SDBA eNews: August 31, 2017

In This Issue

SDBA Tech Conference Early Bird Deadline Sept. 8

Sessions, solutions, vendors, products, networking and more. To help you lead your bank in this ever-changing world of technology, the SDBA will offer the 2017 Bank Technology Conference Sept. 19-20 at the Ramkota Hotel in Sioux Falls.

Leaders and innovators in the field will provide sessions on cybersecurity, vendor management, regulatory issues and director education. In addition to the impressive line-up of industry experts, this conference will provide an opportunity to network and share resources with others in your field and a chance to visit with exhibitors to see and experience the latest in products and services.

Register to attend by Sept. 8 and save $30. Learn more and register.

Siouxland Dairy Lender's Seminar: Nov. 2

Agricultural lenders will receive useful information at the Siouxland Dairy Lender’s Seminar on Nov. 2 at the Forrester Community Center in Rock Rapids, Iowa. Lenders who serve ag clients and especially lenders who work with dairymen in Iowa, Minnesota, Nebraska and South Dakota are encouraged to attend.

This year’s focus is on market outlooks for livestock, grains and dairy, long-term weather influences for ag plus dairy finances and ag policy.

Register by Oct. 27 and the cost to attend is $80 for the first person from an institution and $50 for each additional person. To register, contact the Sioux County Extension office at 712.737.4230 or email Fred Hall.

Question of the Week

Under Regulation E a bank is required to research a customer’s dispute of an electronic transfer if, among other things, it was received within 60 days after a periodic statement that contained the error was sent. What obligation does the bank have if a dispute is received after those 60 days?

Answer: There is not a requirement to comply with the investigation portion or any other portion of 1005.11 after 60 days from the periodic statement since the Regulation state’s that the bank must comply if it’s no later than 60 days.

(b) Notice of error from consumer—(1) Timing; contents. A financial institution shall comply with the requirements of this section with respect to any oral or written notice of error from the consumer that:

(i) Is received by the institution no later than 60 days after the institution sends the periodic statement or provides the passbook documentation, required by §1005.9, on which the alleged error is first reflected.

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.

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

Hurricane Harvey Relief Fund Initiated

ABA President and CEO Rob Nichols on Tuesday called on bankers to join ABA in supporting the response to Hurricane Harvey on the Gulf Coast and invited them to contribute to the Hurricane Harvey Relief Fund set up by the Texas Bankers Association (TBA) and the Independent Bankers Association of Texas (IBAT).

ABA and its subsidiaries will contribute $100,000 to the fund, which will provide relief for people displaced by the storm, including bank employees and their families. Contributions to the fund are tax-exempt, and TBA and IBAT are absorbing all credit card processing fees to ensure 100 percent of funds reach those in need. ABA will also match its own employees’ contributions to Harvey relief efforts.

“It will come as no surprise to you that the industry’s response to date has been caring, generous and committed,” wrote Nichols in an email to bank CEOs nationwide. “I have no doubt all banks whose customers have been harmed by Hurricane Harvey will make a priority of helping them through this difficult time.” He cited a wide range of responses, from community banks that have opened mobile branches to institutions waiving service fees to million-dollar relief pledges from large nationwide banks.

"Like Rob, I too have received inquires from bankers wondering what they here in South Dakota might do to help bankers who lives have been turned upside down by Hurricane Harvey," said SDBA President Curt Everson. "To the extent that any bank or banker would like to make a contribution to help in relief efforts, the Hurricane Harvey Relief Fund set up by the TBA and IBAT is one way to facilitate a financial contribution."

Nichols also pointed to several ABA resources for banks dealing with the storm, including constant coordination with federal, state and local authorities through the Financial Services Information Sharing and Analysis Center to ensure the banking system continues to function, as well as communications resources for banks on the front lines of disaster.

With cleanup efforts beginning to get underway and many communities still experiencing heavy flooding along the Gulf Coast in the wake of Hurricane Harvey, ABA SVP Doug Johnson discussed the status of the banking industry yesterday on CNBC’s “Closing Bell.” An estimated 1,000 bank branches have been affected by the hurricane.

Agencies Issue Additional Guidance on Harvey Response

In related news, federal banking agencies issued additional guidance and resources to institutions on Tuesday. In a bulletin, the OCC urged banks serving Harvey-affected customers to consider waiving or reducing ATM fees; temporarily waiving late payment fees or early withdrawal penalties; restructuring debt obligations when appropriate, although generally not for periods longer than 90 days; expediting lending decisions when possible; and originating or participating in sound reconstruction loans.

“Examiners will not criticize these types of responses as long as the actions are taken in a manner consistent with sound banking practices,” the agency said.

The FDIC issued similar guidance that also referenced practices such as increasing ATM withdrawal limits, easing credit card limits and delaying the submission of delinquency notices to credit bureaus.

“The FDIC encourages depository institutions to use non-documentary verification methods permitted by the . . . Bank Secrecy Act for affected customers who cannot provide standard identification documents,” the agency said. “Prudent efforts by depository institutions to meet customers' cash and financial needs generally will not be subject to examiner criticism.”

The FDIC also issued an FAQ for bank customers, as well as resources on lessons learned from Hurricane Katrina. View the OCC bulletin. View the FDIC guidance and resources.

Two South Dakota Banks Named 'Best Banks to Work For'

American Banker Magazine on Monday published its fifth annual list of the 75 best banks to work for. South Dakota's First Bank & Trust in Brookings and Sioux Falls was named number 20, and First PREMIER Bank in Sioux Falls was named number 61. SDBA associate member Bell Bank in Fargo was named number five.

First Bank & Trust each year hosts a 5K for employees and their families that raises money for charity, and the bank's Community Brigade program authorizes employees to provide up to $150 to a person in need, reimbursed by the company. The bank's "Be the 1" program provides cash rewards for employees who think on their feet and make decisions. 

To psych employees up for a core systems conversion, First PREMIER Bank sponsored an event at a local corn maze that featured pro bull riders and prizes including a trip to Las Vegas. Last year, the bank also sponsored Jacks Bash, a weekend celebration to mark the opening of the Dana J. Dykhouse Football Stadium at South Dakota State University. All employees got two tickets to a One Republic and Andy Grammer concert and $50 to spend on concessions.

Bell Bank offers employees access to a personal health coach though an online portal that syncs with Fitbit. Every year, the bank encourages employees to spend time with friends and family with an extra day off they can take at any time and a $200 gift card. Employees also get cake for milestone birthdays.

The SDBA congratulates these and other banks for establishing a culture and amenities that help attract and retain top talent. View the list.

DOL to Delay Fiduciary Rule Exemption Effective Date

The Department of Labor today proposed to extend to July 1, 2019, the applicability date for certain exemptions to the fiduciary rule. The extension would apply to the best interest contract exemption, principal transactions exemption, and prohibited transaction exemption 84-24.

The delay--published this morning in the Federal Register and signaled earlier this month--marks an advocacy victory for ABA, which has long called on DOL to extend the effective date for the exemptions to allow bankers more time to comply. Comments on the proposed delay are due by Sept. 15. Read the proposal. For more information, contact ABA's Tim Keehan.

ABA Weighs in on Proposed Call Report Revisions

ABA on Monday responded to the regulatory agencies’ request for comment on further revisions to the Call Report that would simplify the report for banks by removing or consolidating a number of existing data items, reducing the reporting frequency for other data items and increasing certain reporting thresholds.

While ABA expressed support for the agencies’ efforts to eliminate unnecessary items from the report, it raised concerns about a few of the proposed changes. Specifically, ABA opposed revisions that would align the method for determining the past-due status of certain loans and other asserts with an accepted industry standard, noting that it would “impose significant costs on the industry with little regulatory or supervisory benefit.” ABA also opposed a proposal to move banks with more than $100 billion in assets to the FFIEC 031, which would effectively create three Call Reports.

ABA has been heavily involved in the ongoing process to streamline the Call Report, which the agencies initiated in response to ABA comments submitted through Economic Growth and Regulatory Paperwork Reduction Act process. As part of the initiative, ABA has facilitated numerous conversations between bankers and regulators to explain Call Report burdens and offer suggestions for its improvement. Read ABA's comment letter. For more information, contact ABA's Alison Touhey.

2018 Scenes of South Dakota Calendar Deadline Nearing

Banks interested in placing an order for the 2018 Scenes of South Dakota Calendar have until Friday, Sept. 1, to receive the low price of $1.19 per calendar. After Sept. 1, the cost is $1.49 per calendar. Orders will be taken through Sept. 15.

The Scenes of South Dakota Calendar features photos of South Dakota submitted by South Dakota bankers, their family members and customers. These calendars are a great opportunity for banks to thank customers for their business and promote their bank.

Banks and branches can have their logo and contact information customized at the bottom of each calendar. Learn more and place an order. Questions, contact the SDBA's Alisa DeMers.