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It’s a telling sign of the economic times: Tom Stanberry, who resigned earlier this year as chairman, president and CEO of West Bancorporation Inc., will nonetheless open the general session of the Iowa Bankers Association’s IBA) annual meeting today in his role as current chairman of the association. This year’s convention theme, fittingly enough, is “Discovering a new vision: Banking in a time of change.”

Stanberry, who resigned from West Bancorporation on July 15, was one of three Greater Des Moines bank executives to abruptly leave their positions during the past few months.

On July 29, the chairman of the board of Two Rivers Bank & Trust confirmed that Darrell Hughes, president and co-founder of the 5-year-old bank, had parted ways with the company.

Then on Sept. 1, Stark Bank Group Ltd., the holding company for Clive-based First American Bank, announced that the holding company’s president, Doug Bass, “was no longer with the bank.”

Banking experts say top-level departures such as these are indicative of the stress that bank boards are feeling as some institutions struggle to return to profitability. In some instances, the changes are less related to financial issues and more to philosophical differences about the direction the company must take to move forward.

“I think there is clearly a trend for accountability,” said Ken Johnson, a bank consultant from Austin, Texas, who will give a presentation on industry trends during this week’s IBA convention. “One thing that’s taking place across the industry is that boards and regulators are realizing they have problems to deal with. … Sometimes, recognizing that current management is not up to the task is the right response.”

Until December 2007, the financial services industry had enjoyed 14 of the best years in history, with high asset quality and unprecedented financial performance, Johnson noted. “In that environment, there may have been overconfidence, and mistakes have been made,” he said.

However, Johnson laid the majority of the blame for the economic mess at the feet of the nation’s largest banks. He said mid-sized banks, those with $75 million to $200 million in assets, for the most part didn’t delve into exotic financial products and are “doing quite well.” As of June 30, 98.2 percent of Federal Deposit Insurance Corp.-insured banks of that size were considered “well-capitalized” by regulators, he noted.

Marc Ward, a shareholder with Dickinson, Mackaman, Tyler & Hagan P.C., said the lack of capital available to banks during this economic crisis has put unprecedented strain on banks’ boards of directors. The Des Moines-based law firm represents a large number of community banks in the state.

“Unlike the 1980s, capital is more difficult to find, so that’s putting additional pressure on bank boards and their officers,” he said.

Despite that, Ward said bank CEO departures have not been widespread in Iowa, and “the smaller community banks are more likely to stick with their present management.” He added that Greater Des Moines has seen more shake-ups than in most other parts of the state.

Not all of the partings have been related to financial issues, said Ward, who has practiced law for 25 years.

“There are other reasons that executives leave; maybe their strategic vision doesn’t match the board’s,” he said.

IBA President and CEO John Sorensen said the rapid pace of change in the economy and financial system has forced many institutions to adjust their strategies to some extent.

“Whenever that happens, the management team and leadership have to buy into that strategy,” he said. “It probably accelerates in a period of change and financial stress.”

Overall, bank boards must be more strategic, Johnson said.

“In many respects, the skill sets of the past are not what’s needed going forward,” he said. “To recognize that, to put in place those whose skill sets are better suited – that’s a good thing. Another trend is better planning, making sure we have a plan for how we’re going to go forward. So banks are focusing on a more formal strategic planning effort, which includes monitoring all the key performance indicators.”