Pub. 4 2015 Issue 9

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 26 CELEBRATING 50 YEARS IN BANKING O NEOFMY FAVORITE VACATIONTRIPSWAS to the beautiful city of Montreal, Canada where my family had a great time jet boating the Lachine Rapids of the St Lawrence River. During our excellent hours-long trip we were tossed around, got wet and made some great memories along the way. The boating trip through rough waters, however, had two very important requirements. First, we needed a guide who was able to navigate the waters with his experience and knowledge. Second, before we could even step foot in the boat, each of us had to go through training. This training provided safety, gave us knowledge on what to expect and allowed us to enjoy the adventure that lay ahead. It also prevented accidents and brought a rewarding time to all on the journey. Community banking faces something akin to the Class V Lachine Rapids. Like jet boating on the river, the waters of mortgage lending can be rough and potentially dangerous. When witnessing something like those strong rapids from the shore, our first instinct might be to avoid that area of the river, and that’s happening in banking today. In a recent Midwest survey, it was revealed that 24% of community banks have left the mortgage market entirely, citing the risks and costs of doing business to the bank. Even the most experienced executives and CEO’s can feel overwhelmed when they are hit each day with QM, ATR and most recently TRID, a term which I am constantly reminded by other bankers is a four letter word to most of us. We see large banks with huge compliance departments and lending staffs looking at smaller communities, seeking to provide home lending services. And, in the process, cross selling all of the other banking needs to those clients – checking and savings accounts, online banking, ATMs, consumer loans and credit card services. And will they cross sell? Absolutely - it’s Banking 101: “Now that we have financed your largest asset, Mr. and Mrs. Customer, you can rely on our big bank to handle all of your banking needs.” The KBA and its associate members have a mission in Kansas to make sure community banks not only survive in today’s markets, but that they thrive in them. Having had the pleasure of working for a community bank for over 25 years, I know the impact each of KBA’s member banks has on their own great communities. Fundraising, Chamber functions, sponsoring local Christmas parades, food drives and education - community banks invest in their communities. Community banks also have a more personal relationship with their local customers and those same bank customers would often prefer to look to their local banker to help them realize their dreams of home ownership. Buying a home is an extremely personal transaction to most people. It’s where they plan to put down roots, raise their families, work and play and contribute to their communities in many other ways. The decision to avoid risk and not offer home mortgages to your community can be detrimental if the large regional and national banks dominate the field. Customers, however loyal, are inundated with offers for all other banking services and can too often succumb to the temptation to go with the big guys. That is your loss and a loss to your community. The cost to the community bank can be avoided, even in the white water of today’s market, by having two things – an experienced and knowledgeable guide and some basic training. Rather than stand on shore and avoid the rapids, find that guide and let them show you how you can still be a community leader in all types of banking. Your community needs you! Submitted by: Darren Stewart, Account Executive – Mortgage Investment Services Corporation, Shawnee, KS