Invited to join a bank board: there are compelling reasons to accept. . . but careful consideration is required.

• Author: Thayer, Charles J.

In many respects the banking industry has become the favorite 'pinata' of politicians, the media and the public; everyone feels entitled to take a swipe. The recent financial crisis seriously damaged the image of the entire banking industry, including the reputations of both bankers and bank directors.

Today over 5,000 regional and community banks serve customers and communities throughout our nation. These banks not only survived the crisis but the vast majority remained profitable and they continue to serve their communities through difficult times. All financial institutions may have been painted with the 'Wall Street' brush by the media, but most community banks remain on solid footing and continue to work to support economic growth in their communities.

Serving as a board member of a community bank may have been considered an honor in the past--but times have changed. Accepting such a position today requires careful consideration. This article will explore some of the many pros and cons of serving on a bank board.

I believe the most significant challenge faced by banking today is attracting talented people to such an unpopular industry. Bank directors serve an important and unique role and it is especially important that community banks attract and retain talented people on their boards. Hopefully, the guidance that follows will help you decide if you should be one of those people.

Quality leadership needed

The banking system provides the financial liquidity required to support our nation's economic and job growth. Some politicians don't seem to understand that our nation's banks provide the oil for our nation's economic engine and without oil an engine won't run. As a result, it is essential that the banking industry attract and retain quality leadership in both day-to-day management and in the boardroom.

Community banks have a special relationship with 'small business,' and economic analysis indicates that the majority of job growth is provided by small business. Community banks are best positioned to serve the financial needs of small business and are an essential contributor to future job growth throughout our nation.

The job of a community bankdirector comes with many risks and few personal rewards. Although this article will first address some of ugly aspects of serving as a bank director, I believe it is a very worthwhile and rewarding position. I am privileged to serve on the board of a Midwest institution with banking...