bancserve press montana bankers merry … · first madison valley bank ennis, mt ... northcentral:...

BANCSERVE PRESSMONTANA BANKERS

ASSOCIATION OFFICERS

Chairman: Bruce Glennie, Eastern Montana Business Banking Manager Wells Fargo, N.A. Billings, MT

President/CEO:Steve Turkiewicz, CAEHelena, MT

Vice Chairman:Sam Waters, President/CEO First Community Bank Glasgow, MT

Secretary/Treasurer:Rex Phipps, CEOGarfield County BankJordan, MT

Immediate Past Chairman:Kevin P. Clark, VP First Interstate Bank Great Falls, MT

BOARD OF DIRECTORSWestern:

Tom Swenson, President/CEOBank of Montana Missoula, MT

Southwestern:

Tim Combs, PresidentFirst Madison Valley BankEnnis, MT

Robert DeWit, PresidentManhattan State BankManhattan, MT

Northcentral:

Ron Young, Branch PresidentFirst Security BankFort Benton, MT

Bruce Hoyer, President/CEOBelt Valley BankBelt, MT

Southcentral:

Jay Harris, PresidentYellowstone BankLaurel, MT

Josh Webber, PresidentFarmers State Bank of Denton Denton, MT

Andy Rio, President/CEOLittle Horn State BankBillings, MT

Visit us on the web at www.montanabankers.com Or call: 800/541-5126

December 20, 2015

Inside this Issue

MBA’s EDP Graduation cont. Pg. 2-3

Reg Relief? A Bit, But Much More Needed Pg. 4-5

ABA National Conference for Community Bankers Pg. 6

Compliance Alliance - Question of the Month Pg.6

2015 MBA Conferences and Workshops Pg. 7

2016 Annual Conference Pg. 7

MBA Web Seminar Education Program Pg. 7

MBA Spotlights an Endorsed Product Pg. 8

Upcoming Events Pg. 8

Banks and Personnel Pg.9Continue on page 2.

Merry Christmas and Happy Holidays from

the Staff at MBA

We made it through our inaugural year of the Montana Bankers Association Executive Development Program. We had bankers from all across the state – Wolf Point, Dillon, Kalispell to Lewistown, meet in locations throughout the state – Missoula, Billings, Great Falls and Glendive! The group of twelve was taught by excellent instructors who did not score less than 4.5 on a scale of 5 in terms of knowledge and teaching ability.

Graduates were Blayne Bennett, Freedom Bank, Missoula; Penny Boka, Pioneer Federal Savings & Loan Association, Deer Lodge; Ryan Clevidence, Farmers State Bank, Victor; Bob Fenno, Manhattan Bank, Manhattan; Mark Fenno, Manhattan Bank, Manhattan; Bryan Gatz, Bank of the Rockies, N.A., Helena; Tony Harrah, Glacier Bank, Kalispell; Aaron Kurokawa, Western Bank of Wolf Point, Wolf Point; Mary Strozzi, Glacier Bank, Ronan; Mike Thilmony, First Security Bank of Missoula, Thompson Falls; Mathew Torske, Little Horn State

Celebrating MBA’s FirstExcecutive Development Graduation

December 20, 2015 BANCSERVE PRESS

Or call: 800/541-5126Visit us on the web at www.montanabankers.com

BOARD OF DIRECTORSNortheastern:

Rich Kingsley, President/CEOValley BankGlasgow, MT

Bob Galt, President/CEOFirst State Bank of MaltaMalta, MT

Southeastern:

Rex Phipps, CEOGarfield County BankJordan, MT

Large Banks:

Scott Burke, President/CEOFirst Security BankMissoula, MT

Bruce Glennie, Eastern MT Business Banking ManagerWells Fargo, N.A. Billings, MT

Butch Bratsky, Sr. Banking Exec., Stockman Bank of Montana Miles City, MT

Bill Lucas, Area Market PresidentU.S. BankBillings, MT

Bill Toner, EP/Cash Mgmt. OfficerFirst Interstate BancSystem, Inc.Billings, MT

BANCSERVE BOARDChairman:Bruce Glennie, Eastern Montana Business Banking Manager Wells Fargo, N.A. Billings, MT

President/CEO:Steve Turkiewicz, CAEHelena, MT

Secretary/Treasurer:Amy Jenks, CIC, CISRVice President of OperationsHelena, MT

Director:Steve Wheeler, EVP, COOFirst Security BankBozeman, MT

Director:Mike Grove, PresidentBank of the Rockies, N.A.White Sulphur Springs, MT

Director:Darrell Grogan, PresidentFirst State Bank of ForsythForsyth, MT

Continued from page 1.

Continue on page 3.

Bank, Hardin and Ty Wells, Montana Livestock Ag Credit, Inc., Helena.

We asked the participants a few questions about the program and its value for them:

Where do you feel you were professionally when you started the Executive Development Program?

I went in knowing a lot about one department and very little about banking as a whole. The compliance department/loan department is what I knew and very little of the finance and deposit side.

I felt (and still feel) that I was on my way to a Senior VP level position in my institution. I believe the time frame for that to happen is 3-5 years. At this point in my career, I’ve gained significant knowledge and experience, but I feel I need to get more to reach the next level.

What did you feel about the Executive Development Program when it began in January?

I wasn’t quite sure what to expect. Probably a little overwhelmed at first.

I was excited to get going!

What did you feel about your skill level and knowledge of banking at the start of the program?

Compliance and loan side I felt I knew quite a lot. Everything else was limited.

I’ve held many positions within the lending side of banking and have always continued to move upward. I have a very specific skillset as it pertains to my position (retail lending), but I’ve always tried to gain knowledge/experience in other areas of the bank in order to stand out as a “big picture” person. That was the main thing that excited me about this program because I knew I would learn about facets of the business that I would not experience on the job. This program is analogous to the General Studies courses you had to take in college that make you a better-rounded scholar. Out of the 12 sessions, one or two few will be pertinent to your current position so they’re similar to

college courses within your major.

What changes have you seen in your personal skill level and banking knowledge as a result of the program?

New ideas would probably be the main one. In banking it seems everyone is one department focused so much that it is nice to have someone who may not be an expert in every department but knows enough to ask the right questions.

Since beginning the program, I’ve become more conscious of looking at what I do as part of the overall business of running this bank rather than just getting my job done.

Guest Speaker - Rich Bruner, SVP, First

Interstate Bank, Helena

BANCSERVE PRESS

ABA DELEGATES

Governement Relations Council: Don Bennett, President/CEO Freedom BankColumbia Falls, MT

Community Bankers Council: Bruce Gerlach, CEO First Security Bank

Bozeman, MT

Conference of State Associations:Bruce Glennie, Eastern Montana Business Banking Manager Wells Fargo, N.A. Billings, MT

Grassroots Administrative Committee:Wayne Hirsch, Division ManagerUS BankBillings, MT

Taxation Admin. CommitteeMarcy D. Mutch, Corp. Tax Mng.First Interstate BancSystem, Inc.Billings, MT

STATE BANKERS ASSOCIATION GROUP

BENEFITS TRUST BOARD OF TRUSTEES

(Serving MT & WY)Chair: Jay Hammond, PresidentLusk State Bank Lusk, WY

Bart Langemeier, PresidentFirst Bank of BridgerBridger, MT

John RonnebergCitizens Bank and Trust Co.Big Timber, MT

Kim Brooks, Controller/HR Off.First Community Bank Glasgow, MT

Cynthia Cheney, VP of HRFirst Security Bank Bozeman, MT

Brad Franklin, PresidentYellowstone Bank Sidney, MT

Richard Myers, CFO/CCOFirst Northern Bank of WyomingBuffalo, WY

Jim Durfee, President/CEOSundance State BankSundance, WY

Gordon P. Johnson, PresidentAmerican BankBozeman, MT

December 20, 2015


STATE BANKERS ASSOCIATION GROUP BENEFITS TRUST

Continued from page 2.While I’ve always tried to keep that in mind, I would say it’s been heightened by the EDP program. I’ve gathered greater depth in topics like credit risk management that pertain to my day-to-day duties as well.

Knowledge base has definitely been expanded, and in unanticipated areas. I especially enjoyed the scorecard session and have found ways to utilize this concept. The session on loans was missed due to the conversion; this was in my weakest area so very disappointing.

What has your participation in the Executive Development Program meant to you as an employee of your institution?

My eyes have been opened a bit to how other banks are run. It has been interesting to see what is presented and then determining if that will work in our bank. I like that I am gaining a different perspective on banking from outside parties.

The knowledge I’ve gained has allowed me to be a more productive member in higher-level meetings and committees. What’s valuable about the program is it exposes you to what your boss and even his/her boss are working on without having to wait until you attain one of those positions. This has been a valuable experience in broadening my banking knowledge and transforming me into a better employee for the bank.

So now we embark on our second year of the Executive Development Program. We currently have 10 registrants from Flathead Bank, Western Security, Glacier Bank and First Security Bank of Missoula. The program’s design purposely maintains a small class size to facilitate productive group interaction and provide individual access to our “best-in-class” instructors. You have identified that "next-generation" leader in your bank that you want to prepare for the future, now is the time to enroll them in MBA’s Executive Development Program.

Technically, registration for the program ends December 31, 2015 but please contact Pam O’Reilly at [email protected] or 406-441-4703. She will work with you as we continually strive to serve you, the member.

BANCSERVE/HEALTHSERVE STAFF

Government Relations: Steve Turkiewicz, CAE President/CEO

Operations:Amy Jenks, CIC, CISRVice President of Operations

Education & Member Services:Pam O’Reilly Association Services Director

HealthServe:

Jill Martin, CISRInsurance Service Rep.

Deannie Higgins, CISRInsurance Service Rep.

Hannah Parrish, CISRInsurance Service Rep.

Amy MillerAdministrative Assistant

BANCSERVE Insurance Agency:Tempi Ruth, CIC, CAE, CISRSales Director

Bookkeeping:Karmen MillhouseAccounting Technician

MBA Information:Elizabeth ZimmermanAdministrative Assistant

MBA/BANCSERVE, Inc.1 N. Last Chance Gulch, Ste.4Helena, MT 59601Telephone:800/541-5126406/443-4121Fax: 406/443-7850

HealthServe1 N. Last Chance Gulch, Ste.4Helena, MT 59601Telephone:877/443-0520406/443-0520Fax: 406/495-2674www.healthserve.info

BANCSERVE PRESSDecember 20, 2015


Reg Relief? A Bit, But Much More is Needed!

It has been a whirlwind year with our industry’s determination to get meaningful regulatory relief passed. The Dodd Frank Act is now five years old. Since its passage, regulators, members of Congress and bankers having been talking and writing about the need to address the Act’s onerous provisions that are being place on the nation’s hometown banks. We knew it would be a difficult task, but we were optimistic 2015 would be the year of reg relief.

Progress was being throughout the year, The U.S. House passed a number of meaningful commonsense reg relief bills. Last spring, the US Senate Banking Committee, led by Committee Chairman Richard Shelby, passed a sweeping reg relief bill and much of the same language was inserted by the bill’s sponsor into one of the Senate’s spending bills. But, as fall approached, the Congress faced many highly visible national issues, government and highway funding, Planned Parenthood and environmental regulations, and global issues, think ISIS, Syrian refugees and the Paris attacks, that consumed much of their attention, time and energy.

The multiyear Highway Funding Bill was an example of conflicting Congressional priorities. Historically, the Highway Bill is strongly supported by the business community, including bankers, because of the many projects that benefit communities and the nation’s transportation infrastructure. But, in a surprising twist of events and an out-of-the blue proposal, the Senate included a new Highway revenue source, diverting the Fed Reserve members’ stock dividend to the Highway fund. This was an unprecedented misappropriation of revenue from a totally unrelated source to the highway programs. A lot of political capital was spent during the summer to cut or change the money grab. When push came to shove and the bill needed to pass or highway projects would screech to a halt, the Congress “compromised” on Highway funding to include billions of dollars from banks, $10 billion or larger, to pay for the nation's streets, roads, highway and bridges.

Ironically, the Highway Bill included the only significant financial reg relief language passed by the Congress and signed by the President. The reg relief provisions signed into law were:

• Expand the number of banks eligible for the 18-month exam cycle.

• Equalize the SEC registration and de-registration thresholds for savings and loan holding companies.

Continue on page 5.

BANCSERVE PRESS


December 20, 2015

Continued from page 2.• Reduce the burden of unnecessary privacy notice paperwork.

• Expand TruPS CDO relief for smaller bank holding companies.

• Establish a process for designating an area rural for purposes of Consumer Financial Protection Bureau exemptions.

These and other provisions were key parts of ABA’s Agenda for America’s Hometown Banks. Many were also included in Sen. Shelby’s broader reg relief bill, which was the primary target of the Pass Reg Relief Now campaign.

“These provisions were enacted thanks to tireless advocacy by ABA and state association member bankers,” said ABA EVP James Ballentine. “Together they were a helpful first step, but much more needed to be done to correct a regulatory imbalance that treats small, midsize and regional banks like global institutions. We continued to urge Congress and the Senate in particular, to do more to help America’s hometown banks do their jobs.”

After the Highway Bill passed, the reg relief negotiations continued in the Senate focusing on the spending bill. The industry, led by ABA with the support of the state bankers associations and thousands of bankers pulled out all the stops with the Pass Reg Relief Now campaign. The campaign featured extensive and novel advertising, grassroots tools like post cards, emails, tweets and petitions. MBA bankers joined many of their colleagues in Washington making visits to the Hill to press for Reg Relief Now. All of that wasn’t enough. Like other industries’ initiatives, commonsense reg relief for community banks was left at the proverbial “altar,” when the final version of the spending bill passed.

It was extremely disappointing that more of the needed reg reform didn’t make it “over the goal line.” Going into the fall we knew that getting relief provisions through Congress – given the highly charged political environment – would be challenging, but we had no choice but to pursue it.

Some reg relief provisions are now in place. We applaud our Montana delegation, especially Senator Tester and his staff, for their tireless and patient work with their colleagues to fashion compromise regulatory relief language. There was bipartisan consensus on Capitol Hill that regulatory relief was needed but the political will was lacking. But most concerning is that while Congress debated how to correct the regulatory imbalance, thousands of added pages of complex rules were to the books. Attaching common-sense financial reforms to the spending bill was not only a sound tactic—it was a policy imperative on the merits.

We will be analyzing and evaluating the Reg Relief Now campaign and what worked and what didn’t. We will be re-engineering our approach to political engagement for 2016 and beyond. Congress will be returning in January 2016 to continue with its work. With the 2016 election season picking up momentum, most observers see the first quarter might be the only time for potential Congressional action. MBA will be collaborating with other industry groups to identify opportunities and methods to press for more need reg reform. You will be hearing about future initiatives in the weeks to come. For now, thank you again for all of your time and energy in the 2015 campaign to pass regulatory relief. Enjoy the Holiday Season and all that it brings to you and your families.



Question: If a borrower applies for a loan secured by property in a flood zone in Dec. 2015, but doesn’t close the loan until 2016, do the new flood escrow rules apply? If so, do we have to send the escrow notice?

Answer: Yes, you are required to escrow for any loan that is “made, increased, extended, or renewed on or after January 1, 2016.” You look at the consummation date, not the application date.

The notice requirement is a bit more nuanced. The regulation changes as of January 1st to provide:

(b) Notice. For any loan for which an FDIC-supervised institution is required to escrow under paragraph (a) or paragraph (c)(2) of this section or may be required to escrow under paragraph (a)(3) of this section during the term of the loan, the FDIC-supervised institution, or a servicer acting on its behalf, shall mail or deliver a written notice with the notice provided under §339.9 informing the borrower that the FDIC-supervised institution is required to escrow all premiums and fees for required flood insurance, using language that is substantially similar to model clauses on the escrow requirement in appendix A. 12 CFR 339.5 (effective Jan. 1, 2016).

Note that the statute does not have a timing requirement. Also note that this isn’t effective or required until January. For applications received in December, a good practice would be to wait until January to send the notice. For example, if you receive an application on Dec 20th, but the loan doesn’t close by Dec. 31st, send the new notice required by Appendix A of 12 CFR 339 before you consummate in January.

For More Information on MBA’s Compliance Alliance Program, contact Pam O’Reilly at [email protected]

Compliance Alliance Question of the Month

BREAKINGBOUNDARIESFebruary 14–17, 2016JW Marriott Desert Springs Resort and SpaPalm Desert, California

NCCB 16ABA National Conferencefor Community Bankers

To serve today’s customers and communities, banks must reach further than ever before.

Join ABA and bankers from across America as we explore what it takes to grow beyond our boundaries and into the new definition of community.

Register at aba.com/NCCB



MBA Education Program Web Seminars The Montana Bankers Association is providing live web seminars targeted to a more advanced audience, in addition to new programs for previous participants. If you are looking to supplement your current education plan or trying to save on expenses, what better way to obtain both high quality education and save money?

MBA continues to support Montana bankers in dealing with an ever challenging business environment by providing a multitude of educational opportunities. Whether it be expanded live seminars and conferences, to our two webinar providers, Omnovia and Total Training Solutions, we look to provide a wide variety of

options and pricing to meet the needs of all bankers (large and small) for education and training.So please, take some time and look at the offerings and if you are looking for something in particular and don’t

see it – give us a call and we’ll see what we can do. Again, we value our members and are here to serve. For more details on each webinar please go to our website and view either our Calendar or Education page at www.montanabankers.com to see what we have to offer! Contact Pam O’Reilly, Association Services

Director, at 800/541-5126 or [email protected]

2016 MBA Conferences and Workshops

q Basic Personal & Business Tax Return Analysis - Feb. 4 (Billings) & Feb. 5 (Missoula)q Cash Flow with Jeffery Johnson - Bozeman, February 18-19q IRA Basics & Update – Hilton Garden Inn, Billings, March 2-3 q BSA/AML for Tellers - March 7-10 in 4 Locations! (Sidney, Bozeman, Missoula, Helena)q 2016 MBA Ag Bankers Conference – Best Western Plus Gran Tree, Bozeman, March 23-24q 7 Habits of an Effective Loan Write-Up – Best Western Plus Gran Tree, Bozeman, April 13-15q Negotiation Skill Building to Improve the Banks’ Business Development Efforts – Best Western Plus Gran Tree, Bozeman, April 21q How to Craft an Effective Loan Write-Up – Best Western Plus Gran Tree, Bozeman, April 22Watch for our next set of Conferences and Workshops coming up in Spring 2016 at www.montanabankers.com or more for information contact Pam O’Reilly, Association Services Director, at 800/541-5126 or [email protected].

Mark Your Calendars for the 2016 Montana & Wyoming

Bankers Summit!!!

June 19-21, 2016

Big Sky Resort, Big Sky, MT


Upcoming Events


National Conference for Community BankersFebruary 14-17, 2016

Palm Desert, CA

ABA Emerging Leaders ForumMarch 14, 2016

Washington Marriott Marquis, Washington D.C.

ABA 2016 Government RelationsMarch 14-16, 2016

Washington Marriott Marquis, Washington D.C.

ABA 2016 Regulatory Compliance ConferenceJune 12-15, 2016

Manchester Grand Hyatt Hotel, San Diego, CA

2016 Executive Development ProgramJanuary 2016

Basic Personal & Business Tax Return AnalysisFeb. 4 & 5

Billings and Missoula

Cash Flow with Jeffery JohnsonFeb. 18-19Bozeman

IRA Basics & UpdateMarch 2-3

Hilton Garden Inn, Billings

BSA/AML for TellersMarch 7-10

4 Locations - Sidney, Bozeman, Missoula, Helena

2016 Ag Bankers ConferenceMarch 23-24

Best Western GranTree, Bozeman

Upcoming Events

Montana Bankers Association Spotlights an

Endorsed Product

KNOWLEDGE. CLARITY. RELIABILITY.www.compliancealliance.com

(888) 353-3933

Compliance is no longer just for Compliance Officers.We have a solution designed to benefit every department and your bottom line.

OWNED BY STATE BANKERS ASSOCIATIONS

“Our bank would have to add at least one full time employee to our compliance staff if we were not utilizing Compliance Alliance.”

For more information contact: Sam Desmond, Membership Development at [email protected] or call 888-353-3933.


Or call: 800/541-5126

Banks and PersonnelBig Sandy• Demra Brown, from Wells Fargo, presented a $1,000 to

the Big Sandy Volunteer Fire and Ambulance Department. This check will be used for EMT class that will be held after the first of the year.

Billings• The Billings Heights Business Optimist Club inducted

their new officers for 2015-16. Mike Rowcliffe of Western Security Bank was named President and Hope Headlee of Western Security Bank was named Secretary/Treasurer.

Chinook• Jessica Aber, Loan Officer with First Bank of Montana

organized a group of local volunteers to explore ways to fill the need for warm clothing for those in need. Adaopt-a-Coat was created to gather new coats and winter wear for children and adults.

Conrad• Since 2011, Stockman Bank has participated in a tri-

annual internal fundraiser. Employees were encouraged to donate $2 for every time they wore jeans on Friday. The money is pooled and then donated every spring, fall and winter. For this spring and fall, Stockman Bank has donated to Caring for Kids and to CASA for a grand total of $1,145.

Glendive• In a show of appreciation for the 35 years of service

from Keith Robinson who retired from his position at Stockmen Bank as Branch President, the bank donated $10,000 to the Dawson County Education Foundation. This was the foundation of Keith’s choice and now the foundation will be able to award scholarships to qualifying students for the next 10 years.

• Stockman Bank is pleased to announce the promotion of Sally Meredith from Assistant Branch Manager to Branch President following the retirement of Keith Robinson. Sally brings over 30 years of banking experience to the position. She has been with Stockman Bank since 2013.

Hamilton• Owen Robbins joined First Interstate Bank as the new

Branch President after over 15 years with Farmers State Bank as Vice President and Commercial Loan Officer.

Hardin• For the seventh year, First Interstate Bank participated

in a coat drive called One Warm Coat. This year’s drive allowed the branch to collect 203 gently used, cleaned coats. Children’s coats were donated to Child and Family Services, teen appropriate coats were given to the emergency room at Hardin High School and the remaining items were donated to the Set Free Street Shelter. Employees wore sports jerseys on Fridays during the drive

for a $5 donation with the funds used to purchase new children coats to add to the total.

• First Interstate Bank welcomes two new employees to the teller line. Brian Wolf, who has a significant accounting and management background, and Violet Hankel, who has worked in accounting and customer service.

• First Interstate Bank is pleased to announce the promotion of Sandra Struck to Personal Banker/Consumer Lender. Previously, Sandra was the Loan Processing Clerk and also served as Teller Supervisor.

Kalispell• First Interstate Bank received special thanks from the

Alzheimer Association for participating as its Gold Level sponsor during the annual Walk to End Alzheimer. The community of Kalispell raised over $14,000.

• For the fifth year in a row, Glacier Bancorp, Inc., is the Number 1 community bank in Montana for U.S. Small Business Administration (SBA) lending. Wells Fargo, the nation’s top SBA lender, tied Glacier Bancorp, Inc. in the number of SBA loans in the state with 46.

Red Lodge• The Boys and Girls Club hosted an Appreciation Dinner

for members of the community who are instrumental to the Club’s success. First Interstate Bank is the Club’s Partner of the Year and was represented by Lyle Zimmerman and Shann Scott.

Sidney• Stockman Bank is pleased to announce the promotion

of Melanie Wadley to Construction Lender. Melanie brings three years of experience to the position. She will be originating real estate construction loans and assisting clients with their lending needs.

Townsend• The State Bank of Townsend congratulates John

Rauser on his promotion to Vice President. John specializes in agricultural lending.

White Sulphur Springs• Ponderosa Advisors, LLC announced that Bank of the

Rockies, N.A. was the first lending institution to fully utilize a new partnership designed to help Montana banks access crucial water rights and land information through its online water rights mapping program, Water Sage.

Visit us on the web at www.montanabankers.com

The Montana Bankers Association commends all of our bankers and associate members for their achievements. If your bank has a promotion,

retiree, special event, fundraiser or any newsworthy item, please let us know. You may contact Elizabeth at 800/541-5126 or e-mail mba@

montanabankers.com.

bancserve press montana bankers merry … · first madison valley bank ennis, mt ... northcentral:...

Documents