SDBA eNews

September 23, 2020

Women in Banking Conference Going All Virtual on Thursday

Photo of women.The SDBA is going all virtual with its 2020 LEAD STRONG: Women in Banking Conference set for Thursday. In order to ensure the safety and well-being of our members, the decision was made to cancel the live portion of the conference but continue with the virtual component via Zoom. 

All registrations have automatically been converted to virtual, and those registered were emailed the links to join both the connection hour this evening and Thursday’s sessions. Sessions are also being recorded for viewing at your leisure. Those who had planned to attend live will receive their goodie boxes in the mail next week. 

If you are not registered but would like to take part, there is still time to register and receive the links. The cost is $190 per person. Register now.

Friends of Traditional Banking Endorses Candidates for 2020 Election

Leadership of the Friends of Traditional Banking (FOTB), after much deliberation, has endorsed candidates in three, key U.S. Senate races in the 2020 general election. They are Sen. Cory Gardner of Colorado, Sen. Thom Tillis of North Carolina and Sen. Joni Ernst of Iowa.

"I know that many of you and other bankers in your organization provide financial support for pro-banking candidates through our federal political action committee, SDBankPAC," said SDBA President Curt Everson. "Thank you for your generous support."

The inverse of a PAC, Friends of Traditional Banking chooses two or three key races each cycle and encourages all bankers around the country to donate what they can. This month, they announced support for the previously-listed senators. Each of these industry allies are in super-tight races, and bankers kicking in to help can put them over the top. You can learn more and donate.  

"These are amazing candidates, who really could use our help," said FOTB Chair Joyce Hunt, CFO of PBK Bank in Kentucky. "We have been able to steer hundreds of thousands of dollars to key candidates in years past, by tellers kicking in $5, bank execs kicking in a few hundred and anything in between."

On behalf of the leadership of FOTB, I respectfully encourage your support for these three candidates and hope you will encourage other bankers to do likewise," said Everson. 

ABA, Trade Groups Urge Lawmakers to Pass Standalone PPP Forgiveness Bill

With Congress deadlocked on a COVID-19 relief bill, ABA and more than 100 financial service, business and nonprofit trades last Friday urged lawmakers to pass standalone Paycheck Protection Program loan forgiveness legislation that would streamline the process for small business borrowers.

In a letter to House and Senate leaders, the groups called on lawmakers to support two recently introduced bills—S. 4117, sponsored by Sens. Kevin Cramer (R-N.D.), Bob Menendez (D-N.J.), Thom Tillis (R-N.C.) and Kyrsten Sinema (D-Ariz.), and H.R. 7777, a House companion bill sponsored by Reps. Chrissy Houlahan (D-Pa.) and Fred Upton (R-Mich.). Both bills would forgive PPP loans of less than $150,000 upon the borrower's completion of a simple, one-page forgiveness document.

"S. 4117 and H.R. 7777 ensure those businesses can focus their time, energy and resources back into their business and communities instead of allocating significant time and resources into completing complex forgiveness forms," the groups wrote, noting that PPP loans of $150,000 and less account for about 87% of total recipients but less than 28% of loan dollars. “Expediting the loan forgiveness process for many of these hard-hit businesses would save more than $7 billion and hours of paperwork.”

ABA urges bankers to contact their lawmakers to support these bills before adjourning ahead of the November elections. Bankers can log on to ABA's Secure American Opportunity grassroots platform and send a personalized message. Read the letterContact your lawmakers now.

Government Watchdog: PPP Forgiveness Complexity Creates Burden

Applications for Paycheck Protection Program loan forgiveness are more time-consuming than actually applying for the loan itself and require more lender review, according to a report Monday from the Government Accountability Office. While the GAO noted that this is in part due to requirements in the CARES Act, which created the PPP, the Small Business Administration estimates that borrowers will need three hours to fill out the standard forgiveness form.

“[L]enders are to do a good-faith review of loan forgiveness applications and make a decision about whether the loan should be forgiven,” GAO noted. “Although SBA states on its standard loan forgiveness application that it will take borrowers three hours to complete, representatives from one [trade] association heard from lenders that it could take 15 hours for some borrowers to complete. . . . Representatives from a lender association estimated it could take 50-75 hours for lenders to review a complex forgiveness application and the supporting documentation.” Read the report.

Fed Issues its Own CRA Modernization Proposal

The Federal Reserve on Monday issued an advance notice of proposed rulemaking (ANPR) on updating the agency’s three-decade-old Community Reinvestment Act regulations. The ANPR follows a separate rulemaking on CRA reform by the OCC, which was finalized earlier this year without the support of the Fed or FDIC. The Fed outlined several objectives for its own reform approach, which include:

  • More effectively meeting the needs of low-to-moderate-income communities and address disparities in credit access
  • Increasing the clarity, consistency and transparency of supervisory expectations and standards regarding where activities are assessed, which activities count and how eligible activities are assessed, while minimizing data collection burden
  • Tailoring CRA supervision based on size, business model, local market conditions, etc.
  • Updating standards to reflect changes in banking over time, including the increased use of mobile and Internet delivery channels
  • Promoting community engagement
  • Strengthening the special treatment of minority depository institutions
  • Recognizing that CRA and fair lending responsibilities are mutually reinforcing

The proposal involves a retail test, which would consist of a retail lending subtest and a retail services subtest, as well as a community development test, which would consist of a community development financing subtest and a community development services subtest. Small retail banks could elect to be evaluated under the current CRA framework or choose to be evaluated under the retail lending subtest alone. Small banks could also elect to have their retail services and community development activities evaluated. The Fed is proposing an asset threshold of $750 million or $1 billion to distinguish between small and large retail banks.

“Separating the retail test and the community development test provides greater scope to tailor the metrics to local market conditions, which often differ for retail lending and community development financing,” said Fed Governor Lael Brainard in a speech on Monday. “This approach would create clear quantitative thresholds for the level of retail lending and community development financing that is needed to achieve a ‘satisfactory’ CRA rating.”

Nichols: Fed Proposal 'Important Step' Toward CRA Modernization 

ABA President and CEO Rob Nichols called the Fed's proposal an “important step” toward CRA modernization, noting that “we appreciate the Fed’s measured, research-based approach to formulating this critically important rule.” Nichols also called on the regulatory agencies to work together to finalize the proposal.

“Joint regulatory action will prevent confusion and avoid unintended consequences for banks and the communities they serve,” he said. “This is critically important as the banking industry works to meet the needs of low-and moderate-income communities and address inequities in access to credit."

The ABA is currently reviewing the 186-page ANPR, which has a 120-day comment period. Additionally, the Fed will host an “Ask the Fed” session Wednesday, Sept. 23, at 2 p.m. CDT, for Fed-regulated banks only, to highlight key features of the ANPR and discuss the comment process. The Fed will host a "Connecting Communities" outreach event for the public Thursday, Sept. 24, at 2 p.m. CDT.

Kristina Schaefer to Serve on CFPB Community Bank Advisory Council

Photo of Kristina SchaeferThe Consumer Financial Protection Bureau last week announced the appointment of new members to its Community Bank Advisory Council (CBAC). SDBA Chair-Elect Kristina Schaefer, general counsel and chief risk officer with First Bank & Trust, Sioux Falls, was one of four newly-selected CBAC members.

Those appointed serve a two-year term and provide advice on how the CFPB’s policies and rulemakings affect community banks. Other newly-selected members are:

  • John Buhrmaster, president and CEO of First National Bank of Scotia, Scotia, N.Y.
  • Ronette Hauser-Jones, mortgage division president at Great Plains Bank, Oklahoma City
  • Brad Williamson, president and CEO of Islanders Bank, Friday Harbor, Wash.

Read more.

Advertising Available in 2021 South Dakota Bank Directory

The SDBA is currently selling advertising in the 2021 South Dakota Bank Directory. Full-page color ads on the tabbed divider pages as well as full-page and half-page black-and-white ads are available. The advertising placement deadline is Oct. 2. Learn more

The South Dakota Bank Directory provides detailed information on all South Dakota banks, including addresses, telephone and fax numbers, important contact names and additional pertinent information. The directory also contains information on the SDBA, banking associations, regulatory agencies, endorsed vendors, associate members and South Dakota officials.

SDBA member banks, branches and associate members each receive one complimentary copy of the annual bank directory in January. Additional copies may be purchased while supplies last. 

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Contact Alisa Bousa, SDBA, at 605.224.1653 or via email.