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NEBRASKA
INDEPENDENT BANKER
WINTER 2014
Official publication of the Nebraska Independent Community Bankers
NICB BOARD OF DIRECTORS
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2014 Officers & Directors
Chairman – Jon SchmadererThe Tri-County Bank, Stuart 402-924-3861
Chairman-Elect – Korey SchowBank of Keystone 308-726-2171
Vice Chairman – Chris TwilbellBrunswick State Bank 402-842-2435
President/CEO – Kurt T. YostNICB, Lincoln 402-474-4662
Secretary – Mark HesserPinnacle Bank, Omaha 402-697-5991
Treasurer –Arnold LowellCerescoBank, Ceresco 402-665-3431
Immed. Past Chairman – Scott Selko*Bank of Mead 402-624-2255
Bill AndersonFirst State Bank, Hordville 402-757-3231
Mark BarattaFirst National Bank, Omaha 402-602-3512
Brad ClarkFirst Nebraska Bank, Weeping Water 402-267-6355
Don Eberly*Stanton State Bank 402-439-2164
Kirk EnevoldsenThe Potter State Bank 308-879-4451
Nadine HagedornCitizens State Bank, West Point 402-372-1998
Greg Hohl*Wahoo State Bank 402-443-3207
Chad JohnstonFarmers State Bank, Maywood 308-362-4226
Patrick KennerThayer County Bank, Hebron 402-768-6027
Lance MarshallElkhorn Valley Bank, Norfolk 402-371-0722
Cameron MathisThe Tilden Bank, Creighton 402-358-3726
John Nelsen*FirsTier Bank, Holdrege 308-995-9595
David Norton*First State Bank Nebraska, Filley 402-662-3555
David OchsnerCommercial Bank, Nelson 402-225-3381
Paul StanosheckState Bank of Odell 402-766-3720
David SteffensmeierFirst Community Bank, Beemer 402-528-3223
Allen ThorbergPetersburg State Bank 402-386-5297
Joel WiensFirsTier Bank, Kimball 308-673-5251
*denotes Past Chairman
Nebraska Independent Banker Magazine WINTER 2014
3 Chairman’s Message
Jon Schmaderer, NICB ChairmanPresident/CFO, The Tri-County Bank, Stuart
5 Letter to the Editor
Sid Dinsdale, Chairman, Pinnacle BankCandidate for U.S. Senate
6 ICBA “Fine Points”
Cam Fine, President/CEO
7 Editorial Feature
Jeff Buettner, Public Relations CoordinatorCentral Nebraska Public Power District
10 Snapshots
2013 Management Conference & Trade Show
12 Insurance
Joe Reynolds, ID Theft Product ManagerTravelers
Featured on the cover – NICB Board of DirectorsFront row, left-right: Dave Norton (Filley), Chad Johnston (Maywood), Mark Baratta(Omaha), Joel Wiens (Kimball), Jon Schmaderer (Stuart), Greg Hohl (Wahoo),Second row, left-right: Arnold Lowell (Ceresco), Nadine Hagedorn (West Point), Cameron Mathis (Creighton)Third row, left-right: Bill Anderson (Hordville), Allen Thorberg (Petersburg), Pat Kenner (Hebron), Don Eberly (Stanton), David Ochsner (Nelson)Back row, left-right: Scott Selko (Mead), Mark Hesser(Omaha), Lance Marshall (Norfolk), Chris Twibell(Brunswick), Kurt Yost (Lincoln)
not pictured: Brad Clark (Weeping Water), Kirk Enevoldsen(Potter), John Nelsen (Holdrege), Paul Stanosheck (Odell),Korey Schow (Keystone), David Steffensmeier (Beemer)
Nebraska IndependentCommunity Bankers1320 Lincoln Mall, Suite 100PO Box 83073Lincoln, NE 68501-3073phone 402.474.4662www.nicbonline.comemail: [email protected]
Editor/PublisherKurt T. Yost
Address changes send to:[email protected] postal box listed Advertising Requests/Articles to:tracy@nicbonline
Nebraska Independent Banker Magazine Page 1
2 Calendar
14 Educational Training
17 Associate Member
Resource Guide
Page 2 Nebraska Independent Banker Magazine
UPCOMING EVENTS
Stay in Touch with NICB
Have you been getting the Capitol Comments? Newsletter with our
Legislative Updates? Meeting and Event Notices or Education Notices?
Email is the quickest, most economical way for the association to communicate with
members! Check to make sure we are one of your ACCEPTED Contacts. NICB uses
Constant Contact to send out most of our correspondence.
Emails come from: [email protected] and [email protected]
You will find it most helpful to “whitelist” the sender, or add the sender to your email contacts as an “approved” or
preferred sender. Check your SPAM filter.
If you are a G-mail user, you’ll want to drag one of the messages from your “Promotions” tab to your “inbox” so
you’re sure to receive our message next time!
Want to start receiving correspondence by email: send us an email and we will add you to the growing list of
members already receiving information by electronic mail.
March 2-6, 2014ICBA Convention Honolulu, HawaiiHilton Hawaiian Village
www.icba.org/convention
March 7-9, 2014NICB Post-Gathering
Kauai
Sheraton Kauai Resort
AprilCommunity Banking Month
June 9, 2014Area MeetingFriend Country Club
July 15, 2014ICBA/NICB Community Banker DayIron Horse Golf Club
Ashland, Nebraska
tbaArea Meeting
Stanton, Nebraska
November 20-21, 2014Annual Management Conference
& Trade ShowMarriott Courtyard808 R Street, Lincoln, NE
Hotel reservations 402-904-4800/1-800-699-3214
Room block expires Oct 22 or when block is full. Room rate
is $199 single/double.
This is before the Minnesota vs Nebraska game in Lincoln.
We encourage you to make your hotel reservations now.
Nebraska Independent Banker Magazine Page 3
CHAIRMAN’S MESSAGE
2014brings us to yet another critical
election year that impacts us on
a local, state, and national level.
As Chairman of the Nebraska Independent Community
Bankers, I encourage all members to play a leadership
role within your communities when it comes to helping
build political involvement.
This year’s State election appears to pose the most
direct challenge to what was recently re-affirmed to
identify Nebraska as “The Good Life.” Nebraska has
24 open legislative races, 17 by term limits alone. Our
state leadership will look much different beginning in
2015. It is critical for NICB members to expand our
relationships with those who will remain in office, and
play an active role developing and supporting new and
capable leadership. This is the only way we can turn
this “Challenge” into an “Opportunity.” We are pleased
to note that fellow bankers John Stinner (District 48),
and Matt Williams (District 36) are stepping up and
running for this leadership opportunity, seeking to join
NICB member Kate Sullivan (District 41) in the
legislature.
NICB has recently dedicated more leadership and
resources by developing the NICB-PAC. Seventeen
banks took the challenge at our November, 2013
convention in an effort to assist quality leaders’
campaign for their respective causes in this election
cycle and beyond. We need your financial resources in
the NICB-PAC to help make a difference. There are
many resources working against independent
community banking in our State today. The success of
NICB-PAC is critical to supporting our cause and the
communities we serve.
The Federal election also gives NICB membership an
incredible opportunity. NICB member Sid Dinsdale
enters the race for Nebraska’s open Senate seat, to
replace long-time friend of community banking, Mike
Johanns. NICB recently endorsed Sid’s campaign and
we ask community bankers across
the State to recognize the great
opportunity we have for outstanding
leadership in business, banking and
agriculture.
We ask that you remain committed
to your support of local elections that
have huge implications for your community and region.
Strong local politics are often taken for granted, but
once you have experienced a dysfunctional school,
town, or county board, you’ll understand its relevance.
Nothing can limit progress faster than poor leadership
at the local level. I urge you to personally participate in
this process, and bring other
good people with you.
The NICB looks forward to
continuing our leadership
role in 2014 as we support
the essence of independent
community banking and the
communities we serve. We
have a great responsibility
this election cycle to
participate in what makes
America the strongest nation
in the world. We invite you to join NICB in
strengthening this process, it truly does make a
difference!
Thank you for your support.
Jon Schmaderer, NICB Chairman
President/CFO
The Tri-County Bank, Stuart, NE
402.924.3861
Jon Schmaderer
NICB’s “Call to Action”
“Strong
local politics
are often taken
for
granted”
Press Release
Dinsdale Receives Community Bankers’ Endorsement
Elkhorn, NE, January 22, 2014: Sid Dinsdale has been endorsed in the U.S.
Senate race by the Nebraska Independent Community Bankers (NICB).
The trade group represents more than 90 member community banks with some
190 locations across Nebraska. Community banks are locally focused, channeling
loans to the families, businesses, and agriculture in the same neighborhoods and
markets where their depositors live and work.
NICB’s Chairman Jon Schmaderer, President/CEO of family-owned Tri-County
Bank based in Stuart, said the Dinsdale endorsement is a natural, not only because
Dinsdale is Chairman of Pinnacle Bancorp, Inc. which operates in the community
bank business model, but also his history in Nebraska.
Schmaderer said, “Sid and his family have long been actively involved in
community banking across Nebraska, as well as the agricultural industry. They are
successful business people on several fronts. Sid is well grounded and thoughtful. He
will serve main street, agriculture, and the citizens of Nebraska very well.”
Dinsdale said he accepted the endorsement with pride. “These are small
business people who have a payroll in the local community, and help their
communities create jobs and obtain capital for businesses to expand and farmers and
ranchers to do what they do best, feed us, so I’m proud to be associated with them.”
Dinsdale’s other endorsements include Nebraska football legend, Tom
Osborne, and former Governor Charley Thone.
Nebraska Independent Banker Magazine Page 5
GUEST EDITORIAL
An Open Letter to the NICB
IIam so deeply humbled and encouraged by your
support as I focus on the goal of winning the May
13 primary in Nebraska’s U.S. Senate race. The
banking profession, as represented by the NICB and the
ICBA, reflects what is best about America and the
principles we hold dear.
As one of your own and one of only two bankers in
the US Congress, I will fight for fiscal self-control
and limited government in Washington, D.C. I will
also fight against government overreach in every
facet of our lives and businesses. As community
bankers, we know all too well how government
regulations have impacted our businesses as well
as the businesses of those we serve.
I will put my 37 years of banking experience to work by
relentlessly seeking accountability and fiscal self-
control from the federal bureaucracy. I will campaign
hard against overspending and will work diligently to
pay down the debt. I will insist on entitlement reform
and tax policies that will spur job creation. You and I
both know that this country has a spending problem,
not a revenue problem.
From policies such as Obamacare and
Dodd-Frank, to agencies like the EPA,
OSHA, and NSA, I will push back
against the government overreaches
that are eroding our liberties and
interfering with our progress.
I have traveled far and wide across the state, sharing
my vision of limited spending and less government
overreach. I have met with many of you personally and
plan to be back in your community soon. The support
of my peers means the world to me. I hope you will
share my vision for our country with your friends,
neighbors and colleagues.
Using business principles I’ve practiced throughout my
career in community banking, I feel confident that I can
help push Washington, D.C., to be more of a servant
than a taskmaster. Less “them,” more “us”!
Thank you so very much.
Sincerely,
Sid Dinsdale
Candidate, U.S. Senate
Chairman and President, Pinnacle Bancorp, Inc
402-905-9412
Using business principals I’ve practiced
throughout my career in community banking, I
feel confident that I can help push
Washington, D.C., to be a servant than a
taskmaster.
Sid Dinsdale
I C B A “ F I N E P O I N T S ”
Dodging Stray Bullets
Grab your Kevlar vests, and keep your powder
dry. Washington, long notorious as the gun-
slinging Wild West of policymaking, has
become a more dangerously volatile place for
community banks.
Once again, ricochets from regulatory fire aimed at Wall
Street megabanks continue to endanger community
banks on Main Street. Recent rulemaking shootouts—
first over the Basel III capital guidelines, then the final
Volker Rule on megabank proprietary trading—illustrate
this chronic policymaking problem.
From their inceptions, Basel III and the Volker Rule
were never intended to affect community banks, let
alone ambush them in the night. All the focus on these
rules spotlighted megabank risks and practices (Basel
III, named after a Swiss city after all, was widely known
as the international capital standards). In both cases, the
bipartisan intentions of lawmakers have been clear. After
months of open debate and various draft proposals,
those policy objectives hadn’t changed for either rule—
until the last step in the rulemaking process. When the
final details of these rules surfaced, the once-benign
regulations became a menace overnight. (The final
Volker Rule, for goodness sake, arrived while everyone
was celebrating the Christmas holiday!)
If community banks hadn’t fired back so quickly and
forcefully in self defense, the repercussions from these
regulations would have been disastrous. Which,
ultimately, leaves everyone wondering: Why can’t the
regulatory agencies shoot straighter, without inflicting
serious collateral damage on community banks? Aren’t
megabanks a big enough target to hit?
What’s clear is that the current unpredictable, overly
complex policymaking process for community banks—
both on Capitol Hill and within the regulatory
agencies—needs to end. Yes, community banks dodged
these deadly Basel III and Volker Rule bullets. But these
kinds of high-stakes dramas should never happen in the
first place. Community banks,
ironically the world’s best risk
managers, simply cannot operate
properly under such unrelenting and
arbitrary risks. No business,
organization or human being could.
No doubt, finance and banking serve
an especially important economic purpose that requires
effective regulatory oversight. But that is not what’s
happening here. On public policies dealing with too-big-
to-fail, you and your community bank should simply be
left alone to do your important work on Main Street.
That’s common sense. But, unfortunately, old habits of
one-size-fits-all policy making die hard.
ICBA has made major regulatory relief and tiered
regulation for community banks its top priority, on
which we’re making real short- and long-term progress.
But, as ICBA has said for many years, the underlying
cause of today’s unwieldy, overly complex financial
regulation for community banks stems from too-big-to-
fail, too-big-to-regulate financial firms. Until excessive
financial concentration is truly and fully addressed,
America’s diversified financial system will remain
perpetually vulnerable to unpredictable policymaking.
So ICBA and community bankers will remain ready for
new skirmishes sure to erupt suddenly over bad and
destructive regulation. But, ultimately, we must remain
simultaneously focused on winning the broader war of
ending too-big-to-fail. That is the long-term fight we and
the American people can and must win. But, as you
know, it’s a fight that simply won’t happen without
community bankers and ICBA leading the way.
Let’s keep our eyes on the prize and our hearts in the
cause. We can do this. Stay with us.Cam Fine
President/CEO
Independent Community Bankers of America
@cam_fine
Page 6 Nebraska Independent Banker Magazine
Cam Fine
It is the water which will make this land rich,
It is irrigation which will turn our dry
lives around.
In the mouths of water are so
many silent green songs.
From “The Irrigator,” by Don Welch
The people of Nebraska have long known that
water was the key to successful farms and cities,
at least since settlers began to populate the state
in the 19th century.
Nebraska novelist/essayist Wright Morris wrote: “In
the dry places, men begin to dream. Where the rivers
run sand, there is something in man that begins to flow.
West of the 98th Meridian—where it sometimes rains
and sometimes doesn’t—towns, like weeds, spring up
when it rains, dry up when it stops.”
While Nebraska’s climate is generally categorized as
semi-arid, there is typically a significant variation in
rainfall across the state—average annual precipitation
varies as much between Plattsmouth (32 to 34 in./yr.)
and Scottsbluff (10 to 12 in./yr.) as it does between
Omaha and Boston. To offset this lack of reliable
precipitation in the western part of the
state, farmers began building
irrigation projects in the 1880s to
divert water from many rivers and
streams. Additional irrigation canals
were constructed through the 1930s,
including the “New Deal” projects in
the Loup River and central Platte
Valley. A few more projects were added in the
Republican River watershed in the 1940s and ’50s, and
the most recent project was completed in the Loup
River watershed in 1992. By that time, there were
approximately one million acres being served by
surface water projects, but none further west than
Nance County.
Groundwater irrigation can be traced to the early part of
the 20th century, but development didn’t begin to
expand until the late 1940s when there were
approximately 7,000 irrigation wells serving about
450,000 acres. The invention of the center pivot and
better pump technology in the 1950s led to an explosion
of groundwater development that continued at various
paces into the first decade of the 21st century. As of
2013, there were about 100,000 active irrigation wells
in the state providing water to more than 7.5 million
acres. The growth in groundwater development—as
well as reductions in the number of irrigated acres in
California and Texas—recently allowed Nebraska to
surpass those two states to become the state with the
most irrigated acres in the nation.
Nebraska owes much of this ranking to good fortune in
terms of geography, geology, and hydrology. While
early irrigation development relied primarily on flows
in the state’s many rivers and creeks, a vast, virtually
unknown and untapped source of water—the High
Plains Aquifer—lay beneath the feet of early irrigation
pioneers. The United States Geological Survey (USGS)
estimates that the aquifer, which stretches from Texas to
southern South Dakota, contains about 2.9 billion acre-
Nebraska Independent Banker Magazine Page 7
E D I TO R I A L F E AT U R E
Nebraska’s Vital Resource
Jeff Buettner
Page 8 Nebraska Independent Banker Magazine
feet of water; more than 65 percent of that water lies
within Nebraska’s borders.
However, while studies have shown that Nebraska has
depleted its portion of
groundwater in the
aquifer by only 1
percent (the same
USGS report indicates
that groundwater
storage in Kansas,
Texas, and New
Mexico have declined
by more than 20
percent since 1950),
the effects of groundwater withdrawals are clearly
evident in many parts of the state. Those effects have
manifested themselves in localized instances of
declining water tables, conflicts between neighboring
irrigation wells, or interference by irrigation wells with
domestic and municipal wells. Other studies (Scanlon
et. al., 2012) show that irrigation pumping has reduced
the base flow in the Platte and other rivers by as much
as 15 percent.
These studies raised
questions about the
sustainability of Nebraska’s
water resources, resources
on which the state’s
agricultural economy,
domestic and industrial
water supplies, recreational
opportunities, and fish and
wildlife habitat depend.
How does Nebraska – given
the disparate challenges and
variable conditions across
the state – address the issue
of ensuring that the entire state has enough water to
meet the demands of future generations?
Sen. Tom Carlson of Holdrege (Dist. 38), the chairman
of the Nebraska Legislature’s Natural Resources
Committee, has long recognized the importance of
water to Nebraska’s economy and way of life. He
introduced and successfully shepherded LB517 to
passage by the Nebraska Legislature in 2013. The bill
created the Water Funding Task Force, consisting of 16
members of the Natural Resources Commission and 11
members representing diverse water-related interests
appointed by the governor. Six state senators (Carlson,
Mark Christensen, Al Davis, Rick Kolowski, Ken
Schilz and Dan Watermeier) were also part of the Task
Force in an advisory capacity, as was Brian Dunnigan,
director of the Nebraska Department of Natural
Resources.
The goal of the Task Force was to develop water
funding legislation for the 2014 session that would
facilitate efforts to achieve sustainable water use and
management in Nebraska.
“Water is life to every citizen in Nebraska,” Carlson
said. “On average, a person can live 33 years without
medical care and 33 days without food, but only three
days without water. Too little water is, at times, a
challenge for portions of Nebraska, but at the same
time, too much water can pose problems in other parts
of the state. A sustainable water policy must be able to
address both circumstances, whenever and wherever
they occur, and is essential for the future well-being of
the state’s citizens.”
The Task Force’s efforts resulted in a series of
recommendations for the Legislature, including a
strategic plan that prioritizes programs, projects and
activities (PPAs) in need of funding; ranking criteria for
evaluating proposed PPAs; establishment of a
permanent structure and process through which PPAs
would gain funding; annual funding to achieve
objectives; and statutory changes necessary to
implement the recommendations.
The Task Force conducted meetings across the state
during the summer of 2013, gathering information
about water sustainability needs, learning about local
water-related issues, and taking input from the public.
After more than 20 meetings, the Task Force developed
a set of criteria for evaluating proposed PPAs and
identified a number of “high” and “medium” priority
objectives to meet when ranking PPAs.
“A sustainable waterpolicy must be able to
address bothcircumstances, wheneverand wherever they occur,and is essential for thefuture well-being of the
state’s citizens.”
Sen. Carlson in the legislativechamber at the State Capitol.
Nebraska Independent Banker Magazine Page 9
While space precludes listing all of these priorities, a
sampling of the criteria used to rank PPAs illustrates
the diverse and critical nature of the Task Force’s goals.
The criteria include determination of the extent to
which the PPA contributes to the goals of water
sustainability for the State of Nebraska by protecting
the ability of future generations to meet their needs,
including the following:
• Remediating or mitigating threats to drinking
water;
• Meeting the goals and objectives of an
approved Integrated Management Plan or
Groundwater Management Plan;
• Increasing aquifer recharge;
• Reducing aquifer depletion; and
• Increasing stream flow
Other criteria seek to evaluate how proposed PPAs can
address water management issues related to flood
control, agricultural, municipal and industrial use,
recreational benefits, and wildlife habitat.
The Task Force compiled a lengthy list of proposed
PPAs adding up to almost $1 billion that could help
improve water management and sustainability in
Nebraska, or about $50 million per year over the next
20 years. The projects would all be evaluated, ranked,
and prioritized for funding and local entities would
share the cost of the projects. It would take many years
for the projects to yield results and not all of them
would likely pass muster. But evidence of the need for
investment in water sustainability projects is well
documented: declining water tables in many parts of
Nebraska, a lawsuit by Kansas over allocation of water
in the Republican River Basin, declining inflows to
Lake McConaughy, water quality issues in parts of the
state, mandatory water
conservation measures in
Lincoln and other communities
in 2012 as a result of drought,
and impacts of groundwater
pumping on municipal and
domestic wells, to list a few.
Nebraska has long struggled
with water issues, including
finding sufficient funding to
implement projects that would
improve management and
conservation of water
resources, but other priorities
always pushed the water issues
to the bottom of the funding
ladder. As a result, Nebraska
has seemingly moved from one water conflict or crisis
to another. For example, LB962, passed in 2004, was
an attempt to address long-standing conflicts between
surface and ground water uses in certain areas of the
state, to prevent conflicts from occurring in other parts
of the state, and provide an alternative to court
involvement. While it was a step in the right direction,
necessary funding to fully implement the law was not
provided by the state, the interests of some water users
were virtually ignored during subsequent integrated
management planning processes, and the law’s
objectives have not been fully realized.
Nebraska, through the work of the Water Sustainability
Task Force, now has an opportunity to take a
tremendous step toward achieving the goal of water
resources sustainability. It comes down to whether
water and its importance to Nebraska is able to climb
the ladder high enough to gain the necessary funds to
invest in Nebraska’s future.
Jeff Buettner
Public Relations Coordinator
Central Nebraska Public Power District
Holdrege, NE
The Task Forcecompiled alengthy list ofproposed PPAsadding up to
almost$1 billion thatcould help
improve watermanagement
andsustainability in
Nebraska
Page 12 Nebraska Independent Banker Magazine
I N S U R A N C E
Identity Fraud: Addressing Client Challengesand Creating Bank Opportunities
Banks are no stranger to the real danger posed by
identity fraud. Anyone from bank directors to
employees to clients can fall victim to identity
fraud. Perhaps more so than other institutions, banks
are sensitive to the damage that can be done by an
identity thief and take proper actions to manage risk by
securing specialized insurance policies that cover their
accrued costs, from complying with laws and
regulations to addressing notification expenses, if
breaches occur.
How a bank handles and responds to identity fraud can
be a pivotal factor for potential clients and employees.
Helping clients and employees understand and manage
their risk can turn the threat of identity fraud into an
opportunity. Providing your customers with insurance
such as Identity Fraud Expense Reimbursement
coverage can set a bank apart from its competitors as a
business that goes the extra mile for its customers and
employees.
Despite awareness of fraud and the precautions taken
to protect personal data, identity fraud’s financial
impact on consumers is growing. Javelin Strategy and
Research’s 2013 Identity Fraud Survey Report noted an
incidence rate of 5.26 percent, or 12.6 million new
victims in 2012. In other words, 1 in 19 of a bank’s
customers is susceptible to identity fraud every year.
While the out-of-
pocket expenses to
individuals averaged
$365, the total fraud losses affecting financial
institutions, merchants and other businesses increased
nearly 14 percent from prior year to $20.9 billion.
Acting on Opportunity
Managing identity fraud can be a costly endeavor for
financial institutions. To protect against the occurrence
of identify fraud and comply with federally mandated
Red Flag Rules, many banks invest in comprehensive
security measures and mitigation programs such as
building technology firewalls, data management
protocols or offering credit monitoring for potential
victims in the event the customer information is
compromised. They employ fraud centers and other
loss recovery techniques to minimize their own losses.
These investments can help reduce the likelihood of
identity fraud while increasing customer confidence
and protect their bottom line.
Banks can instill further confidence and loyalty in
clients and employees by employing other risk
management solutions. Identity Fraud Expense
Reimbursement coverage can give employees and
clients another layer of protection and secure the bank’s
role as risk manager and customer advocate. Some
advantages of touting these offerings include:
• Inspiring Loyalty and Exhibiting
Differentiation. Customers expect a bank to
cover the costs of losses that are connected to
bank activities but may not expect coverage
for fraud that occurs outside the “walls” of the
bank. However, when a financial institution
provides expansive Identity Fraud Expense
Reimbursement coverage as a no-cost account
holder benefit, customers know they are
getting a valuable benefit that will respond no
Nebraska Independent Banker Magazine Page 13
matter where the crime originates.
• Proactive Loss Mitigation: By quickly
identifying and resolving an identity fraud
incident, banks will not only provide superior
customer service but also may reduce the
possibility of further additional fraud costs to
the consumer and the bank itself. A customer
who is a better identity fraud risk is good for
the customer and potentially more profitable
for the bank!
• Maintaining Productivity. Resolving identity
fraud incidents often requires the
victim to contact organizations
and creditors during normal
business hours— distracting them
from their job. Offering
employees identity fraud
resolution services can relieve
stress and save them time,
ultimately allowing an employee
to be productive on the job.
Shopping for Coverage
Banks should turn to a trusted insurance
agent or broker to sort through
offerings and determine strategic
solutions. Identity Fraud Expense Reimbursement
policies generally cover lost wages from taking time off
to clear records, attorney fees when legal services are
needed and child or elder care costs. For many banks,
insurance policies that include coverage for travel
expenses, ID replacement costs, medical ID fraud
expenses and other incidental expenses that can quickly
add up when resolving a fraud are going to be more
impactful for the business, employees and clients.
The best insurance policies also provide resolution
services, giving victims access to experts who can
guide their efforts to correct financial records and clear
their credit reports of fraudulent information. Clear
recommendations from an experienced professional can
make an impact on both a victim’s time and expenses.
Top notch resolution services should engage the
customer and include comprehensive educational
websites where bank customers can request free credit
reports, opt out of marketing mailing lists, and access
cutting edge diagnostic tools that help a consumer
gauge their risk to identity fraud. Credible providers
of Identity Fraud Expense Reimbursement insurance
also maintain an experienced claims staff dedicated to
quickly and thoroughly handle claims, which enhances
the overall customer experience.
In Travelers’ experience, while the needs of
policyholders vary, customers typically find value in
Identity Fraud Expense Reimbursement policies with
limits between $1,000 and $25,000.
Additionally, agents can help banks find
a policy that works hand-in-hand with
educational and marketing resources for
the bank, its employees and customers.
In a highly competitive financial
services market, banks will continue to
look for ways to set themselves apart
from competitors in order to attract and
retain customers and employees.
Providing Identity Fraud Expense
Reimbursement insurance to customers
offers value beyond traditional or
legally required services. Providing
similar coverage to employees pays off
in productivity and adds to a bank’s
reputation as a preferred employer. By working closely
with an insurance agent or broker, banks can identify
the best coverage at the most efficient cost, and turn the
risks posed by identity fraud into an opportunity to be
a proactive and service-oriented business partner.
Joe Reynolds
ID Theft Product Manager
Travelers
SOURCES
Stats are taken from Travelers Identity Theft brochure which cites
the Javelin 2013 Identity Fraud Survey Report
https://www.javelinstrategy.com/brochure/276
Providing Identity
Fraud Expense
Reimbursement
insurance to
customers offers value
beyond traditional or
legally required
services.
Page 14 Nebraska Independent Banker Magazine
EDUCATION
AUDITING & ACCOUNTING
5/15 Auditing Your Loan Portfolio5/29 IT Audit for Community Banks
COLLECTIONS
1/15 Real Estate Collections Under the New CFPB MortgageServicing Rules
COMPLIANCE
1/28 Req. Compliance Series for Board & Sr Mgmt, incl. BSA1/29 CFPB Exam Procedures for Int’l Remittance Transfers2/11 Imaged Documents: What to Keep, What to Destroy,
What Holds Up in Court2/25 Trust Compliance in Opening Accounts & Lending3/07 Interagency Guidance for Reporting Elder Financial
Exploitation3/18 Flood Insurance Compliance Update: incl. New Biggert-
Waters Rules Effective 7/6/14 & FEMA Mapping Changes3/19 Regulatory Compliance for Lenders, Including BSA –
Required Compliance Series4/23 CRA Compliance, Update & FAQs6/19 Regulatory Compliance for the Frontline, Incl. BSA –
Required Compliance Series6/26 Compliance Officer Training: Will Your AML/BSA/OFAC
Program Satisfy Examiner Scrutiny?
DIRECTORS
Director’s Series broadcasts are from 10:00-11:30 AM Central Time1/9 Director Series: UBPR Peer Group Analysis for Directors3/11 Director Series: Fiduciary Responsibilities for New
Directors5/13 Director Series: 10 Commandments for Dealing with
Regulators
FRONTLINE & NEW ACCOUNTS
2/13 Opening Accounts for Minors: Compl.Ownership, Access 4/29 Risks & Precautions for Endorsements & Other
Negotiable Instruments5/28 Business Accounts: Who is Authorized to Open, Close,
Transact?6/5 Head Teller Development: Improving Teller Performance6/10 Completing the CTR Report Line by Line
HUMAN RESOURCES
3/4 Essential HR Recordkeeping from Hiring to Firing
IRA
1/14 IRA & HSA Review & Update, Incl. DOMA Implications6/12 Processing IRA Rollovers & Transfers
IT2/19 Risk Management Series: Expanding Your Required IT
Risk Assessment Program2/24 New FFIEC Social Media Guidance: Reg. Compliance, Risk
Assessment & Examiner Expectations2/26 Email Archiving & Encryption4/30 Patch Management – The Art & Science of Keeping
Software Current6/24 Mainstreaming Mobile Remote Deposit Capture:
Adoption, Deployment, Operations & Risks
LENDING
1/22 Commercial Appraisal Review: Income Versus SalesComparison Approach
1/23 What is That Personal Tax Return Telling Me? Part 1: Form 1040, Schedules B, C & D
2/6 Construction to Permanent Lending Under the NewCFPB Mortgage Rules
2/12 Escrow Account Compliance: Rules, Best Practices &Examiner Hot Buttons
2/20 The ALLL in Troubled Debt & Foreclosed AssetRestructuring
2/21 Dissecting the New CFPB Mortgage Rule ExamProcedures for TILA & RESPA
2/27 What is That Personal Tax Return Telling Me? Part 2: Schedules E & F
3/13 Emerging Leader Education: Understanding Asset/LiabilityManagement Concepts
3/25 Loan Origination in the Current RegulatoryEnvironment:Improving Compliance, Costs & Turnaround
3/26 Call Report Revisions & Updates4/9 Managing Loan Risk Using FICO Score Monitoring &
Credit Mitigation Models4/10 Basic Commercial Loan Underwriting: Analysis, Qualifying
Applicants & Decision Making4/22 Ability to Repay – Are You in Compliance with the New
CFPB Rules? 4/24 Interpreting Economic Indicators in Agricultural Loan
Portfolio Management
Live Webinar & Archived Webinar Link with free CD Rom
Calendar shows January–June. For the full year and to review those webinars offered in our Series Package go
to www.nicbonline.com, click on Education then Webinars.
Nebraska Independent Banker Magazine Page 15
LENDING, cont.
5/6 Appraisals & Evaluations for Consumer Real EstateLending: Interagency Guidance, Regulator Issues & FAQs
5/8 Introduction to SBA Lending5/14 Emerging Leader Education: How to Avoid Lender
Liability Claims: Compliance, Regulatory Issues & BestPractices
5/22 Reporting Your Customers’ Credit: Understanding theIncreasing Regulatory Requirements
6/17 Call Report Prep: Basic Lending Sched: RC-C & RC-K6/25 Self-Employed Borrower Tax Implications under the New
CFPB Income Verification Rules
OPERATIONS
1/7 Handling Dormant Accounts & Unclaimed Property1/16 Managing E-Sign, E-Statements & E-Disclosures2/4 ACH Specialist Series: Tax Refunds: ACH Postings,
Exceptions & Bank Liability4/3 ACH Specialist Series: ACH Rules Update 20144/15 Responding to Official Demands for Customer Funds:
Subpoenas, Garnishments, Summonses, Levies5/21 Implementing the New ACH Security Framework
Requirements by December 31, 20146/3 ACH Specialist Series: How to Legally Recover
Unauthorized ACH Withdrawals After the NACHA Return Deadlines
SECURITY & FRAUD
1/30 Your Assets Have Gone Mobile – Have Your Security PlansKept Up?
3/27 Conducting the Annual Physical Security Review
SENIOR MANAGEMENT
1/8 Fee Income 2014: Challenges, Issues & What’s on theHorizon
3/6 Creating a Social Media Policy & Strategy That EveryoneCan “Like”
3/20 Subchapter S Conversion in Community Banks: Issues &Answers
4/17 Risk Management Series: Mobile Device Risks &Compliance Rules: Managing Your Bank’s BYOD & COPE Policies
5/20 Risk Management Series: Regulator Issues in InterestRate Risk: Current Trends, Shock Analysis & Best Practices
6/11 Loan Pricing Strategies for Community Banks
Most webinars are scheduled from 2:00-3:30 PM Central Time unless
otherwise indicated. Please check the brochure copy to confirm the time.
WAYS TO REGISTERCall NICB 402.474.4662 or
Online at www.nicbonline.com/registration-form.htm
no credit card needed, NICB will bill institution.
TRAINING OPTIONS
1. LIVE WEBINAR ($195 NICB Member | $325 Non Member)
LIVE WEBINAR option allows you to have one telephone connection for
the audio portion and one internet connection (from a single computer
terminal) to view online visuals as the presentation is delivered.
Unlimited number of people can listen from your office speaker phone.
Registrants are emailed a link to access speaker handouts, hookup
instructions, and pin number to log into the webinar.
2. ON-DEMAND WEB LINK & FREE CD ROM* ($195 NICB Member |
$325 Non Member)
WEB LINK is a recording of the live webinar with audio, visuals and
hand-outs accessed at the Link site. You can order any time before or up
to 6 months after the date of the Live webinar. Presenter’s email
address provided for any questions. Web link is sent to your email
address when it is accessible, which is approximately 6 days after Live
webinar. The Archived Link can be viewed anytime 24/7 for 6 months
after the live webinar date. You also receive free the webinar on CD
Rom.* You can also access the On-Demand Link through an iPad, iPhone
or Android. The ARCHIVED LINK & CD Rom is a convenient way to do
training with others in your institution. Limited availability – The link or
CD will not be available after the 6 months expires. *CD Rom for PC &
MAC use only
3. BOTH LIVE WEBINAR and ON-DEMAND WEB LINK (includes FREE
CD ROM*)
Includes options 1 and 2 above. ($225 NICB Member | $350 Non
Member)
Grow your bank with us.
ICBA Bancard/TCM Bank | ICBA Securities | ICBA Mortgage
ICBA Reinsurance | ICBA Consulting | ICBA Strategic Technology Solutions
"I began using ICBA Securities early in my banking career, and have profited from the
relationship. Whether it’s finding the perfect muni for my portfolio or attending their
bond academy, we thrive because they take the time to develop a strategy that works.”
Erik Thompson
Chairman
Prairie Sun Bank, Milan, Minnesota
WE BELONG.....
www.icbasecurities.com
(800) 422-6442
AccountingBKD, LLP ...........................................402-473-7600Hocking & Reid, LLC ......................402-441-0140John Cederberg, CPA .....................402-475-8155Labenz & Associates .......................402-437-8383McDermott & Miller, PC
Grand Island ............................308-382-7850Hastings ....................................402-462-4154Kearney ....................................308-234-5565Omaha ......................................402-391-1207
AppraisersRitchie Bros Auctioneers...............402-709-6903Taylor and Martin ............................402-941-1072
ArchitectsKirk Gross Co. ................................319-234-6641
AttorneysBaird Holm LLP ...............................402-334-0500Perry Guthery Haase Gessford PC LLO.............................................................402-476-9200Woods & Aitken LLP......................402-437-8500
AuctioneersRitchie Bros. Auctioneers ..............402-709-6903
Brokerage/Investments/SecuritiesAmeritas Investment .......................800-355-1314D A Davidson
Lincoln .........................................402-420-8201Omaha.........................................800-268-6451
Federated Investors ........................412-288-6501FHLBank Topeka
Eastern Nebraska......................402-740-9911Western Nebraska....................308-893-3452
First National Capital Markets .....800-989-2999RBC Wealth Management .............402-465-3833ICBA Securities...........................800-422-6442UMB Bank, NA.................................800-821-2171United Bankers’ Bank.....................402-933-1644Wells Fargo Securities....................800-422-3465
Card ServicesICBA Bancard/TCM ..................800-242-4770NETS, Inc...........................................800-735-6833SHAZAM...........................................515-288-2828
ChecksHarland Clarke ............................800-382-0818
CollectionsCredit Management Services, Inc..............................................................308-382-3000Double Eagle Collateral Services.............................................................402-517-9726
ConsultingITPAC Consulting LLC...................402-420-1556John Cederberg, CPA .....................402-475-8155Ritchie Bros. Auctioneers ..............402-709-6903WRK Systems, Inc...........................402-592-8999
Core Processing/SoftwareComputer Services Inc ..................800-545-4274D&H...................................................800-989-9009IBT ......................................................512-616-1115Modern Banking Systems ..............402-592-5500
Correspondent BanksBankers’ Bank of the West ............402-476-0400Federal Reserve Bank.....................816-881-2498FHLBank Topeka
Eastern Nebraska......................402-740-9911Western Nebraska....................308-893-3452
First National Bank, Omaha................800-642-9907Midwest Independent Bank ..........402-476-1131UMB Bank, NA.................................800-821-2171United Bankers’ Bank.....................402-932-3329US Bank, NA.....................................402-434-1285Wells Fargo Global .........................800-934-2657
Crop/Mult-PerilUNICO Group Inc .....................800-755-0048
Disaster RecoveryComputer Services Inc ..................800-545-4274WRK Systems ..................................402-592-8999
Document ImagingIBT ......................................................512-616-1115Modern Banking Systems ..............402-592-5500
EducationICBA Online .................................800-422-7285
Electronic BankingNETS, Inc...........................................800-735-6833SHAZAM...........................................515-288-2828
Electronic Liens-SoftwareDecision Dynamics .........................803-808-0117
Employee Benefits/PlansBank Financial Services Group.....800-931-7782Equias Alliance LLC.........................913-433-8645First National Life of the USA......402-483-1776
Equipment/Office SuppliesEakes Office Plus .............................888-329-1344Money Handling Machines ............402-571-5577
Fee IncomeICBA Services Network ................800-422-8439
Financial Products/ServicesBank Financial Services Group.....800-931-7782Federated Investors ........................800-245-5000
FurnitureEakes Office Plus .............................888-329-1344
Identity TheftSpectrum Financial Services ........402-993-4699
Information Security/TechnologyInfogressive .......................................402-261-0123ITPAC Consulting LLC...................402-420-1556SPC .....................................................402-505-0379WRK Systems, Inc ...........................402-592-8999
InsuranceFirst National Life of the USA......402-483-1776Kansas Bankers Surety ...................785-228-0000Spectrum Financial Services ................402-933-4699Travelers Companies, Inc. ......651-310-5946UNICO Group Inc..........................800-755-0048
Loan Origination/Mortgage LendingICBA Mortgage .............................877-516-8665
National AffiliateICBA .................................................800-422-8439
Overdraft ServicesSpectrum Financial Services.......402-933-4699
Recovery ServiceDouble Eagle Collateral Services.............................................................402-571-9726
Website Development/HostingProfitStars......................................615-250-2111
MEMBER RESOURCE GUIDE
Nebraska Independent Banker Magazine Page 17