Wisconsin banker on key committees

Northwestern Financial Review, May 15-May 31, 2004 by Hilgert, Jackie

The chairmen of the Independent Community Bankers of America's 14 standing committees met with the association's leadership recently to discuss initiatives for the coming year. Some of the issues that emerged at the leadership meeting, held midApril in Santa Ana Pueblo, N.M., include: regulation of the housing GSEs, deposit insurance reform, regulatory burden relief, the industrial loan company threat to separation of banking and commerce, and the unfair tax-exemption enjoyed by large credit unions.

Charles Saeman, president and CEO of State Bank of Cross Plains, Wis., and chairman of ICBA's Lending Committee echoed other leaders' concern over the future of the housing GSEs and what may result for the Federal Home Loan Bank system. "We'll be meeting the new head of the Federal Housing Finance Board, Alicia Castaneda, in May" Saeman said. From that meeting, Saeman's 20-member committee will try to get a sense for, what he called, "a high-priority issue:" sec reporting for the GSEs. "We're concerned over what direction that will take," he said.

ICBA's full committees were scheduled to meet with their respective leaders during the association's Joint Committee Meetings May 812 in Washington B.C.

"This was a great beginning for the work ICBA will do throughout the year to serve the needs and interests of the nation's community banks," said Dale Leighty, president, chairman and CEO of First National Bank of Las Animas, Colo., and 2004-2005 chairman of ICBA.

Other bankers from the Midwest heading ICBA committees for 2004-2005 are: ICBPAC, William Rosacker, United Bankers' Bank, Bloomington, Minn.; Marketing, Alden Buerge, First State Bank of Joplin, Mo.; and Tax, Douglas McClure, Rocky Mountain Bank and Trust, Colorado Springs, Colo.

Saeman also serves on the Financial Accounting Standards Board's new Small Business Advisory Committee. The 24-member committee was established in March as a formal way to involve the business community in shaping U.S. accounting standards. Two recent moves by FASB - examination of loan participations and the treatment of loan loss reserves - concern the Wisconsin banker.

"Their present interpretation, based on when a bank goes into receivership, may in fact require banks to form special qualified entities in order to do loan participations," Saeman said. The comment period for FASB's examination of loan participations expired as this issue went to press. The impact of FASB's interpretation could be felt by small business and by small community banks, he said. "It may very well take some of the competitiveness out of the lending function."

Saeman also said he's anxious about how a discretionary part of loan loss reserves will be treated. "That's presumably been taken off the table," Saeman said, "and yet I'm led to believe that they are continuing discussion about that topic."

FASB's Small Business Advisory Committee was scheduled to hold its first meeting May 11 in Norwalk, Conn.

By Jackie Hilgert