SDBA eNews

May 2, 2019

Three Elected to SDBA Board of Directors

The SDBA recently held elections for three of the nine seats on its Board of Directors. Elected to serve on the SDBA Board of Directors were:

  • Pete Mehlhaff, President/CEO, Great Plains Bank, Aberdeen
  • David D. Nelson, Senior Vice President/Branch Manager, First Fidelity Bank, Platte
  • Kristina Schaefer, General Counsel/Director of Risk Management, Fishback Financial Corporation, Sioux Falls

This is Mehlhaff’s first term on the SDBA Board of Directors and Nelson and Schaefer’s second terms. Mehlhaff is representing banks in Group IV; Nelson is representing banks in Group III; and Schaefer is representing banks in Group I. They started their three-year terms on May 1.

Read more about Mehlhaff, Nelson and Schaefer. 

Learn What Separates Exceptional Leaders from Average Leaders at Annual Convention

Technology has sent the world into warp speed and changed many things. Yet, true leadership is based on “ancient” principles. Professional speaker and author V.J. Smith will share the time-tested and core ideas of what separates exceptional leaders from average leaders at the 2019 SDBA/NDBA Annual Convention.

The theme of this year's conference, which will be held June 2-4 at the Sioux Falls Convention Center & Sheraton Sioux Falls, is "FOCUS FORWARD." Smith will present his session "Dancing to the Oldies" on Monday, June 3.

A professional speaker for more than 20 years, Smith has been a two-time finalist in Toastmasters International's "World's Championship of Public Speaking". He has spent 25 years of his working life in various management roles at both a Fortune 100 Company and a mid-sized university. Get a sneak peak of Smith.

Haven't yet registered to attend the 2019 SDBA/NDBA Annual Convention? Register by the early bird deadline of May 8 and save money. See the full convention agenda and register to attend

SDBA Encourages Banks to Join Safe Banking for Seniors Campaign

The SDBA is encouraging banks to join the ABA’s Safe Banking for Seniors campaign to help educate older Americans, their caregivers and other family members about how to identify and prevent elder financial exploitation.

“We’ve found that bankers are often the first line of defense against elder financial fraud and abuse. As many older customers visit bank branches, bankers are educating and advising their customers on ways to protect their assets and identity,” said SDBA President Curt Everson.

Bankers who register with the campaign receive free turn-key materials, lesson plans, guides, handouts as well as traditional and social media outreach tools to connect with their communities about: identifying and avoiding scams, preventing identity theft, choosing a financial caregiver and acting as a responsible financial caregiver.

Banks can register for free to receive the resources at Also, be sure to opt-in to the new FinEdLink component, which enables community groups to reach out to your bank and request a banker-led Safe Banking for Seniors presentation. Contact Sam Kunjukunju​ at the ABA Foundation for more information.

OCC Pilot Program to Provide Input on Innovative Bank Products, Services

As part of its ongoing efforts to support innovation in the banking sector, the OCC on Tuesday requested public feedback on a proposed “innovation pilot program.” Under this program, OCC-supervised banks—and third parties working with these banks—may receive regulatory input early in the process of developing innovative products and services, helping to develop appropriate controls during a pilot. “The program focuses on new or unique activities where uncertainty is perceived to be a barrier to development and implementation,” the OCC said.

The proposed program is distinct from so-called regulatory sandboxes offered by other U.S. and foreign regulatory agencies, which provide safe harbors for participants from certain laws and regulations. “The program would not provide participating entities with statutory or regulatory waivers or absolve them from complying with applicable laws and regulations,” the agency said. “The program would not release entities from consumer protection requirements.”

Under the proposed terms of the program, OCC-supervised banks could request OCC participation in a pilot of up to 24 months. Tools that the OCC might use would include interpretive letters, supervisory feedback and technical assistance. The legal permissibility of the proposed activity must be determined before any live test can begin. Pilot projects must include reasonable controls and exit strategies. Comments on the OCC’s proposed program are due by June 14.

ABA, Trade Groups Urge Congress to Protect Lawful Bank Calls

ABA joined the U.S. Chamber of Commerce and several other industry trade groups on Monday in urging members of the House Energy and Commerce Committee to ensure that banks and other businesses can communicate with their customers through calls and text messages using modern communications technology. The letter was sent ahead of a subcommittee hearing this week on legislative efforts to combat illegal automated calls.

The trade groups noted that while consumers are harmed by fraudulent and scam calls, “consumers are also harmed when they do not receive time-sensitive calls and text messages from legitimate businesses,” including banks. “Fraud alerts, data breach notifications, reminders to renew prescriptions or schedule a visit to the doctor, notifications of power outages, and automobile recall notices are consumer-benefitting calls that must be placed immediately to be of value to the recipient.”

ABA has been heavily engaged in urging the FCC to issue new rules to ensure that customers can receive important communications from their banks. Read the letter. For more information, contact ABA’s Jonathan Thessin or Robin Cook.

USDA, SBA Join Forces to Help Businesses in Rural America

The U.S. Department of Agriculture (USDA) and Small Business Administration (SBA) are committed to improving program effectiveness and increasing access to capital through enhanced collaboration and coordination on areas of mutual interest in order to strategically align investments by infusing rural areas with stronger businesses and agriculture economics. Both agencies last month signed a memorandum of understanding to document and formalize ongoing coordination and collaborative efforts between USDA and the SBA relative to issues of shared concern.

Specifically, such collaboration is intended to improve investment opportunities in rural areas, identify ways to increase the benefits of the Tax Cuts and Job Act of 2017, improve innovation for rural technical assistance providers, and aid rural businesses in providing tools to export products around the world. Other goals include promoting and educating each agencies programs and services and sharing and educating lenders to amplify USDA and SBA.

"Most family farms operate as small businesses, so the collaboration of USDA and SBA makes all the sense in the world,” said U.S. Secretary of Agriculture Sonny Perdue. “Rural America and our small Main Street businesses must know that the Trump Administration aims to increase prosperity across all economic sectors. I’m grateful to be partnering with Administrator Linda McMahon and SBA to best help farmers, ranchers, foresters, and small businesses in rural communities thrive.”

View a program matrix that highlights the programs and services of both agencies. 

Entry Period Open for 2019 Community Commitment Awards

The ABA Foundation invites entries for the 2019 Community Commitment Awards, which recognize and promote the essential role banks play in their communities. The awards, open to banks of all asset sizes and charters, celebrate financial institutions that have demonstrated noteworthy corporate social responsibility.

Banks may enter in one or all of eight categories: affordable housing, community and economic development, economic inclusion, financial education, protecting older Americans, supporting military families (new for 2019), volunteerism, and the George Bailey Award (for non-CEO bank employees who demonstrate outstanding service to their bank, industry and community).

The awards will be judged by a panel of experts in each field. While the awards are open to banks of all asset classes, institutions will be judged against their peers. Entries are due by July 12.

Winners will be honored in a ceremony during ABA’s Annual Convention, Oct. 27-29 in Seattle. All entrants will be included on the ABA Foundation's interactive, searchable U.S. map that showcases banks' innovative corporate social responsibility efforts. Learn more and enter now.

CFPB Issues Fact Sheet on TRID Requirements for Assumptions

The Consumer Financial Protection Bureau yesterday issued a fact sheet to help lenders determine when the TILA-RESPA integrated disclosures—the Loan Estimate and the Closing Disclosure—are required when mortgages are assumed. The fact sheet addresses TRID requirements when a new consumer is added or substituted as an obligor on an existing closed-end credit transaction secured by real property and that is not a reverse mortgage.

The fact sheet uses a flowchart to illustrate when the Loan Estimate and Closing Disclosure are required, and it discusses the specific factors that characterize an “assumption” as defined in Regulation Z: the creditor’s express acceptance of the new consumer as a primary obligor, the creditor’s express acceptance in a written agreement and the new borrower’s use of the real property securing the mortgage as a principal dwelling. Read the fact sheet

Compliance Alliance

Question of the Week

Question: With regard to the FDIC's Part 350 Annual Disclosure Statement rescission, would it only apply to one of our charters or would it apply to the holding company and everything under it as a whole? We are two chartered banks under one holding company.

Answer: The rescission applies to all FDIC supervised banks at the federal level, so in your case, it appears that it would apply to both banks independently, regardless of whether they're both under a holding company:

...This Financial Institution Letter applies to all FDIC-supervised institutions, including community institutions....

FDIC: FIL-14-2019: Removal of the FDIC'S Part 350 Annual Disclosure Statement Requirement

Removal of the FDIC's Part 350 Annual Disclosure Statement Requirement Printable Format: FIL-14-2019 - PDF (). Summary: On March 8, 2019, the FDIC Board approved a final rule rescinding and removing Part 350 of the FDIC's regulations, which is entitled Disclosure of Financial and Other Information by FDIC Insured State Nonmember Banks. The FDIC is taking this action to simplify its regulations ...

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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.