Thanks to the newly-signed 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 new 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).

The role of an IT professional is ever-changing, especially in today’s environment. The SDBA Bank Technology Conference set for Sept. 11-12 in Sioux Falls is designed to provide support as you keep on top of technology trends and scams, navigate the business of banking, and build and sustain your bank’s technology strategy. This conference will provide you with an opportunity to learn from industry experts, network with other IT colleagues, and visit with exhibitors to see and experience the latest in products and services.

Sessions will cover cybersecurity, website design, incident response plans, trends and developments, preparing for your next exam, recruitment and retention of IT personnel and much more. Presenters include Lee Wetherington, who will provide the bottom line on fintechs, bigtechs, branches, blockchain and more and how to navigate the most strategically important challenges and opportunities ahead and Dave DeFazio, who will talk about the Amazon Prime effect and surviving in the new subscription society. See the full agenda. Register to attend.

As they implement S. 2155, the Federal Reserve and the FDIC said on Monday that they are beginning the process of determining which financial firms with assets of less than $250 billion will be subject to the requirement to submit resolution plans, also known as living wills. Under S. 2155, the Federal Reserve is no longer required to impose the living will process on bank holding companies with less than $100 billion during the first 18 months following the bill’s passage. After the 18-month period, or sooner at the discretion of the Fed, the requirement ends for bank holding companies with assets below $250 billion.

As recommended by ABA in a February comment letter, the agencies also extended the deadline for 14 U.S. regional banking companies to submit their resolution plans. Originally due by the end of 2018, living wills will be due by Dec. 31, 2019, in order to allow more time for the agencies to provide feedback on their last round of resolution plans. ABA has urged--and Fed Vice Chairman for Supervision Randal Quarles has signaled that he wants to pursue--a biennial rather than annual living will process.

The 14 companies receiving the extension are Ally Financial, American Express, BB&T Corporation, Capital One Financial, Citizens Financial, Fifth Third Bancorp, Huntington Bancshares, KeyCorp, M&T Bank, Northern Trust, Regions Financial, SunTrust Banks, PNC Financial Services Group, and U.S. Bancorp. Last week, the Fed and FDIC also sought public comment on living will guidance for the largest U.S. financial institutions. Read more. Read ABA's comment letter. For more information, contact ABA's Hu Benton. 

By a bipartisan 86-11, the Senate last Thursday passed its version the 2018 Farm Bill. The vote sets up a conference between the Senate version and the recently passed House version where lawmakers will address differences in the two bills on nutritional assistance, farm subsidy caps and conservation initiatives.

ABA President and CEO Rob Nichols welcomed the bill's passage. "The reauthorization of this bill will provide critical risk management tools and stability for our nation’s farmers and ranchers and the 2,000 farm banks that serve them every day," he said. "We are particularly pleased that banks and their customers will continue to have access to crop insurance and USDA guaranteed loan programs. Ag bankers use these programs to make loans and manage risk, so they can serve the needs of their customers even in down times."

The bill also included a six-month extension of the National Flood Insurance Program, which is set to expire on July 31. "While work remains to achieve long-term reauthorization and reform of the NFIP, it is essential for borrowers across the nation that the program not lapse," Nichols said. 

A coalition of more than 600 agricultural banking and insurance organizations--including ABA--and other ag industry constituents signed onto a letter to members of the Senate urging them to oppose any harmful amendments in the 2018 Farm Bill that would increase the cost of, reduce or limit participation in, or harm private sector delivery of crop insurance. With the House’s passage last week of its version of the Farm Bill, the Senate must now pass its version before the two bills can be reconciled. 

The groups underscored the importance of crop insurance to America’s farmers and ranchers, noting that without it, many could not qualify for the operating loans they require. In addition, crop insurance currently provides a rapid response solution to natural disasters, provides for environmental benefits, protects jobs both on and off the farm, and is available to all types and sizes of producers nationwide. 

“Crop insurance is food and fiber security insurance, and food and fiber security is national security,” the groups said. “Given the importance of crop insurance, [we] urge you to support America’s farmers, ranchers, rural economies and national security by opposing amendments that would harm crop insurance.” Read the letter. 

Registration is now open for Lead Strong: Women in Banking set for Oct. 2, 2018, at the Hilton Garden Inn South in Sioux Falls. The event is the SDBA's first one-day conference for women in banking. 

LEAD STRONG: Women in Banking is designed to encourage, support and inspire women to succeed in the workplace. This event will benefit all levels of staff interested in the enhancement and career growth of women in South Dakota banking. 

A lawyer and a professional baseball player walk into a bank.... No, it’s not a joke -- it’s the latest episode of the ABA Banking Journal Podcast. Emily Gray graduated from law school, and Blake Taylor began his working life as a minor-league baseball player, but both of them ended up building successful careers in community banking. Gray is now senior credit officer at Hardin County Bank, Savannah, Tenn., and Taylor is an SVP and commercial real estate lender at Southern First Bank in Columbia, S.C.

They are chair and vice chair, respectively, of ABA’s Emerging Leaders Advisory Board, and on the podcast they discuss how rising leaders in banking can develop their careers and position themselves to succeed. One important skill, for example, is “horizontal leadership” (compared with top-down leadership). “You’ve got to be able to lead horizontally with your peers,” says Gray. “A lot of the time, and especially in community banks, you have so many people who wear so many different hats that the hierarchy isn’t there as much as in a larger institution.”

Both Gray and Taylor speak frankly about the challenges facing ambitious community bankers as industry consolidation continues. “There’s only a handful of those [C-suite] opportunities,” says Taylor. “What’s going to set me apart?” But Gray adds that she’s optimistic: “I don’t think there’s ever been a better time to be a young banker.” Both veterans of young bankers’ programs in their own states, they also discuss the roles of the state bankers associations in developing the next generation of executive banking talent. Listen to this episode.

Do you use podcast apps to listen? You can find the ABA Banking Journal Podcast on Apple Podcasts, Google Play, Pocket Casts, Stitcher and Spotify, as well as in the Daily Newsbytes email every Friday.

President Trump will nominate Kathy Kraninger, a top aide at the Office of Management and Budget, as director of the CFPB, the White House confirmed Saturday. Kraninger is an associate director at OMB responsible for financial regulatory agency budgets and previously served as Senate staff on Capitol Hill and at the Department of Homeland Security.

Upon confirmation, Kraninger would replace CFPB Acting Director Mick Mulvaney, who is also the confirmed director of OMB. Kraninger’s nomination comes at a key moment for the CFPB; under the Federal Vacancies Reform Act, Mulvaney’s stint as acting director would have expired this month, but when a permanent replacement is nominated, the clock resets, allowing Mulvaney to remain as acting director until Kraninger is confirmed.

ABA President and CEO Rob Nichols congratulated Kraninger on her nomination. “Her experience at OMB alongside Acting CFPB Director Mick Mulvaney, along with her years of work on Capitol Hill and in the executive branch, would serve her well in this important position,” he said. “We trust she shares our interest in ensuring consumers have access to the financial products they want and need, while maintaining the protections they deserve.” 

To mark World Elder Abuse Awareness Day on Friday, the ABA Foundation is this week releasing a free new guide to help bankers combat financial exploitation of seniors. Seniors currently lose an estimated $2.9 billion per year to financial abuse, and with a growing number of baby boomers retiring, scams targeting the elderly are growing.

The new guide provides an overview of the state of financial exploitation; addresses top scams currently in play; examines what banks can do, including how to report suspected fraud; and outlines the distinct roles of law enforcement agencies and adult protective services and how to partner with them. It also includes several sample resources, including introduction letters to law enforcement, APS, senior-focused nonprofits and senior living facilities.

The guide is part of a broader set of ABA Foundation resources to help bankers protect their senior customers. Through aba.com/seniors, bankers can register for FinEdLink, a free platform that connects participating banks with senior-focused community groups and agencies that would like a banker-led presentation on senior financial safety.

• Download the guide.
• Learn more at aba.com/seniors.
• For more information, contact ABA's Samuel Kunjukunju. 

SDBA membership elected new officers for 2018-2019 at the SDBA's annual business meeting held June 12 during the 2018 Annual Convention in Fargo. (Pictured left to right are Shawn Rost, Karl Adam and Dave Rozenboom; not pictured is Steve Bumann.)

The new officers are Chairman Karl Adam, market president, First Dakota National Bank, Pierre; Chairman-Elect Shawn Rost, South Dakota market president, First Interstate Bank, Rapid City; Vice Chairman Steve Bumann, CFO, BankWest, Pierre; and Immediate Past Chairman Dave Rozenboom, president, First PREMIER Bank, Sioux Falls.

The IRS' Criminal Investigation Division is offering two free web conferences on Thursday, June 14, on understanding the basics of virtual currency and understanding the basics of the dark web.

IRAs continue to be an essential part of a person’s retirement planning. IRA rules are always changing, and more changes are expected in the near future. It is important to be informed and prepared.

The SDBA is offering its 2018 IRA School Sept. 5-7 at the Clubhouse Hotel & Suites in Sioux Falls. You can attend as many one-day IRA seminars as you want, but it will not equal what is covered in a three-day IRA school. This is the most comprehensive IRA course offered.

The Consumer Financial Protection Bureau and the Financial Crimes Enforcement Network will host a briefing on Thursday, June 7, at 1 p.m. CDT on their joint memorandum encouraging coordination among financial institutions, law enforcement and adult protective services to protect older Americans from financial exploitation. The webinar will focus specifically on the role of Suspicious Activity Reports in assisting law enforcement’s investigation of elder financial exploitation. Registration is required. 

As banks continue the fight against elder abuse, the ABA Foundation has compiled a number of resources bankers can use to raise awareness about financial exploitation among older Americans. ABA’s Safe Banking for Seniors program provides free presentation lessons, activities and other materials to educate older Americans and their caregivers about how to bank more securely. The foundation also recently launched FinEdLink, which connects registered banks with community organizations or agencies to provide banker-led presentations in the community. To learn more, visit aba.com/seniors. Register for the CFPB/FinCEN webinar. 

The SDBA is creating a customized calendar from photographs of South Dakota submitted by South Dakota bank employees, their family members and customers. If you are an amateur photographer and would like the opportunity to have your creativity displayed in the 2019 Scenes of South Dakota Calendar, this is your chance.

Send the SDBA your photos of farms, barns, agricultural activities, historical South Dakota locations, county fairs, carnivals, parades or festivals, fall colors, winter snowfalls, spring flowers, or summer fun. Any photo that shows the history and beauty of the great state of South Dakota qualifies. All photos submitted will be judged and the top photos will be featured throughout the 2019 Scenes of South Dakota calendar. The deadline to submit a photo is July 28. Photo submission form. 

Signaling a significant shift in the OCC’s approach to small-dollar lending, the agency yesterday issued a bulletin encouraging banks to make “responsible short-term, small-dollar installment loans, typically two to 12 months in duration with equal amortizing payments” to help meet the credit needs of their customers. 

The bulletin does not define how banks should underwrite small-dollar loans, but notes that small-dollar lending programs should be consistent with safe and sound banking practices, include an effective risk management framework and be underwritten based on reasonable policies and practices, which may include analysis of internal and external data sources such as the borrower’s deposit activity with the bank. It also calls for banks to report repayment activity of small-dollar loan customers to the credit bureaus to help borrowers improve their credit scores. 

ABA has long called on regulators to remove barriers that impede banks from making small-dollar loans, highlighting in a white paper to the Treasury Department last year that there is a genuine consumer need for small-dollar credit. “Today’s bulletin is a step in the right direction to help banks offer customers a variety of short-term credit products,” said ABA SVP Virginia O’Neill. “We appreciate that the principles outlined in the bulletin are not prescriptive and encourage banks to design their own underwriting and product features that promote access and treat customers fairly.” 

ABA also welcomed the OCC’s willingness to work with the Consumer Financial Protection Bureau as it undertakes a review of its final payday lending rule, which establishes “ability-to-repay” requirements for single-payment loans and loans with a term of 45 days or less. “We look forward to working with these agencies to remove regulatory impediments that stand in the way of banks’ ability to meet consumers’ short-term credit needs,” O’Neill added. “Allowing banks to innovate will lead to more diverse products and greater consumer choice.” Read the bulletin. For more information, contact ABA's Virginia O’Neill. 

Have you been trying to decide whether to attend the NDBA/SDBA Annual Convention in Fargo on June 10-12. Of course you should! Where else would you enjoy a great program, lots of activities and the chance to connect with more than 350 bankers and business partners?

And here's another incentive to send your registration in today--you will save money. The early registration had been extended until Friday, May 25.

In an effort to stay connected with our member bank employees, the SDBA is asking people to review their contact information on file with the Association. If you don't have a profile set up with the SDBA, we encourage you to do so.

There are a number of benefits of having an SDBA profile, such as receiving notification of our training and events and the ability to register online. The SDBA also provides a number of electronic publications that you can sign up to receive, such as the weekly SDBA eNews, monthly South Dakota Banker Magazine, Education Update, Regulatory Report, and Legislative Update and Bill Watch during the South Dakota State Legislature. Member bank employees can also sign up to receive protective alerts issued by the SDBA. 

Educate. Advocate. Grow. This is the message of the SDBA's new logo.

As the SDBA works to engage the next generation of emerging bank leaders, inspire people to get involved and develop new programming such as the Lead Strong: Women in Banking Conference, staff decided it was time for a new look for the Association. The SDBA hired Epicosity, an ideas company from Sioux Falls and SDBA associate member, to design a new logo and position statement. 

A few spots still remain for the National School for Experienced Ag Bankers June 25-29 in Spearfish. 

Sponsored by the SDBA, the school targets ag bankers with a strong knowledge of financial analysis in ag banking who desire further training analyzing and troubleshooting more complex and problem credits. Three to five years of banking experience is recommended. The school is also beneficial for ag loan officers, credit analysts, credit reviewers, regulators and FSA loan officers. 

The House will vote on S. 2155, the bipartisan financial regulatory reform bill advanced by the Senate in March, while the Senate will take up a set of additional reform bills passed by the House Financial Services Committee, according to an agreement announced by House Speaker Paul Ryan (R-Wis.) on Tuesday. Both Ryan and House Majority Leader Kevin McCarthy have previously signaled that the House could pass the bill in May, but Ryan offered no further comments on the timing of a vote.

“We’ve got an agreement to be moving different pieces of legislation,” Ryan said. “So we will be moving [S. 2155]. We’re also going to be moving in the Senate a package of bills that we think will actually add to this that the Financial Services Committee has acted on as well.” The House Financial Services Committee has passed numerous standalone measures by substantial bipartisan majorities.