SDBA eNews: February 23, 2017

In This Issue

Ag Lenders Invited to Take Part in Ag Land Value Survey


Agricultural lenders, appraisers, assessors, realtors and extension field specialists are invited to participate in the 2017 SDSU Agricultural Land Value Survey. 

The principal purpose of the survey is to obtain market value and cash rental rate information, by type of agricultural land, in different regions of South Dakota.  

Farmers, landowners, investors, lenders, real estate professionals and public officials are the majority users of the data provided by the survey. 
Take the 2017 survey. View the 2016 survey results.


Promontory Offers FDIC Insurance Coverage Webinar


Now is a great time for bankers to refresh their knowledge on FDIC insurance regulations as the FDIC continues to examine bankers’ understanding of deposit insurance rules that apply to third-party agency accounts.

FDIC insurance eligibility is a key benefit banks provide to depositors. It can be an important selling point in maintaining key customer relationships and obtaining bank funding.

Promontory Interfinancial Network, LLC is offering two free webinars on FDIC insurance coverage:

This 45-minute educational webinar is designed for all levels of bank employees and executives and will include a Q&A segment to address specific concerns. The webinar will be presented by Joe DiNuzzo, a former attorney with the FDIC and an expert in FDIC insurance regulations.


 Question of the Week

What happens if an HSA account becomes overdrawn due to a forced debit card transaction?

Answer: That likely would be a “prohibited transaction” (just like pulling money out to spend on something non-healthcare related), which could cause the account to lose its HSA status. While it isn’t the bank’s responsibility to make sure the account isn’t overdrawn, it is best practice to prevent overdrafts from happening in an HSA account.

Not a Compliance Alliance 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.


Upcoming Events

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Questions/Comments

Contact Alisa DeMers, SDBA, at 800. 726.7322 or via email.

SDBA Seeking Candidates for 2017 Board Elections


Elections for the SDBA’s Board of Directors for 2017 are scheduled for March and April. Three directors have terms that expire on April 30, 2017. Elections will take place in geographic Group 4 and Group 5 and the Large Community Bank Category.

Steve Bumann, BankWest, Pierre, is the current director for Group IV. He has served one term and is eligible to run for a second term. Shawn Rost, First Interstate Bank, Rapid City, is the current director for Group V. He has served one term and is eligible to run for a second term. Kevin Whitelock, Pioneer Bank & Trust, Spearfish, is the current director for the Large Community Bank Category. He has served two, consecutive terms and is not eligible to run for re-election.

If you are interested in a Board position, contact one of the nominating committee members by Wednesday, March 15, 2017. Please also submit a short bio and headshot photo for the voting ballot. Newly-elected Board members will take office on May 1, 2017, and serve a three-year term expiring April 30, 2020. Learn more.


Registration Open for SDBA 2017 Agricultural Credit Conference

 
Photo of Two FarmersThere are ways banks can position for success in agriculture’s challenging times, and attending the SDBA 2017 Agricultural Credit Conference will be a step in the right direction.

The SDBA Agricultural Credit Conference is a two-day conference designed for all ag lenders. This year’s conference will be held April 12-14, 2017, at the Ramkota Hotel & Conference Center in Pierre. Experienced and new ag lenders, as well as CEOs, will all benefit from this conference.

The SDBA has lined up speakers on a variety of timely topics to help bankers navigate through stressful times including Kevin Van Trump, Dr. Barry Flinchbaugh, John Blanchfield, Curt Covington, Andy Gottschalk and Minnesota Vikings' Chad Greenway. Learn more and register.


2017 Quad States Convention Sponsorship Deadline Nearing

 
Quad States Convention LogoCompanies looking to take part in the 2017 Quad States Convention by sponsoring have until March 1 to submit their sponsorship form and be listed in convention registration materials.

BANKING BEYOND BORDERS: 2017 Quad States Convention is set for June 4-6 at the Rushmore Plaza Civic Center in Rapid City, S.D. Hosted by the South Dakota Bankers Association, this year’s event will include bankers from South Dakota, North Dakota, Montana and Wyoming—we’re not in Kansas anymore!

There are many reasons to support this outstanding event. Vendors will have the opportunity to promote their products and services, position their solutions with top-level bank executives, show their support for the banking industry, interact with association members and celebrate their achievements.

Registration materials will be mailed to all banks, branches and associate members in late March.


Nichols Announces Program to Help Bankers Run for Office

  
As part of ABA’s efforts to promote a pro-growth policy environment, ABA President and CEO Rob Nichols on Monday announced that the association will pilot a workshop in the fall to help bankers run for state or federal office. Set for Sept. 13-15, 2017, in Washington, D.C., the program will provide information on how to file necessary paperwork, managing paid and earned media, fundraising, research and targeting and getting out the vote.

“It’s important that those casting votes on banking policy fully understand and appreciate the impact their decisions will have on a community and its residents,” Nichols remarked at ABA’s National Conference for Community Bankers in Orlando. Noting that just 35 of the 535 members in the last Congress came from the banking profession, he appealed to bankers and bank directors, as community and economic leaders, to run for public office. “When it’s time to set banking and economic policy, nothing beats real-world banking experience.”

Applications for the program will open in March but bankers can register their interest now at aba.com/RunforOffice. Accepted applicants will pay a $250 registration fee and their travel and hotel costs. Learn more now. For more information, contact ABA's Brittany Grimm.


Tipton Reintroduces ABA, Alliance-Backed Tailored Regulation Bill

 
Rep. Scott Tipton (R-Colo.) and eight GOP co-sponsors last Thursday reintroduced the House version of the TAILOR Act (H.R. 1116), which would require financial regulators to consider bank risk profiles and business models when taking regulatory actions. The bill--a signature part of ABA’s Blueprint for Growth--has for years been strongly advocated by ABA and the state bankers associations.

In addition to requiring a tailored approach for future rulemakings, the TAILOR Act would require a review of regulations issued in the past seven years and a report on how they might be better tailored. Regulators would be required to state in notices of proposed rulemaking how they applied the TAILOR Act.

ABA EVP James Ballentine applauded the legislation. “This important bill would help address the huge flow of new regulations that have made it more difficult for banks to meet the needs of consumers and small businesses as well as local and regional economies,” he said. “Regulators should be empowered--and directed--to make sure that rules, regulations and compliance burdens only apply to segments of the industry where warranted.”

Co-sponsors on the measure are Reps. Andy Barr (R-Ky.), Barry Loudermilk (R-Ga.), Mia Love (R-Utah), Robert Pittenger (R-N.C.), Bill Posey (R-Fla.), Ed Royce (R-Calif.), David Trott (R-Mich.) and Roger Williams (R-Texas). In the 114th Congress, Tipton’s bipartisan TAILOR Act cleared the House Financial Services Committee by a strong margin. Sen. Mike Rounds (R-S.D.) earlier last week introduced a companion measure in the Senate.


Full Circuit Court to Hear Appeal of CFPB Structure Case

 
The full D.C. Circuit Court of Appeals last week agreed to hear the appeal in PHH Mortgage v. Consumer Financial Protection Bureau, a closely watched case over whether the CFPB’s leadership structure--a single powerful director who cannot be removed at will by the president--is constitutional.

The  order also vacated an October 2016 ruling by a three-judge D.C. Circuit panel finding the structure unconstitutional and allowing the director’s removal not just “for cause” but at the president’s discretion--thus preventing President Trump from removing current director Richard Cordray before his term ends in 2018.

Oral arguments in the “en banc” review of the case will be heard by the D.C. Circuit on May 24. The case arose in 2015, when Cordray overruled an administrative law judge’s recommendation for a $6.5 million fine against mortgage lender PHH for allegedly requiring unlawful kickbacks from mortgage insurers in violation of the Real Estate Settlement Procedures Act. ABA will continue to monitor the case as it progresses. Read the order. For more information, contact ABA’s Thomas Pinder or Jonathan Thessin.