This week as we enter Community Banking Month, let's share some historical facts. At first, some will find the information disturbing, however, armed with the facts of our history we can change the projected future to our advantage. The following information has been supplied to me and all of my community banking association peers across the country. They show our history, but more important, they may foreshadow the future of community banking as an industry.

• In 2011 there were NO DENOVO CHARTERS, the 1ST TIME SINCE 1934.

• In 1985 there were 18,033 community banks; in 2011 there were 7,357; A 61% DECLINE

• From December of 2007 when there were 8,534 to December of 2011 we lost 1,177 BANKS IN 4 YEARS

• In December of 1985 there were 13,631 community banks UNDER $100 MILLION in assets; TODAY: 2,416

• We are LOSING BANKS AT A RATE OF 3.75% PER YEAR (3 YEAR AVG)

• SINCE Y2K we have LOST 2,547 BANKS, a 25% LOSS

• It is projected that BY 2020 (JUST 8 YEARS) the BEST CASE will be 5,000 community banks; WORST case 4,500.

• By 2020 ONLY 5 OF 100 WILL BE "FAMILY OWNED"

• 1/3RD OF WILL BE LISTED IN SOME FORM

THE STATES

• 50% OF ALL BANK CHARTERS ARE IN 10 STATES (20%)

• 75% OF ALL BANK CHARTERS ARE IN 20 STATES (40%)

• 90% OF ALL BANK CHARTERS ARE IN 30 STATES (60%)

• 20 STATES HAVE JUST 10% OF THE NATION'S CHARTERS

• CURRENTLY 23 STATES HAVE FEWER THAN 100 CHARTERS

• 13 STATES HAVE FEWER THAN 50

• 7 STATES FEWER THAN 25

• 4 STATES HAVE FEWER THAN 15

• SOME PROJECT THAT IN 5 YEARS - UP TO 6 STATES WILL HAVE NO HOME STATE CHARTERS

If the above trends continue small businesses, consumers and communities throughout the nation will have fewer banking choices.

Now that you have reviewed the facts will you allow the projected future numbers on a piece of paper define us? Is forewarned, forearmed? 

The question becomes, will you as existing community banks allow the projected future to become a self-fulfilling prophecy, your predetermined destiny? Or will you band together to change the future, by adapting, re-inventing and becoming an involved member or new member of IBANYS? Your association, the Independent Bankers Association, is the only association in New York dedicated to one singular mission: the protection, welfare and survival of community banks. And it needs your help to continue the fulfillment of that mission.

If you are a member, ask us or tell us how you would like to become involved. Perhaps you would like to serve as a committee member or board member or by recruiting new members or becoming a regional meeting leader. Through our combined service we become a stronger organization and better leaders. Together we can more quickly adapt and control our destiny. Don't wait for the other guy to stand-up...you are needed now!

By Dan Valente, IBANYS Director of Government Relations

Last week Governor Cuomo and the state legislature passed the $132.6 billion state budget. For the first time in nearly 30 years it was done in daylight and was passed before the April 1st deadline. Now for the next two weeks, the New York State legislature and U.S. Congress are in recess in observance of Easter and Passover holidays. Members will return to their respective states and districts, spending time with their constituents to engage in dialog on a variety of issues.

IBANYS would like you to take full advantage of this opportunity to either call or visit with your state and congressional representatives. The relationships that you develop and how you educate your elected officials about issues of importance in your hometown, helps IBANYS in both Washington and Albany. When elected officials can associate a name or a face with one of their constituents, that association can be the difference in how the elected officials vote on legislation. So, please reach out to you elected officials and continue to make a difference for your community and community banks across the country.   

Links to contact information are included below:

New York State Assembly - http://assembly.state.ny.us/mem/   

New York State Senate - http://www.nysenate.gov/senators   

U.S. Congress - http://www.govtrack.us/congress/members   

April is Community Banking Month! States, local governments, and community banks recognize Community Banking Month. Some community banks partner with local charities to host special events, while others promote economic development initiatives. Many community banks traditionally mark the month by highlighting their community service or financial education programs.

IBANYS Chairman and President and CEO of Solvay Bank marked Community Banking Month by reflecting on the services his institution provides. "Every day, I just love coming to work knowing that as a Community Banker, I will be able to talk to customers and provide them the products and services they need to make their dreams come true," Paul said.