ABA Banking Journal - November/December 2017 - 8

> CHAIRMAN'S VIEW

BY LINE

Community
Banking
BY KEN BURGESS

GROWING UP IN West Texas, I saw and learned first-hand from my father the
positive impact that a community banker and a community bank can have on
people's lives.
This is an inspirational lesson that
many of you have learned from
your mother or father as well. And
it may have been the tipping point
in your pursuit of banking as a
professional calling.
I know it was for me. In 1998, I started
my own bank-FirstCapital Bank of
Texas in Midland. The story of my
bank-we're a $1 billion institution-
would be extremely difficult to
duplicate today. As I testified earlier
this year before a House Financial
Services subcommittee, new bank
startups have dwindled to a handful
over the past several years.
There are two main reasons: excessive
capital requirements and onerous
regulations.
In the not-so-distant past, de novo
activity added several hundred new
banks into our economic system each
year. These new banks, with their
typically close ties to customers and
communities, knit new sections into
our nation's economic fabric. They
helped propel economic growth and
were formidable competitors-to the
benefit of banks, communities and
customers alike. They were part of a
system of diverse banks propelling a
dynamic U.S. economy.
It's a system that we know is well
worth nurturing. Fortunately, other
people agree.
8

ABA BANKING JOURNAL | NOVEMBER/DECEMBER 2017

A recent survey for ABA by Morning
Consult that found that Americans
overwhelmingly believe that our
economy needs banks of all sizes, and
that a majority are concerned about
fewer banks. The survey also showed
that Americans widely understand
the benefits banks bring to their
communities-79 percent agreed that
banks play an important role through
financial education offerings and
community event sponsorships, and
87 percent agreed that neighborhood
branches play an important role by
supporting local businesses.
More than half (54 percent) said they
were very or somewhat concerned
about industry consolidation, and 87
percent said that it was somewhat
or very important to have a local
bank branch easily accessible from
their home.
While Americans "get" the importance
of our diverse banking system, we
need to continue to work in Washington
to build a regulatory and legislative
environment that supports rather than
punishes our industry. That's why ABA
has long advocated tailored regulations
that recognize a bank's risks and
business model rather than apply
thresholds that are arbitrary and a poor
substitute for regulatory policy.
We've seen what's been happening
and you know the numbers: We've
gone from 8,700 to 5,900 banks

We've gone from 8,700
to 5,900 banks over
the past decade. It's
time to turn the tide
of this disturbing trend
and create an economic
environment that
encourages new bank
charters, and protect
communities ...
over the past decade. It's time to turn
the tide of this disturbing trend and
create an economic environment that
encourages new bank charters, and
protect communities from losing a key
partner supporting economic growth.
Gone are the days we can sit at our
desks and simply deal with the daily
challenges in our banks. We need
to engage-to change the regulatory
environment from one of high hurdles
and arbitrary barriers to one that
nurtures and supports new bank
startups and our diverse industry.
I like to say that we are subject-matter
experts when it comes to meeting
our customers' financial needs and
growing our economy. The people
making the rules-legislating the
laws that we must live by-are not as
knowledgeable about our industry and
what we do.
That's where you and I come in. As
community banking exemplars and
educators.
ABA Chairman KEN BURGESS is chairman of
FirstCapital Bank of Texas in Midland, Texas.



Table of Contents for the Digital Edition of ABA Banking Journal - November/December 2017

Chairman’s View
Upfront
Legal Briefs
Economic Outlook
Power Up Profile
Pitching In
Choices and Options Down on the Farm
Eager or Not, Every Board Needs an M&A Strategy
Adapting to Survive
More Than Just a Drink
Operations
Payments
Small Business Lending
Human Resources
ABA Compliance Center Inbox
From the States
Corporate Social Responsibility
Index of Advertisers
From the Vault
ABA Banking Journal - November/December 2017 - Intro
ABA Banking Journal - November/December 2017 - ebelly1
ABA Banking Journal - November/December 2017 - ebelly2
ABA Banking Journal - November/December 2017 - cover1
ABA Banking Journal - November/December 2017 - cover2
ABA Banking Journal - November/December 2017 - 3
ABA Banking Journal - November/December 2017 - 4
ABA Banking Journal - November/December 2017 - 5
ABA Banking Journal - November/December 2017 - 6
ABA Banking Journal - November/December 2017 - 7
ABA Banking Journal - November/December 2017 - Chairman’s View
ABA Banking Journal - November/December 2017 - 9
ABA Banking Journal - November/December 2017 - Upfront
ABA Banking Journal - November/December 2017 - 11
ABA Banking Journal - November/December 2017 - 12
ABA Banking Journal - November/December 2017 - 13
ABA Banking Journal - November/December 2017 - 14
ABA Banking Journal - November/December 2017 - 15
ABA Banking Journal - November/December 2017 - Legal Briefs
ABA Banking Journal - November/December 2017 - 17
ABA Banking Journal - November/December 2017 - Economic Outlook
ABA Banking Journal - November/December 2017 - Power Up Profile
ABA Banking Journal - November/December 2017 - Pitching In
ABA Banking Journal - November/December 2017 - 21
ABA Banking Journal - November/December 2017 - 22
ABA Banking Journal - November/December 2017 - 23
ABA Banking Journal - November/December 2017 - 24
ABA Banking Journal - November/December 2017 - 25
ABA Banking Journal - November/December 2017 - Choices and Options Down on the Farm
ABA Banking Journal - November/December 2017 - 27
ABA Banking Journal - November/December 2017 - Eager or Not, Every Board Needs an M&A Strategy
ABA Banking Journal - November/December 2017 - 29
ABA Banking Journal - November/December 2017 - Adapting to Survive
ABA Banking Journal - November/December 2017 - 31
ABA Banking Journal - November/December 2017 - 32
ABA Banking Journal - November/December 2017 - 33
ABA Banking Journal - November/December 2017 - More Than Just a Drink
ABA Banking Journal - November/December 2017 - 35
ABA Banking Journal - November/December 2017 - Operations
ABA Banking Journal - November/December 2017 - 37
ABA Banking Journal - November/December 2017 - Payments
ABA Banking Journal - November/December 2017 - 39
ABA Banking Journal - November/December 2017 - Small Business Lending
ABA Banking Journal - November/December 2017 - 41
ABA Banking Journal - November/December 2017 - Human Resources
ABA Banking Journal - November/December 2017 - 43
ABA Banking Journal - November/December 2017 - 44
ABA Banking Journal - November/December 2017 - ABA Compliance Center Inbox
ABA Banking Journal - November/December 2017 - From the States
ABA Banking Journal - November/December 2017 - 47
ABA Banking Journal - November/December 2017 - Corporate Social Responsibility
ABA Banking Journal - November/December 2017 - Index of Advertisers
ABA Banking Journal - November/December 2017 - From the Vault
ABA Banking Journal - November/December 2017 - cover3
ABA Banking Journal - November/December 2017 - cover4
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