Independent Banker - January 2019 - 41

and undergone business improvement processes.
For example, it's just completed the processes for
its mortgage banking area, developing initiatives to
eliminate duplicate entry of data, and improving systems
communication to make the process smoother for both
customers and staff. In the finance area, the community
bank has upgraded some of its financial analysis tools,
including a new general ledger, accounts payable and
fixed assets with more robust reporting.
Despite its tendency to attract headlines, cybersecurity
did not receive much attention in the survey, though it
remains an issue in terms of cost and strategic decisions
at Bank of Springfield.
" We're spending much more on computer services, and
security is a big issue, " Marantz says. " Plus, it makes you
more cautious of what business you get into. "
Leadership & growth
About 20 percent of CEO respondents expect a senior
leadership change at their banks next year, and 13 percent
say planning for succession is a top business challenge.
That includes Bank of Springfield. The bank's president
of 22 years retired at the end of 2018, and an executive
vice president, who is a former president of the local
chamber of commerce and a well-respected leader in the
EASING THE COMPLIANCE BURDEN
Tom Marantz
Thanks to the passage of S.2155 last year, 40 percent
of community bank CEOs surveyed feel more positive
about their regulatory burden. Compliance costs
also appear to have leveled off for many institutions,
with 58 percent of CEOs saying that spending on
regulatory compliance will stay at 2018 levels. Just
40 percent expect to increase compliance spending
by 5 percent or more, compared with 60 percent in a
similar survey in 2017.
That's not to say community banks
aren't worried about compliance. It still
ranks among the top three business
challenges for one-third of community
bank CEOs, down from 46 percent in
the last survey.
Tom Marantz, chairman and CEO of
Bank of Springfield, finds overwrought
regulatory burden a distraction from his
core business of helping customers.
" Some of the last bill that has been passed has
been very helpful, but HMDA requirements for banks
our size is an enormous leap to get under control, "
he says. " It takes time away from other areas of
the bank, where we could be developing business
instead of filling out data fields. "
Durand State Bank is right at the HMDA threshold
for the minimum number of loans for reporting.
The bank will report until the mortgage thresholds/
requirements are expanded, because president and
CEO Kathy Sutherland fears falling out of practice
might make the bank make mistakes down the road.
" Compliance is always going to be out on the
forefront as one of the higher expense items,
followed by technology, " she says.
Does your bank anticipate
spending more or less money on
compliance in 2019?
40.56%
Increase by
at least 5
percent
58.04%
Spending to
stay roughly
the same
1.40%
Decrease by at
least 5 percent
independentbanker.org Q 41
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Independent Banker - January 2019

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