2014 - The Independent Community Bankers of America

COMMUNITY BANKS: The Future Engaged
2014
ANNUAL REPORT
COMMUNITY BANKS: The Future Engaged
Contents:
Membership.........................................................2
Advocacy............................................................3
Marketing & Communications..................................6
Education & Meetings............................................8
ICBA Services Network.........................................10
Leadership..........................................................14
2014 ANNUAL REPORT
John H. Buhrmaster
ICBA Chairman
Camden R. Fine
ICBA President and CEO
Letter from ICBA’s Chairman and ICBA’s President and CEO
The nation’s community banks spent 2014 rising to the everyday challenges of serving local communities while
leading in a rapidly changing industry. Following years of economic uncertainty and a massive tide of new
regulation, community bankers have stuck to their work of localized lending and economic development while
embracing their role as advocacy leaders and financial innovators.
Bravely facing down threats from Wall Street and Washington, community banks have kept local communities
thriving and our industry moving forward. We have leaned into a shifting banking landscape by staying fully
engaged and focused on our future.
In 2014, the Independent Community Bankers of America® and its members were powerful advocates—and had
much to show for it. Together, we advanced several regulatory relief provisions in ICBA’s Plan for Prosperity,
mandated a community bank presence on the Federal Reserve Board and helped prevent sharp increases in flood
insurance premiums. We also stood up to challenges from credit unions and the Farm Credit System and singlehandedly got the administrator of the Libor index to waive new fees on virtually every community bank in the
nation.
Community bankers continued to provide for the future of our industry by increasing their engagement with
ICBA and the ICBA Services Network and by spreading the word about their industry to consumers and the local
and national news media. Meanwhile, ICBA’s national convention, Washington Policy Summit and second annual
Leadership Development Conference remained the industry’s premier educational and networking events.
ICBA thanks its affiliated state community banking associations and the nation’s community bankers for another
great year, and we’re proud of everything we have achieved together. While there will surely be new challenges
in 2015, we will continue to have success by working hard, doing right by our customers, and remaining engaged
locally and nationally. Thank you, and best wishes for the year ahead.
All the best,
John Buhrmaster, ICBA Chairman
Cam Fine, ICBA President and CEO
COMMUNITY BANKS: The Future Engaged
1.
Membership
ICBA was founded in 1930 and has offices in Washington, D.C., Sauk Centre, Minn.,
and Newport Beach, Calif., along with 11 regional offices across the nation.
ICBA and the nation’s community banking industry
continued to engage locally and nationally in 2014.
Community banks remained engaged with their industry
as ICBA’s membership market share continued to grow, as
it has year-over-year since 2009. Nearly 2,700 community
banks have been ICBA members for 20 years or more,
nearly 1,300 have been members for at least 50 years, and
four have been with the association since its founding.
ICBA was founded in 1930 in Glenwood, Minn., and is
now headquartered in Washington, D.C. The association
has offices in Sauk Centre, Minn., and Newport Beach,
Calif., along with 11 regional offices across the nation. It
also has member community banks in every state of the
union, the District of Columbia, the Virgin Islands and
American Samoa. ICBA members include commercial
banks, savings institutions, mutual banks, agricultural
banks, minority community banks and Community
Development Financial Institutions.
Ranging from de novo banks to $50 billion-asset institutions,
ICBA members collectively hold more than $1.2 trillion in
assets, $1 trillion in deposits, and $700 billion in loans to
consumers, small businesses and the agricultural community.
And they have been engaging their local communities for
generations. A full 46 percent of the association’s member
community banks have been in business and serving their
communities for at least 100 years.
National Community Bank Service Awards
ICBA honored three community banks that have shown outstanding community service leadership with the
2014 ICBA National Community Bank Service Awards. The program brings national recognition to the
unparalleled contributions community banks make to help build sustainable communities.
The 2014 recipients implemented a variety of community
service projects to better their communities and the lives
of local residents. The 2014 ICBA National Community
Bank Service Award honorees are the First Columbia
Bank & Trust Co. in Bloomsburg, Pa. (Grand National
Award); 1st United Bank in Fairbault, Minn. (banks
over $500 million); and Bank of American Fork in
American Fork, Utah (banks under $500 million).
2. 2014 Annual Report
Advocacy
Due to the tenacity, influence and reputation of ICBA and the nation’s community banks,
the industry made significant progress in Washington this year in the face of seemingly overwhelming
regulatory challenges. By remaining at the table in Washington and engaging policymakers,
2014 proved a successful year for community banks.
Regulatory Relief
Libor Fees
ICBA’s multifaceted campaign for community bank regulatory relief made
headway on many fronts in 2014.
ICBA’s Plan for Prosperity legislative
platform saw great success, with
the signing of a law that significantly expands community bank
access to capital via the Federal
Reserve’s Small Bank Holding
Company Policy Statement.
Also in Congress, privacy-notice
modernization reached the cusp of
final passage, and the House Financial Services approved several bills
to provide relief from new mortgage
rules. The CLEAR Relief Act garnered
220 bipartisan sponsors in the House and
Senate.
Community banks scored a tangible victory when the Intercontinental Exchange announced
it would waive Libor fees for
more than 99 percent of the
nation’s community banks.
ICE originally announced
that any financial institution
using or referencing Libor
in any financial products
would be subject to a $16,000
annual fee. Following repeated
communications from ICBA, all
banks under $1.5 billion are now
exempt and more than 300 banks
under $10 billion in assets will pay
nearly 90 percent lower fees.
On the regulatory front, the Securities and Exchange
Commission advanced another ICBA priority by proposing a rule to allow savings and loan holding companies to
take advantage of new SEC registration and deregistration
thresholds. The proposal would apply to savings and loan
holding companies, addressing an oversight in the JOBS
Act that ICBA has long sought to correct. ICBA also delivered to regulators nearly 15,000 signatures seeking call
report relief, achieved privacy-notice reform at the CFPB,
and continued to garner support for tiered regulation at
the banking agencies.
Flood Insurance
Federal Reserve
Following a rash of data breaches at major retailers such
as Target and Home Depot, ICBA has successfully raised
awareness of the effect of data breaches on community
banks and the need for stricter rules on retailers. ICBA
has pushed back against inaccurate and misleading retailer claims, worked with financial industry partners in
support of better retailer data protection, and developed
community bank resources on data security.
The ICBA-led push to ensure community bank representation on the Federal Reserve Board paid off big this year.
Congress and the president passed an ICBA-advocated law
requiring the White House to appoint someone with community banking experience to the Fed board. The measure
would require at least one member of the board to have
experience as a community banker or community bank
supervisor.
Additionally, President Obama nominated former community
banker Allan Landon for the Federal Reserve Board. ICBA
expressed its support for the nomination of Landon, the
chief executive of the Bank of Hawaii from 2004 to 2010.
ICBA successfully helped advance bipartisan legislation
to protect homeowners from significant increases in flood
insurance premiums. The Homeowner Flood Insurance
Affordability Act prevents sharp flood insurance rate
hikes that would have made flood insurance unaffordable
for many policyholders who built to code and followed
the law every step of the way. Meanwhile, the act helps
ensure the actuarial soundness of the National Flood
Insurance Program.
Data Security
Credit Unions and Farm Credit System
In ICBA’s push for more sound community bank policies,
it has also worked for fairer regulations on our industry’s
government-sponsored competitors: credit unions and
the Farm Credit System. ICBA continues calling on the
COMMUNITY BANKS: The Future Engaged
3.
Farm Credit Administration to halt its relentless drive for
expanded FCS financial powers. Meanwhile, persistent
ICBA advocacy has virtually ground the credit union push
for greater lending and supplemental-capital authority to
a halt.
Farm Bill
Congress and the president enacted an ICBA-advocated
farm bill that includes provisions to strengthen crop and
revenue insurance programs and to remove term limits
on USDA guaranteed farm operating loans. ICBA worked
closely with Congress in recent years to ensure a strong
farm bill safety net and oppose expanded Farm Credit
System lending powers.
Volcker Rule
Regulators early in 2014 modified a provision of the
Volcker Rule that would have had a drastic and negative
impact on community bank holdings of collateralized debt
obligations backed by trust-preferred securities. Following ICBA’s frequent communications and meetings with
the banking agencies and help from allies in Congress,
regulators released an interim final rule to exempt community bank TruPS CDOs from “covered funds” that must
be divested under the Volcker Rule. This change saved
hundreds of community banks hundreds of millions
of dollars in premature write-downs of the
value of their TruPS holdings.
Fair Lending
Accounting
ICBA continues working to address a Financial Accounting
Standards Board proposal that would require community banks to revise how they account for their loan-loss
reserves (ALLL), loans and securities. The association led
a campaign urging community bankers to send in custom comment letters opposing the proposed accounting
standards, which would require complex modeling and
compel banks to recognize losses much earlier than necessary in the credit-loss cycle, penalizing community banks
for investing in loans and securities.
Overdraft
ICBA continued to protect community banks from excessive overdraft regulation. ICBA has pushed back on a proposal that would require financial institutions with more
than $1 billion in assets to include detailed breakdowns of
their revenue from overdraft charges in their call reports.
Meanwhile, the association continues to advocate before
the CFPB as it plans to pursue overdraft reforms.
Operation Choke Point
In public statements, congressional testimony and interviews with the press, ICBA repeatedly called on the
agencies to suspend Operation Choke Point and supported
legislation to rein in the initiative so banks are not
criticized for providing banking services to
legal businesses. The association’s persistent pressure contributed to the
FDIC and Justice Department
ICBPAC
agreeing to investigate the initiative, which targets firms
The Independent Community
that process payments for
businesses engaged in
Bankers Political Action Committee—
“higher-risk” activities.
ICBA and allies achieved legislative and court victories in
opposition to the “disparate
impact” theory in fair
housing. A federal judge
the non-partisan political action committee
struck down regulaof the ICBA—had another successful election
tors’ use of the theory
De Novos
in fair housing cases,
In response to ICBA’s
cycle. ICBPAC contributed $1.7 million to more
overruling the govrecommendations
than 290 pro-community bank candidates and
ernment’s theory that
for more clarification
data alone can prove
about the de novo
committees and had a success rate of more than 90
lending discrimination,
bank application propercent. ICBPAC is the fourth-largest financial
even without evidence
cess, the FDIC issued
of intent to discriminate.
guidance to help appliadvocacy PAC, further strengthening the
ICBA filed briefs in this
cants develop proposals
community banking industry’s voice
and other cases on the thefor deposit insurance by
ory. Additionally, the House
easing requirements and
and reputation in Washington.
passed appropriations legisproviding transparency to
lation with an ICBA-advocated
the application process. ICBA
amendment prohibiting funding
has been deeply concerned about
for Justice Department litigation to
the lack of de novo bank applications
prove illegal discrimination based on the
and the FDIC capital and business plan
disparate impact theory.
requirements for de novo bank applicants.
4. 2014 Annual Report
Too-Big-To-Fail
Regulators adopted an ICBA-supported supplementary
leverage ratio capital requirement for large financial institutions. In addition, ICBA generally supported the FDIC’s
proposed “single point of entry” strategy for resolving systemically important financial institutions. In a comment
letter to the agency, ICBA wrote that the strategy would
help preserve financial stability and promote market
discipline, but the association recommended significantly
higher capital and unsecured debt requirements for SIFIs.
Postal Service Banking
ICBA met with members of Congress to strongly oppose a
proposal to allow the U.S. Postal Service to offer financial
services. The association strongly opposes the Office of the
Inspector General plan to establish the struggling agency in the financial services sector and continues working
with Congress to ensure the idea does not advance on
Capitol Hill.
Patent Litigation
ICBA met with the White House and congressional officials to advance new protections against abusive patent
litigation. The association supports legislation to protect
community banks from patent-assertion entities, which
assert infringement of business-method patents of dubious
quality by legitimate businesses. In addition to pressing for
demand letter transparency, ICBA also is urging Congress to amend current law to ensure that vendors that
sell products or services to community banks provide the
appropriate warranties and indemnification to protect end
users from patent-infringement claims.
Housing-Finance Reform
ICBA continued working with policymakers on ongoing
efforts to advance housing-finance reform. The association
met at the White House with executive department officials and testified before Congress on the need to preserve
community bank access to the secondary mortgage market.
COMMUNITY BANKS: The Future Engaged
5.
Marketing & Communications
ICBA and the nation’s community banks engaged customers and other consumers
through industry-leading marketing and communications.
Go Local®
ICBA’s Go Local initiative (www.icba.org/
golocal) continued encouraging consumers to bank locally in 2014. This
year, ICBA expanded its “Go Local
for the Holidays” campaign with
a Twitter chat on banking locally
that spurred nearly 700 tweets
from more than 150 tweeters.
The association also ran a “Go
Local for the Holidays” Facebook photo contest, in which
contest winner Town & Country Bank and Trust Co.’s Main
Street photo of Bardstown, Ky.,
earned a $300 donation to a local
charity. Also in 2014, ICBA introduced “Go Local Wednesday,”
which encourages ICBA
staff, community bankers and consumers
ICBA this
nationwide to share
on social media
year introduced “Go
how they shop,
Local Wednesday,” which
dine and bank louses the third Wednesday
cally on the third
Wednesday of
of every month to encourage
every month.
consumers shop, dine
and bank locally.
Additionally, ICBA
upgraded its Community Bank Locator,
which remains one of
the most popular features
on the ICBA website. The locator (www.banklocally.org), which drives
consumers and small businesses to member community banks, now automatically lists all community bank branches
as part of the customer experience. The
Community Bank Locator also is available via an app for Android, BlackBerry
and iPhone devices.
Post, Politico and American Banker; wire
services such as the Associated Press,
Bloomberg, Reuters and Dow Jones;
and broadcast networks such as
CNN Headline News, Fox
Business Network, C-SPAN,
CNBC, Wall Street Journal
TV and Bloomberg TV.
Social Media
ICBA also continues to
expand its engagement via
its growing social media
presence. More than 6,700
individuals are following
@ICBA on Twitter. ICBA
hosted numerous Twitter chats
over the past year, several of
which trended nationally, launching
community banking into the spotlight
on a major social media network. Additionally, ICBA President and CEO Cam Fine’s
Finer Points® blog has nearly 100,000 views in just five
years, ICBA’s Facebook page has nearly 4,000 likes, and
its YouTube channel has more than 32,000 views.
The focus on social media has continued to grow
among community banks themselves. ICBA again
released its lists of the Top 50 Community Bank Leaders
in Social Media and the Top 20 Community Banker
Making News
The “Go Local” initiative, combined with ICBA’s robust
media relations efforts, has paid off with positive press
coverage—including more than 1,825 media placements
in 2014. ICBA and community banks have appeared in
publications such as The Wall Street Journal, The New
York Times, The Washington Post, USA Today, Huffington
6. 2014 Annual Report
Influencers on Twitter to highlight community bank social
media trailblazers. Also in 2014, more community banks
signed up for ICBA’s expanded Social Media Monitor, the
association’s premier social-media-monitoring tool with
more than 1,200 community banks enrolled.
Publications
Community Banking Month
ICBA and many of its members again celebrated ICBA
Community Banking Month in April to celebrate the
importance of banking locally. As a part of this year’s
celebration, ICBA embarked on a month-long Washington,
D.C., advertising campaign featuring ads on buses, subway
cars and a Capitol Hill Metro station. The association also
partnered with a local food truck funded by a local community bank to create the first-ever Community Banking
Month cupcake to promote local business.
Millennial Study
As a generation of nearly 80 million, Millennials are an
influential source of potential community bank customers.
With this in mind, ICBA and The Center for Generational
Kinetics this year issued the 2014 ICBA American
Millennials and Banking Study to better understand the
relationship between Millennials and community banks.
The study found that Millennials prefer community banks
to larger financial institutions and are more entrepreneurial
than previous generations.
BABY BOOMERS
GENERATION X
Community bankers continued to engage with
ICBA through the association’s award-winning
publications. The electronic and print publications
offer community bankers the latest news and indepth analysis on issues facing the industry. ICBA
continues to publish ICBA Independent Banker®,
the association’s flagship monthly magazine, in
print and online at www.IndependentBanker.
org. In addition, ICBA members rely on the news
and information in the daily ICBA NewsWatch
Today® electronic newsletter. ICBA also features
the latest in member benefits and resources via
the weekly ICBA Member Access®.
The ICBA Services Network’s ICBA Profitability
Solutions® is a monthly newsletter focusing on
the products and services designed exclusively for
community banks, and the Of Mutual Interest®
newsletter focuses on mutuals, thrifts and federal
savings associations.
Community bankers interested in social media
receive a quarterly newsletter, Social Media
Minute, dedicated to highlighting community bank
social media successes, latest news in the industry
and tips. Meanwhile, community bankers can
continue reading insights from ICBA President
and CEO Cam Fine on his blog, Finer Points.
GENERATION Y
68 67 66 65 64 63 62 61 60 59 58 57 56 54 53 52 51 50 49 48 47 46 45 44 43 44 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19
MILLENNIALS
COMMUNITY BANKS: The Future Engaged
7.
8. 2014 Annual Report
Education & Meetings
Community bankers remained committed to their professional growth and development
by engaging in ICBA’s educational and networking programs and meetings.
Professional Development
More than 37,000 community bankers took advantage of
ICBA’s educational offerings in 2014 to build and expand
their ability to lead and serve their customers and
communities. ICBA offered 95 conferences, certification
programs, audio conferences, webinars and classroom
seminars across the country as well as more than 300
online courses. ICBA’s educational courses offered opportunities for community bankers to receive certifications
in a variety of areas, including internal auditing,
compliance, information technology and more.
ICBA Leadership Development Conference
ICBA hosted its second annual Leadership Development Conference in Memphis, Tenn. As
the only nationally recognized leadership event
for community bankers, this conference provides
mid- and upper-level executives outside-the-box
concepts and strategies to strengthen their leadership skills and influence. Nearly 250 community
bankers and industry leaders from across the nation
attended the conference in September.
The conference featured inspiring and motivating
keynote speakers who challenged attendees to think
beyond practical skills and showcased innovative ways to
develop leadership proficiencies. Education sessions covered topics such as effective situational leadership, innova-
Nearly 250
community bankers
and industry leaders
gathered for this year’s
ICBA Leadership
Development
Conference.
tive ways to evaluate
leadership, and what
makes a true leader
successful. In addition,
networking opportunities
on a national level allowed
attendees to expand their
engagement and interaction.
ICBA
Education served
more than 37,000
community bankers
in 2014.
ICBA Washington Policy Summit
In April, nearly 1,000 members of the community banking industry gathered
in Washington for the
annual ICBA Washington Policy Summit.
Community bankers from around the
nation met with their
members of Congress
and federal financial
regulators to discuss
key issues, including regulatory relief,
housing-finance
reform, and the credit
union and Farm Credit System tax subsidies. Attendees also
heard from Senate
Banking Committee
members Bob Corker
(R-Tenn.) and Heidi
Heitkamp (D-N.D.).
COMMUNITY BANKS: The Future Engaged
9.
ICBA Community Banking LIVE® National Convention
In March, ICBA Community Banking LIVE 2014® in
Honolulu drew more than 2,500 community bankers and
industry leaders to the largest gathering of community
bankers in the world. Attendance for the 2014 event was
an all-time high for a conference held in Hawaii. Engagement at the Expo was strong, demonstrating that vendors
are eager to do business with established and emerging
community bank leaders from across the country.
The event featured nearly 60 educational workshops and
numerous networking opportunities as well as remarks
from leading policymakers and newsmakers, including
FDIC Chairman Martin Gruenberg, Consumer Financial
Protection Bureau Director Richard Cordray and Comptroller
of the Currency Thomas Curry. Other featured speakers
included “60 Minutes” broadcast journalist Lesley Stahl,
former White House Deputy Chief of Staff Karl Rove,
Gen Y expert Jason Dorsey and NFL Hall of Fame wide
receiver Jerry Rice.
The Expo again offered access to the latest products
and services from more than 150 vendors to keep
community banks on the cutting edge. Attendees
received to up-to-the-minute information on
the convention with the ICBA 2014 Mobile
App and by following the #ICBALive14
hashtag on Twitter. The hashtag received
more than 2,000 tweets, the most of any
ICBA convention.
10. 2014 Annual Report
ICBA Services Network
®
ICBA membership provides community bankers exclusive access to financial products and services
to help them engage and serve their communities. In 2014, more than 80 percent of ICBA
members used a product or service from one or more of the ICBA Services Network
financial services companies or more than 30 ICBA Preferred Service Providers. Further, community
banks earned more than $300 million in additional revenues from the services of the network.
ICBA Strategic Technology Solutions™
ICBA Strategic Technology Solutions (STS)
provides community banks with industry-best
outsourced IT management services, helping ICBA member banks be more competitive, efficient and secure. A strategic
alliance between ICBA and D+H®, ICBA
STS leverages D+H’s Compushare C3
platform to assist community banks
in better managing technology and
compliance.
ICBA STS takes a customized approach
to help community banks find the
right solution to meet their unique IT
strategy. The suite of products provides
a bank with additional IT support and
enables it to move some or its entire IT
infrastructure to a fully hosted, secure and
redundant cloud environment, which eliminates the headache and costs of maintaining a
local infrastructure.
Electronic Payment Products and Services
ICBA Bancard also extended support to ICBA members
electing to participate in Visa Checkout’s co-branded
option and hosted several educational webinars on digital
wallets, tokenization and EMV chip technology. Helping
bankers navigate new payment waters is ICBA Bancard
Executive Vice President of Operations Liang Han, who
joined the company in 2014.
Meanwhile, TCM Bank, ICBA Bancard’s subsidiary,
launched an online application for its agent bank
credit card program. This new application allows the agent
bank’s logo to appear on the application pages, reinforcing
the community bank’s brand. TCM also organized and
sponsored a summer credit card promotion for its agent
bank clients. In all, 63 banks representing 460 branches
participated, with TCM bank providing $1,500 worth of
food or funds to food banks in the five winning banks’
communities. In 2014, TCM Bank continued adding
volume to its 640 community bank agents and its $164
million portfolio, managed by card industry professionals
in Tampa, Fla.
ICBA Bancard and TCM Bank offer consumer and business credit card programs (direct issue or managed risk);
consumer and business debit cards; card reward programs,
turnkey marketing support and card education; credit
card portfolio consultations; purchase and
valuation services; exclusive fraud-loss
protection and risk-management
solutions; and merchant processing
and ATM driving.
Entering its 30th year of operation, ICBA Bancard®
continues to help community banks support their
bottom line while meeting the diverse payment needs of their customers. In 2014,
the company reported sales volume of
more than $19 billion for participating
community banks and announced an
The ICBA Services
expanded partner agreement with
Network includes ICBA
Visa to include Visa DPS for debit
processing.
Bancard, ICBA Compliance
Investment Portfolio Services
ICBA Securities®, ICBA’s
institutional broker-dealer,
completed a successful year
with sales volume in the top
third in its 25-year history. It
has endorsement relationships
with 35 state affiliates.
and Risk Management, ICBA
In 2014, participating community
banks earned more than $153
Mortgage, ICBA Reinsurance
million in gross revenue on their
and ICBA Securities, as well
$4.6 billion in credit card sales
volume and an estimated $193
as 30 ICBA Preferred
million on more than $14 billion
Service Providers.
ICBA Securities hosted a record
in debit card sales. Further, ICBA
crowd
at the ICBA Bond Academy in
Bancard clients had total credit card
Memphis
to equip community bank
outstandings of $967 million. ICBA Bancard
portfolio
managers
to deal with current
is in aggregate ranked the 30th largest credit
issues
and
meet
the
needs
of management,
card portfolio in terms of outstandings in the
directors
and
regulators.
It
also
expanded
its
United States, according to Nilson Reports.
COMMUNITY BANKS: The Future Engaged
11.
series of webinars on the economic outlook, investment
strategies and monetary policy. For the year, ICBA Securities
averaged participating in more than one educational event
per week.
ICBA Securities was founded to provide community
bankers with high-quality investment products, services
and education at competitive prices. More than 2,000
community banks used ICBA Securities and its exclusive
broker, Vining Sparks, for their investment needs in 2014.
Mortgage Products and Services
ICBA Mortgage® continued providing community banks
direct and indirect access to the secondary mortgage
lending market and other mortgage-related products and
services. Strategic secondary market partnerships, powerful technology, superior training courses and a wide range
of mortgage programs enable community banks to expand
their market share, generate fee income and compete with
the large mortgage players in today’s market.
12. 2014 Annual Report
ICBA Mortgage’s ongoing agreement with D+H
Mortgagebot ensures that community banks continue to
enjoy affordable access to leading mortgage-origination
technology. Mortgagebot helps community banks originate
mortgage loans in a cost-effective and compliant manner.
Additionally, ICBA Mortgage Solutions® offers a competitive correspondent lending platform through LenderLive
Network, a community bank–friendly secondary market
investor outlet. LenderLive offers ICBA members access
to all agency loan programs, including high-balance and
jumbo loan programs, as well as FHA loans. Since its
launch in 2010, LenderLive has helped ICBA-member
community banks reduce overhead costs by increasing
efficiency and remaining compliant while increasing
market share.
Reinsurance Sales and Services
ICBA Reinsurance®, ICBA’s credit insurance services corporation, in 2014 worked with hundreds of community banks
in 24 states to
provide them with
Profitability
all the benefits of
owning a captive
reinsurance company without the
Resources and Tools for
Every Community Bank
capitalization costs
or administrative
expenses. Program participants
benefited from
the community bank–owned
company’s strategic alliances with
life insurance
companies Transamerica and the
| Mortgage Solutions
Compliance Solutions
Plateau Group.
Community
bankers were able to increase
their knowledge and maximize efficiencies with recurring
product knowledge and sales skills training opportunities,
marketing support and state-of-the-art tools and
reporting.
FALL 2014
+
p.8
p.12
Summer 2014 | 1
In the fourth quarter of 2014,
ICBA Reinsurance paid participating community bank
shareholders its 12th
consecutive dividend. The
$157,000 dividend was
paid to banks that qualified for a dividend
based on 2013 results.
Nearly 50 percent
of ICBA Reinsurance shareholders
received a dividend,
representing 5.4 percent of their earned
surplus. To date, ICBA
Reinsurance has paid
more than $21 million
in commission income
and $13.3 million in
claims on behalf of community banks to their customers.
Since its inception, ICBA Reinsurance shareholders have received
more than $1.4 million in dividends.
ICBA Compliance and Risk Management
In 2014, ICBA and strategic alliance partner Chartwell
Compliance continued to offer ICBA Compliance and Risk
Management® services to community banks, including
affordable, hands-on services and expertise to help them
succeed amid the challenges associated with staying
compliant.
Chartwell Compliance provides regulatory compliance
consulting for community banks that focuses on the rules
and regulations affecting bank and non-bank financial
institutions. The company’s regulatory expertise includes
solutions for issues such as the Bank Secrecy Act, deposit
and loan compliance, the Home Mortgage Disclosure Act,
the Community Reinvestment Act, payments products
and more.
ICBA and Chartwell Compliance also offer the ICBA
Compliance HelpDesk®, which offers community banks
an added layer of on-demand manpower and expertise to
answer complicated compliance-related questions.
ICBA Preferred Service Providers
ICBA’s team of more than 30 Preferred Service Providers
keep bankers and their customers engaged through unique
services that bring value to community banks. In 2014,
ICBA added two new Preferred Service Provider programs.
Continuity Control offers a compliance management
system that translates new and updated regulations into
simple tasks. Insperity brings value to community banks
and their small-business customers through a full range
of human resources solutions that allow any
entrepreneur to refocus energies on
their core business.
Meanwhile, ProfitStars now
offers ICBA members access
to the MarginMaximizer
tool, which supports consistent pricing across the
bank’s loan portfolio by
balancing a range of
factors, including the
customer’s depository
relationship with the
bank and loan risk.
Bank Intelligence
Solutions by Fiserv
and Investment Centers
of America have also
extended their Preferred
Service Provider relationships with ICBA to
continue to offer member
banks discounts and added
value on their services.
Also in 2014, ICBA announced that
more than 1,200 member community
banks will share a $2.9 million policyholder
dividend as part of their participation in the Travelers
SelectOne ICBA insurance program. It is the 13th consecutive dividend that participating banks have gained
through the program. Since the program’s inception in
1983, it has paid more than $45 million in policyholder
dividends.
COMMUNITY BANKS: The Future Engaged
13.
ICBA Leadership
ICBA’s 2014-15 Officers. From left: Secretary Timothy Zimmerman, Chairman John Buhrmaster,
Vice Chairman Rebeca Romero Rainey, Immediate Past Chairman Bill Loving,
President and CEO Cam Fine, Chairman-Elect Jack Hartings and Treasurer Preston Kennedy.
14. 2014 Annual Report
2014 ICBA Board of Directors
ICBA Chairman*
John H. Buhrmaster
1st National Bank of Scotia
Scotia, N.Y.
Past Chairman*
Jeffrey L. Gerhart
Bank of Newman Grove
Newman Grove, Neb.
Bank Education Chairman
Mike Ellenburg
First Southern State Bank
Stevenson, Ala.
Chairman-Elect*
Jack A. Hartings
The People’s Bank Co.
Coldwater, Ohio
Past Chairman*
Salvatore Marranca
Cattaraugus County Bank
Little Valley, N.Y.
Vice Chairman*
Rebeca Romero Rainey
Centinel Bank
Taos, N.M.
Consolidated Holdings Chairman*
Cynthia Blankenship
Bank of the West
Grapevine, Texas
Bank Operations and Payments
Chairman
Samuel A. Vallandingham
The First State Bank of West Virginia
Barboursville, W.Va.
President & CEO*
Camden R. Fine
ICBA
Washington, D.C.
At-Large Director
R. Scott Heitkamp
ValueBank Texas
Corpus Christi, Texas
Secretary*
Timothy Zimmerman
Standard Bank, PaSB
Monroeville, Pa.
At -Large Director
Noah W. Wilcox
Grand Rapids State Bank
Grand Rapids, Minn.
Treasurer*
Preston L. Kennedy
Bank of Zachary
Zachary, La.
At -Large Director
Chuck Johnston
North Valley Bank
Thornton, Colo.
Immediate Past Chairman*
William A. Loving Jr.
Pendleton Community Bank
Franklin, W.Va.
At -Large Director
Greg Ohlendorf
First Community Bank & Trust
Beecher, Ill.
Bank Services Chairman
Scott F. McBride
First Northern Bank of Wyoming
Buffalo, Wyo.
ICBPAC Chairman
Jack E. Hopkins
CorTrust Bank, N.A.
Sioux Falls, S.D.
Policy Development Chairman
Gregory S. Deckard
State Bank Northwest
Spokane, Wash.
Corporate Secretary *
Mark A. Raitor
ICBA
Washington, D.C.
* Executive Committee
2014-15 ICBA Federal Delegate Board
Verlin J. Barker
Community Bank of Oelwein
Oelwein, Iowa
Thomas A. Borner
Putnam Bank
Putnam, Conn.
Robert A. Catanzaro
Independence Bank
East Greenwich, R.I.
Dick D. Behl
The Farmers and Merchants State Bank
Scotland, S.D.
John H. Buhrmaster
1st National Bank of Scotia
Scotia, N.Y.
C. R. Cloutier
MidSouth Bank, N.A.
Lafayette, La.
George J. Behr Jr.
Arundel Federal Savings Bank
Glen Burnie, Md.
Richard G. Busch
Royal Bank
Gays Mills, Wis.
Wes Condron
America’s Community Bank
Blue Springs, Mo.
Paul T. Bennett
Alma Exchange Bank & Trust
Alma, Ga.
Thomas G. Caldwell
The Middlefield Banking Co.
Middlefield, Ohio
John C. Corbett
CenterState Bank of Florida, N.A.
Winter Haven, Fla.
Cynthia Blankenship
Bank of the West
Grapevine, Texas
Kent Carruthers
The Citizens Bank of Clovis
Clovis, N.M.
Dan K. Coup
The First National Bank of Hope
Hope, Kan.
COMMUNITY BANKS: The Future Engaged
15.
Russell David Crader
The Bank of Missouri
Cape Girardeau, Mo.
Peter J. Haddeland
First National Bank in Mahnomen
Mahnomen, Minn.
Preston L. Kennedy
Bank of Zachary
Zachary, La.
Larry K. Deason
Farmers and Merchants Bank
Anniston, Ala.
Jack A. Hartings
The People’s Bank Co.
Coldwater, Ohio
Patrick A. Kerschen
The Freeport State Bank
Harper, Kan.
Gregory S. Deckard
State Bank Northwest
Spokane, Wash.
David E. Hayes
Security Bank
Dyersburg, Tenn.
Andrew J. King
Three Rivers Bank of Montana
Kalispell, Mont.
Christopher C. Doyle
Texas First Bank
Texas City, Texas
R. Scott Heitkamp
ValueBank Texas
Corpus Christi, Texas
Melany H. Kniffen
Southern Commercial Bank
St. Louis, Mo.
Mike Ellenburg
First Southern State Bank
Stevenson, Ala.
Kurt R. Henstorf
First Heritage Bank
Shenandoah, Iowa
Peter Kubacki
The Dart Bank
Mason, Mich.
Camden R. Fine
ICBA
Washington, D.C.
Mark Hesser
Pinnacle Bank
Elkhorn, Neb.
Dale L. Leighty
The First National Bank of Las Animas
Las Animas, Colo.
Robert Fisher
Tioga State Bank
Spencer, N.Y.
Mark A. Holmes
Cornerstone Bank
Wilson, N.C.
William A. Loving Jr.
Pendleton Community Bank
Franklin, W.Va.
Carolyn E. Flynn
Community Financial Services Bank
Benton, Ky.
Thomas A. Holt
First Northern Bank of Wyoming
Buffalo, Wyo.
Daryll Lund
Community Bankers of Wisconsin
Madison, Wis.
Alice P. Frazier
Cardinal Bank
McLean, Va.
Jack E. Hopkins
CorTrust Bank, N.A.
Sioux Falls, S.D.
Terry W. Frydenlund
1st Bank Yuma
Yuma, Ariz.
David Hunsicker
New Tripoli Bank
New Tripoli, Pa.
Marshall A. MacKay
Independent Community Bankers of
Minnesota
Eagan, Minn.
Henry M. Funderburk III
Dedicated Community Bank
Darlington, S.C.
Lonnie Iholts
Siuslaw Bank
Florence, Ore.
David M. Geis
Jackson County Bank
Seymour, Ind.
Gerald C. Johnson
Grand Ridge National Bank
Grand Ridge, Ill.
Jeffrey L. Gerhart
Bank of Newman Grove
Newman Grove, Neb.
Chuck Johnston
North Valley Bank
Thornton, Colo.
Paul C. Goodpaster
The Citizens Bank
Morehead, Ky.
Mark L. Johnston
Kennebec Savings Bank
Augusta, Maine
James E. Graham
Woodsville Guaranty Savings Bank
Woodsville, N.H.
Christopher K. Jordan
Farmers State Bank
Stigler, Okla.
16. 2014 Annual Report
Paul Mackin
Think Mutual Bank
Rochester, Minn.
James D. MacPhee
Kalamazoo County State Bank
Schoolcraft, Mich.
Mark A. Mangano
Northern Hancock Bank & Trust Co.
Newell, W.Va.
Salvatore Marranca
Cattaraugus County Bank
Little Valley, N.Y.
Scott F. McBride
First Northern Bank of Wyoming
Buffalo, Wyo.
Samuel L. Neese
Highlands Union Bank
Abingdon, Va.
Chris Nunn
Security Bancorp of Tennessee
Halls, Tenn.
William J. Riddle
Community Bank Delaware
Lewes, Del.
Jill Sung
Abacus Federal Savings Bank
New York, N.Y.
Greg Ohlendorf
First Community Bank & Trust
Beecher, Ill.
Howard F. Schaan
First State Bank of Harvey
Harvey, N.D.
William R. Trezza
Bank of Agriculture and Commerce
Stockton, Calif.
Steven S. Olson
MinnStar Bank, N.A.
Lake Crystal, Minn.
John Slatky
Bank of Luxemburg
Luxemburg, Wis.
Kathryn Underwood
Ledyard National Bank
Norwich, Vt.
Rogers Pope Jr.
Texas Bank and Trust Co.
Longview, Texas
Darrel A. Small
Town & Country Bank
Las Vegas, Nev.
Sam Vallandingham
The First State Bank
Barboursville, W.Va.
Donald P. Queenin
Northern Bank & Trust Co.
Woburn, Mass.
Milton Smith
First National Bank of Lawrence
County
Walnut Ridge, Ark.
Will Walker
Traders & Farmers Bank
Haleyville, Ala.
Rebeca Romero Rainey
Centinel Bank of Taos
Taos, N.M.
Mark A. Raitor
ICBA
Washington, D.C.
Preston G. Smith
The First National Bank
Mattoon, Ill.
A. Pierce Stone
Virginia Community Bank
Louisa, Va.
Derek B. Williams
Columbus Community Bank
Fortson, Ga.
Christopher Williston
Independent Bankers
Association of Texas
Austin, Texas
2014 ICBA Services Network Board of Directors
Chairman
Cynthia Blankenship
Bank of the West
Grapevine, Texas
Board Members
John H. Buhrmaster
1st National Bank of Scotia
Scotia, N.Y.
Vice Chairman
Camden R. Fine
ICBA
Washington, D.C.
Gregory S. Deckard
State Bank Northwest
Spokane, Wash.
Jeffrey L. Gerhart
Bank of Newman Grove
Newman Grove, Neb.
Jim S. Gowen Sr.
Merchant & Planters’ Bank
Newport, Ark.
Jack A. Hartings
The People’s Bank Co.
Coldwater, Ohio
William A. Loving Jr.
Pendleton Community Bank Inc.
Franklin, W.Va.
Mark A. Schroeder
German American Bancorp
Jasper, Ind.
Judith Sullivan
Community Bankers of Michigan
East Lansing, Mich.
William E. Wood
Clearfield Bank & Trust Co.
Clearfield, Pa.
President and CEO
Gary Teagno
ICBA Services Network
Washington, D.C.
Chief Operations Officer and CFO
Patricia Hopkins
ICBA
Washington, D.C.
COMMUNITY BANKS: The Future Engaged
17.