SDBA eNews

June 17, 2021

Attendees at 2021 Quad States Convention Reimagine, Reinvent and Revolutionize 

Photo of Quad States ConventionMore than 325 bankers from South Dakota, North Dakota, Montana and Wyoming and their business partners came together and celebrated all that we have accomplished this past year at the 2021 Quad States Convention in Rapid City on Monday and Tuesday. The theme of this year's event was "A New Direction: Reimagine, Reinvent, Revolutionize."

The convention began on Monday afternoon with a golf tournament and optional tours of Custer State Park, downtown Rapid City and Journey Museum, followed by a welcome party that evening at The Monument. Tuesday began with individual business meetings of the four state bankers associations, followed by a day of speakers on a variety of timely topics. The event concluded with a reception, during which the Wyoming Bankers Association won the Quad States Family Feud.

Thank you to all of the bankers, sponsors and business partners who helped make this year's convention a huge success.

SDBA Membership Elects New Officers

SDBA membership elected 2021-2022 officers during the Association's Annual Business Meeting held on Tuesday in Rapid City during the Quad States Convention. 

The new officers are: Chair Kristina Schaefer, First Bank & Trust, Sioux Falls; Chair-Elect David Bangasser, Dacotah Bank, Sioux Falls; Vice Chair David Nelson, First Fidelity Bank, Burke; and Immediate Past Chair Steve Bumann, BankWest, Pierre. (Pictured L-R: David Nelson, Kristina Schaefer, David Bangasser and Steve Bumann.)

The Annual Business Meeting also included comments from the outgoing and incoming SDBA chairs, an association update from SDBA President Karl Adam, presentation of years of service awards and remembrance of those who passed away this past year.

Be watching for more coverage of the meeting and the Quad States Convention in the July SDBANKER Magazine. 

South Dakota Banking Commission to Hold Public Hearing to Adopt Rules

The South Dakota Banking Commission will hold a public hearing on July 8 at 1:30 p.m. CDT via telephone to consider the adoption of proposed rules.

Proposed Rule 20:07:06:01.02: The effect of the proposed rule is to abate the examination fee assessed to state-chartered banks for the June 2021 semiannual examination fee assessment period. The reason for adopting the rule is to manage the accumulation of money in the Banking Revolving Fund.

Proposed Rule 20:07:06:02: The effect of the proposed rule is to provide additional flexibility in the process of sending notice to state-chartered banks for future fees owed by each bank. The reason for adopting the rule is to provide the Division additional time to prepare and validate fee assessments for each state-chartered bank after the June 30 and December 31 reports of condition and income are validated and finalized by the FDIC. The Division generally has access to finalized data between 45 to 60 days after the June 30 and December 31 reporting dates.

Persons interested in presenting amendments, data, opinions or arguments for or against the proposed rule may do so via phone at the hearing or by mail or email prior to the hearing. Written comments must be submitted to the South Dakota Division of Banking at 1601 N. Harrison Avenue, Suite 1, Pierre, SD 57501 or by email to [email protected] at least 72 hours before the public hearing. Interested parties may attend by calling 605.679.7263 and using conference code 224866985 and pressing #. 

After the public hearing, the South Dakota Banking Commission will consider all written and oral comments it receives on the proposed rules and may modify or amend a proposed rule at that time to include or exclude matters that are described in the notice. Learn more

FDIC Announces Tech Competition to Reach Unbanked

The FDIC announced a competition yesterday for companies to explore new technologies for banks that will meet the needs of unbanked individuals. The “tech sprint” asks participants to identify better tools to help banks get unbanked households into the banking system and keep them banked. The FDIC is inviting banks, nonprofit organizations, academic institutions and private sector companies to participate.

Organizations will have two weeks to submit applications requesting participation, after a review of submissions, the FDIC will invite a select number of teams to participate. Selected teams will have three weeks to work on their proposed solution and then the FDIC will host a demo day, inviting teams to make short presentations to a panel of experts who will evaluate their submission.

According to the FDIC, approximately 7.1 million U.S. households remain completely unbanked. ABA has urged its member banks to actively promote financial inclusion, including through offering Bank On certified accounts. There are 92 financial institutions with more than 32,500 branches nationwide offering Bank On certified accounts, which offer features including low costs, online bill pay capabilities, no overdraft fees and certain transaction capabilities. Learn more about BankOn. Questions about the tech sprint can be sent to [email protected].

CFPB to Restart Military Lending Act Supervision

In a reversal of existing policy, the Consumer Financial Protection Bureau yesterday issued an interpretive rule stating that it has statutory authority to conduct Military Lending Act supervision activities and signaled that it will resume MLA examinations. The interpretive rule takes effect upon publication in the Federal Register.

The CFPB had previously discontinued MLA-related examination activities on the grounds that Congress had not expressly granted the authority to conduct such examinations. Read the interpretive rule. For more information, contact ABA’s Nessa Feddis.

FDIC Votes Not to Raise Assessments

The FDIC board on Tuesday voted not to raise deposit insurance assessments on banks in order to recapitalize its insurance fund. Instead, the FDIC will continue monitoring the situation, as FDIC staff expect the pandemic-related surge in deposits during 2020 that caused the Deposit Insurance Fund reserve ratio to fall below its statutory minimum of 1.35% even as the DIF reached a record level of $119 billion.

The FDIC is required under law to implement a plan to recapitalize the DIF within eight years when it falls below its minimum, which normally involves raising the assessments schedules. While the ratio declined from 1.38% in March 2020 to 1.3% last June, “the growth in insured deposits associated with the pandemic may recede as depositor behavior returns to normal and individuals and businesses redirect deposits toward consumption and higher-yielding investments,” the FDIC staff memo said.

The board decision recognized that the banking sector remains strong, FDIC Chairman Jelena McWilliams noted, “with robust levels of capital and liquidity, after serving as a source of strength throughout the pandemic last year.” Read more

Bell Bank to Hold AgViews LIVE Conference

Bell Bank will hold its AgViews LIVE ag conference with expert insight from author and speaker Dr. David Kohl and Lynn Paulson, Bell's director of agribusiness development. The free event will be held on July 7 at the Sioux Falls Convention Center in Ballroom B.

Attendees will find out Kohl's new mega trends, business and financial management traits for managing through economic cycles; why Paulson expects commodity price cycles of highs and low lows to become more frequent and extreme; and the best strategies for making long-term decisions when dealing with short-term highs and lows. 

Bankers, bank directors and ag customers are invited to attend. Register by June 25 by contacting Kelly Hegney at 701.451.7536 or [email protected]

2021 South Dakota Governor's Ag Summit to be Held July 8-9

The 2021 South Dakota Governor's Agricultural Summit will be held at The District in Sioux Falls on July 8-9. This free event offers an excellent lineup of speakers assembled to draw in policymakers, producers and prospective farmers from across South Dakota.

Along with keynote speaker David Horsager from the Trust Edge Leadership Institute, the 2021 Ag Summit includes local farm tours, a beginning farmers workshop and much more. Attendees will have the opportunity to make connections and build trusted, long-lasting relationships with those involved in agriculture from the field to the plate.

Everyone will leave the 2021 Governor’s Agriculture Summit with a better understanding of how we all can work together to strengthen and grow agriculture in South Dakota. Learn more and register


Question of the Week

Question: (CAN-SPAM): When sending unsolicited emails to non-customers, for purposes of CAN-SPAM Act, can the “from” line contain a loan officers name, instead of the entity sending the email; or must the “from” line disclose both the sender individually and the organization?

Answer: The FTC guidance addressing CAN-SPAM Act requires that the "from" portion of an email should be accurate and identify the person(s) or business(es) who initiated the message. It does not specifically require that the bank's name be in the from line if the person who initiated the message, in this case, the loan officer, is clearly identified. However, it would be a good practice and you are certainly not prohibited from including the bank's name in the from line.

Reference: "Don’t use false or misleading header information. Your “From,” “To,” “Reply-To,” and routing information – including the originating domain name and email address – must be accurate and identify the person or business who initiated the message."

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

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 and ask for our Membership Team.

For timely compliance updates, subscribe to Bankers Alliance’s email newsletters.

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