Registration Open for 2019 National Beginning Ag Bankers School

Registration is now open for the SDBA's 2019 National School for Beginning Ag Bankers set for June 24-27 at Black Hills State University in Spearfish. The purpose of the school is to prepare ag bankers to make better loan decisions.

The school is designed to train in all facets of agricultural lending with emphasis on credit analysis, credit scoring, risk rating, problem loans and group case study. Attendees will receive personalized instruction and continual peer interaction fostered through a limited class size, case study and group exercises.

Ag bankers with zero to three years of experience should attend this school. A packet of information will be sent to each student. Included will be a pre-session assignment that needs to be completed and returned prior to the school.

The 2019 National School for Beginning Ag Bankers will be limited to the first 72 students, so register early. Learn more and register.

Bankers Encouraged to Use ABA's Election Action Center

Election Day is less than two weeks away, and every seat in the House of Representatives, a third of the Senate seats, and numerous state and local offices are up for election. ABA has put together an Election Action Center to help bankers get informed and vote. ABA’s Election Action Center is a nonpartisan voter education website with resources for voter registration, early and absentee voting, polling locations, plus information on candidates. Visit ABA's Election Action Center. Additional resources to help spread the word about the importance of voting--including sample tweets and emails--can be found at aba.com/GOTV.

FDIC to Rescind Duplicative Disclosure Requirement

The FDIC today issued a proposal that would rescind Part 350 from the Code of Federal Regulations, removing an annual disclosure requirement that was duplicated by data publicly available on the FDIC’s website. The 1987 requirement called for FDIC-insured state non-member banks and foreign branches, but not state thrifts, to prepare annual disclosures of Call Report and other data.

The FDIC noted that other federal regulators have removed similar requirements. “With advancements in information technology since Part 350 was adopted . . . information about the financial condition of individual insured depository institutions is now reliably and directly offered to the public through the FDIC’s and the Federal Financial Institutions Examination Council’s websites,” the agency said. Comments are due by Nov. 24. Read the proposal.

ABA Chairman Urges Bankers to Engage Next Generation in Advocacy

In his first speech as ABA chairman on Tuesday, Jeff Syperski emphasized the importance of engaging the industry’s 2 million employees in advocacy. Szyperski particularly urged bankers to develop their emerging leaders to be passionate and vocal advocates.

“We need those individuals to be the building blocks of our industry going forward,” he said. “We need to develop our emerging leaders, we need to show them the way. Advocacy needs to be part of every banker’s job description.” Szyperski, who is chairman, president and CEO of Chesapeake Bank in Kilmarnock, Va., highlighted three easy thing CEOs can do to engage their employees, including signing up for the ABA Daily Newsbytes email, forwarding grassroots emails to all bank employees and making BankPac an “all-hands-on-deck appeal.”

He added that as banks seek to attract new talent into the industry, banks are uniquely positioned to offer young employees the chance to give back. “If you look at any survey now of younger employees, what they’re looking to do is make a difference in their world and their communities. What other industry is in the exact right position to scratch that itch for a generation of emerging leaders?” Watch a video about Szyperski.

The SDBA has embarked on an exciting effort to build and deepen the connection of the next generation of banking leaders. Learn more.

New ABA Study Finds Americans Highly Satisfied with Their Bank

The ABA on Monday unveiled new data showing that nearly 9 in 10 Americans (86 percent) say they are “very satisfied” or “satisfied” with their primary bank. Ninety-four percent rated their bank’s customer service as “good,” “very good” or “excellent,” according to the survey, conducted for ABA by Morning Consult.

The top three things consumers valued most about their banks were: little or no fees, security of account and personal information, and location. They also said that banks were far and away the most trusted guardians of their personal information; 42 percent said they trust banks the most to keep their data safe, compared to 15 percent who said they trust healthcare providers the most and 7 percent who said they trusted non-bank providers like Apple Pay, Venmo and Paypal.

“Banks continue to invest heavily in keeping data safe and providing an exceptional customer experience, and consumers are taking notice,” ABA President and CEO Rob Nichols noted. “From helping customers buy a home or start a business to making transactions safe and convenient, banks of all sizes open doors of opportunity every day.”

ABA released an accompanying infographic highlighting the survey results and will be releasing additional findings from the study next week. View the infographic.

SDBA to Hold Call Report Seminar

Annual training in call report preparation is highly recommended by bank regulators—not just for preparers of the call report, but also for reviewers. The SDBA will hold the 2018 Call Report Seminar: An Update on Nov. 7 in Sioux Falls. This seminar will help preparers and reviewers understand the preparation process and eliminate errors.

The seminar will begin with an overview of revisions in 2018 and other recent changes, followed by a review of several new accounting standard updates.

The classification priority for coding loans on RC-C will also be covered. Loans are normally a bank’s largest asset category, and the reporting rules for RCC are critical because they affect all loan schedules in the call report. Loans are reported based on borrower, purpose, or collateral, but there are specific rules that dictate when to use each of the classification factors.
The seminar will end with a discussion of commonly cited errors made in call report preparation.

Participants will receive a 300-plus page manual, which will include materials covered during the seminar as well as additional information on other call report schedules. Learn more and register.

Learn How to Get Ahead of Your HMDA Data

With the reporting of the expanded HMDA data less than six months away, banks must devote serious attention to understanding and explaining their data. The dramatic increase in the publicly available HMDA data will significantly change how your bank’s mortgage lending is analyzed and will impact your regulatory, litigation and reputational risk exposure.

In preparation for these changes, the ABA will host a free webinar on Wednesday, Oct. 31, at 11 a.m. CDT to update members on regulatory developments and introduce an ABA program to assist members with their HMDA analysis. The webinar will feature experts on compliance and fair lending that will:

Provide an overview on how regulators are likely to use data mining and statistical modeling to transform fair lending analyses and heighten fair lending scrutiny.
Explore how new HMDA data will provide opportunities for private litigants and advocacy/community groups.
Describe ABA’s efforts to get an early look at the 2018 market data.
Introduce ABA’s program to enable banks to understand their HMDA-related information in advance of examiners, identify early “red flags,” and facilitate peer-to-peer comparison of the new HMDA data.

Eide Bailly to Hold Annual Bankers Seminar

Eide Bailly will provide bankers with industry insights and valuable information at its Bankers Seminar on Wednesday, Nov. 7, in Sioux Falls at the Hilton Garden Inn Downtown.

Becoming comfortable with change while staying true to your values will be the key to success for many banks in the future. Embracing a culture of innovation will help community banks come up with new ways to think about banking that will benefit your bank, your community and your stakeholders. During the free seminar, Eide Bailly will discuss opportunities and best practices for financial institutions in 2018 and beyond.

Topics will include the keynote address "Innovation is More Than the Next Big Idea," an Innovation Panel and breakout sessions on a variety of topics. Lunch will be provide. View the agenda. Register to attend.

Question of the Week

Question: I pulled a flood certification in which there is one parcel of land but multiple, nonresidential buildings on that piece of land. The provider did not include a schedule of the buildings. All the buildings are in a flood zone, and the provider sent an aerial view of all the buildings in the flood zone, which is attached to the determination. There will only be one policy and not a separate policy per building. Is an aerial view sufficient, or do I need a schedule in order to proceed?

Answer: In this situation you are going to either need a separate form per building or a schedule that separately lists all the buildings and their determinations. It is not sufficient to only have an aerial view.

MULTIPLE BUILDINGS: If the loan collateral includes more than one building, a schedule for the additional buildings/mobile homes indicating the determination for each may be attached. Otherwise, a separate form must be completed for each building or mobile home.

Not a member? Learn more about membership with Compliance Alliance by attending one of our live demos:

Compliance rules and regulations change quickly. For timely compliance updates, subscribe to Compliance Alliance’s email newsletters.

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.