Independent Banker - January 2021 - 42

2021 Community Bank CEO Outlook
deploying excess funds. " Net interest
income is always the single largest
component of revenue, " Kistler adds.
Bank of the West, a $600 millionasset
community bank in Grapevine,
Texas, has been seeing a steady
stream of income from lending,
yet vice chairman and corporate
president Cynthia Blankenship isn't
expecting much growth in revenue.
" Our loan growth has been pretty
fl at. I think fee income will stay
fl at. I think just that everything will
stay pretty fl at, " she says, making
an exception for small increases
in small business lending, and a
booming business in mortgage. " It's
hard to tell with this economy. If we
can get a vaccine and things open
up, small businesses will revive. "
The curveball of COVID-19
Blankenship is among the 35% of
community bank CEO respondents
who say one of their greatest
business challenges is something
that wasn't even on their radar this
time last year: the ongoing impact
of COVID-19.
Blankenship wonders how
long the small manufacturers,
restaurants and other Main Street
businesses that Bank of the West
counts as customers will be able to
hold on. The bank made 1,000 PPP
loans, saving more than 10,000
jobs, but another shutdown could
imperil those businesses. " We're
doing everything we can in our
communities to help support those
businesses and sustain cash fl ow for
a little while, " she says. " I just worry
about how long this will continue. "
That uncertainty for customers
and communities, paired with the
economic and political implications
of COVID-19, has Koger Propst,
president and CEO of $3.3 billionasset
ANB Bank in Denver,
monitoring the situation carefully.
The bank has been aggressive with
Eyes on tech upgrades
While nearly 40% of community bank executives said
keeping up with technology needs or advancements was
a top business challenge in 2020, only a quarter are prioritizing
technology in 2021. Just 4% say technology is their top business goal.
Many bankers interviewed say that's because they've already invested
in new core systems and upgraded digital off erings. When technology
is brought up, it's most often in the context of ensuring stronger
banking relationships in a socially distant world-including online loan
applications and account opening and treasury management services.
" For treasury management, people are really watching how funds
are being spent, managing liquidity and being mindful of the amount
of leverage they have in companies, " says vice chairman and corporate
president Cynthia Blankenship of Grapevine, Texas-based Bank of the
West, which is looking at treasury management software packages.
" We're trying to really be a partner with those small businesses and
help them more in the money management area. "
Central Bancshares Inc. in Muscatine, Iowa, revamped its treasury
management off ering in 2020 but put its rollout on hold when COVID19
hit, since it wasn't possible to go out and call on customers as
planned. " We're hoping we're able to get to rolling out that new
treasury off ering [in 2021] and have a better revenue stream for us, "
says Greg Kistler, the holding company's president and CEO, who is
also eyeing online account opening.
Opportunity Bank of Montana in Helena, Mont., is planning to
gradually begin replacing automated teller machines with interactive
teller machines in 2021. It's also planning to invest in customer
relationship management (CRM) software to better track interactions
with customers.
" As we've gotten bigger, it's more important to track that interaction
in a better way, " says president and CEO Pete Johnson.
Another area that's grown bigger: fraud. The pandemic has widely
increased the scale of fraud. Koger Propst, president and CEO of ANB
Bank in Denver, has been investing in his bank's core processes around
fraud for years and will continue to do so.
" We've been fortunate we've done well in that area, " he says, " but we
have to keep allocating resources. "
42 Q ICBA Independent Banker Q January 2021
Independent Banker - January 2021

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