Ann Marie Mehlum, president and CEO, Summit Bank, $83.4 million-assets, Eugene, Ore.

It’s too early to tell what effect the cuts have had in our market. At the bank we are lowering deposit rates while some of our non-bank competitors are keeping deposit rates high, which we expect could impact our deposit base. On a positive note, we are marketing our conventional mortgage business and funding commercial loans that continue to look pretty good in our market.

In terms of our credit stance, one change is that we are not funding spec projects for noncustomers, unless the borrowers have longer-than-usual staying power. As residential home sales slow, we want to ensure we can be there for our existing customers first.

In addition to the downward trend in industries related to residential real estate industries, our lumber industry is in a slump, as is the motor home manufacturing sector, both significant contributors in our local economy. But, local and regional economists are predicting that most areas in Oregon should fare comparatively well in this recession. There are many sectors of our economy, such as medical, that continue to grow and have a positive impact. And, our markets weren’t as “hot” as some of the markets that are cooling rapidly.

The most troublesome aspect of our current situation is that we all get painted with the same brush on Wall Street. We’ve had to communicate with shareholders that our stock is not down due to current or expected losses in our loan portfolios, as is the case with the large banks that have played a major role in the growth of the subprime business. Like thousands of community banks, we didn’t make those loans nor invest in securities backed by them. But the public doesn’t understand these differences.

What gives me a headache is that the Fed bails out these huge banks with rate cuts, yet there’s no reason to expect any change in these banks’ “short-term-focused” strategies in the future. We received 12 credit card solicitations this week at our house, all from the big three. Half of them were addressed to my two sons who are in college and have no income to repay credit card bills, not to mention no credit history. In fact, we received a few more unsolicited solicitations than usual, including offers with low starting rates and additional complications that could push card holders into 30% rates.

Regrettably, unless there’s a founder or major shareholder at the helm, it’s getting harder and harder to find responsible leadership at gargantuan companies in any industry, including mine: banking.

There’s more! And more answers from other bankers! To read the rest of this answer, and many other bankers’ answers, please click here to register or to log in:

WRITING CHECKS TO FDIC, AGAIN With the return of FDIC deposit insurance premiums, banks will be writing checks for coverage most haven’t had to pay for some time. Here’s how some banks cope. Click here to read more

TIME TO UNLOAD YOUR JOKERS? Sometimes the best solution to a bad handful of loans isn’t a workout. Sometimes the solution is to toss in the hand. Bankers and professional asset-purchasers share war stories and tips for getting the jokers off your books.

Battle of the Buck: Where bankers cut costs, squeeze profits, today Voice-over-internet telephones. ATMs sited based on income-generation capability. Plain-old hard-nosed negotiating with IT vendors. Smarter branching strategies. Nine community bankers share the way they keep honing the profit dollar today. Click here to download the PDF.