South Dakota Banker CFPB Director Richard Cordray Visits South Dakota - Your Premier Source to South Dakota's Financial Services Industry | ...

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South Dakota Banker CFPB Director Richard Cordray Visits South Dakota - Your Premier Source to South Dakota's Financial Services Industry | ...
South Dakota Banker
Your Premier Source to South Dakota’s Financial Services Industry | September 2016

CFPB Director Richard Cordray
Visits South Dakota
Page 5

                                                   INSIDE . . .
                                                   Three SDBA Members Named
                                                   to ‘Best Banks to Work For’ List
                                                   Page 12

                                                   FFIEC Guidance:
                                                   Mobile Financial Services
                                                   Page 16

                                                   Succession Planning:
                                                   How Deep Is Your Bench?
                                                   Page 18

   Official Publication of the South Dakota Bankers Association | www.sdba.com
South Dakota Banker CFPB Director Richard Cordray Visits South Dakota - Your Premier Source to South Dakota's Financial Services Industry | ...
S O U T H D A K O TA
                           D E V E L O P M E N T C O R P O R AT I O N

                                               sba 504
                                        LOAN PROGRAM

      South Dakota Development Corporation’s SBA 504
    loan program offers long-term, fixed-rate financing to
       for-profit businesses for fixed-asset purchases.
• Long-term, fixed-rate financing                                    • Loan amounts: $2 million; up to $5 million
• Available to all for-profit businesses,                              under public policy; or, $5.5 million for
  including retail operations                                          manufacturing or energy-related borrowers
• As a Certified Development Corporation                             • Subordinate lien position to bank
  (CDC), the SDDC offers 504 loans statewide                         • Fixed asset purchases
        For more information on the SBA 504 loan program, contact LaJena Gruis at lajena.gruis@state.sd.us or 605-773-3301.

                               WWW.SDREADYTOWORK.COM/FINANCE
South Dakota Banker CFPB Director Richard Cordray Visits South Dakota - Your Premier Source to South Dakota's Financial Services Industry | ...
SDBA Board of Directors                                    South Dakota Banker
Chairman Paul Domke                                        Your Premier Source to South Dakota’s Financial Services Industry
Heartland State Bank, Redfield
                                                                                        September 2016 | www.sdba.com
Chairman-Elect Dave Rozenboom
First PREMIER Bank, Sioux Falls
Vice Chairman Karl Adam
First Dakota National Bank, Pierre
                                                           contents
Immediate Past Chairman Rick Rylance                       Message from the Chairman .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 4
Dacotah Bank, Rapid City                                   Learn Benefits of Utilizing SDBIS Products, Services;
Term Ending April 30, 2017                                 SDBA Looking to Fill Position
Steve Bumann, BankWest, Pierre
Shawn Rost, First Interstate Bank, Rapid City              From the Executive Office .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5
Kevin Whitelock, Pioneer Bank & Trust, Spearfish           CFPB Director Richard Cordray Visits South Dakota
Term Ending April 30, 2018
Jeff Davis, Bryant State Bank, Bryant                      South Dakota Bankers Insurance & Services Update.  .  .  .  .  . 6
Brad Seaman, First State Bank of Warner, Aberdeen          Preventing Slips and Falls Battling the Hazards of Winter
David Bangasser, Dacotah Bank, Sioux Falls

Term Ending April 30, 2019
                                                           Fall Training.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 7
Kristina Schaefer, First Bank & Trust, Sioux Falls         Learn to Transition to a More Technology-Sophisticated Institution:
David D. Nelson, First Fidelity Bank, Platte               Attend SDBA Bank Technology Conference
Jerry Nachtigal, Citibank, N.A., Sioux Falls
                                                           Fall Training.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 8
SDBA Staff                                                 Bank Security Management Training: Security, Fraud and Risk
Curt Everson, SDBA President
                                                           Management
ceverson@sdba.com
                                                           2016 ABA National Agricultural Bankers Conference. .  .  .  .  . 9
Mike Feimer, President of Insurance and Services
mfeimer@sdba.com
                                                           Fall Training.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 10
Deb Gates, Administrative Vice President                   IRA Update Seminar to Be Held in October
debgates@sdba.com
Alisa DeMers, Communications Coordinator                   Financial Literacy .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 11
ademers@sdba.com                                           Banker Volunteers Needed for 2016 Get Smart About Credit Day
Nadine Kepford, IS/Business Manager
nkepford@sdba.com                                          Area Banks. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 12
Jeanine Dyce, Administrative Assistant                     Three SDBA Members Named to “Best Banks to Work For” List
jdyce@sdba.com
Roger Larson, Commercial Lines Specialist                  Cybersecurity Training.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14
rlarson@sdba.com                                           43 Learn About Cybersecurity Leadership
Michelle Guthmiller, Insurance Specialist
mguthmiller@sdba.com                                       Graduate Banking School .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 15
Robin Feimer, Customer Service Representative
                                                           SD Bankers Attend Graduate School of Banking at Colorado
rfeimer@sdba.com
                                                           Technology. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 16
Editor: Alisa DeMers                                       FFIEC Guidance: Mobile Financial Services
Advertising: If you would like to advertise in South
Dakota Banker, contact Alisa DeMers at ademers@
                                                           Industry Insight.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 18
sdba.com or call 800.726.7322.                             Succession Planning: How Deep Is Your Bench?

      South Dakota Banker is a monthly magazine            Bank Notes. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 19
published by the South Dakota Bankers Association
that is dedicated to enhancing the banking profession      Classifieds.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 20
by providing useful and timely information on important
events and trends in the banking industry. Members are
invited to submit news and information.
                                                           Education Calendar. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 22
      The advertisements within this publication do
not necessarily represent endorsed vendors of the
SDBA. With the exception of official announcements,
the SDBA disclaims responsibility for the opinions
expressed and statements made. The editor reserves
the right to refuse any advertisement or editorial copy.
Advertising rates are available upon request.
      Member banks, branches and associate members
receive one complimentary subscription. Additional
subscriptions are available to members at a rate of $45                                 South Dakota Bankers Association
per year. The non-member rate is $90 per year.                                               109 West Missouri Avenue, PO Box 1081
                                                                                                       Pierre, SD 57501
             Serving Bankers Since 1884
                                                                                             Phone: 605.224.1653 Fax: 605.224.7835
                                                                                                    Website: www.sdba.com
South Dakota Banker CFPB Director Richard Cordray Visits South Dakota - Your Premier Source to South Dakota's Financial Services Industry | ...
message from the chairman
BY PAUL DOMKE | President/CEO/CCO | Heartland State Bank, Redfield

Learn Benefits of Utilizing SDBIS Products, Services

                   I
                         am not sure which words I least
                         like to hear—”summer is ending
                         soon” or “the political campaigning               SDBIS President Mike Feimer
                     and rhetoric will be ramping up.”
                                                                           and his staff have worked hard
                     Nonetheless, both are happening.
                          I want to write a few words about                at securing product lines and
                     the SDBA’s subsidiary South Dakota                    rates that are good for all.
                     Bankers Insurance & Services (SDBIS),
Inc. SDBIS has been an integral part of the SDBA helping
to generate revenue for the Association. SDBIS serves
the whole South Dakota banking sector with a great line          these products and services. Please keep in mind that
of products and services that if banks, especially smaller       the Association brings with it the power and leverage
ones, would have to try to do on their own, would                of all South Dakota banks, and as a group, we are much
be searching hard and at the mercy of other pricing              stronger and in the long haul much better served.
structures.                                                           If you currently utilize these products and services,
     SDBIS President Mike Feimer and his staff have              thanks. If you don’t, please get in touch with SDBIS staff
worked hard at securing product lines and rates that are         and see if they can benefit you now and in the future. n
good for all. It is strength in numbers and diversity of
those that use the products that allows SDBIS to do just
that. From health insurance, bonds, property and casualty,       Paul Domke is president/CEO/CCO of Heartland State Bank in
they sure have taken care of the people to which I talk.         Redfield. Domke can be reached at 605.475.5500 or pdomke@
     I know there are options that we all have in selecting      hsbsd.com.

    SDBA Looking to Fill Position
    T
           he South Dakota Bankers              administrative support to assigned
           Association (SDBA) is looking        SDBA committees and the Board
           to hire an administrative vice       of Directors. Strong written, oral,
    president who will also serve as            presentation and computer skills are
    executive director of the South Dakota      required.
    Bankers Foundation. Deb Gates, who              The position is 40 hours per week
    currently holds the position, is retiring   and offers a 401(k) plan and health
    at the end of the year.                     benefits. The starting salary depends
         The full-time, salaried position       on experience. The office is located in
    is responsible for developing,              Pierre S.D., and working remotely is
    implementing and directing delivery         not an option.
    of a broad range of education, using            Phone, email or stop by to pick
    a variety of delivery methods, to the       up a complete job description at the
    banking industry. The position is also      SDBA at 109 W. Missouri Ave., Pierre,
    responsible for directing activities of     SD 57501, phone 605.224.1653 or email
    the South Dakota Bankers Foundation         debgates@sdba.com. The deadline to
    and providing leadership and                apply is Sept. 30, 2016. n

4                                  South Dakota Banker | September 2016 | www.sdba.com
South Dakota Banker CFPB Director Richard Cordray Visits South Dakota - Your Premier Source to South Dakota's Financial Services Industry | ...
from the executive office
BY CURT EVERSON | President | South Dakota Bankers Association

CFPB Director Richard Cordray Visits South Dakota

                  E
                          arly on a foggy morning during            ●● New HMDA data reporting requirements,
                          Sturgis Motorcycle Rally week, I              processes and related privacy concerns
                          headed to Huron for a roundtable          ●● CFPB’s process for defining rural vs. non-rural
                    discussion between the director of the              areas
                    Consumer Financial Protection Bureau            ●● Reg Z-related timeframes affecting home loans
                    (CFPB), Richard Cordray, and a group                from construction through closing
                    of bankers about challenges in the home         ●● TILA/RESPA Integrated Disclosures (TRID)
                    mortgage lending space.                         ●● Owners’ title insurance
     Shout-out to Angela Beilke, vice president-mortgage            That’s a pretty good list to cover in an hour and a
department manager at American Bank & Trust, Huron.            half. To his credit, Director Cordray did address several of
It’s because of Angela’s willing service as a member of the    the concerns he felt were valid and noted efforts the CFPB
CFPB’s Community Bank Advisory Council that Director           was taking to address some of those issues. But, I honestly
Cordray and his staff decided to stop in Huron on their        walked away from the meeting thinking that inasmuch as
tour beyond the D.C. beltway.                                  the Director and his staff said they wanted to hear about
     As the fog began to lift about 30 miles east of Pierre,   problems associated with the CFPB’s regulations, they
I noticed a parked car ahead, flashers blinking, sitting       tended to believe that bankers too often perceive problems
on the opposite shoulder of U.S. Highway 14. As I drew         that do not actually exist.
closer, I also noticed a motorcycle sitting upright in an           Director Cordray encouraged bankers to “just make
un-mowed section of that westbound ditch and a couple          lending decisions like you have always done, and you
of “senior” riders walking up toward the parked car. Then      will be fine.” I wouldn’t want to speak for everyone in
I spotted a single set of black skid marks starting in the     the room, but I am guessing that bankers may have taken
eastbound lane, crossing over through the westbound            a skeptical view of that counsel, not only in light of the
lane and eventually disappearing into that tall grass.         increased regulation associated with lending, but also
Everyone appeared to be in good shape, so I continued          because the banks represented in the room work with
east on 14 in order to make the meeting with Director          the OCC/FDIC or Federal Reserve examiners and their
Cordray and SDBA members.                                      interpretation of the CFPB’s regulations.
     As I drove along, I started to wonder about what may           As the roundtable discussion was nearing its end,
have caused the motorcycle to veer off course. Was the         Director Cordray let us know that he was a bit frustrated
accident fog related? Did the riders have to take the ditch    at the ongoing pushback against the CFPB’s rulemakings.
in order to avoid a collision with a deer or some other        He challenged anyone in the room to document one case
wildlife? Since it was very early in the day, I didn’t think   where a bank has been sued over any issue involving
that driver fatigue would have been a factor. A mishap         a non-QM loan. When concerns were raised about
had occurred, but no one got hurt. Just another day on the     the volume and complexity of documents involved in
open highway.                                                  originating or closing a residential real estate loan, he
     Reflecting on the dialogue between bankers and            pointed to the CFPB’s new Know-Before-You Owe Loan
Director Cordray and his staff later that morning, I started   Estimate and Mortgage Closing Disclosure tools and was
thinking about some parallels between the hazards of the       quick to indicate it was state and local government-driven
open road and challenges in the home mortgage space            forms and processes that caused much of the complexity.
for bankers and their customers. Here’s a recap of those            What all parties involved in the home mortgage
discussions.                                                   lending business need to understand (bankers, regulators
     Each of the handful of community                          and trade association staff like me) is that for most people,
banks represented at the meeting are                           perception is reality. In preparation for the meeting with
actively engaged in originating home                           the Director, I decided to do some homework. I found a
loans. At the outset, Director Cordray                         resource on the ABA’s website that I thought might be
asked that bankers tell him about                              helpful entitled “The new CFPB Mortgage Origination
issues of concern and stated his goal of                       Rules Deskbook.” The stated goal of attorneys at the D.C.
responding to each concern during the                          law firm of Buckley Sander, one of whom used to work at
course of the meeting. Bankers raised                          the CFPB, in creating this deskbook “was to consolidate
concerns about:                              Richard Cordray
                                                               all of the many, varied sources of regulatory guidance on
     ●● Appraisals (cost, timeliness, lack                     mortgage lending rules. They looked holistically at:
        of comps in rural areas)                                    ●● Preamble language associated from official Federal
     ●● Qualified mortgage challenges especially in rural               Register releases of the rules
        communities                                                                                      Continued on page 19

                                 South Dakota Banker | September 2016 | www.sdba.com                                       5
South Dakota Banker CFPB Director Richard Cordray Visits South Dakota - Your Premier Source to South Dakota's Financial Services Industry | ...
south dakota bankers insurance & services update
BY ROGER LARSON | Commercial Lines Specialist | South Dakota Bankers Insurance & Services (SDBIS), Inc.

Preventing Slips and Falls
Battling the Hazards of Winter
                  S
                         lips, trips and falls can occur at           not removed) to avoid thaw/refreeze hazards, use
                         any time during the year, but the            of ice control products and who is responsible for
                         snow and ice hazards from our                thaw/refreeze follow up.
                   South Dakota winters greatly increase           ●● Drainage. Reroute gutters that empty onto
                   the challenges to preventing these types           walkways to minimize the potential for refreeze
                   of claims.                                         of snow melt. Repair or re-grade low spots that
                        Many people are surprised to learn            collect water along walking surfaces.
                   that slips and falls are the number             ●● Supplies and Equipment. Ensure adequate snow
one cause of insurance claims at community banks. Slip,               and ice management supplies and equipment
trip and fall claims make up a large portion of workers’              are available. Consider a power brush for snow
compensation and general liability claims. These types                removal; they typically leave a cleaner and safer
of losses represent a significant cost to your business.              walking surface.
Working to prevent slips and falls may help banks avoid            ●● Education. Involve and educate your employees
financial losses such as paid claims, increased insurance             and co-workers on the prevention of slips and
premiums and administrative time spent handling                       falls. Ask what they see as the problem areas each
incident reporting. Additionally, injuries in a facility can          winter.
create adverse publicity, which in turn could affect a
bank’s name and reputation. Ultimately, all of these issues    Precautions to Take During Winter Weather
may have a negative effect on the bottom line.                      ●● Make every effort to clear walkways and parking
                                                                       lots before employees and customers arrive.
Did you know that...?                                               ●● Place adequate water-absorbent mats at each
    ●● The National Safety Council reports that the                    building entrance. Monitor for puddles beyond the
       leading cause of accidental death and injury in                 mats and mop up immediately. Install extra mats
       public buildings is slips and falls. For all public             as needed.
       places, they are second only to motor vehicle                ●● Place wet floor warning signs when conditions
       accidents.                                                      warrant.
    ●● Slips and falls are the leading cause of nonfatal            ●● Monitor all walkways throughout the day, both
       accidental injuries. More than 12 million occur                 indoors and outside. Remove snow accumulation
       each year, requiring medical attention that includes            from walkways and apply ice control products as
       eight million emergency room visits.                            necessary.
    ●● More than 25,000 fatalities occur from slip-and-fall         ●● Encourage employees to report any slip/fall
       accidents annually. For people over the age of 75,              hazards that they may observe throughout the day.
       they are the leading cause of accidental death.              There definitely is more risk for slips and falls during
    ●● Slips and falls are the leading cause of workplace      the winter months, but there are other hazards to be
       injuries for employees, with the average injury         aware of throughout the year, such as: wet floors; uneven
       costing more than $22,000.                              walking surfaces; polished or freshly waxed floors; loose
    ●● The Insurance Information Institute reports that the    flooring, carpeting or mats; transition from one floor
       average cost of a premise’s liability claim, decided    type to another; missing or uneven floor tiles; damaged
       by a jury, is more than $600,000.                       or irregular steps, no handrails; sloped walking surfaces;
                                                               electrical cords or cables; open desk or cabinet drawers;
Winter Slip and Fall Prevention Plan                           and poor lighting
     Providing a clean, dry walking surface 100 percent of          Slip, trip and fall claims can be very costly to your
the time may not be possible during the winter months,         bank. Many slip-and-fall injuries are preventable.
but a winter slip and fall prevention plan can greatly         Encourage employees to be alert and report hazardous
reduce the risks. Planning should begin well before the        conditions. Take the necessary precautions and prevent a
first snowfall and address items such as:                      very costly injury this winter season. n
     ●● Snow and ice management contracts. Define              Roger Larson is commercial lines specialist for the South
        depth and weather triggers, timing of service,         Dakota Bankers Insurance & Services (SDBIS), Inc. Larson can be
        specific areas covered, where snow will be piled (if   reached at 605.280.0912 or rlarson@sdba.com.

6                                South Dakota Banker | September 2016 | www.sdba.com
South Dakota Banker CFPB Director Richard Cordray Visits South Dakota - Your Premier Source to South Dakota's Financial Services Industry | ...
fall training

Learn to Transition to a More Technology-Sophisticated Institution
Attend SDBA Bank Technology Conference

D
         eloitte & Touche recently published “Forward
         Look at the Top Regulatory Trends for 2016 in
         Banking.” According to Deloitte, some trends
from 2015, such as concerns about credit quality,
continued into 2016.
    Meanwhile, the impact of technology on every
aspect of banking operations and strategy can be seen
throughout the 2016 regulatory picture—from model risk
management to data quality to the focus on preventing
and responding to cyber threats. Using technology as a
tool to enhance compliance and credit quality can both
decrease and increase risk. Finding the right balance
among investment, maintenance and innovation is now an
essential part of risk management and compliance.
    To stay in front of cyber threats, regulators are
requiring banks to do more rigorous testing—establishing       ●● Finding the ROI in Security
policies, procedures and controls is not enough. Effective
                                                               ●● Non-Bank Competitors: Understanding and
cybersecurity requires a bank to get controls in place,
                                                                  Responding to their Technology Edge
monitor and adjust for new threats, and respond
effectively when an attack occurs.                             ●● Planning to Fail Well—Today’s Incident Response
    Banks typically focus on the first stage but forget           Expectations
about the last two. And the regulators have indicated that
banks should expand disruption scenarios beyond their          Hot Speakers
own boundaries to include potential weak links such as
customers, third-party vendors and critical infrastructure     ●● David Peterson, i7 Strategies, Hahira, Ga.
components. According to Deloitte, if 2015 was focused on      ●● Jack Vonder Heide, Technology Briefing Centers,
change, 2016 is the year of transformation.                       Chicago, Ill.
    The SDBA is offering the 2016 Bank Technology              ●● Jessica Mashburn, Secure Identity Systems, Brentwood,
Conference on Sept. 20-21 at the Hilton Garden Inn Sioux          Tenn.
Falls Downtown in Sioux Falls to provide information to
help community banks as they continue the transition to a      ●● Bryan Ansley, FNB Merchants/Secure Identity
more technologically-sophisticated institution in this ever-      Systems, Brentwood, Tenn.
changing world of mobile devices and electronic payment        ●● Jon Waldman, Secure Banking Solutions, Madison, S.D.
systems.
                                                               ●● Andy Deinert, Vantage Point Solutions, Mitchell , S.D.

Hot Topics                                                     Who Should Attend
●● Cybersecurity Bootcamp: A Year of the CAT
   (Cybersecurity Assessment Tool)—How Risk                         This conference targets the “Technology Team”
   Assessment is Changing (For the Better)                     in your bank. Technology managers, information
                                                               security officers, IT committees, IT auditors, heads of
●● Who’s on First, What’s on Second? Changes in
                                                               operations, chief information officers, and anyone with
   Banking and the Millennials Driving Them
                                                               responsibilities or an interest in bank technology are
●● Enterprise-wide Innovation: Is It Impossible,               encouraged to attend.
   Improbable or Inevitable?                                        Attendees will also have the chance to visit with a
●● Cyber Security Breach Playbook—What Every IT                number of technology vendors who will be exhibiting at
   Administrator Needs to Know                                 this year’s conference.
                                                                    For the complete conference agenda and to register
●● Teaching Business Customers about CyberSecurity
                                                               online, visit www.sdba.com/education. Questions, contact
●● How to Protect the “Missing Layer” in Your Cyber            Deb Gates with the SDBA at 800.726.7322 or debgates@
   Security Plan                                               sdba.com. n

                                 South Dakota Banker | September 2016 | www.sdba.com                                   7
South Dakota Banker CFPB Director Richard Cordray Visits South Dakota - Your Premier Source to South Dakota's Financial Services Industry | ...
fall training

Bank Security Management Training:
Security, Fraud and Risk Management

T
       he SDBA’s Bank Security Management Training:               ●● Analysis of current trend data
       Security, Fraud and Risk Management on Oct. 20,            ●● Integrated deterrence halos and incorporating the
       2016, will highlight issues impacting the banking             Heinz principles into strategies
industry on fraud trends, card fraud and physical security        ●● Developing policies, procedures and systems
issues. This one-day training will be held at the Clubhouse          consistent with Bandit Shield guidelines
Hotel & Suites in Sioux Falls.                                    ●● Implementing active threat concepts into physical
     This fast-paced seminar will focus on issues that               security planning
are sometimes not considered by bankers who are taxed
to the limit with the operational challenges of running       4. The Insider Threat—Don’t Look the Other
their bank. This seminar will present current trends and         Way
include examples of how financial institutions and law             The moral hazards of bailouts and the continuing
enforcement are responding to today’s perils.                 difficult economic climate are not just topics for
                                                              intellectual debate and academic pontification. Both
                                                              conditions have an impact on those who work at
Program Highlights                                            institutions, and when combined with the powerful
1. No Trojan Horse Required—How the Crooks                    influence of the rationalization process, some employees
   Exploit Banks                                              make the decision to embezzle to satisfy their needs.
     In this session, Jim Rechel, president of The Rechel          This session will highlight:
Group, a fraud risk analysis, prevention, detection and            ●● Motivating factors to embezzlers
investigation firm and former FBI agent, will analyze how          ●● Red flags they unknowingly exhibit
the criminal element is incorporating the ever-expanding           ●● Steps banks can take to protect their institution
stable of technology tools to exploit the weaknesses in
bank operational processes. Utilizing current examples,
Rechel will provide a look inside the operations of current
                                                              Who Should Attend
                                                                  Security officers or directors, compliance officers,
scams, providing attendees with insight into how the
                                                              operations managers, auditors, HR directors, legal staff,
criminals view banks and utilize every tool available to
                                                              loan officers, disaster recovery managers, collection staff
get to the money. This session will highlight:
                                                              and fraud investigators can all benefit from attending this
     ●● Card skimming—why it’s not going away
                                                              seminar.
     ●● How criminals are exploiting breaches over longer
        periods of time
     ●● The nexus between common fraud schemes and            Presenter
        today’s technology                                                            Jim Rechel is president of The
     ●● Prevention steps to consider for your bank                               Rechel Group, Inc., a risk-consulting
                                                                                 firm headquartered in Cincinnati,
2. Using Social Media in Investigations                                          Ohio. He is on the board of The
    Discover what tools are available to maximize                                Institute for Criminal Justice Education,
banks’ investigations using social media sites and apps.                         Montgomery, Ala., and a member
This portion of the seminar will provide information to                          of numerous national organizations.
immediately put to use and will highlight:                                       Rechel is also a certified financial
    ●● Developing methods to use social media to link         security officer. He is a past local board member of the
       entities, people and transactions                      International Association of Financial Crimes Investigators
    ●● Methods to enhance due diligence and fraud             and the American Society of Industrial Security. Prior
       investigations                                         to working for The Rechel Group, Inc., Rechel was
    ●● Discussion of recent legal findings                    vice president for Fifth Third Bank headquartered in
                                                              Cincinnati,
3. Physical Security Robbery Preparedness
     While the perils maintain similar names, the approach    Register to Attend
banks take to planning for the unforeseen require financial       For more information and to register, visit www.sdba.
institutions to address current trends. This portion of the   com/education. Or contact Deb Gates with the SDBA at
seminar will address:                                         800.726.7322 or debgates@sdba.com. n

8                                South Dakota Banker | September 2016 | www.sdba.com
South Dakota Banker CFPB Director Richard Cordray Visits South Dakota - Your Premier Source to South Dakota's Financial Services Industry | ...
South Dakota Banker | September 2016 | www.sdba.com   9
South Dakota Banker CFPB Director Richard Cordray Visits South Dakota - Your Premier Source to South Dakota's Financial Services Industry | ...
fall training

IRA Update Seminar to Be Held in October
T
       he IRA Update Seminar builds on attendees’                      ●●   Setting up inherited IRAs
       knowledge of IRA basics to address some of                      ●●   Distributions from an inherited IRA
       the more complex IRA issues their financial
                                                                       ●●   Roth distributions
organizations may handle. This course also includes all
changes that have occurred and discusses any pending                   ●●   Conversions
legislation. This is a specialty session; previous IRA                 ●●   Legislative update
knowledge is assumed.
     The SDBA will hold the IRA Update Seminar on Oct.            Instructor
20, 2016, at the Ramkota Inn in Sioux Falls. Instructor                                   Mike Nelson taught marketing for
Mike Nelson uses real-world exercises to help participants                           13 years at Central Lakes Community
apply information to job-related situations.                                         College in Brainerd, Minn., before
                                                                                     starting JM Consultants. He has
Course Highlights                                                                    conducted insurance, real estate
     ●● NEW: “Fiduciary” regulations                                                 and securities training seminars and
                                                                                     developed financial training services for
     ●● Understanding how selection of beneficiaries                                 financial institutions. JM Consultants
        determines death distributions                            offers all IRA products and services
     ●● Review contribution rules
     ●● Transfers versus rollovers                                Register to Attend
                                                                      For more information and to register, visit www.sdba.
     ●● Moving QRP
                                                                  com/education. Or contact Deb Gates with the SDBA at
     ●● Charitable distributions                                  800.726.7322 or debgates@sdba.com. n

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10                                 South Dakota Banker | September 2016 | www.sdba.com
financial literacy

Banker Volunteers Needed for 2016
Get Smart About Credit Day
T
        he American Bankers Association Foundation is                  Smart About Credit,
        calling for banker volunteers for its annual Get               which will be
        Smart About Credit program, an initiative designed             sponsored by Citi,
to teach teens and young adults how to use credit                      Wells Fargo and U.S.
effectively.                                                           Bank, who’s support
     Bankers will celebrate Get Smart About Credit                     makes possible the
Day on Oct. 20, 2016, and throughout the month by                      development of
visiting classrooms across the country to present lessons              free materials for all
on important financial obstacles facing young adults,                  participating banks.
including paying for college, building good credit habits,                 Bankers interested
managing money and protecting their identity.                          in participating in
     “I believe it’s important for us, as an industry, to              the program can sign
leverage our own financial knowledge to teach todays’                  up online at www.
teens about the importance of credit and how to use it                 aba.com/GetSmart.
wisely,” said Rob Nichols, ABA president and CEO. “The                 Registered banks will
Get Smart About Credit program provides participating                  be featured in a list of
bankers with all the resources they need to get students               participating banks on
thinking critically about their financial futures.”                    the ABA Foundation’s website and in press materials. n
     This is the 13th year bankers have celebrated Get

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                                            South Dakota Banker | September 2016 | www.sdba.com                             11
area banks

Three SDBA Members Named to ‘Best
Banks to Work For’ List

T                                                            #3: Bell Bank
       wo SDBA member banks and one associate member
       were named to American Banker Magazine’s fourth
       annual list of the 60 best banks to work for.         Location: Fargo, N.D.
    Topping the list were Live Oak Bank, Wilmington,
N.C.; HomeBanc, Lake Mary, Fla.; and Bell State Bank         Assets: $3.9 billion
and Trust, Fargo, N.D., which is an SDBA associate           Employees: 657
member. First Bank & Trust in Brookings and Sioux Falls      President and CEO: Michael Solberg
was number 17, and First PREMIER Bank in Sioux was
number 60.                                                   Bell Bank, number three in the overall ranking, is number one
    These and other banks were celebrated for being          in the category for banks with $3 billion to $10 billion of assets.
employee-centric, offering programs and amenities like            Bell Bank’s
catered weekly lunches, wellness programs, an onsite         motto, according
gym and dog park, anniversary celebrations and a “pay it     to President and
forward” charitable giving program.                          Chief Executive
    Familiar names­—and more than a dozen newbies—           Michael Solberg,
can be found in the annual ranking of the nation’s most      is “Happy
employee-friendly banks. Find out why these 60 banks         Employees,
are so successful at keeping their employees happy and       Happy
engaged at http://www.americanbanker.com.                    Customers.”
                                                                  So Bell, which
                                                             shortened its          Employees celebrate Bell Bank’s 50th
                                                             name from Bell         anniversary.
                                                             State Bank & Trust
                                                             on Aug. 22, does plenty to try to make sure its employees
                                                             are happy and, by all accounts, it succeeded spectacularly
                                                             on May 6, the bank’s 50th anniversary. Every full-time
   HELPING FIRST TIME (& NOW REPEAT)                         and part-time employee received a one-time cash bonus
                                                             of $2,500 and $1,000, respectively. At a party to celebrate
   BUYERS’ DREAMS                                            the milestone, Bell also gave away 50 massages and 50
                                                             televisions that had a 50-inch screen.
   COME TRUE SINCE 1973.                                          Besides the surprises on special occasions, employees
                                                             like Joe Ackerland enjoy ongoing support in the form of
        FIRST-TIME & REPEAT                                  career development.
        HOMEBUYER PROGRAMS:                                       “Bell has invested in me by sending me through the
                                                             Dakota School of Banking,” said Ackerland, a branch
          Downpaymentt & Closing Cost Assistance
          Downpaymen
                                                             manager who has worked at the bank for nine years.
          Competitive Rates
                                                                  More recently, Ackerland expressed an interest in
          Tax Credit – Mortgage Credit Certificate (MCC)      commercial lending, and Bell responded by sending him
                                                             to the Commercial Lending Academy at the University of
                                                             Minnesota’s Continuing Education Center.
                                                                  The result is that employees genuinely feel they
                                                             matter, because the bank demonstrates this through
                                                             meaningful action, rather than just paying lip service to
                                                             the idea, said Steph Melgaard, a vice president and virtual
                                                             bank services manager who has been with Bell for two
                                                             years.
             605-773-3181 | www.sdhda.org
                                                                  “’Happy Employees, Happy Customers’ is not just
                                                             a poster that hangs in the break rooms,” Melgaard said,
                                                             “but truly the basis of how we do business.”

12                                South Dakota Banker | September 2016 | www.sdba.com
#17: First Bank &                           #60: First
Trust                                       PREMIER Bank

In recognition of reaching $2 billion       The PREMIER Summer Track Meet has
dollars in assets, First Bank & Trust       been an anticipated community tradition
held a corporate party in Brookings for     for more than 20 years, drawing close to
employees and their guests.                 2,000 participants in 2015.

Location: Brookings and Sioux Falls         Location: Sioux Falls
Assets: $2.1 billion                        Assets: $2 billion
Employees: 492                              Employees: 339
President and CEO: Kevin Tetzlaff,          CEO: Dana Dykhouse
Brookings, and Brian Thompson,                                                         Call me at
                                            Popular with employees: For more
Sioux Falls
                                            than 20 years, First PREMIER Bank          605.201.1864
Popular with employees: On-site             has provided scholarships to high
childcare is available at the Brookings     school seniors. Last year, 15 of the 31    Gene Uher
location, and the children sometimes        $1,000 scholarships awarded went to        Based in Sioux Falls, SD,
come through the office to visit            children of bank employees.                serving South Dakota, Nebraska,

employees, which adds fun to the                                                       Minnesota and Iowa.
                                            Activity to relieve stress/promote
workday.
                                            fun: Unique sales meetings help
Fitness/wellness program:                   foster teamwork. One example is
Employees win prizes for                    an exercise in a corn maze meant
participating in a yearlong program         to highlight a healthy approach to                             bellbanks.com

that encourages healthy eating habits       organizational change.
and exercise.
Community service initiative: Each
                                            Community service initiative: Last
                                            year, the bank was the exclusive
                                                                                            Partner with us.
year, First Bank puts about 5 percent       sponsor of the United Way rally,
of its profits into a special fund to       “Start with Heart.” The event                   Our correspondent bankers
                                                                                            will get you clear answers
support organizations that improve          featured the rock band Heart. n                 and fast decisions. As your
the community, whether by helping                                                           partner, we will help you
local youth or promoting the arts                                                           enhance your customer
and education. Its donations totaled                                                        relationships. As your bank
about $1.3 million last year.                                                               grows, we’ll help you meet
                                                                                            your needs.

        The SDBA School of Compliance,                                                      Together,let’s
                                                                                            make it happen.
          typically scheduled in the fall of
         even-numbered years, will not be                                               • Commercial & ag participation loans

        held this fall. Instead, it will be held                                        • Bank stock & ownership loans
                                                                                        • Bank building financing

        in the spring of 2017 in Sioux Falls.                                           • Business & personal loans for bankers

          Be watching for more details.
                                                                                                                                 13150

                                                                                                   bellbanks.com | Member FDIC

                                    South Dakota Banker | September 2016 | www.sdba.com                                              13
cybersecurity training

43 Learn About Cybersecurity Leadership
F
     orty-three people attended the Executive Leadership     federal regulators and DSU educators. Topics covered
     of Cybersecurity (ELOC) training held at Dakota         the threat landscape and globalization of cybercrime,
     State University (DSU) in Madison on Aug. 16,           regulatory response and cybersecurity risk assessment
2016. The training was co-hosted by the South Dakota         tool, threat intelligence collection and sharing by
Division of Banking, South Dakota Bankers Association,       community banks, a roundtable exercise of cyber threat
Independent Community Bankers of South Dakota,               scenarios/hacking simulation, and ELOC best practices.
Conference of State Bank Supervisors and DSU.                    Be watching for more ELOC training to come. n
    Speakers included law enforcement officials, state and       (Photos courtesy of ICB of South Dakota.)

14                              South Dakota Banker | September 2016 | www.sdba.com
graduate banking school

SD Bankers Attend Graduate School of
Banking at Colorado

A
        s part of the class of 2016, three South Dakota
        bankers graduated from the Graduate School of
        Banking at Colorado (GSBC). The graduates were
Robert Schelske, First Dakota National Bank, Mitchell;
David Kotab, Commercial State Bank, Wagner; and Dan
Scheurer, Security First Bank, Rapid City.
    GSBC awarded 159 total graduates from across the
nation with a certificate in banking in a ceremony on July
28 at the University of Colorado in Boulder, Colo.
    GSBC prepares bank-industry professionals to take
on senior management roles within their organizations.
Each student has been recognized by his or her bank
CEO, president and supervisor as a rising star within their
organization. During the 25-month program, which meets
two weeks each July for three consecutive years, students
complete six intersession research projects, on-campus
                                                              L-R: Robert Schelske, First Dakota National Bank, Mitchell;
coursework, exams and a bank management simulation.
                                                              David Kotab, Commercial State Bank, Wagner; and Dan
     Next year’s school session will be held July 16-28,
                                                              Scheurer, Security First Bank, Rapid City
2017. Visit www.GSBColorado.org for details. n

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                                   South Dakota Banker | September 2016 | www.sdba.com                                               15
technology
BY JON WALDMAN, CISA, CRISC | Partner and Senior Information Security Consultant | Secure Banking Solutions, LLC

FFIEC Guidance: Mobile Financial Services
FFIEC Updates IT Examination Handbook to                         Mobile Financial Services Technologies
Include Mobile Financial Services                                    Appendix E: MFS identifies four current MFS

                  R
                          ecently, the FFIEC released an         technologies being employed by financial institutions:
                          expected and overdue update to             1. Short message service (SMS) mobile banking (text
                          its IT Examination Handbook.                  banking)
                   Retail Payment Systems Booklet                    2. Mobile-enabled websites and browsers
                   Appendix E: Mobile Financial Services             3. Mobile applications
                   was written to encompass the often-               4. Wireless (mobile) payment technologies
                   used mobile banking product and
                   service line for financial institutions,           SMS Mobile Banking: SMS mobile banking utilizes
which has not been explicitly recognized in the IT Exam          text messaging to allow a customer to provide financial
Handbook until now.                                              transaction instructions to their financial institution.
    According to the guidance, Appendix E: Mobile                Typical SMS mobile banking transactions include
Financial Services (MFS) “focuses on risks associated            information gathering (balance checking), transfer of
with MFS and emphasizes an enterprise-wide risk                  funds between accounts, account alerts or updates, or one-
management approach to the effective management and              time passwords for website authentication.
mitigation of those risks.” Appendix E: MFS discusses the
different types of mobile financial services that institutions       Mobile-enabled Websites/Browsers: Mobile-
are currently implementing and provides an updated               enabled websites and browsers allow a customer to access
work program to help examiners review and provide                the same Internet banking products and services offered
recommendations regarding MFS.                                   by the financial institution to a desktop computer user,

16                                South Dakota Banker | September 2016 | www.sdba.com
only the website or the browser is optimized for a mobile            payments may be made via text message (SMS) or
device (tablet, laptop or smartphone). Mobile-enabled                mobile application (Fiserv Popmoney). P2P allows
websites or browsers aim to enhance the customer                     a customer to send money via their mobile device
experience by ensuring Internet banking products and                 to other users enrolled in the institution’s system.
services are in the best format for viewing on a mobile          While MFS continues to gain market share, as far
device.                                                      as payment platforms are concerned, established retail
                                                             payment channels (ACH, credit/debit card networks,
     Mobile Applications: Mobile applications are            EFT, etc.) are still the backbone of transferring money
downloadable software applications developed                 between financial institutions. The traditional retail
specifically for use on mobile devices. Mobile banking       payments channels allow financial institutions to leverage
applications are typically customized for a specific         existing banking relationships to verify identities, satisfy
financial institution (branding, products, services, look-   federal anti-money laundering requirements, and fund
and-feel) and allow a customer to perform the same           accounts despite the new technologies and risks regarding
services (information gathering, initiate transfers, pay     mobile-based transactions.
bills, etc.) as offered via traditional Internet banking.
Mobile applications offer a faster, more user-friendly
interface the SMS-based or Web-based mobile banking.
                                                             What are the risks associated with MFS?
                                                                  The institution’s risk management process should
                                                             incorporate the risk of using mobile financial services.
    Wireless (Mobile) Payment Technologies: Wireless
                                                             Also, the risk of using MFS is dependent on the types
payment technologies (mobile payments) come in a
                                                             of functionality offered by the institution, the type of
variety of applications, including wireless payments at
                                                             information being stored, transmitted and processed
point-of-sale (POS) terminals (Apple Pay, Android Pay or
                                                             through the MFS, and the rate of adoption. Appendix
Samsung Pay), peer-to-peer payments (Fiserv Popmoney,
                                                             E: MFS should identify four different types of mobile
PayPal, Venmo), or other types of wireless payments
                                                             financial services:
(mobile wallets). Most mobile payment technologies
allow the user to make a payment without the need for a          ●● Strategic Risk: The institution must determine
physical card (or check) during the transaction.                    if utilizing MFS aligns with the existing strategic
                                                                    vision, goals and risk appetite. If implementing
     Four different types of mobile payment technologies            MFS does not align with these strategic planning
are identified in Appendix E: MFS:                                  items, strategic risk increases.
    ●● Near Field Communication (NFC): NFC is a                  ●● Operational Risk: Operational risks of MFS
       wireless protocol that allows for the exchange               include the risks around transaction initiation,
       of payment credentials (or other information)                authentication and authorization and the MFS
       stored on the mobile device only while the                   hardware and software itself.
       payment terminal and the device are within direct         ●● Compliance Risk: Compliance risks to the
       proximity of one another (“tapping” a device                 institution include not being in compliance with
       on an NFC terminal is often used to initiate the             consumer laws, regulations and supervisory
       transaction).                                                guidance, as well as failure to perform proper
    ●● Image-based: Coded images similar to barcodes                due diligence and ongoing management of MFS
       (called quick-response or “QR” codes) used to                vendors.
       initiate payments. Credentials may be encoded             ●● Reputation Risk: The risk of the financial
       within a QR code image or stored in the cloud.               institution’s reputation being harmed as a result
       For example, specific retailers might use quick              of information stored, transmitted and processed
       response (QR) codes to identify customers in a               through the MFS becoming compromised or
       closed-loop mobile payment system.                           interrupted for a period of time.
    ●● Carrier-based: Carrier-based transactions are
       billed directly to a customer’s mobile carrier            To read more about the risks associated with MFS,
       (cellular) invoice. Merchants are paid directly by    risk measurement, monitoring and reporting, and what
       the mobile carrier, bypassing traditional payment     Secure Banking Solutions (SBS) can do to help, see the full
       networks. For example, a carrier-based payment        story posted on the SDBA’ website at www.sdba.com/
       may occur when mobile users donate money to           sbs-institute-overview. n
       charity through SMS messages or purchase an
       “add-on” in a mobile gaming application.              Jon Waldman, CISA, CRISC, is a partner and senior information
                                                             security consultant with Secure Banking Solutions (SBS), LLC, in
    ●● Mobile P2P: Peer-to-peer payments (P2P) are           Madison. An SDBA endorsed vendor, SBS has a team of auditors
       most often initiated on a mobile device using         and consultants that can assist in updating IT risk assessments
       the recipient’s mobile phone number, email            and ensure that information security programs adequately
       address or another identifier. Payment is through     reflect the risk-mitigating controls around MFS. Contact SBS at
       established retail payment technologies. P2P          605.923.8722 or visit https://www.protectmybank.com.

                                  South Dakota Banker | September 2016 | www.sdba.com                                    17
industry insight
BY JIM EDRINGTON | EVP, Professional Development Group | American Bankers Association

Succession Planning: How Deep Is Your Bench?

                   S
                         uccession planning is a concept     “career of choice.” A dynamic culture is also being created
                         that is gaining more and more       in many community banks that provide opportunities for
                         prominence, and for good reason.    people to grow and advance.
                   As baby boomers continue to retire in          This culture development requires the full support
                   record numbers, banks are faced with      of the CEO, the board and senior leaders. When properly
                   making decisions about key positions      executed, culture can be a competitive advantage and a
                   that will impact their future success,    key opportunity to reach out to the new generation of
                   and it’s important to “get it right.”     bank employees (the much-talked-about millennials).
    Boards of directors play an important role in this            The board has many competing responsibilities—
process—helping to ensure the bank has a robust and          especially given the current regulatory environment
effective process for identifying top talent and ensuring    and importance of risk management oversight. Your
a smooth transition for key management positions,            shareholders and regulators want to know that you
especially in the C-Suite.                                   have in place a solid plan of action as part of the bank’s
    Succession planning is all about ensuring you            long-term vision or if called upon in an emergency. This
develop your “bench”—recruiting and developing the           fiduciary responsibility goes beyond the CEO’s office
talent that represents the future—and instilling in these    and includes most other key positions, including division
employees the knowledge, skills and abilities (referred to   heads.
as KSAs) to enable them to be successful in their current         Not only must the board address the risks associated
roles and well-positioned to take on increasing areas of     at the C-Suite level, it must also look internally at director
responsibility and more challenging jobs. A formalized       succession to ensure that the board’s composition
succession planning process to support this objective        continues to satisfy the needs of the bank. It’s important
provides several key benefits, including:                    to integrate this level of review into the annual process
                                                             leading to the recommendation of the slate of directors in
     ●● Identifying the key roles in the bank’s management   support of the annual shareholder vote.
        structure.                                                Additionally, boards must consider the key skills
     ●● Documenting the critical skills and competencies     required to serve as a director, who in the community
        needed to support strategic objectives.              may represent ideal candidates and how best to
                                                             attract these individuals. Given the demands on these
     ●● Identifying potential internal candidates for        individuals in their current day jobs, and the increased
        succession by job role.                              level of governance required of bank boards, this can
     ●● Assessing whether internal candidates possess        often be a challenging proposition.
        necessary job skills.                                     Proper planning and the development and
                                                             management of a well-thought-out succession planning
     ●● Communicating the importance of succession
                                                             methodology will go a long way toward ensuring that
        planning to all key stakeholders.
                                                             your board of directors remains vital and serves the bank
                                                             well.
    From ABA’s perspective, the industry has
embraced the need for succession planning and is                  Having a culture that recognizes the importance
taking concrete steps to address talent gaps. Many state     of leadership development, as well as the discipline to
bankers associations have taken steps as well, such as       identify critical roles and functions—with an eye towards
implementing emerging leaders programs to engage             the future—can help position a bank for continued growth
younger bankers in the advocacy process and help them        and success. n
develop their skills and professional networks.
    The graduate banking school marketplace is seeing a
resurgence and, in some cases, record attendance levels,     Jim Edrington is executive vice president of professional
further demonstrating the investment many banks are          development at the American Bankers Association. Edrington
making in their future.                                      can be reached at jedringt@aba.com.
    A clear byproduct of this heightened interest in
succession planning and leadership development is
that as the industry distances itself from the financial
downturn, banking will be positioned once again as a

18                                South Dakota Banker | September 2016 | www.sdba.com
bank notes

Dakota Bankers Gather at GSBC

    Bankers from South Dakota and North Dakota                       This year is phase two of the construction project.
attending the Graduate School of Banking at Colorado            Mount Rushmore Road will remain open to two-way
(GSBC) gathered at Cantina Laredo in Boulder. Bankers           traffic with minimal delays throughout the project. n
from the two states traditionally meet for a Dakota
bankers reception and dinner midway through their               Bridgette French Selected to Receive
classes at GSBC. This year’s school session was held July
17-29 at the University of Colorado in Boulder. n               SD Bankers Foundation Scholarship
                                                                    Bridgette French, a senior majoring in banking
                                                                and financial services at Northern State University in
                                                                Aberdeen through online classes, was selected to receive
BHCB Supports Small Businesses                                  a $1,500 scholarship from the South Dakota Bankers
During Mount Rushmore Road                                      Foundation.
                                                                    French is currently employed as a tax policy
Construction                                                    management analyst with the South Dakota Department
    Mount Rushmore Road construction in Rapid City is           of Revenue. Following graduation in 2017, she plans to
a three-year project that affects one third of the businesses   further her education and career with the State of South
directly each year and everyone indirectly for all three        Dakota by applying for the Governor’s Leadership
years. The road is the premier tourism gateway to the           Program to use toward a master’s degree.
Black Hills and Mount Rushmore.                                     A nontraditional student, French spends her free time
    Black Hills Community Bank (BHCB) in Rapid City             outside of school with her two children and their many
joined with its neighbors and fellow businesses to film         activities within her community.
a public awareness TV commercial inviting residents to              The South Dakota Bankers Foundation annually
shop on the road and to thank people for their continued        awards a scholarship each year to a junior or senior
support during the construction. The four gentlemen on          majoring in banking and financial services at Northern
the monument came down to assist in the promotion.              State University. n

   Director Cordray Visits South Dakota...continued from page 5
        ●● CFPB interpretive rules and bulletins                technical amendments. One attendee at the roundtable
        ●● CFPB small entity compliance guides                  told me that the recent TRID amendments that attempt
        ●● Webinars during which CFPB staff answered            to clarify some of these issues is 293 pages in length.
           specific compliance questions                             The size and complexity of home mortgage
        ●● CFPB guidance at conferences                         regulations and interpretive guidance is daunting
        ●● Their own informal compliance discussions            to many community bankers. It would be well for
           with CFPB staff                                      the lawyers working at the CFPB to understand that
        This “deskbook” is more than 400 pages in length.       indeed, perception is reality. n
        To its credit, the CFPB has tried its own hand at
   clarification of certain informal guidance whether           Curt Everson is president of the South Dakota Bankers
   issued through webinar, compliance guide or                  Association. Everson can be reached at 605.224.1653 or
   otherwise and to make additional clarification and           ceverson@sdba.com.

                                  South Dakota Banker | September 2016 | www.sdba.com                                      19
classifieds
Chief Financial Officer, Plains                  assistance to ensure maximum customer              Director of Credit
Commerce Bank, South Dakota                      service and satisfaction. A bachelor’s             Administration, American Bank
Plains Commerce Bank is looking for an           degree in business administration,
                                                 finance, economics or related field and
                                                                                                    & Trust, Sioux Falls, S.D.
experienced, energetic, self-motivated                                                              American Bank & Trust is looking for
person to fill a full-time chief financial       10 years of progressive responsibility
                                                                                                    a director of credit administration.
officer position. Responsibilities include       experience. All new employees must
                                                                                                    This is an excellent opportunity for the
(but not limited to): Oversees the               pass pre-employment screening.
                                                                                                    right candidate looking to advance in
treasury, budgeting, tax, accounting and         BankWest is recognized as a market
                                                                                                    his or her career and seeking growth
financial reporting activities including         leader in customer care, community
                                                                                                    opportunities with a locally-owned,
staff who work in these areas. Oversees          reinvestment and depth of services.
                                                                                                    successful organization. This position
reporting to regulatory authorities and          Apply at www.bankwest-sd.com, contact
                                                                                                    is responsible for providing ongoing
to the Board including preparation and           your local Career Center or BankWest at
                                                                                                    development and guidance to assure
review of call report. Prepares financial        800.253.0362. All qualified applicants will
                                                                                                    a strong credit administration culture
reports; ensures complete/accurate               receive consideration for employment
                                                                                                    bank-wide and for providing assistance
financial, statistical and accounting            without regard to race, color, religion,
                                                                                                    in maintaining an effective credit policy
records. Analyzes department budgets             sex, sexual orientation, gender identity or
                                                                                                    and managing the credit quality of the
and allocates operating budget. Writes,          national origin. n
                                                                                                    bank’s loan portfolio. Assists the chief
reviews, and distributes financial policy                                                           credit officer and senior credit analyst in
and procedure statements to ensure               Compliance Officer, Hilltop                        the development and implementation of
regulatory and policy compliance.                National Bank, Casper, Wyo.                        ongoing credit training. Responsible for
Qualities of the successful candidate            The compliance officer is responsible              the management of a high-quality loan
include: Experience in the banking               for developing, implementing and                   portfolio as may be assigned. Education:
industry to also include managing staff.         administering all aspects of the bank’s            bachelor’s degree in business, finance,
CPA designation and bachelor’s degree in         compliance management program. This                accounting or related business field or
accounting with five years of experience         position plans, organizes and controls the         equivalent combination of education and
in public accounting. Minimum seven to           bank’s day-to-day administrative, lending          experience; completion of graduate-level
10 years of stable career experience in a        and operational compliance activities;             banking school preferred; and specialized
similar role or capacity in the accounting       collaborates with senior management                credit training. Experience: minimum 10
function of a bank. Understanding of             in the overall administration of these             years of commercial and/or ag lending
regulatory requirements and overall              directives for the bank. Participates              experience and minimum five years of
environment. Preferably understands              in various committees, audits and                  credit administration experience within
the call report process and would be             examinations. Conducts staff training              a financial institution environment
able to complete the bank’s call report.         related to compliance. Advises the board           preferred. Send resume to: HR Manager,
Understanding of interest rate risk              of directors, senior management and                American Bank & Trust, 1820 Dakota
(ALM) and can help manage the bank’s             bank personnel of emerging compliance              Ave. S., Huron, SD 57350. American
investment portfolio. Knowledge of               issues and consults and guides the                 Bank & Trust is an Equal Opportunity
accounting principles and best practices.        bank in the establishment of controls to           Employer, Member FDIC n
Visit www.plainscommerce.com/about/              mitigate risks. Bachelor’s degree from a
careers to apply. Plains Commerce Bank           college or university and at least three           Enterprise Risk Manager,
offers a competitive compensation and            years of related experience or training; or
benefits package. Plains Commerce                the equivalent combination of education
                                                                                                    Plains Commerce Bank, South
Bank is an Affirmative Action/Equal              and experience. Work-related experience            Dakota
Opportunity Employer. Member FDIC. n             should consist of an in-depth background           Plains Commerce Bank is looking for an
                                                 in bank compliance and bank regulations.           experienced, energetic, self-motivated
Chief Lending Officer,                           Educational experience, through in-house           person to fill a full-time enterprise risk
BankWest, Pierre, S.D.                           training sessions, formal school or                manager position. Responsibilities
BankWest, a family-owned business                financial industry-related curriculum,             include but are not limited to the
with a 127-year history, is seeking new          should be applicable to the financial              development, implementation and
people to join its financial services team.      industry. Advanced knowledge of bank               management of an enterprise risk
While each position requires a unique            administration, lending, and operations            management (ERM) program for the
skill set, every member of our team              products and services; related state and           bank; evaluate compliance and identify
shares a passion for customer service            federal laws and regulations, and other            risk and possible fraud situations as
and a sincere interest in seeing our             bank operational policies and procedures           directed by the Board of Directors;
customers succeed. Our chief lending             is preferred. Hilltop National Bank is an          ensure audit and compliance procedures
officer assists the EVP chief credit officer     EEO Employer – Race, Gender, Veteran,              are being carried out company wide;
in managing the business development             Disability. Apply in person at 300 County          and manage a staff of professionals
officers to meet the goals and objectives        Club Road, Suite 307, Casper, WY                   to complete the audit and compliance
of the bank. This employee will provide          82609 or submit confidential resume to             functions of the bank. Qualities of a
leadership, training and technical               HRDirector@HilltopNationalBank.com. n              successful candidate include the ability to

 If you have a job opening at your bank or something to sell, send your classified listing via email to ademers@sdba.com and we will post it on
 the SDBA website, print it in one issue of the South Dakota Banker Magazine and include it in the SDBA eNews. This service is free to member
 banks and associate members (200 word limit). The fee is $50 for nonmembers. Questions, contact Alisa DeMers at 800.726.7322.

20                                     South Dakota Banker | September 2016 | www.sdba.com
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