BankWise January 17, 2019
ICBM President & CEO Jim Amundson before the Minn. Senate Agriculture, Rural Development, and Housing Policy Committee on Jan. 15.
More than a dozen meetings were scheduled on the House and Senate calendar on Tuesday as a number of committees, subcommittees and divisions gathered for the first time.
Among them was the Senate Agriculture, Rural Development, and Housing Policy Committee which invited ICBM to testify. We’re proud to have had the opportunity to report to the Senate that Minnesota community banks are investing in rural areas and are supporting the ag economy.
Listen to the testimony of Jim Amundson, ICBM President & CEO. (Fast forward to 1:09:00.)
This is officially the longest government shutdown in the history of the United States. We’re on day 27, and hundreds of thousands of federal workers have now missed their first paycheck. Some banks have stepped up to help smooth the gap, but financial institutions themselves are also feeling the pinch as the shutdown impacts SBA lending, ag functions, and mortgage approvals among others.
We’ve gathered important updates on the shutdown:
Serving on the ICBM board is a valuable and important way that community bankers further the mission of this association and promote the future success of our industry.
A provision in the Economic Growth, Regulatory Relief, and Consumer Protection Act establishes a short-form call report in the first and third quarters for banks with less than $5 billion in assets. As currently proposed, however, the rule would only reduce reporting burdens by just 1.18 hours for institutions under $1 billion.
ICBA is encouraging member banks to write to regulators supporting its version of the rule by Jan. 18. Whether your bank has less than $1 billion assets or more than $1 billion, send a message supporting the move today.
· Janesville State Bank is pleased to announce Sean Finley as assistant vice president and chief financial officer.
· WNB honored as top Winona Business by local chamber.
· ICBM President/CEO Jim Amundson was invited to judge competitors in a Tiger Cage business competition in Albert Lea. Winners were awarded cash grants to spur local entrepreneurial activity.
· Brian Nelson was promoted to AVP of Commercial Lending at BankVista.
Looking at the year ahead, tight profit margins in crop production will likely continue. Corn and soybean prices are projected to be near or below break-even levels. With increases in seed, fertilizer and chemical costs, higher interest rates, and only average crop yields, potential profits in 2019 look grim. Required loan payments on capital investments will be another major variable.
Average rental rates for 2018 in the region were likely very similar to 2017 rental rates or slightly lower. Based on early reports, 2019 land rental rates will remain steady or adjust slightly downward.