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BULLeTiN
A publication for members of the North Dakota Bankers Association.
September 5, 2013
Volume 13 • Issue 11
I Support
NDBankPAC
Committed
to ACTION
NDBA • PO Box 1438, Bismarck ND 58502-1438 • Ph: 701.223.5303 • Fax: 701.258.0218 • Email: ndba@ndba.com • www.ndba.com
Greg Schwab, NDBA Chairman
Chief Financial Officer, Northland Financial
Chairman’s Corner
From the desk of ...
With the fall meeting season upon us, NDBA has been working diligently to provide a wide
range of educational and networking opportunities. I am truly looking forward to traveling
our great state of North Dakota next week and greeting so many of you during the 2013
NDBA Group Meetings.
In addition to the busy meeting schedule being put together by NDBA, the 2013 NDBankPac
campaign has officially begun. As North Dakota bankers, we all have a stake in the future viability and
competitiveness of our industry. Like it or not, that future is largely determined by the North Dakota Legislature
and the U.S. Congress. The NDBankPac is your Political Action Committee. The NDBankPac unites the voices
of bankers across North Dakota to protect your interests and those of the banking industry. NDBA does a fantastic
job educating new legislators on banking issues. However, we need to make sure that we continue to support
candidates who are willing to listen to our side of the story. By far the best way to do that is to contribute to the
NDBankPAC to ensure that we have candidates who understand the importance of successful businesses to the
economic health of our communities.
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Upcoming NDBA Events
September 2013
9-12 NDBA Group Meetings ~ Fargo, Grand Forks,
Bismarck and Minot
17-18 IRA Seminars ~ Radisson Hotel, Bismarck
19-20 IRA Seminars ~ Ramada Plaza Suites, Fargo
26-27 Ag Credit Conference ~ Radisson Hotel,
Bismarck
October 2013
1 Call Report Workshop ~ Radisson Hotel, Bismarck
2 BSA Seminar~ Ramkota Hotel, Bismarck
10 Security Management Seminar ~ Radisson Hotel,
Bismarck
11 NDBA Services Board Meeting ~ Grand Forks
11 NDBA Board Meeting ~ Grand Forks
22 NDBA Peer Group Consortium ~ North Dakota
State Capitol, Bismarck
January 2014
29-30 Sales & Customer Service Conference ~
Radisson Hotel, Bismarck
February 2014
14-15 Bank Management Conference ~ Westin
Kierland Resort, Scottsdale, AZ
BULLeTiN
A publication for members of the North Dakota Bankers Association.
122 East Main Ave., Suite 201
Bismarck, ND 58501
Phone: 701.223.5303 • Fax: 701.258.0218
EXECUTIVE COMMITTEE
FEATURES
I Support
NDBankPAC
4 NDBankPAC
13 Congrats to Secure Banking
Solutions
Chairman
Greg Schwab
Chairman-Elect
George Wald
gschwab@northlandfinancial.net
gwald@greatplainsnationalbank.com
Northland Financial
Bismarck
Great Plains National Bank
Dickinson
Treasurer
Corey Cleveland
ccleveland@frandsenbank.com
Frandsen Bank & Trust
Grand Forks
NDBA BOARD OF DIRECTORS
Lois Bednar
lois.bednar@bankforward.com
18 NDBA Ag Credit Conference
Bank Forward
Fargo
David Hanson
dhanson@asbt.com
American State Bank &
Trust Company, Williston
Rob Koppinger
robk@kirkwoodbank.com
Kirkwood Bank & Trust Co.
Bismarck
Dale Patten
dpatten@mckenziecountybank.com
McKenzie County Bank
Watford City
26 Compliance Alliance
Karl Bollingberg
kbollingberg@alerusmail.com
Alerus Financial
Grand Forks
Jason Hauff
jhauff@dhbanknd.com
Dakota Heritage Bank of ND
Hunter
Jan Odin
jodin@unisonbank.com
Unison Bank
Jamestown
Vaune Cripe
vcripe@weareamerican.com
American Bank Center
Dickinson
Craig Johnson
cjohnson@merchantsbankrugby.com
Merchants Bank
Rugby
Ron Palczewski
ron@dakotawesternbank.com
Dakota Western Bank
Bowman
Dean Steinwand
James Williams III
Citizens State Bank-Midwest
Cavalier
First State Bank of North
Dakota, Casselton
dsteinwand@csbmidwest.com
jwilliams3@fsbnd.com
Brent Zavalney
brentz@choicefinancialgroup.com
Choice Financial Group
Langdon
NDBA SERVICES, INC. BOARD OF DIRECTORS
Jolene Muscha
IN EVERY ISSUE
3
NDBA Board of Directors & Staff
4
Calendar of Events
5-9Articles
22
NDBA Education Events
24Happenings
28
Web Seminars
30
Bankers’ Classifieds
Chairperson
jolenemuscha@westriv.com
Bank of Glen Ullin
Glen Ullin
Todd Heilman
todd.heilman@westernbanks.com
Western State Bank
Devils Lake
Nancy Wegenast
nancy@fwbt.com
First Western Bank & Trust
Minot
Rick Clayburgh
Joe Herslip
Steve Rehovsky
Bank of North Dakota
Bismarck
First United Bank
Park River
joherslip@nd.gov
Darren Haugen
darrenh@starionfinancial.com
Starion Financial
Mandan
NDBA Staff
Ann Reich
srehovsk@fubnd.com
Gary Inman
ginman@bellbanks.com
Bell State Bank & Trust
Fargo
Dorothy Lick
President and CEO
SVP of Strategic Partnerships
SVP of Education
Marilyn Foss
Julie Dolbec
Kathy Mulske
General Counsel
Communications & Marketing
Director
Administrative Assistant
Jackie Bauer
jackie@ndba.com
Business and Database
Coordinator
3
Choice Financial Group
Langdon
dorothy@ndba.com
marilyn@ndba.com
Extraordinary Leadership for
North Dakota Banks
Greg Goodman
gregg@choicefinancialgroup.com
Gate City Bank
Fargo
ann@ndba.com
rick@ndba.com
MISSION STATEMENT
Al Erickson
alerickson@gatecitybank.com
julie@ndba.com
kathy@ndba.com
COMMITTED to ACTION
The 2013 NDBankPAC Campaign has kicked off.
By collecting personal contributions from individual
bankers, the NDBA BankPAC Committee distributes
PAC funds to state and federal legislative candidates
who support banking and business principles. No
matter how large or small, your contribution, when
added to contributions of your fellow North Dakota
bankers, supports the collective interests of North
Dakota’s banking industry.
NDBankPAC is a statewide, non-partisan Political
Rick Clayburgh
President & CEO
Action Committee (PAC) organized by the North
North Dakota Bankers Association
Dakota Bankers Association to benefit the banking
industry through political contributions to state and federal candidates. NDBA
has long enjoyed considerable success in the legislative arena because of its
ability and willingness to support candidates who, in turn, support the banking
industry’s legislative agenda. NDBankPAC supports those candidates who
promote not only what is in the best interests of banks, but in the best interest
of a strong and viable economy.
I Support
NDBankPAC
More than ever, North Dakota bankers and NDBA need to have a strong
political action effort to ensure we are well positioned for the battles ahead.
The BankPAC Committee is asking each NDBA banker to make a personal
contribution to NDBankPAC. Adding your voice to those of the hundreds of
bankers who have already made a personal commitment to the PAC will make
the voice of the banking industry in North Dakota even more powerful.
Do You Have Your Sticker Yet?
I Support
NDBankPAC
The 2013 NDBankPAC campaign has begun! The North Dakota
Bankers Association thanks you for your continued support of the
NDBankPAC efforts.
Each year at NDBA events, NDBankPAC contributors receive special
recognition by the placement of a BankPAC sticker on their nametags.
This sticker indicates that the bearer has made an individual
contribution to the NDBankPAC during the past year. More
importantly, the sticker represents the banker’s fundamental commitment to the banking
industry as a whole and to ensuring that North Dakota maintains a positive environment for
banking.
The contribution levels are listed below. For special recognition, Diamond and Double
Diamond contributors will receive a silver pin in the shape of a diamond on their nametags.
Don’t miss your opportunity to support this great industry!
Contribution
Levels
•
•
•
•
Up to $99
$100 to $299
$300 to $499
$500 & Up
Silver
Gold
Diamond
Double Diamond
4
I Support
NDBankPAC
Fed Appeals Interchange Ruling
The Federal Reserve will appeal a federal circuit court’s ruling overturning its debit interchange rule. The Fed also asked
the court to allow the current rule to remain in place pending the appeal and said that it did not intend to issue an interim rule
reducing the interchange fee cap. Representatives of the retail industry indicated that they also would support maintaining
the current rule pending appeal.
Banks Earn $42.2B in 2nd Quarter
FDIC-insured banks and savings institutions earned $42.2 billion in the second quarter, 22.6 percent more than the
industry’s $34.4 billion earnings a year ago, according to the FDIC. The average return on assets – a standard measure of
bank profitability – rose to 1.17 percent, up from 0.99 percent a year ago but trailing its average between 2000 and 2006.
Profitability rose as year-on-year noninterest income growth of 11.1 percent outstripped a 1.7 percent fall in interest income.
The banking industry has had 16 consecutive quarters of profits increasing year-over-year, the agency said. Over half of all
institutions reported an improvement in quarterly net income from a year ago, and those reporting first-quarter net losses
fell to 8.2 percent – the lowest proportion since 2006. Asset quality continued to improve as troubled loans and leases fell.
Charge-offs were $14.2 billion in the first quarter, down $6.3 billion – or 30.7 percent – from a year earlier.
The number of institutions on the problem bank list dropped from 612 to 553 – the ninth straight quarter they declined.
The Deposit Insurance Fund balance rose from $35.7 billion to $37.9 billion during the quarter, stemming primarily from
assessment revenues, officials said.
“Banks continued their strong performance with robust earnings supported by a diverse product base, lower losses and an
ongoing improvement in asset quality,” said ABA Chief Economist James Chessen. “At the same time, institutions face
challenges as they recover from a one-two punch of rising compliance costs and weaker-than-normal loan demand that
makes it difficult to grow topline revenue.”
To read more visit:
http://www2.fdic.gov/qbp/2013jun/qbp.pdf
Regulators Propose Dramatically Revised Risk Retention Rule
Federal regulators have jointly re-proposed the mortgage risk retention rule originally issued in March 2011. The new
proposal includes aligning the qualified residential mortgage, or QRM, standard with the CFPB’s qualified mortgage rule.
The agencies said that QM loans satisfy the low default risk required by the Dodd-Frank Act. The original QRM proposal
had required a loan-to-value ratio no higher than 80 percent – effectively, a 20 percent down payment – and a debt-to-income
ratio of no more than 36 percent. A QM has no LTV requirement and caps DTI at 43 percent, with some exceptions.
The amended rule would apply 5 percent risk retention requirements only for non-QM mortgages; remove the requirement
for a special premium capture cash reserve account; remove the prohibition on selling or hedging risk retention after
specified periods; allow any combination of vertical and horizontal integration of first-loss interests among market
participants that add up to 5 percent risk retention; permit exempt commercial, commercial real estate and car loans to be
blended in asset pools with non-qualified loans at a lower risk retention level; and offer a new option for collateralized loan
obligations.
The re-proposal came after a vote today by the FDIC board. Other agencies issuing the proposal were the Federal Reserve,
OCC, SEC, Federal Housing Finance Agency and HUD. The agencies seek comments by October 30, 2013.
To read the proposed rule visit:
http://www.fdic.gov/news/board/2013/2013-08-28_notice_dis_a_res.pdf
5
CFPB Revises Ability-to-Repay/QM Compliance Guide
The CFPB has issued a revised small entity compliance guide for the ability-to-repay/qualified mortgage (QM) rule. The
revisions reflect changes to the final rule issued on May 29 and July 10 and cover exemptions to ability-to-repay regulations
for certain creditors, loans, and federal programs. They modify the points and fees calculation in the loan originator rule and
the APR threshold for small creditor and balloon-payment QMs.
The revisions also clarify what counts as a QM for loans made and held by small creditors, which creditors are eligible to
issue balloon-payment QMs, how to determine QMs eligible for GSE purchase or guarantee and how to determine debt and
income under the QM’s 43 percent debt-to-income limit. The rule’s effective date remains January 10, 2014.
To read more visit:
http://files.consumerfinance.gov/f/201308_cfpb_atr-qm-implementation-guide_final.pdf
FDIC Launches New Technical Assistance Video Series
The FDIC has released the first video in a new technical assistance series. Intended for community bank managers—
particularly those involved in asset/liability management—the first video discusses types of interest rate risk, measurement
systems, the assumptions used in interest rate risk models, and risk limits and mitigation. Forthcoming videos will cover fair
lending, appraisals and evaluations, troubled debt restructurings, evaluating municipal securities and flood insurance.
To view the video visit:
www.fdic.gov/regulations/resources/director/technical/irr.html
CFPB Releases Mortgage-Rules Exam Guidance
The CFPB has issued revised examination procedures to accompany its new rules on ability-to-repay, points and fees,
servicing disclosures and personnel, dual-tracking, and appraiser credentials. The updates apply to the exam manuals for the
Truth in Lending Act and the Real Estate Settlement Procedures Act. The Bureau said that it is coordinating its procedures
with other federal banking regulators to promote a consistent regulatory experience.
To read more visit:
http://www.consumerfinance.gov/pressreleases/41199/
Majority of Americans Bank Online; Nearly One-Third Use Mobile
Just over half of American adults, and 61 percent of Internet users, use
online banking, the Pew Internet and American Life Project recently
reported. It also found that 32 percent of adults, and one-third of cell
phone users, use mobile banking. Both figures are rising rapidly. Online
banking’s penetration among adults rose 5 percentage points from 2010,
and mobile banking grew by 14 points among cell phone users since
2011. The biggest growth for both categories was adults aged 18 to 29;
two-thirds of young adults bank online.
To read more visit:
www.pewinternet.org/Reports/2013/Online-banking/Findings.aspx
6
Upcoming Anonymous OpUSA DDoS Attack
According to multiple news sources, an Anonymous-affiliated group has announced its intention to launch a second round of
cyber-attacks in support of OpUSA on September 11, said a press release from Secure Banking Solutions (SBS).
OpUSA previously targeted websites associated with the financial industry in May 2013. OpUSA is described as a cyberattack on US-based web sites and servers, with a focus on the financial industry.
Through its affiliations with different government agencies, banking associations and partnerships, SBS has been provided
information on different “known” IP addresses and website URLS that are associated with bot-nets (such as “Brobot” and
“Kamikaze/Toxin”) utilized in distributed denial of service (DDoS) attacks from recent events, as well as information on the
upcoming iteration of Anonymous’ newest OpUSA DDoS attack.
For more information, visit the SBSwebsite at:
http://www.protectmybank.com/september-anonymous-opusa-threats/
CFPB Issues Report On Supervisory Problems
The CFPB has issued a report on concerns about mortgage servicing, compliance and fair lending raised during its
supervision of banks and non-banks. The CFPB said that its supervisory activities have resulted in remediation and
restitution to more than 60,000 individuals since last October. The CFPB found that “non-banks are more likely to lack a
robust” compliance management system, while banks generally have an “adequate” system. The Bureau’s biggest concern at
banks was “a deficient system of periodic monitoring and independent compliance audits.”
To read more visit:
http://files.consumerfinance.gov/f/201308_cfpb_supervisory-highlights_august.pdf
FHA Revises Guidance on
Borrower Credit Disputes
The Federal Housing Administration has issued
guidance requiring lenders to consider potential
borrowers’ debt in collection and credit disputes
before insuring a mortgage. “Collections and
judgments may indicate a borrower’s disregard
for credit obligations and must be considered in
the creditworthiness analysis,” the FHA said in
a mortgagee letter. If a borrower has more than
$2,000 in disputed debt, the lender must perform
a “capacity analysis,” which can include paying
off the debt or entering a payment arrangement
with the creditor. In the absence of payment in
full or a payment plan, the lender must calculate
the monthly payment using 5 percent of the outstanding balance and include that payment in the borrower’s debt-to-income
ratio. The guidance, which takes effect October 15, makes exceptions for medical debt and charge-off accounts.
To read more visit:
www.aba.com/Tools/Ebulletins/Documents/FHA-13-24ml.pdf
7
Agencies Take Another Shot At Mortgage Risk Retention Rule
On August 28 federal bank regulatory agencies jointly re-proposed the mortgage risk retention rule. The new proposal
dramatically revises the rule along lines advocated by ABA, including aligning the qualified residential mortgage, or QRM,
standard with the Consumer Financial Protection Bureau’s qualified mortgage rule. This time around, the agencies conclude
QM loans satisfy the low default risk standard of the Dodd-Frank Act. If the rule had been adopted as originally proposed, a
QM would have required a loan-to-value ratio no higher than 80 percent . Under the reissued proposal a QM will not have an
LTV requirement and DTI will be capped at 43 percent, although there are some exceptions.
The new proposal includes a five percent risk retention requirement for non-QM mortgages only, removes the requirement
for a special premium capture cash reserve account; removes the prohibition on selling or hedging risk retention after
specified periods; allows any combination of vertical and horizontal integration of first-loss interests among market
participants that add up to 5 percent risk retention; allows exempt commercial, commercial real estate and car loans to be
blended in asset pools with non-qualified loans at a lower risk retention level; and offers a new option for collateralized loan
obligations.
In the proposal agencies also request comments on an alternative approach, called “QM-plus”. Under QM-plus, the QRM
exemption from risk retention will be limited to QM loans with a max 70 percent loan-to-value ratio and certain other
restrictions. “QM-plus” appears to represent a minority viewpoint and to be inconsistent with the primary proposal. ABA
opposes having the foundation of the QRM be a high down payment requirement as does a coalition of industry, consumer,
community and civil rights groups.
Comments are due by Oct. 30.
Find the details at http://www.fdic.gov/news/board/2013/2013-08-28_notice_dis_a_res.pdf
OCC Newsletter Focuses on Native American Development
The Office of the Comptroller of the Currency’s
Community Developments Investments newsletter
focuses on how banks can use federal programs to
promote economic development in Native American
communities. For example, the newsletter looks at how
to engage tribal nations, offers case studies of banks
successfully serving Native Americans, and explores
federal home loan guarantees for Native Americans.
“Banks with little or no experience doing business in
Indian Country need not shy away from viable business
opportunities just because of a lack of familiarity with
Native American tribes or communities,” said OCC
deputy comptroller for community affairs Barry Wides.
To read more visit:
http://www.occ.gov/publications/publications-by-type/other-publications-reports/cdi-newsletter/
extending-credit-indian-country-aug-2013/indian-country-ezine-table-of-contents.html
8
It’s Time to Pay
By Frank Keating, ABA President and CEO
With Congress’ willingness to examine tax and fiscal policy, we’ve got an important opportunity
to raise a key question: Why do taxpaying American consumers and businesses subsidize the
credit union industry, which pays no taxes?
Credit unions today barely reflect their humble origins and basic mission of serving people of
modest means. On June 26, 1934, President Franklin D. Roosevelt signed into law the Federal
Credit Union Act. Credit unions were based on a simple concept: Bring together a closely-knit
group of people, pool their resources and provide small loans for one another.
Frank Keating
The original focus was on individuals with limited resources who might not otherwise have access
to financial services. It gave credit unions a special and unique place in our financial system.
That’s changed. A lot.
As you know all too well, many credit unions have gone far beyond their original mission. With the freedom to seek new
markets almost without restriction and to offer a full range of banking and financial products, many aggressive credit unions
have leveraged their tax advantage to grow rapidly. In fact, credit unions are now a trillion-dollar industry, consisting of 208
credit unions with more than $1 billion in assets – each larger than 90 percent of all banks.
In North Dakota, First Community Credit Union would have paid $1.9 million in taxes during 2012, had it paid its fair
share. With $434 million in assets, it is the largest credit union in the state and bigger than 84 percent of all North Dakotaheadquartered banks.
We’re calling on Congress to eliminate credit unions’ tax exemption. We’ve prepared a number of resources to help you
share our message with lawmakers, policymakers, businesses and people in your community. These resources are available
online at www.aba.com/ItsTimeToPay.
There you will find information for contacting your members of Congress, key messages, facts and graphics, a sample
speech and PowerPoint slide deck, a sample newspaper op-ed and print ad, a sample website banner ad, and social media
tools, including sample Tweets, graphs and videos. You can also listen to our recorded webinar on how to use the many
online resources that we’ve put together for you.
ABA also has established a task force of bankers and state bankers association executives who will guide our approach with
the Farm Credit System, another tax-advantaged competitor.
In a letter to Sens. Max Baucus (D-Mont.), chairman of the Senate Finance
Committee, and Orin Hatch (R-Utah), the committee’s ranking member, I pointed
out that credit unions were never intended to be tax-exempt banks. However, that is
the reality today. “Credit unions compete head-to-head with banks in communities
across this country,” I wrote. “They serve the same markets as banks – particularly
community banks – and there is no practical limitation on who a credit union can
serve. In fact, the public does not differentiate between banks and credit unions.”
Our message is plain and simple. The time has come for Congress to abolish credit
unions’ tax exemption. I hope you’ll join us in sharing that message with your
lawmakers and stakeholders. For credit unions, it’s time to pay.
Frank Keating is president and CEO of the American Bankers Association.
He can be reached at fkeating@aba.com.
9
Understand your Lender Liability Coverage
By Keith Peters
Roughly 40 percent of bank Directors and Officers (D&O) liability policy paid claims fall under
the Lender Liability Endorsement. These claims usually name the entity; however, individuals
can be named as well. 50 percent of lender liability paid claims are brought forth by commercial
borrowers because of the complexity of commercial lending. Construction lending represents
roughly 18 percent of paid claims while consumer lending represents 14 percent of paid claims.
The importance of understanding the Lender Liability Endorsement should be a top priority.
Consider the following questions when negotiating D&O policy terms, conditions and pricing:
1.
What is the carrier's D&O definition of lender liability?
Keith Peters
2.
What defines a claim?
Regional Sales Manager
3.
How many days’ notice is required to put the carrier on notice of a claim or a potential matter that could give rise to a claim?
4.
Are the directors, officers and employees covered under the Lender Liability Endorsement for lending matters or are they covered under the policy's Executive Liability and Company Reimbursement
endorsements (Agreements A&B)?
5.
Will a paid claim under the Lender Liability Endorsement erode the limit for future claims brought forth against directors and officers that are lending or non-lending related? Separate limits are preferable over shared limits.
6.
Is the bank afforded the privilege to choose their own attorney as long as the attorney is approved by the carrier or will the carrier control defense?
7.
If the carrier recommends a settlement offer and the bank refuses the offer, can the carrier require the Insured to fund a percentage of the defense costs going forward? This is commonly referred to as “Hammer Clause” and can be found in the defense expense and settlement section of the D&O policy.
8.
Does the Lender Liability Endorsement cover claims brought forth by guarantors and third parties?
9.
Is the limit that the bank carries adequate compared to the lending liability exposure?
10.
What exclusions could come into play that could affect a lender liability claim? Knowing the exclusions under the D&O policy and Lender Liability Endorsement is just as important as knowing the
policy language.
The leading causes of action brought forth against banks, directors, officers and employees regarding lending matters are
breach of contract, fraud, breach of implied covenant of good faith and fair dealing, breach of fiduciary duty, negligence,
economic duress and misrepresentation. Common claim exposures include the following:
•
•
•
•
•
•
•
•
•
•
Wrongful refusal to honor the loan commitment
Wrongfully failing to fund a loan
Wrongfully refusing to renew a loan
Negligent processing or administering of loan
Selling borrower collateral at less than market value
Wrongful foreclosure or improper foreclosure
Wrongfully honoring alleged “side deal”
Interfering, to borrowers detriment, with borrowers day to day management or relations with third parties
Other acts or failures that constitute a breach of lenders duty of good faith
Violation of consumer lending law or regulation
If you are interested in finding out more about MBIS or the products available,
please contact Keith Peters at 952.261.8978 or keithp@mbisllc.com.
10
NDBA
Endorsed
Customized Insurance Services
for Community Banks
• Financial Institution Bond
• Directors & Officers Liability
• Cyber Liability
• Excess Deposit Bond
• Commercial Package and Umbrella
• Lender Placed Insurance
• Debit and Credit Card Fraud
Consult us about protecting your bank
Jeffrey R. Otteson
Sales Director
jeffo@mbisllc.com
608-217-5219
Keith Peters
Regional Sales Manager
keithp@mbisllc.com
952-261-8978
Proudly endorsed by NDBA
11
We provide consulting
and research services to
independent comminuty
banking organizations
with an emphasis on:
• vendor contract negotiations
and re-negotiations
• regulatory compliance
• technology strategies
• payment systems
We have more than 30
years of experience with
the challenges facing
your organization today.
Dan Fisher
Dan Fishcer
President and CEO
President and CEO
Contact us to see how we can help you.
701-293-6222
2501 13th Ave S, Suite 207
Fargo, ND 58103
www.copperrivergroup.com
12
NDBA Congratulates
Secure Banking Solutions!
Secure Banking Solutions Named to the Inc. 5000
List of Fastest Growing Companies in America
Inc. magazine ranked Secure Banking Solutions (SBS) No. 3254 on its seventh annual Inc. 500|5000, an exclusive ranking
of the nation's fastest-growing private companies. The list, released in August, represents the most comprehensive look
at the most important segment of the economy—America’s independent entrepreneurs. SBS joins LivingSocial, Edible
Arrangements, CDW and Lifelock, among other prominent brands featured on this year’s list.
“Secure Banking Solutions is proud to be included on this exclusive list of America’s fastest growing
private companies,” says Dr. Kevin Streff, managing partner. “Growth like this is not possible without
the outstanding teamwork and innovation of our employees. This is also not possible without all of the
SBS customers and partners who have put their trust in us to help them protect their valuable data. We
thank them and look forward to continuing to grow and improve into the future.”
SBS is an information security consulting firm, founded in 2004 and headquartered in Madison, SD,
that helps small- to medium-sized financial institutions protect their sensitive data. SBS has expertise
to help these institutions identify shortcomings in their technology security structure and IT regulatory
requirements, and also offers services to help correct these deficiencies.
Dr. Kevin Streff
SBS earned the endorsement of the North Dakota Bankers Association in 2007 and they have been an
excellent service provider, according to NDBA President and CEO Rick Clayburgh. “Today, SBS has
over 50% market share in North Dakota. We have enjoyed watching their success and growth,” he adds. “Most of all we
appreciate their extensive knowledge in information security and the quality care they provide to North Dakota bankers.”
Barrie Crandall, VP and internal audit manager at American State Bank and Trust Company of Williston recently provided
unsolicited comments regarding SBS to the North Dakota Bankers Association. She wrote, “Just wanted to be certain I share
my positive experience in working with SBS. Sometimes it’s quite challenging for a non-IT person to truly understand the
technical information on findings and solutions. I felt valued through the entire process, comfortable in posing questions and
excited to tackle another new project. SBS understands service and the partnership approach to it.”
“Not all the companies in the Inc. 500 | 5000 are in glamorous industries, but in their fields they are as famous as household
name companies simply by virtue of being great at what they do. They are the hidden champions of job growth and
innovation, the real muscle of the American economy,” says Inc. Editor Eric Schurenberg.
In a stagnant economic environment, median growth rate of 2013 Inc. 500|5000 companies is an
impressive 142 percent. The companies on this year’s list report having created over 520,000 jobs
in the past three years, and aggregate revenue among the honorees reached $241 billion.
Rick Oliver, North Dakota’s relationship manager can be
reached at 605.270.3321 or email him at
rick@protectmybank.com.
Rick Olivier
VP Sales
Secure Banking Solutions
Currently, SBS works with over 500 financial institutions in nearly every state in the US and has earned the endorsement of bank and community
bank trade associations in South Dakota, North Dakota, Nebraska, Minnesota, Iowa, Wisconsin, Pennsylvania, and Virginia. SBS has grown to
nearly 40 employees and has sales offices in Kansas, Pennsylvania, and Wisconsin.
13
Enterprise Risk Management The Right Solution for your Institution
NDBA
Endorsed
The hottest regulator talk in the financial industry is Enterprise Risk
Management. In fact, many institutions are searching for the right
solutions to help them manage risk on an enterprise level. The problem is many
solutions have a heavy focus in very specific areas such as lending and loan risk,
stress testing and even IT risk. These areas are all relevant risks, but do they really
measure risk of your entire institution?
The Committee of Sponsoring Organizations of the Treadway Commission (COSO)
develops internationally accepted standards for Enterprise Risk Management. COSO
defines ERM as “designed to identify potential events that may affect the entity, and
manage risk to be within its risk appetite, to provide reasonable assurance regarding
the achievement of entity objectives.” In other words it is saying identify the events
that create risk, capture the controls used by the institution to manage the risk,
measure this risk against the risk goals that have been set, and if the goal isn’t met,
then find additional controls to further mitigate risk.
Chad Knutson, CISSP, CRISC, CISA
VP Research & Development
Secure Banking Solutions
All institutions have controls in place today to manage risk and should be auditing
these controls on a regular basis. However, most institutions have not used a risk
assessment process to design their current control framework; they were just built
as time went on. ERM should fulfill this role of planning and measuring, so that the
appropriate control framework can be implemented, and come full circle with an
audit on a regular basis. ERM should create a standard process that can be used on each business process of the institution,
so management can assess and compare each areas of the institution against one another. If you had one more hour or one
more dollar to spend on managing risk, what control would you pursue? This is a question that your ERM should enable you
to answer, so you can drive real value with your process. ERM would be a true planning and measuring activity with a mile
wide assessment, leaving the actual control implementation up to each department or responsible person to execute, instead
of assessing a mile deep and only an inch wide.
When searching for the right solution to help your community bank navigate its Enterprise Risk issues, keep these items in
mind. ERM does not need to be a mammoth process, it can be a quick and easy assessment that provides clear understanding
of risk and drives decisions within your institution.
Secure Banking Solutions has developed an Enterprise Risk Management process designed to meet the needs of Community
Banks and accomplish precisely the objectives discussed above. TRAC ERM is a quick and easy process, which provides
clear understanding of risk, and drives decisions within the institution.
Request a demo at:
www.protectmybank.com, or email us at sales@protectmybank.com
14
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15
NDBA
Endorsed
Proposed IRA Changes
by Dennis Zuehlke, Compliance Manager, Ascensus
In the weeks since the Obama Administration released its 2014 Fiscal Year Budget
Proposal, much attention has been paid to the proposed cap of $3 million on IRAs and
employer plans, and the reduced tax incentives for higher-income taxpayers in order to
raise $9 billion of additional revenue over the next 10 years.
These proposals, if enacted, could have a dramatic impact on IRAs and employer plans,
similar to the downturn in IRA activity that resulted from the Tax Reform Act of 1986,
which placed limits on IRA deductibility for certain individuals covered by employer
plans. Almost unnoticed in the Obama budget proposal are a number of other provisions
that are targeted to small business and middle class taxpayers that would have a more
immediate impact on IRA programs within all banking organizations.
One proposal would create an automatic IRA option for individuals not covered by an
employer plan. More than half of the American workforce currently lacks access to
employer-based retirement plans, and while most are eligible to make IRA contributions,
few take the initiative to establish and contribute to an IRA.
Dennis Zuehlke
To increase participation, the Administration’s proposal would require employers in business for at least two years that have
10 or more employees to offer an automatic IRA option. Employers sponsoring a qualified retirement plan, SEP, or SIMPLE
IRA plan would not be required to offer an automatic IRA option. Under the Administration’s proposal, regular contributions
would be made to an IRA on a payroll-deduction basis. The employer’s role would be to facilitate employee contributions
using its existing payroll-deduction system, but no employer contributions would be required.
Employers offering automatic IRAs would provide employees with a standard notice and election form informing them
of this option. Employees could then elect to participate or opt out. Employees who do not provide a written participation
election would be automatically enrolled and have three percent of their compensation deposited into an IRA.
The employer could designate a single IRA trustee or custodian to hold all employee contributions, or if preferred, could
allow each employee to select the IRA trustee or custodian.
Another Administration proposal would eliminate required minimum distributions (RMDs) if the aggregate value of an
individual’s IRA and employer plan accumulations does not exceed $75,000 on a measurement date. The RMD requirements
would phase in ratably for individuals with aggregate retirement benefits between $75,000 and $85,000. The initial
measurement date would be the beginning of the calendar year in which the individual reaches age 70½ or, if earlier, in
which the individual dies.
Even though Roth IRAs are not subject to RMDs while the IRA owner is living, any Roth IRA balances would be included
for purposes of determining whether the individual’s aggregate value of IRAs and employer plans exceeds the $75,000
threshold. However, any benefits under defined benefit pension plans that have already begun to be paid in life annuity form
would be excluded.
The Administration also has proposed to expand the options that are available to a nonspouse beneficiary under an employer
plan or IRA for moving inherited plan or IRA assets to an inherited IRA by allowing 60-day rollovers of such assets. Under
current law, a nonspouse beneficiary can only move assets from an employer-sponsored retirement plan to an inherited
IRA by means of a direct rollover, or from an IRA to an inherited IRA by means of a trustee-to-trustee transfer. If the
nonspouse beneficiary receives the assets from the employer plan or IRA, the assets cannot be rolled over to an inherited
IRA, and represent taxable income to the beneficiary. The current regulations often result in costly tax consequences to IRA
beneficiaries who are not familiar with the rules and the steps necessary to move the IRA assets to an inherited IRA.
16
Another proposal would require greater electronic filing of information returns. The IRS provides filers with different
methods to file information returns, including filing paper returns or filing electronically. To encourage greater electronic
filing of information returns, the Administration has proposed expanded regulatory authority to allow a reduction in the
250-return electronic filing threshold. Under the current rules, IRA trustees and custodians that file fewer than 250 Forms
1099-R or 5498 are allowed to file on paper.
Any of these proposals, if enacted, would have an immediate impact on IRA programs. The President, however, has
proposed most of these initiatives in prior budget proposals and they have not become law. In addition, the House and
Senate have passed their own budget proposals, which are markedly different from each other and the President’s proposal.
Recently, however, variations of some of the President’s proposals have been introduced in the House and Senate.
Rep. Richard Neal (D-MA) has again introduced legislation in the House to create an automatic IRA option. He also has
reintroduced the Retirement Plan Simplification and Enhancement Act of 2013 (H.R. 2117) that would, among other things,
eliminate RMDs for those over age 70½ with aggregate IRA and employer plan balances of less than $100,000, and allow
nonspouse beneficiary rollovers to inherited IRAs. A companion bill (S. 952) has been introduced in the Senate, but no
action has been taken on any of these bills. Only time will tell if any of these proposals become law.
Dennis Zuehlke is the compliance manager for Ascensus in Middleton, Wisconsin. Mr. Zuehlke provides clients with
technical support on tax-advantaged accounts (including IRAs, health savings accounts, simplified employee pension plans,
and education savings accounts), information reporting, and tax withholding issues. He is a
frequent national speaker on compliance-related issues and retirement savings trends within the
financial services industry. Mr. Zuehlke attended Marquette University and graduated from the
University of Wisconsin.
IRA Seminars • Fall 2013
IRA Essentials
September 17 - Ramada Bismarck Hotel, Bismarck
September 19 - Ramada Plaza Suites, Fargo
IRA Essentials is the perfect seminar for those who are just
starting out in the retirement service industry or for those who
need an IRA refresher. Attendees will learn the requirements
for establishing an IRA, contributing to an IRA and distributing
from an IRA.
Advanced IRAs
September 18 - Ramada Bismarck Hotel, Bismarck
September 20 - Ramada Plaza Suites, Fargo
Through hands-on training and discussions, this informative
seminar will focus on various IRA distribution topics in addition to RMDs,
such as taxation, early distributions, roth IRA distributions, and handling
IRA assets after an IRA owner dies.
These IRA Seminars will be delivered by Ascensus instructors who are
recognized as some of the leading retirement plan experts in the industry.
For more information, please call NDBA’s SVP of Education Dorothy Lick at 701.223.5303
or go to www.ndba.com
17
Register
NOW!
2013 NDBA Ag Credit Conference
September 26-27 • Radisson Hotel • Bismarck ND
Introducing 2013 Speaker Line-up!
John Blanchfield
Jim Hauge
Denny Everson
Tracy Kennedy
Dr. Barry Flinchbaugh
Elaine Kub
Dan Gahler
Brent Gloy
James Olson
Kevin Pifer
For details and registration materials go to www.ndba.com
18
2013 Bank Security Management Seminar
October 10, 2013 • Radisson Hotel • Bismarck ND
A one-day continuing education Security Seminar for anyone with
responsibilities in bank security, risk management, bank operations or
administration and fraud prevention.
Program Highlights:
• Developments in Bank Security: What’s New? What’s Next?
• Security Risks with Social Networking and Social Media
• Security Officer’s Diagnostic: BPA and Beyond
• More on Fraud Prevention: Check, ACH, Card and More
To register please see registration form included in this issue of the Bulletin or go to www.ndba.com
Smart Credit StartS with You
This October, join the thousands of volunteer bankers participating in the classroom and via social
media in the national Get Smart About Credit campaign. Our 2013 program will focus on three critical
areas: Paying for College, Protecting Your Identity and Knowing Your Credit Score. Consider taking
advantage of this opportunity to raise your bank’s profile in the community while bringing the lessons
of sound money management to young people.
Get Smart About Credit Day is October 17, 2013—don’t delay.
Register at aba.com/GetSmart or call 1-800-BANKERS.
19
2013 Bank Secrecy Act/
Anti-Money Laundering Seminar
October 2 • Best Western Ramkota Hotel • Bismarck
About the Program
Today’s bank regulatory environment has never been more challenging. This includes
the biggest overhaul of BSA reporting and enforcement in the 43 years of the Bank
Secrecy Act.
As evidenced by the largest BSA/AML enforcement penalties in U.S. history, BSA
compliance continues to be integral to the success of every bank. From BSA reporting
to pending standards in customer due diligence to enhanced exam expectations, the
constancy of change continues to reinforce the need for continuing BSA/AML
education.
This program considers recent developments and the emergence of new risks
(products, person and places), including new and proposed requirements and the
impact on your banks’ program. This full-day working seminar explores in detail the
nuances of managing risks associated with BSA/AML compliance and helps bank
professionals satisfy mandatory training requirements and benefit from networking
and shared knowledge opportunities.
To register go to www.ndba.com
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20
NDBA
Endorsed
21
North Dakota Bankers Association
Education Events
“Extraordinary leadership for North Dakota banks” is the mission of the North Dakota
Bankers Association. Following this mission, NDBA takes great pride in offering topnotch educational opportunities for members. Browse through the education opportunities
and see what best suits you and your bank.
For more information regarding these educational opportunities, please go to
www.ndba.com or contact Dorothy Lick, SVP of Education, of the North Dakota Bankers
Association, at 701.223.5303.
NDBA Group Meetings
September 9-12, 2013 ~ Grand Forks,
Fargo, Bismarck and Minot Who Should Attend:
September 17-18 ~ Radison Hotel,
Bismarck
September 19-20 ~ Ramada Plaza Suites,
Fargo
September 26-27, 2013 ~ Radisson Hotel,
Bismarck Anyone needing to learn the basic rules that
govern Roth and Traditional IRAs or just need an
updated, general refresher on IRA rules.
Call Report Workshop
Who Should Attend:
Call report preparers, loan accounting staff, call
report reviewers and auditors
Sales & Service Conference
January 29-30, 2014 ~ Radisson Hotel,
Bismarck Who Should Attend:
Ag Credit Conference
Who Should Attend:
All NDBA Members!
October 1, 2013 ~ Radisson Hotel,
Bismarck IRA Seminars
Sales managers, lenders, human resource
professionals, marketing team members, and
anyone who wants to contribute to the bank’s sales
culture.
2013 Bank Secrecy Act
Seminar
October 2, 2013 ~ Ramkota Hotel,
Bismarck This seminar is appropriate for anyone responsible
for the bank’s BSA/AML program, especially
designated officers and staff, risk managers,
compliance/operations/administration executives,
legal counsel and auditors.
Bank Management
Conference
February 14-15, 2014 ~ Westin Kierland,
Scottsdale, AZ
Presidents, CEOs, senior management staff,
lenders, marketing team members and sales
managers.
22
This conference is tailored so both entry-level
lenders and experienced ag loan officers will gain
valuable information.
2013
Bank
Security
Ag
Credit
Conference
Management Seminar
Who Should Attend:
Who Should Attend:
Who Should Attend:
September 27-28~ Holiday Inn, Fargo
October 10, 2013 ~Radisson Hotel,
Bismarck Who Should Attend:
Anyone with responsibilities in bank security, risk
management, bank operations or administration,
legal counsel and fraud prevention.
NDBA/SDBA Annual
Convention
June 8-10~ Ramada Plaza Suites, Fargo
Who Should Attend:
Presidents, CEOs, senior management staff,
lenders, marketing team members and sales
managers.
GSBC Congratulates 2013 North Dakota Graduates
The Graduate School of Banking at Colorado (GSBC) is pleased
to announce the graduation of five bankers from North Dakota as
part of the class of 2013.
GSBC is America’s Premier Community Banking School
which prepares bank-industry professionals to take on senior
management roles within their organizations. Each student has
been recognized by his or her bank CEO, president and supervisor
as a rising star within their organization. During the 25-month
program, which meets two weeks each July for three consecutive
years, students are required to complete six intersession research
projects, on-campus coursework, exams and a bank management
simulation.
In addition to academic coursework, students enjoyed networking
with others in their region, as well as exploring Boulder
throughout their two-week visit.
GSBC will host its 64th Annual School Session July 13-25, 2014
on the University of Colorado campus in Boulder, Colorado.
For further information about the School, please visit
www.GSBColorado.org or call 800-272-5138.
The graduates are pictured L to R: Steven Swartz
(First State Bank-Grand Forks), Lee Weisbeck (Starion
Financial-Mandan), Jason Bolluyt (First International
Bank & Trust-Fargo), TJ Rooney (Security First BankMandan) and Richard Beall Jr. (The Peoples State
Bank of Velva-Minot).
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23
BANK
Fargo: Brian
American
Insurance Center
announced
Brittany Getz
as an account
technician. Getz
is a graduate
of Minot State
Brittany Getz
University with a
major in business management.
Haugen has
been promoted
to vice president/
virtual bank
manager at Bell
State Bank &
Trust. Originally
Brian Haugen
from Moorhead,
Haugen earned
a bachelor’s degree in business
management from Concordia College
and has been in the banking field for
7 years. He joined Bell State Bank
& Trust in 2006 and has previously
served in several retail capacities at
multiple locations, most recently as
retail systems coordinator.
Bismarck:
Fargo: Tom
Bismarck: U.S. Bank contributed
Fargo: Eric
Happenings
Bismarck:
Starion Financial
announced that
Cary Otterness,
mortgage banking
officer, has moved
to the downtown
Bismarck location
Cary Otterness
after spending
several months
at the Mandan location. Otterness
has more than 25 years of experience
in sales, management and customer
service. He graduated from Bismarck
State College with as associate’s
degree in business management.
$3 million to the North Dakota
Housing Incentive Fund, which
supports affordable housing in the
state. The contribution for the North
Dakota Housing Incentive Fund was
presented at the U.S. Bank building
in downtown Bismarck by U.S. Bank
Regional President Tim Hennessy to
North Dakota Gov. Jack Dalrymple,
North Dakota Attorney General
Wayne Stenehjem, Acting Executive
Director of the North Dakota Housing
Finance Agency Jolene Kline, and
affordable housing partners.
Geraghty has
been hired as
vice president/
Bell Investments
financial
advisor at Bell
Investments, a
division of Bell
Tom Geraghty
State Bank &
Trust. Originally from Moorhead,
Geraghty earned a bachelor’s degree
from Moorhead State University. He
has nearly 40 years of experience
in the customer service industry;
spending the past 6 years at an
investment firm.
Halvorson, Bell
State Bank &
Trust, senior vice
president/business
banking officer,
has been awarded
a diploma from the
Graduate School
Eric Halvorson
of Banking at the
University of Wisconsin-Madison.
Halvorson received his diploma on
August 23 at commencement exercises
during the 68th annual session of
the prestigious Graduate School of
Banking.
24
Grand Forks:
Alerus Financial
announced the
addition of Galen
G. Vetter to
their board of
directors. Vetter
has four decades
Galen G. Vetter
of experience in
the accounting/
finance industry.
He spent the greater portion of his
career with McGladrey, the fifth
largest U.S. public accounting firm.
During his 25-year tenure with
McGladrey, Vetter held leadership
positions including Partner In-Charge
of the Upper Midwest Region and
National Executive Partner. In 2008,
Vetter joined Franklin Templeton
Investments (FTI) as Senior Vice
President and Global Chief Financial
Officer. In retirement, Vetter also
serves on the Board of Directors
for Land O’Lakes, a Fortune 500,
farmer owned food and agricultural
cooperative. He is currently a member
of the National Association of
Corporate Directors and previously
served on the American Institute
of Certified Public Accountants
Executive Council/Technology and the
Investment Company Institute Audit
and Treasury Committee.
Vetter obtained his CPA designation in
1973 (currently inactive), and received
a bachelor’s of science degree from the
University of Northern Iowa.
Langdon:
Todd Borchardt
was recently
promoted
to president
at Choice
Financial’s
Langdon location.
Todd Borchardt
Borchardt joined
Choice in May
2013 as vice president-business
banking officer. He brings more than
eight years banking experience to
Choice Financial. Borchardt graduated
with a bachelor’s degree in financial
management from UND. He also
holds his crop insurance license.
Borchardt’s community involvement
prior to relocating to Langdon
included serving on the board of
directors for the Grand forks Optimist
Club and the Junior Achievement
program, as well as membership
in the Greater Grand Forks Young
Professional Network and the Grand
Forks Chamber Agri-Business
Committee.
LaMoure:
First State Bank
of North Dakota
(FSBND) has
appointed Greg
Stemen as the
new president of
its LaMoure bank.
Stemen has been
Greg Stemen
president of the
Marion location since 2010. Stemen
brings a well-rounded background in
organizational management to serving
customers in the LaMoure area.
Prior to joining FSBND, Stemen
was a lending officer at another bank
and worked for a medical facility in
Bismarck. Before that he was the head
men’s basketball coach at Southwest
Minnesota State University, Marshall,
MN., for eight years.
Lisbon: First
State Bank of
North Dakota
(FSBND) has
appointed Derek
Jungels as the
new president of
its Lisbon bank.
Derek Jungels
Jungels joined
FSBND in 2005
as president in Marion. He has been
serving as president of the LaMoure
branch since 2006. Jungels brings
more than 13 years of experience in
rural banking and lending to serving
FSBND customers in the Lisbon area.
Before becoming president of the
LaMoure bank, he was with another
bank and was promoted from vice
president to branch manager after two
years. He is also a 2004 graduate of
the School of Dakota Banking.
Mandan:
Chantil
Guthmiller has
been promoted to
business banking
representative
after being a teller
with Starion
Chantil Guthmiller
Financial for
more than three
years. She will remain at the bank’s
Mandan location. Guthmiller earned
her bachelor of science in accounting
from the University of Mary.
25
Associate
Happenings
Bank Financial Services Group
(BFS) announced the addition of
David Payne as chief operations
officer and the appointment of Daniel
Barbaree as President of BFS.
“David Payne brings a wealth
of experience, knowledge, and
relationships through his many years
in the banking industry, and previous
position at Meyer Chatfield,.” stated
Daniel Barbaree, president of BFS.
“David helps solidify our commitment
to superior bank consulting and
customer service to all of our current
and future bank clients.”
With the appointment of Daniel
Barbaree (previously CFO and
COO of BFS) as president, BFS
continues the implementation of
its business succession planning.
William Borchert, Chairman,
Founder, and CEO of BFS stated,
“We are committed to helping banks
and bankers for the long-term, so
we continue to build our business
succession plan nationally and in each
of our Regional Offices across the
USA.” He added, “Banks and bankers
know that BFS will be here to serve
their needs now and for as long as the
bank is serving its customers too.”
What to Expect from the CFPB for the rest of 2013
By: Scott Daugherty, Director of Compliance, Compliance Alliance
July 21 marked the third year since the passage of the Dodd- Frank Act (“DFA”). U.S. Treasury Secretary Jacob Lew
was quoted as saying, “the ‘core elements’ of DFA will be enacted by year-end” of 2013. Fed Chairman Ben Bernake
also stated that several rules will be released by the agencies in the coming months. The banking industry is not
the only industry affected by the reforms required by the DFA; this legislation has an impact on every aspect of our
financial systems.
For those of us who are tracking the progress of implementation of DFA and the rule making requirements, there is a
general consensus that more than half of the rules required by DFA are yet to be finalized. Bernake commented on the
Scott Daugherty
delays in the rulemaking and implementation by pointing out that the provisions are complex and require a joint effort
in rule writing, since five agencies must simultaneously “coordinate, cooperate and agree on language" for many of these rules.
Although the regulatory agencies are making predictions about the finalization of many rules required by DFA, none are specifically
stating which rules they predict to be final by year-end. Banks should count on the fact that the regulations that govern the banking
industry, more specifically in the area of consumer regulations, will likely be finalized, if not by the end of the year, then by mid-2014.
What should banks do in this environment of continuing uncertainty while we all wait for issuance of final rules and clarification
of previously issued rules? The best advice, simply put, is to ensure that all the bank’s strategic plans include a well thought out and
documented risk management process.
That being said, what about the CFPB? The agency issued their mid-year agenda in July. The agenda includes:
Rules that are in the “Pre-rule” Stage:
t Regulation C (HMDA) – expand the scope of information relating to mortgage applications and loans that must be compiled, maintained and reported under HMDA.
t Regulation P (Annual Privacy Notices) – the CFPB received comments suggesting the elimination of the requirement to provide annual notices when there has been no change in underlying policies.
t Payday Loans and Deposit Advance Products – the CFPB issued a whitepaper on findings from a review of these types of products, noting a number of consumer protection concerns, including consumers' "sustained use" of these short-term,
high-cost products.
t Fair Debt Collection Practices (FDCPA) – government agencies receive more consumer complaints about debt collectors than any other industry, yet until the formation of the CFPB, no agency was given authority to implement regulations to govern debt collectors.
Rules in the Proposed Stage:
t Amendments to TILA and FIRREA Concerning Appraisals – this is an interagency process; the agencies are working to develop a supplemental proposal concerning possible additional exemptions from the revisions to the appraisal rule
for certain refinance transactions, smaller-dollar loans and manufactured housing transactions.
t Requirements for pre-paid cards (Regulation E) – in the comment review stage from the advance notice of rule-making to determine what rules may be appropriate.
t Supervision of Non-bank financial industries.
t Amendments to the 2013 Mortgage Rules – the CFPB is working on proposing further amendments and clarifications to the January 2013 mortgage rules. These issuances may include, further proposed clarifications to the mortgage servicing
and the ability-to-repay and qualified mortgage standards final rules, as well as amendments to final rules issued in January 2013 amending Regulations B, X, and Z. The final servicing rules for ATR/QM were issued July 2013.
t Consumer Financial Civil Penalty Fund – implements what kinds of payments to victims are appropriate by establishing procedures for allocating funds for payments to victims and for consumer education and financial literacy programs.
The final rule is expected February 2014.
Rules that are in the Finalization Process:
t Recodification of the regulations implementing Federal consumer financial laws. The rules will be complete by
December 2013.
t Integrated Mortgage Disclosures Under RESPA (Reg X) and TIL (Reg Z), including the revised definition of a finance charge. The final rule is expected by October 2013.
t The CFPB’s supervision over non-bank entities. The final rule was issued in July 2013, but had no effect on banks.
t Expedited Funds Availability (Reg CC) – The Fed proposed amendments to Regulation CC in March 2011 to facilitate
the banking industry's transition to electronic interbank check collection and return. The Board's proposal includes some provisions that are subject to the CFPB's joint rulemaking authority, which includes the period for funds availability and revising model form disclosures. The final rule is expected by December 2013.
26
Rules that are in the Finalization Process cont...:
t Disclosures for Remittance Transfer Transactions (Regulation E) – The final rule was issued, with an effective date of October 28, 2013.
t Definition of Larger Participants of the Student Loan Servicing Market - the proposed rule would identify a
market for student loan servicing and define "larger participants" that would be subject to the Bureau's supervisory authority. The final rule is expected in September 2013.
It is promising to be a very busy fourth quarter. Stay tuned to Compliance Alliance for information on the regulatory issuances.
We have made it through the first three years since the signing of DFA, and there are more regulations still winding their way
through
the bureaucracy.
We 7:48
will AM
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Upcoming Web Seminars...
Sept. 10
Your FCRA Exam, Your Agency & the CFPB How to Prepare
Sept. 19
Walking Through the Maze of an ACH Audit & Risk Assessment
Sept. 11
Cyber Security 2013
Protecting Your Institutuion &
Customer Assets
Sept. 25 &
Oct. 2
Accounting for ALLL & OREO
Sept. 26
FRB Regulatory Report Preparation
Sept. 13
Mobile Banking
Oct. 3
Writing Loan Narratives
Sept. 16
Global Cash Flow’s Missing Link
Contingent Liability Analysis
Oct. 4
Health Care Reform for Banks
Sept. 17
The Total of Points & Fees
Sept. 18
Workplace Bullies & Dirsruptive
Behavior
Make your bank’s opportunity
a “done deal” ... fast!
We help you compete with the “big guys!”
• Participation loans (commercial, agricultural,
construction, operating lines and term loans)
• Bank stock & ownership loans
• Bank building financing
• Business & personal loans for bankers
• Multi-family long-term permanent financing
Call us for a quick response, competitive
rates and flexible underwriting.
Call Tom Ishaug at 701.866.4676 or
Roger Monson at 701.789.1290
3944
bellbanks.com | Member FDIC
3100 13th Ave. S. | Fargo, ND
28
SAVE the
DATE
Contribute • Collaborate • Connect
2013 NDBA Peer Group Consortium
October 22 • North Dakota State Capitol
Call Report:
A Review & Update
October 1, 2013 • Radisson Hotel • Bismarck
The Call Report Preparation seminar will help preparers and reviewers understand the step-by-step preparation process and eliminate
errors. The seminar will begin with an overview of proposed revisions to the 2013 Call Report followed by a detailed review of most
balance sheet schedules, concluding with a review of the five income statement schedules. Schedules included are the FFIEC 041 forms.
Although the class will cover a review of each schedule of the Call Report, the focus will be on the more complex Call Report issues,
including loan schedules, interest rate risk items, extensions of credit to insiders, intangible assets, other real estate, overdraft bounce
protection and risk based capital. All loan schedules, including loan income and averages, are required to be reported using RC-C
definitions of loan types. Loans must be reported using a classification priority that considers several factors: borrower, purpose, and
collateral; reporting should not be based on purpose or class coding. Learn the priority of reporting loans. A classification cheat sheet is
provided along with a worksheet of classification examples.
For more information please go to www.ndba.com
29
Credit
Officer
Human Resource
Manager
Western State Bank is a 111-year-old progressive financial
institution with total assets of over $600 million and growing.
We are looking for an experienced Credit Officer to join our
growing Credit Department located in West Fargo. The position
includes a variety of responsibilities including, but not limited
to, reviewing credit information for complex commercial
loans, responding to banker or client inquires, ensuring
credit files are current, preparing management reports, and
coordinating activity in support of the credit approval process.
Minimum of three years to five years of experience with strong
communication skills, time management, attention to detail, and
multi-tasking abilities required. This is a full-time position with
benefits (health, life, dental, vision, disability, 401k, and ESOP).
First Western Bank & Trust has an immediate opening for
a full time Human Resource Manager. This individual
will manage the human resource department and
administration of its policies, procedures and programs to
support the Bank's work environment. Bachelor's degree
in Human Resources or related field, human resource
experience preferred, must be able to effectively and
professionally communicate with management, staff and
applicant.
To apply, please submit application found at:
Candidates should submit a cover letter and resume to:
We offer a competitive wage and an excellent benefit
package.
First Western Bank & Trust
www.westernbanks.com
with cover letter and resume to:
Human Resource Department
PO Box 1099
Minot ND 58702
or email it to: dee@fwbt.com
Western State Bank
Attn: Credit Department Manger
PO Box 617
West Fargo, ND 58078
mark.jensen@westernbanks.com
Western State Bank is an Equal Opportunity Employer and Affirmative Action
Employer. Member FDIC
Equal Employment Opportunity Employer
Executive Director
RE Loan Originator/
Loan Processor
Executive Director for two related community development nonprofits in Bismarck-Mandan, North Dakota, sought to replace a
30-year retiring director. Lewis and Clark Regional Development
Council is a nonprofit, quasi-governmental, EDA-designated district
whose primary programs are commercial lending RLFs, some
available regionally, others statewide. The Council also manages a
small cities CDBG grant program.
First State Bank of North Dakota, your locally owned
Independent Community Bank, currently has an opening
for a RE Loan Originator/Loan Processor in their
Loan Processing Center in Casselton. This position is
responsible for originating, underwriting, closing and
processing residential mortgage loans.
CommunityWorks North Dakota is a statewide, NeighborWorks
America chartered nonprofit. Primary programs are mortgage and
housing development revolving loan funds. CommunityWorks also
occasionally partners as a developer in construction and ownership
of new housing developments, including LIHTC projects.
Qualified candidates should have 1-3 years mortgage
lending experience. We offer competitive compensation
and full benefit package.
The executive director will be responsible to two boards of directors
and manage a combined staff of about 10. Preferred are an MBA or
MPA with at least 10 years senior management experience. Send
cover letter and resume by October 7, 2013 to: CWND/LCRDC, 200
1st Ave. NW, Mandan, ND 58554 or nguy@communityworksnd.org.
EOE.
Submit resume and cover letter to:
First State Bank of North Dakota
Attention: Human Resources
PO Box 460, Casselton, ND 58012
boberlander@fsbnd.com
Visit www.lewisandclarkrdc.org or
www.communityworksnd.org
for a complete job description and
more information on the organizations.
Affirmative Action Employer/Equal Opportunity Employer
30
Ag/Business
Banker
Agricultural Loan Officer
& Insurance Agent
American Federal, an employee owned, privately-held $455 million
financial institution, seeks candidates for an Ag/Business Banker in our
Greater Grand Forks market. We are a successful sales organization.
Our Ag/Business Bankers offer financial advice and business expertise
to help their clients identify the best solutions to reach their goals. We
operate as a professional partnership with entrepreneurial-minded
employees who influence decisions and have an opportunity to earn
incentive compensation based on performance.
This sales-driven, results-focused Ag/Business Banker is responsible for
developing a profitable business practice while ensuring credit quality
and portfolio growth. Underwrites, administers and extends ag/business
credits, and sells and refers a full range of banking, insurance and
investment services.
Requires proven financial services sales results with lending and
collections experience and an undergraduate degree in business,
agriculture or a related field, or equivalent experience.
Send introductory letter, current resume, names and phone numbers of 3
business references, and current and expected compensation to:
Attn: M. Seim
American Federal Bank
PO Box 2946, Fargo, ND 58108-2946
Fax: 701.461.5971
Email: mseim@americanfederal.net
Citizens State Bank of Lankin is seeking a qualified
candidate for an Agricultural Loan Officer & Insurance
Agent
We are an independent, family-owned and operated
community bank and we've been providing friendly and
professional banking and insurance services to individuals,
farms and businesses in our region since 1905.
We have offices in Park River, Edinburg, Lankin and
Edmore, ND. There is enormous opportunity for rapid
advancement within our bank for a motivated individual.
Preference will be given to individuals who have prior
lending and /or insurance experience.
Interested individuals should contact
Citizens State Bank of Lankin
Greg Bauer
701.284.7272
Equal Opportunity Employer
Member FDIC
AAEOE
Commercial Loan
Processor
Chief Information Officer/
Chief Operations Officer
Under the direction of the President/CEO, the CIO/COO is responsible
for the overall administration of the bank’s technology, accounting and
operations teams, which includes planning, organizing, and controlling
the day-to-day operational activities and integration of business
processes, technology solutions, data, and the customer experience to
drive competitive capability, innovation and bank-wide efficiencies.
The CIO/COO provides vision and insight into the development of
the business strategy for the operations and technology of the bank;
demonstrates leadership and expertise for technology initiatives and
assists in attaining established bank operational goals; and leads the
efforts to integrate efficient processes and procedures that stem from
good use of our technology, report writing, accounting and operational
processes.
Lewis and Clark Regional Development Council is seeking
a full-time Commercial Loan Processor. Responsibilities
include complete loan document preparation, filing all security
documents, preparing/delivering deposits, post-closing loan
administration, preparing reports, fund balancing, tracking/
processing loan documentation, and assisting management.
Skills include 3 – 5 years experience in commercial loan
processing. SBA 504 experience preferred.
Must have strong computer skills with knowledge of MS
Office and QuickBooks, accounting/bookkeeping experience,
excellent written/verbal communication skills, and be extremely
organized and detail oriented. Benefits and competitive salary
offered. See www.lewisandclarkrdc.org for a complete job
description.
Requires a bachelor’s degree in a business, finance or IT-related
discipline and a minimum of 10 years of experience leading a bank
operations and/or information technology team, including strategic
planning, project management, and budgeting.
Send cover letter and resume by September 20th 2013 to:
This full-time position includes a comprehensive compensation and
benefits package. Submit your on-line resume to us on our Careers tab
at:
LCRDC
200 1 Ave NW, Suite 100, Mandan, ND 58554 or
bekstrom@lewisandclarkrdc.org EOE
www.starionfinancial.com
Starion Financial is an Equal Employment Opportunity Employer.
31
WE CAN’t
DrEAm
Big
ENough
Join the largest gathering of agricultural banking specialists on the planet this
November in Minneapolis. The current prosperity, prospects for the future, and
how you can win in this environment will be the focus. If you’re in agricultural
credit, you’ll be there.
Register now!
aba.com/AgConference I 1-800-BANKERS
ABA National Agricultural
Bankers Conference
November 10–13, 2013
Hyatt Regency Minneapolis
Minneapolis, Minnesota
32