FROM THE TOP
2020...Not a Year of PERFECT VISION
Ron Quinn President & CEO Peach State Bank & Trust, Gainesville 2019-2020 CBA Chairman
As I reflect to September of last year, at the CBA Annual Convention, my message was that 2020 would be a year of PERFECT VISION for our industry and our economy. Now, there has never been in my 40- year banking career a time of more UNCERTAINTY, as we approach the fourth quarter of 2020 and the beginning of 2021.
businesses and agri business clients began to feel the effect of the virus, community banks stepped up again to fund over 60% of the $350 billion allotted for the first round of PPP loans. The Corona virus has had a major effect on our economy and caused millions to lose their jobs, and many businesses to be impacted financially to the point of shutting down.
The year started with all banks in Georgia enjoying a Net Interest Margin well above 4.0 percent, something that most of us have not seen since the 1980’s. An economy that was booming, low unemployment rates nationwide and even lower in Georgia, and the stock market at all time highs with what economists predicted was less than a 20% chance of a national recession in 2020, and if there were one, Georgia would fair much better that the rest of the nation. Life was good.
We all need to realize that this recession is not a financial recession, it is a healthcare recession caused by the pandemic. Even amidst an upcoming political election with strong opinions on both sides, our economy has already started seeing signs of improvement. Unemployment numbers are beginning to rescind, and the stock market is beginning a strong rebound. The Corona virus (COVID-19) has impacted us all either personally or indirectly with friends and family that have been infected. As devastating as it is, compared to the 1918 Spanish flu which killed over 50 million worldwide, 2.5% of the entire world population, the 2020 Chinese virus (COVID-19) has accounted for over 170,000 deaths worldwide only 0.01% of the world population. The Spanish flu came and went in about 25 months, and this current pandemic is following close to the same timeline.
The regulators had been asking bankers over the last twenty years to have a strong pandemic plan prepared and tested to make sure banks and bankers were ready should a pandemic ever hit. We all felt that this was not the best use of our time, but foresight by the regulators had us all prepared, as we complied with their request. I personally would like to send a big “THANK YOU” to all our Banking Supervisory Agencies that had us all so prepared as COVID-19 began to appear in the United States. Community banks around Georgia, rolled out their plans and did what it took and continue to do what it takes to keep the banking side of the economy going. Bankers took the necessary steps to make their Banks safe for the staff and customers and keep commerce going. As our small
No, it has not been a year of PERFECT VISION, but it has been a year of CLEAR VISION for the Community Banks throughout our Nation and right here in Georgia. Never has Community Banking received so many POSITIVE accolades for doing the right thing for our customers, our local economy and even noncustomers that needed our help for survival. We have shown the strength of knowing our customers and building relationships that will last a lifetime. COMMUNITY BANKING is alive and doing quite well!!!
S e p t e m b e r / Oc t ob e r 2 0 2 0 | G e or g i a C o m m un i ti es F i rs t | 3
