Welcome to the 2023 MIB Annual Convention and Tradeshow issue of the Community Banker magazine. I am writing this article on a beautiful March bluebird day in Montana, one day after the Spring equinox in the Northern Hemisphere.

March is always one of my favorite months. This is due to the fact that one day it can be snowing, and the next, it can be 50 degrees and sunny. And, to be able to say, “spring has sprung” is a welcomed opportunity after experiencing another very wintery weather season.

The winter months were busy ones for the MIB. In January, the 2023 Montana Legislature convened. As always, the association has been up “On the Hill,” representing Montana’s community banking interests. The association has strongly supported the Division of Banking’s budget. I am pleased to write that the Division’s budget has had smooth sailing. Further, the association has been able to successfully fend off the majority of bills that, if enacted, would do harm to Montana’s community banking industry. At the same time, the association provided its full support to House Bill 371, sponsored by former MIB Board Member Kenny Walsh of Twin Bridges. This bill, if signed into law, would address one of our member’s top priorities, which is for state-chartered banks to own employee housing.

Turning now to other matters, early in March, the association hosted its annual Montana Reception during the ICBA National Convention, held in beautiful Hawaii. For the first time in recent memory, Montana cohosted its reception with other state associations. The MIB Board made this decision based on high cost/expense considerations resulting from the Hawaii location. In response to those cost considerations, MIB partnered with the states of Texas, Iowa, Pennsylvania, and others to put on the reception event. The joint event proved to be a success and drew an estimated 300 people, all of whom rubbed elbows and talked about banking issues.

During the convention, our association was recognized by outgoing ICBA Chairman Brad Bolton for putting on his most memorable state convention in 2022. Brad’s comments followed those made a year earlier by former ICBA Chairman Bob Fisher. Bob also identified the 2021 MIB convention as his most notable state convention. Given these positive comments two years running, we must be doing something right when it comes to hosting state conventions. But, then again, maybe, just maybe, Montana sells itself.

Additionally, the Bank of Montana was honored by the ICBA leadership for being named the Best Community Bank to Work for in 2022 in the asset category of under $250 million. Congratulations to Tom Swenson, MIB Board Member Danny Day, and the rest of the Bank of Montana team for gaining this prestigious acknowledgment — an honor well deserved.

In this issue of the Community Banker, you will find all the information needed to attend MIB’s Annual Convention and Tradeshow. The convention will be held July 26–28 at the Big Sky Resort. We are excited about this year’s quality lineup of speakers.

We are pleased to have new ICBA Chairman Derek Williams from the great state of Georgia join us as our keynote speaker. Other great speakers include Melanie Hall of the Montana Division of Banking, Patrick Barkey with the Bureau of Economic Research, and Tom Kennan of Keenan & Partners.

The annual golf tournament will be held at the Big Sky Golf Course. And, of course, the ever-popular white water rafting trip will be available for those looking for a bit of extracurricular fun for themselves and their family.

Our state convention is known as the biggest little banking convention in the West. We hope to see you, your bank employees, and your family below Lone Mountain this summer.

Turning now to industry-related events, community bankers across the country were all hit with the news of the collapse of SVB and the associated receivership of the same by the FDIC. For those involved in Montana’s community banking industry, we were horrified to read the news that Treasury Secretary Janet Yellen appeared to take a position that the FDIC would guarantee deposits above the $250,000 threshold for deposits held in only those banks the Fed itself deemed to be systematically and economically important. Of course, Yellen’s remarks implicitly stated that bank deposits in Montana’s community banks, namely those deposited with MIB’s members, would not be treated the same as those in the too-big-to-fail institutions. And in turn, Montana’s community bankers would not get the same regulatory protections as SVB and its depositors received. In short, Secretary Yellen’s remarks demonstrate that the Fed appears to improperly and concerningly have a list of government-preferred banks.

While Secretary Yellen appeared to walk back her comments later in the month, her initial comments once again highlighted the distinction between Montana’s state-chartered community banks and larger, more risky financial institutions. That distinction is, of course, that MIB’s member banks do not need government bailouts or favorable treatment for true community banks “operate under a safe, sound, and relationship-based banking model that has withstood economic cycles,” as ICBA President and CEO Rebeca Romero Rainey stated. Even so, we recognize that main street community banks will likely pick up the tab for SVB’s financial mismanagement through increased FDIC Deposit Insurance Assessment rates. And that is an outcome MIB strongly opposes.

MIB will be traveling to Washington, D.C. during the second week of May as part of ICBA’s Capital Summit to speak with Montana’s congressional delegation. You can be assured that one message MIB will be carrying to our nation’s capital is that MIB member banks are not the problem but rather the solution.

The SVB discussion reinforces the importance of MIB and the distinction between other state banking trade associations and us. This distinction is that MIB has one mission, and one mission alone — to represent the interests of Montana’s state-chartered community banks, period, and end of story. The membership dues paid by MIB member banks and associate members are the resources by which MIB carries out that simple yet vital mission. So, on behalf of the MIB Board of Directors and association staff, we look forward to serving YOUR unique Montana-based interests today, tomorrow, and well into the future.

I hope you have a great spring and summer. I look forward to seeing you at the Big Sky Resort in July for great community banking fun.

Sincerely,
James Brown, Esq.