IBAA members elected a new slate of executive officers last month at the 1998 National Convention and Techworld in Honolulu, Hawaii. These bankers, who will lead IBAA during the upcoming year, represent distinct communities throughout America. Some live and work where agriculture is the main industry. Others come from areas where small businesses employ most of their neighbors and friends.
Along with various professional achievements, each has demonstrated a long-term commitment to community banking. We congratulate them on their selection to IBAA's top leadership positions, and we look forward to an exciting and productive year under their direction.
IBAA PRESIDENT William McQuillan Greeley, Neb.
highly regarded agricultural banker, Bill McQuillan believes community bankers must quickly address growing capital disintermediation in many of their communities. In many cases, the bank funding problem has its roots in aging rural customers' deposit wealth being transferred to their relatives in urban areas.
As IBAA's president, McQuillan plans to continue IBAA's efforts to supplement rural bankers' lendable funds with wholesale funding sources tied to the capital markets.I The primary sources for funding would be access to Farm Credit Bank advances and an enhanced availability of funding from the Federal Home Loan Bank so all rural community banks would be allowed to borrow and pledge agricultural real estate loans as collateral.
McQuillan, who serves as the chairman of the IBAA, ABA and ACB Credit Union Coordinating Committee, the banking industry's panel on credit union issues, also wants to make taxpayers and the Congress more aware of the unfair competition banks face from credit unions that do not comply with their legal single common bond.
"We're not after the majority of credit unions," he notes. "We're after large credit union conglomerates that are stepping outside their proper authority, abusing the law and receiving a huge tax subsidy each year, compliments of the American taxpayer."
Making more bankers aware of the need to adapt tO the "electronic information highway" is another objective McQuillan hopes to achieve. His own bank serves as an Internet service provider that supplies his community and county with access to the Internet through a local telephone change. He is also a leader in developing home-based jobs in his rural community of 600 people through Internet connections. McQuillan is the president and CEO of City National Bank in Greeley, Neb. The bank holds $17.2 million in assets and works hard to serve agriculture, its community's main industry.
McQuillan also is finishing out a second three-year term on the Board of the Federal Reserve Bank of Kansas City and serves as ee president of the Greeley Chamber of Commerce and vice president of the local development corporation.
Active with the IBAA for the past 15 years, McQuillan is former president of the Nebraska Independent Bankers Association. He still serves on the organization's board of directors. His IBAA leadership positions include service as adirector, a chairman of the Agriculture-Rural America Committee and a member of the Policy Development and Long Term Planning committees. Robert N. Barsness Prior Lake, Minn. Bob Barsness says he is eager to communicate the community banking story on the national level, particularly the important economic assistance community banks provide for their customers and communities. "No one's going to tell it for us," he offers, "so we have to get that message out ourselves."
Barsness says one of the biggest challenges for community banks is preparing for rigorous competition with big banks, security firms and others trying to steal their business. Offering a full range of financial services will provide the best defense in that struggle, he says.
A former U.S. Marine officer who served in Vietnam, Barsness is the president of Prior Lake State Bank in Prior Lake, Minn., a $78 million-asset bank in a bedroom community outside Minneapolis. For 1994-95, Barsness served as the chairman of the Independent Community Bankers of Minnesota. He is a charter president of the Bank Holding Company Association of Minnesota and served as a director of the Community Bank Service Corp. He served on the board of Shazam Inc. and is a member of the Fannie Mae National Advisory Council. He is the president of the Prior Lake Economic Development Authority and is a past president of the Prior Lake Rotary Club.
He most recently served as IBAA's Bank Education Committee chairman and has served on the Bank Operations, IBPAC, Long Term Planning and Policy Development committees. He is on the board of IBAA Mortgage Corp. Thomas J. Sheehan Grafton, Wis
With his strong bank operations background, Tom Sheehan has testified before Congress for IBAA on issues ranging from electronic payment programs to ATM surcharging to lending and accounting rules.
Sheehan is president and CEO of Grafton State Bank in Grafton, Wis., a $95 million-asset community bank with a strong mortgage operation. He serves as chairman of IBAA's Bank Operations Committee and as a board member of IBAA Mortgage Corp., IBAA's mortgage and manufactured housing subsidiary.
Sheehan is a strong supporter of IBAA's educational efforts. More than ever, he says, community bankers need to stay sharp on the many changes and developments occurring within the industry. Perhaps nowhere is this most obvious than with technology.
"I think IBAA can be very helpful to our banks in providing information and monitoring what is going on," Sheehan says. "Vigilance is going to be more important than it was in the past because things are changing more rapidly."
Sheehan says community banks must adapt to technological change and use innovation to their advantage. Never have there been more technology vendors seeking community bankers' business for such a wide array of products and services. However, the greatest technology challenge for community banks, Sheehan says, is not in providing the latest or glitziest product. The greatest challenge is in making sure technology does not interfere with the close ties and understanding community banks have with their customers. The consumer backlash against the high fees and impersonal service of big institutions is growing, he adds, leading more to recognize the value of the everyday personal service community banks provide.
"We need to know our customer better than we've ever known our customer in the past," he says.
Sheehan serves as IBAA's representative to the board of directors of the Banking Industry Technology Secretariat and serves on the National Advisory Council for Fannie Mae. He also recently served on the U.S. Department of Housing and Urban Development's RESPA rulemaking committee and on the Federal Reserve's task force on electronic check presentment. He has also published several articles in trade publications. Walter E Dollar Jr. Harleysville, Pa No meaningful text supplied by OCRS ty banks in eastern Pennsylvania, Citizens National Bank of Lansford and Security National Bank of Pottstown. Combined, the three community banks have about $1 billion in assets.
"We think big and act small," Daller says of the three growing family community banks he serves. "We pay closer attention and have to work harder to keep that [community banking] culture going within the organization. I think everybody has to, but it's worth it. Customers want and appreciate it."
Daller says competing for loans and finding new sources of funding are among the biggest challenges community banks face today.
"We've got to find new and different ways to compete, and I think we can," he says.
Harleysville National Bank and Trust, recognizing that baby boomers are inheriting assets from their aging parents, has been growing its trust department. Daller says it's a wonderful time to find new trust customers.
Helping community banks stay competitive is one of his biggest goals in serving as an IBAA officer, Daller says. A past IBAA Bancard director, Daller this year became an organizer of TCM Bank, N.A. (in organization), a limited purpose credit card bank formed by IBAA Bancard to serve community banks' exclusive needs.
Daller has served in many banking industry positions. He is a former IBAA board member, a past IBAA Nominating Committee member and serves on IBAA's Bank Services Committee.
In January 1996, the Federal Reserve Bank of Philadelphia selected him to serve on the highly prestigious Federal Advisory Council of the Board of Governors-one of the few community bankers ever so honored. He is a former director of the Pennsylvania Association of Community Bankers.
Kenneth H. Rayborn Cleveland, Tenn. Ken Rayborn is the president and CEO of First citizens Bank in Cleveland, Tenn., community bordering the southern-most end of the Appalachian Mountains.
Rayborn, who started in banding as a young courier before steadily working his way into the executive suite, remains an outspoken advocate for our industry. He reminds others that community banks offer everyday people the chance to succeed with little more than a dream, a strong character and the will to work hard.
In recent years, Rayborn has been busy starting locally operated community banks in distinct markets across the Tennessee mountain area. He is chairman of The Home Bank in Ducktown, Tenn., which has offices in the tri-state region of Georgia, Tennessee and North Carolina. He also serves as chairman of The Home Bank of Tennessee, which is headquartered in the Knoxville suburb of Maryville, Tenn.
Rayborn's most recent startup endeavor is Infinity Mortgage Group in Knoxville, Tenn., the mortgage arm of his family of community banks. He serves as chairman of Infinity Mortgage.
Active with the United Way, Rayborn has a long history of civic and public service. He served on his state's Governor's Business Advisory Committee and on the City of Cleveland's Industrial Board, where he has helped launch several successful economic development projects. In addition, he serves on the board of the Cleveland State Community College and on the Lee College Business Advisory Board.
As an industry leader, Rayborn has also served as a director of a number of other community banks and small businesses, receiving national recognition for the community bank he has led in Cleveland. A former elected state IBAA director, he has served on IBAA's Federal Legislation Committee.
William D. Sones
Brookhaven, Miss. Bill Sones' presidency was marked by significant achievement. His top priority was to keep IBAA's membership numbers strong. Despite ongoing industry consolidation, IBAA witd an increase in membership *rear. Nearly 340 new IBAA bets were recruited in 1997. also worked ta ensure that nunity banks continued their al role in the nation's finan;ystem. He led IBAA's effort )97 that helped stall massive cial restructuring legislation ce it reached the floor of the House of Representatives. If ted, the legislation would antle long-standing barriers een banking and commerce further concentrate our nas diversified financial system Ilo*swing banks, brokerage and insurance companies to one another.
aes also stood at the helm of i's coalition efforts behind axpayer Relief Act of 1997, h brought vital tax relief to amers, farms and small busies, including community s.
cognizing another pivotal issue for community banks, Sones mobilized IBAA members to strongly support the Federal Reserve's ongoing crucial role in providing banks check clearing and ACH services. The Rivlin Committee report earlier this year reaffirmed Federal Reserve's payments services.
Last year Sones also became a principal organizer of TCM Bank, N.A. (in organization), a limited purpose credit card bank formed by IBAA Bancard to serve the special needs of community banks.
Sones is chairman, president and CEO of State Bank & Trust Co. in Brookhaven, Miss. He has served in many industry and civic positions, including a current post on the Board of Trustees for Mississippi College.
Sones also serves on a key FDIC advisory committee and on the National Advisory Council of Fannie Mae. Kenneth . Guenther Washington, D.C. en Guenther has served IBAA as executive vice president since 1982. Under his direction, IBAA has grown and diversified significantly.
Before joining IBAA, Guenther's public service career spanned more than 20 years in a variety of high government posts. He served as an assistant to the Board of Governors of the Federal Reserve System. He reported directly to various Federal Reserve chairmen, including the esteemed Paul Volker.
In 1977, Federal Reserve Chairman Burns awarded him the Federal Reserve's Distinguished Service Award. President Carter awarded him a pen used to sign the historic Depository Institutions Deregulation and Monetary Control Act of 1980, a law he helped enact.
Before working for the Federal Reserve, Guenther served in the Ford White House reporting directly to the assistant to the president, Bill Seidman. He also previously worked as a U.S. executive director in the InterAmerican Development Bank-a position that required a presidential appointment and advice and consent of the U.S. Senate. He also served as an economic assistant to former Sen. Jacob Javits and in the U.S. Department of State as a foreign service officer, both in Washington and in South America.
Guenther is a board member of three of four IBAA service subsidiaries-IBAA Bancard Inc., IBAA Financial Services Corp. and IBAA Securities Corp. He also serves on the board of the holding company for IBAA's subsidiaries, Community Banking Network Inc. He is a member of the National Advisory Committee of the Small Business Administration and the board of the Social Compact, a nonprofit organization dedicated helping to improve economically distressed communities.…