SDBA eNews

January 17, 2019

SDBA Invites Emerging Bank Leaders to Take Part in State Legislative Day

Photo of State CapitolThe SDBA is inviting bankers, including emerging bank leaders, to find their seat in the process at this year's State Legislative Day on Feb. 13 at the Ramkota Hotel & Conference Center in Pierre.  This year's event offers emerging leader-specific sessions.

An emerging leader networking reception will be held Tuesday, Feb. 12, (the night prior to the State Legislative Day) at 5:30 to 7 p.m. at Branding Iron Bistro in Pierre. Three emerging leader-specific sessions will be held Wednesday, Feb. 13, at the Ramkota on legislative basics, an emerging leader panel discussion and a speed networking session. 

Emerging bank leaders are then invited to take part in the rest of the State Legislative Day, which will include the SDBA Legislative Committee meeting, a luncheon, featured speaker Naomi Camper, a visit with legislators at the State Capitol, and an evening reception with state legislators and constitutional officers. Gov. Kristi Noem has also been invited to speak with bankers. 

See the full agenda and register to attend

Drew Haack and Matt Schlechter Promoted at SD Division of Banking

Drew Haack and Matt Schlechter have promoted to supervisory roles at the South Dakota Division of Banking. Haack has been promoted to chief bank examiner, and Schlechter has been promoted to chief trust examiner.

Both will continue to participate on examinations but will be assisting more with administrative functions, said Deputy Director of Banking Mike Dummer. Haack joined the Division in 2006, and Schlechter joined the Division in 2011. Both work out of the Division of Banking's Sioux Falls office. 

USDA to Temporarily Reopen FSA Offices During Shutdown

With the government shutdown now approaching its fourth week, the Farm Service Agency will temporarily reopen several of its offices to provide assistance to farmers and ranchers, the Department of Agriculture announced yesterday. These offices will be open on Jan. 17, 22 and 28 during normal business hours.

The USDA noted that at almost half of FSA locations, staff will be available to help farmers and ranchers with existing farm loans and tax documents. Staff will also be available at certain offices to provide specific services including processing payments made on or before Dec. 31, 2018; continuing expiring financing statements; and opening mail to identify priority items.

A number of services will not be available during this time, including new loans and loan guarantees and disaster assistance programs. The USDA also announced that it will extend the application deadline for the Market Facilitation Program for a period of time equal to the number of business days the FSA was closed during the shutdown. Read more. For more information, contact ABA's Ed Elfmann

ABA Spotlights How Banks Support Customers Through Shutdown

With thousands of federal employees and government contractors affected by the longest shutdown in U.S. history, America’s banks are working to support these individuals and their families that may be experiencing financial hardship. A new webpage highlights these efforts, which include offering interest-free payroll advances or other low-interest loans; waiving fees; making loan modifications; and extending payment deadlines depending on individual circumstances. 

ABA continues to call on Congress and the Trump administration to work quickly to reopen the government, noting that a prolonged shutdown could have significant effects on consumers and the economy. Learn how banks are helping. ABA encourages banks to share how they are helping and be added to the list by emailing [email protected]

Rep. Waters Outlines Priorities for Financial Services Committee

In her first major speech as chairman of the House Financial Services Committee, Rep. Maxine Waters (D-Calif.) yesterday highlighted the priority issues she will focus on in her new role. Among other things, Waters noted that the evolution of fintech, housing reform and encouraging diversity and inclusion in financial services would be points of focus during the 116th Congress.

With regard to the future of the Fannie Mae and Freddie Mac, Waters outlined seven principles for reform. These included: maintaining access to 30-year fixed-rate mortgages; ensuring sufficient private capital is in place to protect taxpayers; providing stability and liquidity; ensuring a smooth transition to a new housing finance system; requiring transparency and standardization to ensure a level playing field; maintaining access to mortgages for qualified borrowers; and ensuring access to affordable rental housing.

Waters also flagged several issues that could see bipartisan cooperation, including the long-term reauthorization and reform of the National Flood Insurance Program, terrorism risk insurance and the reauthorization of the Export-Import Bank. “I am very hopeful that we will be able to get some good bipartisan work done in the committee,” she added. Read the speech

Keep Policy Moving in the Right Direction at Washington Summit

We’ve fought hard for banking policy changes that allow banks to better serve their customers and communities, but the work isn’t done.

Join the ABA on April 1-3 in Washington, D.C., for the 2019 ABA Washington Summit to keep policy moving in the right direction. Hear from regulators and lawmakers in the new Congress and visit Capitol Hill to share your experiences. In conjunction with the Summit, ABA also hosts:

The ABA is offering $750 scholarships for the Emerging Leaders Forum to two SDBA emerging leaders to help cover travel expenses. If you are an emerging leader interested in applying for a scholarship, contact the SDBA's Halley Lee or call 605.224.1653. 

While there is no registration fee to attend the Washington Summit or Forums, those planning to attend need to register. The SDBA offers a $500 stipend to help with the travel expenses of one person from each SDBA member bank to attend the Summit. The SDBA will issues stipends following the event. Learn more and register

Registration Open for ABA's 2019 Financial Education Programs

Banker registration is now open for the ABA Foundation’s 2019 financial education programs. This year’s initiative includes Teach Children to Save, as well as Get Smart About Credit and Safe Banking for Seniors. Launched in 1997, Teach Children to Save Day is observed every April--this year on April 12--but bankers can hold lessons throughout the year. Last year, about 12,500 bankers taught more than 15,000 lessons nationwide.

Registered bankers will receive real-time customer support, program and communication materials, and their participation will be featured on the ABA website. Bankers can also opt-in to be part of FinEdLink, a free web tool that connects community groups and schools with local bank volunteers available to make a presentation on Teach Children to Save, Get Smart About Credit or Safe Banking for Seniors.

“Early introduction and continued exposure to financial education can yield lifelong benefits,” said Erica Opstad, SVP for community relations at U.S. Bank and chairman of the ABA Foundation board of directors. “The resources provided by the Foundation allow bankers to implement these programs and lessons in the local community with ease. It’s a great way to reinforce these invaluable life skills, and I know my colleagues take pride in doing so.”

A new article on the ABA Banking Journal website delves further into how banks are using FinEdLink to share their financial expertise with local community organizations.

Free Webinar: Taking Advantage of Reciprocal Deposit Legislation to Grow High-Value Relationships

Thanks to last year's 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 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.

Learn more and register for a webinar.

Compliance Alliance

Question of the Week

Question: We have a customer that is leaving for boot camp for the Air Force. Am I correct in stating that boot camp is not active duty?

Answer: Boot camp is included in active duty. "Military Service" is defined under SCRA as period of active duty status. For members of the regular Armed Forces, active duty begins the day they leave civilian life; for them, active duty is not synonymous with deployment. For a member of a reserve component, the protections the SCRA offers begin when a member of the Reserves or National Guard receives mobilization orders. It is initiated upon receipt of mobilization orders in order to give the soldier time to put his or her affairs in order.

There may be several active duty periods during a member of the Reserves or National Guard’s career, including the initial active duty for training ("boot camp") and subsequent call-ups for service, whether or not the Servicemember volunteered for active duty is immaterial. Finally, military service also includes any period during which a Servicemember is absent from duty because of sickness, wounds, leave or other lawful causes.

Our Lending to Servicemembers Policy has great information regarding both the SCRA and MLA:

The term “active duty” means full-time duty in the active military service of the United States. Such term includes full-time training duty, annual training duty, and attendance, while in the active military service, at a school designated as a service school by law or by the Secretary of the military department concerned. 10 USC 101(d)(1)

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.