Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
And yeah, let's bring him in.
Speaker 2 (00:02):
He's Scott McComb with Heartland Bank and Scott.
Speaker 1 (00:06):
How are you welcome in? Brother? Hey?
Speaker 3 (00:08):
Mark? How you doing?
Speaker 4 (00:09):
Man?
Speaker 2 (00:09):
Hey doing fantastic. I haven't been able to get out
and swing them much lately. This heat is one of
those things that, yeah, you know what, I remember experiencing
some of that when I played with you last year.
I was like struggling there at the end. And this
heat sometimes can really work. It can work you into
(00:30):
a tizzy, especially when you're out there trying to golf.
Speaker 1 (00:32):
How's your game? How's your golf game?
Speaker 2 (00:34):
Good?
Speaker 1 (00:34):
I think, hope?
Speaker 3 (00:35):
Yeah, yeah, my golf game is pretty good. Actually, right
now I'm standing actually on the sixteenth toole at Pinnacle
Golf Club out in Grove City. The Commedy Bankers Association
of Ohio is having their ounting out here today, so
I just peeled off here to talk with you. So
I remember correctly though, it wasn't just the heat. I
think you were trying to break part Sciota. If I
remember you were playing pretty well?
Speaker 2 (00:57):
Yeah, yeah, sure, yeah, that was that was it. That
was what I was trying to do, is sure? Isn't
that how you always start out. You always make the
judge to the starter. You're like, hey, what's the course
record out here?
Speaker 1 (01:09):
And there?
Speaker 2 (01:12):
Right, they look at you like, hey, man, and I
hit the first shot and they go, hey, you need
to screw it up to the women's teas when you're
playing pat that's what the that's what they're telling me, like,
get up there, what are you doing?
Speaker 1 (01:23):
Uh?
Speaker 2 (01:24):
Yeah, anyway, Well that's cool you guys. Man, you guys
are out there in the Uh, it's pretty brutal today.
Hopefully you know, hydrate sunbock as they say, right, but.
Speaker 1 (01:32):
You already know exactly.
Speaker 3 (01:33):
Yeah, it's been a good day today, but a little warm,
very cool.
Speaker 2 (01:36):
I appreciate you taking a couple of minutes to chat
with us, especially given what you're doing and you're, you know,
in the middle of that right now. You know what,
I think I played in that last year and you
were not. You weren't there. You had something going on?
Is that the same outing I'm thinking of?
Speaker 3 (01:51):
Well, you're probably thinking of the Heartland Bank Charity Golf Classic,
and that's in September, on September ninth.
Speaker 1 (01:57):
But it's that pinnacle, isn't it.
Speaker 3 (01:59):
It was a pinnacle, that's right. It's going to be
September ninth at Pinnacle this year as well.
Speaker 2 (02:03):
Okay, that's what I was thinking of. I heard Pinnacle
and I knew it was around this time, but I
couldn't remember exactly which month. Okay, all right, very cool.
So first of all, we'll get to yeah, the doll
closing down like big time.
Speaker 3 (02:16):
Here.
Speaker 2 (02:17):
We'll get your thoughts on that in just a second.
But you guys, Heartland.
Speaker 1 (02:20):
Bay with big news.
Speaker 2 (02:22):
A big merger happened, and I need you to tell
me about this and how it's going to make a
lot of people smile.
Speaker 3 (02:29):
I think, right, yeah, I would think so, Mark. You know,
about three years ago, our board determined that we had
a window of opportunity between the end of twenty three
and the gang of twenty four with various things that
we're happening with our company. Obviously, our markets in Cincinnati
and Columbus are just on fire, and so our you know,
our growth, our growth teger was around fourteen and a
(02:52):
half percent, you know, per year all those years, and
so keeping up with that it's pretty tough, right, You
got to raise capital, you could potentially diluted shareholders. You know,
we needed a bigger balance sheet, and so there was
a number of strategies we looked at to try to
figure out what's the best way to do that. We
ended up just long story short, we ended up finding
a partner in German American Bank that's based in Jasper, Indiana.
(03:17):
They're very high performing community bank, about six point one
billion and total assets together, and we've combined with them
to together will be about eight point two billion in
total assets and really be able to be loaded for
bear to help, you know, our communities here in central
Ohio and Cincinnati continue to thrive. So that's really the
(03:38):
goal is to try to partner up with another organization
that has a significant amount of dry powder and some
complementary products and services to really put us on a
different plane to compete with the large banks that have
entered the Columbus market and to continue to grow with
our successful clients that we'd be able to work with
for many, many years.
Speaker 1 (03:56):
That sounds fantastic.
Speaker 2 (03:58):
Congratulations to you and of course Heartland Bag and the
people who are going to benefit greatly from this. It
sounds like so that's fantastic, good times and great news,
especially considering what we have seen today with the doll
off over a thousand and what else. I mean, there's
(04:18):
you know, tech stocks sell off. I mean there's you know,
we heard Warren Buffett what he did, and you know
we've had a couple of different reports earlier in the
show today. But yeah, closing bell had almost one thousand
and thirty four off today.
Speaker 1 (04:33):
But giving given all of that, what are.
Speaker 2 (04:36):
Your thoughts on that A and B, given that we
are in a you know, a situation where the FED
could cut the rate. I mean, Josh was just telling
me a second ago, what were you saying, you read, Josh,
with regard to the FED, possibly do an emergent.
Speaker 4 (04:52):
Discussion now that they could call because the next meeting
obviously they were saying it was going to be in September.
But there's questions now about, depending on how the rest
of this week goes, whether or not they're going to
call for an emergency meeting. And some of the rumors
are they're talking up to an immediate half to full
percentage points slashing of interest rates to stop the bleeding.
Speaker 2 (05:14):
Yeah, when you see something like that or hear about
something like that, Scott, And then of course it is
an election year and so on.
Speaker 1 (05:21):
These are some choppy waters happening right now. It seems
like for investing.
Speaker 3 (05:24):
Huh, well a little bit. I mean, we we've had
a really good run in the market, let's face it.
I mean there's been two or three years now of
over exuberance in the stock market, so we kind of
due for a little bit of a correction. And I
think that the market wants to get ahead of the Fed.
You know, look what they did back in December. You know, everybody,
(05:45):
so they said they might lower rates, and then everybody
immediately thought they're going to go back to three percent
mortgages and they're gonna have six rate cuts and all that. Well,
none of that ever came true. So I think everybody
to fi take a little pause here.
Speaker 1 (05:57):
The Fed is not.
Speaker 3 (06:00):
Does not change interest rates based on the Dow. The
Fed changes interest rates based on UH employment and UH
and the money supply. And so obviously they're tightening is
having the effect that they're desiring, which is slowing the economy,
slowing hiring, increasing unemployment, UH and and tampering down inflation.
(06:22):
So I think that uh, you know, they're they're the
desired results are there. As far as an emergency meeting
and such a service. I really don't think they're going
to react that way. I would be very disappointed if
they did, because that means that all we have to
do is reconnend Tossy or two and here comes the
FED to the rescue. And then I think that would
solidify the fact they really don't know what they're doing
if they're going to do that, because they really should
(06:43):
be focused on their mandates of unemployment and UH and
and UH. Inflation and this other stuff is going to happen.
You know, we're going to have corrections in the market,
and we can't just be depending on the FED to
come to the rescue. So although I'm in favor of
them probably stabilizing and starting the lower rates, the biggest
mistake they could make is not making sure that they've
(07:05):
killed inflation. Doesn't and I think they're right on the
edge of that.
Speaker 2 (07:08):
Doesn't it It bodes well for Heartland Bank, doesn't it?
When you know, if they do begin to lower rates,
because then it's you know, it's people coming in wanting
to borrow money, maybe credit card interest rates could you
know eventually eventually start to get a little more attractive.
And by attractive, I guess I'm being pretty generous using
(07:31):
that when I talk about a credit card rate, but
I mean those those are the types of things that
obviously drives business or traffic into you know, all the
different branches.
Speaker 3 (07:41):
Correct, Well, it depends banks are supposed to not bet
on interest rates. So back in the SNL crisis, that's
exactly what created that crisis was bank's betting on interest
rates and savings and loans being mismatched with their assets
and their liabilities. So banks really tried not to bet
on interest rate. So if if rates did come down
(08:02):
that I think that would that would benefit financial institutions
just the fact that they're they rent up so quickly,
you know, the last eighteen to twenty four months, and
so that stabilization could help because still there's an impairment
and a lot of bounce sheets with with assets that
are that are not you know, favorably set on the
yield curve. So that aoc I mark I'm getting a
(08:23):
little technical there, but so that mark could be lessened
and and uh and could create some capital inside the
banking industry. Should they lower rates, But but I don't
know that they need to. You know, we had it
one day here. I don't think it's a slide of
any point of of of any major uh, you know, complication.
I really think we ought to probably just waiting to
see what happens. Tomorrow's gonna be another day. We were
(08:44):
due for a correction and uh and I think we
got it today. So we'll have to see how things
pan out the rest of the rest of the month
and what some of those other economic indicators show.
Speaker 2 (08:54):
I was going to say, what, you know, because there
are talks fears of recession and so on, it's the
R word and so on and so forth. Would you
have to have many more days like this before a
recession could actually happen? Or is it much more? Is
it a much what's the word I'm looking for? Is
it a lot easier for that to happen than the
(09:16):
way that I'm thinking or the way that I'm feeling
with it?
Speaker 3 (09:19):
Well, I mean, the fact matter is the recession is
not necessarily penned on the stock market, you know, so,
and it's really about GDP, employment, the manufacturing index, all
of those different things. There's a whole host of over
a thirty or forty different indicators that you know, economists
get on a monthly basis and I'll be honest with you.
(09:41):
Our outlooks according to our credit expected loss model, and
I think a lot of banks show that things were improving,
you know, so they were stabilizing and improving a little bit.
So you know, I don't I don't think that the
big sell off and everybody reacting to that immediately today
is a sign that we're immediately going on into recession.
The economy has been pretty stable and if anything, if
(10:04):
it is going to take a little bit of a
turn downward, that's been planned. It's been desired by the Fed,
by their actions, so they're trying to slow the economy.
That's exactly what's happening.
Speaker 2 (10:13):
Well, congrats on the big merger Scott McComb Heartland Bank,
and thanks for taking a couple of minutes while you're
out on the on the golf course. And again you're
almost finished, so a beer is around the corner hopefully,
that's right.
Speaker 3 (10:26):
That's right, with the same to you, Mark and Josh.
Thanks and but I appreciate you guys.
Speaker 1 (10:29):
Thanks brother, We appreciate you.
And yeah, let's bring him in.
Speaker 2 (00:02):
He's Scott McComb with Heartland Bank and Scott.
Speaker 1 (00:06):
How are you welcome in? Brother? Hey?
Speaker 3 (00:08):
Mark? How you doing?
Speaker 4 (00:09):
Man?
Speaker 2 (00:09):
Hey doing fantastic. I haven't been able to get out
and swing them much lately. This heat is one of
those things that, yeah, you know what, I remember experiencing
some of that when I played with you last year.
I was like struggling there at the end. And this
heat sometimes can really work. It can work you into
(00:30):
a tizzy, especially when you're out there trying to golf.
Speaker 1 (00:32):
How's your game? How's your golf game?
Speaker 2 (00:34):
Good?
Speaker 1 (00:34):
I think, hope?
Speaker 3 (00:35):
Yeah, yeah, my golf game is pretty good. Actually, right
now I'm standing actually on the sixteenth toole at Pinnacle
Golf Club out in Grove City. The Commedy Bankers Association
of Ohio is having their ounting out here today, so
I just peeled off here to talk with you. So
I remember correctly though, it wasn't just the heat. I
think you were trying to break part Sciota. If I
remember you were playing pretty well?
Speaker 2 (00:57):
Yeah, yeah, sure, yeah, that was that was it. That
was what I was trying to do, is sure? Isn't
that how you always start out. You always make the
judge to the starter. You're like, hey, what's the course
record out here?
Speaker 1 (01:09):
And there?
Speaker 2 (01:12):
Right, they look at you like, hey, man, and I
hit the first shot and they go, hey, you need
to screw it up to the women's teas when you're
playing pat that's what the that's what they're telling me, like,
get up there, what are you doing?
Speaker 1 (01:23):
Uh?
Speaker 2 (01:24):
Yeah, anyway, Well that's cool you guys. Man, you guys
are out there in the Uh, it's pretty brutal today.
Hopefully you know, hydrate sunbock as they say, right, but.
Speaker 1 (01:32):
You already know exactly.
Speaker 3 (01:33):
Yeah, it's been a good day today, but a little warm,
very cool.
Speaker 2 (01:36):
I appreciate you taking a couple of minutes to chat
with us, especially given what you're doing and you're, you know,
in the middle of that right now. You know what,
I think I played in that last year and you
were not. You weren't there. You had something going on?
Is that the same outing I'm thinking of?
Speaker 3 (01:51):
Well, you're probably thinking of the Heartland Bank Charity Golf Classic,
and that's in September, on September ninth.
Speaker 1 (01:57):
But it's that pinnacle, isn't it.
Speaker 3 (01:59):
It was a pinnacle, that's right. It's going to be
September ninth at Pinnacle this year as well.
Speaker 2 (02:03):
Okay, that's what I was thinking of. I heard Pinnacle
and I knew it was around this time, but I
couldn't remember exactly which month. Okay, all right, very cool.
So first of all, we'll get to yeah, the doll
closing down like big time.
Speaker 3 (02:16):
Here.
Speaker 2 (02:17):
We'll get your thoughts on that in just a second.
But you guys, Heartland.
Speaker 1 (02:20):
Bay with big news.
Speaker 2 (02:22):
A big merger happened, and I need you to tell
me about this and how it's going to make a
lot of people smile.
Speaker 3 (02:29):
I think, right, yeah, I would think so, Mark. You know,
about three years ago, our board determined that we had
a window of opportunity between the end of twenty three
and the gang of twenty four with various things that
we're happening with our company. Obviously, our markets in Cincinnati
and Columbus are just on fire, and so our you know,
our growth, our growth teger was around fourteen and a
(02:52):
half percent, you know, per year all those years, and
so keeping up with that it's pretty tough, right, You
got to raise capital, you could potentially diluted shareholders. You know,
we needed a bigger balance sheet, and so there was
a number of strategies we looked at to try to
figure out what's the best way to do that. We
ended up just long story short, we ended up finding
a partner in German American Bank that's based in Jasper, Indiana.
(03:17):
They're very high performing community bank, about six point one
billion and total assets together, and we've combined with them
to together will be about eight point two billion in
total assets and really be able to be loaded for
bear to help, you know, our communities here in central
Ohio and Cincinnati continue to thrive. So that's really the
(03:38):
goal is to try to partner up with another organization
that has a significant amount of dry powder and some
complementary products and services to really put us on a
different plane to compete with the large banks that have
entered the Columbus market and to continue to grow with
our successful clients that we'd be able to work with
for many, many years.
Speaker 1 (03:56):
That sounds fantastic.
Speaker 2 (03:58):
Congratulations to you and of course Heartland Bag and the
people who are going to benefit greatly from this. It
sounds like so that's fantastic, good times and great news,
especially considering what we have seen today with the doll
off over a thousand and what else. I mean, there's
(04:18):
you know, tech stocks sell off. I mean there's you know,
we heard Warren Buffett what he did, and you know
we've had a couple of different reports earlier in the
show today. But yeah, closing bell had almost one thousand
and thirty four off today.
Speaker 1 (04:33):
But giving given all of that, what are.
Speaker 2 (04:36):
Your thoughts on that A and B, given that we
are in a you know, a situation where the FED
could cut the rate. I mean, Josh was just telling
me a second ago, what were you saying, you read, Josh,
with regard to the FED, possibly do an emergent.
Speaker 4 (04:52):
Discussion now that they could call because the next meeting
obviously they were saying it was going to be in September.
But there's questions now about, depending on how the rest
of this week goes, whether or not they're going to
call for an emergency meeting. And some of the rumors
are they're talking up to an immediate half to full
percentage points slashing of interest rates to stop the bleeding.
Speaker 2 (05:14):
Yeah, when you see something like that or hear about
something like that, Scott, And then of course it is
an election year and so on.
Speaker 1 (05:21):
These are some choppy waters happening right now. It seems
like for investing.
Speaker 3 (05:24):
Huh, well a little bit. I mean, we we've had
a really good run in the market, let's face it.
I mean there's been two or three years now of
over exuberance in the stock market, so we kind of
due for a little bit of a correction. And I
think that the market wants to get ahead of the Fed.
You know, look what they did back in December. You know, everybody,
(05:45):
so they said they might lower rates, and then everybody
immediately thought they're going to go back to three percent
mortgages and they're gonna have six rate cuts and all that. Well,
none of that ever came true. So I think everybody
to fi take a little pause here.
Speaker 1 (05:57):
The Fed is not.
Speaker 3 (06:00):
Does not change interest rates based on the Dow. The
Fed changes interest rates based on UH employment and UH
and the money supply. And so obviously they're tightening is
having the effect that they're desiring, which is slowing the economy,
slowing hiring, increasing unemployment, UH and and tampering down inflation.
(06:22):
So I think that uh, you know, they're they're the
desired results are there. As far as an emergency meeting
and such a service. I really don't think they're going
to react that way. I would be very disappointed if
they did, because that means that all we have to
do is reconnend Tossy or two and here comes the
FED to the rescue. And then I think that would
solidify the fact they really don't know what they're doing
if they're going to do that, because they really should
(06:43):
be focused on their mandates of unemployment and UH and
and UH. Inflation and this other stuff is going to happen.
You know, we're going to have corrections in the market,
and we can't just be depending on the FED to
come to the rescue. So although I'm in favor of
them probably stabilizing and starting the lower rates, the biggest
mistake they could make is not making sure that they've
(07:05):
killed inflation. Doesn't and I think they're right on the
edge of that.
Speaker 2 (07:08):
Doesn't it It bodes well for Heartland Bank, doesn't it?
When you know, if they do begin to lower rates,
because then it's you know, it's people coming in wanting
to borrow money, maybe credit card interest rates could you
know eventually eventually start to get a little more attractive.
And by attractive, I guess I'm being pretty generous using
(07:31):
that when I talk about a credit card rate, but
I mean those those are the types of things that
obviously drives business or traffic into you know, all the
different branches.
Speaker 3 (07:41):
Correct, Well, it depends banks are supposed to not bet
on interest rates. So back in the SNL crisis, that's
exactly what created that crisis was bank's betting on interest
rates and savings and loans being mismatched with their assets
and their liabilities. So banks really tried not to bet
on interest rate. So if if rates did come down
(08:02):
that I think that would that would benefit financial institutions
just the fact that they're they rent up so quickly,
you know, the last eighteen to twenty four months, and
so that stabilization could help because still there's an impairment
and a lot of bounce sheets with with assets that
are that are not you know, favorably set on the
yield curve. So that aoc I mark I'm getting a
(08:23):
little technical there, but so that mark could be lessened
and and uh and could create some capital inside the
banking industry. Should they lower rates, But but I don't
know that they need to. You know, we had it
one day here. I don't think it's a slide of
any point of of of any major uh, you know, complication.
I really think we ought to probably just waiting to
see what happens. Tomorrow's gonna be another day. We were
(08:44):
due for a correction and uh and I think we
got it today. So we'll have to see how things
pan out the rest of the rest of the month
and what some of those other economic indicators show.
Speaker 2 (08:54):
I was going to say, what, you know, because there
are talks fears of recession and so on, it's the
R word and so on and so forth. Would you
have to have many more days like this before a
recession could actually happen? Or is it much more? Is
it a much what's the word I'm looking for? Is
it a lot easier for that to happen than the
(09:16):
way that I'm thinking or the way that I'm feeling
with it?
Speaker 3 (09:19):
Well, I mean, the fact matter is the recession is
not necessarily penned on the stock market, you know, so,
and it's really about GDP, employment, the manufacturing index, all
of those different things. There's a whole host of over
a thirty or forty different indicators that you know, economists
get on a monthly basis and I'll be honest with you.
(09:41):
Our outlooks according to our credit expected loss model, and
I think a lot of banks show that things were improving,
you know, so they were stabilizing and improving a little bit.
So you know, I don't I don't think that the
big sell off and everybody reacting to that immediately today
is a sign that we're immediately going on into recession.
The economy has been pretty stable and if anything, if
(10:04):
it is going to take a little bit of a
turn downward, that's been planned. It's been desired by the Fed,
by their actions, so they're trying to slow the economy.
That's exactly what's happening.
Speaker 2 (10:13):
Well, congrats on the big merger Scott McComb Heartland Bank,
and thanks for taking a couple of minutes while you're
out on the on the golf course. And again you're
almost finished, so a beer is around the corner hopefully,
that's right.
Speaker 3 (10:26):
That's right, with the same to you, Mark and Josh.
Thanks and but I appreciate you guys.
Speaker 1 (10:29):
Thanks brother, We appreciate you.
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