Commissioner's Corner
By: Clancy Norris, Bank Commissioner
Dear Kansas Bankers:
As many of you know, I am retiring from the OSBC and, while my official retirement date is May 1st, my last work day at the OSBC will be March 31st. I would like to thank you for allowing me to work with you and for you these past three years. Being the Bank Commissioner has been one of my most meaningful work experiences. I can honestly say I have enjoyed almost every day serving as your Bank Commissioner. It has been a great honor and I could not have done it without a great staff to support me. Banking is a very honorable occupation and my appointment as Commissioner was the final culmination of a great banking career - thirty-six years in all. I'm very proud to call each of you my friend; we've had a good relationship and I will cherish your friendship forever.
The past year proved to be a really good banking year. Earnings records were set in two of the four quarters, with the second quarter being the best in recent history. We are hopeful that this momentum will continue and endure through 2006 and beyond. Specifically, we are hoping for another profitable year for the banking industry. However, there are uncertainties. Will banks be able to overcome shrinking net interest margins? What about long term rates? Will short term rates continue to rise, making bank deposits more attractive to consumers? A changing rate environment can present many challenges; however, the vast majority of the management teams of our Kansas banks are very capable of measuring and controlling the level of interest rate risk.
Indications show that there are some very good things to come and look forward to. The housing market is still strong, despite the seven percent decline in loan applications during 2005. Additionally, the home equity market continues to be a good source for consumers who are locked into low-rate first mortgages and need extra money for debt consolidation and tax payments this spring. Consumer confidence was rising at the end of 2005, as the index was 103.6 in December, 85.2 in October and 98.3 in November.
At the OSBC, we are confident Kansas banks will remain strong. There were no bank closings during the past three years and we are hoping for more new charters and conversions of national banks to state bank charters in 2006.
Thanks for the memories and the wonderful experience of leading Kansas bankers. I would especially like to thank Governor Kathleen Sebelius for her trust and support during my appointment. I would also like to express my appreciation for the support and positive attitude demonstrated by the Senate Financial Institutions and Insurance Committee chaired by Senator Ruth Teichman and the House Financial Institutions Committee chaired by Representative Ray Cox. I must also thank each and every OSBC staff member (all 90 of them)! They have performed their duties in a very professional and ethical manner and I will miss them. Last, but certainly not least, thanks to each of the State Banking Board members for your service to our state and the banking industry.
God Bless You All,
Clancy Norris
Bank Commissioner
