August 2022 Wisconsin Banker

AUGUST 2022

WISCONSIN BANKERS ASSOCIATION

FOUNDED 1892

The Cost of Employee Financial Stress

How Wisconsin employers can best invest in the security of their team By Hannah Flanders As inflation and the cost of living across the country continue to rise, more employees are feeling the increasing strain of financial burden in their day-to-day lives.

While some individuals may choose to seek higher paying positions to combat this stress, many are looking to their current employer to assist them in finding new solutions to managing these burdens.

Financial stress is often defined as any emotional tension an individual may experience related to money, debt, or upcoming expenses. According to a survey

by Purchasing Power in March 2022, 97% of all full-time employees reported that they experience financial stress. While monetary stress manifests in many different ways, employers should be concerned that

Ag Bankers Say…

State Farmers Having Good Year, But Rising Costs Threaten 2023 By Paul Gores Many Wisconsin farmers are headed for a profitable year, but they’re already uneasy about 2023, ag bankers in the state say.

» Photo taken in Clinton, Wis. by Debra Hall, First National Bank and Trust Company.

Coming off a strong 2021 that saw rising dairy and commodity prices, farmers entered the year financially fit and, in many cases, with locked-in input expenses that have blunted 2022’s surge in inflation. But with the cost of fertilizer and diesel fuel ballooning, and livestock feed for those

these stressors weaken productivity, negatively impact company culture, and decrease overall talent retention. (continued on p. 22)

who don’t produce their own feed becoming more expensive, it’s hard to see how the next growing season can be as solid as this one has been so far, bankers said. “I think there’s more anxiety about what next year looks like than there is over what this year looks like right now,” said Dave Coggins, senior vice president ag banking for Green Bay-based Nicolet National Bank. With diesel fuel now topping $5 a gallon, and with fertilizer prices up in part because key ingredients come from embattled Ukraine and Russia, input costs are increasing. “A number of farmers were able to contract prices last fall and early winter before they totally took off and escalated. So some of them have (continued on p. 12)

Address Service Requested UMS

Madison, WI 53718 4721 South Biltmore Lane Wisconsin Bankers Association

PAID U.S. POSTAGE PRSRT STD

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AUGUST 2022

Message from the Chair

Professional Development Opportunities for Every Banker By Daniel J. Peterson Every year, August marks the return to school for individuals across the country. Of course, this is no different for bankers looking to expand their professional skills and networks. One of the greatest benefits to our membership with the Wisconsin Bankers Association (WBA) is the expansive opportunities for furthering the education of our team members. WBA schools allow Wisconsin bankers the perfect opportunity to develop the skills and knowledge needed to accomplish their professional goals and gain expertise in their roles. Schools, workshops, and webinars sponsored by WBA often focus directly on very specific aspects of our

Message from the Chair Daniel J. Peterson

industry. Between the wide range of content and formats offered, there is truly a program for every banker — no matter their level of experience. Bank leaders understand that when employees have the knowledge and resources they need to excel at their jobs, they have higher motivation, productivity, and job satisfaction. This fall, WBA is looking forward to offering your team several opportunities — ranging from deposit

EBC is attending the WBA Mangagement Conference and will be available for questions!

compliance to IRAs and internal audits — to expand their expertise alongside their banking peers from across the state. These experiences not only foster a positive workplace environment and greater employee retention, but also assist in creating a better experience for customers. Schools and workshops are an easy way for bankers to be engaged with both the Association and our industry as a whole. Not only are banks able to ensure that those in attendance at any WBA event will gain valuable, relevant tools for their professional development, these tools will directly aid in keeping the business updated on recent trends, best practices,

Learn more about upcoming WBA schools, workshops, and webinars on p. 16 or by visiting wisbank.com/ education.

and regulations within our everchanging industry. By attending any WBA event, be it in person or virtually, bankers have the ability to learn together with their banking peers, gain valuable knowledge and new perspectives, and be a part of WBA’s mission to support the growth and success of bankers around the state. Peterson is president and CEO of The Stephenson National Bank & Trust, Marinette, and the 2022–2023 WBA Chair.

Brian Siegenthaler

Ryan Pettersen

Racheale Ward

Kelly Hageman

Vice President bsiegenthaler@wisbank.com 608-441-1211

Account Manager rpettersen@wisbank.com 608-441-1247

Account Manager rward@wisbank.com 608-441-1260

Account Administrator khageman@wisbank.com 608-441-1241

Swing by the EBC exhibit booth to discuss your 2023 employee benefits programs to receive a $10 gift card.

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AUGUST 2022

Partner with Bell for: Participation loans Bank stock and ownership loans Holding company loans and lines of credit Reg. O loans to bank employees, insiders or directors Equipment financing

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– Based in Fargo

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AUGUST 2022

TIRED OF BORROWING MONEY BEING MORE COMPLICATED AND DIFFICULT THAN IT NEEDS TO BE? Bank Stock and Bank Holding Company Stock Loans done the simple way Bank mergers, acquisition loans and refinances up to $50 million Approval typically within 2 to 3 days and sometimes immediately In many cases the loan can be started, closed and funded in less than 2 weeks No Correspondent Bank Account relationship required If the Federal Reserve approves it we can likely get the deal done for you Standard Commercial Loan Documentation used in most cases We won’t restrict you to unnecessary covenants Limited or no reporting requirements Limited or no origination costs Low interest rates Principal payments often determined with the borrower’s input on a year by year basis In many circumstances we accept bank capital growth instead of loan principal reduction  We will come to you! Most loans initiated and closed at the borrowers home or office.           

Deal directly with a lender/owner who is a CPA who understands the banking industry. Although we cannot give direct advice, we have 35 years of industry experience and can make your job far less stressful and time consuming. We will understand your transaction. You do not need to educate the lender. Our belief is to make the loan and then stay out of the banker’s way and let you do your job. You will only see us when you choose to. Call Rick Gerber at 1.866.282.3501 or email rickg@chippewavalleybank.com

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AUGUST 2022

Reporting Cross-Collateralized Properties HMDA provides clarity for reporting loans secured by multiple properties Must Cross-Collateralized Properties Be Counted for HMDA Reporting of Total Units?

Q A

Answer: Yes. If a loan is secured by multiple properties, those properties must be included for purposes of reporting total units. While this is not a new rule, WBA has recently become aware of banks facing scrutiny over Home Mortgage Disclosure Act (HMDA) reporting. Specifically, reporting of the number of individual dwelling units when the covered loan is cross-collateralized by multiple properties. Regulation C section 1003.4(a)(31) requires a HMDA reporting institution to enter, in numeral form, the number of individual dwelling units related to the property securing the covered loan. When considering how to report for a loan secured by multiple properties, HMDA provides clarity within its commentary. Comment 1 to section 1003.4(a)(31) makes a crossreference to comment 2 within section 1003.4(a)(9)

Compliance Q&A Scott Birrenkott

which discusses transactions involving multiple properties with more than one property taken as security. This comment draws distinctions between those data points which require reporting for a single property (selected by the lender), and those which must be considered for every property securing the loan (in addition to that single property selected by the lender). The information reported for total units is one of those which must be reported for every property securing the loan. This comment reads as follows, in relevant part: “…for aspects of the entries that do not refer to the property identified in § 1003.4(a)(9) (i.e., § 1003.4(a)(1) through (4), (7), (8), (10) through (13), (15) through (28), (31)

Visit www.wisbank.com to learn more about this topic and other compliance-related issues.

through (38)), Financial Institution A reports the information applicable to the covered loan or application and not information that relates only to the property identified in § 1003.4(a)(9).” Because the commentary includes total units as one of those categories for which information must be reported applicable to the covered loan, and not that which relates only to the single property identified under 1003.4(a)(9), then the lender must report total units based upon every property which secures the loan. As a result, lenders must consider whether the loan is secured by multiple properties. Lenders must review their language specifically to make this determination, but as a final point of distinction, note that the effect of cross-collateralization clauses is to secure the loan with multiple properties. For any questions on this, or other matters, you may

Legal Hotline: The WBA Legal Department does more than address legal concerns for the Association; it provides tangible assistance to member banks via its free legal call program. The Association’s team of attorneys work to relieve some of the industry’s compliance pressure as a timely resource for a wide variety of legal inquiries. Submit your legal inquiry via email (wbalegal @wisbank.com) or by calling the legal hotline at 608-441-1200.

reach WBA legal at wbalegal@ wisbank.com or 608-441-1200. Birrenkott is WBA director – legal. For legal questions, please email wbalegal@wisbank.com. Note: The above information is not intended to provide legal advice; rather, it is intended to provide general information about banking issues. Consult your institution’s attorney for specific legal advice or assistance.

WBA Comments on SEC’s Climate-Risk Disclosure Proposal Summary of a recent comment letter below In a comment letter filed June 15, WBA requested that the U.S. Securities and Exchange Commission (SEC) withdraw its proposal that would require publicly traded companies, including banks, to create climate-risk related disclosures for investors. WBA cautioned

View this and previous comment letters f iled by WBA at www. wisbank.com/CommentLetters.

SEC against mandating prescribed disclosures for principally political and social agenda reasons rather than

keeping investor disclosures focused on financially material information. WBA shared its significant concerns regarding the proposal, recommended SEC remain focused on its mission of investor protection,

use the U.S. Supreme Court’s “reasonable investor” standard in connection with any climaterisk related disclosure, and provided alternatives should SEC finalize the proposal. For copies of this or other WBA comment letters, please contact the WBA Legal Department at 608-441-1200 or visit www. wisbank.com/CommentLetters.

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AUGUST 2022

Advocacy Update

Will Inflation Bring New Swipe Fee Reform? By Lorenzo Cruz The credit card swipe fee debate could reignite as interest rates rise and inflationary pressures persist into 2023. If the sparks fly and catch fire, retailers could reunite to advocate for interchange fee reform, which has severe negative financial consequences for banks, the electronic payments ecosystem, and consumers alike.

The Importance of Interchange Fees During the last legislative session, a retail coalition led efforts to introduce legislation that would have » See p. 7 for profiles of the candidates running for Lieutenant Governor and Wisconsin’s Third Congressional District.

prevented banks from applying interchange fees on the tax portion of a credit card transaction and would impose a $200 fine per transaction for any entity that violates the law. Similar legislation has been offered across the nation more than forty times over the last 16 years. To date, no state has enacted the legislation, nor has this model legislation made it out of any committee.

VOTE August 9 Wisconsin State Primary

Advocacy Update Lorenzo Cruz

Retailers contend this change would provide some relief for tax collection and would lower their second highest expense — credit card swipe fees. Members of the Wisconsin Bankers Association (WBA) empathize with retailers' concerns, but there are other ways retailers could receive vendor compensation as payment for that work. Interchange fees remain a critical revenue stream for banks of all sizes in rural and urban markets. The fees allow banks to recover the cost for fraud protection and for cybersecurity that cardissuing banks provide to their customers. Retailers and consumers enjoy the credit card fee benefits of a seamless globally accepted transaction and a guaranteed payment that is secure, convenient, and affordable. Retailers also see higher volume and sales from credit card use, faster transactions, lower costs than those associated with handling checks and cash, and more sales channels.

Negative Impacts on Wisconsin Passage of interchange fee legislation would have negative and impractical implications for the electronic payment system and consumers. Consumers would have to undergo a split tender transaction, being forced to use the credit card for the total sum of goods or services purchased in the first transaction but then would pay in cash or check for the remaining tax portion in a separate transaction. Retailers could see an increase in customer confusion and frustration as the speedy checkout line becomes a distant memory. Currently, the electronic payment system has no way of separating out the tax piece of the transaction. Financial institutions and card networks only see the full transaction sum when approving, routing, and settling electronic payments. This design protects consumers' privacy and allows for lightning speed transactions. Visa’s network alone processes over $12 trillion in transactions annually. Visa has the capacity to handle over 65,000 transactions a second, however, the proposed special tax treatment change

» Please visit myvote.wi.gov to learn more about voting in the Wisconsin State Primary on August 9.

would require a major, costly overhaul of the system. The chip conversion for credit cards took over 25 years to research, test, and implement, which goes to show there is nothing simple about making changes to these networks. Wisconsin could easily become an island in the electronic payment space if the legislation passes. With prices of gas and food increasing and talks of recession afoot, the last thing consumers would want is a legislative change that makes it potentially more difficult to use their card during these challenging times. WBA urges our retail partners and customers to pursue vendor compensation alternatives rather than tinker with the interchange fee in a harmful manner. Additionally, WBA members are encouraged to continue to educate customers and policymakers on the importance of interchange fees to banks and the communities they serve. Cruz is WBA vice president – government relations.

Reminder: Wisconsin Primary on August 9 Wisconsin’s Partisan Primary election is quickly approaching on August 9. Wisconsinites are highly encouraged to take part in narrowing down candidates for the upcoming November election. Voters may only vote for only one political party of your choice. For more information on absentee voting, finding your polling place, voter registration, and to see what’s on your ballot, please visit myvote.wi.gov.

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AUGUST 2022

Lieutenant Governor | Third Congressional District

2022 Election: Races to Watch Lieutenant Governor The second ranking officer of the executive branch and the first officer in line to succeed the Governor of Wisconsin, the lieutenant governor is elected every four years by a plurality and has no term limit. Incumbent Democrat Lieutenant Governor Mandela Barnes has decided not to seek re-election and instead has chosen to run for the U.S. Senate. The race has Republicans and Democrats vying for the open seat in hotly contested primaries set for August 9. Two Democrats and two Republicans will face each other in the primary.

» Sara Rodriguez (D) Ms. Sara Rodriguez (D), a first-term state representative, hopes to win the Democratic primary and compete in the general election for Lt. Governor. In 2020, Ms. Rodriguez won a GOP-held suburban district. Rodriguez is a registered nurse, a small business owner, and a senior health care executive in the private sector.

Third Congressional District Wisconsin’s Third Congressional District follows the Mississippi River and spans almost the entire length of western Wisconsin. Political experts have identified the third district as a seat most likely to flip party control in the House in 2022. Long-time Democrat incumbent Representative Ron Kind will retire from Congress following the end of his term in 2022, leaving the district wide open. The general election will have GOP Derrick Van Orden challenge the winner of a three-way Democratic primary.

» Brad Pfaff (D): Mr. Brad Pfaff is endorsed by Congressman Kind. Pfaff, a former Kind staffer, was elected to the state Senate in 2020. Prior to his Senate career, Pfaff was appointed by Governor Tony Evers as Secretarydesignee of the Wisconsin Department of Agriculture, Trade, and Consumer Protection (DATCP) in 2018.

» Derrick Van Orden (R) Mr. Derrick Van Orden is a retired Navy Seal, author, and film actor. The decorated military veteran served in five combat deployments. In 2020, Van Orden lost a close race to Representative Kind by just over 10,000 votes. The three candidates seeking the Democratic nomination include:

» Peng Her (D) Mr. Peng Her (D) fills out the slate of Democratic

» Deb Baldus McGrath (D): Ms. Deb Baldus McGrath is the daughter of former Third Congressional District Representative Al Baldus. McGrath grew up in western Wisconsin and served the U.S. State Department, CIA, and 25 years in the U.S. Army. » Rebecca Cooke (D): Ms. Rebecca Cooke is a small business owner and a firsttime candidate hoping to win

candidates pursuing the Lt. Governor’s office. Mr. Her is a first-generation Laotian American, physicist — working previously at the UW-Madison Institute for Research on poverty — and founder and CEO of the Hmong Institute. » Patrick Testin (R) Mr. Patrick Testin (R) has served in the state Senate since 2016. Mr. Testin defeated a wellfunded incumbent Ms. Julie Lassa in his first race and flipped the long held Democratic seat. Mr. Testin the Democratic nomination. Governor Evers appointed Ms. Cooke to the Wisconsin Economic Development

was elected to leadership by his peers in 2021 and serves as president pro tempore of the state Senate. Roger Roth (R): Mr. Roger Roth (R) started his career in state government in the state Assembly in 2007. In 2014, Mr. Roth successfully ran for state Senate and was elected to serve as president of the state Senate in 2017 and 2019. Roth is a self-employed builder, captain in the Wisconsin Air National Guard, an Iraq War veteran.

Corporation’s (WEDC) Board in 2019. Ms. Cooke also founded a nonprofit to support female entrepreneurs.

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AUGUST 2022

Interest Rate Risk and Investment Strategies Seminar August 30, 2022 | Stevens Point, WI SentryWorld Golf Course

AUG Two years after the pandemic left financial institutions drowning in excess liquidity at historically low interest rates, the industry faces

Stevens Point, WI SentryWorld Golf Course 601 Michigan Ave N Stevens Point, WI 54481 715-345-1600

WHO SHOULD ATTEND

a new challenge… rising interest rates. The Fed has quickly pivoted from supporting the economy to fighting inflation and institutions are now facing the first rising rate environment in years. Regulators have watched with concern as loan and investment durations extended to record highs in a search for yield and will have a renewed focus on the Investment Portfolio and Interest Rate Risk Management. Portfolio managers can no longer be reactive, but must be proactive in managing

Financial institutions’ CEOs, CFOs, investment officers, board members, and those who are directly or indirectly responsible for financial management functions will benefit from this seminar. There is no cost for this seminar.

their investment portfolio and balance sheet in the face of rising rates

AGENDA

• Economic and Market Update — Review of current economic conditions and the outlook for growth, inflation, and interest rates • The Powell Pivot — Update on rate hikes, tapering, and the outlook for Federal Reserve monetary policy • Interest Rate Risk — How to ensure you are prepared for the heightened regulatory focus coming in the years ahead • Liquidity Risk Management — Best practices for managing liquidity risk as rates rise • Investment Portfolio Strategies — Adapting your strategy and finding the best relative value for rising rates and a flattening yield curve • MBS/CMO Market — Balancing prepayment and extension risk in an uncertain mortgage rate environment • Municipal Market Update — The latest on managing municipal credit risk and finding the best relative value

Tuesday, August 30, 2022 Breakfast 7:30 am Seminar 8:30 am Lunch 12:00 pm Golf 1:00 pm (Enjoy a round of golf on us)

3.5 hours of Economics and Finance CPE credits will be earned for your attendance.

and a flattening yield curve. This seminar will examine all of these concerns and present actionable strategies to better prepare your institution for the uncertainty ahead. Join us for an in-depth discussion of the following topics:

Register online at GoBaker.com/wisconsin. For more information call Skoshi Heron at 888.990.0010.

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AUGUST 2022

The Reversal of America’s Great Resignation Workers return in droves to businesses across the U.S. By Hannah Flanders Across the U.S., employers are seeing workers return following a mass reshuffle in employment. Beginning in 2021, the year following the initial shock of the COVID-19 pandemic, millions of employees began seeking new opportunities with different companies or shifting entirely to different industries. However, as competition continues to grow and COVID precautions subside, many are beginning to return to their previous employers.

More than one in four people who quit their previous job regret their decision, according to a study by Joblist.

COVID Gives Way to New Opportunities The Great Resignation, spurred by aspects of the pandemic, gave individuals a push to reconsider their employment. The combination of COVID stimulus checks, early retirement, lack of childcare, and reluctance to return to the office caused many — over 47 million, according to the U.S. Bureau of Labor Statistics — to voluntarily quit their jobs in 2021. While many of these individuals — 53%, according to Pew Research Center — did not completely exit the workforce, workers seeking higher pay or greater benefits — including remote options — were presented with a greater opportunity to find a new employer.

Not What They Expected The beginning of 2022 marked a new wave for employees — the Great Regret — or the reversal of the Great Resignation. Some in client-facing, technology, and consumer industries quickly realized that new roles or companies may not have been the best fit. With

increasing turnover, onboarding within many companies became less personal and individuals were often not allotted enough time to get comfortable in their new environment. In addition, remote work offered fewer social interactions and work-life balance sometimes took a backseat. Seventy-two percent of employees surveyed by Muse in early 2022 stated that they had experienced surprise or regret in connection to what a new job opportunity led them to believe. Of the 2,500 individuals surveyed, 80% stated that it would be acceptable to leave a new job before six months if it didn’t meet initial expectations. Additionally, as widespread access to COVID-19 vaccination continues, businesses and schools across America have re-opened their doors and many individuals are reconsidering their desire for fully remote work. A survey conducted by PwC reported that around 83% of employees have already returned to the office at least two days of the week.

Boomerang Employees Each year, the number of boomerang employees — or those who return to a previous employer — continues to rise. In 2021, according to data presented by LinkedIn, 4.3% of all new hires were previous employees whereas 10 years prior, these individuals only represented around 2% of new hires. Rehiring former employees is strategic for both the employer and the employee, but it’s important to consider why they departed initially. While the

business regains knowledgeable talents who may not need extensive onboarding, the employee often returns with a higher salary or new position (given their gained experience during their departure and increased negotiating power) and is familiar with the workplace culture. According to Glassdoor, recruiting former employees could save organizations up to $20,000 per hire. While of course not every former employee may be the perfect fit for the position, considering boomerang employees could tap Wisconsin businesses into “new” candidates that have the ability to fill important positions and reduce costs in today’s competitive job market.

Returning to the Workforce As pandemic precautions subside and employees rethink previous career changes, many individuals are returning to their previous employers. According to a study conducted by Joblist, more than one in four people who quit their previous job regret their decision. Although boomerang employees remain a small but growing percentage of new hires each year, the Great

In 2021, 4.3% of all new hires were previous employees according to data presented by LinkedIn. Regret has shown the return of many individuals who had previously left the workforce due to the pandemic, including those lacking childcare or entering early retirement. Be it to combat rising inflation or to explore new opportunities outside of the home, 2022 has shown millions of individuals returning to work. Just this year, unemployment rates in Wisconsin hit record lows thanks to more individuals feeling comfortable with returning to the office, parents sending their children back to in-person classes, and previously retired Americans rejoining the workforce in droves. Whether it be considering “boomerang employees” or welcoming back those who exited the workforce as a result of the pandemic, businesses throughout the state are seeing more opportunities to regain workers lost to the Great Resignation and benefit from the growing talent pool. Flanders is WBA writer/editor.

Wisconsin Bankers Foundation Announces New Executive Director The Board of Directors of the Wisconsin Bankers Foundation (WBF) is pleased to announce that Cassandra Krause has been selected to serve as the Foundation’s executive director. WBF, the nonprofit arm of the Wisconsin Bankers Association, has a mission to promote financial literacy and capability through education, grants, scholarships, and research. In addition to leading the Foundation, Krause will continue in her role as WBA communications manager, which she began in March of 2021. Krause holds a bachelor’s degree from the University of Wisconsin-Madison and a master’s degree from the Goethe University in Frankfurt, Germany. Contact her at 608-441-1216 or ckrause@wisbank.com.

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AUGUST 2022

Serving Increasingly Diverse Communities PremierBank’s Bilingual Initiatives Committee helps bank serve Hispanic community By Kathleen Rolfs Between 2000 and 2015, the Hispanic population in Wisconsin doubled in size with an increase of 95%, according to a demographic summary conducted by the Wisconsin Department of Health Services. This was the most rapid population increase of any of Wisconsin’s various racial groups (White, Black/African American, American Indian, and Hispanic.) During this span of time, Wisconsin’s overall population increased by roughly 400,000 residents, with Hispanics making up 46% of this increase. With Hispanics being the fastest growing minority population in Wisconsin, it is important that community banks thoughtfully consider how they are best meeting

Strategic Connections Kathleen Rolfs

the financial needs of this influential consumer base. Although individual desires and product requirements are as diverse for the Hispanic community as any other demographic, one way that PremierBank is successfully serving our Hispanic friends and neighbors is through our unique Bilingual Initiatives Committee. This group is comprised of several bilingual bankers along with marketing and retail banking officers. The goals of the committee include

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identifying opportunities that exist within our communities for strategic community partnerships, and collaborative education within our organization to ensure all our bankers are equipped to understand and anticipate the needs of the rapidly growing, ethnically diverse Hispanic community.

Bilingual Bankers Share Their Heritage At a minimum, having bankers on staff who speak the same native language of those who live and work in our communities is one of the most obvious ways that we can reduce or eliminate language barriers with our Hispanic customers and successfully deliver the most appropriate financial solutions to them. Guided by our Bilingual Initiatives Committee, our bilingual bankers help provide education within our organization about the Hispanic community. Peer-to-peer learning is a powerful tool that helps break through biases and promulgates understanding. As such, we have found that giving our bilingual bankers many opportunities throughout the year to share their heritage with their colleagues encourages a much deeper understanding of our local Hispanic population, while simultaneously building community within our own organization.

During last year’s Hispanic Heritage month, PremierBank treated all employees to traditional pan dulce or “sweet bread” served fresh from a local Mexican baker. These were personally delivered by members who serve on the Bilingual Initiative Committee, some of whom were dressed in traditional Mexican apparel, with an explanation of the history of these tasty treats! Inexpensive activities encourage understanding and respect among a diverse workforce, while providing education about this important segment of banking prospects and customers.

Bilingual Banking Community Outreach Whether through financial contributions, sponsoring a resource fair that targets the Hispanic community, or creating our own event that caters to the Hispanic community, PremierBank’s Bilingual Initiative Committee is intentional in the quest to find new events to support within our footprint area. In September 2022, a “Hispanic Heritage Celebration” is being planned at one of our banking locations complete with food trucks, traditional Central and South American dancers, and a lively mariachi band. After working (continued on p. 11)

Staff Change? Address Change? Let WBA Know A strong foundation in thought leadership in payments and ongoing personalized support.

Ease into innovative payment products at icba.org/bancard

Getting information to the right person quickly is critical in these challenging times. Has there been a personnel change at your bank, or are WBA’s mailings targeted to the wrong staff? Please send your address corrections and/or additions to our database administrator, WBA Assistant Director – IT Randy Molepske, at 608-441-1212 or requests@ wisbank.com.

AUGUST 2022

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And the Annual Scenes of Wisconsin Photo Contest Winners Are… There’s still a little time to order your 2023 calendars! The winning photographs for the WBA 2023 Scenes of Wisconsin calendar have been chosen! A panel of five judges reviewed almost 200 submitted photographs and selected 12 striking images to be featured on each month of the calendar next year. Each photo submitted for the contest was captured in Wisconsin by a Wisconsin banker, their family member, or a bank customer. The winning photographers for the 2023 calendar are: » January: Michael DeWitt, Northern State Bank, Ashland » February: Nicole Thompson, Stephenson National Bank & Trust, Marinette » March: Torrie Bland, First Bank of Baldwin

2023

SCENES OF WISCONSIN

YOUR BANK LOGO HERE

» The 2022 Scenes of Wisconsin calendar cover. Be sure to place your order by August 15, 2022 at wisbank.com/ScenesOfWI.

» April: Dawn Hubet, Farmers &

» June: Jenelle Thompson, Merchants Union Bank, Fall River AbbyBank, Wausau » May: Melinda Shoemaker, » July: Lloyd Fleig, Frandson Mayville Savings Bank Bank & Trust, Eau Claire

» August: Tyler Stamper, Bankers’ Bank, Madison

» September: Isaac Christenson, First Bank of Baldwin

» October: Daniel Anderson, Nicolet National Bank, Green Bay » November: Lisa Rosinsky, Bank First, Manitowoc » December: Pamela Plenge, Union State Bank of West Salem If you are looking to add some scenic views to your marketing lineup, consider placing an order for the high-quality, cost-effective 2023 Scenes of Wisconsin calendar. You can learn more about the calendar and place your order at wisbank. com/ScenesOfWI. Orders are due August 15, 2022!

Diverse Communities (continued from p. 10) with the local convention and visitor’s bureau and receiving advice from the city parks and recreation department, our Bilingual Initiatives Committee has found enthusiastic community support in our efforts to plan this upcoming community event that will celebrate Hispanic customs, cuisine, and heritage.

Building Long-Term Relationships As marketers, we know that the Hispanic segment is an incredibly valuable consumer group. With an annual purchasing power of over $1.5 trillion, this powerhouse community is more likely to start a new business than any other demographic and it accounts for a larger percentage of home purchases than ever before, according to an article published by Forbes. However, we cannot simply

make token efforts to attract their business. To reach this audience, cater to their actual needs, and stand out from our competitors, banks need to establish an authentic connection in an honest and respectful way. Our Bilingual Initiatives Committee is making a difference at PremierBank by helping us to build authentic, meaningful relationships both inside and outside of our bank. Because of this, the business relationships we have formed with our Hispanic customers and community partners are based on understanding and respect and will endure long into the future. Rolfs, vice president, director of marketing at PremierBank in Fort Atkinson, is a member of the 2022–2023 WBA Marketing Committee. This column is published bi-monthly in Wisconsin Banker and is written by members of the WBA Marketing Committee.

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AUGUST 2022

Ag Costs Threaten 2023 (continued from p. 1) fuel locked in for this year less than $3,” said Jenny Jereczek, director of ag banking for Security Financial Bank in Durand. “So they’re doing all right for this season. What I’m hearing and seeing and in talking with people is 2023. Right now, there is not really a good opportunity to contract good pricing for next year, and will there be? No one has the crystal ball.” Bradley J. Guse, senior vice president/agribusiness banking for BMO Harris Bank in Marshfield, said many farmers, coming off a good 2021, are having a strong 2022 in spite of the rocky economy. He cited record crop prices in the first three months of the year, when prices typically are low, and the benefit of farmers growing their own feed.

“What I’m hearing and seeing and in talking with people is 2023. Right now, there is not really a good opportunity to contract good pricing for next year, and will there be? No one has a crystal ball.” — Jenny Jereczek director of ag banking Security Financial Bank Durand

“In Wisconsin, we grow a lot of our feed. That’s a big advantage to our Wisconsin dairy guys,” Guse said. “Because of that, they are feeding feed that they grew last year now, and last year’s cost to grow was a lot cheaper than this year. So we’ve got low feed prices because we grew cheaper last year, and we're running the into these high milk prices. And we’re seeing margins that are just phenomenal.”

Annual WBA Agricultural Lending School August 10–12 • WBA Office, Madison The annual WBA Agricultural Lending School, August 10–12, is a three-day school designed for attendees with an intermediate level of ag lending knowledge. Case studies, in-class work, class discussions, and a farm visit are all elements of the school. An optional pre-school workshop is also available on August 9. Visit wisbank.com/all-events to register or learn more.

Milk has been selling for about $25 per 100 pounds, hovering near record levels. But he, too, is concerned about next season. “I’m not so worried about my clients and my portfolio this year as I am next year,” Guse said. Ag bankers said international events and circumstances often set the stage for prices farmers pay to produce their goods and the prices they get at market. “There was a drought in South America, a pretty serious one. That’s impacted crops — corn, soybeans — that are big crops in South America, especially soybeans,” Coggins said. “So we’ve got really high soybean prices in part because of that. But also, the war in Ukraine has had a serious impact on supplies of grains in general, but basically corn, wheat, barley, sunflower oil. Russia exports a fair amount. Ukraine exports a fair amount. I think the Black Sea region produces about 12% of the world’s calories, and so that’s a big deal.” That affects the availability of those grains and pushes up the price. In Wisconsin, that means dairy farms that buy their feed pay more. But, in turn, it provides higher prices for the state’s grain producers. What happens in the Black Sea region also has an impact on fertilizer prices. Coggins said 47% of the world’s

phosphate and potash, which are used in fertilizer, come out of Russia and Belarus. “There’s not a lot of other alternatives for getting that fertilizer. Most farms were in OK shape this year. Might have been able to lock in some prices late last fall or winter,” Coggins said. “But there is a lot of anxiousness about what those prices and availability might look like for 2023.” The rise and fall of energy prices also is an inescapable fact of life for farmers. According to the Diesel Technology Forum, diesel engines power about 75% of all farm equipment, transport 90% of farm products, and pump about 20% of agriculture’s irrigation water in the U.S. Lance Lansing, vice president-commercial and ag loans for Wisconsin Bank & Trust, said the price rise with diesel fuel is mostly a refining capacity issue. “Investors don’t want to put new refineries up right now,” said Lansing, who works out of Monroe and Platteville. “With electric cars coming out, nobody’s running to put new refineries up and have that sort of investment, not knowing what their return’s going to be.” Lansing described the current farm economy as “volatile.” “There’s a lot of moving parts. One saving grace is we have had good commodity prices. The milk price has obviously been up, and futures

“I’m just a small section of the state here, but a lot of people aren’t reinvesting as far as in growth mode. They are more in ‘Let’s find out what’s going to happen, pay down debt, right-size debt type’ mode.” — Lance Lansing vice president – commercial and ag loans Wisconsin Bank & Trust Dodgeville

still look good. Same with the row crops. The row crops are still looking good, and a lot of people are locked in at a profit in 2022,” Lansing said. “2023 might be a different story.” Although there is worry about next year, many farms today are in a good position financially, Jereczek said. But they are being cautious. “At least in this area, we’re seeing some expansion, but maybe not like we’ve seen in the past when commodity prices have gotten to these levels,” Jereczek said. “I think farmers and bankers alike are more strategic this go-round, and have learned a lot from the past in regards to now is the time for improving leverage positions, paying down debt, paying down lines of credit and maybe stacking some cash away in savings for liquidity purposes, and those kinds of things.” (continued on p. 13)

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AUGUST 2022

Ag Costs Threaten 2023 (continued from p. 12) Still, some are making strategic equipment purchases they delayed when finances were tighter four or five years ago, she said. Lansing said he isn’t seeing many farmers interested in spending to expand herds or land right now, even though commodity prices are high. “I’m just a small section of the state here, but a lot of people aren’t reinvesting as far

“I think there’s more anxiety about what next year looks like than there is over what this year looks like right now.” — Dave Coggins senior vice president ag banking Nicolet National Bank Green Bay

as in growth mode. They are more in, ‘Let’s find out what’s going to happen, pay down debt, right-size debt type’ mode,” Lansing said. Higher interest rates might be dampening some spending by farmers, but it’s hard to say how much. “I think the interest rates are maybe a little bit inhibiting some of that stuff,” Jereczek said. But she said a lot of operating lines already were done over the winter and early spring. “So they are not necessarily impacted by the rate increases we’ve see more recently,” Jereczek said. Ag bankers said crop conditions generally look good around the state, but rain will be needed in early August. “Rain in July makes corn, rain in August makes beans,” Guse said.

Coggins said it appears soybeans are likely to be a winning crop this year. “Soybeans are really at all-time highs for price right now, in large part because of what happened in South America,” he said. “And the input costs of soybeans are less than corn, so that’s a crop that has the potential to be a winner this year, absent any major weather events.” As for how farmers fare next year, much will depend on inflation and its upward pressure on input expenses, ag bankers said. “Financing of inputs for next year could be a completely different story,” Jereczek said. A recession might also be looming. While demand for Wisconsin farm products is high right now, a recession could change the outlook.

“I think every ag banker right now is worried about a recession destroying [farm product] demand. I think we’re all concerned about that — what’s on the horizon.” — Bradley J. Guse senior vice president – agribusiness banking BMO Harris Bank, N.C. Marshfield

“I think every ag banker right now is worried about a recession destroying that demand,” Guse said. “I think we’re all concerned about that — what’s on the horizon.” Gores is a journalist who covered business news for the Milwaukee Journal Sentinel for 20 years.

At Quad City Bank & Trust

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14

AUGUST 2022

Bulletin Board

News about people working in Wisconsin’s financial institutions Promotions and New Hires Collins Collins State Bank has announced the promotions of Ben Becker (pictured) to president, Mickie Steldt to executive vice president, Alan Mayer to senior vice president, Mary Olm to vice president, Amber Krueger to assistant vice president, and Karla Kaseno to assistant vice president. Eau Claire Security Financial Bank (SFB) is pleased to announce that Julie Sabelko (pictured) has been promoted to chief operations officer. SFB has also announced the recent hires of Ann Gonstead-Hartle (pictured) as compliance officer and Jennifer Moen (pictured) as a treasury management officer. Fitchburg Oak Bank is pleased to welcome Pete Thostenson

operations and Phil Plagemann (pictured) to facilities officer. Becker

Hemp Boll

Sabelko

Gonstead-Hartle

Kasten

Miller

Moen

Plagemann

Riemer

Knoll

to the team as a deposit operations specialist.

Cheadle as vice president – wealth management.

Fort Atkinson Badger Bank is pleased to announce the hiring of Attorney Karen L. Riemer (pictured) to the bank’s trust department.

First Business Bank is pleased to welcome Lorna “Rory” Hemp Boll JD, MBA, CFP (pictured), as vice president – trust advisor to the private wealth group. Luke Kasten (pictured) has also joined as vice president – wealth advisor.

Madison Bankers’ Bank has announced the addition of Chip Hansen as vice president – commercial banker, Dan Dockendorff as vice president – mortgage technology, and Sonja

Manitowoc Bank First is pleased to announce the promotions of Elizabeth Miller (pictured) to vice president – deposit

Marshfield Molly Knoll (pictured) has been promoted to vice president – senior commercial lender at Forward Bank. Medford Prevail Bank is pleased to announce that Brenda Knutson (pictured) has been promoted to marketing manager. Mukwonago Citizens Bank is pleased to announce the promotions of Adam Raychel (pictured) to senior vice president – chief financial officer and Ryan Lilly (pictured) to first vice president – business banker. Frank Sterbin (pictured) has also been welcomed as the new chief credit officer. (continued on p. 15)

Bank Five Nine Donates to the Dirty Ninja Mud Run for Kids™ Bank Five Nine recently donated $2,500 to the West Bend Parks and Recreation Department for their Dirty Ninja Mud Run for Kids™. This donation aided in the event that took place on Saturday, July 16 at Regner Park in West Bend. Pictured (left to right) are: Mike Jentsch, director of the West Bend Parks, Recreation, and Forestry department; and Stacey Weisenberger, branch manager, Bank Five Nine, West Bend branch.

Have good news? To submit a notice, please email bulletinboard@wisbank.com or mail entries to WBA Bulletin Board, 4721 South Biltmore Lane, Madison, WI 53718. Send photos as JPEG files. Questions? Contact WBA’s Hannah Flanders at 608-441-1237 or hflanders@wisbank.com.

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AUGUST 2022

Bulletin Board

News about people working in Wisconsin’s financial institutions Bulletin Board

Service Award after having dedicated over 40 years to his career at the bank.

(continued from p. 14) New Glarus The Bank of New Glarus is excited to announce the addition of Kurt Schaefer (pictured) as vice president – retail sales. Union Grove Community State Bank (CSB) is pleased to announce the promotions of Eloissa (Ellie) Heigl (pictured) to media and communications director and William (Bill) Fliess (pictured) to assistant vice president – credit review manager. Waukesha National Exchange Bank & Trust has welcomed Joe Weber (pictured) as mortgage loan officer.

Congratulations Knutson

Raychel

Lilly

Sterbin

Schaefer

Heigl

Fliess

Weber

Hernandez

Randl

Wisconsin Dells Lori Schultz (pictured), assistant vice president and branch manager of Bank of Wisconsin Dells, Lake Delton branch celebrated 40 years with the bank on May 17.

Announcements

Heiner

McCoy

Osorio

(pictured) to senior assistant vice president – mortgage loan officer of its Waunakee location.

Wausau Peoples State Bank has Waukesha State Bank is proud announced the promotion of to announce the promotion of Amanda Heiner (pictured) Mondi Hernandez (pictured) to mortgage loan officer. to vice president – south region Peoples has also announced retail banking manager. the hiring of Megan McCoy (pictured) as vice president and Waunakee marketing director and John One Community Bank is excited to announce the recent Osorio (pictured) as Waukesha location branch manager. promotion of Corey Randl

Prevail Bank Donates $5,000 to Help Build Quadplex in Wisconsin Rapids Prevail Bank has donated $5,000 to the Wisconsin Rapids Public Schools (WRPS) to assist in constructing a destination athletic facility that will enhance school district programming and community revenue. The facility will include two baseball diamonds and two softball diamonds (commonly referred to as a quadplex). Pictured (left to right) are: Craig Broeren, superintendent of the Wisconsin Rapids School District; Taylor Doescher, branch manager, Prevail Bank; Daniel Guck, project co-organizer; and Brian Ashbeck, vice president and commercial lending officer, Prevail Bank.

Bernander

Schultz

Wauwatosa Laura Christenson now serves as community president of WaterStone Bank’s Pewaukee branch.

Retirement Wisconsin Dells Kevin Bernander (pictured) retired from his role of senior vice president/chief credit officer at Bank of Wisconsin Dells in June 2022 after 41 years with the organization. He received a WBA Lifetime

Port Washington Port Washington State Bank is excited to announce a renovation project involving the former Dairy Queen located at 218 E. Washington Street, just west of the bank’s headquarters in downtown Port Washington. With support from The Redmond Company of Waukesha, PWSB plans to create the PWSB Community Room for meetings and events.

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AUGUST 2022

Your

EDUCATION Calendar Conferences I Summits

Schools I Boot Camps

Seminars I Workshops

WBA Webinars

AUGUST 2022

OCTOBER 2022

• Agricultural Lending School 10–12 Madison; $895/attendee (an optional pre-school workshop is available on August 9)

• Principles of Banking Course 5–6 Mineral Point; $550/attendee

18

• Chairman’s Member Appreciation Golf Outing Wisconsin Dells

• Deposit Compliance School 22–23 Madison or virtual; $535/attendee 30

• Branch Manager Boot Camp: Session 4 4-part series; virtual half-days; $800/attendee

SEPTEMBER 2022 1

• Internal Audit Workshop Madison; $245/attendee

7

• WBA/MBA Advanced Financial Statement & Cash Flow Analysis Workshop Lansing, Mich. or virtual; $265/attendee

8

• WBA/MBA Advanced Tax Return Analysis Workshop Lansing, Mich. or virtual; $265/attendee

9

• WBA/MBA Advanced C&I and CRE Lending Workshop Lansing, Mich. or virtual; $265/attendee

• Management Conference (including tracks for CEOs, CFOs, CCOs, HR, and other bank leaders) 13–14 Wisconsin Dells • Secur-I.T. Conference (including tracks for BSA/AML, Operations, Security, and Technology) 20–21 Wisconsin Dells

Other Events

• Commercial Lending School 12–14 Madison; $895/attendee • Family-owned and Closely Held Bank Strategic Retreat 13–14 Madison; $245/banker attendee • Supervisor Boot Camp 18–19 Madison; $535/attendee • FIPCO Software & Compliance Forum: Loan & Mortgage 19–20 Virtual 20

• Branch Manager Boot Camp: Session 2 4-part series; virtual half-days; $800/attendee

25 26

• Community Bankers for Compliance (CBC) — Session IV Stevens Point; membership (pricing options vary) Madison; membership (pricing options vary)

26 27

• FDIC Directors College Wausau; $225/attendee Madison; $225/attendee

• Principles of Banking Course 26–27 Eau Claire; $550/attendee

NOVEMBER 2022 2–3

• Personal Banker School Madison; $495/attendee

22

• Branch Manager Boot Camp: Session 1 4-part series; virtual half-days; $800/attendee

9

• BOLT Winter Leadership Summit Wisconsin Dells; $150/attendee

27

• IRA Essentials Workshops Madison or virtual; $245/attendee

10

• Branch Manager Boot Camp: Session 3 4-part series; virtual half-days; $800/attendee

28

• Advanced IRA Workshops Madison or virtual; $245/attendee

15

• Compliance Forum: Session 2 Wisconsin Dells; annual membership (pricing varies)

29

• HR Workshop Madison; $245/attendee

• LEAD360 Conference 16–17 Wisconsin Dells

» Visit www.wisbank.com/education for more information and online registration. » Or email WBA Education at wbaeducation@ wisbank.com or call 608-441-1252.

17

AUGUST 2022

Streamline Digital Loan Applications and Document Collection with ConnectFI

Ease both the customer’s and employee’s digital application experience While the pandemic dramatically moved everyday tasks to digital platforms during a time of social distancing, many of these trends will continue to stick around in this new era. What was once a dependence on online services has evolved into a convenience that consumers want to continue to utilize. Online accessibility is a necessity, however, maintaining customer relationships is more important than ever. » Connection comes at a premium, and making sure banks stay connected to customers — while remote — is key.

Connection comes at a premium and making sure banks stay connected to customers — even while remote — is key. To aid in that connection, FIPCO is excited to offer a cloud-based online loan application, deposit account opening, and document collection solution called ConnectFI. ConnectFI eliminates data entry with digital applications and drastically reduces time

» Register for an upcoming ™

» Contact Jeremy Tyler at jtyler@fipco.com or 800-722-3498, ext. 254 to learn more.

spent collecting documents, so bankers can spend more time doing what they do best: building customer relationships. ConnectFI modules for consumer loans, mortgages, and commercial are available. Potential borrowers can access loan applications 24/7, either on the bank’s website or directly sent to them by a loan officer, so they are able to fill out and update the applications on their own time. Borrowers use a guided online application portal to complete forms and upload required documents. They also receive timely email reminders of outstanding tasks to keep the loan moving forward. If a loan officer requires an additional document, they can request extra documents through the loan officer dashboard. The loan officer dashboard also ensures process transparency. Borrowers, loan officers, and other staff will always be up to date on

the status of every loan as they progress through the application process, including outstanding forms and document requirements. This reduces the staff time spent collecting documents, keeps everyone on the same page, and makes sure that the loan continues to move forward in a timely manner. ConnectFI also saves staff time by eliminating data entry for loan applications. Borrowers fill out the digital applications, and the data transfers directly from the system into your Loan

demonstration at fipco.com/training/ sales-marketing-events to learn more about ConnectFI.

Origination Software (LOS) or forms software with our direct integrations. To learn more about this simple and secure solution, contact FIPCO’s Jeremy Tyler at jtyler@fipco.com or 800-722-3498, ext. 254, or register for an upcoming ConnectFI demonstration at fipco.com/training/salesmarketing-events. Tyler is the ConnectFI specialist for FIPCO.

CONNECT The ConnectFI Digital Lending Solution enhances the borrower online experience and streamlines your loan process

SAVE TIME WITH DIGITAL LENDING FEATURES

WBA Associate Member Program The WBA Associate Membership program offers three membership package levels in addition to the standard membership: Gold, Silver, and Bronze. Through their investment in a package-level membership, these WBA Associate Members not only streamline their involvement with the Association through advertising, sponsorships, and exhibiting opportunities, they further demonstrate their commitment to supporting Wisconsin’s banking industry as a whole. To learn more about the WBA Associate Member Packages, visit www.wisbank.com/associates/associate-member-packages or contact WBA‘s Nick Loppnow at nloppnow@wisbank.com or 608-441-1259.

✓ Online applications ✓ Automated document collection ✓ Borrower notifications ✓ Third-party integrations

BENEFITS

✓ Close loans faster ✓ Eliminate data entry ✓ Quicker document collection ✓ Easy to implement & use

Mortgage, Commercial, and Consumer Modules plus online deposit account opening fipcosales@fipco.com

800-722-3498

18

AUGUST 2022

What Community Banks Need to Know as Crypto Usage Expands Cryptocurrency is currently an unregulated, speculative investment By Hannah Flanders With the increasing rise in popularity of cryptocurrency throughout the U.S., it is no question that banks and regulators alike aim to understand this unique form of encrypted exchange while also helping to protect the millions of individuals who have already invested in, traded, or used digital assets. In May, crypto investors experienced the most severe price crash the global crypto market has ever seen. As inflation rises and individuals continue to draw what money they have left out of the market, prices continue to drop each day.

Currently, one federal legislative proposal, the Responsible Financial Innovation Act (RFI), would establish a regulatory framework for digital assets by providing industry and regulator clarity, clarifying standards, establishing jurisdictional boundaries, and protecting consumers. Cryptocurrency is a speculative investment for both banks and individuals engaging with it, and currently, there are no specific regulations tailored to it. As the market this last year has shown, although the market experiences rapid unpredictability and growing connections to money laundering activity, consumers and business alike continue to be interested in the potential benefits of this transferable wealth. In this, many regulators are attempting to harness the security of financial institutions that are entering into the untamed landscape.

Guidance to Consider When Participating in Cryptocurrency » Authority of Banks to Engage in Cryptocurrency Activities (OCC)

» Types of Cryptocurrencies Utility | Exchange | Payment Security | Stablecoins | NFTs DeFi tokens | Asset-backed tokens » Contact WBA’s legal call program at 608-441-1200 or wbalegal@wisbank.com for answers to your questions on legal developments or regulations related to crypto or other compliance matters.

» FinCEN Advisory: Illicit Activity Involving Convertible Virtual Currency » Notification of Engaging in Crypto-Related Activities (FDIC) » President Biden’s Executive Order: Ensuring Responsible Development of Digital Assets » The Bank Secrecy Act of 1970 » The Investment Company Act of 1940 » The Securities Act of 1933

As agencies — including the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) — jockey to assert regulatory authority and supervision over digital assets, it is important for banks and their counsel to consider that no regulations have been established regarding bank involvement with digital assets. In March 2022, President Joe Biden issued an Executive Order regarding the need to establish consumer/investor protection and focus on financial stability, inclusion, and preventing against illicit activity within the American crypto market. Of this came an increase in guidance issued by several national agencies. Guidance by the Federal Deposit Insurance Corporation (FDIC) states that all FDICsupervised institutions that intend to engage in, or that are currently engaged in, any activities involving or related to digital assets should notify the FDIC. This action aims to provide supervisory feedback in the wake of activities that pose significant safety and soundness risks as well as financial stability concerns to banks. Additionally, the

Office of the Comptroller of the Currency (OCC) advises that banks should not engage in cryptocurrency until they have notified their supervisory office and received a non-objection form. The Financial Crimes Enforcement Network (FinCEN) has also issued several advisories to banks regarding illicit activity involving cryptocurrency. Banks should demonstrate compliance with their anti-money laundering (AML) programs and be aware of the prevalence of unregistered entities without sufficient AML controls. As with every new relationship, banks are advised to also consider the Bank Secrecy Act of 1970 (BSA) when engaging with digital assets. In addition to guidance from federal agencies, banks should also be aware that state agencies and legislators may also begin acting on Biden’s order. In this, more proposed legislation to encourage innovation in the financial sector while also enforcing consumer protections may begin appearing at both the state and federal levels. Currently, only one legislative act has been

proposed at the federal level by U.S. Senators Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R-Wyo.). If enacted, the Responsible Financial Innovation Act (RFI) would establish regulatory framework for digital assets by providing industry and regulator clarity, clarifying standards, establishing jurisdictional boundaries, and protecting consumers. At the state level, Wisconsin’s Department of Financial Institutions (DFI) and Department of Agriculture, Trade, and Consumer Protection (DATCP) have cautioned Wisconsin banks and consumers of the risks of crypto. While no legislation has yet to be proposed or passed, Wisconsin bankers should expect that — like many other states — state regulation may be forthcoming. For questions on legal developments or regulations related to crypto or other compliance matters, please reach out to WBA legal at wbalegal@wisbank.com or 608-441-1200.

19

AUGUST 2022

Mostly Cloudy, Chance of Storms

What Could a Recession Mean for Your Bank? By Brett Patten and Kent Musbach By the time you happen upon this article in the August edition of the Wisconsin Banker, we will all know whether the U.S. economy has fallen into the 14th recession since the end of World War II. In fact, the Atlanta Fed GDPNow suggested in early July the recession had already started. This recession will be (or is) largely because of unintended consequences of massive monetary supply increases and a collective underestimation of resultant inflationary pressures. On cue, the truth-telling yield curve has pushed yields aggressively higher in 2022. And perhaps most importantly, since early July, the curve has changed its posture towards a recessionary warning, as the U.S. Treasury yield curve inverted between the 2-year and 10-year maturities — a historically pertinent predictor of imminent recession. All this aside, what matters to community bankers isn’t so much defining whether we are technically in a recession — but rather focusing today on taking action as stewards of your institution to prepare your stakeholders for potential recessionary impacts. The first issue to consider is the health of the consumer because of the reliance our economy has on their

» bokfinancial.com

spending. While it is true the labor market is very strong and employees are commanding higher compensation levels in nearly every industry, real person incomes are actually falling, meaning inflation is increasing faster than those incomes. Stock market losses thus far in 2022 have also provided a one-two punch to consumer confidence. At the same time, home affordability has taken its largest drop since 2013 as mortgage rates have nearly doubled and median home prices have surged. Already, these consumer stresses have manifested into increased revolving debt balances (up 16.8% in Q1 2022 over 2021) and declining savings rates (5.4% May 2022 vs. an 8.6% 10-year average), both negatives for liquidity in the banking system. The decline in home affordability portends a host of issues from a large drop off in mortgage activity already being seen by originators, potential increased delinquencies and the decreased spending which comes along with a slowing housing market. Given these trends, a resurgence in home

equity lending seems to be quite plausible; perhaps this will again be an area of growth to target — but only if you can get comfortable with seemingly elevated real estate values. Next consider commercial credit. Despite seemingly being in the late stages of a growth cycle/beginning of a recession, the current environment across much of our state is one of historically tight credit spreads. Loan rates have generally not kept pace with the rising risk-free rates of Treasuries. Commercial collateral valuations, like the residential market, are also towards their peak. Could it be the newest deals currently being priced and placed on balance sheets (tight spreads, higher loan to value ratios than existing loans along with elevated collateral prices) turn out to be the most problematic in a recession? Investment portfolio decisions today are especially important. The Fed historically has been late to the party, having to raise rates quickly to catch up to a forwardlooking bond market only to quickly reverse policy as the economy stalls. If this happens once again, optionality in the portfolio will come into play — in a negative way with accelerated cashflows from pre-payable bonds.

Having securities that accomplish the goals of both extension protection (in case rates continue higher due to inflation) and

» What matters to a community bank isn’t so much defining whether we are technically in a recession — but rather focusing today on taking action.

prepayment protection (in case rates crater after the Fed goes too far) could lead to outperformance. Finally, going into a recession now could be difficult on margin. Cost of funds may not elevate to levels high enough to provide any meaningful lift to margin in a downturn. At the same time, loan demand will likely weaken placing downward pressure on overall asset yield. Indeed, we could be heading into a stormy period with several headwinds, but if you are able to address these challenges early and successfully, your institution may have the opportunity to outperform. Patten is vice president and Musbach is senior vice president and team lead with BOK Financial Institutions Group, a WBA Gold Associate Member.

The opinions expressed herein reflect the judgment of the author(s) at this date, and are subject to change without notice. The information provided has been obtained from sources believed to be reliable, but not guaranteed. Forward-looking statements contained herein are based on current expectations and the economy in general, and are not guarantees of future performance. Likewise, past performance is not a guarantee of future results. Bank dealer services offered through Institutional Investments, Bank of Oklahoma, which operates as a separately identifiable trading department of BOKF, NA. Services may be offered under our trade name, BOK Financial Institutions Group. BOKF, NA is the bank subsidiary of BOK Financial Corporation. Some services may be offered through BOK Financial Securities, Inc., member FINRA/SIPC, and an affiliate of BOKF, NA. Investment products are: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

20

AUGUST 2022

See Into the Mind of a Cybercriminal

WBA’s Secur-I.T. & BSA/AML Conference returns in 2022 As cybersecurity and fraud continue to be rising topics of discussion throughout the banking industry, bankers are encouraged to stay informed on the latest trends experts are seeing and how regulations will continue to impact Wisconsin banks by attending WBA’s annual Secur-I.T. & BSA/AML Conference held in Wisconsin Dells. The two-day conference — beginning September 20 and adjourning at noon on September 21 — draws over 125 BSA/AML, operations, security, and technology professionals from around the state for over seven hours of educational presentations and networking.

SECUR-I.T. & BSA /AML c o n f e r e n c e Sept. 20–21

W isconsin Dells

www.wisbank.com/Secur-IT

This year’s keynote session will feature Bryan Seely, a world-famous cyber security expert, ethical hacker, author, and former U.S. Marine. Seely became one of the most famous hackers in 2014 when he became the only person to ever wiretap the United States Secret Service and FBI. Before he was caught, he confessed to the two agencies that there

was an issue that needed to be fixed. Unlike many hackers, Seely is passionate about fighting for consumers rights, privacy, and educating the public about how to stay safe in a constantly changing technological landscape. In this keynote session, Seely will highlight the different ways in which hackers think and the new,

creative ways professionals must approach security in order to protect the most critical information of the business and customers. In addition to this captivating keynote speaker, the Secur-I.T. & BSA/ AML Conference offers several breakout sessions and networking opportunities that will assist banking professionals from throughout Wisconsin in further developing their bank’s customer experiences, BSA/ AML program, security, and technology capabilities as the banking and technology industries continue to evolve.

21

AUGUST 2022

Embracing the Future of Work at WBA’s Management Conference Join Wisconsin banking leaders in education and networking opportunities Banking leaders from throughout Wisconsin will once again reconvene in Wisconsin Dells for a two-day event focused on education and networking. WBA’s Management Conference, beginning on September 13, is a must-attend event for CEOs, CFOs, CCOs, HR leaders, and other members of the bank’s management team. An optional pre-conference golf outing is scheduled for September 13 at Rock Golf Club in Wisconsin Dells. Bankers interested in additional opportunities to connect with their banking peers and event sponsors should plan to attend. Following the outing, the event will kick off on Tuesday night with a dinner program recognizing individual bankers who will be receiving WBA’s 30- and 40-year Lifetime Service Awards. Bankers interested in

Honoring Bankers for a Lifetime of Service

receiving this recognition or honoring an individual who meets the service award criteria should visit wisbank.com/ ServiceAwards to complete the nomination form by August 19, 2022 to be included in the program. On September 14, bankers will have the opportunity to attend two general sessions and two rounds of breakout sessions that include four management-related tracks including credit/lending, human resources, finance, and general bank trends. In addition to networking

among peers, Wisconsin bankers will hear from Sarah Sladek, founder and CEO of XYZ University, LLC during her keynote session on managing and leading during the new era of workplace shift that has recently emerged. While preparing for increasing innovation, shifting values, global connectivity, disruption, and opportunity, Sladek will assist bank leaders and organizers in understanding why they may be struggling to lead a high-functioning team as well as provide insight into how bankers may best be able

» Lifetime Service Awards. Recognize bankers who have served the banking industry for 30 and 40 years. Lifetime Service Awards will be presented at WBA’s Management Conference on Sept. 13. Visit www.wisbank.com/ ServiceAwards to learn more and nominate someone from your institution.

to usher in a new generation of talent. To learn more and register for the upcoming event in Wisconsin Dells, visit wisbank. com/management. Questions regarding the conference can be directed to WBA’s Lori Kalscheuer, director – education, at lkalscheuer@ wisbank.com or 608-441-1250.

WISCONSIN BANKERS ASSOCIATION

MANAGEMENT C ONFERENCE

Sept. 13–14 | Wisconsin Dells Glacier Canyon Conference Center | 45 Hillman Road

www.wisbank.com/Management

Community bankers coming together for two days of networking and learning.

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Financial Stress (continued from p. 1)

What Can Employers Do? According to the 1,100 full-time employees surveyed by Purchasing Power, 57% say the benefits their employer offers have a major to moderate impact on their decision to stay at their current job. While unemployment rates return to pre-pandemic lows, employers must develop attractive benefit packages that not only meet the needs of incoming talent but set current employees up for success. These benefits — ranging from health insurance and vacation time to retirement planning and financial wellness programs — impact overall employee satisfaction, both personally and professionally, and save businesses billions of dollars each year.

» Sign up for the Wisconsin Saves Automatic Saving Initiative by visiting AutoSave. WisconsinSaves.org.

In a survey conducted by the American Psychological Association (APA), money stress experienced among Americans registered at its highest recorded level since 2015. By regularly reassessing employee benefit plans, businesses are better able to accommodate for common stressors — such as retirement and emergency savings — in relation to current events. Additionally, these opportunities allow greater chances for Wisconsin employers to integrate new, relevant, and cutting-edge tools for members of their team.

The Importance of Financial Wellness Programs More than ever, employees consider it the employer’s

The Cost of Employee Financial Stress

The top financial concerns of most full-time employees are retirement and emergency savings funds. responsibility to help employees with their financial well-being. In addition to providing employees the resources they need to feel secure, businesses that invest in financial wellness programs are more likely to retain current talent and save on the cost of recruiting and training. Today, wellness is no longer determined solely by physical health. In order to wholly provide for employees, employers must account for all aspects that create tension in one’s life. By promoting resources that help employees stretch their dollar, employers are increasing productivity, engagement, and attendance among those who may otherwise be severely impacted by their financial worries. PwC’s Employee Financial Wellness Survey, conducted in early 2022 on over 3,200 full-time employees, highlighted that among the 29% of employees currently looking for a new job, 65% cite money as their primary reason. However, both financially stressed and non-stressed individuals surveyed reported being

How Wisconsin employers can best invest in the security of their team

more likely to accept a position or stay with a company that they feel cares about their financial well-being. Wisconsin employers who are not doing so already should consider adopting financial well-being into benefit packages and adding financial education opportunities such as private coaching as resources for every employee. As housing costs, gas prices, and living necessities skyrocket around the country, individuals are seeking additional initiatives that aid in overcoming the recent additional stress.

and Financial Security report by the Consumer Financial Protection Bureau (CFPB). Additionally, 39% have less than a month's worth of income saved for emergencies. This lack of funds directly originates from, according

A Growing Need for Assistance Similar to how the nature of work and its demands have evolved over the last three years, workers too are reassessing their financial priorities. The U.S. Census Bureau states that, according to the most recent census data collected in 2020, Wisconsin’s median household income is $63,293, over $4,000 below the national average. Although the importance of establishing and ensuring a health emergency saving fund has been emphasized even more since the onset of the pandemic, a quarter of consumers still have no savings set aside for emergencies, according to the 2022 Emergency Savings

to the CFPB, an individual’s knowledge on how to save. Whether it be lack of information relating to saving or financial constraints, those without emergency saving funds are nearly three times as likely to “not know how to save” than those who have a fund of some proportion. The Society for Human Resource Management (SHRM) states that while upwards of 95% of organizations offer retirement savings plans, less than 35% offer financial planning/ coaching, and even less (15%) offer emergency savings funds such as payroll advances, causing many individuals facing an emergency to charge a credit card, borrow money, or cut other expenses.

Money stress experienced among Americans registered at its highest recorded level since 2015, according to the American Psychological Association (APA).

(continued on p. 23)

AUGUST 2022

23

Financial Stress (continued from p. 22) However, as the prices for necessities such as groceries, shelter, and gasoline rise — more Wisconsinites than ever are struggling to set aside funds for emergencies, their future, or even other commodities. In addition to setting a 40-year record for total increasing prices (a 9.1% increase since June 2021), both food and energy prices increased by 10.4% and 41.6% percent, respectively, in the last 12 months. These skyrocketing prices represent the largest price jumps consumers have seen since the early 1980s, according to data presented in the June 2022 Consumer Price Index.

Individuals are more likely to accept a position or stay with a company that they feel cares about their financial well-being, according to PwC’s Employee Financial Wellness Survey. Resources Available Financial wellness programs, such as America Saves and Wisconsin Saves, not only help employers meet the growing demand for budgeting tools, but these campaigns also build consumer confidence, assist individuals in reaching their financial goals, and save businesses added expenses caused by absenteeism or low productivity.

America Saves and Wisconsin Saves provide individuals with the tools and education needed to effectively approach savings goals such as retirement, debt repayment, or vacations. Be it a long- or short-term goal, America Saves supports low- to moderateincome households in saving money, building wealth, and preparing for the unexpected. The Wisconsin Saves initiative, brought forth by a coalition of Wisconsin organizations including the Wisconsin Bankers Association (WBA), promotes automatic saving opportunities through split deposit. The program, launched in 2021, encourages small- and medium-sized

employers to promote the ease and benefits of saving automatically for emergencies through split deposit. By promoting the success of these programs, » Learn more about America Saves by visiting AmericaSaves.org.

encouraging employees to take the America Saves pledge to access additional resources, or motivating teams to split their deposit into a savings fund — Wisconsin businesses can play an important and impactful role in helping their employees improve their financial well-being. Flanders is WBA writer/editor.

Family-Owned AND Closely Held

13–14

STRATEGIC RETREAT

OCTOBER

2022

The Edgewater Hotel | 1001 Wisconsin Place Madison, Wisconsin

www.wisbank.com/FOCH Presented by:

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AUGUST 2022

Congratulations, Graduates!

BankWork$ Milwaukee Training Program for Bankers The June BankWork$ class has now graduated! The Wisconsin Bankers Association is proud to partner with Employ Milwaukee to bring this nationwide program to Wisconsin. BankWork$ is a free, eight-week training program to prepare participants in primarily underserved neighborhoods for retail banking careers. This graduating class of five included: Yesenia Delgado, Daryll Lund attended the Nayeli Rocha, Dawanda ceremony and congratulated the Street, Evan Taylor, and graduates on their achievement. Darnesha Wilson. WBA’s Over the eight weeks, these

» The June BankWork$ graduates (left to right) are: Dawanda Street, Darnesha Wilson, Evan Taylor, Nayeli Rocha, and Yesenia Delgado. » Learn more about the BankWork$ program at https://www.employ milwaukee.org/Employ-Milwaukee/ Programs--Services/Adult-YouthPrograms/BankWork.htm.

students learned the hard and soft skills necessary for entrylevel retail and operations positions. The program began

in 2019 with the goal of training 400 students for positions in the banking industry over the next three years.

WE PROTECT YOU from the Unexpected

Professional/Specialty Lines • • • • • •

Financial Institution Bond Directors & Officers Liability D&O Civil Money Penalties Cyber Liability EFT Guard Excess Deposit Bond

Jeff Otteson Vice President of Sales jeffo@mbisllc.com 608.217.5219

Property & Casualty Lines • • • •

Property & Casualty Foreclosed Property Workers Compensation Umbrella Liability

Contact Us! www.mbisllc.com

Lending Related Lines • • • •

Master Property (Force Placed) Mortgage Protection Lenders Single Interest Flood Compliance Solutions

Melissa Noonan Account Manager melissan@mbisllc.com 608.441.1275

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AUGUST 2022

Making the Most of WBA’s Associate Members Finding the best services and products for your bank By Daryll J. Lund Each year, the banking industry becomes increasingly more competitive and with new trends, technology, and specialized services emerging at rapid speeds, there is no way for one single business to do it all. WBA’s Associate Member program highlights a broad spectrum of third-party providers from around the country that WBA-member banks may choose to partner with in pursuit of their own strategic goals. These companies most often specialize in specific products and services related to banks — from data processing to cybersecurity and talent management, to name just a few — and assist banks in enhancing their ability to better serve their customers. WBA’s Associate Member program offers WBA bank members access to over

Association Update Daryll J. Lund

150 vetted, dedicated companies that show their support for our industry in various ways. From sharing their expertise through resources published in our publications to presenting on hot topics at WBA events, our Associate Members help us create meaningful, relevant content that informs bankers throughout Wisconsin. If you have attended any one of WBA’s events, conferences, or outings, you will also know that WBA’s Associate Members play a substantial role in their continued success.

» To learn more about WBA Associate Members, contact WBA’s Nick Loppnow at nloppnow@wisbank.com or visit wisbank.com/associates.

On August 18, WBA will host its seventeenth annual Chairman’s Golf Outing. This complimentary event is one of the many programs sponsored by WBA’s Associate Members. In addition to the support of this annual outing for our members, WBA’s Associate Member program ultimately assists WBA in continuing to provide highvalue educational opportunities to bankers in their pursuit to support their communities. It is critical that banks have the ability to form strong partnerships with third-party vendors for the benefit of

the bank’s growth and the satisfaction of their customers. WBA’s Associate Member program offers just the place for community banks to locate whatever niche expertise and product specialization they need to stay ahead in our continuously evolving industry. With the help of Nick Loppnow, who re-joined the Association in June as director – associate membership and business development, WBA stands ready to identify companies that seek to assist Wisconsin’s banking industry and connect banks with the vendor(s) that will meet their needs. Those seeking a new partnership or looking to refer a company should contact Nick Loppnow at nloppnow@ wisbank.com or 608-441-1259. Lund is WBA executive vice president – chief of staff and president of EBC and MBIS.

A Special Thank You To…

WBA Chairman’s Member Appreciation Golf Outing Sponsors Thursday, August 18 • Trappers Turn Golf Club • Wisconsin Dells Gold Associate Members • BMO Harris Bank — Correspondent Banking • BOK Financial Institutions Group • Bankers' Bank • Bell Bank • Boardman & Clark LLP

• Cinnaire • FHLBank Chicago • FIPCO • ICBA • WBA Insurance Services

• UFS LLC • Wipfli LLP

Associate Members

Bronze Associate Members • Arctic Wolf Networks • BHG Financial • The Baker Group • Bank Compensation Consulting • Eide Bailly LLP • Executive Benefits Network • Godfrey & Kahn, S.C.

Silver Associate Members

• JMFA • Plante Moran • Quad City Bank & Trust • Reinhart Boerner Van Deuren s.c. • SHAZAM • VGM Forbin

• AmTrust Financial Services • First Business Bank • Generations Title • Ironcore, Inc • New Era Technology • PCBB • Remedy Consulting • UHC

Contact WBA’s Nick Loppnow at nloppnow@wisbank.com or 608-441-1259 to learn more.

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AUGUST 2022

Community Advocate of the Month Wisconsin’s bankers are the definition of “community advocates” in all that you do every day to improve your local economy through your bank’s products and services, as well as through your generous philanthropy of time and money. This column shares and celebrates the diverse backgrounds, experiences, perspectives, and innovation of some of the extraordinary bankers in this state. Rose Oswald Poels

Q&A

The following is a brief interview between WBA President and CEO Rose Oswald Poels and Spring Bank, Brookfield CEO David Schuelke. Read past interviews at www.wisbank.com.

Rose: How did you first get into the banking industry?

David: I was born into a banking family. Even though my father, Don Schuelke, was a banker, he didn’t encourage me to pursue a banking career and it wasn’t an original career goal for me. I graduated college with an accounting degree David Schuelke intending to enter public accounting. However, I accepted a good offer from First Wisconsin Bank to start my professional career. At First Wisconsin, I joined an outstanding culture and a talented team of professionals. Those colleagues and that culture led me to want to remain in the banking field. What is your favorite aspect of your role at your bank? The most rewarding aspect for me is helping businesses. I’ve always been intrigued and fascinated by different businesses — how they operate, how similar businesses do things differently but all reach success in their own way. It’s also meeting people and the variety. But nothing is better than somebody telling you that you came up with an idea that helped them improve their business. I also enjoy watching my colleagues advance in their careers and sharing news of our strong financial results with my fellow shareholders. I’m very proud to have played a key role in developing a successful bank — from raising the capital to open to forming a team that executes our business plan of being a locally owned, locally operated bank focused on providing the personal attention our customers deserve. What do you wish the general public understood about the banking industry? I wish the public had a better understanding of how banks operate within very narrow interest rate margins and about the costs to maintain the infrastructure needed to deliver high quality service and products. This lack of understanding leads a few clients to expect bank services to be delivered at little or no cost.

Where do you believe the industry’s greatest challenges are in the next three to five years? Our industry’s greatest challenges include changing technology, a sometimes-oppressive regulatory environment, and potential economic challenges. Technology will continue to evolve rapidly. Figuring out how to adopt new or changing technologies is a constant challenge. The cost to keep up with regulatory pressures has easily doubled, and possibly tripled or more, since we opened Spring Bank in 2008. Managing these increasing costs and requirements is a big challenge. Lastly, current levels of inflation, supply chain disruptions, and a shortage of workers have resulted in expectations of a recession after many years of economic growth. When the next recession arrives, banks will need to focus on credit quality and work to resolve problem loan situations that arise. Fortunately, the banking industry is better capitalized today than it was at the start of the last recession. Every day, bankers serve their local communities by helping their customers achieve their financial dreams. Please describe your current role at your bank and share with us one of your more rewarding experiences. With regard to community involvement, one of the most impactful days of my life was joining a group of over 100 World War II veterans on a trip to Washington D.C. to view the WWII Memorial as part of the Stars & Stripes Honor Flight program. Spring Bank has supported this effort for many years as part of our pride and appreciation for our nation’s veterans. Speaking with many heroes that day, watching them interact with their peers, and experiencing the welcome home celebration at the end of the day is a memory I will never forget. Oswald Poels is WBA president and CEO | ropoels@wisbank.com 608-441-1200 | Twitter: @RoseOswaldPoels

Do you know a banker who should be recognized as a Community Advocate for the work that they do? Nominate them today by emailing Rose at ropoels@wisbank.com!

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AUGUST 2022

Bankers Marketplace www.wisbank.com/classifieds H E L P WA N T E D Agricultural Loan Officer Citizens State Bank of Loyal is seeking an agricultural loan officer. This position is responsible for developing and maintaining a portfolio of agricultural loan accounts; makes loans to individuals, partnerships, and corporations engaged in agricultural production; analyzes loan applications; audits loan files; services existing loans; counsels customers in an effort to reduce delinquencies; and meets departmental goals for increasing loan volume. This individual will aggressively sell and promote all bank services in such a way as to enhance bank earnings and the bank’s image within the community. Please contact Jasmine Gross at jgross@csbloyal.com for the full job description. Credit Manager Capitol Bank is seeking a credit manager. This position is primarily responsible for managing the credit department and ensuring that the bank’s asset quality remains high, lenders are properly supported through the underwriting and approval process, and that policies and procedures are adhered to. The credit manager will also monitor the bank’s loan portfolio and assist with preparing for regulatory examinations and other external audits as well as prepare reports. Qualifying applicants will have a bachelor’s degree in finance, business, accounting, or economics preferred; 5–7 years relevant experience required; must have solid analytical skills; working knowledge of MS Word, Excel, and Outlook; must be detail-oriented with effective written and verbal communication skills; must be familiar with accounting principles; familiarity with banking laws, regulations, policies, and practices is essential; strong organizational and multi-tasking skills are a must; strong interpersonal skills and the ability to articulate in front of others; and possess a desire to learn and expand knowledge across the organization. Capitol Bank is an EEO/AA employer and offers a complete benefits package. Please submit a cover letter and resume with salary requirements to Mandy Ayers, human resources at mandy.ayers@capitolbank.com. Executive Vice President and Chief Lending Officer Citizens State Bank of Loyal is seeking an executive vice president and chief lending officer. This position is responsible for managing the loan department — including the development and communication of policies and procedures, and overall responsibility for the growth and quality of loan portfolio; functions associated with the credit risk management of the bank; as well as identifying and

Want to See More Ads? Visit www.wisbank.com/classifieds to view a full listing of job postings or for more information on placing or responding to an ad.

understanding developing trends and providing a thorough, independent assessment of a borrower’s capacity to withstand the risks posed by those trends through the preparation of written, in-depth analyses of business, management and industry factors. A primary component of this role will involve the exercise of independent judgement and discretion on matters pertaining to the identification and management of the credit risk and quality of the bank’s loan portfolio. The individual will serve as a member of the senior management team tasked with the responsibility of leading the bank in the absence of the CEO. Please contact Jasmine Gross for a full job description at jgross@ csbloyal.com. Loan Processor State Bank of Reeseville – Watertown is expanding their loan department and seeking a Loan Processor. This position assists all loan officers in obtaining and completing information necessary to process loans. This includes being responsible for procurement and processing consumer, commercial, agricultural, and real estate loan documents to ensure that compliance regulations are met and maintained so loans conform to established bank policies; setting up files, preparing documentation, accepting and recording payments, calculating interest and rebates; filing of documents and loan files; keeping loan records up to date; using tickler system to keep insurance, tax, financial statements, and UCC documents current; sending work/records to accounting or data processing; and answering questions for customers. Salaries are dependent on experience. Bonus eligible based on performance. Some weekends could be required. Experience preferred but will train the most qualified individual. Advancement Opportunities for the right candidate. Qualified applicants may contact Jayne Adams at jaynea@ statebankofreeseville.com to learn more about this position. Equal Opportunity Employer — Member FDIC. Residential Mortgage Loan Originator Bank of Lake Mills is a locally owned community bank seeking to add an experienced residential mortgage loan originator to the team in Watertown, Wisconsin.

This individual will present information to current and prospective customers as well as to business contacts such as builders and realtors in the Waukesha and Jefferson County areas to meet established goals. Candidates must possess excellent customer service and sales skills. Strong work ethic, attention to detail, good judgment, and the ability to work independently are also needed. Compensation is base salary plus commission. Member FDIC. Equal Housing Lender. EOE M/F/Disabled/Vet. Qualified candidates may send their resume to Shane Moen at shane@ bankoflakemills.com. Senior Lender Headwaters State Bank is a 100 year old community bank located in northern Wisconsin. We are looking for a selfmotivated, seasoned lender. The position is full time with growth opportunities. Key responsibilities include developing business through expansion, retention, and development strategies; ensuring compliance with bank lending policy and procedures and regulatory procedures; representing the bank in civic and community activities to promote the image of the bank in

the branch market areas; providing guidance and support as needed to junior lenders; implementing corporate culture through reinforcement of quality service and teamwork; maintaining positive working relationships with customers, bank staff, local professionals, and community organizations; managing loan portfolio including renewals, modifications, updated credit analysis, collections, and portfolio monitoring. Skills required include ten years’ experience in a financial institution in a direct lending function, the ability to work independently and as a team with excellent time management skills, proficiency in use of personal computer and related word processing and spreadsheet software, comprehensive knowledge of banking rules and regulations, leadership and coaching skills, strong written and verbal communication skills, strong analytical and mathematical capabilities, as well as the understanding of credit underwriting and loan documentation. All interested applicants should submit a current resume and a dated letter explaining their qualifications to Sally Folgert, president and CFO, at sfolgert@headwatersstatebank.com.

W ISC ONSIN WBA Mission Statement

BA NK ER

We promote a healthy environment for banks in Wisconsin through actively advocating, educating, and supporting our members. Association Officers:

Daniel J. Peterson (Chair), President/CEO, The Stephenson National Bank & Trust, Marinette Donna J. Hoppenjan (Chair-Elect), President/CEO, Mound City Bank, Platteville Alvaro Araque (Vice Chair), Senior Vice President, Director of Consumer and Private Banking, Johnson Financial Group, Racine Kenneth D. Thompson (Past Chair), President/CEO, Capitol Bank, Madison Rose Oswald Poels, President/CEO, Wisconsin Bankers Association, Madison Association Board of Directors: James R. Chatterton, President National Exchange Bank & Trust, Fond du Lac Paul A. Hoffmann, President/CEO Monona Bank Ryan T. Kamphuis, President/CEO Bristol Morgan Bank, Oakfield Greg Lundberg, President/CEO Fortifi Bank, Berlin Jay C. Mack, President/CEO Town Bank, N.A., Hartland Thomas Mews, President First National Community Bank, New Richmond

Paul J. Northway, President/CEO American National Bank Fox Cities, Appleton Greg A. Ogren, President/CEO Security Bank Shares, Inc., Iron River Joe Peikert, President/CEO Wolf River Community Bank, Hortonville Jennifer L. Provancher, President/CEO The Equitable Bank, S.S.B., Wauwatosa Daniel J. Ravenscroft, President/CEO Royal Bank, Elroy Teresa (Terry) Rosengarten, President/Chief Operating Officer Unity Bank, Augusta

Wisconsin Banker is published by Wisconsin Bankers Association, 4721 South Biltmore Lane, Madison, WI 53718; Telephone: 608-441-1200; Fax: 608-661-9381; www.wisbank.com. Cassandra Krause, Editor 608-441-1216 ckrause@wisbank.com

Advertising: sales@wisbank.com

To report a change of address, email us at requests@wisbank.com. The publication of advertisements does not necessarily represent endorsement of those products or services by the Wisconsin Bankers Association. The editor reserves the right to reject any advertising or editorial copy deemed unsuitable for publication for any reason. Copy deadline is eight business days before publication date. Disclaimer: With the exception of official announcements, the Wisconsin Bankers Association disclaims all responsibility for opinions expressed and statements made in printed articles and advertisements in the Wisconsin Banker. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal or accounting advice or expert assistance is required, the services of a qualified professional should be sought.

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AUGUST 2022

SBA LENDING MADE EASY. Are you looking for ways to better support your small business customers or generate new customers? Adding SBA lending to your portfolio allows you to provide financing to creditworthy small businesses. Partnering with Bankers’ Bank makes offering SBA 7(a) loans easy, our experts help with eligibility review, loan packaging and secondary market sale. We know not every bank is the same, we tailor our program to fit your needs so you can do SBA Your Way.

SBA GUARANTEE

BORROWER ELIGIBILITY

Mitigate your credit risk with up to a 90% guarantee on SBA 7(a) loans.

Most for-profit businesses are eligible for SBA 7(a) financing.

SECONDARY MARKET Sell the guaranteed portion of the loan on the secondary market for immediate fee income and liquidity.

LENDING EXPANSION Increase your capability to attract, brand and cultivate profitable commercial banking services with an SBA 7(a) program.

Visit BankersBank.com to learn how our SBA program helps you stay competitive in your market.

608.829.5737 | SBABB@BankersBank.com | BankersBank.com

EXTEND LEGAL LENDING LIMIT The guaranteed portion of SBA loan does not count against your bank’s legal lending limit.

FLEXIBLE DEBT PURPOSE Use SBA 7(a) loans to finance nearly any business purpose.