Nashville draws record crowd for CBAI Convention

Northwestern Financial Review, Oct 4, 1997 by Cronin, Robert

The Community Bankers Association of Illinois conducted its 23rd Annual Convention Sept. 18-21 at the Opryland Hotel in Nashville, Tenn. Marking the first time in the association's history that it has ventured outside of Illinois' boundaries, a record number of bankers, guests and exhibitors attended the event.

Entitled "Tuning Up for Tomorrow," the convention attracted more than 700 registrants representing over 150 Illinois community banks and thrifts.

CBAI announced the formation of the CBAI Equity Funding Program at the convention. The program will serve as a matchmaker of sorts between banks with too much capital and those in need of it Past President Paul Pogue characterized it as a move to preserve local ownership of banks.

"Effective Nov. 1, the CBAI Equity Funding Program will be activated to provide a resource for equity capital for either new bank startups or groups seeking to restore, preserve or enhance local ownership in existing institutions," he said.

"CBAI has identified several instances in which local investor groups need a boost in the capitalization process to get them over the hump, and this program is designed to do just that."

President's Remarks

During his remarks, CBAI President James Ghiglieri Jr. shared his thoughts and vision for community banking. A third generation banker from The First National Bank, Toluca, he began his remarks emphasizing the problems with the federal government, namely the federal debt. "As we all know," he said, "banking gets a real dose of this bloated bureaucracy in the form of Truth In Savings, CRA, and other forms for needless regulation."

Ghiglieri noted his optimism, however, about the future with the digital communications era and the advent of the microchip. The microchip has infiltrated all aspects of society, especially banking, he said, and is allowing selfemployment opportunities for more people and reducing their dependency on government entitlements.

"These people will need the assistance of empathetic, gifted and focused community banking entrepreneurs. With our experience serving small businesses, I firmly believe that the role of the community banker as a financial counselor will be one of the most important roles in 21st Century America," he said.

Ghiglieri's other areas of concern included community banks not relinquishing the control of the payment system. "We have a major advantage over the non-bank Internet companies, credit card providers and commercial firms in this regard, and CBAI strongly advocates its preservation," he said.

Not only is Ghiglieri a third generation banker, but he is also a third generation banking association president. His grandfather and father were both presidents of the Illinois Bankers Association.

"My father and grandfather were presidents of the old IBA and I feel that my presidency of the CBAI brings full circle an 80-year commitment by the Ghiglieri family to community banking," he concluded. A standing ovation followed.

Executive Report

Robert Wingert has served CBAI from the very beginning - 23 years ago. One banker humorously noted, "Bob took this job 23 years ago knowing he would never be promoted within the association." Wingert said that the CBAI leadership has never lost its focus of serving the membership.

"We are here to help keep community banks vibrant and prosperous by whatever means available, through effective governmental relations, high impact public relations, continuing education, leveraged purchasing and timely communication," he said.

Wingert noted that in the mid60s, banking's most important performance benchmark was the spread between borrowing and lending. Noninterest income, he said, composed only 17 percent of bank revenues. Today, 37 percent of bank revenue is in the form of noninterest sources, mainly in the form of fees, he said.

"Research verifies that consumers' tolerance for higher fees and more service charges has begun to wear thin," he said. "The big banks, however, continue to beat the drum for higher fees, and that plays right into your hands, ladies and gentlemen."

Wingert acknowledged the need for banks to generate deposits, as many banks are loaned up to their limits. The issue, he said, is competing with investment alternatives that continue to lure large and small depositors away from the bank in hopes of a higher return.

Wingert concluded with his belief, that deposits will return to the banking industry at the first sign of weakness in the stock market. "This is a matter of when, not if," he said. "Be prepared for a flight to the safety of insured deposits."

Wrapup

Other presentations included remarks from CBAI Past President Paul Poque, North Adams State Bank, Ursa, and Independent Bankers Association of America President-Elect Bill McQuillan, City National Bank, Greeley, Neb. McQuillan gave an overview of IBAA issues, including the association's opposition to bank reform legislation, H.R. 10.

Highlighting this year's convention was the election of officers for the coming year. The following officers were elected: First Vice President James Ashworth, Carlinville National Bank; Second Vice President Roger Lehmann, The Harvard State Bank; Treasurer Mark Field, The Farmers Bank, Liberty. Group directors and IBAA state directors were also elected at the convention.