Community Bank Leaders Talk Top Risks

The ProSight Community Bank Survey highlighted pressing risks—fraud, cyber, tariffs. Building on those findings, a recent Risk Readiness webcast featured two credit risk executives—Tom MacDonald of Maine Community Bank and Robin Ingari of American Bank—who dug deeper into what addressing those risks means in practice. Here are some key takeaways: 

Tariff uncertainty delays business investment 

Tariffs ranked as a top-three risk for 28% of survey respondents. MacDonald said the timing of the survey—it was fielded in late spring and early summer—was a factor. “The tariff-related risk was relatively new when the survey came out, and it was top of mind for everyone.” He noted that uncertainty can cause borrowers to put off equipment purchases or expansions. Ingari added that higher costs ripple through quickly. “I don’t know that people realize how much we get from Canada,” she said, pointing to steep tariffs on softwood used in framing. “I’m in Texas—we build a lot—and it’s affecting costs across the board.” 

Cyber threats keep accelerating 

Nearly two-thirds of survey respondents said cyber threats will worsen in the year ahead, and the panelists agreed. “I think we’re going to continue to see it increase,” said MacDonald, pointing to AI and other unknowns in the external environment. Ingari said the reason bankers are so attuned to the risk is because they’re living it themselves. “Every one of us is getting a text from a toll agency or an email that says, ‘Oh, you have to do this right this second … click here,’” she said. “Very few people aren’t getting hit daily or weekly.” 

Customer scams dominate fraud losses 

Fraud is hitting customers hard. Romance and elder scams were cited by 36% of survey participants as the fastest-growing fraud type. Ingari shared that some clients still resist tools like positive pay—even after being regularly targeted. MacDonald noted the stigma: “It can be very hard for a customer to admit to themselves that they’re a victim of a romance scam, and that’s a challenge for the retail staff.” Both said more industry cooperation is essential; MacDonald highlighted ProSight’s forthcoming Fraud Alert Network as one promising avenue. 

AI adoption requires clear use cases 

Four out of five bankers agree AI will be essential long term, but the webcast speakers made clear that execution is uneven. MacDonald pointed to appraisals as a promising starting point: “There is so much information in there. I think that’s a clearly defined use of AI that could be helpful.” Ingari noted that some institutions have invested heavily without seeing the expected payoff. “We all know it’s there. It’s just, how do we use it? And how do we have enough data to make it give us good information?” she said. She also warned of vendor dependence, data-sharing concerns, and the third-party risk that comes with outsourcing. 

Stay the course amid shifting rules 

The webcast closed with a reminder that regulatory and political tides can turn quickly. Ingari cautioned: “Keep all your information. Do what you’ve been doing. Because it may swing completely in a different direction in two years or four years.” 

Want to learn more about ProSight’s Fraud Alert Network? Click here.