SDBA eNews

July 28, 2022

Registration Open for SDBA Introduction to HSAs Webinar - Thursday, August 25

Health Savings Accounts (HSAs) are a popular health care option for employers offering coverage to employees and individuals/families not covered by employer-sponsored health care benefits. Financial institutions are beginning to see more complex transactions due to increased customer activity. This activity requires personnel to review their existing HSA procedures to ensure transactions are handled properly. This program also provides a solid foundation of operational and compliance issues associated with providing HSAs to customers, including opening, maintaining and distributing procedures.

The webinar will be held at 10:00 a.m. CDT on August 25 via Zoom. New bankers, personal bankers and tellers would benefit from attending this webinar.

To register or find more information click here.

Registration Open for 2022 SDBA Digital Innovations Conference - Wednesday, August 31

Registration is OPEN for the 2022 SDBA Digital Innovations Conference (formerly Technology Conference), held in Sioux Falls at the Hilton Garden Inn South on Wednesday, August 31! Technology and innovation have been transforming the financial services industry since long before artificial intelligence and iPhones, and your role as a professional in the bank is ever-changing, especially in today’s environment. This conference is designed to provide you support while you keep on top of technology trends, navigate the business of banking, and build and sustain your bank’s technology strategy—all to improve access and better serve your customers. We hope this conference will provide you with an opportunity to learn from industry experts, network with colleagues, and visit with exhibitors to see and experience the latest in products and services. Click here to read more and to register.

Registration Open for SDBA Lead Strong: Women in Banking Conference - September 13-14

Join us Sept. 13-14, in Sioux Falls for the Lead Strong: Women in Banking Conference. SDBA’s Women in Banking event is designed to educate, enlighten and engage ALL levels of bankers within your organization. From cybersecurity, leadership and trends in banking, this program will provide personal development, professional development, and networking opportunities for all attendees. 

Our service project this year will benefit Sleep in Heavenly Peace. All children deserve a safe, comfortable place to lay their heads. Across the U.S., too many children go without a bed - or even a pillow - to sleep on. These children end up sleeping on couches, blankets, and even floors. This can affect their happiness and health. That’s where Sleep in Heavenly Peace (SHP) comes in. SHP is a group of volunteers dedicated to building, assembling and delivering top-notch bunk beds to children and families in need.

Join us this year as we help support Sleep in Heavenly Peace by bringing a donation of twin sized sheets, comforters, blankets and pillows (cash donations are also appreciated!) Let’s make sure these children can sleep in heavenly peace!

Click here to register or view more information.

Registration Open for 2022 IRA School - September 27-29

The SECURE Act impacts two main topics: RMDs and death distributions. The SDBA’s 2022 IRA School on Sept. 27-29 will be offered in person in Sioux Falls, and will address these relevant changes. In addition, IRAs are one of the most complicated areas of bank personnel responsibility, and it is not possible to learn and understand everything. Continual education is necessary to ensure confidence. Working with IRAs is a process and must start with a strong foundation. This school can provide this foundation through a comprehensive curriculum.

IRA School will be held in Sioux Falls at the Clubhouse Hotel & Suites, September 27-29, 2022. Click here to register and review the full itinerary. 

Report: Financial services most impersonated industry in phishing scams

Scammers are increasingly impersonating financial services companies as they seek to trick unsuspecting computer users into divulging sensitive information through phishing emails and websites, according to a report released today by cybersecurity firm Vade.

Financial services overtook cloud services as the most impersonated industry in phishing attempts in 2021, Vade said in its most recent year-in-review of phishing scams. Fake websites and emails claiming to be from financial service providers accounted for 35% of all phishing attempts tracked by the company during the year. By comparison, the sector accounted for 29% of phishing attempts in 2020.

Vade attributed the increase to the effects of the COVID-19 pandemic on global economy, with business and individuals taking advantage of government-backed business loans as well as payment deferrals or “holidays” from consumer banks and credit unions. As those payment moratoriums expired in 2021, the bills came due. “This is a significant weapon for phishers to wield against businesses and individual citizens who borrowed or deferred,” Vade said in the report.

Still, when it came to individual businesses, Microsoft and Facebook were the most imitated companies by phishers. Vade also reported that 78% of phishing emails were sent during weekdays, with Mondays and Tuesdays being the most popular days for the scams.

To help banks educate consumers about how to recognize phishing attempts from scammers pretending to be their bank, ABA provides free resources through its popular campaign, #BanksNeverAskThat.

CISA News: Energy Grid Attacks

We are not immune to these types of attacks in South Dakota. If you see something, say something. Click here to read the full story.

Fed raises interest rates for fourth time this year

The Federal Reserve raised interest rates by three-quarters of a percentage point to a target range of 2.25% to 2.5%, the Federal Open Market Committee announced today. The committee added that it anticipates that ongoing increases in the target range will be appropriate, with Fed Chairman Jerome Powell saying that another “unusually large” increase could come during the FOMC’s September meeting.

Today’s announcement marks the fourth time the Fed has raised rates this year. FOMC also announced it will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. “Recent indicators of spending and production have softened. Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low,” the statement said. “Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.”

The Fed said the war in Ukraine and related events are creating additional upward pressure on inflation and are weighing on global economic activity. During a news conference, Powell acknowledged that the rapid pace of inflation has come as a surprise and more economic surprises could be in store. The committee “will strive to avoid adding uncertainty in what is already an extraordinarily challenging and uncertain time.”

“We are highly attentive to inflation risks and determined to take the measures necessary to return inflation to our 2% longer-run goal,” Powell said. “This process is likely to involve a period of below-trend economic growth and some softening in labor market conditions. But such outcomes are likely necessary to restore price stability and to set the stage for achieving maximum employment and stable prices over the longer run.”

Order your 2023 Scenes of South Dakota Calendars!

Thank you to everyone who submitted photos for the 2023 Scenes of South Dakota calendars! There's still time to submit your photos for consideration (deadline is July 31)! We are now accepting orders for the calendars, too. Click here to put your order in. Orders will be accepted until September 1.

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Q. For a TRID construction loan disclosed as two transactions, what should we disclose as the interest rate if it’s variable we don’t know what the rate will be during the permanent phase?

A. If it will have an adjustable rate and the rate is unknown when the Loan Estimate is provided, the bank should disclose the fully-indexed rate, which is the rate calculated using the index and margin at the time of consummation. If the index and margin that will be in effect at consummation must be provided, the fully-indexed rate disclosed may be based on the index in effect at the time the disclosure is delivered.

“1. Interest rate at consummation not known. Where the interest rate that will apply at consummation is not known at the time the creditor must deliver the disclosures required by § 1026.19(e), § 1026.37(b)(2) requires disclosure of the fully-indexed rate, defined as the index plus the margin at consummation. Although § 1026.37(b)(2) refers to the index plus margin “at consummation,” if the index value that will be in effect at consummation is unknown at the time the disclosures are provided under § 1026.19(e)(1)(iii), i.e., within three business days after receipt of a consumer's application, the fully-indexed rate disclosed under § 1026.37(b)(2) may be based on the index in effect at the time the disclosure is delivered. The index in effect at consummation (or the time the disclosure is delivered under § 1026.19(e)) need not be used if the contract provides for a delay in the implementation of changes in an index value. For example, if the contract specifies that rate changes are based on the index value in effect 45 days before the change date, creditors may use any index value in effect during the 45 days before consummation (or any earlier date of disclosure) in calculating the fully-indexed rate to be disclosed. See comment app. D-7.iii for an explanation of the disclosure of the permanent financing interest rate for a construction-permanent loan.”
Comment 37(b)(2): 

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