Community bank CFOs: It’s about managing your margin

Even as rates stay higher and competition for deposits remains strong, fueling margin pressure, community bank chief financial officers don’t see impending doom and focus instead on increasing other areas of income, according to the latest Independent Banker.

Details: A panel of community bank CFOs—Anita Drentlaw of New Market Bank in Elko New Market, Minn., Mike Gargaro of Citizens First Bank in Viroqua, Wis., Greg Niska of Gateway Commercial Bank in Mesa, Ariz., and Louise Bonvechio of Community National Bank in Derby, Vt.—told Independent Banker that their roles are changing because of fluctuations in the economy and the emergence of new technologies, but the goal remains funding new growth.

Highlights:

• When asked about a shifting role for CFOs, Niska said the priorities seem to adjust with the regulatory landscape. He added, “...where I used to worry more about budget variances, I’m now focusing more time on interest rate risk... where I used to worry more about how to deploy excess liquidity, we’re now focused on how to fund organic [loan] growth.”

• When asked what role a CFO should play on the management team, Drentlaw said CFOs have their fingers on the pulse of everything and noted that CFOs can be proactive in helping to manage credit quality and assisting with stress-testing practices.

Event: Today and tomorrow, CFOs are meeting in Indianapolis at ICBA's CFO Forum to discuss emerging tax and accounting strategies, managing credit risk, and cybersecurity hot topics.

More: The August issue of Independent Banker also features articles on strategic budgeting, longstanding community banks, and behavioral economics. The magazine is available on the Independent Banker website and via the digital edition.