March 26, 2026

Register today for the ICBA Capital Summit. ICBA Capital Summit

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Congratulations to the banks celebrating March and April anniversaries as chartered institutions!

There is no shortage of reasons to feel uneasy right now. Economic signals are mixed. Politics are loud and unresolved. Geopolitics remain unsettled. Social institutions feel stretched thin. None of this is new, but the overlap is what makes this moment feel heavier. History would call this a pressure phase. A period where systems are tested not by a single shock, but by sustained strain.

Deposit growth isn’t as simple as it used to be. Community banks across the country feel that shift every day. For decades, competitive interest rates and strong local relationships were enough to bring in new deposits. Today, those factors still matter, but they’re no longer the whole story.

Compliance is recognized by the financial industry as a high-risk function. Failure to manage it effectively can result in high costs to an institution, as witnessed by many supervisory enforcement actions and fair lending settlements over the years.

Rising competition and consumer expectations mean community financial institutions must operate more efficiently while delivering modern, personalized services. Meanwhile, advances in AI, open banking, cybersecurity and regulatory change are reshaping the industry and creating new opportunities for those who adapt.

For community financial institutions, the conversation around the future of AI in banking is no longer theoretical. Leaders are asking practical questions about how AI helps banks operate more efficiently, where it delivers measurable value and how it can be applied while maintaining transparency and trust. Nowhere is transparency more important than in a community financial institution’s CECL calculation.

It appears that, if the nominee for the next Federal Reserve chairman is confirmed by the Senate, he will have to roll up his sleeves to achieve some of his monetary policy priorities. Not that Kevin Warsh isn’t up to the task. He served on the Fed’s board of governors for five years, from 2006 to 2011, before returning to academia, and so has first-hand experience with the workings of the board. This is unusual, but not unprecedented; two recent Fed chairmen, Ben Bernanke and Janet Yellen, served as governors, left and returned to lead the Fed.

As financial services continue to shift, community banks are positioned to be the anchors for the industry, supporting our customers and communities with a resiliency that transcends the environment. By continuing to lean into the personal relationships we build, we differentiate ourselves and bring immense value to those we serve.