After holding out for years, four midwestern states' bankers associations have voted this year to let thrifts join their ranks.
The Minnesota, Iowa, North Dakota, and Nebraska bankers associations had toyed with the idea of admitting thrifts but didn't vote for it until after federal deposit insurance issues were resolved last year.
"We were under the impression that some changes in federal legislation could leave us at odds," said John Sorenson, president of the 446-member Iowa Bankers Association.
Phil Burns, president of the Nebraska Bankers Association, agreed. "We could have done some battles," he said.
The Midwest trade groups' caution about joining forces with thrifts has become less common among state bankers associations. About 40 states, including neighboring South Dakota, had already allowed thrifts to join bankers associations, and some states' associations have gone so far as to merge with the local thrift group.
Even the American Bankers Association, which previously would not let thrifts join if membership was prohibited by their state's chapter, had changed its ways. The national trade group voted last year to let thrifts join regardless of policy at the state level.
"We've been bucking the trend out here," said James Schlosser, executive vice president of the 80-member North Dakota Bankers Association.
The midwestern groups said many issues that once divided banks from thrifts are comfortably behind them and it is time to team up on legislative issues where the two share interests.
"Many of the issues we work on-taxation, priority lien status, the ability to assess fees-apply across the board," said Mr. Sorenson.
Gary Fields, director of the ABA's state association division, said the national organization has not pushed its state groups to admit thrifts.
"The landscape changes, and we're a mirror of the financial services industry," he said. "The bankers are driving this."
Since the midwestern groups decided to admit thrifts, they've been out recruiting prospective members. As state bankers association members, thrifts would be eligible for group insurance plans, educational programming, and other benefits.
The Iowa Bankers Association has even added incentives to encourage thrifts to join this year.
The 521-member Minnesota Bankers Association has already netted TCF Financial, a thrift that recently converted to a bank charter and is one of the largest financial institutions in the state. The North Dakota Bankers Association is hoping to bring the state's four thrifts into its fold; and the Iowa Bankers Association has received dues from two of Iowa's 29 thrifts.
Robert D. Anderson, president and chief executive officer of Fargo, N.D.'s Gate City Federal Savings Bank, said his thrift is interested in joining the bankers association, especially since the North Dakota thrift trade group folded because it had too few members.
Gate City sees NDBA membership "as an opportunity to associate with more people in our industry," Mr. Anderson said.
