Pub. 7 2019 Issue 4

13 The Community Banker have someone who can work with them not only to provide credit but to help them build a business from the ground up. 7. Montana has seen an increasing number of banks con- solidate. What is your view of the future of Montana’s community banks? During my time as Commissioner, the number of banks has shrunk significantly from 64 state-chartered banks in January 2011 to 40 today. Although it has been sad to watch this consoli- dation in some respects, and I expect a little more consolidation to occur over the next few years, I think that the banks that are surviving and growing during this time are doing so in a way that will make them stronger and better adapted for the current bank- ing environment. 8. Banking marijuana is a hot topic for every financial insti- tution. How is the division of Banking preparing for the possible legalization of the recreational use of marijuana in Montana, if at all, and is there a safe path forward for Montana’s community banks to bank it? Here at the Division, we are smoking lots of marijuana recreation- ally to prepare for — just kidding. At this point, we are following what is happening in states like Washington and Colorado and how those regulators are working with banks to provide service to rec- reational marijuana businesses. In the event recreational marijuana does become legal in Montana, banks will have to make a risk man- agement decision regarding whether they are comfortable develop- ing policies that will mitigate risk to an acceptable level. There are banks in other jurisdictions that have found a way to balance the risk by appropriately charging customers for higher risk services. 9. What is the single most important thing you have learned as Montana’s Commissioner of Banking? Don’t make promises you don’t have complete control over. Sometimes bankers have surprises in store for you. 10. There is a lot of talk about the state of Montana’s agri- culture economy and producers. Has the Division seen any negative consequences for its regulated institutions as a result of ag’s recent economic struggles? Yes. As we learned during the last real estate crisis, it is almost impossible to underwrite for concentration risk, and some of our ag banks are feeling the pinch of lasting low commodity prices and the whims of Mother Nature. All of them are taking steps to shore up their portfolios, but there has been a significant increase in ag bankruptcy filings and an uptick in agricultural fraud as well that has compounded these challenges. 11. Where do you see yourself both professionally and per- sonally in 10 years? Good question. Personally, in 10 years, I will have a teenage daugh- ter, so I will probably just be holding on for dear life if she is anything like I was at 15! Professionally, I would love to be in a position that would allow me to continue to advocate for the importance of com- munity banks to economic growth. Community banks are the original “sandboxes” of our economy and have been the backbone of small business growth and financial innovation for decades.