The Bottom Line Volume II 2022 by icbsd

VOLUME 2 | 2022

INDEPENDENT AND PROUD OF IT

THE CASE AGAINST BUREAUCRATIC BANKING PAGE 6 STAYING TRUE TO RURAL AMERICA PAGE 12 YES, I AGREE. PAGE 16 PROTECTING TAXPAYERS FROM OUTDATED AND EXPENSIVE PANDEMIC POLICIES PAGE 18

FEATURE STORY: 2022 BLACK HILLS RETREAT PREVIEW PAGE 22 TERESA THILL, MANAGER, MARKETING & HR, THE ADVANTAGE NETWORK PAGE 24 ABOUT CRYPTOCURRENCY… IT’S NOT GOING AWAY PAGE 26

South Dakota Banks earn with BHG Loans 18

SD Banks made purchases

$57MM

Total purchase amount as of 02/22

Historical loss on the BHG Core Loan portfolio To learn more about BHG, please contact:

Keith Gruebele, EVP, Institutional Relationships KGruebele@bhgbanks.com • (954) 737-5318 BHGLoanHub.com/ICBSD

This* information is an assumption based on estimates of earnings and amortization speciﬁcally tied to the performance of loan schedules provided at the time of sale. The published amounts are intentionally rounded or generalized, and although we believe the numbers to be reasonably accurate, the amounts cannot be easily veriﬁed or guaranteed.

2 | THE BOTTOM LINE

INSIDE THIS ISSUE

VOLUME 2 | 2022

CONTENTS FROM THE DESK OF 6

President’s Message The Case Against Bureaucratic Banking by Megan Olson

Rebeca’s Remarks Flourish by Rebeca Romero Rainery

Chairman’s Message From the Top by Robert Fisher

Chairman’s Message Staying True to Rural America by Brian Gilbert

2022 PAC 100 Contributors

FROM CAPITOL HILL 14

Federal Delegate’s Report by Valerie Anderson-Boudaka

Yes, I Agree by Mike Rounds

Protecting Taxpayers from Outdated and Expensive Pandemic Policies by John Thune

COMMUNITY 20

The Great Escape by Jim Reber

Feature Story: 2022 ICBSD Black Hills Retreat

People You Should Know: Teresa Thill

About Cryptocurrency ... It’s Not Going Away by Keith A. Gauer

IN THE NEWS 29

Member Benefit, 401 (K) Plans: The ICBSD Advantage

The Financial Literacy Movement and You by Banzai

Cortrust Bank Announces Mitchell Area Market Promotions

United Bankers’ Bank Welcomes Michael Hahn as Vice President, Correspondent Banking Officer

Bankwest Awards Scholarships to Area Students

United Bankers’ Bancorporation, Inc. Welcomes New Board Member Rachelle Nelson

United Bankers’ Bank Welcome Welcomes Katie Ferrell And Sandy Panella To Compliance Services Team

Announcing 2022 Davenport Evans Scholarship Recipients

Reliabank Welcomes Paula Hulscher to Commercial Lending Team 2022 Capital Summit

Community Banking Month Review

Chairman’s Choice Review ICBSD 2022 | 3

2022 WEBINAR SCHEDULE 6/1/22 MORNING

When a Business Owner Dies, Sells, or Delegates Authority Elizabeth Fast, Spencer Fane LLP

7/7/22 MORNING

Countdown to ATR/QM Changes Effective October 1, 2022: Preparing Policies & Processes, Dawn Kincaid, Brode Consulting Services, Inc.

6/1/22

Faster Payments Basics Kimberly Ellis, UMACHA

7/12/22

DEPOSIT OPS SERIES: Deposit Operations Comprehensive Compliance, Including BSA, Mary-Lou Heighes, Compliance Plus, Inc.

6/2/22

Interpreting Call Reports for the Board Kira Sexton, CLA

7/13/22

Vendor Due Diligence & Effective Vendor Management David A. Reed, Reed & Jolly, PLLC

6/6/22 MON AM

HMDA Bootcamp Basics, Susan Costonis, Compliance Training and Consulting for Financial Institutions (Added Hot Topic)

7/14/22 MORNING

CONSUMER LENDING SERIES: Proper Repossession, Notice & Sale of Non-Real Estate Collateral, Elizabeth Fast, Spencer Fane LLP

6/7/22

Measure It to Manage It: Understanding Analytics & How to Determine Online Success, Eric C. Cook, WSI Internet Consulting

7/14/22

CALL REPORT SERIES: Understanding Call Report Regulatory Capital: Standards, Ratios, Risk Weighting, Michael Gordon & Kris Trainor, Mauldin & Jenkins, LLC

7/19/22 MORNING

Advanced Beneficiary & RMD Considerations Frank J. LaLoggia, LaLoggia Consulting, Inc.

7/20/22 MORNING

Powers of Attorney In-Depth: Good Faith, Fraud & Fiduciary Capacity Elizabeth Fast, Spencer Fane LLP

6/8/22 60 MIN

Building a Better Board, Philip K. Smith, Gerrish Smith Tuck

6/9/22 MORNING

ACH SERIES: Electronic Payment Fraud: When Is Your Institution Liable? Elizabeth Fast, Spencer Fane LLP

6/13/22 MONDAY

BSA: Russian Sanctions & National Risk Assessments Deborah L. Crawford, Gettechnical Inc.

7/20/22

Things That Keep Boards Up at Night David A. Reed, Reed & Jolly, PLLC

6/14/22 60 MIN

New UDAAP Exam Parameters: Beyond Fair Lending Molly Stull, Brode Consulting Services, Inc.

7/26/22

Record Retention Rules for Zoom, Microsoft Teams, Slack & Other E-Collaboration Platforms, Nancy Flynn, The ePolicy Institute

6/15/22 MORNING

FRONTLINE SERIES: Maintaining Business Accounts: Changing Principals, Changing Signers, Resolutions, Changing Products & More, Deborah L. Crawford, Gettechnical Inc.

7/27/22 MORNING

New ACH Rules Effective 9/30/22: Nested Third-Party Sender Roles & Risks, Shelly Sipple, EPCOR

6/16/22

Decoding the Examination Process: 10 Essential Techniques to Thrive During Your Next Exam, David A. Reed, Reed & Jolly, PLLC

7/27/22

Elevating Your Fraud Prevention Strategies, Ryan Dutton, SHAZAM, Inc.

6/21/22 MORNING

CONSUMER LENDING SERIES: Consumer Lending Collateral Considerations & Documentation, Elizabeth Fast, Spencer Fane LLP

7/28/22 MORNING

FRONTLINE SERIES: Checking Account Signature Cards: CIP, IRS & Disclosures, Deborah L. Crawford, Gettechnical Inc.

6/22/22

Commercial Lending: Risks, Rewards, Controls & Common Mistakes Jeffery W. Johnson, Bankers Insight Group, LLC

8/2/22 MORNING

Emerging Payments: Embracing Same Day ACH, RTP & FedNow Shelly Sipple, EPCOR

6/23/22

Identity Theft Red Flags & FACT Act Compliance David A. Reed, Reed & Jolly, PLLC

8/3/22 MORNING

CDD: Creating an Effective Program from the Frontline to the Backroom, Dawn Kincaid, Brode Consulting Services, Inc.

6/28/22

Mortgage Loan Origination: Critical Timing Requirements Molly Stull, Brode Consulting Services, Inc.

8/4/22 MORNING

Securing Collateral Part 1: Forms UCC-1 & 3: Filing, Perfection, Amending & Terminating, Elizabeth Fast, Spencer Fane LLP

6/29/22 MORNING

Flood Alert! Revised Interagency Q&As Molly Stull, Brode Consulting Services, Inc.

8/9/22

Managing a Borrower’s Business Through a Loan Agreement Jeffery W. Johnson, Bankers Insight Group, LLC

6/30/22 MORNING

Overdrafts Under Fire: Clarifying the Confusion Dawn Kincaid, Brode Consulting Services, Inc.

8/10/22 MORNING

E-SIGN Act: Electronic Loan Document Delivery Elizabeth Fast, Spencer Fane LLP

7/6/22 MORNING

Record Retention in the Digital Age: What to Keep, When to Destroy, What Holds Up in Court? Elizabeth Fast, Spencer Fane LLP

8/10/22

Characteristics of Strong Risk Assessments: Tools to Monitor & Report Results, Marcia Malzahn, Malzahn Strategic

4 | THE BOTTOM LINE

WEBINAR TIMES MOST WEBINARS ARE HELD AT 2:00 P.M. CENTRAL. MORNING WEBINARS ARE HELD AT 10:00 A.M. CENTRAL. CHECK BROCHURE COPY FOR TIMES.

8/11/22 MORNING

CECL Implications for Planners & Procrastinators: Deadline January 1, 2023, Robert L. Viering, RiverPointUSA LLC

9/7/22 MORNING

Job-Specific BSA Training for Frontline Susan Costonis, Compliance Training and Consulting for Financial Institutions

8/11/22

Compliance with E-SIGN, E-Statements & E-Disclosures Nancy Flynn, The ePolicy Institute

9/8/22 MORNING

When a Borrower Dies Elizabeth Fast, Spencer Fane LLP

8/16/22 MORNING

Mission TRID: Overcoming Examiner-Cited Mistakes Dawn Kincaid, Brode Consulting Services, Inc.

9/12/22 MORNING

Fraud Channels: Check & Debit Card Elizabeth Fast, Spencer Fane LLP

8/16/22

Transitioning Away from LIBOR: Preparation & Practicalities Michael Christians, Michael Christians Consulting, LLC

9/13/22 MORNING

Traditional & Roth IRA Part 1: Eligibility, Contributions, Rollovers & Transfers, Frank J. LaLoggia, LaLoggia Consulting, Inc.

8/17/22

Managing Zoom, Microsoft Teams, Slack & Other Collaboration Platforms with Effective E-Policies Nancy Flynn, The ePolicy Institute

9/14/22

Top 10 IT Frauds: Risks & Protection Strategies for Financial Institutions, John Moeller, CLA

8/18/22 60 MIN

WSUD vs. Stop Payment: Definitions, Differences, Compliance Kimberly Ellis, UMACHA

9/15/22

Troubled Debt Restructuring: What Qualifies & Accounting for TDRs as Credit Improves, Todd A. Sprang, CLA

8/23/22

Adding the “Wow Factor” to Credit Analysis Jeffery W. Johnson, Bankers Insight Group, LLC

9/20/22

Securing Collateral Part 2: Purchase Money Security Interests: Taking Priority Over a Perfected Creditor, Elizabeth Fast, Spencer Fane LLP

8/24/22

Maximizing Recoveries on Charged-Off Loans David A. Reed, Reed & Jolly, PLLC

9/21/22 MORNING

Appraisal Reviews: Do You Know What to Look For? Dawn Kincaid, Brode Consulting Services, Inc.

8/25/22 MORNING

FRONTLINE SERIES: Reg CC Check Hold Requirements & Funds Availability, Deborah L. Crawford, Gettechnical Inc.

9/27/22 60 MIN

TRID: Recognizing a Changed Circumstance & Issuing a Revised Loan Estimate, Molly Stull, Brode Consulting Services, Inc.

8/30/22 60 MIN

The Way Forward to MORE Time: How to Manage Your Time, Instead of It Managing You, Debbie Peterson, Getting to Clarity, LLC

9/28/22

Avoiding UDAAP Claims, Errors & Penalties Mary-Lou Heighes, Compliance Plus, Inc.

8/31/22

A Cryptocurrency Primer for Banks: Guidance, Risks & Red Flags Molly Stull, Brode Consulting Services, Inc.

9/29/22 MORNING

FRONTLINE SERIES: Checks, Mobile Deposits, Substitute Checks: Indemnities, Endorsements & Timeframes, Deborah L. Crawford, Gettechnical Inc.

9/1/22 MORNING

CONSUMER LENDING SERIES: Consumer Lending Regulatory Essentials: Fair Lending, UDAAP, Privacy & More Elizabeth Fast, Spencer Fane LLP

ICBSD 2022 | 5

FROM THE PRESIDENT’S DESK

THE CASE AGAINST BUREAUCRATIC BANKING — Megan Olson, President & CEO of ICBSD

Community banks in South Dakota and nationwide have been instrumental in sustaining small businesses and local communities throughout the coronavirus pandemic, but proponents of taxpayer-funded banking in certain states and municipalities threaten to undermine this system and its benefits to consumers. While public banking advocates support relying on taxpayer funds to finance small-business and consumer loans, policymakers don’t need to recreate the wheel when there are 5,000 community banks at 50,000 locations across the nation with a proven track record.

MEETING LOCAL NEEDS As locally based small businesses, community banks channel their loans to the neighborhoods where they and their depositors live and work. Their relationship-based business model and timely decision-making is exemplified by their leadership in the Small Business Administration’s Paycheck Protection Program, which supports small businesses that use the forgivable loans to retain their workers. According to SBA data, community banks made more than 60 percent of PPP loans supporting the retention of over 33.7 million employees nationwide in 2020. In addition, community banks made most PPP loans to minority-owned

6 | THE BOTTOM LINE

(72.6 percent), women-owned (71.5 percent), and veteran-owned small businesses (63.4 percent). Community banks participate heavily in this program not because of political pressure, but to best serve struggling small businesses and communities in dire need of economic support. Holding more than $5 trillion in assets, nearly $4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks only thrive when their customers and communities flourish.

PUBLIC DISPLACEMENT Unfortunately for the communities that community banks serve, several states and local municipalities are considering establishing taxpayer-funded public banks. While the plan is partly designed to remove government deposits from large Wall Street banks, 53 percent of state and local deposits and 31 percent of federal deposits are held by community banks. These deposits comprise over 10 percent of total assets for nearly half of community banks, meaning public banking would also displace locally based community banks and their ability to extend credit to local communities.

BUREAUCRATIC BANKING Further, public banking wouldn’t create a safer

and more efficient way to allocate credit. A public bank established today would be subject to the same bureaucratic inefficiencies of any other public entity. What’s more, lending decisions currently based on localized knowledge and creditworthiness of the borrower would be replaced by political mandates, with public bank executives answering to the elected officials that appoint them and the politics of the day.

REGULATORY RISK Neither is public banking a “safer” place for consumers to park their money. Public banks are likely to be less regulated than private banks because they would not be supervised by a federal banking regulator.

Further, deposits of a public bank that forgoes FDIC insurance would be backed by the full faith and credit of a state or municipality, shifting the risk of loan losses or the bank’s failure to taxpayers. The FDIC’s Deposit Insurance Fund, by contrast, is fully funded by the banking industry. No depositor has ever lost one cent of an FDIC-insured deposit. Under public banking, a cash-strapped state or municipality would provide little support against unexpected losses at the bank or, worse, could be tempted to draw on the bank’s capital cushion. Simply put, public banking poses excessive risks to taxpayers. To further empower consumers, small businesses and agriculture borrowers, policymakers should focus on ways to support the 5,000 community banks meeting their needs today.

ICBSD 2022 | 7

8 | THE BOTTOM LINE

FROM THE PRESIDENT’S DESK

“Healthy debate helps us achieve an outcome where we’re all pushed to think beyond what might be readily in front of us."

FLOURISH — Rebeca Romero Rainey, President & CEO of ICBA When’s the last time you left a meeting and found yourself saying, “I never thought about it that way before!”? For me, the answer allows me to gauge how much I’ve successfully encouraged differing viewpoints. If I’m not asking myself this question regularly, it’s a red flag that I need to be looking for new ways to welcome input. As leaders, it’s our job to create a culture that celebrates and harnesses differing perspectives. But it’s not about discussion for discussion’s sake; it’s about broadening our mindsets. Healthy debate helps us achieve an outcome where we’re all pushed to think beyond what might be readily in front of us. This openness to doing things differently and hearing new ideas naturally invites more discussion on topics you may never have realized were there. Open dialogue is important, because as a community bank, no two scenarios are exactly alike. Having a team that offers a variety of different opinions will allow a bank to think creatively to problem solve. It creates a space where employees ask, “Is

this OK, or are we missing an opportunity?” and “How can we better meet the needs of the community?”. When you have an environment where it’s OK to disagree, you develop a dedicated team, which yields a better outcome. In addition, healthy debate introduces an element of fun into strategy. When done right, it’s engaging, stimulating and inspiring. It also leads to a culture of excellence where staff are encouraged to question the status quo and stretch the organization so it can grow to new heights. Take the 40 Under 40 featured in this month’s issue. None of these leaders received the distinction by doing things the way they’ve always been done; they learned to be leaders through example, through education— at events like our LEAD FWD Summit—and through their own experiences. This has driven them to challenge their banks and teams to do better and be better. That makes them shining stars, and it also speaks volumes about the culture their banks have created.

Thinking about our leadership team at ICBA, I’m grateful for the discussions we have. Our complementary perspectives have helped us continue to grow to better serve the needs and interests of our members, and I know all of you seek the same for your communities. So, let’s use this as a call to action to keep finding the fun in questioning the status quo. I’m certain it will help us continue to flourish.

WHERE I’LL BE THIS MONTH I can’t believe I’m saying this, but I will be attending my eldest daughter’s high school graduation! I’ll also be traveling to a series of meetings for ICBA Bancard, TCM Bank, ICBA Reinsurance and ICBA Securities, and attending the Community Bankers of West Virginia Convention.

CONNECT WITH REBECA @ROMERORAINEY

ICBSD 2022 | 9

FROM THE CHAIRMAN’S DESK

“Community continuation is not about checking a regulatory box; it means putting a name to the people who will be the future of our banks.”

FROM THE TOP — Robert Fisher, Chairman of ICBA, President, CEO and chairman of Tioga State Bank in Spencer, N.Y. One of my favorite sayings my dad passed onto me is also a motto I live by: “How far you go in life depends on your being tender with the young, compassionate with the aged, sympathetic with the striving and tolerant of the weak and the strong. Because someday in life, you will have been all of these.” This advice led me to a new way of contemplating leadership. My journey to this position didn’t start with me knowing what to do; it took the wisdom of others to guide me. It’s our teams—our employees in every level of the organization, with their varied experiences, strengths and skills—who help us grow as leaders and as banks. That’s why as we consider our future, we need to do so with our people top of mind. In our bank, we have retired the phrase “succession planning” and replaced it with “community continuation.” Our up-and-coming leaders will be the ones to provide service to our customers and communities in the future. That’s really who we’re talking about when we look at the future of our banks. And how we invest in our people now will make or break our community continuation plans. For example, when we take time to explain why we’re doing what we’re doing, we’re educating our staff on the bank’s strategy and processes. Whether it is underwriting a loan, writing up a credit memo, detailing a purchase of an investment security or analyzing a profit and loss statement, staff must look at more than their individual responsibilities. Our

10 | THE BOTTOM LINE

future leaders must see the bigger picture for our banks to be successful. As we prepare for what’s to come, the more specific we can be, the better. Community continuation is not about checking a regulatory box; it means putting a name to the people who will be the future of our banks. Bringing them in on our vision also will strengthen their ties to us and create an even more dedicated team. Spreading this concept of community continuation has risen to become one of my primary goals as chairman. So, as you read this month’s issue, featuring emerging community bank leaders, I hope you will consider how you can redefine traditional succession planning and grow your own vision for community continuation. We all want our communities to continue being healthy and vibrant for the next generation, and when we shift our mindset and put people in full view, we become the quintessential community continuators. But, as my favorite quote says, how far we go depends upon how we treat the people along our path.

MY TOP THREE Checklist for effective community continuation 1. Create a culture of continuation like you would of compliance. 2. Select future leaders by identifying employees who embody your values. 3. Seek out consultants who support the mission of community banks.

CONNECT WITH ROBERT @ROBERTMFISHER

  

ICBSD 2022 | 11

FROM THE CHAIRMAN’S DESK

STAYING TRUE TO RURAL AMERICA — Brian Gilbert, Chairman of ICBSD Senior Vice President, The First National Bank of Sioux Falls

Many community banks have been serving farmers for more than century because they understand the essential role the agricultural community serves in supporting our nation’s food supply and bolstering our economy.

FARM FOOD FACTS

The food and agricultural sector are responsible for twenty percent of the country’s economic activity. This activity contributes nearly $7 trillion of U.S. economic output and accounts for more than 40 million jobs, or 13% of all U.S. employment.

The typical American farmer feeds nearly 144 people worldwide.

That’s why the support community banks offer America’s farmers and ranchers is so important.

Food costs account for only 12.6 percent of American households’ disposable income, leaving approximately 90 percent of their income for other consumer purchases and expenses.

Less than one dime of every dollar spent on food goes to farmers for producing food; the remainder goes towards processing, packaging, advertising, transportation and other wholesale and retail activities.

Accounting for more than 60 percent of small-business loans under $1 million and 80 percent of agricultural loans from the banking sector, community banks are often the catalysts for new and expanded business opportunities within their communities to ensure their long-term economic viability and vitality. In fact, community banks provide approximately $184 billion in agriculture loans. The largest financial institutions themselves have reported that community banks are more than tripling the deposit growth of their larger competitors in rural communities. Continuing our supportive efforts is crucial for the success of South Dakota’s farmers and ranchers, especially as economic and marketplace volatility remain. I am proud to be a community banker and humbled to work in an industry that truly has their customers’ best interest in mind. Our work is not always easy, but the relationships we form make it well worth it. In the good times when the bounty is plentiful and in the lean years where access to credit offers support to press forward, we are there for our customers.

12 | THE BOTTOM LINE

SUPPORT THE ICBSD PAC

PAC 100 CONTRIBUTORS The PAC 100 Club recognizes the individuals who have contributed $100 to the ICBSD PAC. The Century Club recognizes the banks whose entire board of directors has contributed $100 to the ICBSD PAC.

THANK YOU TO THE FOLLOWING INDIVIDUALS AND BANKS FOR YOUR SUPPORT! CENTURY CLUB BANK Farmers State Bank of Canton * Reliabank Dakota * BRUCE ANDERSON Farmers State Bank of Canton

JANE SWENSON Reliabank Dakota

BRYAN LAUNDERVILLE Farmers State Bank of Canton

DAVID EBBERS Reliabank Dakota

KIRK RIKANSRUD Farmers State Bank of Canton

BOB SMITHBACK Reliabank Dakota

JOHN RIPLEY Farmers State Bank of Canton

DAVID JOHNSON Reliabank Dakota

VALERIE ANDERSON-BOUDAKA Farmers State Bank of Canton

TERRY J VOGEL Farmers State Bank of Turton

HUGH BARTELS Reliabank Dakota

KEVIN J TEIGEN Farmers State Bank of Turton

JAN JOHNSON Reliabank Dakota

RORY TROSKE Farmers State Bank of Turton

JOSH HOGUE Reliabank Dakota

MARK R TROSKE Farmers State Bank of Turton

REID JOHNSON Reliabank Dakota

MONTE J TROSKE Farmers State Bank of Turton

JEREMEY KEIZER Reliabank Dakota

WAYNE W. BOARD Farmers State Bank of Turton

MARK LEE Reliabank Dakota

* DENOTES BANKS WITH 100% BOARD PARTICIPATION

ABOUT PAC The ICBSD Political Action Committee helps provide South Dakota community banks with a strong, united voice in Pierre. Your participation in the PAC helps ensure we have a seat at the table when issues affecting community banking are being discussed in the state capitol.

GET INVOLVED Thank you in advance for your support of the ICBSD PAC. To make a contribution or to learn more, email Megan at Megan@ ICBSD.com. Checks can be mailed to: ICBSD PAC PO Box 615 Watertown, SD 57201.

ICBSD 2022 | 13

FROM CAPITOL HILL

FEDERAL DELEGATE’S REPORT — Valerie Anderson-Boudaka, ICBA National Director, Farmers State Bank of Canton, Canton, SD

Hello community bankers! Representing South Dakota as the Federal Delegate is a career highlight for me. I have met some of you, but there are many of you left that I need to meet. Let me introduce myself! My name is Valerie Anderson-Boudaka and I am the president of Farmers State Bank of Canton. I’m a third-generation banker. Some of you may remember my father, Bruce Anderson. Bruce is enjoying retirement, but he is still chairman of our board. As many of you from family-owned banks, my career started young. In middle school, I started the glamorous job of shredded paper at the bank. By high school, I had moved to the teller line. I think I enjoyed talking to people more the actual job- don’t ask for my balancing records! During college at Augustana, I began working at large banks in Sioux Falls. In 2011, I got the call from my dad- “It’s time - we need you!” and I began my career at Farmers State Bank in lending. I hope everyone who attended the Capital Summit had productive meetings on banking legislation and successful networking with other community bankers from across the country. I am very disappointed that I couldn’t make it- but I have a great (and cute) reason that I could not be there. My husband, Moe, and I welcomed our first son, Noah, in February!

14 | THE BOTTOM LINE

One of my goals for my time as a Federal Delegate will be to keep up with the ever-changing regulatory landscape in banking. I was recently on a call with about thirty ag bankers from across the country, all ICBA members. Ag bankers that help watermelon and popcorn farmers, to your typical ag lenders like we have in South Dakota, all chimed in on the CFPB’s blog post about financial issues that are affecting rural America. The CFPB claims there are banking deserts and discriminatory and predatory lending to farmers in rural America. It was great to hear other bankers across the country share the sentiment we have here in South Dakota. I heard so many examples of how local banks in rural America have saved farmers, small business owners, and our local homeowners from unfortunate circumstances. This made me think, as South Dakotans we are humble people – maybe too humble. I challenge all of you to share your success stories with anyone you can. Your customers, your local paper, or even a post on social media. The more we speak about the great things we do, our communities and our customers will to. Don’t be shy- the community would love a feel-good story about your bank featured in your local newspaper. Next up is our summer Black Hills Retreat! I’m very excited about the theme, “Born to Bank”, as this is my first retreat with my son. Will he be the fourthgeneration banker in my family? Time will tell- but he will always remember the fun times he has every

summer in the Black Hills with the best group of people you can find- the community bankers of South Dakota! We need to thank Emily Hofer for her years of dedication to this position, and to community banking in South Dakota. Emily’s work and her enthusiasm for our organization is not over yet; she is on the ICBPAC committee. Let’s make sure to show her and the ICBPAC our support! Keep up the great work community bankers! See you at the retreat!

BANKING CHANGES. OUR COMMITMENT TO YOU NEVER DOES.

1964

2011

2021

Travelers becomes one of the first domestic markets to write Directors & Officers Liability insurance

Travelers CyberRisk coverage is introduced to the market

Travelers distributes more than $4 million to ICBA members participating in the policyholder dividend program

Throughout our long history, we’ve stayed focused on keeping community banks on the cutting edge. We do this with industry-leading specialists, expertise and offerings – all backed with local banking knowledge. Learn more at travelers.com/business-insurance/financial-institutions travelers.com Travelers Casualty and Surety Company of America and its property casualty affiliates. One Tower Square, Hartford, CT 06183 This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Availability of coverages referenced in this document may depend on underwriting qualifications and state regulations. © 2022 The Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries. CP-9620 New 2-22

ICBSD 2022 | 15

FROM CAPITOL HILL

YES, I AGREE. — Mike Rounds, United States Senator (R-S.D)

I was going through mail the other day when I came across a letter from a high school student in Martin. The letter started out, “Dear Senator Rounds – I am going to be honest with you here, I don’t understand government very well nor do I have a burning passion to do so.” I think that’s relatable to lots of people, not just those in high school. The student continued on to say: “I am going to have my own car soon and I am not quite sure how I am going to afford gas. It makes me apprehensive, especially since it costs so much to fill a little car even. If it’s out of your control I do understand, I just hope you will do what you can to help us all out.” Her note took me back to a different time in my life and reminded me of the excitement of buying my first car. After my first year of college, I bought a 1964 Chevy Corvette Convertible with the money I saved up. While it was a convertible, it wasn’t fancy, and needed a paint job almost as badly as I needed a haircut at that time. I only had the car for about a year but I’ll never forget it. The memories. The music. The long drives down an endless open road. It’s amazing the power a few words have to take you back in time. The challenges of adulthood unfortunately seem to cloud our perspective sometimes and make us forget what it’s like to

16 | THE BOTTOM LINE

“As lawmakers, we have a responsibility to put forward policies that help our economy grow and create opportunities for businesses in our communities to thrive.” - Mike Rounds, United States Senator

be a kid. These days, it feels like kids are having to grow up a lot faster than they did in my day. While many things play into that, the fragile state of our economy certainly isn’t helping, with pocketbooks as tight for parents now as they’ve been in a long time. Elections have consequences and our country is gaining an understanding of that right now, especially when it comes to the economy. Inflation is currently at a 40-year record high. While it’s easy to get into the weeds rather quickly talking about monetary policy and the tools the federal government has to address higher prices, to put it simply, there are two parts to inflation: supply and demand. Low supply and high demand lead to higher prices. The radical policies of the Biden administration have negatively impacted both factors through reckless spending and excessive regulations. This leaves folks in South Dakota and across the country to bear the costs. Inflation impacts everyone - kids going out to eat or the movies with friends, college students buying groceries, new parents paying for diapers, families trying to put food on the table, grandparents trying to spoil grandkids with toys and even high school students filling up their first cars.

As lawmakers, we have a responsibility to put forward policies that help our economy grow and create opportunities for businesses in our communities to thrive. Our country is deeply divided. The current administration is clearly focused on climate change to the detriment of our economy. They have limited the production of oil and gas by refusing to allow additional extractions from federal lands. They have made it more difficult through regulation to efficiently deliver oil and gas where it is needed, not just in our country but also in other parts of the world. I believe that we should reduce inflation by reducing the cost of energy—including petroleum— everywhere that we can. This would not only reduce the cost of gas at the pump, but also reduce the cost of goods and services which are higher because of the price of fuel to get items and services to where they are needed by the American public. If we really want to address inflation, we need to address the supply side of energy. As the student from Martin closed her letter to me, “We’ve gotta work on that.” Yes, I agree.

ICBSD 2022 | 17

FROM CAPITOL HILL

PROTECTING TAXPAYERS FROM OUTDATED AND EXPENSIVE PANDEMIC POLICIES — John Thune, United States Senator

On the 2020 presidential campaign trail, President Biden painted himself as a left-leaning moderate. However, since taking office, he has prioritized policies to appease the far-left wing of the Democrat Party. Here’s what those policies have gotten us: an inflation crisis, an energy crisis, and a southern border crisis. Unfortunately, there’s no sign the president or the tail that’s been wagging the dog has any desire to shift course. For example, look no further than the latest Democrat push to cancel student loan debt. For years, progressive Democrats have talked about canceling student loan debt – as if the federal government were able to draw from an unlimited pot of money – and now, they are trying to use COVID-19 as the catalyst to get there. Recently, the president announced that he is extending the moratorium on federal student loan repayments, the accrual of interest, and debt collections for another four months. In the early days of the pandemic, this made more sense as a temporary measure for a genuine emergency as Americans’ jobs were in jeopardy as the economy quickly began to shut down. But it’s been more than two years since the pandemic began, we no longer have double-digit unemployment, and most folks are back to work. In fact, in South Dakota, our unemployment rate is a low 2.5 percent.

18 | THE BOTTOM LINE

President Biden’s press secretary, when referring to the repayment deferment, recently said that “between now and August 31, it’s either going to be extended again or we’re going to make a decision about canceling student debt.” This statement, coming directly from the president’s spokeswoman, makes it alarmingly clear that these repeated deferrals aren’t temporary relief measures. They’re meant to buy time while the president figures out how he can cancel a significant portion of federal student loan debt – money that borrowers agreed to pay back. Contrary to the radical left’s view, canceling student loan debt won’t magically solve every problem. It would do absolutely nothing to address the root cause of student debt – the rising cost of higher education. Also, from a fairness perspective, why should the federal government force Americans who incurred no college debt to shoulder the bill for those who did – especially when a substantial portion of that debt is incurred by those with the greatest earning potential like doctors and lawyers. And beyond that, what about the Americans who worked hard for years to pay off their loans? Or, what about parents who have sacrificed and set aside money in order to send their kid to college? I supported providing temporary relief when it was really needed, but the continuation of student loan deferment or any type of student loan cancellation is a terrible policy at this point. I am doing everything in my power to end President Biden’s unnecessary and outdated student loan deferment and prevent him from pursuing his radical wish list at the expense of hard-earned taxpayer dollars.

Todd Holzwarth Call me at 605.321.9197

– Based in Sioux Falls, S.D. Serving South Dakota, North Dakota, northwest Iowa, southwest Minnesota

Whatever Loan You Need, We Can Help. www.bell.bank

Whether your loan is large or small, get faster turnaround from our experienced correspondent team. Reg. O loans | Holding company loans & lines of credit | Equipment financing | Participation loans 34966

Deferring student loan repayments has already cost the federal government more than $100 billion, which is why I recently introduced the Stop Reckless Student Loan Actions Act. This common-sense legislation would protect taxpayers and block President Biden from endlessly deferring federal student loan repayments. It would also prevent him from using the pandemic – or future national emergencies – as a reason to cancel these student loans outright. To put it simply, South Dakota taxpayers and working families should not be responsible for continuing to bear the costs associated with President Biden’s outdated, budget-busting student loan repayment moratorium, especially since many of the borrowers who’d be on the receiving end have a high earning potential.

Member FDIC

34966 AD Independent Community Bankers of SD 2022_Todd.indd 3/9/22 1 8:58 AM

ICBSD 2022 | 19

THE

GREAT ESCAPE

THE BOND MARKET BRACES FOR THE FED’S WIND-DOWN OF ITS BALANCE SHEET. — Jim Reber, ICBA Securities , an ICBSD Preferred Partner.

If bond investors (you) were running low on things to worry about for the rest of the year, I’ve got some terrific news: The $9 trillion portfolio owned by our central bank will begin to shrink. Soon. And at a feverish pace, I might add. We’re into new territory for a number of reasons. The most obvious is that the mountain is double its size the last time a wind-down started. Another reason is that inflation, in case it’s escaped your notice, is at a 40-year high. Still another is that consumers no longer believe that prices will get back into their 2%-per-year box they’ve been confined to for the better part of a decade. So, this high-wire act has some drama attached.

THE OLD PLAYBOOK Way back (hyperbole) in 2013, then-Fed Chairman Ben Bernanke announced the last unwinding without much warning, and begat the Great Taper Tantrum. Bond yields rose a lot, even though the Fed’s balance sheet didn’t actually start to shrink for several years. And even when it did, it was a very gradual process. For example, the initial amounts in 2018 that rolled off were pegged at $10 billion per month. That’s a lot of zeros by most everyone’s reckoning, but were small enough to be the equivalent of, as then-Fed Chairman Janet Yellen said, “watching paint dry.” And, while the monthly caps eventually rose to $50

20 | THE BOTTOM LINE

billion, the market by and large shrugged off the wind-down. To be sure, rates rose in absolute terms between 2016 and 2018 as the Fed hiked a total of 10 times, but there were very logical and measured market reactions to these events.

THE PLAYBOOK, 2022-STYLE What will this time’s great escape look like? For starters, it appears the amounts that’ll be leaving the party will be much larger even at the outset. Indications are the number will be around $95 billion, per month. That could increase, depending on how quickly inflation starts to behave to the Federal Open Market Committee (FOMC)’s liking. There’s also the matter of the other mandate, maximum employment. What happens if consumption begins to dwindle as consumers can’t afford to keep buying goods and services, and the labor market dries up? At the moment, the overriding concern is that inflation expectations are quite high. This has spurred the FOMC to act, and talk, aggressively to get prices under control. And there’s a lot of raw material to work with: according to Bloomberg, the Fed owns fully one-fourth of all Treasury securities, and an astonishing 40% of the agency mortgagebacked securities (MBS) market.

THREE WIND-DOWN STRATEGIES When you get right down to it, there are only three ways to get rid of a bunch of bonds. They

are determined by when the bonds will mature, how quickly the investor wants to get rid of them and how much runoff is desired. (For all investors that are not central banks, the market gain or loss contained in the portfolio can impact which strategy is employed. It’s irrelevant to the Fed.) First, the investor can simply not reinvest all the proceeds that are running off. In the case of the Fed, over $2 trillion will simply mature in the next two years, so if the objective is to shrink by around $1.1 trillion per year, it will buy some, but not all, of what is rolling off. Secondly, if it wants to speed up the timetable, the Fed can reinvest none of the proceeds. Both cases are examples of passive Quantitative Tightening (QT). The third, and potentially the most market-changing, is to actively sell some of the holdings. It’s been a while since the Fed used this technique, as all of the runoff back in 2018–19 fell under the passive QT label. One reason this option has been floated is that most of the cash flow from its MBS holdings is from prepayments of loans, and since mortgage rates have skyrocketed this year, very few homeowners can now benefit from refinancing. So, actually selling some securities into the open market could be in play, and a seller of the Fed’s scale could certainly affect the market. Where does the Great Escape end? It’s anyone’s guess, particularly since the Fed is going to attempt

a very public, highly complicated soft landing in the midst of all this. But, if the size of the balance sheet relative to Gross Domestic Product reverts to the pre-pandemic levels, it would settle out around $4.5 trillion, around 2026. Fasten your seat belts.

NEW ICBA SECURITIES ENDORSED BROKER Vining Sparks and Stifel Financial have completed their merger, and for the first time since 1989, ICBA Securities has a new endorsed broker. Stifel representatives will be on-site at a number of ICBA affiliate events later this year. For more information, visit stifel.com

Jim Reber (jreber@icbasecurities.com) is president and CEO of ICBA Securities, ICBA’s institutional, fixed-income broker-dealer for community banks.

ICBSD 2022 | 21

FEATURE STORY

K C O R

K N A B 22 | THE BOTTOM LINE

RETREAT AGENDA & ACTIVITIES Now in its 39th year, our annual Black Hills Retreat is a cornerstone for community banking in South Dakota. Designed with community in mind, this three day event is rich with actionable education sessions, entertaining special events for the entire family and endless opportunities to network with banking professionals all in the heart of our beautiful state!

Thursday, July 28, 2022 WELCOME PARTY & TRIVIA NIGHT The fun starts at 5:00 with social hour and inflatables, followed by dinner and interactive trivia fit for everyone in the family! Be sure to brush up on your ICBSD history, sports, world events, pop culture, geography and history. No topic will be left untouched!

Friday, July 29, 2022 7:00 - 9:00 | Breakfast is served 8:30 | Welcome, Brian Gilbert, ICBSD Chairman of the Board 8:45 | Be Prepared, Keep Vigilant, Stay Focused with Lynn Paulson, Senior Vice President/Director of Agribusiness Development, Bell Bank 9:30 | 401k Plans: The ICBSD Advantage with Bryce Sowitch, Partner, IFAM Capital 10:15 | Stretch and Refresh 10:30 | Stay Ahead of Navigating the Fast Changing Regulatory Landscape with Gale Simons-Poole, Chief Regulatory Relations Officer, BHG Bank Network 11:15 | ICBA Update with Lucas White, ICBA Vice Chairman and President, The Fountain Trust Company in Covington, IN 12:00 | Lunch, Special Guest South Dakota Treasurer Josh Haider 5:00 | Chuckwagon Supper & Branson-Style Music Variety Show at Fort Hayes * OPTIONAL AFTERNOON GROUP ACTIVITY, TRANSPORTATION PROVIDED * • Enjoy a self guided tour of the Dances with Wolves movie set, antique shops, gift shops • Chuckwagon Supper & Branson-style Music Variety Show begins at 6:30

Saturday, July 30, 2022 7:00 – 9:00 | Breakfast is served 8:30 | How to deal with rising rates with Jack Youngberg, Vice President of Lending, UBB 9:15 | Project Boundary Fence: Protecting Cyber Interests in South Dakota with Ashley Podhradsky, VP of Research and Economic Development, Dakota State University 10:00 | Stretch and Refresh 10:15 | Bankers Helping Bankers with Christopher Williston, President of Independent Community Bankers of Texas 11:00 | ICBSD Annual Meeting and Installation of New Officers 12:00 | Lunch 5:00 | VIP Reception & Cocktail Tasting at Deadwood Mountain Grand 7:00 | Social Hour, PAC auction 8:00 | Dinner and Dueling Pianos ICBSD 2022 | 23

TERESA THILL ADVANTAGE NETWORK MANAGER, THE ADVANTAGE NETWORK THE FIRST NATIONAL BANK IN SIOUX FALLS

INSPIRED BY COMMUNITY Teresa Thill has always had a love for finance. Even as a young child, she played restaurant with her sister and cousins — creating a menu with prices, calculating the bill, and collecting the payment with handmade cardboard debit cards. She loved math, science, and transactions. Teresa graduated with a degree in business administration in finance from the University of South Dakota. It was Teresa’s passion for finance that brought her to where she is today: leading The Advantage Network, where she works with regional member institutions to help them find ways to grow and innovate their Electronic Funds Transfer services. But her love of the industry extends beyond just finance and EFT services; she’s always been an advocate of community and community banks. “Community banks truly care about their customers,” said Teresa. “People who bank with a community bank know they are not just a number in the system; they know they are valued and in good hands. Community banks are extremely important because they build long-term relationships with customers throughout their lifetime.”

24 | THE BOTTOM LINE

As Teresa works with customers in all stages of their business, she guides them through technology and industry evolutions.

TECHNOLOGY’S ROLE IN THE FUTURE “The thing that fascinates me the most about the industry is how one swipe of a debit card creates so many moving pieces behind the scenes,” said Teresa. “There’s money transferring from one network to another, merchants and processors approving

transactions, and fraud monitoring doublechecking the validity of the transactions, all within a matter of seconds.” With the role of mobile wallets and technology increasing in popularity, Teresa recognizes the basic needs of the customer. She added, “In this day and age, it’s all about ease of use and how quickly you are able to obtain things. Technology will continue to speed up the process and make things more convenient in the payments industry.” When she’s not introducing customers to solutions, you can find Teresa doing anything outdoors, running, golfing, hiking, or chasing after her three kids. She’s also a classroom volunteer with Junior Achievement, where she shares her knowledge by teaching financial literacy. “The more kids learn and hear about the importance of money, their community, entrepreneurship, and planning for their future, the better,” said Teresa. As Teresa looks forward to technology and what’s next, she offers a simple goal. “We need to be here to help the community and the customers so they know we are all in this together.”

ICBSD 2022 | 25

DAVENPORT EVANS OP-ED

ABOUT CRYPTOCURRENCY… IT’S NOT GOING AWAY. — Keith A. Gauer, Davenport, Evans, Hurwitz & Smith, LLP

Fans of the Harry Potter books will recall the first book when young Harry was living with his muggle (non-wizard) family and he started receiving letters from Hogwarts, the wizard school, inviting him to attend during the next school session. At first his muggle uncle and aunt vainly attempted to discard or hide the letters from the school, but they persisted, unabated, with multiple letters ultimately streaming through cracks in the doors and out of the fireplace until his muggle family relented and let Harry leave to attend Hogwarts. Crypto currency is the new Hogwarts invitation to those charged with drafting laws relating to currency, securities, and secured transactions (among others). After several years of ignoring it and hoping that it would just go away, bank regulators and legal scholars have recognized that crypto appears to be here to stay

26 | THE BOTTOM LINE

and have set about to remedy various defects in the current legal structure to address crypto issues. One example of these developments is the anticipated proposed amendments to the Uniform Commercial Code. The Uniform Commercial Code (“UCC”) is a set of form statutes drafted with a goal of ensuring uniformity among the states as to the law pertaining to commercial transactions. The UCC itself is not law. Rather, the UCC sets out a recommended set of statutes for individual states to adopt. The UCC is drafted, and modified from time to time, by the American Law Institute and the National Conference of Commissioners on Uniform State Laws. In 2019, these two entities, recognizing a need in the area, appointed a committee to consider amendments to the UCC to address “digital assets” in general. The committee has nearly completed its work and it is anticipated that the updates will be approved and recommended to state legislatures in July 2022. Many pundits have observed that the current version of the UCC does not really include adequate definitions and structure to cover digital assets, including crypto currencies and non-fungible tokens (“NFTs”). In order to remedy the deficiencies, and to provide the necessary predictability to commercial transactions, the drafters of the UCC plan to propose substantive edits to Article 9 (the chapter governing security interests in personal property) and an entirely new Article 12. While

the proposed edits are significant and beyond the space limitations of this article (and likely the patience of the reader), bankers should become familiar with a few of the basic concepts and definitions used in the revisions. These include the following: 1. New UCC Article 12 adopts a new definition of “controllable electronic records” or “CERs” for short. CERs generally include records stored in an electronic medium that can be subjected to control as defined in the Article. While new Article 12 has been drafted to allow for flexibility as technologies develop, CERs will include certain virtual currencies (that have not been adopted by a central government), NFTs, and digital assets in which specific payment rights have been imbedded. 2. CERs are classified as “general intangibles” under Article 9, meaning that existing security agreements granting the secured party a lien in general intangibles will now also be defined to cover any CERs owned by the debtor. 3. A security interest in a CER may be perfected by filing a UCC-1 or by taking control of the CER. Similar to existing law relating to other forms of collateral, perfection of a CER by control will take priority over an interest perfected by filing a UCC-1. In order to exercise “control” over a CER, a party must have the exclusive power to prevent others from enjoying substantially all the benefits of the CER and

the exclusive power to transfer control of the CER. 4. Similar to transfers of cash today, the transfer of a CER to a good faith purchaser allows the purchaser to “take free” of any existing claims against the CER. Obviously, this will make “control” of the CER the preferred method of perfection for a lender relying on the CER as collateral. 5. The UCC definition of “money” will still exclude crypto currencies unless the crypto currency is authorized or adopted by a government. This definition will leave open the possibility that a central bank digital currency (as is currently being considered by the Federal Reserve), could be classified as “money” under the UCC despite its digital nature. The drafters anticipate having the proposed revisions to the UCC finalized and ready for consideration by state legislatures starting later this summer. It will be interesting to see how quickly legislatures move to adopt the recommendations into law. Some states may desire to be early adopters to project an innovation friendly climate in their state, while others may hold back to see how the laws are implemented in other states. Nevertheless, it appears that crypto currencies, NFTs, and digital assets in general are here to stay and bankers (and their counsel) will need to continue to educate themselves on the legal issues surrounding these new forms of assets.

ICBSD 2022 | 27

SAVE THE DATE!

GOLF & GATHER & FDIC DIRECTORS’ COLLEGE Wednesday, October 12th-13th In Sioux Falls Golf & Gather

This social event will include a fun evening of golf, beverages, heavy appetizers, and the opportunity to network. Even if you don’t plan to golf, we encourage you to come and enjoy the evening!

FDIC Directors’ College

The 2022 FDIC Directors’ College will follow on Thursday, October 13th beginning at 9:00 am at The Alliance. We hope to see you there!

2022 28 | THE BOTTOM LINE

MEMBER BENEFIT

401 (K) PLANS: THE ICBSD ADVANTAGE The passage of the SECURE Act has provided for some new and exciting innovations in the way companies can approach their retirement plans. The Independent Community Bankers of South Dakota (ICBSD) has partnered with IFAM Capital to provide a benefit that offers advantages to member banks and their employees while helping to sustain the organization and further the mission of ICBSD. With an eye towards small businesses, the SECURE Act allows for separate businesses to participate in one retirement plan. This has several advantages including the ability to band together for pricing power from a plan perspective. In a prior form, Multiple Employer Plans (MEPs) provided pricing benefits but came with significant drawbacks including the inability to customize the plan from one company to another. Also of consequence were “bad apple” provisions which exposed every company in the plan to liability for the wrong doings of one employer. IFAM Capital is a Registered Investment Advisory firm with offices in Denver and Fort Collins, Colorado as well as Sioux Falls. Like ICBSD there is an independent streak that its principals share as well as down-to-earth roots. Founded by veterans of some of the big Wall Street firms, IFAM Capital was launched in 2014 to provide client-first investment and retirement solutions. Bryce Sowitch, a North Dakota native and Partner at IFAM, leads the Retirement Plans Division. “We are thrilled to have launched this partnership and believe this puts ICBSD on the leading edge of retirement plan solutions.” He went on to offer, “What the SECURE Act did was take a good idea and fix those downfalls like the ‘bad apple’ rule and limitations around customization. We have the ability to take a look at existing 401(k) plans of member banks and add value without having to shoehorn everyone into the exact same plan document.” IFAM is an SEC Registered Investment Advisor with its compliance office at IFAM Capital, 2133 S Timberline Rd. Suite 120, Fort Collins, CO 80525. Phone 970-530-5036. Please contact this office to request a copy of the firm’s ADV/brochure. You may find additional information about our firm at www.ifamcapital.com.

JEFF GORDON EMAIL:

jeffrey@ifamcapital.com

PHONE:

605-370-5472

ADDRESS:

101 S Main Ave, Ste 302 Sioux Falls, SD 57104

BRYCE SOWITCH EMAIL:

bryce@ifamcapital.com

PHONE:

970-530-5032

ADDRESS:

2133 S Timberline Rd, Ste 120 Fort Collins, CO 80525

ICBSD 2022 | 29

THE FINANCIAL LITERACY MOVEMENT AND YOU — Banzai, United Bankers’ Bank, an ICBSD Preferred Partner

We at Banzai are passionate about financial education, and we have partnered with UBB as their endorsed financial education platform. Banks are in a perfect position to help account holders right the ship of today’s trying times—a bit of financial wisdom often makes all the difference between unnecessary hardship and resilience. Life’s obstacles often create opportunities. It just depends on whether we’re willing to reframe our perspective. Consider this take:

“We must learn to put up with what we cannot avoid. The musician who loved only some [notes] — what would he be able to do? He has to know how to make use of them all. We must do the same.” - Michel de Montaigne, Of Experience.

30 | THE BOTTOM LINE

When we hear that students and teachers— some of Banzai’s primary users—are switching to distance learning, we don’t panic. Instead, we support them by adapting our shipping methods, creating new resources, and keeping in close contact with the teachers using our curriculum. We make use of the things life throws our way.

GOOD NEWS AND BAD NEWS It’s clear that the current climate has created obstacles for bank account holders throughout the United States. As we adjust to a new normal, our routines are disrupted in just about every way imaginable, and many customers have significant, new challenges. Is there any good news to be found here? Of course there is. You, the community banks, are the good news. Whatever community or service area you’re in could use your help, and financial literacy is a direct, desperately needed form of help. That’s why Banzai provides opportunities for banks to give resources for anyone planning or responding to financial change in their life. Banks via Banzai give schools award winning, interactive courses that teach kids how to handle money wisely. They also provide Banzai’s adult-centered resources directly to households, in a packaged suite called the Wellness Center. This includes several robust, flexible financial calculators, more than 80 timely articles, and a virtual financial mentor we call the Banzai Coach. While it’s true that schools are closing, it’s also true that students need remote lessons— which are Banzai’s specialty. While it’s true that many people are staying home or left adrift among economic uncertainty, it’s also true that they need tools to help them decide what to do with their savings— another Banzai specialty.

SCHOOLS Most K–12 schools are closed or switching to remote learning. With that disruption comes additional obstacles for teachers, students, administrators, and parents alike. Community banks like yours stand in a position to alleviate and transform those obstacles into a growth opportunity for your organization.

Right now, we at Banzai are seeing more and more teachers eager for teaching tools they can easily use—tools that don’t require technical skill or high internet bandwidth. That demand has skyrocketed resulting in sign-ups 3.5 times the weekly average where hundreds of banks throughout the United States have already sponsored for K–12 schools in their communities. It’s a good look for an onlineonly curriculum like Banzai and those who support it.

HOUSEHOLDS No demographic is going unscathed in the current landscape. Restaurant workers, hourly-wage earners, and contractors are among the millions of newly unemployed who are now dipping into their own savings. Wouldn’t it be great if their local bank specifically contacted them with resources on how to handle financial emergencies? Wouldn’t it be a relief if your customers knew their bank had invested in resources that would help them succeed against the tide of uncertainty?

Responding to economic adversity is what Banzai was born to do. Our platform came as a response to the 2008 recession, a time when many financial institutions would’ve been tempted to cut their financial literacy initiatives. Again with today’s circumstances, financial remote learning has never been timelier. We’re confident that banks, via Banzai, are answering the call for teachers and individuals who need interactive, online platforms for financial education. Many of our bank partners are eagerly leaning in and expanding their online offerings with Banzai, all with the goal of helping communities remain resilient. Join us in that effort. To request additional information or a demonstration, please visit www.ubbedu.com.

That’s why Banzai creates, on behalf of banks, an entire suite of products geared toward adults going through all financial stages of life. With virtual financial mentors and flexibly designed calculators, banks now have better answers to questions from their customers: “How can I refinance my mortgage?” “What should I do with my economic stimulus check?” “What are my health insurance options now that I’m unemployed?”

ICBSD 2022 | 31

IN THE NEWS

CORTRUST BANK ANNOUNCES MITCHELL AREA MARKET PROMOTIONS MITCHELL, SD - CorTrust Bank is pleased to announce two promotions. Nathan Smith has been appointed Market President and will oversee bank operations for CorTrust branches in the Mitchell area. Terry Torgerson, a CorTrust employee of nearly 30 years, will transition to a Senior Vice President, Farm Management position and take over the company’s farm management operations, while continuing to serve business customers in the Mitchell area. “It’s nice when we can promote from within, and I am confident Nathan and Terry will do a great job in their new roles. They have the experience, knowledge, and work ethic to help grow CorTrust Bank in the Mitchell area market,” said Jack Hopkins, CorTrust Bank President and CEO. A second-generation community banker, Nathan grew up in the Mitchell area and has a broad understanding of the market area economies and values. Nathan’s banking career spans over 20 years, 10 of those with CorTrust Bank. He looks forward to leading the Mitchell area CorTrust Banks and connecting with Ag and business customers to understand their unique goals and how CorTrust can play a part in their success. Terry Torgerson’s new role leading Farm Management for CorTrust Bank is a great fit with his background in ag and business. Involved with farming and growing up in an ag community, his passion for farming started while helping his grandfather with his operation and continues today as he works with his son. Terry’s previous work in ag tax and almost 30 years at CorTrust Bank offers area farmer’s access to a seasoned Farm Management professional to assist in the continued prosperity of farming today.

32 | THE BOTTOM LINE

ABOUT CORTRUST BANK Since 1930, CorTrust Bank has been serving the needs of individuals and businesses throughout 16 South Dakota communities, and 15 Minnesota communities, with 37 branch locations. What started as a small operation serving the needs of local farming families in Artesian, SD, has today grown into a fourth-generation familyowned community bank with $1.58 billion in assets, and $137 million in equity and reserves. CorTrust Bank – raise your expectations.

Contact: Ann Metli 605.444.4000 ametli@CorTrustBank.com

IN THE NEWS

UNITED BANKERS’ BANK WELCOMES MICHAEL HAHN AS VICE PRESIDENT, CORRESPONDENT BANKING OFFICER BLOOMINGTON, MN – Dwight Larsen, President and CEO of United Bankers’ Bank (UBB), is pleased to announce the addition of a new Correspondent Banking Officer, Michael Hahn. With over a decade of experience in finance and correspondent banking, Michael Hahn will be working to grow and manage relationships in South Dakota, Nebraska, Montana and Wyoming. He has his bachelor’s degree from University of Minnesota – Twin Cities, his master’s degree from Augustana University in Sioux Falls, SD, and is a graduate from the Southwest Graduate School of Banking at Southern Methodist University in Dallas, TX. Michael will be based out of Sioux Falls, South Dakota.

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 the upper Midwest, Great Lakes and South Atlantic regions. For more information please visit ubb.com.

“We are eager to see Michael connect and help the community bankers in South Dakota, Nebraska, Montana and Wyoming,” mentioned Jay Syverson, Senior Vice President, Regional Sales Manager. “He brings a knowledge of community banking that will only increase our connection with potential and existing customers.” “As UBB continues to grow, we understand the importance of providing exceptional service to not only new banking customers but those that have been with us since day one,” commented Dwight Larsen, President and CEO. “We are confident Michael will provide the highest level of service to our well established customers while introducing our vast array of products and services to establish new relationships.”

Contact: Dwight Larsen 952.885.9501 dwight.larsen@ubb.com

ICBSD 2022 | 33

IN THE NEWS

BANKWEST AWARDS SCHOLARSHIPS TO AREA STUDENTS PIERRE – BankWest Chairman, President and CEO Charles H. Burke III recently announced the awarding of 21 BankWest Scholarships to students from across South Dakota for the 2022-23 school year. Each student will receive a $1,500 scholarship to pursue post-secondary education at a school of their choice. “At BankWest, helping young people pursue their hopes and dreams is one of the most important things we do,” Burke said. “We believe investing in students is an investment in South Dakota’s future.” BankWest has awarded $516,000 in academic scholarships during the past 29 years. Burke said 65 students applied for this year’s scholarships. The BankWest Scholarship program recognizes outstanding achievement by student account holders at BankWest. Students receiving $1,500 BankWest Scholarships include:

Kennedy Bietz, daughter of Jason and Jennifer Bietz of Scotland, is a freshman at the University of South Dakota where she is studying chemistry. Collin Bradberry, son of Kevin and Christy Bradberry of Onida, is a senior at Sully Buttes High School. He plans to attend Dakota State University in the fall where he plans to study computer science and cyber security. Kase Brouwer, son of Heath and Jessica Brouwer of Armour, is a senior at Armour High School. He plans to attend the University of South Dakota where he will study business. Kayla Gill, daughter of Brian and Linda Gill of Java, is a freshman at Lake Area Technical College where she is studying nursing. Olivia Huber, daughter of Ryan and Anne Huber of Mitchell, is a senior at Mitchell High School. She plans to attend Dakota Wesleyan University where she will studying elementary and special education.

plans to attend Dakota Wesleyan University where she will study elementary and special education. Adisyn Kuxhaus, daughter of Terry and Carie Kuxhaus of Pierre, is a senior at T.F. Riggs High School. She plans to attend South Dakota State University where she plans to study animal science. Jaden Matkins, daughter of James & Jennifer Matkins of Rapid City, is a senior at Stevens High School. She plans to attend Augustana University in the fall where she will study biology. Breanna McConnell, daughter of Melissa McConnell of Creighton, SD, is a senior at Wall High School. She plans to attend Black Hills State University this fall where she will study elementary education. Allison McManus, daughter of Donald and Melinda McManus of Reliance, is a freshman at Black Hills State University where she is studying exercise science.

Nancy Khuu, daughter of Yen Khuu of Gregory, is a senior at Gregory High School. She plans to attend South Dakota State University to study nursing.

Ryder Mortenson, son of Martin and Wendy Mortenson of Winner, is a sophomore at South Dakota State University where he is studying agricultural business & business economics.

Samantha Kludt, daughter of Todd & Heidi Kludt of Mitchell, is a senior at Mitchell High School. She

Griffin Petersen, son of Amy Petersen-Kolb and Paul Kolb of Onida, is a senior at Sully Buttes High

34 | THE BOTTOM LINE

IN THE NEWS

School. He plans to attend the University of South Dakota where he will study political science and criminal justice.

plans to attend the University of Sioux Falls in the fall where he will study secondary English and language arts education.

Julia Platt, daughter of Rich and Deb Platt of Mitchell, is a senior at Mitchell High School. She plans to attend the University of South Dakota where she will study health services administration and business administration.

Taryn Starr, daughter of Duke and Tess Starr of Geddes, is a freshman at South Dakota State University where she is studying nursing.

Jasmine Rounds, daughter of Scott and Kara Rounds of Pierre, is a sophomore at South Dakota State University where she is studying nursing.

Emma Thomas, daughter of Andy and Renee Thomas of Gregory, is a senior at Gregory High School. She plans to attend the University of Sioux Falls where she will study media studies and marketing.

Malia Schumacher, daughter of Marvin and Melanie Schumacher of Pierre, is a freshman at South Dakota State University where she is studying human biology.

Daysen Titze, son of Troy and Tina Titze of Fort Pierre, is a senior at Stanley County High School. He plans to attend South Dakota State University where he will study exercise science and physical therapy.

Kiana Shevling-Major, daughter of Devin Major of Coldspring, Texas and Jessica Shevling of Geddes, is a senior at Platte-Geddes High School. She plans to attend the University of Iowa where she will study international relations and criminology, law & justice.

420 S. Pierre Street, Pierre, SD 57501 Contact: Kristin Gabriel at (605) 945-3767 Kristin.Gabriel@bankwest-sd.bank

Christian Spann, son of Jim and Carolyn Spann of Gregory, is a senior at Gregory High School. He

ICBSD 2022 | 35

IN THE NEWS

UNITED BANKERS’ BANCORPORATION, INC. WELCOMES NEW BOARD MEMBER RACHELLE NELSON Dean Miller, Chairperson of United Bankers’ Bancorporation, Inc., is pleased to announce the election of Rachelle Nelson to the United Bankers’ Bancorporation, Inc. (UBBI) and United Bankers’ Bank (UBB) Boards of Directors. Rachelle Nelson is the President and CEO of the First National Bank of Milaca since January 2021 and has served on their Board of Directors since 2020. She is the chair of the monthly executive board meeting and sits on officer’s credit, senior management, strategic planning, and ALCO Funds management committees at FNB Milaca. Rachelle is a 2019 graduate of the Graduate School of Banking at the University of Wisconsin – Madison. An active member of the Minnesota Bankers Association, she currently serves on their Next Generation Task Force committee. “We are honored to welcome Rachelle to the UBBI board and UBB family. The insight she will provide from her 17 years in the commercial lending space will prove to be a great asset to our organization,” commented Dwight Larsen, President and CEO of United Bankers’ Bank. “Rachelle’s commitment to her community and the community banking industry makes her a perfect fit with the culture and core values of UBB.”

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 serving over 1,000 community banks from the West Coast to the Great Lakes and South Atlantic. For more information please visit www.ubb.com.

Contact: Dwight Larsen 952.885.9501 dwight.larsen@ubb.com

Rachelle Nelson

36 | THE BOTTOM LINE

IN THE NEWS

UNITED BANKERS’ BANK WELCOMES KATIE FERRELL AND SANDY PANELLA TO COMPLIANCE SERVICES TEAM Dwight Larsen, President and CEO of United Bankers’ Bank (UBB) is pleased to announce the addition of Katie Ferrell, CRCM, CAMS, and Sandy Panella, CRCM, to the UBB Compliance Services Team. Katie Ferrell comes to UBB with nearly 20 years of experience supporting financial instructions through regulatory compliance, risk management, audit, and retail operations and lending. A graduate of Barret Graduate School of Banking with a bachelor’s degree from University of Southern Mississippi, Katie maintains CRCM, CAMS and NCCO certifications.

for almost 20 years. She has her CRCM certification from American Bankers Association and is a graduate of Robert M. Perry School of Banking and of Robert M. Perry School of Lending through Central Michigan University. “We are pleased to have found two compliance consultants with a wealth of knowledge and experience,” commented Jeff Thompson, UBB’s Vice President and Managing Consultant. “Katie and Sandy bring to UBB unique compliance skills that will truly complement UBB’s Compliance Services offering.”

Sandy Panella has been in the community banking industry

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 serving over 1,000 community banks from the West Coast to the Great Lakes and South Atlantic. For more information please visit www.ubb.com.

Contact: Dwight Larsen 952.885.9501 dwight.larsen@ubb.com

Sandy Panella

Katie Ferrell

ICBSD 2022 | 37

GROWING AND INNOVATING

YOUR EFT SERVICES When you become a member of The Advantage Network, we’ll help you grow your non-interest income and ensure that you receive efficient implementations of new products and services. From conversion onto the Network to daily operations, our team will be there every step of the way. • Debit card services • Card production • Marketing support • ATM services • Fraud monitoring

CALL ME TO LEARN MORE

TERESA THILL (605) 335-5112

100 South Phillips Avenue, Sioux Falls (605) 335-5112 advantage-network.com

38 | THE BOTTOM LINE

IN THE NEWS

ANNOUNCING 2022 DAVENPORT EVANS SCHOLARSHIP RECIPIENTS Davenport Evans has announced its 2022 scholarship recipients. For over 35 years, the firm has awarded eight annual scholarships totaling $20,000 to be used at institutions of higher learning in the state of South Dakota. Scholarships are awarded through the Sioux Falls Area Community Foundation. “The firm recognizes that our best and brightest high school seniors are the future of South Dakota and key to growing our economy,” explained Davenport Evans lawyer Vince Roche. “That’s a primary reason why we are committed to encouraging those students to attend one of our fine in-state institutions of higher learning, with the hope that some of them will ultimately put down roots in a local community.” Davenport Evans lawyer Mitch Peterson was, himself, a past Davenport Evans scholar!

Jeremiah Donahoe Brandon Valley High School

Sydney Hansen Washington High School

Aida Hoffelt Lincoln High School

Dylan Ligtenberg Roosevelt High School

Planning to attend South Dakota State University.

Planning to attend Augustana University.

Planning to attend the University of South Dakota.

Samantha Miller O’Gorman High School

Miriam Pickard Dell Rapids High School

Landon Ruesink Dell Rapids High School

Kaylee Updegraff Roosevelt High School

Planning to attend South Dakota State University.

Planning to attend Dakota Wesleyan University.

Planning to attend South Dakota School of Mines & Technology.

Davenport, Evans, Hurwitz & Smith, LLP, located in Sioux Falls, South Dakota, is one of the State’s largest law firms. The firm’s attorneys provide business and litigation counsel to individuals and corporate clients in a variety of practice areas. For more information about Davenport Evans, visit www.dehs.com.

ICBSD 2022 | 39

IN THE NEWS

RELIABANK WELCOMES PAULA HULSCHER TO COMMERCIAL LENDING TEAM Josh Hogue, president of Reliabank announced that Paula Hulscher will join the bank’s staff in May as a commercial loan officer. Since 1994, Hulscher has been with First District Association of Local Governments, serving the past 17 years as Executive Vice President of the First District Development Company (FDDC). Hulscher has extensive experience with Small Business Administration (SBA) loan programs and managed the overall operations of FDDC. She holds an MBA degree from Mt Marty University and a BS degree from Northern State University.

2022 CAPITAL SUMMIT South Dakota’s community bankers were well represented at the 2022 ICBA Capital Summit held in Washington D.C. May 1 - 4, 2022. During the Capital Summit, community bankers from across the country gather to advocate on behalf of the industry with Congress.

40 | THE BOTTOM LINE

IN THE NEWS

COMMUNITY BANKING MONTH REVIEW April was community banking month! We celebrated by visiting students at Northern State University, South Dakota State University and Augustana with some of our community bank members. A panel discussion was held that covered a range of topics including financial literacy, the importance of community banking, crypto currency and more! Thank you to our community bank members for sharing your time and passion with South Dakota students!

LAST ONE TO MAKE A DEAL IS A ROTTEN EGG!

The hunt for business financing is always competitive. Those who get to the best deals first—help themselves, their customers, and their communities. First District Development Company is prepared to help with your customer’s business expansions or acquisitions. Call us and we’ll provide the assistance you need to hatch a golden deal.

http://fddc.1stdistrict.org (605) 882-5115

ICBSD 2022 | 41

IN THE NEWS

CHAIRMAN’S CHOICE REVIEW The inaugural Chairman’s Choice event was held May 19, 2022 at Hunter’s Pointe Shooting Complex in Humboldt. South Dakota community bankers took aim at raising funds for the ICBSD PAC while enjoying the great outdoors! Special thanks to SDSU Football Coach John Stiegelmeier for sharing a few words!

42 | THE BOTTOM LINE

THANK YOU

2022 ICBSD PREFERRED PARTNERS FOR YOUR CONTINUED SUPPORT!

CyberSecurity

ICBSD 2022 | 43

P.O. BOX 615 WATERTOWN, SD 57201 605.878.3040

ICBSD.COM