SDBA eNews

June 23, 2022

ABA report: Farm banks' ag lending ticks up in 2021

Agricultural lending by U.S. farm banks increased 5.5% in 2021 to $99.6 billion, according to the American Bankers Association’s Farm Bank Performance Report. The change is based on a 7.5% increase in outstanding loans secured by farmland and a 2.9% increase in agricultural production loans.

The annual report examines the performance of the 1,553 banks specializing in agricultural lending. In 2021, farm banks provided access to Paycheck Protection Program funds, originating 538,154 PPP loans worth $14.6 billion, distributed by more than 7,500 branches in rural America. Farm banks continue to be a major source of credit to small farmers, holding more than $43.8 billion in small farm loans ($500,000 or less), including $9.9 billion in micro farm loans ($100,000 or less) at the end of 2021.

Ninety-eight percent of farm banks were profitable in 2021, with 73.2% reporting an increase in earnings. Farm banks also served as job creators, adding more than 1,600 jobs in 2021, a 2.1% increase, and employing 80,000 rural Americans. Farm banks have also built strong, high-quality capital reserves and are well-insulated from risks associated with the agricultural sector. Equity capital at farm banks increased 6.5% to $53.3 billion in 2021 while tier 1 capital increased by $4.5 billion to $46 billion.

At the end of 2021, all banks—not just farm banks—held $179 billion in farm and ranch loans. Small loans continue to make up almost half of banks’ farm and ranch lending, with $69 billion in small and micro farm and ranch loans at the end of 2021, including more than 737,000 microloans worth more than $16 billion.

Cyber-Safe Travel

Summer is a popular time to travel whether it be for a relaxing overnight trip or a week away exploring a new destination. You are likely taking along that smartphone or other device to assist with getting directions, locating or identifying points of interest, and capturing that special photo. Practicing good cyber hygiene before, during, and after your trip will help secure your devices and allow you to connect with confidence when you’re away from home.

Quick note if you are traveling with business equipment: It’s best that you leave your work devices behind; however, if you can’t leave home without them, ensure that you are following your organization’s policies and procedures for protecting the devices and the information they contain while traveling.

Before You Travel

Update your devices. Updating devices will fix security flaws and help keep you protected. Whether it’s your computer, smartphone, or gaming device, be sure to update your operating system, applications, antivirus and malware software, and the like. If you haven’t already turned on automatic updates, now is a good time to consider doing so.

Back up your devices. Back up information such as contacts, financial data, photos, videos, and other data in case a device is compromised during travel and you have to reset it to factory settings.

Lock your device. Make sure to lock your device when you are not using it. Set your devices to lock after a period of time and use strong PINs and passwords.

Enable multi-factor authentication (MFA). Add an extra layer of protection so that the only person who has access to your account is you. For more information on MFA, see

During Your Travel

Guard your devices. Your devices are valuable, but your sensitive information is, as well. Always keep your devices close at hand and secure in taxis, security checkpoints, airplanes, rentals homes, and hotel rooms.

Securely recharge. Never plug your phone into a USB public charging station, such as those in the airport or in hotel room lamp and clock radio inputs, as these cannot be trusted. Malicious individuals can hijack your session or install malware on your device through those seemingly-harmless means. Always connect using your own power adapter connected to a power outlet.

Delete data from your rental car. If you connect your phone to a rental car for navigation or other purpose, be sure to securely remove the device so that other individuals do not have access to your address book, device name, text messages (hands-free calling), or other sensitive information.

Avoid public Wi-Fi. While public networks are convenient, they are a security risk. Avoid connecting to public Wi-Fi unless absolutely necessary. Instead, consider using your phone carrier’s internet connection or use your phone as a personal hotspot if your plan allows.

If you do need to connect to public Wi-Fi, verify with the establishment the name of the network and use a virtual private network (VPN), software which will encrypt your internet traffic and prevent others from stealing your data. Verifying the network name is important. Oftentimes, malicious individuals create similar connection points with a slight misspelling, hoping you will instead connect to their network.

Turn off auto-connect. While auto-connect is enabled, devices will seek out and connect to available networks or Bluetooth devices. This could allow cyber criminals to access your device without you knowing it. Disable auto-connect, Bluetooth connectivity, and near-field communication (NFC) like airdrop so that you can select the network and control the connection.

Limit what you share. Limit the information you share on social media while on vacation and consider posting updates about your trip after you return. Revealing too much information while away can put you and others at risk. Criminals can gain useful information from such posts like knowing you are away from your home. Scammers may even attempt to contact your family and friends with a variety of scam tactics. Additionally, consider setting your social media accounts to only allow friends to view your posts.

Avoid the use of public computers. Public computers such as hotel business centers and internet cafes are often poorly managed and provide minimal security protection for users. If you must use a public computer, do not enter any username or password on the computer and do not connect or transfer data via thumb drive/USB.

When You Return Home

Shred your boarding pass and luggage tag. Scannable codes on boarding passes and luggage tags include full name, date of birth, and passenger name record. These can also contain sensitive data from your airline record like passport number, phone number, email address, and other information that you wouldn’t want to share publicly. For this same reason, never post boarding passes on social media.

Scan for virus and malware. It’s best to update your security software when you return home and scan for viruses and malware to be sure your device has not been compromised while you were away.

Find more information and resources in the conclusion of this article from the Center for Internet Security. 

CFPB targets credit card fees

CFPB Director Rohit Chopra today announced an advance notice of proposed rulemaking focusing on credit card late fees. The ANPR reopens a rule that the Federal Reserve Board enacted in 2010 that provides banks with a safe harbor on the amount they can charge when a cardholder pays late and which provided for annual adjustments based on inflation.  In remarks today that suggested that he views current fees as “excessive,” Chopra indicated that CFPB would scrutinize how banks that rely on that safe harbor set their fees and how banks are immunized from enforcement when following the government’s rule.  This review could potentially lead to a revision in Regulation Z, which implements the CARD Act and Truth in Lending Act.

Under the CARD Act, credit card late fees must be “reasonable and proportional” to the costs incurred by the issuer as a result of a late payment, unless the bank instead relied on a safe harbor limit set by regulators. In 2010, the Federal Reserve approved implementing regulations for the CARD Act that set fees at $30 for a late payment and $41 for each subsequent late payment within the next six billing cycles, subject to an annual inflation adjustment. In the years since, CFPB has adjusted the safe harbor amount based on annual changes in the weighted Consumer Price Index.

Today’s ANPR focuses in particular on the 2010 rule, and the CFPB signaled that it intends to “determine whether adjustments are needed to address late fees.” Comments on the proposal are due July 22.

The American Bankers Association panned this action by the bureau, noting that consistent with the CFPB’s “misguided public relations campaign against so-called ‘junk fees,’ today’s CFPB action attempts to sensationalize a standard, highly regulated fee, creating the false impression that credit card issuers are pushing the bounds of the law.” ABA emphasized that late fees have already been capped by federal regulation, and that banks issuing credit cards are routinely supervised for compliance. “Today, despite that regulatory reality, Director Chopra has declared these fees ‘excessive,’ suggesting he has already made up his mind before the rulemaking process even begins,” the association said.

Community Commitment Awards Entry Forms

The ABA Foundation in 2022 is proud to mark 10 years of celebrating America’s banks and their dedication to the people and places they serve. Banks across the industry are now helping their communities recover and thrive after an unprecedented pandemic. The Community Commitment Awards spotlight banks that continue the tradition of excellence in community outreach.

The 2022 entry period opened May 2 and closes July 1 at 11:30 p.m. EST. The winners will be notified approximately 8 weeks from the close of the entry period. The awards will be presented at the ABA Annual Convention in October.

2022 Entry Forms

  • Community Commitment Award - Recognizes banks of all sizes for programs and initiatives that showcase the creativity and compassion of the industry, and its commitment to serving customers and communities in need.
  • George Bailey Award Nomination - Recognize an individual non-CEO banker, demonstrating extraordinary commitment to their community.

CISA News: Phishing in South Dakota  

A partner here in South Dakota reported a major phishing attack with some of their employee names being spoofed. A fundamental aspect of email training is separating the email alias / name from the actual email address. Fortunately, their email filtering gateway intercepted the messages. Unfortunately that has not happened to all messages of this campaign. Click here to view the list of phishing senders.

First Dakota Partners With South Dakota Community Foundation To Celebrate 150th Anniversary

To celebrate one and a half centuries in the banking business, First Dakota National Bank is partnering with the South Dakota Community Foundation (SDCF) to give back to South Dakota communities that have given much to them.

“SDCF’s mission is to bring philanthropy to life for a stronger state,” said Jeff Veltkamp, SDCF Director of Development. “We’re excited to partner with First Dakota in giving back to South Dakota communities that have provided them with so much success.”

First Dakota established the Stronger Communities Fund with SDCF to help South Dakota communities thrive and prosper, regardless of their size, resources or history. One of the ways First Dakota grows the fund is through sales of their 150th anniversary beers. For every can or glass of Dakota Thirst & Cash Flow purchased this year, First Dakota is donating $1 to the fund.

“Since 1872, First Dakota has called South Dakota home,” said Rob Stephenson, President of First Dakota National Bank. “Our commitment to the region runs deep. This fund is one of the ways we give back to the people, organizations and communities that make this such a fantastic place to live and grow.”

The first round of grants distributed in April totaled $360,500. Recipients included:

• City of Elk Point
• Habitat for Humanity of Clay and Yankton Counties
• Letcher Community Development Foundation 
• Sioux Council Boy Scouts of America

• South Dakota State Fair Foundation

First Dakota National Bank became the first fully chartered bank in the Dakota Territory when it opened its doors in 1872. For 150 years, the organization sought to support local dreams and communities with dependable banking.

Upcoming deadlines for grant applications are June 30th, September 30th and December 31st. Applications are reviewed quarterly, and if approved, awards will be granted within six weeks of application deadlines. Anyone can apply, but priority will be given to those communities with a First Dakota presence.

Learn more about the Stronger Communities Fund and how to apply by clicking here.

Save the Date: USD's Beacom School of Business: Meet the Firms!

 The Beacom School of Business - Career Success Center is planning a Meet the Firms event for Tuesday, September 6 from 3:00pm-5:00pm for employers to come on campus and network with our students. 

There will be a speed networking format so employers will have a table set up and small groups of students will rotate around and visit with each table in 10 minute intervals for approximately one hour. The last 30-45 minutes of the event will be an open time for students to visit more in depth with you or to make connections with your company. During your 10 minutes you are welcome share information about your company and any full-time, part-time, or internship opportunities that you may have available immediately or in the near future (e.g. spring 2023 or summer 2023). At the event you may collect student contact information when you visit with students to keep in touch with them. And of course, you are welcome to have recruitment materials and any promotional items for your company as well! 

Would you be interested in participating in this event? If so, please register today as we have a limited number of tables available! 

Thank you for your support and for including our students in your recruitment plans. Meet the Industry Registration Link 

Save the Date: Digital Innovations in Today's Banking Environment Conference 

South Dakota Bankers Association is hosting the 2022 Digital Innovations in Today's Banking Environment Conference at the Hilton Garden Inn South in Sioux Falls, S.D. on Wednesday, August 31, 2022. More information will be shared soon at this link

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We have an instance where a customer is wanting to open a benefit account for a fellow church member whose wife has recently become ill. His initial intention was to set the account up under his name and tax ID information and he would direct the funds to the individuals. However, our institution does not typically open these types of accounts and we're hoping for recommendations and/or what is consistent in the banking industry for these types of benefit accounts.


There are several methods that may be used when opening these types of accounts:

A simple trust can be drafted, and an account can be opened in the name of the trust. Treat the account as you would treat any account opened under an irrevocable trust agreement.

An account opened in the name of the persons to be benefitted. Treat the account as you would treat any individual/single-party or joint/multiple-party account. The victim(s) must be authorized to transact on the account.

An organization actively involved in the process of assisting the family may be willing to open an account in the name of the organization into which the collected funds will be deposited. For example, a local church or other charitable organization assisting the victim(s) may be willing to open and administer the account. Treat the account as you would treat any account opened by an organization.

The three methods described above are the only practical methods which should be considered. However, there are some banks that allow customers to open these types of accounts as informal trust, such as “FBO” or “ITF” accounts. If the bank will consider this, please note the following:

Treat the account as you would any individual/single-party or joint/multiple party account with a POD.

The person establishing the account is the owner of the account and the victim is the designated beneficiary. This means that the funds given to the victim to establish the account will not belong to the victim once deposited into this type of account.

Ownership passes at the death of the account owner to the victim.

If the victim dies, the funds do not pass to his/her estate. The funds belong to the owner of the account.

Checks made payable to the victim should not be deposited into this type of account, unless the victim properly endorses the check.

The owner’s TIN is used for IRS and CIP purposes.  

In addition, Compliance Alliance has a thorough cheat sheet regarding benefit and memorial accounts, here

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 [email protected] and ask for our Membership Team.

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

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Contact Haley Juhnke, SDBA, at 605.224.1653 or via email.

CFPB targets credit card fees