SDBA To Hold Virtual Bank Technology Conference

Photo of TechnologyRegistration is now open for the SDBA's Virtual Bank Technology Conference to be held Sept. 9-10. In light of the current COVID situation, this conference is being offered virtually via Zoom to allow participation in a safe manner. 

The conference is designed to provide support as you keep on top of technology trends and scams, navigate the business of banking, and build and sustain your bank’s technology strategy. Join host and emcee, Trent Fleming, as we discuss timely technology topics that can help you as you make decisions that impact your bank, your staff and your customers. 

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Steve Hayes Named to FDIC Advisory Committee on Community Banking

Photo of Steve HayesSteve Hayes, president and CEO of Dakota Prairie Bank in Fort Pierre, is one of three new appointments to the FDIC's Advisory Committee on Community Banking.  The other new members are Teri Messerschmitt, South Ottumwa Savings Bank, Ottumwa, Iowa, and Patty Mongold, Mt. McKinley Bank, Fairbanks, Alaska. 

Established in 2009, the Advisory Committee shares input with the FDIC on a broad range of community bank policy and regulatory matters. Committee members represent a cross-section of community bankers from around the country.

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ABA 'Unconventional Convention' Scheduled for October 19-20

Registration is now open for ABA’s first-ever Unconventional Convention—a new virtual event taking place Oct. 19-20 that brings together live and on-demand content for bankers to help excel in their field, collaborate and strategize and plan for the challenges ahead. The Unconventional Convention will feature dedicated sessions for bank marketers, CFOs and operations professionals, agricultural bankers and CEOs, as well as sessions with a fintech and payments focus.‌

Keynoting the convention this year will be Federal Reserve Vice Chairman Rich Clarida, agricultural economist David Kohl and CNN political analyst Bakari Sellers. Additional keynote speakers will be announced in the coming days. ‌

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ABA Unveils New Diversity, Equity and Inclusion Webpage

To help banks’ ongoing work to enhance diversity, equity and inclusion within their workforce, ABA has launched a new DEI page on aba.com. The page includes several new resources, including tips for recruiting and retaining a diverse workforce, as well as new videos geared toward increasing board diversity.

Bankers can also find the latest DEI news and resources, read ABA’s response to the national conversation on racial justice and inequity, access training and events on DEI topics and view examples of what banks of all sizes are doing and saying about diversity, equity and inclusion. View the webpage

ABA Calls on Bankers to Support PPP Forgiveness Legislation

The ABA is urging bankers to contact their lawmakers and urge them to support legislation that would significantly streamline the forgiveness process for loans made through the Small Business Administration’s Paycheck Protection Program. 

The PPP Small Business Forgiveness Act, a bipartisan Senate bill, would allow PPP loans of $150,000 or less to be forgiven once the borrower completes a one-page forgiveness attestation. The bill is expected to ease the forgiveness process for approximately 86% of PPP borrowers, in addition to saving an estimated $7 billion and hours of paperwork.

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USDA Seeks Applications to Support Working Capital for Rural Businesses, Ag Producers

The Coronavirus Aid, Relief and Economic Security (CARES) Act passed by Congress authorized nearly $1 billion in additional loan guarantee authority for the U.S. Department of Agriculture and created the Business and Industry (B&I) CARES Act Program. 

For the first time, agricultural producers may access this program if they are ineligible for financing from USDA’s Farm Service Agency. Any loan guaranteed by the B&I CARES Act Program must be used as working capital to prevent, prepare for or respond to the effects of the coronavirus pandemic.

Fed Publishes Partial State-by-State List of MSLP Lenders

The Federal Reserve yesterday unveiled an interactive state-by-state map listing lenders participating in the Main Street Lending Program that have chosen to be listed and are currently accepting applications from new customers. MSLP registered lenders that wish to be added to the Federal Reserve Bank of Boston’s list can email [email protected]. The Boston Fed will update the listing regularly as new lenders complete the registration process and elect to be included on the map.

Under the MSLP, businesses may apply for funding through a registered lender, which will then determine eligibility using its own underwriting criteria. The Fed will purchase up to 95% of MSLP loans made through its MSLP facility. Lenders will retain the other 5%. Read more and view the list. For more information, contact ABA’s Shaun Kern or Hu Benton.

SBA Releases Data on PPP Borrowers and Loans

The Small Business Administration (SBA) on Monday released public data on Paycheck Protection Program (PPP) participants, including borrowers and lenders, as of June 30.

For loans $150,000 and above, SBA disclosed the name and location of the business receiving the loan, the number of employees benefiting, the name of the lender, the congressional district of the borrower and a range where the loan amount falls. For loans below $150,000, SBA did not release borrower names but did include precise loan amounts. The public data set did not include information on PPP loans that were canceled.

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Fed Launches Task Force to Address Coin Shortages During Pandemic

The Federal Reserve announced on Tuesday that it is forming a task force to address the issue of low coin inventories during the coronavirus pandemic—an issue that several ABA members have raised in recent days. The task force—which includes representatives from the Fed, the U.S. Mint, armored carriers and several industry stakeholders including ABA—will work to identify and implement potential solutions to reduce these disruptions. The task force will hold its first meeting in early July, with the goal of creating its first set of recommendations by the end of the month.

With many physical retail businesses and other firms closed during the pandemic, the Fed noted that the coin supply chain has seen significant disruption in recent days. “The Federal Reserve is working on many fronts with our industry partners, including the U.S. Mint, to minimize supply constraints and maximize coin production capacity,” the Fed noted. “We are encouraging depository institutions to order only the coin they need to meet near-term customer demand and to remove barriers to customer coin deposits.” Read more . For more information, contact ABA’s Steve Kenneally.

Mike Klumpp and Jesse Block Appointed to SDBA Board of Directors

Mike Klumpp, Citibank, Sioux Falls, and Jesse Block, First Fidelity Bank, Platte, have been appointed to the SDBA Board of Directors. The SDBA is the professional and trade association for South Dakota’s financial services industry and helps educate, advocate and grow a diverse mix of financial institutions throughout the state.

Mike Klumpp
Photo of Mike KlumppAs site president for Citibank in Sioux Falls, Mike Klumpp is responsible for driving and executing site governance, people strategy, site culture and community involvement. A native of northwest Iowa, Klumpp earned a finance degree at Iowa State University prior to joining Citi in 1988 as a financial analyst. He has served in a variety of managerial roles in security operations and fraud prevention and, in addition to his role as site president, is currently the director of control for Citi’s Global Consumer Bank Fraud Prevention group.

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Steve Bumann, Kristina Schaefer, David Bangasser and Shawn Rost Elected as SDBA 2020-2021 Officers

The South Dakota Bankers Association (SDBA), the professional and trade association for South Dakota’s financial services industry, elected officers for its 2020-2021 Board of Directors. The SDBA is honored to have the following individuals serve as officers:

  • Chair: Steve Bumann, CFO, BankWest, Inc., Pierre
  • Chair-Elect: Kristina Schaefer, General Counsel & Chief Risk Officer, First Bank & Trust, Sioux Falls
  • Vice Chair: David Bangasser, Southern Region President, Dacotah Bank, Sioux Falls
  • Immediate Past Chair: Shawn Rost, South Dakota Market President, First Interstate Bank, Rapid City

The official election took place at the SDBA’s Annual Business Meeting held virtually on June 9. The term for the new officers is effective now through next year’s Annual Business Meeting.

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SBA: 4.7 Million PPP Loans Made as of June 20

Lenders nationwide had made approximately 4.7 million PPP loans totaling $515 billion as of last Saturday, SBA reported over the weekend. Forty-four percent of all PPP loans were made by lenders with less than $10 billion in assets, 19% were made by institutions with $10 billion to $50 billion in assets, and 37% were made by institutions with more than $50 billion in assets. The overall average loan size was $110,000.

The data also included an updated list of the top 15 PPP lenders. The top five PPP lenders were JPMorgan Chase, Bank of America, PNC, Truist and Wells Fargo. With the PPP program now in its final days before the program expires on June 30, approximately $128 billion was still available as of the report date. Read more.

Financial Regulators Issue Examiner Guidance for Assessing COVID-19 Effects

Recognizing the significant and long-lasting effects of the coronavirus pandemic on financial institutions, federal and state financial regulators on Tuesday issued joint guidance for how examiners should assess the effects of COVID-19 on the safety and soundness of banks and credit unions. The guidance directs examiners to assess institutions according to existing agency policies and procedures and to consider the appropriateness of management actions to address COVID-19 challenges. It provides specific instructions for examiners when considering an institution’s risk assessment, capital adequacy, asset quality, management actions, earnings, liquidity and market risk sensitivity.‌

“Examiners should assess the reasonableness of management’s actions in response to the pandemic given the institution’s business strategy and operational capacity in the distressed economic and business environment in which the institution operates,” the agencies said. “When assigning the composite and component ratings, examiners will review management’s assessment of risks presented by the pandemic, considering the institution’s size, complexity and risk profile.”

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SDBA Announces Retirement of President Curt Everson

Curt EversonThe South Dakota Bankers Association (SDBA), the professional and trade association for South Dakota’s financial services industry, is announcing the impending retirement of its president, Curt Everson.

Following 20 years of service in state government, Everson has led the 136-year-old Association since September of 2002. The role of the SDBA, located in Pierre, S.D., is to help educate, advocate and grow a diverse mix of financial institutions throughout the state.

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SDBA Holding Photo Contest for 2021 Scenes of South Dakota Calendar

The SDBA is pleased to offer the 2021 Scenes of South Dakota Calendar, which will feature photos of South Dakota submitted by South Dakota bankers, their family members and customers.

If you or one of your bank’s employees, a relative or customer are an amateur photographer and would like the opportunity to have your creativity displayed in homes and businesses across the state, send the SDBA your photos of farms, barns, agricultural activities, historical South Dakota locations, county fairs, carnivals, parades or festivals, fall colors, winter snowfalls, spring flowers, summer fun, etc.

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SBA Streamlines PPP Forgiveness Application for Many PPP Borrowers

The Small Business Administration yesterday released a three-page “EZ” Paycheck Protection Program loan forgiveness application requiring less documentation and fewer calculations than previously required. Form 3508EZ applies to borrowers who meet any one of these three criteria:

  • Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
  • Did not reduce salary or wages for any employee by more than 25% and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
  • Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.

The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers. SBA also updated the regular Form 3508 to reflect recent changes made by Congress in the PPP Flexibility Act and issued a new interim final rule that implements changes made by the PPPFA.

SDBA Virtual Ag Credit Conference Starting Next Week

There is still time to register for the SDBA's Virtual Ag Credit Conference, which starts next week. The virtual event will be held as a series of four webinars on June 24 and July 1, 8 and 15 from 10-11 a.m. CDT. 

Don’t miss this opportunity to hear from experts on the economy, markets, technology and policy. The lineup is:

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ABA: Banks Must Be 'Part of the Solution' to Addressing Racial Inequities

In a joint message to ABA member bank CEOs yesterday, ABA Chair Laurie Stewart and President and CEO Rob Nichols addressed the killing of George Floyd and other recent instances of racial injustice and inequity that have taken place across the nation and shared how the Association intends to respond.

Stewart and Nichols acknowledged that “unacceptable racial disparities in health, wealth, income, education and other measures of opportunity continue to grow,” noting that black and Hispanic Americans have been disproportionately affected by the coronavirus pandemic and subsequent economic downturn. “We cannot look away from these facts, we cannot declare them someone else’s problem, we cannot fail to engage,” they said. “We must be part of the solution.”

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USDA Rural Development to Hold Business & Industry CARES Act Program Webinar

The Coronavirus Aid, Relief and Economic Security (CARES) Act passed by Congress authorized nearly $1 billion in additional loan guarantee authority for the U.S. Department of Agriculture and created the Business and Industry (B&I) CARES Act Program. 

For the first time, agricultural producers may access this program if they are ineligible for financing from USDA’s Farm Service Agency. Any loan guaranteed by the B&I CARES Act Program must be used as working capital to prevent, prepare for or respond to the effects of the coronavirus pandemic.

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Bankers Take Part in SDBA Virtual Annual Business Meeting, FDIC Town Hall

Photo of Shawn RostMore than 100 member bankers and business partners took part in the Association's Virtual Annual Business Meeting on Tuesday. The meeting is traditionally held during the SDBA/NDBA Annual Convention, which was canceled due to the pandemic.

The Annual Business Meeting's agenda included the election of SDBA officers, comments from the outgoing and incoming SDBA chairs, an association update from SDBA President Curt Everson and a South Dakota Bankers Foundation update from Halley Lee.

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