Page 1


INSIDE This Issue Q1.18 | February 2018

2 President’s Message by Megan Olson, President & CEO of ICBSD

3 Fine Points

From the Chairman Together We Are Stronger by Jaimey Schempp, Chairman of ICBSD

Member Services

From the Chairman For Us, the Season of Giving Never Ends by Scott Heitkamp, Chairman of ICBA

24 Welcome New

4 5


Perspective from Pierre by Dean Krogman, Lobbyist

Federal Delegates Report by Emily Hofer


8 Tax Reform is Here

by Congresswoman Kristi Noem

9 2017 PAC Contributors 10 Rounds Report by Senator Mike Rounds

11 A Year of 12

Accomplishments by Senator John Thune ICBSD in Action

People you Should Know

14 Brandy Smallbrock

Like Snow Business by Twila Schmitt, ICBSD Correspondent

20 Gene Uher Celebrates


P.O. Box 615, Watertown, SD 57201 605.878.3040

18 There’s No Business

Into the Breach by Camden R. Fine, President & CEO of ICBA


Community spirit

 ice President, Member V Relations, Central Region by Twila Schmitt, ICBSD Correspondent

16 Bret Afdahl

 irector of the South D Dakota Division of Banking by Twila Schmitt, ICBSD Correspondent

22 ICBSD Board of Directors

50 Years in Banking

23 Associate Member

Spotlight by The Advantage Network Associate Members

25 Three Simple Marketing Tactics You Can’t Ignore in 2018 by Hannah Merritt, Director of Marketing

27 Cooperative Liquidity Program


13 Webinar Schedule 21 “It’s Like a

Sandwich Cookie” Training Session with Cohen Brown

In the news

28 It’s Time to Celebrate! 30 United Bankers’ Bank

Welcomes John Beerling as Vice President, International Business Development

31 NorthWestern

Financial Review Banker of the Year Larry Ness

32 Banks of the Week 34 2017 Director/Executive

Management Conference Looking Beyond The Past: A New Director for Community Banks Q1.18 | February 2018 1

President’s Message From the president

“Requiring credit unions to pay their fair share would put all financial institutions on a level playing field. Keeping these costly and outdated subsidies out of our federal tax code would provide for a fairer financial marketplace that ensures taxpayer dollars aren’t used to tip the scales.”

Megan Olson, President & CEO of ICBSD

Online communities are a big part of Americans’ lives. Just about everyone has at least one social media account, and many of us are part of various online communities. As the president and CEO of the ICBSD and a taxpayer like most everyone else, I’m concerned that certain tax-exempt financial institutions are looking to exploit these online connections for corporate gain. The head of the National Credit Union Administration, which regulates the tax-exempt credit union industry, recently said policymakers should do away with federal laws that limit membership in credit unions to well-defined local communities in favor of “very broad” definitions that could include online communities. NCUA Chairman J. Mark McWatters’ proposal appears to be the latest example of an industry created to serve individuals of modest means seeking to extend its reach. While times have changed since the Federal Credit Union Act of 1934 authorized credit unions to serve people of modest means with a common bond, the notion of online communities representing a “common bond” between members directly contradicts the credit union industry’s founding principles. How do you even begin to define an online community? Would it include nearly seven in 10 Americans who use social media? The 1 billion worldwide Facebook groups users? Or those individuals who e-filed 122 million tax reforms last year? Imagine soliciting tax-paying citizens to deposit their refunds into a tax-exempt credit union. By this definition, nearly everyone could fall under a “common bond.” The very thought of including online communities is proof of the disingenuous nature of the NCUA’s claims to redefine “common bonds” to reflect “modern times.” This credit union power grab needs to stop. The solution is simple: if the NCUA wants to include virtually all Americans within the common bond, the credit unions they regulate should pay taxes like community banks and everyone else. In truth, today’s credit unions are nearly indistinguishable from traditional banks, yet siphon top-performing small-business loans away from community banks by leveraging their taxexempt status. Meanwhile, they do not contribute funds that could be used to help sustain budgets that pay for teachers, firefighters, police officers and important infrastructure improvements in our community. Requiring credit unions to pay their fair share would put all financial institutions on a level playing field. Keeping these costly and outdated subsidies out of our federal tax code would provide for a fairer financial marketplace that ensures taxpayer dollars aren’t used to tip the scales. This would also add an estimated $25.4 billion to our federal budget over 10 years, which could be applied to helping balance our nation’s budget deficit. Credit union tax dollars would also go a long way in South Dakota communities and communities across the nation.

2 ICBSD 2018

It’s time to put an end to the credit union free ride and power grab. If credit unions want to act like banks and serve virtually all Americans, including online communities, they should become banks and adhere to the same rules and guidelines that govern taxpaying institutions.

FINE POINTS Into the Breach From the president

“ICBA’s lawsuit asks the U.S. District Court for the Northern District of Georgia – Equifax is based in Atlanta – to require the credit bureau to compensate community banks for the costs they will incur in responding to the breach.”

Camden R. Fine, President & CEO of ICBA

ICBA never flinches from its responsibility to stand up for the nation’s community banks, so we didn’t hesitate to file suit on behalf of the industry following the massive data breach at Equifax. Joined by Bank of Zachary in Zachary, La., and First State Bank in Barboursville, W.Va., the lawsuit is designed to address the long-term damage to community banks posed by the breach of 145.5 million consumer records and 209,000 payment cards. The Equifax breach is deeply troubling not only because of its scale but also because of the failure of Equifax to take basic steps to protect itself and consumers from such a preventable catastrophe. The breach – in which hackers entered Equifax’s system through a known vulnerability, gaining access to names, Social Security numbers, dates of birth and other information—was caused by Equifax’s negligence. Quite simply, the credit rating agency failed to heed warnings from security experts to properly secure its US website. Further, Equifax waited nearly six weeks to report the breach to the public. We do not yet know the full extent of the damage, but there is no doubt about the cost to community banks. ICBA’s lawsuit asks the U.S. District Court for the Northern District of Georgia – Equifax is based in Atlanta – to require the credit bureau to compensate community banks for the costs they will incur in responding to the breach. That includes the costs of customer credit freezes, protective measures to deter fraud, and canceling and replacing payment cards. For a longer-term solution, ICBA’s suit also asks the court to require Equifax to improve its security infrastructure to prevent future data breaches, such as employing adequate security protocols consistent with industry standards to protect personally identifiable information and payment card data. ICBA filed this case on behalf of community banks, because Equifax is responsible for an unprecedented breach of sensitive, personally identifiable information. Community banks rely on this information to authenticate customers when opening accounts and conducting online, in-person and over-the-phone transactions. The effect of the breach on community banks, consumers, small businesses and the economy is sure to be substantial. ICBA has been at the forefront in responding to the Equifax breach since the news broke in September. We called on the credit bureau to immediately notify affected customers and card issuers and to provide us with ongoing briefings regarding the breach’s extent. We followed that by releasing tips for community bankers on how to respond to the breach, as well as a customizable letter for community banks to inform their customers.


Now, we are taking our response to the next level by demanding remedial action. Equifax needs to be held accountable for this massive and preventable catastrophic event to ensure the long-term security of community banks and the friends, neighbors and customers we serve. Q1.18 | February 2018 3

Together We Are Stronger

From the Chairman

Jaimey Schempp, Chairman of ICBSD

“My article should have listed all the benefits of an ICBA membership and remind everyone of current banking issues, but I decided my time would be better spent encouraging members that there are community bankers serving all types of cultures in America in unique locations.� Recently during a cold South Dakota winter evening, I was surfing the TV programming and came across Frontline program that featured a New York banking feature. The story was of a community bank called Abacus Federal Savings Bank of New York that serves the people of Chinatown in Manhattan. This is a $250M bank owned by a family of Chinese heritage. The story gained my attention as it discussed the challenges and rewards of a community bank trying to compete against its neighboring Wall Street banks, but meeting its communities needs for banking services. In 2009, Abacus Bank discovered a rogue mortgage loan officer that was fraudulently creating mortgage loan applications to Fannie Mae for his own financial gain. Upon discovery of the fraud, Abacus Bank immediately dismissed the loan officer and notified its regulator. In addition Abacus took the next step and accumulated data on loan files that the mortgage loan officer was involved, organized the data and voluntarily supplied the data to regulators and law enforcement. The next step was not expected by the bank owners. The local law enforcement decided to use Abacus Bank as an example of enforcement in the mortgage lending crisis. Using the data provided by bank and offering the loan officer a plea bargain use him as a witness, charged the owners of the bank with mortgage fraud. For humiliation effect, they paraded the 19 bank staff in front of the cameras chained together when they were indicted. Through the trial, the ownership family many times debated whether they should take an offer of lesser charge rather than fight the legal battle, but decided that their principals and the reputation of bank was worth fighting for. They prevailed and were acquitted. Abacus Bank is again proudly serving its community in Chinatown. Abacus Federal 4 ICBSD 2018

Savings Bank is a member of Independent Community Bankers of America. As I watched the program I was reminded of how important it is that community banks stand together in a system competing with banks that may be too big to fail and too big to prosecute. In the mortgage crisis did not the Wall Street banks originate the majority of the fraudulent mortgages and get the bail out funds. But yet as of the date of the story, Abacus Bank owners had been the only bankers that indicted in the mortgage loan crisis and Fannie Mae has not suffered any financial loss on any of the loans originated by Abacus Federal Savings Bank. My article should have listed all the benefits of an ICBA membership and remind everyone of current banking issues, but I decided my time would be better spent encouraging members that there are community bankers serving all types of cultures in America in unique locations. Many are facing more serious challenges than your own bank, but through your involvement with ICBA and ICBSD we can continue to communicate our message of community banking together.


For Us, The Season of Giving Never Ends

From the Chairman

Scott Heitkamp, Chairman of ICBA

“We have so much to give, and we must continue that spirit throughout 2018 and show the world what it means to be a community bank. We are difference makers every day for so many.” The season of giving may have just ended, but for community bankers, another year of charitable giving has dawned. Giving and doing right by our customers and communities is at the heart of what community banking is all about. No matter the season, we are there – making our communities a better place for our fellow residents and the businesses that call it home. This issue’s Indie Banker and Main Street Focus features are prime examples of community banks’ impressive charitable and nonprofit efforts. And look no further than ICBA’s annual National Community Bank Service Awards, announced in August and covered in the September issue of Independent Banker. From helping devastated communities recover from natural disasters to broadening access to mainstream financial services for underserved communities, this year’s award winners exemplified what it means to be a community bank. The theme of helping your neighbors after a crisis – whether natural or manmade – hit home this year for us at ValueBank Texas. We know if anyone is going to step up amid chaos and disaster, it’s the community bank!

And while most of our bank’s efforts this year have focused on Hurricane Harvey relief, we also support charities and local entities such as the Texas State Aquarium, Driscoll Children’s Hospital and Wounded Warriors of Central and South Texas. I have been on the boards of these charities, and ValueBank Texas has contributed and sponsored golf tournaments, songwriter events and donor walls. There is such a sense of pride that comes from seeing how your bank contributes to the greater good of your community. For example, we are incredibly proud of the role ValueBank Texas served in helping Driscoll Children’s Hospital purchase new equipment for a NICU unit and in helping the Texas State Aquarium expand its space. We’re also proud of the more individualized giving and receiving we do, like spending time with wounded warriors and hearing their stories.

These are the real stories. These are real relationships with people who mean something to our community and our country. I can tell you that there is nothing like playing golf with a wounded warrior who lost a leg fighting for our freedom and experiencing his determination to live a normal life, or seeing the smiles on children’s faces as they walk through our new Aquarium Caribbean wing at the Texas State Aquarium. These are the reasons I get involved. It’s about the outcome: lives and situations changed because of our giving. But it doesn’t have to be about donating a huge amount of money or time. These charities could also use our expertise with finances or our experience with advocating. As community bankers, we have the tools in our toolbox. Just pull them out and use them. We have so much to give, and we must continue that spirit throughout 2018 and show the world what it means to be a community bank. We are difference makers every day for so many. Thank you for all that you do. Best wishes for a bright and successful 2018. R. Scott Heitkamp is president and CEO of ValueBank Texas in Corpus Christi. Follow him on Twitter, @sheitkamp Q1.18 | February 2018 5

Perspective from Pierre

“While it is still early in the game, I anticipate the 93rd session to be productive and collaborative.”

by Dean Krogman, Lobbyist

On January 9th, Gov. Dennis Daugaard delivered his final State of the State address marking the traditional start of the annual legislative session in South Dakota. In his address, Gov. Daugaard laid out some of the major issues we face in 2018 including: the use of nonmeandering waters for recreational use, healthcare, workforce development initiatives, online sales tax, and of course the budget. While it is still early in the game, I anticipate the 93rd session to be productive and collaborative. The Independent Community Bankers of South Dakota is not bringing any bills in 2018; however, we are working with the Secretary of State to draft a bill that will provide guidance throughout the UCC filing process. As we move through the session, here is a breakdown of the bills I will be closely monitoring: HB1028 – Trust Company Administration - Steaming from the Governor’s Trust Task Force and the Division of Banking, this two piece legislation proposes to modify the definition of dividends to ensure trust companies organized as LLCs are treated the same as those organized as corporations. Second, this bill also prohibits certain entities from using “trust” in their name. HB1072 – Simply put, HB1072 is the product of the Governor’s Trust Task Force and is aimed at cleaning up existing trust laws. HB1082 – This is a bill that addresses contracts for deeds in the sale of assets. I don’t expect there to be any opposition. At this point it is not certain this bill is truly needed; however, the prime sponsors say the bill will clarify when the sale of assets is done with a contract for deed. HB1094 – HB1094 is sponsored in part by our own Representative Hugh Bartels. The bill’s objective is to revise certain provisions regarding limitations on licensees engaged in the business of making loans. HB 1050 – Requested by the Bureau of Administration, HB 1050 is a provision to lower interest rates for state agencies in payment of invoices. HB1032 – House Bill 1032, brought forth by The South Dakota Department of Labor and Regulation, aims to add credit unions to the list of entities exempt from required licensing as a real estate broker. Currently, lawyers, property owners, trustees, banks, bank holding companies, trust companies, savings and loan associations are exempt from needing a real estate broker license. HB1032 aims to add credit unions to the list. 605-695-3497

In addition, the ICBSD board of directors recently met with the Secretary of State to discuss the UCC filing system. Both the Secretary of State and ICBSD are working together to help make the system an effective tool for all for users. As always, it is my pleasure to represent our community bankers at the State Capitol. If you have any questions or concerns regarding our current legislation, feel free to contact me.

6 ICBSD 2018

“I cannot even begin to express my admiration for the Community Bankers across the country that I have met. Their stories of community engagement, innovative solutions, and a focus on Main Street are nothing less than inspiring.”

by Emily Hofer

Each new year brings me a sense of wonder. How has another year come and gone? Each year it seems that I pack more and more into my life, even if I tell myself that next year will be less busy. It just never seems to work out like that. 2017 was a great year for ICBA and the Community Banking industry. As your Federal Delegate to ICBA, I spent some time on the road advocating for Community Banks in SD. I cannot even begin to express my admiration for the Community Bankers across the country that I have met. Their stories of community engagement, innovative solutions, and a focus on Main Street are nothing less than inspiring. In March, I started the year off strong with a trip to San Antonio, TX, for the ICBA convention. This event combines education, networking, and a focus on advocacy that is so important in our industry. I always come home with a pocket full of business cards – cards of other bankers from across the country fighting the same fights we are fighting here at home and cards of vendors that offer those innovative solutions to help us help our customers and communities. If you’ve never attended the National

We kept the heat up post-convention with an unprecedented meeting with President Trump and other administration officials at the White House in May. At these meetings, we continued our call for common-sense regulatory relief in order to unleash the full economic power of the Nation’s more than 5,700 Community Banks. The onslaught of regulation and an uneven playing field with non-bank competitors has made doing our jobs harder each year. Community Bankers have fought hard to earn a sterling reputation for outstanding and innovative customer service, smart banking practices, and a commitment to local communities. Mark your calendars for the 2018 Capital Summit on April 8-11. The last week of October, the Federal Delegate Board and ICBA’s Committees met for the Fall meetings. The result of these meetings will direct the legislative and regulatory priorities for ICBA in the upcoming year. This face-to-face engagement with fellow bankers is so important for our industry. It allows us to


Federal Delegates Report

Convention before, I strongly urge you to consider joining us in Las Vegas March 13-17, 2018, for what is sure to be another outstanding event.

hear how our peers across the country are meeting the day-to-day challenges of regulation and competition while still providing the high-quality and unique service of a Community Bank. A year ago I started this column with an optimistic outlook. Washington had been so deadlocked, and the cynical nature of party control seemed so dogged that nothing could pass. However, ICBA has seen several bipartisan successes in 2017. Your advocacy efforts and our industry’s pristine reputation have served us well. Now is not the time to let up – not when it matters most. With the sustained commitment of ICBA, our state affiliates, and each of us Community Bankers, we can and will continue our record of regulatory achievement. Thank you for your continued membership in ICBA and ICBSD, and thank you for giving me the opportunity to serve on the Federal Delegate Board. I will continue to tell the Community Bank story to anyone who will listen! Feel free to contact me at any time if you have questions, comments, issues, etc. I’m always happy to hear from other bankers. I can be reached at ehofer@ or 605-660-4790.

2018 ICBA Capital Summit


Mark your calendars Q1.18 | February 2018 7


Tax Reform is Here

Kristi Noem

United States Representative (R-S.D.)

I’ve told this story often, but it bears repeating because it’s the foundation of what I’ve fought for in tax reform. A while back, I met a young mom in the grocery store. She had a handful of coupons and a cart of groceries. We got to talking about how much costs have gone up.

“ICBA’s lawsuit asks the U.S. District Court for the Northern District of Georgia – Equifax is based in Atlanta – to require the credit bureau to compensate community banks for the costs they will incur in responding to the breach.”

Healthcare, electricity, you name it – all were on the rise. And so, she asked me: “When is it going to get better?” To that mom, I want to say this: 2018 will be better because of tax reform. In South Dakota, the average household income is $54,000. For that family of four, we doubled their standard deduction, meaning the first $24,000 a married couple earns is now tax free. We’re also doubling the Child Tax Credit to $2,000 per child, and we’re pushing the family’s tax rate down to 12 percent. If you crunch the numbers, that the average family of four in South Dakota making $54,000 will go from an $830 tax liability under current law to a $780 tax refund under tax reform. That’s a change of $1,600. And it could be even higher. Families will continue to have access to the Child Care Credit, which I fought alongside Ivanka Trump and others to preserve. The home mortgage interest deduction, the Adoption Tax Credit, charitable contributions, and popular retirement savings options are also retained. Deductions for 529 education savings accounts and medical expenses are enhanced, as is the refundability of the Child Tax Credit. These credits and deductions can have a powerful impact on those we care about, because they put money back into our families and communities, rather than into the greedy hands of Washington. At the same time, this tax reform package is designed to create a healthier economy – one in which wages can rise. Already, we’ve seen a number of businesses respond by announcing they’re moving jobs back to America and giving their employees a much-deserved Christmas bonus. In South Dakota, our number one industry is agriculture, and I’m incredibly proud this tax reform package reflects so many of the priorities shared with me by farmers and ranchers across the state. I was the only farmer sitting at the negotiating table when the final deal was made, but I made sure producers would have access to enhanced expensing tools, interest deductibility, and like-kind exchanges. Additionally, we created a 20 percent small business deduction that will benefit community banks as well as many farms and ranches. While the fight to repeal the un-American Death Tax will continue, I’m glad this bill gives farmers, ranchers, and small businesses some relief by doubling the exemption levels and maintaining the stepped-up basis. I firmly believe Americans deserve more control over their paychecks. People have worked hard for their money, and it’s time the folks in Washington respect that.

8 ICBSD 2018

Thank you for supporting the ICBSD Political Action Committee! The ICBSD Political Action Committee helps provide South Dakota community banks with a strong voice in state politics through contributions to candidates for state elected offices. These contributions help ensure we have a seat at the table when issues affecting your bank are being discussed in Pierre.

Gene Uher


Call me at 605.201.1864

Our thanks in advance for your support of the PAC 100.

Based in Sioux Falls, S.D., serving South Dakota, Nebraska, Minnesota and Iowa

Your $100 annual contribution helps to ensure South Dakota continues to understand the importance for community banking.

Why choose Bell as your bank’s lending partner?

Your checks can be mailed to: ICBSD PAC, PO Box 615, Watertown, SD 57201

Leverage our large lending capacity, up to $20 million on correspondent loans. Our lending limits are high enough to accommodate what you need, when you need it. Commercial & ag participation loans Bank stock & ownership loans Bank building financing

Member FDIC


Business & personal loans for bankers

17224 AD Independent Community Bankers of SD 2018_V1.indd 1/11/18 1 3:14 PM

Q1.18 | February 2018 9


Rounds Report

Mike Rounds

United States Senator (R-S.D.)

In South Dakota, our local banks play an important role in

than $3 billion in assets to raise capital and grow. It also

helping our businesses thrive and our communities grow. Local

includes language that protects the credit of our military

financial institutions help families buy a home, start a new

veterans who are awaiting delayed payments from the VA

business or save for the future. As a member of the Senate

Choice program. Lastly, it provides rural appraisal relief

Committee on Banking, Housing and Urban Affairs, one of

for situations when borrowers apply for a loan of less than

my priorities has been to relieve community banks from the

$400,000 and have trouble finding a qualified appraiser.

unnecessary regulatory burdens imposed on them.

I’m pleased our Economic Growth, Regulatory Relief and

I recently joined a bipartisan group of Banking Committee

Consumer Protection Act has the support of the banking

members to introduce a bill that would improve our nation’s

community, including the Independent Community Bankers of

financial regulatory framework and promote a healthy

South Dakota. Additionally, we’re grateful to ICBSD for your

economy. Since the enactment of the Dodd-Frank Act, which

ongoing input and support as we work to advance legislation

was an overreaction to the 2008 financial crisis, our financial

that will benefit community banks, increase access to credit for

institutions and our economy have suffered. Our proposal

consumers and grow a healthy economy. We look forward to its

begins to roll back some of Dodd-Frank’s one-size-fits-all

consideration on the full Senate floor in 2018.

regulations, which have been disproportionally hurting smalland-medium sized institutions who had nothing to do with the financial crisis. While there is still work to be done, our proposal is a good step toward allowing community banks to expand, and I’m happy that it includes a number of provisions I introduced.

Additionally this Congress, I have introduced a number of different stand-alone bills to help improve access to credit for South Dakotans and reduce the regulatory burden of DoddFrank on local financial institutions so they can better provide loans and other services to their customers. I continue working to move my TAILOR Act forward in the Senate—this bill would

Included in our bipartisan bill is the Home Mortgage Disclosure

require regulatory agencies to take into account the risk profile

Adjustment Act, which provides small banks with data reporting

and business models of individual financial institutions and

relief. The Consumer Financial Protection Bureau (CFPB)

tailor their regulations accordingly. This will help put a stop to

recently announced plans to postpone enforcement of the

the one-size-fits-all approach to rulemaking we’ve seen out of

Home Mortgage Disclosure Act, delaying unfair penalties from

Washington during the previous administration.

being imposed on financial institutions until the economic growth package has a chance to be considered by the full Senate. It also includes relief from Dodd-Frank capital rules that allow banks to count high-quality municipal bonds toward capital requirements. This will be helpful to both banks and local governments that issue debt.

Making sure South Dakota families and businesses have access to credit when they need it is critical as we work to grow a healthy American economy. Community banks are the heart of local communities – and every step we can take to provide you with regulatory relief is a win for South Dakota families and businesses who rely on you to operate. I look forward to

Our legislation also contains provisions of my Community Bank

continue working on legislation that will provide smart, targeted

Access to Capital Act that would free small banks from having

regulatory relief to the banking community so you can better

to go through arduous and expensive tests mandated under

serve your customers and boost South Dakota’s economic

Dodd-Frank and make it easier for banks with less


10 ICBSD 2018



A Year of Accomplishments john Thune

United States Senator (R-S.D.)

“2017 was a year full of accomplishments, and the Senate Republican majority has a lot to show for it. I say it every year, but there’s always more work to be done. I’m looking forward to working with my colleagues to build on the progress we made last year.” The Senate Republican majority made significant progress last year on behalf of the American people. We confirmed numerous executive and judicial branch nominees, rolled back burdensome government regulations, laid important groundwork for the 2018 farm bill, repealed one of the fundamental pillars of Obamacare, and we delivered progrowth tax reform to middle-income South Dakotans. It was a big year. A lot of folks forget that in addition to working on legislative items, the Senate is in a unique position of dealing with executive and judicial branch personnel, too. As the new administration took shape last year, we fulfilled our constitutional role of vetting and confirming nominees, of which 19 nominations, including two cabinet officials and the Federal Communications Commission chairman, came through the Senate Commerce Committee, which I chair. In April, the Senate confirmed then-judge Neil Gorsuch to the U.S. Supreme Court. Justice Gorsuch has always been known for his impartiality and commitment to the rule of law. When we were considering his nomination, I said he was the kind of jurist who called balls and strikes when it comes to interpreting the law, and he’s proven that again since his confirmation.

The Republican-led Senate set records last year for the number of U.S. circuit court nominees we confirmed. Circuit court judges serve lifetime terms on the bench, and they are the last stop in the judicial system before the Supreme Court. In December, we confirmed the 12th circuit court judge of 2017 – the most for any president in his first year in office since the creation of circuit courts in 1891. By getting young and experienced judges who are committed to the rule of the law on the bench today, we can ensure the judicial system is in good hands for decades to come. Slashing red tape has also been a priority in the Senate. Throughout 2017, we used the Congressional Review Act – a legislative tool that allows Congress to weigh in on rules and regulations issued by executive branch agencies – to roll back more than one dozen heavyhanded government regulations that were implemented during the Obama administration, including a Consumer Financial Protection Bureau rule regarding pre-dispute arbitration clauses. We closed 2017 with what will be one of the greatest accomplishments during my time in Congress. We passed sweeping reforms to the tax code for the first time in more than three decades. These reforms will bring some much-needed relief to middle-income South Dakotans who

have been looking for more opportunities to get ahead. Tax reform will lower tax rates for all Americans, and it will double the standard deduction and the child tax credit. Taxpayers will begin to see the benefits from these reforms in their paychecks early this year. Importantly, this legislation will also reduce the tax burden on businesses in communities across South Dakota. On the agriculture front, with the current farm bill expiring this year, I spent much of 2017 laying the groundwork to ensure the next farm bill is done right and on time. Our hardworking farmers and ranchers deserve it, and I am working hard to ensure that Congress delivers. Also in 2017, we repealed Obamacare’s unpopular individual mandate, which forced Americans to purchase a product they might not want or can’t afford, and we finally opened a small portion of the Alaska National Wildlife Refuge to oil exploration that will lead to more American jobs and greater energy independence for the United States. 2017 was a year full of accomplishments, and the Senate Republican majority has a lot to show for it. I say it every year, but there’s always more work to be done. I’m looking forward to working with my colleagues to build on the progress we made last year. Q1.18 | February 2018 11

ICBSD is proud to partner with ICBA and our state association partners to

Urge Congress to Bring Community Banks the Relief We Need!

12 ICBSD 2018

Q1.18 | February 2018 13

“I love to learn more about each bank and then be able to share firsthand what the ICBA is working on in Washington, DC for community banks,...”

Brandy Smallbrock Vice President, Member Relations, Northwest Region, ICBA


you should


Most skilled jugglers can keep three, four or five objects in seamless motion at one time. Brandy Smallbrock, ICBA Northwest Region Vice President for the Independent Community Bankers of America, keeps activities in a dozen states in constant motion. “To say I’m busy would be an understatement,” said Smallbrock, who ensures that ICBA members have the information and tools they need to make the most of their memberships. As an ICBA member relationship officer for 12 states, Smallbrock brings a wealth of experience to the organization. Prior to joining ICBA in 2013, she served as a sales rep for Wolters Kluwer Financial Services, which provides risk management, compliance and audit

by Twila SchMitt ICBSD Correspondent

solutions for banks. She also previously served as a sales and service manager for a large national bank. While her home base is in Sartell, Minnesota, her vast coverage territory ironically doesn’t include her home state at this point. Smallbrock spends a fair amount of time traveling – much of it to Minneapolis-St. Paul International Airport. “On a perfect day, the airport is only an hour and 15 minutes away,” she said. “But I could tell stories all day about travel mishaps.”

14 ICBSD 2018

Fortunately, the majority of her flight connections are seamless. Smallbrock, who holds the distinction of being the first woman to hold an ICBA member relations officer, is one of six ICBA member relationship officers who cover the United States, Puerto Rico and Guam. She looks forward to visiting with members and prospective members in person whenever possible. ICBA is the largest banking trade in the country, with nearly two-thirds of community banks belonging to the association. While advocacy is the top driver for membership, ICBA has also assembled multiple vendor relationships with top industry providers. “Our partners all offer unique pricing and service enhancements to our member banks,” said Smallbrock. “Combined with our consultative approach, ICBA members outperform non-member banks on both an ROA and ROE basis,” she added. As she visits with prospective members, Smallbrock said the fact they will likely find the most surprising is that ICBA lobbies and advocates for all community banks – regardless of membership status.

While some might find the rules, regulations and topics she covers daunting, Smallbrock said her role as an educator has even been evident in her own home. She and her husband Curt Smallbrock (VP/Commercial Lender for Pine Country Bank in Rice, Minnesota) have three children. “My kids already know more about banking than they ever wanted to know,” she said of Ethan (9th grade), Emily (8th grade) and Cade (7th grade). When the Smallbrocks have free time, they like to travel and spend time at the lake. Their favorite place to be is at their seasonal campsite near Glenwood, Minnesota – the city where ICBA was founded. As 2018 gets underway, Smallbrock looks forward to using her knowledge to help member banks address industry challenges and meet individual business goals. She encourages as many banks as possible to send a representative to the ICBA national convention March 13-17 in Las Vegas for the opportunity to hear many outstanding speakers and learn even more about what ICBA offers. “In short, ICBA helps its members grow and prosper,” she said. “There’s no better time than right now to become involved.” Q1.18 | February 2018 15

“For some, change is the enemy. For us, it’s a part of life.”

bret afdahl Director of the South Dakota Division of Banking


you should

KNOW by Twila SchMitt ICBSD Correspondent

There’s a reason that Bret Afdahl arrives in his office by 7:00 a.m. most days. “You have to stay on top of changes in law and changes in rules,” said Afdahl, Director of the South Dakota Division of Banking based in Pierre. “For some, change is the enemy. For us, it’s a part of life.” Afdahl was appointed Director of the South Dakota Division of Banking in May 2011 after serving as Counsel to the Division since October 2006. Prior to joining the division, Afdahl worked on the legal staff at the Department of Revenue and Regulation on a variety of tax and compliance issues. The primary mission of the South Dakota Division of Banking is to charter, license, regulate, supervise and provide guidance to South Dakota financial entities in order to instill consumer confidence, protect consumer interests and promote economic stability through a common sense, efficient and risk-focused approach. With the 2018 South Dakota Legislature now in session, Afdahl spends at least a portion of each day at the State Capitol building.

16 ICBSD 2018


“It’s important to hear those conversations in the hallways,

A graduate of Northern State University with a degree in

as well as keep those interactions between our office and the

political science and business, as well a graduate of the

Governor’s office open,” he said.

University of South Dakota School of Law, Afdahl also holds

The Division of Banking, under supervision of Afdahl, is administered under the direction of the Department of Labor

a certification as a Fiduciary and Investment Risk Specialist (CFIRS) from the CANNON Financial Institute.

and Regulation. In addition to the Director, the Governor

While Afdahl’s legal background has served him well, he also

appoints a Banking Commission consisting of five members

said his service in the United States Army (1992-1994) and

As the executive officer of the Commission, Afdahl complies with and enforces orders and directions of the Commission.

several years working hands-on in the construction industry also prepared him to work with people from all walks of life.

He acts on applications to organize a bank, change control,

“I’m pretty blue collar at heart,” said Afdahl, who along with

merge, change location, and establish or close branch banks.

his wife Melissa have three boys, Colton (5th grade), Rylan

Afdahl’s office has 31 employees, including two deputy

(2nd grade) and Bennet (4 years).

directors who assist him in covering the supervision of banks

When he’s not in the office or on the road, Afdahl can be

and trust companies across the State of South Dakota. His

seen shuttling his boys to their extra-curricular and social

responsibilities also find him traveling extensively around the

activities. He’s also a sportsman who enjoys the many


hunting and fishing opportunities that the Pierre area offers year round.

“I try to meet with boards of directors following each bank exam,” he said. As he looks ahead to 2018, Afdahl is hopeful that he’ll see some positive changes in the industry, including streamlining processes at the state level. He said one concerning trend has been the federal regulatory burdens experienced by banks across the state. “With our demographic trends and some of our communities becoming older and smaller, it becomes more and more difficult for our banks to serve the community and meet all of the regulatory demands at the same time,” he said. “Our banking system has been so resilient and very

“As he looks ahead to 2018, Afdahl is hopeful that he’ll see some positive changes in the industry, including streamlining processes at the state level.”

methodical. Our banks just can’t take risks like non-banking entities do,” he added. Q1.18 | February 2018 17

First National bank of frederick

There’s no business Like Snow Business

“When you know each of your customers by name, banking becomes more than just a way of doing business.” by Twila SchMitt ICBSD Correspondent

When you know each of your customers by name, banking becomes more than just a way of doing business. Now representing the fifth generation of the Campbell family to oversee operations at First National Bank of Frederick, Scott and Teresa Campbell know their customer’s names – and much, much more. “We’ve done business with three or four generations at this point,” said Scott, President of First National Bank of Frederick. “We really know every one of our customers.” “In fact, we can recognize most of their voices on the phone,” added Teresa, who has held a variety of titles during her 11 years at the bank. Tucked into the northeast corner of South Dakota, Frederick (population 250) has an active development corporation, a Community Store and a Blue Ribbon Award-winning school. First National Bank of Frederick has been an independent community bank on Frederick’s Main Street since 1882. While they may not have an ATM machine or a drive-through window, what they do offer more than makes up for it. In fact, people come to First National Bank of Frederick for things that aren’t even bank related. Because Scott is an EMT, he recently performed a blood pressure check on a customer.

18 ICBSD 2018

“She wasn’t feeling very well, but told me I couldn’t tell her daughter,” he said. As it turned out, the woman needed further medical attention and Scott wouldn’t let her leave without calling her daughter. The customer called her daughter and reported that she was “being held hostage by the bank!” First National Bank of Frederick currently has five on staff, not including Sadie, the Golden Retriever who is a regular and enjoys greeting longtime customers. First National Bank of Frederick may, or may not, currently be the smallest of 66 community banks in South Dakota. “Bruce Haerter (President of Farmers State Bank in Hosmer) and I go back and forth on who is the smallest,” he said. With a typewriter still clicking away in the background, those activities viewed as everyday business in Frederick may be puzzling to outsiders. Scott, Teresa and others at the bank, still smile when they recall the “big city” examiner who spent the day at First National Bank of Frederick. “If you don’t live in a small town, you probably don’t even go into a bank,” said Teresa. “She couldn’t get over how we knew everyone’s names.” Karen Brotzel, who has worked at First National Bank of Frederick for the past 32 years, added that people also come in to catch up on the news – and to socialize.

“It’s a different experience here. People trust us,” Karen added. Scott, like his father before him, grew up in the banking business. “You have to have a passion for it,” he explained. “Here you don’t have someone in charge of each department. I have great help, but it’s a lot on your shoulders.” He said belonging to ICBSD has been invaluable for the resources the organization provides, as well as for the connections with other bankers.

1932 upon graduation from the University of South Dakota, and served continuously until his death in 1967.

Campbell said he’s certain that his greatest concern is one shared by many of his peers – the compounding of regulations required for small community banks.

After his death, his son Robert W. Campbell, who joined the bank in 1963, was elected president. He still serves as Chairman of the Board, and stops by the bank most days.

“Independent audits drastically affect our profitability and earnings,” he said. While he looks ahead to the future, with his sons Casson and Dane both interested in banking, he feels much can be learned by appreciating how First National Bank of Frederick arrived at where it is today. The bank was originally opened May 18, 1882 by two brothers J.T. Dow and J.L Dow, as a private bank. Business was first carried on in a small, frame building (not far from the existing location). Three years later, in 1885, the bank was purchased by John Curtis Simmons, a native of Saratoga County, New York. Under his management, the business was chartered as state bank. In 1906, it was nationalized and took the name “First National Bank of Frederick, SD.” In 1909, Simmons sold his interest in the bank to F. C. Benjamin. Judge A.W. Campbell of Aberdeen and his son, Joe C. Campbell bought Benjamin’s interest on January 1, 1916. Since that time the bank has remained largely under the control of the Campbell family. After the death of J.C. Campbell in 1958, his son Robert K. Campbell served as president. Robert K. had joined the bank in

Scott Campbell began working at the bank in 1987 following his college graduation and became President in 2009. The history of the Campbell family lineage is proudly displayed on a wall of portraits directly across from the bank’s two teller windows. The Campbell family’s contributions to Frederick are also part of the community’s past and present. One obvious example happens any time the snow falls. For the past 13 years, Scott has operated the snow plow for the City of Frederick. As a member of the town board, he keeps the keys handy and simply walks half a block from the bank to the garage where the snow plow is housed. “It usually just takes three hours or so,” he said. “And I make sure the bank gets cleaned up nicely.” While the Campbells realize that customers have a myriad of other banking options these days, they feel that the small things that set them apart from big banks will continue to be their best draw. “I’m stubborn enough that I want to continue to be an independent bank,” said Scott. “I can’t imagine doing this if I didn’t enjoy it this much,” he said. Q1.18 | February 2018 19

“I have had fun working with a great team in Bell’s correspondent lending department to give fast, professional service. Above all, it’s been an opportunity to develop personal relationships, and that’s what banking’s all about. I just love it.”

Gene Uher


Gene Uher’s career in banking has taken him many places over the past 50 years. He started out in Lincoln, Neb., eventually moved to Omaha, Neb., and then to Sioux Falls, S.D., where he is now based and works as a senior vice president and business development officer for Bell Bank, building correspondent relationships with banks all over South Dakota as well as in Nebraska, Minnesota and Iowa.


in Banking

As one of the first in the savings and loan industry to offer mobile home lending in the early 1970s, Gene was asked to serve on a national committee that dealt with savings and loan installment credit, and he had the opportunity to work on a U.S. Senate panel for mobile home lending. He has led departments and headed banks, working as both president and chief operating officer. Gene has been very involved in his communities over the years, serving as board president for organizations that benefit the arts, children’s causes and many other charities. Working in a bank is also where Gene met his wife of 48 years, Brigitte, with whom he had two children. They also have two grandchildren. What has motivated him throughout his career and kept him in banking past when he could have retired are the relationships he builds. “It really boiled down to relationships,” Gene notes. “I can’t tell you how much that means in banking.” The best business decision Gene says he made was accepting an offer from Bell’s board chairman, Richard Solberg, and president and CEO, Michael Solberg, eight years ago to work in Bell’s correspondent banking department.

“It was absolutely the best job in banking I’ve ever had,” Gene remarks. “I have had fun working with a great team in Bell’s correspondent lending department to give fast, professional service. Above all, it’s been an opportunity to develop personal relationships, and that’s what banking’s all about. I just love it. It’s probably one of the biggest reasons I continued to work past retirement age. It’s just been a great way to finish off my career in banking.” 20 ICBSD 2018


Y T I S R E V I UN Ser ies r a n i m e S l a Education

to pic:

when: 22nd

ruary Thursday, Feb 10am to 5pm


o Crossroads H enter C t n e v E n o r u H

a ”It’s Just Like okie” Sandwich Co ct customer

ate the perfe re c to It’s w o h Learn ing training “ m o c p u r u o h d interaction wit okie” presente o C h ic w d n a Just Like a S ector of the ir D , th ffi ri G by Cynthia rk, results netwo performance ment Group. e g a n a M n w Cohen Bro d n is designe io s s e s g in in This tra ens accounts p o o h w e n o for any h level at the branc

Presented by:

Register Today! $100 pEr aTTEnDEE Session is limited to 50 registrants.

Q1.18 | February 2018 21

Board of Directors


Jaimey Schempp Chairman

Preston Steele Vice Chairman

Monte J. Troske Secretary & Treasurer

Hugh Bartels Immediate Past Chairman

President/Senior Loan Office, Premier Bank

Executive Vice President, American Bank and Trust

President, Farmers State Bank

Director, Reliabank

Alc este r


Tu rton

Wat er town

Scott Campbell Past Chairman

Emily Hofer ICBA National Director

Dick Behl Director

Kelly Eiseman Director

President, First National Bank

Chief Financial Officer, Merchants State Bank

CEO & President, The Farmers & Merchants State Bank

Vice President, First State Bank of Roscoe

F r ed eri ck


Scot land

Ros coe

Dean Schwartz Director

Barclay Smith Director

Roger Weber Director

Brian Gilbertson Director

President, Campbell County Bank

Market President, Farmers State Bank

Market President, CorTrust Bank

Senior Vice President, The First National Bank

H er re i d


Sioux Fall s

S i oux Fa ll s

22 ICBSD 2018

Member Spotlight

Remind cardholders MEMBER they can actively work toSPOTLIGHT mitigate fraud. BY Karen Bos-Carey Network Marketing Coordinator, The Advantage Network Although we can’t prevent compromises, the good news is Checkcards are covered by several layers of security to mitigate fraudulent transactions. • The Security Code on the back of Checkcards provides Internet and phone security by verifying the cardholder is in possession of their Checkcard. • Verified by Visa and MasterCard SecureCode are free services that confirm cardholder identity with a personal password or code when making an online transaction. • Chip Checkcards, used at a chipenabled terminal, generate a onetime code for that transaction. This makes it nearly impossible for fraudsters to use stolen transaction data to create a counterfeit card. • Fraud detection and mitigation tools are becoming standard for issuing institutions. In addition, both MasterCard and Visa offer a Zero Liability policy which applies to all transactions that route through their network so cardholders are protected in case of a lost card or fraudulent use. Unfortunately, fraudsters are still able to obtain card information through methods like phishing, vishing, skimming, and malware. They then use the information to make fraudulent transactions by creating counterfeit cards or making online purchases. Did you know that the most important fraud fighter is the cardholder? About 50% of fraud is found by the cardholder. Following is good information you can

share with your cardholders to encourage them to become actively involved in mitigating Checkcard fraud. • Daily limits for purchases should be set at an appropriate amount for your spending habits. The daily limit can be temporarily raised for vacations, special purchases, etc. where a higher daily limit is needed. • Sign up for Transaction Alerts through your mobile banking or at Visa Purchase Alerts (whichever your institution offers). • Friendly fraud (the fraudster knows the victim – a relative or friend) accounts for about 10% of fraud. Don’t leave confidential information out in the open. • Don’t give out personal private data over the Internet or phone unless you initiate the interaction with a trusted source. Do not respond to emails, phone calls or text messages that ask for sensitive information. • Do not to give out card and PIN information. Do not write your PIN on your card or put it in your wallet. Do not use a PIN that can be found in your wallet (birthdate, part of social security number, house number, etc.). • Social networking sites are becoming a hazard for information breach. Do not reveal any sensitive personal information on Facebook, Twitter or other social networking site. • Do not respond to text messages, phone messages, emails or pop-up windows that offer a gift in exchange for providing card information. There

are so many scams circulating, it’s hard to stay current; in general DO NOT respond to ANY requests for personal and/or financial information. • Do not provide your card information to any web site that is not a secure site. A secure website will have an “s” after the http in the URL address bar; also look for the padlock symbol. Double click on the padlock and the SSL certificate will appear. • Install and regularly update antivirus, anti-spyware software and keep computer systems updated. • Be aware of those around you…don’t let others overhear sensitive financial or personal information. • Shred documents with sensitive information prior to disposal. • Select more complex passwords for your online accounts. Also avoid using the same password for all accounts.

Other resources to check out: Federal Trade Commission (FTC) Identity Theft Hotline: 877-ID-THEFT Social Security Administration’s Fraud Hotline: 800.269.0271 or Credit bureau fraud hotlines • Equifax: 800.525.6285 • Experian: 888.397.3742 • Trans Union: 800.680.7289 Q1.18 | February 2018 23

New Associate



ReliaMax Reid Mohen, Director of Banking Partnership 2300 East 54th Street, Sioux Falls, SD 57104

Cohen Brown Management Group, Inc. Cynthia Griffith, Senior Results Consultant 11835 W. Olympic Avenue #920, Los Angeles, CA 90064

Bankers’ Bank of the West Lee Anderbery, Vice President Correspondent Services 411 S. 13th Street #100, Lincoln, NE 68508

Colliers International Bruce Nell, Executive Managing Director 8800 Lyra Drive #650, Columbus, OH 43240

FiNet Rick Camardo, President 7355 California Avenue, Boardman, OH 44512 24 ICBSD 2018

Three Simple Marketing Tactics You Can’t Ignore in 2018

Hannah Merritt ICBSD Director of Marketing

Digital marketing has never been so important! And yet, financial marketers are faced with tremendous challenges: 1. reach customers, 2. educate them about an institution’s complex and detailed product offering, and 3. scale that message. That’s easier said than done. In order to succeed, financial marketers need to position themselves as an expert guide who can help customers navigate the complex, financial world. Marketers needs to look beyond SEO, and email campaigns (although these are still very relevant!) and grab customers attention through new, digital tactics. Here are three simple tactics to employ in 2018:


Be Social!

Serving people’s financial needs requires trust and regular communication. Facebook is a great place to connect and engage with your audience. If your bank doesn’t have a Facebook page, make this your resolution for 2018! Community banks are an integral part of our communities, and there is no better place to demonstrate this than on Facebook! Creating engaging and relevant content is easy if you follow the 80/20 rule. 80% of your content should be entertaining, educational or influential. Why, you ask? Because users don’t want to be bombarded by sales pitches! Instead, share photos or stream live from a community event your bank is volunteering at. Photos and live streaming are great ways to engage with your audience, show common interests you share and earn their trust. Sharing news articles, inspirational quotes and (appropriate) memes are all great ways to engage with your audience. The other 20% of the content you post should include a persuasive call to action. When working on the 20% of content that deals with your financial brand, also include information that benefits your audience. Include a discount, add a special offer, provide useful statistics, etc. Make sure you integrate a persuasive call-to-action that inspires your audience to learn more about your bank so it possibly leads to a conversion in the future. A call to action can be as simple as, “Contact us Today!” with a link to your website contact page.


Engage on the go consumer with short form video

Take a look around, and you’ll see it. Consumers are glued to their smartphones! They’re engaging with digital content 24 hours a day, seven days a week, 365 days a year! Digital content has changed the dynamics of content marketing. In order for digital marketing to be successful, financial marketers need to understand what each individual consumer wants, when they want it and how they want it. One of the most effective forms of content marketing is video marketing as it provides consumers content, convenience (they can take it in no matter where they’re at) and entertainment all at once. Consider this statistic: according to Insivia, viewers retain 95% of a message when they watch it compared to 10% when reading it in text format. For this exact reason, video is an excellent medium to use to educate consumers on complex concepts. It is also a great way to humanize your brand and communicate more intimately with your customer.


Use Live Streaming to Bring Experts to Your Audiences

If traditional scripted videos aren’t your style, you can engage with your audience ‘in the moment’ with live-streaming. Live streaming allows viewers to engage in real time with popular influences or internal experts without being limited by geographic location. As mentioned in point number one, video is an excellent way to communicate complex concepts and live-streaming is no exception! In fact, research shows that live streamed videos on Facebook Live get viewed 3 times longer than a pre-recorded video. As an added bonus for marketers, data can be collected to understand engagement which can be a tremendous help when optimizing your marketing strategy for future use. Instead of hoping your customers will travel and/or spend money to hear from your key financial experts or popular influencers, why not shift to online conferences and presentations, where they can attend at a time and place that’s convenient to them? If you’re looking for a compelling way to build trust with your audience, a live video is a great place to start. Q1.18 | February 2018 25

26 ICBSD 2018



Cooperative Liquidity program

Are you in? The ICBSD/ICBND Cooperative

ICBSD/ICBND is responsible for

Liquidity Program (“Liquidity Program”)

maintaining and communicating the

is a cooperative bank-to-bank network

Liquidity Program member contact

established to provide an additional

information. Participating banks are

funds management tool for ICBSD/

not legally bound to provide funding or

ICBND member banks. ICBSD and

even respond to requests as part of their

ICBND provide a communication link

participation in the Liquidity Program.

between Liquidity Program members

There is no fee assessed by ICBSD or

who have available liquidity with those

ICBND in conjunction with hosting

members who have short-term funding

the Liquidity Program and all funding


terms, pricing, documentation and liquiditynetwork

other conditions are negotiated directly between participating members. The Liquidity Program is tested at least twice per year to assure its effectiveness as a source of funding and to validate the availability of funds for participating members. The Liquidity Program is open to all ICBSD and ICBND member banks. To become a member, visit liquiditynetwork.

New Bank Member Benefit: Complimentary Digital Marketing Materials! Let’s face it: sometimes we need a little motivation to start a new beginning! Managing a social media page can seem like a daunting task, especially if your plate is already full! As your partner in community banking, we are here to offer you support and motivation! An important part of brand recognition and community banking education starts right in your own bank! For this reason, we’re excited to announce complimentary marketing materials are available for your use in print and digital formats, as a member benefit! Simply submit the marketing request form on our website. Once we receive your form, we will customize the ad(s) of your choice with your logo, and return high resolution files for you to use! It is our goal that together, we can harness the power of digital marketing to educate consumers on the importance of community banking!

To view the ads, please visit: Q1.18 | February 2018 27

Future Bank Leaders Recognized


CELEBRATE Join us in congratulating our fellow community bankers on their recent accomplishments!

Aberdeen, S.D. – Joe Senger, president and CEO of Dacotah Banks, Inc., recently complimented and recognized graduates of the company’s Academy class. The Academy was developed to prepare individuals for future leadership roles as part of the bank’s succession planning. Dacotah Bank’s Talent Management Department in collaboration with MDA, a Minneapolis leadership consulting firm, guided participants through individual development, leadership skill building, teamwork, and action learning projects. The projects were drawn from Dacotah Bank’s strategic plan. Each Academy team researched and presented viable solutions to management. Senger stated, “I am very proud of each of the Academy graduates, Dacotah Bank’s

featuring.... • Dacotah Bank • BankStar • First National Bank of Sioux Falls

future leaders. The time invested by the participants, their mentors, and the Talent Management team will certainly provide rewards long into the future. The results of their project work and the discovery of their new ideas have already reaffirmed Dacotah Bank is an employer of choice and a primary source of financial solutions for clients.” The following employees graduated from Dacotah Bank’s Academy – Melissa Altfillisch, Insurance Operations Manager, Clark, SD Jason Collins, Business Banker,

send your happenings to:

Rapid City, SD Ryan Fjeldheim, Manager of Sales and Cash Management, Aberdeen, SD Amy Gruman, Direct of Credit Operations, Aberdeen, SD

28 ICBSD 2018

Kelly Hanson, Agricultural Banker, Sisseton, SD Stacy Kramer, Director of Treasury, Aberdeen, SD Tyler Marthaler, Business Banker, Valley City, ND Paul O’Neil, Agricultural Banker, Brookings, SD Chad Ringgenberg, Director of Technology, Aberdeen, SD David Sandvig, Trust and Wealth Management Advisor, Aberdeen, SD Jeana Sayler, Agricultural Banker, Mobridge, SD Garrett Schweitzer, Agricultural Banker, Lemmon, SD Jerry Tveidt, Director of Credit Risk, Aberdeen, SD Jodi Vander Hoek, Director of Internal Audit, Aberdeen, SD Jared Vilhauer, Business Banker, Sioux Falls, SD

Prior to joining BankStar, Bruce was

certificate and is a licensed member of

the Chief Accounting Officer and Vice

the SD Board of Accountancy.

President/Controller for HF Financial Corp./Home Federal Bank and a Finance Manager for the Sanford Health Plan in Sioux Falls, SD. He has extensive experience in financial management and reporting, regulatory reporting, process improvement and automation, and federal and state taxation.

Mr. Hanson has participated in coaching youth sports, church activities, golfing, music, and an active volunteer of the community. He has also been active and certified as a Foster Parent through Social Services. He is looking forward to establishing himself in the community and becoming an active participant.

“We are pleased and excited to have Bruce as part of our BankStar team,“ said Chuck Hegerfeld, CEO and President. “We look forward to utilizing Bruce’s extensive knowledge and

First National Bank of Sioux Falls You could say First National Bank in Sioux Falls has a few animal lovers

BankStar Welcomes Bruce Hanson

experience in helping us continue to serve our customers and communities.”

at their bank! More than 20 FNB

Bruce Hanson has joined BankStar Financial as Vice President/Chief Financial Officer. He brings an extensive history of management skills and banking experience to BankStar.

A native of both Clark and Toronto, SD,

resources to make a donation to the

Mr. Hanson attended and graduated

Sioux Falls Area Humane Society. The

from the University of South Dakota

fleece that was donated by employees

with a bachelor’s degree in Accounting.

was then cut and hand tied to make fun

He also currently holds an active CPA

crate blankets for the animals!

employees donated their time and

Q1.18 | February 2018 29

John Beerling

“Beerling is a veteran in the industry with more than 20 years of experience with international markets and foreign exchange.”

United Bankers’ Bank Welcomes John Beerling as Vice President, International Business Development Bloomington, MN – William C. Rosacker, President and CEO of United Bankers’ Bank (UBB) is pleased to announce the addition of John Beerling as Vice President of International Business Development. Beerling is a veteran in the industry with more than 20 years of experience with international markets and foreign exchange. Prior to joining UBB, he managed sizeable portfolios at two of the largest banks in the nation. In his new role, Beerling will spearhead the development and growth of UBB’s international services, particularly foreign exchange wires. His keen understanding of a wide-range of international products brings considerable value to the products and services line at UBB. John Peterson, Executive VP and Chief Marketing Officer shared, “John’s input and expertise will strengthen the core of our services so we can continue to provide just what community banks need to thrive in the banking industry. He’ll play a vital role in effectively presenting international banking options to our customers.” Beerling holds a Bachelor of Arts Degree in Economics & Business Administration and also earned his MBA with an emphasis in Finance from the University of St. Thomas, St. Paul, MN.

About United Bankers’ Bank Headquartered in Bloomington, MN, United Bankers’ Bank is the nation’s first bankers’ bank, and a full service provider of correspondent banking services to community banks in: Minnesota, North Dakota, South Dakota, Montana, Nebraska, Indiana, Iowa, Wyoming, Idaho, Ohio, Oregon, Washington, Michigan and Illinois.

For more information please visit 30 ICBSD 2018

NorthWestern Financial Review


Larry ness

Chairman and CEO of First Dakota National Bank of Yankton

Minneapolis, Jan. 3, 2018 – Larry Ness, chairman and CEO of First Dakota National Bank of Yankton, S.D., has been named 2018 Banker of the Year by NorthWestern Financial Review magazine. Bell Bank partners with NorthWestern Financial Review as program sponsor

“Ness started working at First Dakota National Bank when it was on the verge of failing and turned it into one of the nation’s leading agricultural lenders and one of South Dakota’s leading financial institutions.”

to honor the 72-year-old banker. Ness started working at First Dakota National Bank when it was on the verge of failing and turned it into one of the nation’s leading agricultural lenders and one of South Dakota’s leading financial institutions. “As chairman and CEO, Ness is reaping the rewards of a lifetime of work,” says NorthWestern Financial Review publisher Tom Bengtson. “Ness shares many leadership traits with previous Banker of the Year selections, including having a knack for innovation, aggressively recruiting talent, recognizing opportunities in tough times, being engaged in helping the community, and gratitude. “In nearly 35 years at First Dakota, he has hired the right people, strung together a series of savvy acquisitions, built a culture of decisiveness and fun by leading and delegating, brought his three sons into the bank, built the nation’s 38th largest ag loan portfolio, won the respect of his community by giving back time and treasure, and encouraged employees, customers and students to make the most of what they have.” Prior to landing the presidency at First Dakota National Bank in 1983, Ness worked four years as an examiner at the Office of the Comptroller of the Currency, and he worked as a banker in Mitchell, S.D., for seven years and in Volga, S.D., for two years. Robert Stephenson, who joined First Dakota National Bank in 1996 and became its president in 2010, said Ness, “regularly provides the inspiration needed for things to happen in the Yankton community.” Stephenson cited the Yankton United Way and Yankton Area Progressive Growth fund drives as examples. This is the sixth year in a row that the Fargo, N.D. based Bell Bank has provided sponsorship for NorthWestern Financial Review’s Banker of the Year program. Begun in 1989, the Banker of the Year program is one of the most popular regular features appearing annually in NorthWestern Financial Review, which serves the commercial banking industry. Ness is the magazine’s 30th Banker of the Year selection. His is only the third selection from the state of South Dakota. NorthWestern Financial Review reaches more than 3,000 commercial banks in the Midwest. It is published by Minneapolis-based NFR Communications Inc. Additionally, the company produces the, which covers the activities of the Consumer Financial Protection Bureau, and, a subscription service that tracks bank performance and acquisition data. NFR Communications also provides management services to the Bank Holding Company Association.

31 ICBSD 2018

Q1.18 | February 2018 31


Bryant State Bank

Heartland State Bank

BRYANT, SD – Bryant State Bank has been in business for 102 years, and became family owned in the early ‘80’s. They employ 7 individuals, and are proud to be part of the revitalization of main street businesses like Fairchild’s Beans & Creamery, Bryant Cinema and Ward’s. When you bank local, you’re reinvesting in your community!

Redfield, SD – Heartland State Bank in Redfield has been in business since 1909. They have four locations and 21 employees. Their employees are active in the Chamber of Commerce, church boards, the hospital board and coaching local youth sports teams! They’re proud to be a supporter of economic and community development, and they are known for giving away t-shirts that say “GOT BANK?” at sporting events!

Learn more about Bryant State Bank here at:

Learn more about Heartland State Bank here:


Farmers State Bank of Turton

Citizens State Bank

Turton, SD – This bank is owned and operated by the 3rd generation Troske family, and is located in its original building that dates back to 1915! They have everything to offer, including a guard dog named Jake! Every morning, Jake follows his owner and bank employee, Molly, to work. While Molly is busy helping customers, Jake is there to greet them at the door, and nap in the sunshine!

Arlington, SD – Citizens State Bank has three locations in Arlington, Sinai and Castlewood. They have 19 employees and have been in business since 1901! Customers mark their calendars annually for their famous brat feed which is held in conjunction with Arlington, Castlewood and Sinai’s homecoming festivities. Customers have said they serve the best brats around! The bank serves 900 brats every year, which are made locally by the Castlewood Locker. Every year customers look forward to their new pair of Citizens State Bank leather farm gloves, which are made locally in Huron, SD.

Learn more about Farmers State Bank here:

Learn more about Citizens State Bank here: 32 ICBSD 2018


Roberts County Bank

People’s State Bank

Sisseton, SD – They have been the only independent bank in Sisseton for 150 years, and are proud to have employees with tenure of 50 years or more. Sisseton is a unique community where collaboration truly happens! The success of the Sisseton community is a result of the rich history of Dakota People and homesteaders who worked together to do great things. Roberts County National Bank of Sisseton, along with the Sisseton community, are big supporters of the arts including the South Dakota Symphony. Sisseton is home to the oldest Pow-wow in the state which is 150 years old. This tradition predates our great state!

Summit, SD – “Real People Still Answer the Phone” People’s State Bank has two locations: Summit and Florence and 13 employees. Both of which have always been locally owned. The bank was founded in New Effington in 1913. In its first year, the bank employed a woman cashier which was unheard of at the time! Something unique about Peoples State Bank is: their employee, Janice Halverson, has 60+ years of experience! Every year, each customer receives a Christmas gift from the bank. This is a tradition their customers look forward!

Learn more about People’s State Bank here:

Learn more about Roberts County Bank here:


Richland State Bank

First National Bank of Frederick

Bruce, SD – Richland State Bank is located in Bruce, SD. It was chartered on December 23, 1913 as Bank of Bruce. Richland State Bank has a long and continuing tradition of providing a high level of integrity and service to all of its customers. President Pennie Lutz and Vice President/Loan Officer Mike Rentsch contribute over 50 years of banking and regulatory experience. Customers and community members look forward to receiving birthday wishes from Richland State Bank via a sign on the exterior of their building.

Frederick, SD – First National Bank was chartered in 1882. It is the second oldest bank in the state of South Dakota! They have five employees, and have been in their current location since 1906. President Scott Campbell is the fifth generation to own and operate the bank. One day, he is hopeful his two sons will take over. For the First National Bank of Frederick, donations are a big part of their charter. However, being involved in the community is key! Their employees are members of the church board and town board. Scott is an EMT and is also responsible for the towns snow removal! First National Bank of Frederick is one of the few banks in the state that remained open in the 1930’s.

Learn more about Richland State Bank here:

Q1.18 | February 2018 33

2017 Director/exeCutive

Management conference Looking Beyond the Past: A New Direction for Community Banks

The 2017 ICBSD Directors/Executive Management Conference was held November 9, 2017 in Sioux Falls, SD. Philip K. Smith and Jeff Gerrish of Gerrish Smith Tuck, PC were keynote speakers.

Philip K. Smith

Here are five common mistakes of remaining independent, according to Smith and Gerrish:

1.  Assuming it can be done passively 2.  Not focusing on core profitability 3.  Not planning board and management succession

Jeff Gerrish

4. Not keeping up with changing regulations 5. Not creating value

Save the Date 34 ICBSD 2018

Sylvan Lake Retreat Custer State Park July 26, 27, 28





Photo 1 – P  hillip K. Smith (top left) and Jeff Gerrish (lower right) of Gerrish Smith Tuck, PC were this years keynote speakers Photo 2 – ICBSD Board Member Dick Behl led the game “Last Banker Standing.” $1,300 was raised for the PAC program during “Last Banker Standing.” Photo 3 – M  ain Street, Inc. was gracious enough to sponsor centerpiece flower arrangements for this years conference. Photo 4 – ICBSD lobbyist Dean Krogman invited bank executives to let their voices be heard.


4 Q1.18 | February 2018 35

Thank you to all of the event sponsors, vendors and attendees for making this years event a success!

Top (R to L): First District Development Company, Katie DeBoer, Paula Hulscher; Cohen Brown Management Group, Cynthia Griffith; Clifton Larson Allen, Neil Falken Center: ICBA, Brandy Smallbrock and Tina Giorgio; Colliers International, Bruce Nell Bottom: ReliaMax, Reid Moehn; Main Street, Inc., Cynthia Glover, Amy Karl

Not Pictured: ICBA Securities, Jim Reber; SDN Communications, Vernon Brown; Shazam, John Peck; Bell Bank, Gene Uher; FHLB Des Moines, James Lee; FiNet, Rick Camardo; United Bankers Bank, Todd Holzwarth; SBS CyberSecurity, Nick Podhradsky; First National Bank of Sioux Falls, Chris Ekstrum; Community Bankers Financial Services, Kevin Christians

36 ICBSD 2018

Q1 - The Bottom Line  
Q1 - The Bottom Line