By: Joe Gillen
Community banks gain a significant amount of strength and support through partnerships, and two associations have announced a merger that they hope will make their position stronger.
The Alabama Bankers Association and Community Bankers Association of Alabama have announced a merger between the two organizations to make them stronger and able to extend their reach to more communities across the state. Negotiations for the merger began in 2010, and were completed in mid-November. The newly-merged group said it will devote its attention to giving voice to banking institutions across the state.
"We are very pleased that this merger has occurred, which will allow all of the banks in Alabama to work together in promoting our industry both to the public and to legislative and regulatory officials," said Alabama Bankers Association's President Rob Finney, who will serve as chairman-elect of the new association until June 2013.
The Alabama Bankers Association currently represents 170 banks across the state with combined deposits of $84.7 billion in more than 1,500 offices. The merger is expected to provide more representation and support for these institutions that will allow them to further their goals in a unified manner. Community banks have taken up several pieces of legislation as of late, ranging from continued opposition to the Basel III reforms to the extension of TAG insurance. Further, many executives are trying to keep community banking programs intact in light of the Dodd-Frank reforms. The merger is designed to help local institutions readily prepare for and manage these changes.
While the new group has already begun transitioning to the new association, the combining of the two trade entities is not expected to reach completion until the first quarter of 2013.