Community Bankers of Iowa Monthly Banker Update May 2014 | Page 17

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nation. The Rural Mainstreet Index (RMI) is a unique index
covering 10 regional states, focusing on approximately 200 rural
communities with an average population of 1,300. It gives the
most current real-time analysis of the rural economy. Goss and
Bill McQuillan, former chairman of the Independent Community
Banks of America, created the monthly economic survey in
2005.

estate loans. More than one-fourth, or 25.4 percent, indicated
that their banks were no longer making owner-occupied
residential real estate loans as a result of greater regulation.
Furthermore, many other bankers reported that they would likely
cease these loans in the future. For example, Dale Leighty, CEO
of the First National Bank in Las Animas, Col., reported, “We are
considering discontinuing residential loans due to regulations.”

Colorado: After moving below growth neutral for February,
Colorado’s Rural Mainstreet Index (RMI) inched above the
50.0 threshold for two straight months advancing to 54.1
from March’s 50.9. The farmland and ranchland-price index
expanded to 50.6 from March’s 43.2. Colorado’s hiring index for
April rose to 68.9 from March’s 61.3.

Larry Rogers of the First Bank of Utica in Utica, Neb., indicated
the workload and exam requirements associated with greater
regulations have become a huge time consumer. Rogers said
that the rising regulations would help no one in rural Nebraska.

Illinois: After declining below growth neutral for three
consecutive months, the RMI for Illinois in April advanced above
the 50.0 threshold, increasing to 53.3 from March’s 49.2. The
Illinois farmland-price index rose to 36.2 from March’s 30.6. The
state’s new-hiring index improved to 57.4 from 50.7 in March.
Dirk Meminger, CEO Sauk Valley Bank in Sterling reported his
bank continues to make residential home loans but “regulation
has increased costs and impaired the ability to serve local
lending needs.”

Each month, community bank presidents and CEOs in
nonurban, agriculturally and energy-dependent portions of
a 10-state area are surveyed regarding current economic
conditions in their communities and their projected economic
outlooks six months down the road. Bankers from Colorado,
Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North
Dakota, South Dakota and Wyoming are included. The survey is
supported by a grant from Security State Bank in Ansley, Neb.
This survey represents an early snapshot of the economy
of rural, agriculturally and energy-dependent portions of the

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Tables 1 and 2 summarize survey findings
Next month’s survey results will be released on the third Thursday of the month, May 15.

Table 1: Rural Mainstreet Economy Last Two Months and One Year Ago:
(index > 50 indicates expansion)
April
2013

March
2014

April
2014

Area economic index

58.3

50.1

53.2

Loan volume

66.0

65.5

73.1

Checking deposits

63.0

65.5

65.1

Certificates of deposit and savings instruments

40.4

42.5

42.0

Farmland prices

66.9

40.9

42.9

Farm equipment sales

57.3

29.3

36.7

Home sales

70.8

51.8

63.8

Hiring

57.5

60.0

64.0

Retail business

51.4

49.2

50.0

Confidence index (area economy six months out)

56.3

47.3

54.0

Table 2: The Rural Mainstreet Economy, April 2014
Percentage of bankers reportin