A community bank advocate finds her home at ACB

Northwestern Financial Review, Jan 1, 2001 by Bengtson, Tom

A typical banker from the nation's heartland asks "Why should I be a member of ACB?" What do you tell them?

We have a lot of members from the Midwest. We represent community banks of all sizes and charters. Ninety percent of our members have less then a billion in assets. Our median-size member has $120 million.

Traditionally, the trade association has been an S&L group. How has the group evolved?

Well, the industry's evolved. ACB was formed 10 years ago with the merger of the old U.S. League and the National Council of Community Banks. Our membership today represents all charters. We have stock-owned institutions as well as mutual institutions. We have large, we have small. We have SAIF-insured, we have BIF-insured. It's a real diversity.

Credit unions could not be a member?

Absolutely, positively not. However, credit unions that choose to convert to mutuals are welcome. There have been some, and they start to pay taxes and become subject to CRA. In fact, we have a couple of such members.

Ok.

And they'll tell you that paying taxes isn't all that bad.

If I'm already a member of ABA or ICBA, am I going to get overlap by joining your group?

You join a trade association for advocacy; you join them for representation. Bankers have to make a choice. They have to make a decision about the positions they feel strongly about and who's advocating in their best interest. We have a very active board of directors, we have a very engaged committee process, and we do take positions that are different than the ABA and the ICBA. Sometimes, we work very closely with both of those trade associations. So, a banker needs to look at what the positions are. I mean, you can join it for camaraderie. That's one reason to join an association. But if you're really looking because you want to influence the political process - Congress as well as the agencies - then you need to make sure the voice you have in Washington reflects your views.

A year ago, ACB and ABA considered merging their organization. Is there still some interest in merger? How has the environment changed?

Well, first let's clarify. I wasn't there.

That's true.

But I am the result of the cessation of the talks. The ABA approached ACB. Discussions began about the formation of a new association, not a merger. The parameters and the minimum requirements set forth by ACB's officers at first seemed to be acceptable to the ABA officers but as the talks progressed, it was determined that they really were not. Our officers chose to walk away. They indicated they wanted an independent course. They resumed their search for a new head of the association, and that's where I came in. And the instruction I received very clearly from our board is that we have chosen an independent course, and we're going to go forward with a very strong independent voice for community banks. They felt that the talks with the ABA, if anything, were a learning experience in which we determined just how different we are from the ABA.

When you joined ACB, what did you find? What are some of the major things you've had to work on?

It's been an interesting year. When the board made the decision that it wanted to pursue an independent course, the need for restructuring became apparent. So we did a reorganization. That did mean changing staff positions and putting in place the right skill sets to take us into the future. That was very difficult and painful but I think it's been well worthwhile. We have a strong staff today that will take us forward. We reformed our budget and looked to see what we were going to do. We have strong reserves, but we needed to work on growing our operating income. The number one focus this year externally has been on membership.

Diane M. Casey is president of America's Community Bankers, a national trade organization based in Washington, D.C. Prior to joining

ACB in December 1999, Casey worked at Grant Thornton. For many years prior to that, she worked at the Independent Community Bankers of America and the Federal Reserve.