Early Registration Deadline Nearing for Tri-State Trust Conference

Trust officers from three states will gather virtually to learn from experts and one another at the 2021 Tri-State Trust Conference on April 28-29. The early registration deadline to receive a welcome gift is Thursday, April 1. The final deadline to register is April 21. 

Keynote sessions include "Two Timely Retirement Planning Topics" by Sharon Carson with J.P. Morgan, "Economic Assessment and Fixed Income Outlook" by Linda Duessel with Federated Hermes, "Point of View: The Economy, Markets and Investment Strategy" by Fritz Meyer with Point of View and "2021 Tax and Estate Planning: What to Tell Clients Now" by Martin Shenkman with Shenkman Law.

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ABA Urges Bankers to Oppose NCUA CUSO Proposal

The ABA is calling on bankers to write to the National Credit Union Administration (NCUA) to oppose a proposed rule that would expand the range of permissible lending activity for credit union service organizations (CUSO). The proposed rule would allow CUSOs to originate any type of loan a federal credit union may originate, including auto and payday loans.

The proposal also seeks comment on broadening federal credit unions’ investment authority in CUSOs. As CUSOs may serve people who are not members of a credit union, the expanded authority would undermine credit union field-of membership restrictions.

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House Lawmakers Reintroduce Bill to Leverage Playing Field Between Banks, FCS

Reps. Ron Kind (D-Wis.) and Randy Feenstra (R-Iowa) last week introduced the ABA-backed Enhancing Credit Opportunities in Rural America (ECORA) Act. The bill, H.R. 1977, would end the taxation of interest earned from agricultural real estate loans.

This would not only reduce servicing costs for community banks providing these types of loans, it would also level the playing field between banks and the tax-advantaged Farm Credit System—making it easier for banks to support the farm sector through real estate loans. The ECORA Act was introduced during the prior Congress.

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Application Deadline Nearing for Bankers Foundation Named Scholarships

The South Dakota Bankers Foundation annually offers five named scholarships awarded directly to college students who are pursuing a career in banking or finance. Applicants must be a junior entering their senior year of college during the 2021-2022 school year. 

  • $4,000 Alan M. Graff Scholarship
  • $3,000 David S. Birkeland Scholarship
  • 3,000 Herman Lerdal Scholarship
  • $3,000 Joyce Hazeltine Scholarship
  • $1,500 Deb Gates Scholarship

The deadline to apply is Friday, March 26, 2021. Scholarship application form.

Recording Available of SDBA Cannabis/Hemp Banking 101 Webinar

After a flurry of activity surrounding cannabis during the 2021 Legislative Session, medical marijuana will become legal on July 1, 2021. Is your organization ready to bank the industry?

The SDBA hosted the Cannabis/Hemp Banking 101 Webinar on Jan. 20-21, 2021. If you were not able to take part and are now looking for more information, the SDBA is extending the invitation to watch the recorded webinar. To see session details, click here. To purchase the recorded webinar for $275 and request the link to watch it, click here.

FDIC Report Highlights Continued Strength of Farm Banks

Farm banks have held up well despite challenges to the agriculture industry since 2014, and problem loan levels have remained modest, according to a new report from the FDIC.

Cautious real estate lending during a boom in farmland values has given farm banks the flexibility to work with financially stressed borrowers by tapping into their farmland equity, according a new report published in the FDIC Quarterly.

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Learn About Obstacles and Opportunities of Banking Marijuana-Related Businesses

 While marijuana remains illegal at the federal level, many states have now legalized its use in some form. This trend brings both opportunities and obstacles for banks and other financial institutions looking to provide financial services to marijuana-related businesses.

Join Snell & Wilmer attorneys Judith Lajoie and Morgan Hicks on Wednesday, March 31, as they present on the current state of cannabis law and its impact on financial institutions. Hosted by the Colorado Bankers Association, the webinar will be held at 10 a.m. CDT. 

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Marco to Hold Webinar on SolarWinds Orion Attack

Like water, attackers flow to where the cracks are in your network defenses. As a result, IT professionals should accept an attack as inevitable and plan for when, not if, a breach will occur. This is the assume breach mentality.

On Wednesday, March 24,  at noon CDT, Marco’s security professionals will unpack the recent SolarWinds Orion attack. The far-reaching SolarWinds Orion attack has catapulted supply chain security vulnerabilities into the spotlight. Supply chain attacks are not new, but what made this one so different?

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Tri-State Trust Conference to Be Held Virtually

Trust officers from three states will gather virtually to learn from experts and one another at the 2021 Tri-State Trust Conference on April 28-29. Both days will include a morning session (9:30-11:30 a.m. CDT) and an afternoon session (1-3 p.m. CDT).

Keynote sessions include "Two Timely Retirement Planning Topics" by Sharon Carson with J.P. Morgan, "Economic Assessment and Fixed Income Outlook" by Linda Duessel with Federated Hermes, "Point of View: The Economy, Markets and Investment Strategy" by Fritz Meyer with Point of View and "2021 Tax and Estate Planning: What to Tell Clients Now" by Martin Shenkman with Shenkman Law.

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Dylan Clarkson Appointed to Minneapolis Fed Advisory Council

Photo of Dylan ClarksonSDBA Board of Director Dylan Clarkson, president and CEO of Pioneer Bank & Trust in Spearfish, was one of two community bank experts appointed to serve on the Federal Reserve Bank of Minneapolis' Community Depository Institutions Advisory Council (CDIAC). 

Clarkson and Jenny Hosfeld, president and chief banking officer of Think Bank in Rochester, Minn., join nine other members of the Community Depository Institutions Advisory Council. Emily Hofer, CFO/director of Merchants State Bank in Freeman, also serves on the council. 

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Nichols Calls for Scrutiny of Chartering 'Loopholes' for Nontraditional Financial Firms

In an American Banker op-ed yesterday, ABA President and CEO Rob Nichols urged the Federal Reserve to “take a very careful look” at the risks posed by nontraditional financial firms including cryptocurrency companies looking to gain access to the payments system.

“These entities see the value in getting access to Federal Reserve payments systems like the Fedwire Funds Service and the Automated Clearinghouse Network but do not want to play by the same rules as traditional banks,” Nichols wrote, referencing a current movement in states and within the OCC to broaden the definition of entities eligible to receive a bank charter. “Finding chartering authorities that are willing to redefine what it means to be a bank introduces risks to the financial system’s safety and soundness, consumer protection laws and international reputation."

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SBA Adjusts PPP Payroll Calculation for Form 1040, Schedule C Filers

The Small Business Administration yesterday issued an interim final rule implementing recent changes to the Paycheck Protection Program. The IFR allows individuals who file an IRS Form 1040, Schedule C to calculate their maximum loan amount using gross income. SBA has issued updated forms for borrowers and lenders reflecting these changes and step-by-step loan amount calculations.

Previously, PPP rules defined payroll costs for individuals who file Form 1040, Schedule C as payroll costs (if employees exist) plus net profits, which is net earnings from self-employment. This formula effectively excluded many sole proprietors from obtaining PPP loans, particularly those with very little or negative net profit.

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Biden Administration Announces Measures to Target PPP Loans to Smallest Firms

The White House on Monday announced several measures to ensure the smallest firms have access to Paycheck Protection Program loans, including an exclusive application window for firms with fewer than 20 employees, a revised loan calculation and funding set-aside for sole proprietors and self-employed individuals and new eligibility for businesses owned by those with certain felony convictions. Five weeks after the PPP reopened, roughly $150 billion—more than half of the amount authorized for the 2021 round of PPP—remains available. The current round of funding expires on March 31.

Specifically, the White House said that the Small Business Administration would:

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FinCEN Issues Advisory on Economic Impact Payment Fraud

The Financial Crimes Enforcement Network yesterday issued an advisory alerting banks to economic impact payment fraud. The advisory describes EIP fraud, associated red flags and how to report suspicious activity.

Authorities have detected a wide range of EIP-related fraud, according to the advisory, including fraudulent checks, theft of EIPs and phishing schemes using EIPs as a lure where fraudsters use emails, letters and phone calls about the payments to get personal information like account numbers and passwords.

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SDBA Seeking Candidates for 2021 Board Elections

Elections for the SDBA’s Board of Directors are scheduled for April. Three seats are up for election: Group II, Small Community Bank Category, and Large Community & Regional Bank Category.

The Group II seat is currently held by Jeff Davis, Bryant State Bryant, Bryant, and the Small Community Bank seat is currently held by Brad Seaman, BankNorth, Aberdeen. Both have served two consecutive, three-year terms and are not eligible to run for re-election. The Large Community & Regional Bank seat was previously held by David Bangasser, Dacotah Bank, Sioux Falls, who is now serving as SDBA vice chair.

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Financial Trade Groups Offer Recommendations to Improve EIPs

As lawmakers consider a new round of direct payments as part of a new COVID-19 relief package, ABA and six other financial trade associations last week offered recommendations to the Treasury Department for improving the economic impact payments (EIPs) process.

The groups urged Treasury to implement steps to improve the accuracy of information used to create payments files, increase the use of electronic payments, improve communication with both EIP recipients and industry partners and address issues related to EIPs being used to reduce debts. The groups also urged Treasury to meet with industry stakeholders to discuss the recommendations before future rounds of EIPs.

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Quad States Convention Sponsorship, Advertising Information Available

2021 Quad States Convention: A New DirectionAs we REIMAGINEREINVENT and REVOLUTIONIZE in A NEW DIRECTION at the 2021 Quad States Convention on June 14-15 at The Monument (former Rushmore Plaza Civic Center) in Rapid City, S.D., the SDBA invites its business partners to explore the ways that they can participate and connect with attendees.

Due to the ongoing COVID-19 pandemic, we have made the decision to forgo the exhibit hall for 2021. Instead, the SDBA invites you to consider sponsoring, which offers a multitude of benefits to your organization. If a sponsorship doesn’t fit with your organization’s plans, we invite you to register to attend as a participant and connect with bankers through a variety of socially-distanced networking opportunities such as meal functions, breaks, golf and outings, or to explore advertising opportunities. View sponsorship and advertising details

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South Dakota Division of Banking Issues Industrial Hemp Guidance

The South Dakota Division of Banking on Tuesday issued guidance to South Dakota state-chartered banks and licensed money lenders that have customers engaged in industrial hemp growth, production and transportation in South Dakota.

Prior to offering financial services to these customers, the guide states that an institution must have appropriate risk management practices in place, including: 

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Noem Announces Plan to Implement Medical Marijuana, SDBA Supports Bill to Allow Banking of Cannabis

Gov. Kristi Noem and leadership in both chambers of the South Dakota Legislature yesterday announced a plan to implement medical marijuana in South Dakota (Initiated Measure 26). 

“We are working diligently to get IM 26 implemented safely and correctly,” said Gov. Noem. “The feasibility of getting this program up and running well will take additional time. I am thankful to our legislative leaders for helping make sure that we do this right.”

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South Dakota Banks Make a Difference in Our Communities

South Dakota Banks Make a Difference Survey The SDBA unveiled the results of its annual South Dakota Banks Make a Difference Survey during the SDBA State Legislative Day held virtually yesterday. Each January, the SDBA surveys the state’s banks on the ways they support their local communities. The annual project is just a glimpse of how these banks found creative ways to meet the needs of their communities during 2020.

The promotional handout  is a great tool that banks can use to promote all of the things they do for their communities. Banks are encouraged to use the document in their promotional efforts, make copies as needed and link the document on their websites. Download a high-resolution copy for printing.

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