Debra

Don’t Fear the Reaper “Bank employees are part of their communities and their neighbors are family. That is why disasters are felt so deeply by bank employees.

I hate to start out so pessimistic, but could times be any worse for banking and Kentucky?

We may or may not be in a recession heading into what may or may not be “inflation,” all depending upon which expert you ask. The regulators have suddenly decided that they are on center stage with no restrictions as to what they can require of you. Late payments are on the increase. Good employees are worth their weight in gold, but so very hard to find and, in some cases, to keep. Any fee you charge is now considered a junk fee and profits are considered evidence of your abuse of consumers despite the fact that you are a for profit institution. AND, our Commonwealth has suffered two of the worst natural disasters in its history, all within a year. So, what keeps our industry going and going strong?

I don’t know the answer, but it must be a sense of community. I can’t tell you the number of times that I have heard someone, usually a regulator from DC or a large metropolitan area wonder, out loud, why community banks are even interested in staying in the very rural or underserved communities in which many of you are located. That always makes me wonder how those same people know so little about traditional banks and traditional banking.

Banks are invested in their community, not just for profits and success of the bank—although banks and communities necessarily depend upon the success of the other for their own future success—but banks are also invested in their communities because they believe in the success of the community. Bank employees are part of their communities and their neighbors are family. That is why disasters are felt so deeply by bank employees.

Kentucky has more than its fair share of natural disaster this year and we still have plenty of days left before a new year arrives. Both in the areas of the earthquakes and now in the areas of the floods we hear the pain and worry in the voices of our bankers when they talk about the damage done and continuing. Western Kentucky almost seems like years ago now that we are faced with recovering the flood-damaged communities in Eastern Kentucky. But then you realize Western Kentucky was only a few short months ago and that there is still plenty to do. How do we assist our bank family and community families when the destruction is so great?

All we can do is plow ahead. We have raised a great amount of money to assist in Western Kentucky, along with many other groups, but we have to make sure we don’t suffer from disaster/charity fatigue and forget the immediacy of the disaster in Eastern Kentucky demands.

I’m sure that all of you have seen photos of bridges washed away, houses moved by the force of the water or flooded beyond the roof tops. In many cases, families and businesses lost not only everything but they are also faced with the almost unbearable task of cleaning up the wet, muddy mess of what remains and hope that they are able to get it shoveled out before the heat combined with the wet conditions lure insects, mold and bacteria which can cause diseases to everyone in that area.

Many of the counties impacted by the flooding were already economically depressed. The flooding just worsens that situation. Many have lost homes, cars, jobs and loved ones. Businesses will not be able to reopen or rebuild until clean up and reconstruction planning has been completed. Many schools will not be able to reopen on the regularly scheduled date, if at all. County officials have expressed their fears that if people leave now, they will never come back. And, along with all of that, people are just trying to figure out a way to survive.

In addition to the immediate loss to daily life, much of the rich history of Appalachian life was lost in the flood. Documents, photos and memorabilia maintained by not for profits were swept away or left waterlogged by the flood waters, with no promise that any of it can be restored—it certainly cannot be replaced. Think of losing your future and your past…all while trying to sustain your now.

Our banks are faced with their own set of problems. Not only were many branches damaged by the flooding, but many borrowers were not technically in a flood zone, so even though their house may have been completely destroyed, they will not be covered by insurance which will almost certainly leave a substantial gap after receiving relief funds.

Thank you so much for donating to the Kentucky Bankers Relief Fund when we asked during the tornadoes. Now, we need to join together, one more time, and donate service, goods and most importantly funds to help our banks help their communities recover.