Western Independent Banker - July/August 2008 - (Page 8)

A Message From the President & CEO Credit Quality is Job 1 THE PRELIMINARY results for the WIB Regulatory Climate Survey are in as I write this column. By the time that you read this, we will have issued our Survey Report, had a face-to-face discussion with the regulators about your feedback, and conducted a webinar to review the analysis and findings. If you are a WIB member, you automatically received a complimentary copy of the report via email and also were sent a link to the recorded webinar. If you didn’t notice or receive these and would like a copy, please contact our office. If you are not a WIB bank member, you may purchase the report and webinar. More information is on our Web site at www.wib.org/survey.html. The objective of the survey was three-fold: 1) to provide banks with a heads-up on what to expect in their next exam; 2) to give banks who have had an exam a comparison to others’ experiences; and, 3) to share with regulatory agencies anything that may be constructive about the exams, culture or process. Th is Regulatory Survey is the fourth one of its kind that WIB has conducted. Our fi rst survey was in 1991. All previous surveys were conducted in the 1990s during down economic cycles. Whatever your past history with a recession, downturn or credit crunch, there is no question that the focus in most banks and with the regulatory agencies for maintaining or regaining credit quality is “Job 1” now. And, focus on CRE concentrations oversight is, as expected, way up on the regulatory radar. Downgrading by the regulators of acquisitions, development, construction loans and non-owner occupied CRE was not uncommon. My initial review of bankers’ feedback is that the regulatory climate is not a repeat of the situation in the early ’90s, during which time complaints about over-zealous regulators, who approached the process with a sledgehammer, was the norm. Th is is not to say that a small percentage of banks aren’t experiencing that dark side today, but 90% of banks responding indicated that their overall assessment of their latest safety and soundness exam was “appropriate oversight for the current conditions.” We hope that you will fi nd the results of this survey to be helpful. If you completed the survey, thank you! Although our board has not yet reviewed the results of this survey, and we have not received your feedback on the benefits of receiving this information, it is likely that we will repeat this survey if our evaluation of the benefits proves positive. Nancy E. Sheppard President & CEO 8 www.wib.org Western Independent Banker http://www.wib.org/survey.html http://www.wib.org

Table of Contents Feed for the Digital Edition of Western Independent Banker - July/August 2008

Western Independent Banker - July/August 2008 Contents A Message from the President & CEO Getting Creative and Competitive with Leaders' Incentive Compensation Financial Covenants - What Good Are They Really? Homes Within Reach Revisiting Credit Quality and Risk Management Loan Yield Shock Wave - What Can You Do? What Lending Crisis? - Community Banks Flex with Lending Strength How to Fine-Tune ALLL During Uncertain Times Productivity, Technology and Export Growth Trump Housing's Fall in the Long Run - The Economy According to Brian Wesbury Distressed Real Estate Loans and Their Property Tax "Kicker" WIB Calendar Welcome New Members Index to Advertisers advertiser.com

Western Independent Banker - July/August 2008

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