Your Missouri Community Bank Broker Dealer

In 1984, four guys from Missouri left their positions at St. Louis correspondent banks and started their own brokerage firm, First St. Louis Securities. A consortium of Bankers’ Banks purchased First St. Louis Securities, Inc. in the fall of 2006 and First Bankers’ Banc Securities, Inc. or FBBS was born. MIB is the majority shareholder of FBBS and that is a point which carries a lot of weight within our walls. If you are a shareholder of MIB we consider you to be a shareholder of our company. The Bankers’ Banks did not have to purchase a securities firm and the complexities that come along with it. The fact that they did confirmed for us what we thought all along, that we went about treating relationships the right way. The FBBS Board of Directors is

comprised of the three President/CEOs of the Bankers’ Banks in our ownership group (Missouri/Kansas/Oklahoma), a President/CEO of a community bank near Kansas City and the President/Chairman of a community bank in south central Missouri. The Chairman of the Board at FBBS is David Crader, who is a gentleman banker if there ever was one. The pool of experience and expertise displayed at our board meetings is a delight to sponge from. The collective knowledge of the group encompasses every facet of community banking, especially in the state of Missouri. Customers of FBBS can take comfort in knowing these are the folks who hold our firm accountable to the shareholders and respondents of MIB. Operating as a bank focused broker

dealer, we are acutely aware of the intensely competitive natures of our business and the business of banking. We understand the challenges associated with developing relationships and ultimately how beneficial a successful one can be. The work MIB has done over the decades to grow their

community bank relationships is always at the forefront of our minds as we respectfully try to forge our own new and enhance existing relationships at FBBS. As always, the partnership has to be mutually beneficial to succeed and it’s our job to provide services that add value to your organizations. Our ownership structure plugs us in

to the pulse of community banking across Missouri and the neighboring states. As year-end approaches, one inquiry that has popped up consistently pertains to bond swaps. Given the general profitability across the banking sector and the potential for lower tax liabilities going forward, it makes sense to look at bond swaps. If tax rates are indeed headed lower there will be less economic benefit in the future to deferring income (realizing losses) in the fixed income portfolio. If you are able to have the government essentially subsidize losses at a higher rate than is anticipated next year, profitable banks should try to take advantage of this situation. Some banks may choose to realize losses simply to lower income and leave it at that. If banks have the ability to lower their tax bill and concurrently accelerate their future income schedule, they should investigate the opportunity with vigor while it exists. There is a phrase I like to employ when

it comes to purchasing bonds and that is “Be an equal opportunity exploiter”. That phrase can be employed to more than just trading bonds. Simply put, opportunities come in different forms, but if opportunity exists to add value to your bank it shouldn’t much matter what form that opportunity is packaged in. If you have interest in seeing what opportunities might lie in your bond portfolio given the current environment, we are eager to earn the opportunity to begin building new partnerships.

ARTHUR W. SPELLMEYER, President, CEO First Bankers’ Banc Securities, Inc.


Provides an underlying economic picture, down to the county level, where available, for the geographic locations where your bank is buying municipal bonds.

Contact your FBBS representative for more information.

Missouri 888-726-2880 Kansas

866-530-2846 Nebraska 866-630-1131

MIB Community BANKING 5

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