Federal Reserve System and the Conference of State Bank Supervisors

Community Banking in the 21st Century

Sept. 23-24, 2014, Federal Reserve Bank of St. Louis

Panel Discussion Part 4: The Future of Community Banking

 

The panel turns to trends in community bank mergers and acquisitions, de novo charters and how technology is changing the community banking landscape. First, the panel takes a deeper dive into the 2014 Fed/CSBS survey data that reveals an increased number of banks looking forward expect to receive acquisition offers. Joshua Siegel, managing partner and CEO of StoneCastle Partners, LLC, New York City, a firm that invests in community banks, gives a brief history of bank consolidation trends in the U.S. since the Great Depression and discusses how the number of de novo charters has plunged in recent years. He explains how today’s community banks are TIRED (dealing with Transitions, Interest rates, Regulations, Expenses and Deployment of new technology). These factors, along with increased regulatory requirements and improved buyer conditions, will likely accelerate mergers and acquisitions, rather than fuel expansions.

The drop of de novo charters in recent years is also discussed. Trey Maust, co-founder and co-president of Oregon City, Ore.-based Lewis and Clark Bank, sheds light on the process of starting a new bank, describing his experience with launching Lewis and Clark in 2006. In regard to emerging technologies such as mobile banking, R.H. (Hank) Seale III, founder and chairman of Q2 and of CBANC Network, both in Austin, Texas, explains how crucial it is for community bankers to have visibility in the virtual channel to be able to engage with today’s customers and why it is important to view and invest in this channel like a bank branch.

Day 1

Introduction: St. Louis Fed BS&R Senior Vice President Julie Stackhouse (4:18)
Welcome: St. Louis Fed President James Bullard (3:58)
Conference Overview: CSBS President John Ryan (4:32)
Conference Overview: Federal Reserve Gov. Jerome Powell (10:09)
Morning Keynote Address: Kansas City Fed President Esther George (39:37)

Research Session 1: Community Bank Formation, Behavior and Performance
Research Panel 1 Moderator: Ken B. Cyree (6:41)
Research Panel 1 Presenter: Chiwon Yom (16:30)
Research Panel 1 Presenter: Jacob Gramlich (18:05)
Research Panel 1 Presenter: Zhaozhao He (16:59)
Research Panel 1 Presenter: Chuck Morris (22:43)
Research Panel 1 Community Banker Discussant: Mark Schroeder (13:43)
Research Panel 1 Follow-up: Ken B. Cyree (4:22)
Research Panel 1 Q&A (9:49)

Research Session 2: The Effect of Government Policy on Bank Lending and Risk-Taking
Research Panel 2 Moderator: Richard A. Brown (10:02)
Research Panel 2 Presenter: William Bassett (21:54)
Research Panel 2 Presenter: Dean Amel (19:38)
Research Panel 2 Presenter: Julie Anderson Hill (24:50)
Research Panel 2 Community Banker Discussant: David C. Williams (21:05)
Research Panel 2 Q&A (10:42)

Research Session 3: The Effect of Government Policy on Bank Lending and Risk-Taking
Research Panel 3 Moderator: Heidi Mandanis Schooner (5:21)
Research Panel 3 Presenter: Hester Peirce (18:05)
Research Panel 3 Presenter: Joshua Mitts (16:03)
Research Panel 3 Presenter: Arthur Wilmarth, Jr. (21:13)
Research Panel 3 Presenter: Tanya D. Marsh (15:13)
Research Panel 2 Community Banker Discussant: J. Pat Hickman (19:09)
Research Panel 3 Q&A (9:21)

Evening Keynote Address
Evening Keynote Introduction: Candace Franks (3:21)
Evening Keynote Presentation: Rebeca Romero Rainey (28:16)

Day 2

Presentation of Community Banking in the 21st Century: Opportunities, Challenges and Perspectives Report
Michael Stevens, CSBS and Andrew Meyer, St. Louis Fed (38:05)

Panel Discussion: The Future of Community Banking
Panel Discussion Moderator: Lamont Black (8:36)
Moderator: Lamont Black, DePaul University, Chicago, Ill.
Panelists: Trey Maust, co-founder and co-president of Lewis and Clark Bank, Oregon City, Ore.; R.H. (Hank) Seale III, founder and chairman of Q2 and CBANC Network, Austin, Texas; Joshua Siegel, managing partner and CEO of Stonecastle Partners LLC, New York City, N.Y.; and Thomas Zimmerman, president and CEO of Standard Bank of Monroe, Penn.
Panel Discussion Part 1: The Future of Community Banking (8:30)
Panel Discussion Part 2: The Future of Community Banking (14:46)
Panel Discussion Part 3: The Future of Community Banking (13:55)
Panel Discussion Part 4: The Future of Community Banking (24:08)
Panel and Audience Q&A (45:00)

Conference Wrap-Up and Closing Remarks: St. Louis Fed BS&R Senior Vice President Julie Stackhouse (14:39)