OCC Announces Policy Shift on Small-Dollar Lending

Signaling a significant shift in the OCC’s approach to small-dollar lending, the agency yesterday issued a bulletin encouraging banks to make “responsible short-term, small-dollar installment loans, typically two to 12 months in duration with equal amortizing payments” to help meet the credit needs of their customers. 

The bulletin does not define how banks should underwrite small-dollar loans, but notes that small-dollar lending programs should be consistent with safe and sound banking practices, include an effective risk management framework and be underwritten based on reasonable policies and practices, which may include analysis of internal and external data sources such as the borrower’s deposit activity with the bank. It also calls for banks to report repayment activity of small-dollar loan customers to the credit bureaus to help borrowers improve their credit scores. 

ABA has long called on regulators to remove barriers that impede banks from making small-dollar loans, highlighting in a white paper to the Treasury Department last year that there is a genuine consumer need for small-dollar credit. “Today’s bulletin is a step in the right direction to help banks offer customers a variety of short-term credit products,” said ABA SVP Virginia O’Neill. “We appreciate that the principles outlined in the bulletin are not prescriptive and encourage banks to design their own underwriting and product features that promote access and treat customers fairly.” 

ABA also welcomed the OCC’s willingness to work with the Consumer Financial Protection Bureau as it undertakes a review of its final payday lending rule, which establishes “ability-to-repay” requirements for single-payment loans and loans with a term of 45 days or less. “We look forward to working with these agencies to remove regulatory impediments that stand in the way of banks’ ability to meet consumers’ short-term credit needs,” O’Neill added. “Allowing banks to innovate will lead to more diverse products and greater consumer choice.” Read the bulletin. For more information, contact ABA's Virginia O’Neill

Annual Convention Early Registration Deadline Extended

2018 NDBA/SDBA Annual Convention

Have you been trying to decide whether to attend the NDBA/SDBA Annual Convention in Fargo on June 10-12. Of course you should! Where else would you enjoy a great program, lots of activities and the chance to connect with more than 350 bankers and business partners?

And here's another incentive to send your registration in today--you will save money. The early registration had been extended until Friday, May 25.

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Update or Create Profile with SDBA

In an effort to stay connected with our member bank employees, the SDBA is asking people to review their contact information on file with the Association. If you don't have a profile set up with the SDBA, we encourage you to do so.

There are a number of benefits of having an SDBA profile, such as receiving notification of our training and events and the ability to register online. The SDBA also provides a number of electronic publications that you can sign up to receive, such as the weekly SDBA eNews, monthly South Dakota Banker Magazine, Education Update, Regulatory Report, and Legislative Update and Bill Watch during the South Dakota State Legislature. Member bank employees can also sign up to receive protective alerts issued by the SDBA. 

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SDBA Unveils New Logo

SDBankers Association: Educate. Advocate. Grow

Educate. Advocate. Grow. This is the message of the SDBA's new logo.

As the SDBA works to engage the next generation of emerging bank leaders, inspire people to get involved and develop new programming such as the Lead Strong: Women in Banking Conference, staff decided it was time for a new look for the Association. The SDBA hired Epicosity, an ideas company from Sioux Falls and SDBA associate member, to design a new logo and position statement. 

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Seats Remain for 2018 Experienced Ag Bankers School

A few spots still remain for the National School for Experienced Ag Bankers June 25-29 in Spearfish. 

Sponsored by the SDBA, the school targets ag bankers with a strong knowledge of financial analysis in ag banking who desire further training analyzing and troubleshooting more complex and problem credits. Three to five years of banking experience is recommended. The school is also beneficial for ag loan officers, credit analysts, credit reviewers, regulators and FSA loan officers. 

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Ryan Confirms House Will Vote on S. 2155

The House will vote on S. 2155, the bipartisan financial regulatory reform bill advanced by the Senate in March, while the Senate will take up a set of additional reform bills passed by the House Financial Services Committee, according to an agreement announced by House Speaker Paul Ryan (R-Wis.) on Tuesday. Both Ryan and House Majority Leader Kevin McCarthy have previously signaled that the House could pass the bill in May, but Ryan offered no further comments on the timing of a vote.

“We’ve got an agreement to be moving different pieces of legislation,” Ryan said. “So we will be moving [S. 2155]. We’re also going to be moving in the Senate a package of bills that we think will actually add to this that the Financial Services Committee has acted on as well.” The House Financial Services Committee has passed numerous standalone measures by substantial bipartisan majorities.

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Court Rebuffs Efforts to Appeal Decision Vacating Fiduciary Rule

The Fifth Circuit Court of Appeals yesterday blocked third-party efforts to appeal its March ruling that vacated the Department of Labor’s fiduciary rule in its entirety. A group of state attorneys general and AARP had filed petitions to be granted standing to appeal the decision. DOL declined to appeal the ruling by the April 30 deadline, making it highly unlikely that the Fifth Circuit ruling will now be overturned.

The rule, which was finalized under the Obama administration, had greatly expanded the definition of “fiduciary” under the Employee Retirement Income Security Act and the Internal Revenue Code. The rule required banks and other financial institutions to reassess whether and how they will continue to market and sell their retirement products and services to employee benefit plans and to individual retirement accounts.

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David Bangasser, Dylan Clarkson, Jeff Davis and Brad Seaman Elected to SDBA Board of Directors

The South Dakota Bankers Association (SDBA), the professional and trade association for South Dakota’s financial services industry, recently held elections for four of the nine seats on its Board of Directors. Elected to serve on the SDBA Board of Directors were:

  • David Bangasser, Southern Region President, Dacotah Bank, Sioux Falls
  • Dylan Clarkson, President/CEO, Pioneer Bank & Trust, Belle Fourche
  • Jeff Davis, President/CEO, Bryant State Bank, Bryant
  • Brad Seaman, President, First State Bank of Warner, Aberdeen

This is Clarkson’s first term on the SDBA Board of Directors and Bangasser, Davis and Seaman’s second terms. They started their three-year terms on May 1, 2018.

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SDBA to Hold First Women in Banking Conference

Lead Strong: Women in Banking

Save the date for Lead Strong: Women in Banking set for Oct. 2, 2018, at the Hilton Garden Inn South in Sioux Falls. The event is the SDBA's first one-day conference for women in banking. 

The day will include sessions on fierce female leadership, personal branding, and a panel discussion featuring four female bank leaders from across the state. Attendees will also hear from Laurie Stewart, 2017-2018 ABA Board of Directors vice chair and president and CEO of Sound Community Bank in Seattle, Wa.

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ABA Welcomes More Than 1,200 Bankers to Washington for GR Summit

SDBA President Curt Everson and Sen. Mike RoundsABA’s annual Government Relations Summit and several related programs began on Monday with more than 1,200 bankers in attendance. ABA Monday night kicked off its Mutual Community Bank Forum, which continued Tuesday, along with ABA's Emerging Leaders Forum. On Wednesday, ABA held its annual Women's Leadership Forum.

The formal GR Summit program opened on Tuesday morning with keynote presentations by Consumer Financial Protection Bureau Acting Director Mick Mulvaney, Sen. Mark Warner (D-Va.) and Reps. Blaine Luetkemeyer (R-Mo.) and Patrick McHenry (R-N.C.). Tuesday's agenda also included a session with senior personnel from the FDIC, OCC and Federal Reserve, as well as an advocacy update from a panel of ABA leaders.

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ABA, ICBA Write to Lawmakers in Support of 2018 Farm Bill

In a joint letter with the Independent Community Bankers of America on Tuesday, the American Bankers Association wrote to leaders of the House and Senate Agriculture Committees thanking them for their efforts to craft the 2018 Farm Bill. “Given the sharp reduction in the net farm income of more than 50 percent since 2013, a new Farm Bill is vital to the economic viability of our nation’s farmers and ranchers and our rural communities,” the associations said. 

Acknowledging that many changes are likely as the bill moves through Congress, ABA and ICBA noted their support for a strong and robust commodities title, protecting and improving the crop insurance program, and enhancements to and greater flexibility for the United States Department of Agriculture’s guaranteed farm loan programs. They also urged the committee not to consider any expansion for the Farm Credit System in the bill. Read the letter

Innovate, Inspire, Ignite at 2018 NDBA/SDBA Annual Convention

2018 NDBA/SDBA Annual ConventionAs the banking industry continues to evolve, there is increasing pressure on banks to remain competitive. To chart the course for the future, bankers must explore new pathways, seek innovative partners and motivate people--all while focusing on bottom-line performance.

The 2018 NDBA/SDBA Annual Convention on June 10-12 in Fargo will offer new ideas in new formats and an opportunity for all to engage in finding practical, real-world solutions for success in today's environment. Join with counterparts from the Dakotas for three days of learning, networking, fun and friendships. You'll go back to work with a refreshed perspective and a renewed passion for banking. 

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SDBA Seeking Bankers to Serve on Committees for 2018-2019

The SDBA will appoint standing committee members for the upcoming year in May. SDBA committees are: Agricultural Credit Committee, Credit Card Committee, Legislative Committee and Trust Committee. Committee terms are one year beginning May 1, 2018, and ending April 30, 2019, except for the Legislative Committee which is a three-year term. Legislative committee members can serve two, consecutive three-year terms.

As volunteers for the Association, those who serve on the SDBA's committees are contributing to a stronger banking industry. The SDBA respects the time commitment that each committee member has made and works hard to ensure the meetings are well run and productive. Committees meet once or twice a year to initiate activities and recommend policy. 

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Deadline to Apply for GSB Wisconsin Scholarship is April 25

The Graduate School of Banking (GSB) at the University of Wisconsin's 2018 school session will be held July 29 to Aug. 10 at the University of Wisconsin-Madison. Prochnow Educational Foundation/SDBA scholarships will be awarded to two South Dakota bankers attending the 2018 school.

The scholarship amount is $1,500 for each year of the student’s attendance (approximately one-third of the annual tuition fees), for a total value of $4,500. This scholarship is for people who will be entering their first year at GSB. The deadline to apply for the scholarship is April 25, 2018. View the scholarship application

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Registration Deadline Extended for Dakota School of Lending Principles

The deadline to register for the SDBA's Dakota School of Lending Principles has been extended to April 18, and the fee for late registrations will be waived.

Hosted by the SDBA and co-sponsored by the NDBA, the Dakota School of Lending Principles on April 24-27 in Aberdeen is a learning event with one foot grounded in the classroom and one foot in the bank. This school allows students to learn the theory and process of basic lending and then put this knowledge to work in actual nuts and bolts sessions. 

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Ag Bankers Working with the State's Producers, SDBA Ag Credit Conference to Start Next Week

Despite the cold, snowy weather, ag producers are getting ready to head into the fields as soon as they can. Ag bankers have been working with producers to help finance their operations this year, SDBA President Curt Everson recently told WNAX Radio. 

"There has been a considerable amount of restructuring going on of operating debt maybe current year or short-term operating loans being restructured into the longer-term debt just to try and create a little better cash flow situation for producers," Everson said. "So bankers have been working on those kinds of things customer by customer."

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Wells Fargo Moving 100 Aberdeen Jobs to Other States

Wells Fargo is moving 100 jobs from Aberdeen to cities in other states, including Minneapolis, according to The Associated Press. The decision affects auto finance workers and those in student loan collections.

Company spokeswoman Staci Schiller says the move over the coming months is designed "to meet the needs of customers and the marketplace." She says workers in Aberdeen who want to move with their jobs will be offered relocation assistance. Those who don't want to move will be given severance packages.

Other cities where jobs are being moved are in Arizona, Texas, North Carolina and Utah. The Aberdeen location is expected to close by the end of the year.

Early Deadline Nearing to Sponsor at 2018 Annual Convention

Banking business partners' knowledge, ideas and involvement help create a learning environment focused on the future of banking. The SDBA and NDBA's banking business partners are invited to join Dakota bankers June 10-12 at the Delta by Marriott in Fargo, N.D., to Innovate. Inspire. Ignite.

Information is available on sponsoring and exhibiting at this year's convention. 

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FDIC Board Approves Appraisal Threshold Increase for CRE Transactions

The FDIC board of directors yesterday approved a final rule to raise the appraisal thresholds for commercial real estate transactions from $250,000 to $500,000--an increase from the original proposal, which called for the appraisal threshold to be raised to $400,000. The threshold for loans secured by one-to-four family residential properties will remain at $250,000; however, residential construction loans secured by multiple one-to-four residential properties would be considered CRE transactions. The final rule must now be approved by the Federal Reserve and the OCC; once approved by the agencies, it will be effective 30 days after publication in the Federal Register.  

ABA has long supported an increase to the CRE appraisal threshold, noting in previous comments that doing so would provide immediate relief to banks that are currently struggling with a shortage of certified appraisers--particularly in rural areas--and long appraisal turnaround times. Read more. For more information, contact ABA's Sharon Whitaker

SDBA, Banks Support SD Ag Foundation's $4 Million Challenge

On National Ag Day on Tuesday, the South Dakota Agricultural Foundation accepted a five-year challenge to raise $4 million for future support of South Dakota’s agriculture industry. Funds raised by the SD Ag Foundation will be matched by an additional $1 million in funds from the State of South Dakota and South Dakota Community Foundation.

“We take pride in agriculture here in South Dakota, and to see SD Agricultural Foundation’s commitment to invest in the future of agriculture is commendable. This challenge will ensure growth in the industry, while highlighting the need for philanthropy in agriculture,” said Gov. Dennis Daugaard. 

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