Pub. 17 2020 Issue 1

Issue 1 • 2020 3 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S — H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S • Authority for the FDIC to establish a temporary pro- gram to guarantee bank debt. • Forbearance policies for loans backed by federal gov- ernment agencies or GSEs. If it were not for these provisions in the bill, I hate to imag- ine what would have happened to small businesses in America. As every state is struggling with their own issues caused by the virus and the subsequent economic shutdown, New Mexico also has its fair share of problems to contend with. In the last edition of the New Mexico Banker’s Digest, I spoke about the “revenue lottery” the state was enjoying due to the billions of dollars the oil and gas industry had contributed to the general fund. I mentioned the volatile nature of the oil and gas industry and pleaded to our Legislators to be diligent with the additional funds and restrain from creating recurring rev- enue projects. I never dreamed that just a few months later oil prices would drop to the lowest level in 18-years. Apparently, the Legislators did not take the advice I and many others were giving. As a result, the Legislature will be called back into a special session to address the revisions to the 2020-2021 budget and discuss a possible state economic relief package. Many of those new recurring revenue projects will be put on hold or cut dramatically. Hopefully, we can learn some lessons through this crisis and, indeed, try to diversify our economy and not take future revenue from the oil and gas industry for granted. Also, we need to be better prepared for a crisis such as this and do everything we can to attempt to forecast future unknown threats and stockpile the vital supplies necessary. In the last issue, I also spoke about the booming population in Carlsbad and the strains it was having on our small town. Today while driving to work, I couldn’t help get an eerie feeling while I was driving down quiet and empty streets. Many of the oil companies have slashed production, cut budgets, canceled contracts and are beginning to lay off workers. It is eye-opening how fast this has happened. As it relates to the 2020 census, this could not have come at a worse time. Eddy County was relying heavily on a large census result to help with additional funding from the state and possibly increased representation through potentially picking up one or two seats in the House. With the oil industry nearly shutdown, I fear that many people will move out of the city and return to their hometowns. To end on a positive note, the only thing I know for cer- tain is that Americans are strong, resilient, determined and persistent. We will defeat this virus and we will restore and rebuild our economy. When this happens, I believe there will be a significant amount of pent up demand for travel that will help oil prices to recover. Many people are becoming more and more restless and they will want to take that delayed trip or vacation. I know for a fact that after the last couple of weeks, nearly every banker in the nation is going to need a much-de- served vacation! Stay healthy! n The Advisors’ Trust Company ® Zia Trust, Inc. 505.881.3338 www.ziatrust.com 6301 Indian School Rd. NE Suite 800, Albuquerque, NM 87110 We work alongside your customers’ investment advisors ’ New Mexico bankers retain their important customers while Zia Trust serves solely as trustee ’ Zia Trust provides a corporate trustee solution to ensure protection and continuation of the family business ’ Accessible to all regions of New Mexico with offices Santa Fe, Albuquerque, and Las Cruces ’ Currently working remotely but call today for help Facing a Family Business Succession? Zia Trust Can Help Ease the Budren