attention on the one intangible that defines ‘us’ best —
that intangible being to serve our local communities and the people that live in them.
MIB is proud of the way our members have historically supported local businesses, schools, charitable groups and other community-minded organizations. I know that community bankers will work hard every day in this coming year to help build vibrant communities where their customers live, work and play.
As for the MIB, in the coming year, the Association will also be refocusing on its core mission, which is to serve Montana’s community banks. One of the ways the Association serves its membership is through legislative advocacy services both at the federal and state level.
As I write this article, the 2023 Montana Legislature has commenced. The legislative session is slated to end in late April. Some of the big issues for the session appear to be Governor Gianforte’s proposals to provide a tax cut, to fund state building repairs and improvements, and to improve telecommunications services and opportunities.
The 2023 Legislature once again sees the Republican Party controlling both the House and Senate. Republicans have an unprecedented super majority this session – holding 103 of the possible 150 seats. Thus, as has been the case since the 2005 legislative session, a Republican legislature will be driving the agenda and the policy.
The MIB has a light legislative agenda going into the 2023 session. Much of the Association’s focus will be on defeating or mitigating the impact of potentially harmful bills to the industry, such as those bills that tend toward imposing additional regulatory burdens and/or authorize non-bank entities to act as if they were banking entities. MIB will also oppose any legislation that seeks to upend the lien priority process.
One bill that the MIB will be following is being advanced by the Montana Division of Banking. Commissioner Melanie Hall has informed the Association that she will be sponsoring a rewrite and reform of the Montana Bank Act. Among the provisions set forth in that bill is a provision to repeal the State Banking Board.
As the legislative process moves forward, we here at MIB are interested in hearing directly from you as to legislation the Association should or should not support on your bank’s behalf. And the Association will be keeping the membership abreast of legislative developments on a weekly to a biweekly schedule. Legislative updates can be found on the MIB website under the Advocacy link.
Setting public policy matters aside, in late 2022, the OCC released its semiannual risk perspective. As an informative read, the perspective provided an overview of the multitude of issues facing banks across the country, including Montana. Among the key issues identified in the report, higher interest rates are expected to slow economic growth in 2023, banks are expected to remain well capitalized with ample liquidity and sound credit quality, bank portfolios will continue to experience challenges in a rising rate environment, and residential home sales will decline. Time will tell if the OCC’s projections prove correct.
In keeping with the theme of looking forward, the Association hopes the following events get your attention in 2023. In this coming year, the Association will be hosting two live education conferences, the Popular Women in Banking Conference, as well as the Ag Lending Conference. Further, the Association will be hosting its annual convention and tradeshow at beautiful Big Sky Resort in late July. The annual Montana reception will be held in March in Hawaii at the ICBA National Convention. Further, the Association encourages you to attend our MSU and U of M football tailgate events in the fall. And, of course, the Association will be offering its valuable Community Bankers for Compliance Program once again. We urge you to take advantage of these great member benefit programs.
In closing, let me take the opportunity to wish you a prosperous 2023. MIB’s staff hope this year is the best year yet for your bank and for your employees. And, as we do every year, the Association thanks you for your membership with MIB and we look forward to seeing you in person in the coming year.
