Community Banking News Blog | Community Bankers of Iowa (CBI)

Rural Mainstreet Banks Lose Deposits Again: Bank CEOs Expect Flat Farmland Prices Over Next 12 Months

5/22/2023

May 2023 Survey Results at a Glance:

The May 2023 Rural Mainstreet Index (RMI) rose above growth neutral to its highest reading since May 2022.
On average, bankers estimated that farmland prices in their area rose 4.3% over the past 12 months.
On average, bankers expect farmland prices in their area to remain stagnant (0%) for the next 12 months.
For the second straight month, checking deposits decreased to a record low.
Approximately 84.6% of bank CEOs expect banks to continue to report insolvency challenges.
Between the 2008-09 banking crisis and December 2022, the region lost 41.5% of its banks through mergers and insolvencies.

OMAHA, Neb. (May 18, 2023) -- After declining below growth neutral for March, the overall Rural Mainstreet Index expanded above the threshold for a second straight month, according to the May monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

Overall: The region’s overall reading in May climbed to 55.8 from April’s 50.1. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

“The Rural Mainstreet economy continues to experience slow economic growth. Only 11.5% of bankers reported improving economic conditions for the month, with 88.5% indicating no change in economic conditions from April’s slow growth,” said Dr. Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

Farming and Ranching Land Prices: The region’s farmland price index dropped to 56.3 from April’s 64.6. This was the 32nd straight month that the index has advanced above 50.0.

Bankers reported that non-pasture farmland prices in their area grew by an average of 4.3% over the past 12 months. The bankers responded negatively about the future by reporting an average expected price growth of 0.0% over the next 12 months.

Rural Mainstreet Economy Records Moves Higher: Bank CEOs Report Loss of Deposits, Two-Thirds Oppose Bailouts

4/24/2023

April 2023 Survey Results at a Glance:

April’s overall reading, the Rural Mainstreet Index (RMI), rose above growth neutral for the month.
More than three of four, or 76.2%, of bank CEOs oppose the recent “bailout” of Silicon Valley Bank and Signature Bank.
Two-thirds of bank CEOs oppose all bank bailouts (i.e., community, regional and multibillion dollar banks).
Approximately 64% of bankers reported depositors exiting due to higher financial risks.
Checking deposits plummeted to a record low.
Farmland prices expanded for the 31st straight month.

OMAHA, Neb. (April 20, 2023) -- After declining below growth neutral for March, the overall Rural Mainstreet Index expanded above the threshold for the month, according to the April monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

Overall: The region’s overall reading in April climbed to 50.1 from March’s 45.6. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

“The Rural Mainstreet economy continues to experience slow, to no, to negative economic growth. Only 8% of bankers reported improving economic conditions for the month with 84% indicating no change in economic conditions from March’s negative growth,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

Rural Mainstreet Economy Goes Negative for March: Only 13.6% of Bankers Tightened Farm Credit Standards

3/20/2023

March 2023 Survey Results at a Glance:

After hovering around growth neutral for three straight months, the region’s overall economic reading slumped below the threshold to its lowest reading since October of last year.
Farmland prices have now advanced for 30 straight months.
After advancing by over 9% for 2022, bank CEOs expect farmland prices to expand by only 1% over the next 12 months.
Only 13.6% of bankers tightened credit standards for farm loans this year.
Approximately 87% of bankers recommend a Federal Reserve rate hike at its next meetings, March 21-22, with almost one-third supporting a 0.50% increase.
Bank savings deposits rose to a record level.

OMAHA, Neb. (March 16, 2023) -- After three straight months of readings slightly above growth neutral, the Creighton University Rural Mainstreet Index (RMI) fell below the growth neutral threshold, 50.0, according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

Overall: The region’s overall reading in March sank below the growth neutral threshold. The March index slumped to 45.6 from 50.1 in February. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

“The Rural Mainstreet economy continues to experience slow, to no, to negative economic growth. Less than 1% of bankers reported improving economic conditions for the month with 92% indicating no change in economic conditions from February’s slow growth,” said Ernie Goss, PhD, Jack A. MacAllister Chair in Regional Economics at Creighton University’s Heider College of Business.

Farming and Ranching: The region’s farmland price index decreased to 63.0 from February’s 63.5. This was the 30th straight month that the index has advanced above 50.0.

Rural Mainstreet Economy Records Slow Growth for February: Nine of Ten Bankers Gauge Ethanol as Important to Economy

2/20/2023

February 2023 Survey Results at a Glance:

For a third straight month, the region’s overall economic reading hovered slightly above growth neutral, indicating slow growth.
Farmland prices have now advanced for 29 straight months.
Farmers have expanded their purchases of farm equipment for 25 of the past 27 months.
In 2022, the 10-state region accounted for approximately three-fourths of all U.S. ethanol production.
- Roughly 91.3% of bankers with an ethanol plant in their economy indicated that it was an important industry for their local economy.
- Only 7.7% of bankers surveyed have an ethanol plant in their economy and rank it as a relatively unimportant industry in their area.
Approximately 63.0% of bank CEOs support capture and sequestration of CO2 from ethanol plants in their area provided farmers receive adequate compensation for pipelines crossing their farmland.

OMAHA, Neb. (Feb. 16, 2023) -- For a third straight month, the Creighton University Rural Mainstreet Index (RMI) climbed above the growth neutral threshold, 50.0, according to the latest monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

Overall: The region’s overall reading in February remained above the growth neutral threshold. The February index declined to 50.1 from 53.8 in January. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

Rural Mainstreet Economy Begins 2023 on Solid Note: Bank CEOs Rank Higher Input Prices as Greatest Farm Threat

1/23/2023

January 2023 Survey Results at a Glance:

After six consecutive months of below growth neutral readings, the region’s overall economic reading rose above the growth neutral threshold for a second straight month.
In terms of 2023 threats to farms in their area, bank CEOs ranked higher input prices as the greatest threat, followed by higher interest rates.
In terms of 2023 threats to rural bankers, bank CEOs ranked low loan demand as the greatest threat to rural banks, followed by rising regulatory costs.
Farmland prices continued to expand.
Despite higher interest rates, solid farm income pushed farm equipment sales higher.

OMAHA, Neb. (Jan. 19, 2023) -- After six straight months of below growth neutral readings, the Creighton University Rural Mainstreet Index (RMI) climbed above the growth neutral threshold, 50.0, for a second consecutive month, according to the monthly survey of bank CEOs in rural areas of a 10-state region dependent on agriculture and/or energy.

Overall: The region’s overall reading in January rose above the growth neutral threshold. The January index climbed to 53.8 from 50.1 in December. The index ranges between 0 and 100, with a reading of 50.0 representing growth neutral.

2023 CBI Event Dates

1/2/2023

CBI holds and sponsors a number of informative and entertaining events throughout the year, intended to educate our members, provide networking opportunities, raise funds for educational and advocacy efforts, and support the professional development of Iowa's community bankers. Below is a schedule of dates for major CBI events tentatively being held during 2023. This is not an exhaustive list of all future live events, and dates/locations and times are subject to change.

PLEASE REFER TO THE CBI NEWS PAGE OR OTHER CBI PUBLICATIONS FOR THE LATEST INFO.

Community Bank Index (QCBI) State Performance Trends: 2022Q3

11/18/2022

compiled by CBI Endorsed Member QwickRate

STATE OF THE STATE: IA 3rd Quarter 2022
Key industry trends for the "true" community bank.

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File Size:	995 kb
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LOT Members hold Fall meeting at Kinnick Stadium

9/23/2022

CBI's Leaders of Tomorrow (LOT) group members held their Fall Business Meeting at Kinnick Stadium in Iowa City. Guest speaker Alicia Nicoletto from Nyemaster Law updated LOT members on changes to the Uniform Commercial Code, non-fungible tokens (NFTs), cryptocurrency and other issues in digital asset management.

Scott Brickman, EVO/COO of the Swarm Collective NIL presented on that organization's mission and developments in "Name, Image, Likeness" contracts, on the rise after recent NCAA regulation changes regarding college sport player compensations. Brickman explained that an important part of the Collective's purpose is to assist players in the process, and that verifiable, ongoing community service and outreach is required as part of a player's agreement with the Collective.

Community Bank Index (QCBI) State Performance Trends: 2022Q2

8/15/2022

compiled by CBI Endorsed Member QwickRate

STATE OF THE STATE: IA 2nd Quarter 2022
Key industry trends for the "true" community bank.

Click each image to view larger, or download the entire report (PDF, 1MB)

Download Full Report.
File Size:	997 kb
File Type:	pdf

Storey Kenworthy & Workspace still accepting grant applications through Aug. 31

8/15/2022

CBI Endorsed Member Storey Kenworthy & Workspace Foundation for Giving is accepting grant applications from qualified non-profit organizations until Aug. 31, 2022.

Five $5,000 grants will be awarded to selected non-profits whose programming aligns with the core giving priorities:

Abuse & Violence Prevention
Children & Education
Diversity, Equity & Inclusion
Mental Health Awareness & Services

Additional information about the Storey Kenworthy & Workspace Giving Programs and a grant application is available at www.storeykenworthy.com/community.

The Storey Kenworthy & Workspace family of companies, with 10 locations across Iowa, is a family-owned, independent office supplies and commercial interiors dealership.