Banking: The loan-volume index advanced to a robust 73.1 from March’s 65.5. The checking-deposit index slipped to 65.1 from 65.5 in March, while the index for certificates of deposit and other savings instruments dipped to 42.0 from March’s 42.5.
Hiring: Rural Mainstreet businesses continue to hire at a solid pace. The April hiring index advanced to a very healthy 64.0 from 60.0 in March. “While the farm economy slows, businesses on Rural Mainstreet continue to expand their payrolls. Despite growing job additions, Rural Mainstreet employment is still below its pre-recession level,” said Goss.
Confidence: The confidence index, which reflects expectations for the economy six months out, expanded to 54.0 from last month’s 47.3. “An improving national economy, higher agriculture commodity prices and passage of the farm bill pushed economic confidence among bankers higher for the month,” said Goss
Home and retail sales: The April home-sales index soared to 63.8 from March’s 51.8. The April retail-sales index rose to 50.0 from 49.2 in March. “Improving weather encouraged an upturn in home purchases and growth in an increase in the retail sales index.” said Goss.
Bankers were asked if new compliance regulations have caused their bank to no longer make owner -occupied residential real 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.”
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.