SDBA eNews

September 27, 2018

Two SDBA Member Banks Recognized in ABA Marketing Video Contest

Two SDBA member banks, Cornerstone Bank and First Interstate Bank, were recognized in the ABA's third annual Bank Marketing Video Contest. 

Cornerstone Bank had the top video in the $500 million to $1 billion category for not being afraid to poke fun at typical industry imagery and doing its #HAPPYDANCE#. First Interstate Bank received runner up in the over $5 billion category for its "We’re First Interstate Bank” video.

“Video marketing has proven to be a powerful way to boost conversations and build relationships with consumers,” said ABA Chief Member Engagement Officer Jim Edrington. “Bank marketers excel in this discipline, and this year’s winners continued the trend of raising the bar even higher.”

Winners were announced at the ABA Bank Marketing Conference held in Baltimore. Watch the winning videos.

Fed's Powell Expresses Support for CRA Modernization Effort

The Federal Reserve is “very much interested” in moving ahead with the interagency effort to update Community Reinvestment Act regulations, Fed Chairman Jerome Powell said at a press conference yesterday. The formal effort kicked off in August with an advance notice of proposed rulemaking (ANPR) from the OCC.

“At the Fed we are deeply committed to the mission of CRA, which is for banks to provide credit and other banking services in the communities they serve,” Powell said, adding that the OCC ANPR addresses many of the concerns the Fed has about current CRA rules. “We’re hopeful that over time there will be a joint proposed rulemaking,” he added. “It’s a process, and we’re very much interested in continuing to push it forward.”

ABA is encouraging all banks, regardless of their federal regulator, to respond to the OCC’s ANPR, for which comments are due by Nov. 19. The OCC has committed to sharing all feedback with the other banking agencies. The ANPR addresses several CRA-related issues, encouraging more lending in areas that need it most, clarifying the types of activities eligible for CRA consideration, updating assessment area definitions to accommodate digital lending channels, measuring bank CRA performance with a metric-based framework, examining for CRA compliance consistently and reducing CRA burden. Learn more at

Fed Hikes Rates for Third Time in 2018

As expected by analysts, the Federal Open Market Committee announced another quarter-point rate hike at the conclusion of its meeting yesterday, marking the third rate increase of 2018. The committee unanimously voted to raise the federal funds rate 25 basis points to a range of 2 to 2.25 percent, citing continuing economic growth--including a strengthening labor market, strong job gains, low unemployment and growth in both household spending and business fixed investment--and inflation running near the 2 percent target.

Notably, the FOMC removed from its statement language stating the committee’s expectation that monetary policy would “remain accommodative.” FOMC members said they anticipate one more rate hike this year, three in 2019 and one in 2020. Read the FOMC statement

ABA Launches Election Action Center

Election Day is 40 days away--and with every seat in the House of Representatives, a third of the Senate seats, and numerous state and local offices up for election, voting this year is especially critical.

ABA has put together an Election Action Center to help get bankers informed and voting. The Election Action Center is a non-partisan voter education website with resources for voter registration, early and absentee voting, polling locations, plus information on candidates. Additional resources for spreading the word about the importance of voting--including sample tweets and emails--can be found at Visit ABA’s Election Action Center. For more information, contact ABA Grassroots

Land O'Lakes, Amazon Execs to Keynote ABA Ag Conference

Beth Ford, president and CEO of Land O’Lakes--the nation’s third-largest agricultural cooperative--will be a keynote speaker at ABA’s National Agricultural Bankers Conference, Nov. 11-14 in Omaha, Neb. Also keynoting the conference will be Cameron Holbrook, head of agtech at Amazon Web Services; former USDA Chief Economist Joseph Glauber; and Kansas State University biosecurity professor Stephen Higgs.

The conference will also feature more than 35 concurrent sessions covering commodity outlooks, succession planning on the farm, regulator perspectives on ag lending and how technology is changing ag and ag finance. The deadline to reserve hotel rooms at the discounted rate is Oct. 12. Register now

OCC Flags Supervision Priorities for 2019

The OCC on Tuesday released its bank supervision operating plan for fiscal year 2019, identifying what each of the agency’s supervisory operating units will focus on for the new federal fiscal year starting on Oct. 1. Overall, as in the prior year, the OCC will develop supervisory strategies for cybersecurity and operational resiliency; commercial and retail credit underwriting and concentration risk management; and Bank Secrecy Act compliance management and change management due to new regulations.

The agency added a new risk focus: monitoring internal controls and end-to-end processes for how banks deliver products and services, as well as how they implement of new products and strategic partnerships. The 2019 plan does not include a focus from the prior year on business model sustainability and strategy changes. Read the plan

SDSU Extension to Hold Ag Lenders Conference

Agriculture lenders are invited to attend an Ag Lenders Conference hosted by SDSU Extension in Watertown on Oct. 17 and Sioux Falls on Oct. 19.

Topics include best use tax analysis, farm stress survey, weather/climate outlook, macroeconomic outlook, crop market outlook and value-at-risk marketing tool, FSA update and crop budgets, and livestock market outlook. 

The conference will be held at the SDSU Extension Watertown Regional Center at 1910 W. Kemp Ave. and SDSU Extension Sioux Falls Regional Center at 2001 E. Eighth St. Register by Oct. 8, and the fee is $75 per person. After Oct. 8, the fee is $100 per person. Learn more and register.

Take Advantage of Reciprocal Deposit Legislation to Grow High-Value Relationships

Thanks to the recently signed regulatory relief bill, most reciprocal deposits are no longer brokered. This comes as banks face intense and increasing competition for deposits.

Join Promontory Interfinancial Network--the nation’s leading provider and inventor of reciprocal deposit placement services--for a free webinar that outlines key provisions  of the new law and the impact ICS®, or Insured Cash Sweep®, and CDARS® can have on banks’ balance sheets. The webinar will also cover how banks can use ICS and CDARS to capitalize on the opportunities at hand; presenters will discuss cost-effective  ways to use the services to attract high-value relationships (even as deposit competition  intensifies) and to lock-in more low-cost funding (even as interest rates continue to rise).

This webinar is a “must” for decision-makers at banks of all sizes, especially for community banks that utilize collateralized deposits and/or listing services. Choose a webinar date and time that works for you. Learn more and register.

Deadline Extended to Place 2019 South Dakota Bank Directory Advertising

The South Dakota Bankers Association is currently offering advertising in its 2019 South Dakota Bank Directory, which is an indispensable reference tool for financial executives and those conducting business with financial decision makers in South Dakota.

A limited number of full-color ads are available on the directory's tabbed divider pages. Full-page and half-page black-and-white ads are also available in the front section of the directory. The deadline to place an ad has been extended to Friday, Oct. 5. Ads are due Oct. 15. More information and the advertising form

Compliance Alliance


Question of the Week

Question: The credit reports we use are through the company Factual Data. This company retrieves the information from Equifax and on our tri-merge requests, retrieves from all three consumer reporting agencies. We have been putting on the denial letters the address and phone numbers of the consumer reporting agencies for the person to contact. Factual Data did a review of our procedures and is saying that it should be their name and address on the denial letters since they furnished the report. I want to verify that changing to their name, address and number only would be correct.

Answer: To be most conservative, we would agree and recommend including Factual Data on the Adverse Action Notice, including their name, address and phone number.

There is currently a debate in the industry, including with examiners, regarding whether tri-merge companies are considered a credit reporting agency. If they are, it would be recommended that they are disclosed on the Adverse Action Notice.

15 USC 1681a(p) 

"The term “consumer reporting agency that compiles and maintains files on consumers on a nationwide basis” means a consumer reporting agency that regularly engages in the practice of assembling or evaluating, and maintaining, for the purpose of furnishing consumer reports to third parties bearing on a consumer’s credit worthiness, credit standing, or credit capacity, each of the following regarding consumers residing nationwide: (1) Public record information. (2) Credit account information from persons who furnish that information regularly and in the ordinary course of business."

"Multiple credit scores. 28 In certain cases, a person may receive multiple credit scores from consumer reporting agencies. If the person only uses one credit score in making the decision, that particular score and related information for that specific credit score must be disclosed. If the person uses multiple credit scores in making the credit decision, only one of the scores is required to be disclosed; however, the FCRA does not prohibit creditors from disclosing multiple credit scores to the consumer."

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Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call 888.353.3933 or email.

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Contact Alisa Bousa, SDBA, at 800.726.7322 or via email.