In This Issue

• Deadline to Order SDBA's 2016 Scenes of SD Calendar Is  Sept. 1
• First PREMIER Bank Named to 'Best Bank to Work For' List
• SNL Article Spotlights Farm Credit System Abuses
• FCS Lender Reports Loan Fraud Losses of Nearly $50 Million
• Agencies Issue 2014 CRA Small-Biz, Small-Farm Loan Data
• FEAI Ads Tell Congress: 'Untie the Hands of Bankers'

Deadline To Order SDBA's 2016 Scenes of SD Calendar Is Sept. 1

The deadline to order the SDBA's 2016 Scenes of South Dakota Calendar is Tuesday, Sept. 1. The calendar will feature photos of South Dakota submitted by bankers, their family members and customers.

The Scenes of South Dakota calendar is exclusive to SDBA member banks and associate members.The calendar is a great opportunity to thank your customers for their business and promote your bank or business. A bank, branch or business' logo and name can be printed on each calendar. Place your order today. All orders will be shipped Nov. 1, 2015.

Amateur photographers can send the SDBA photos of farms, barns, agricultural activities, historical South Dakota locations, county fairs, carnivals, parades or festivals, fall colors, winter snowfalls, spring flowers, or summer fun. The deadline to submit photos is Sept. 1. Learn more.

First PREMIER Bank Named to 'Best Bank to Work For' List

South Dakota-based First PREMIER Bank has been named one of the 2015 Best Banks To Work For by American Banker and Best Companies Group. The special recognition follows hundreds of surveys completed by employees and a review of the organization’s practices. Only 50 banks across the country are selected best to work for.

“We’re excited and honored to receive this recognition from American Banker. To all of our employees, I want to say thank you. We’re fortunate to work with such a great group of people,” says Dave Rozenboom, president, First PREMIER Bank. “We’ve worked hard over the years to build the kind of company and culture that people want to join. This award validates those efforts. At PREMIER, we believe that happy employees translate into satisfied customers.”  

Banks that entered the contest must provide workplace policies, practices and demographics to American Banker and Best Companies Group which analyzes the information and conducts online surveys. Employees are asked nearly 80 multiple-choice questions as well as two open-ended and seven demographic questions.

First PREMIER is the only bank in South Dakota to receive the “best bank to work for” designation. Only six banks in the Upper Midwest were recognized by American Banker, including Bell State Bank & Trust, an SDBA associate member. View the list.

SNL Article Spotlights Farm Credit System Abuses

An article on Tuesday in SNL Financial shone a spotlight on the Farm Credit System’s “dangerous and abused advantages” and the efforts of recently hired ABA SVP Steve Apodaca to highlight them publicly.

“The FCS is both unfairly competing with private lenders and expanding its activities well beyond farm country, potentially putting taxpayers at risk,” reporter Kevin Dobbs wrote in summarizing Apodaca’s point of view. As the FCS grows, “it is venturing outside of its expertise and if it runs into trouble it would put taxpayers on the hook to bail it out,” Dobbs continued.

The author also highlighted Apodaca’s personal experience as a banker attempting to compete with the FCS. “Apodaca said an FCS lender had no interest in a start-up farmer in need of a loan, which is the kind of farmer the system is supposed to support,” Dobbs said. “But after a bank financed that farmer's operation and that farmer proved both successful and reliable in terms of paying down debt, the FCS then stepped in with a lower rate and stole that farmer's business away from the bank. Apodaca said it is an example of the FCS' widespread practice of cherry-picking pristine credits and leaving banks to grapple with the more challenging loans.” Read the article.

FCS Lender Reports Loan Fraud Losses of Nearly $50 Million

 
A “massive loan fraud” at a southwestern Farm Credit System association is estimated to be nearly $50 million, Bert Ely reported yesterday in ABA’s Farm Credit Watch e-bulletin. Farm Credit Services Southwest, Tempe, Ariz., sent a letter to borrowers and stockholders announcing “cumulative losses resulting from [certain] identifiable loans totaled $49.7 million.”

As a result of the losses, FCS Southwest is being forced to merge with Farm Credit West. Ely noted that FCS Southwest nearly a year ago removed financial statements from its website and that the Farm Credit Administration, FCSSW’s regulator, has removed from its website the association’s call reports dating back to 2009. “How many other FCS associations face this type of problem?” Ely asked. “Is this the tip of an iceberg?” Read Farm Credit Watch.

Agencies Issue 2014 CRA Small-Biz, Small-Farm Loan Data

The federal banking agencies on Tuesday issued aggregate data on 2014 small-business, small-farm and community development loans that institutions reported under the Community Reinvestment Act. The data, which commercial banks and savings institutions with about $1.2 billion or more in assets are required to report and others can report voluntarily, show that such institutions made about 5.6 million small-business loans, totaling $214 billion, and about 173,000 farm loans, totaling more than $12.9 billion.

The number of small-business loans rose 12 percent from 2013, and the dollar amount of small business loan originations rose by 2 percent. The number of small-farm loans rose by about 1 percent and the dollar amount increased by 5 percent.

Just more than 93 percent of the small-business loans and 78 percent of the small-farm loans were for amounts under $100,000, according to the analysis. It also said nearly 45 percent of the small-business loans and nearly 60 percent of the small-farm loans were extended to firms with revenues of $1 million or less. Read more.

FEAI Ads Tell Congress: 'Untie the Hands of Bankers'

To help build momentum for regulatory relief this fall with key members of Congress, the Financial Education and Advocacy Initiative (FEAI) is running radio and print ads this week in Indiana, Montana, North Dakota and Virginia. FEAI is the 501(c)(4) nonprofit created by ABA to help strengthen the banking industry’s voice in Washington and funded by donations from bankers across the country.

“Is the American dream still alive in Montana?” asks the ad that will run in the Billings Gazette. The ad tells the story of a newly-minted graduate in Bozeman who wanted a $16,000 loan to buy a mobile home for his young family. “The banker wanted to make that loan, but arbitrary regulations from Washington, D.C., tied his hands. Tell Congress to untie the hands of America’s hometown bankers.”

The ads tell real-life stories of how excessive regulatory burdens on banks have prevented ordinary Americans from accessing financial products and services for which they would otherwise qualify. View and listen to the ads. Learn more about FEAI.