SDBA eNews

March 11, 2020

SDBA Seeking Candidates for Board Elections

Elections for the SDBA’s Board of Directors are scheduled for April. Two directors have terms that expire on April 30, 2020, in addition to a vacancy and the election of a new sized-based category. Elections will take place in Group 1, Group IV, Mid-Size Community Bank Category and the new Community Bank Category.

Group I: The Group I seat became vacant when the director who previously held the seat, Kristina Schaefer with First Bank & Trust in Sioux Falls, was voted SDBA vice chair last year. There are two years remaining in the term for the Group I seat (through April 30, 2022). Employees of member banks located in the following counties are eligible to run for the Group I seat: Bon Homme, Clay, Davison, Hanson, Hutchinson, Jerauld, Lake, Lincoln, McCook, Miner, Minnehaha, Moody, Sanborn, Turner, Union and Yankton counties.

Group IV: The Group IV seat, currently held by Pete Mehlhaff with Great Plains Bank in Aberdeen, is up for election. Mehlhaff is eligible to run for a second, three-year term.  Employees of member banks located in the following counties are eligible to run for the Group IV seat: Banks in Butte, Campbell, Corson, Dewey, Edmunds, Faulk, Hand, Harding, Hughes, Hyde, McPherson, Perkins, Potter, Sully, Walworth and Ziebach counties.

Mid-Size Community Bank Category: The Mid-Size Community Bank seat, currently held by Craig Davis with First National Bank in Pierre, is up for election. Davis has served one, three-year term and is eligible to run for a second, three-year term. Employees of member banks with deposits between $200 million and $750 million are eligible to run for the Mid-Size Community Bank Category seat.

Community Bank Category: A new Community Bank Category seat is up for election. Employees of banks with deposits between $75 million and $200 million are eligible to run for the Community Bank Category seat.

If you are interested in running for one of the Board seats, please contact one of the nominating committee members listed here by Thursday, April 2, 2020. Please also submit a short bio and headshot photo for the voting ballot to Alisa Bousa. Newly-elected Board members will take office on May 1, 2020, and serve a three-year term expiring April 30, 2023 (except for the Group I seat which is a two-year term). Questions, contact  Alisa Bousa.

ABA Cancels Washington Summit Amid Coronavirus Concerns

Given the health concerns raised by the 2019 novel coronavirus, and after hearing member feedback, the ABA has announced that it will cancel all scheduled March events, including the 2020 ABA Washington Summit, Emerging Leaders Forum, Mutual Community Bank Forum and Women’s Leadership Forum, which were scheduled for March 23-25 in Washington, D.C.

Registrations for these events will be automatically canceled—bankers do not need to contact ABA directly. The Association provided more detailed information to attendees via email regarding registration refunds (if applicable) and hotel reservation cancellations.

While the ABA regrets not being able to deliver the promised programming and networking opportunities, the safety and well-being of conference attendees remains ABA’s highest priority. For additional information or questions, email [email protected] or call 1-800-BANKERS.

ABA to Host Webinar on Coronavirus, Pandemic Planning Resources

To help bankers address the operational challenges posed by the 2019 novel coronavirus, also known as COVID-19, the ABA will host a free webinar for its members on Thursday, March 12, at noon CDT, to provide an update on the situation and discuss business continuity planning practices for banks.

The webinar will provide an overview of the health threat and review CDC guidelines on virus transmission; help bankers assess their business continuity plans and highlight available resources to assist with planning; and review leading industry practices and lessons learned in a 2007 pandemic exercise conducted by public and private-sector participants.

Presenters will include Accenture’s Valerie Abend, a former Treasury official who oversaw the 2007 pandemic planning exercise; University of Maryland School of Medicine’s David Marcozzi, a medical doctor with expertise in public health and epidemiology; and ABA SVP Paul Benda. Register for the webinar.

Other coronavirus and pandemic planning resources include:

Meanwhile, lawmakers also sent letters to ABA and other financial trade groups seeking information about the banking industry’s response to the virus. To help respond to this request for information, ABA is asking bankers to share specifics about how they are helping customers affected by the virus and its fallout in the economy. Please send your information to [email protected].  

Technology Firm to Offer Free Cloud Desktops, Resources to ABA Members

To help banks address the operational challenges posed by the novel coronavirus, Summit Technology Group announced on Tuesday that it will offer complimentary cloud desktops and business continuity resources to ABA member banks. Summit has dedicated engineering resources and consulting support to assist any ABA member bank interested in adopting these services.

“We deeply appreciate Summit’s offer to help our member banks at this difficult moment for the nation,” said ABA Chief Member Engagement Officer Jim Edrington. “While many banks are leveraging virtual desktop and remote work solutions, some smaller banks have not been able to make this technology investment. This opportunity could really help them keep operations on track if the coronavirus starts to have a bigger impact.”

This offer will last for six months and will come at no cost to current ABA members. ABA was an early investor in Summit, which helps community banks migrate systems to the cloud. Learn more.

Policymakers Urge Banks to Work with Borrowers Affected by Coronavirus

Recognizing the potential effects of the 2019 coronavirus disease on bank customers, financial regulators on Monday issued a statement calling on banks to work constructively with borrowers and others affected by the virus in their communities. The agencies emphasized that “prudent efforts that are consistent with safe and sound lending practices should not be subject to examiner criticism.”

The agencies also said that to help mitigate staffing challenges banks may experience as a result of the virus, “regulators will expedite, as appropriate, any request to provide more convenient availability of services in affected communities” and “work with affected financial institutions in scheduling examinations or inspections to minimize disruption or burden.” Read the statement

U.S. Bank Acquires Accounts as State Farm Exits Banking

Last week, Minneapolis-based U.S. Bank agreed to assume the deposits and acquire the credit card accounts of State Farm Bank, the $16.9 billion thrift owned by the major insurer, which through its affiliates is the nation's largest provider of auto and home insurance. The deal, which is expected to close later this year or early in 2021, comes as State Farm exits banking operations. Under the terms of the deal, State Farm agents will be able to introduce U.S. Bank deposit products and co-branded credit cards to their insurance customers. 

Plan, Don't Panic--Workplace Issues Related to COVID-19

The Graduate School of Banking at the University of Wisconsin-Madison is offering the webinar "Plan, Don't Panic--Workplace Issues Related to COVID-19" on Thursday, March 19, at 2 p.m. CDT. 

We’re all aware of the concern around the coronavirus and the common-sense recommendations by public health officials around hand washing and staying home when sick that are as ubiquitous as they are important. Certainly, with increased testing nationwide, the number of confirmed cases will continue to rise. What does this mean for your bank?

Are you as prepared as possible to protect your bank from the employment law issues that surround the coronavirus? Join this program to learn:

  • What rights do employees have?
  • How do OSHA, FMLA, FLSA and ADA/ADAAA and Title VII apply to the situation?
  • What other legal issues could your bank face as a result of COVID-19?

This timely “hot topic” GSB online seminar will provide practical advice to address employment law concerns related to the coronavirus. Register today for $179 to ensure you’re as prepared as possible to deal with this evolving situation. Register for the webinar

Compliance Q&A Addresses Rural Area Appraisal Options

In the March/April issue of the ABA Banking Journal, the Regulatory Compliance and Policy Inbox column—authored by ABA’s Compliance Hotline experts—covers what options bankers in rural areas have to mitigate appraiser shortages. One answer addresses conditions in the S. 2155 regulatory reform law and implemented by regulators under which rural properties are exempt from appraisal requirements. Another answer addresses circumstances when Regulation O limits loans made to an executive officer of a bank. Read the column.

Compliance Alliance

Question of the Week

Question: What type of concerns should the bank consider if we decided to host a podcast with one of our mortgage loan originators and one of his friends who is a realtor? Currently, the plan is for the podcast to discuss the housing market, conduct interviews and talk about what our city has to offer.

Answer: The main concern here would be a potential RESPA Section 8 violation, which in general prohibits referral relationships between the bank and settlement service providers.

"(b) No referral fees. No person shall give and no person shall accept any fee, kickback or other thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or part of a settlement service involving a federally related mortgage loan shall be referred to any person. Any referral of a settlement service is not a compensable service, except as set forth in § 1024.14(g)(1). A company may not pay any other company or the employees of any other company for the referral of settlement service business."

The bank should also follow its social media policy as I assume the bank will be sharing the podcast online. We also recommend including a disclaimer that the views expressed do not represent those of the bank.

Additionally, depending on the topics discussed, the bank may need to include certain disclosures. For example, if the podcast includes any home loan advertising, it must also include the "Equal Housing Lender" disclosure: 

Finally, we suggest reviewing our Advertising and Marketing Review Checklists for further guidance on the requirements:

Not a 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.

 Northern Plains Appraisal

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Contact Alisa Bousa, SDBA, at 800.726.7322 or via email.