Pub. 6 2017 Issue 6

September 2017 7 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 The Johnson’s green thumbs keep flowers and vegtables flourishing in the July heat. Mavis and Ron Johnson at the Broadmoor Hotel in August 2016. the four markets that we serve- Seneca, Sabetha, Tonganoxie and Basehor - we also have the Retirement Plans Division which provides custodial services for self-directed IRA’s on a nationwide basis. This diversification of business models has worked extremely well for the bank and its stakeholders,” Johnson added. “But it’s the continued contribution of our staff that makes the real difference in our bank.” The Johnson’s have enjoyed their life in Seneca and have been active with various groups and in their church. Their neighborhood enjoys the fruit of their green thumbs with flower and vegetable gardens fit for a magazine cover and the couple remains very connected to their community. When asked about banking conditions in Kansas, Johnson stated, “There is no better industry than community banking in Kansas. The pride and passion for our industry and our markets that Linton Lull spoke to me about 40 years ago still thrives in Kansas banks today.” He spoke of the longevity of many families in Kansas banking and how he finds the study of these families to be very interesting. “Community banks have been and remain a critical economic driver for every industry in the communities they serve. While I believe there isn’t a better industry to work in, it is definitely changing. At the same time we see increased regulation and continued consolidation, we are also seeing demographic shifts and a move to technology-driven banking. The industry must decide how it is going to respond. How are we going to position for the future? I have never seen a challenge that our banks haven’t been able to address. The community banking model is relevant and vital; it still works because we know our markets and our customers and have a genuine desire to see them prosper,” he said. Johnson is optimistic regarding industry change and regulatory relief. He believes that Congress has a different and more positive tone toward reducing the massive regulatory burden that has been placed on banks. They are beginning to understand that Dodd Frank went too far and has had an unintended negative impact on the country’s community banks. “Our job is to continue to advocate for our industry and press our elected officials for the needed change.” One potential avenue for the reduction in regulation is the fact that nearly 70% of the U.S. Treasury recommendations that were released in June don’t require Congressional action but can be adopted at the agency level. This coupled with new appointed heads at all the agencies that impact the bank industry, such as FDIC, OCC, CFPB and Federal Reserve, should provide a course correction on the regulatory front. Johnson believes that FinTech is both a threat and an opportunity for community banks. The banking industry in Kansas will need to continue to adopt and adapt to the needs of the people they serve. Johnson stated that, “FinTech or technology driven banking, will continue to grow and be utilized because those conveniences are wanted. But, we can’t allow these service providers to continue to operate in an unregulated space and, if they are going to control an ever increasing share of the payment system, they will have to be brought under the regulatory framework.”