2. 2 COMMUNITY BANKER UPDATE | MARCH 2015
Want To Attend
A Webinar?
View a complete calendar and
register for CBI-sponsored webinars
and events at www.cbiaonline.org
or Call Us at 515.453.1495
for more information.
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MARCH 2015 WEBINAR LINE-UP
March 3 IRA Series: Traditional & Roth IRA Fundamentals &
Compliance Considerations
March 4 Qualifying Borrowers Using Personal Tax Returns Part 2: Income
from Rentals, Royalties, Partnerships, S Corporations & Farms
March 5 Free Checking Trends in Today’s Market: Feasibility, Regulations
& Benefits
March 10 Director Series: Update on Capital Planning, Contingency & Basel III
for the Board
March 12 Legally Handling ATM & Debit Card Claims Under Regulation E
March 17 Flood Insurance Compliance Review & Update: Including Changes
Effective April 1, 2015
March 19 Real Estate Valuations – Current Issues & Best Practices
March 24 The TILA/RESPA Integrated Disclosure Line-by-Line Part 1:
Loan Estimate
March 25 Call Report Revisions & Update: Including an Overview of Basel III
Regulatory Capital Changes to Schedule RC-R
March 26 Social Media Content Strategies for Visibility & Positioning of
Your Bank Online
March 31 New Accounts Series: Opening Trust Accounts: Compliance,
Documentation, Signing Authority & Deposit Insurance Issues
3. COMMUNITY BANKER UPDATE | MARCH 2015 3CBA_7347_WPS_H_Page Island.indd 1 12/9/14 4:27 PM
Community Bankers of Iowa
1603 22nd Street, Suite 102
West Des Moines, Iowa 50266
Phone: 515.453.1495
In This Issue
March 2015 Webinar Lineup.............. 2
From the EVP & CEO.......................... 3
MSW Poster Contest.......................... 4
LOT Scholarship Program.................. 4
LOT Leadership Development
Conference......................................... 5
Community Banking Month............6-8
Spring Banking Summits................... 9
CBI Hosts FDIC Bankers College.....10
NEW: Peer Connection Forum.........11
From the Top.....................................12
Fine Points........................................13
Years in the Making.........................14
Member News..................................15
Rural Mainstreet Survey............ 16-18
Save the Date:
44th Annual Convention..................18
Let 2015 Be YOUR Year
The CBI staff has been hard at work this winter preparing
for 2015, one of our busiest years ever! We have just
completed a total core conversion of our database which
now includes our brand new website with increased
functionality and content. Later this spring, you will receive
a member login that will allow you access to improved
member support and information, as well as prepopulating
your registrations with your information, allowing you to pay
for registrations at the time and many other features.
Our educational webinar series continues with 20 or more subjects covered each
month, including the ability to capture the information to share with others in your
bank. The number of banks using these webinars reached an all time high in
January 2015.
Plans are nearly complete for our 44th Management Conference and Annual
Convention on July 15-17 in Okoboji, so mark your calendars for the largest
exclusive gathering of community bankers in Iowa. We have great national quality
speakers that will appeal to all, so don’t miss it!
We have been to the Iowa legislature twice already with your Board of Directors
and our Leaders of Tomorrow group, in addition to daily attention by our dedicated
lobbyist and former chief of staff for the Governor, Jeff Boeyink.
We have planned our Spring Community Banking Summits in Waterloo and
Riverside on April 1 and 2 with quality speakers and networking opportunities in a
convenient late day format. Come join us.
We are also pleased to be hosting the FDIC Bankers College in West Des Moines
on May 5. Many bankers have already signed up for that session and it looks to
be a very beneficial session for all community bankers.
Also please notice the change and save the date for the 8th Annual CBI Open Golf
outing on August 11, this year at the Hyperion Field Club.
We also have over 20 preferred partners providing savings and benefits to our
member banks, including the only Iowa-based office supply and promotional
items discount program with Storey Kenworthy.
And last but not least, we are always looking for bankers like you who would be
willing to spend a little of their time giving back to their industry, be it serving as a
director, committee member or chair, or just an active attendee at CBI events.
Why not make 2015 your year of activity participation and commitment with CBI?
4. 4 COMMUNITY BANKER UPDATE | MARCH 2015
The Leaders of Tomorrow (LOT) is a program created by the
Community Bankers of Iowa (CBI) to enhance the growth,
leadership, and networking skills of future banking leaders. LOT
establishes a network of leaders who serve and strengthen their
communities and advocate for the community banking industry.
LOT also encourages the leadership development of the next
generation of community bankers by annually presenting two
scholarships to deserving high school seniors. Starting this year,
LOT has raised the scholarship awards to $1,000 each!
Requirements for the scholarship include:
• Applicants must work at or have a parent, grandparent,
or guardian who works at a bank that is a member of the
Community Bankers of Iowa.
• Write a brief, one-page essay detailing what role community
banks play in your hometown.
• Submit a copy of your high school transcript and indicate
class rank.
• Provide ACT and/or SAT score(s).
• Submit letters of recommendation from three non-relatives.
• Include all community or extra-curricular activities.
If you have a child, grandchild, or an employee graduating high
school this spring, please encourage them to apply to the LOT
Scholarship Program. All applications must be postmarked by
April 30, 2015.
Visit our website to apply online or download application forms
and for more information, or call CBI at 515-453-1495.
Supporting the
Future of
Community
Banking in Iowa
Want to let others
know about the LOT
Scholarship Program?
Display this poster in your
bank!
Download it at
www.cbiaonline.org -
find it under Programs>
Leaders of Tomorrow>
Scholarship Program.
Nominate a Graduating High School
Senior for the LOT Scholarship Program
Since 1999, Community Bankers of Iowa has hosted the Money
Smart Week Poster Contest as part of Community Banking Month
festivities in April and the Money Smart Week campaign hosted by
the Federal Reserve Bank of Chicago to increase financial literacy
among children. Once again, it’s time to encourage students in
your communities to participate.
From now until April 18,
students in second through
sixth grades may create a
poster and return it to their
local participating community
bank. Poster designs should
answer the theme question
“Why is it important to know
about money?” Three prize
places will be awarded: Grand
Prize - $500 Certificate of
Deposit, 2nd & 3rd Places - each
a $200 Certificate of Deposit.
Community banks can participate in
sponsoring the Money Smart Week
Poster Contest by displaying the
poster entries in their banks during
Money Smart Week, April 18-25. To
assist you in that effort, CBI is again
making a Marketing Implementation
Kit available. This kit includes rules and guidelines flyers, display
posters, poster entry labels, a sample press release for local
community media, and more. Participating community banks
should submit all poster entries to the CBI office for judging by
May 1, 2015. All poster entries MUST have a completed poster
entry label affixed to the back of the poster to be eligible.
In 2014, this contest had record-breaking success with over
2,200 entries sent in to CBI be judged. Many of the participating
community banks in Iowa held their own local contests in
conjunction with Money Smart Week events. Judging categories
included creativity, message, and depiction of the theme. This is a
great opportunity to get students and families involved with their
local community banks.
CBI will announce the 2015 Money Smart Week Poster Contest
winners by May 15, 2015. To download marketing materials, visit
our website at www.cbiaonline.org -- look for “Money Smart Week
Poster Contest” as part of the Community Banking Month menu
under the Events tab. Contact Krissy Lee at klee@cbiaonline.org
with questions or for further information.
We hope your 2015 Money Smart Week poster contests are a
success!
Sponsor the 2015 Money Smart
Week Poster Contest at Your Bank
Marketing Items Available Now
Sponsor the Money
Smart Week Poster
Contest in your bank!
Download the
marketing kit at
www.cbiaonline.org.
5. COMMUNITY BANKER UPDATE | MARCH 2015 5
The Leaders of Tomorrow Development
Group will hold their 12th Annual
Leadership Development Conference on
March 26th & 27th, at the Marriott Hotel
in downtown Des Moines.
After a group lunch to kick-off the Conference’s activities.
attendees will meet with Jim Schipper, Superintendent of
Iowa Division of Banking. Following that afternoon are a trio
of Breakout Sessions, featuring Ag Business Management,
Compliance, and IT Security topics. A networking dinner will
also be held Thursday night to give attendees the opportunity to
network with other up-and-coming community banking leaders.
The Conference continues on Friday and will feature a special
video presentation from ICBA President and CEO Cam Fine. Next,
conference participants can attend a Presidents’ Panel including
Suku Radia from Bankers Trust in Des Moines, Kevin Halterman
from Peoples Bank in Indianola and Josh Guttau from TS Bank in
Treynor.
To close the 12th Annual Conference events, keynote speaker
Alan Feirer from Group Dynamic Leadership Training will give his
presentation “Teamwork and Its 5 Dysfunctions”.
Accommodations are available at the Des Moines Marriott-
Downtown hotel. Call Marriott’s general hotel reservation desk at
1-800-514-4681 and ask for the Community Bankers room block.
To register, visit our website at www.cbiaonline.org. Registration
fees are $245 for LOT members, $330 for non-members. Register
by March 10 and pay only $195! (Discount for LOT members;
$245 for non-members.)
Call CBI at 515-453-1495 or e-mail cbia@cbiaonline.org for more
information.
Building the
Next Generation
of Community
Banking
Leadership
LOT’s 12th Annual
Leadership
Development
Conference
March 26-27, 2015
Marriott Hotel-Downtown
Des Moines
Visit www.cbiaonline.org to
view the 12th Annual LOT
Conference brochure.
6. 6 COMMUNITY BANKER UPDATE | MARCH 2015
On Feb. 19, Governor Branstad signed the proclamation declaring
April as Community Banking Month, a nationwide celebration
recognizing the many contributions community banks make to
their customers and communities. CBI encourages our members
to embrace Community Banking Month and spread the word
about what makes your bank an integral part of your local
community. Together, we can focus the public’s attention on the
many ways locally owned and managed banks are making positive
change happen across Iowa. In 2015, we want all Iowans to
know that community banks are “Making A Difference On Main
Street!”
Spread the message to your customers, local businesses, and
throughout your community. Ideas to help make Community
Banking Month a success in your town include:
• Encourage your small business customers to take a
picture outside your bank holding an I Bank Locally sign. Use
pictures to promote your customer and your bank on your
web site.
• Offer an information session for local prospective
entrepreneurs who are interested in starting a small
business. Outline how community banks like yours have the
local expertise to help them get started.
• Recognize Service. Your bank has a vested interest in
the local community. Why not honor those people or
organizations that make your town a better place to live?
• Tie in new products and services. While you are creating
advertising opportunities with Community Banking Month,
why not include the introduction of new services or products
available to customers?
• Host an open house complete with tours, refreshments,
contests and giveaways.
• Invite local schools or scout troops to tour your bank.
Make sure to promote the 2015 Money Smart Week Poster
Contest during the tours! [See page 4 for more information
on the Money Smart Week Poster Contest.]
• Host a charity event. Community banks invest in the
community everyday. Sponsoring or co-sponsoring a
charitable event is a great way to reach the public and show
your commitment to the community.
• Decorate your bank. Celebrate Community Banking Month
with posters, flyers, tent cards, and more, and call attention
to your celebration. Also consider posting banners in your
town center or at other locations to expand your reach.
• Share your bank’s “fascinating facts”. Tell everyone what
makes community banks like yours great. Print trivia about
your bank or community banking so your customers can see
the facts.
There are numerous ways to promote Community Banking Month
and make your bank shine throughout April. Find even more
resources on our website at www.cbiaonline.org.
Posters [see pg 8] to help support your bank’s promotion of
Community Banking Month and the “Go Local” effort are available
again this year. Posters are $1 each. “Go Local” window clings are
also available for use, at no charge. To order posters or window
clings, please contact the CBI office at 515.453.1495 or email
Krissy Lee at klee@cbiaonline.org.
No matter how you celebrate Community Banking Month, share
your story with us! Enter CBI’s Community Banking Month Best-
of-the-Best Competition [opposite page, top] and show all of
Iowa how your bank is supporting your community, spreading the
community banking message and Making A Difference on Main
Street!
APRIL IS
COMMUNITY BANKING MONTH
7. COMMUNITY BANKER UPDATE | MARCH 2015 7
How will your bank celebrate Community Banking Month and spread the “Making A
Difference On Main Street” message? Let CBI know and your bank could win the Traveling
Trophy and a pizza party for staff!
To enter, send us your photos, tweets, activities and whatever else tells us how your bank
celebrated Community Banking Month in April, along with a completed 2015 CBI Best-of-
the-Best Competion entry form. All submissions are due to the CBI office by May 15, 2015.
The winning bank will be announced at the 44th Annual Convention in Okoboji in July,
and will also be featured in the August edition of Community Banker Update and the
CommonCENTS newsletter.
For more information, visit www.cbiaonline.org and check out Community Banking Month
under the Events header. And, read the article below on the 2014 Best-of-the-Best
Competition winning bank!
CBI’s Best-of-the-Best Award distinguishes one Iowa community bank
that epitomizes how community banks are making a difference on Main
Street. The 2014 recipient, Shelby County State Bank, exemplified the spirit
of Community Banking Month with their volunteer work and ingenuity in
giving back to Harlan, Iowa and surrounding communities. Last month, CBI
Executive Vice President and CEO Don Hole presented a free pizza party
and the Traveling Trophy to Shelby County State Bank employees as part of
the Best-of-the-Best Award.
Throughout Community Banking Month in 2014, Shelby County State
Bank’s employees taught financial literacy programs including money
management lessons to elementary and high school students, raised
funds for their Relay for Life team by holding a purse auction, and held a
cash “free sample” day in the form of $2-$10 bills. Bank employees also
helped to coordinate Money Smart Week events like visits to schools by
Ben Franklin, and sponsoring a local Money Smart Week Poster Contest as
part of the state-wide competition hosted each year by CBI. They also had
a free tree giveaway on Arbor Day. Shelby County State Bank helped fund
and deliver trees to 260 fifth-grade students in Shelby County
schools, and gave away over 74,000 trees to be planted
throughout Shelby County.
What stood out to CBI and sealed Shelby County State Bank
as the 2014 Best-of-the-Best Competition Award recipient
were both the sheer volume of financial literacy programs,
events and activities they planned for Shelby County schools
and communities. Congratulations to Shelby County State
Bank for doing such an outstanding job of celebrating
Community Banking Month, for spreading the community
banking message, for “going local”, and for maintaining and
growing relationships in your community!
For a complete description of Shelby County State Bank’s Community
Banking Month activities, view the News articles at www.cbiaonline.org.
Shelby County State Bank Made a Difference on Main Street
CBI Awards the 2014 Best-of-the-Best Competition Winner
Employees of 2014 Best-of-the-Best winner Shelby
County State Bank pose for a group photo during their
CBI-hosted pizza party.
CBI Executive Vice President & CEO Don
Hole (middle) awards the 2014 Best-of-the-Best
Competition Traveling Trophy and plaque to Shelby
County State Bank President Kevin Campbell (left)
and Marketing Officer Janet Buman (right).
START PLANNING YOUR 2015 COMMUNITY
BANKING MONTH CELEBRATIONS NOW!
Can Your Bank Capture the CBI Community Banking Month
Best-of-the-Best Traveling Trophy?
8. 8 COMMUNITY BANKER UPDATE | MARCH 2015
Bankers across Iowa are adopting the “Go Local” campaign,
reinforcing the benefits of the community banking model to their
communities. CBI is still supporting the campaign with Iowa-
shaped “Go Local” signs for use by banks and other similar local
businesses. The easy-to-apply window clings are available at no
charge for CBI Member Banks. To order window clings, please
contact the CBI office at 515.453.1495 or email Pretty Patel at
ppatel@cbiaonline.org.
Posters to help support your bank’s promotion of Community
Banking Month and the “Go Local” effort are also available again
this year. Posters are $1 each. Posters may also be customized
with your bank’s logo (see order form for details). To order,
complete a request form and submit to klee@cbiaonline.org.
Request forms may be downloaded from our website at
www.cbiaonline.org/community-banking-month.html.
Additional custom materials for Community Banking Month are
available on the ICBA website at www.icba.org/golocal/index.cfm.
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605.201.1864
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“Go Local” Campaign Spreads Community Banking Message Across Iowa
Order Posters & Window Clings Today
The First National Bank
in Sioux Falls
BankOnIt
Epcor
Welcome New
CBI Members!
The Community Bankers of Iowa
would like to welcome the following
companies to the association, and
thank them for their support:
Right: Posters are available for purchase to celebrate
Community Banking Month in April. Cost is $1/poster.
10. 10 COMMUNITY BANKER UPDATE | FEBRUARY 2015
Robb Nielsen
(717) 369-0139 • robb@protectmybank.com
www.protectmybank.com
• Information Security
Audit
• Designed Exclusively
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• Similar Scope &
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• Save money by
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CBI is pleased to host the 2015 FDIC Bankers College, in conjunction
with Independent Community Bankers of South Dakota (ICBSD) and
Independent Community Bankers of Minnesota (ICBM). The Iowa
session is being held May 5 from 9am - 3:30pm at the Sheraton
Hotel in West Des Moines.
This one-day educational seminar was designed with bank
executives in mind and will include up-to-date information on various
emerging issues. Presentations will be delivered by a group of
experienced FDIC speakers and experts. Bank execs and officers
with responsibility for lending, asset liability management, financial
reporting, IT, and regulatory compliance should attend.
The FDIC Bankers College is also being hosted by ICBM on May 7th in
Plymouth, MN, and by ICBSD on May 19 in Sioux Falls, SD. For more
information, contact: Dawn Pepin - ICBM at 651-789-3987 or Greg
McCurry - ICBSD at 605-996-9329.
Registration fees are $125. Rooms are also available at the Sheraton
Hotel for $109 per night (group discount available until April 13.) Call
the Sheraton at (866) 716-8134 and ask for the CBI room block.
As you finalize your training plans, please consider this unique
opportunity to interact with your bank’s regulators and enhance your
experience and knowledge. For more information, visit our website or
contact Pretty Patel at ppatel@cbiaonline.org or 515-453-1495.
Learn from the Experts
CBI to Host 2015 FDIC Bankers College
11. COMMUNITY BANKER UPDATE | MARCH 2015 11
New Event Opportunity from CBI!
Peer Connection Forum to Be Held May 28
The Community Bankers of Iowa have long had a relationship
with Iowa’s community banks and their top executives. But now
we want to grow those relationships beyond the board room.
To that end, CBI has developed the Community Banking Peer
Connection Forum, a brand new event designed for everyone
staffing and supporting Iowa’s community banks. The Forum will
take place May 28, 2015 at Prairie Meadows Conference Center
in Altoona.
The Peer Connection Forum is intended as both a learning
experience and a networking and discussion opportunity for
community bank staff in the Marketing, HR, Operations, IT,
Compliance and Lending function groups. This one-day event will
feature educational breakouts on issues important to community
bankers and bank staff below the CEO/director level. Among the
educational topics included in the inaugural Forum are: how to
survive a state exam, vendor management, using marketing to
survive a security breach, qualified mortgages and fair lending,
payments systems issues like EMV chip cards and Apple Pay,
social networking, and more.
Yet unlike other conferences, each Peer Connection Forum
closes with topical analysis sessions for members of each bank
function group. Bank officers and staff can sit in roundtable
forums to debate and dissect what they learned during the
educational sessions of the event, network, and compare
notes on what is and is not working in their own banks. With
the Community Banking Peer Connection Forum, CBI is helping
community bankers build a better bank, and in turn, a better
experience for the communities they serve.
Watch future issues of Community Banker Update, the weekly
CommonCENTS newsletter, and the CBI website for more details
on this exciting new opportunity to learn from - and learn with -
the backbone of Iowa’s community banks.
12. 12 COMMUNITY BANKER UPDATE | MARCH 2015
I’ve Enjoyed the Ride!
Written By: John H. Buhrmaster, Chairman of ICBA
A dozen years ago when I attended my first
ICBA convention in Orlando, I never could have
imagined that I would be sitting here today as
chairman of your great national association,
writing my 12th and final chairman’s column
for Community Banker Update. Yet here I am,
reminiscing about the past year—one that has
been so many things and has meant so much
to me and my family. It has been exciting, tiring,
educational and, most of all, inspirational. The
past year has been one of the most meaningful
experiences of my life.
Part of the job of the ICBA chairman is to
travel the country, and sometimes the world,
to represent community banks whenever and
wherever needed. That’s the job. But the fun
comes when you get to talk to community
bankers, waitresses, cab drivers, doctors and
students. That is where you get to see what
really drives our country. The one thing that all
these people you meet have in common is that,
somewhere down the line, their life was changed
for the better, either directly or indirectly, by a
community bank. After having the opportunity to
witness so much this year, I can say with strong
conviction that America starts with you—the
community banker. It all starts at your desk.
Maybe a student is going to college because his
parents’ business was started with a community
bank loan. Maybe a community bank line of
credit got that restaurant through some tough
times and helped that waitress keep her job.
Maybe a community bank helped that doctor
finance an MRI machine that helped catch a
patient’s cancer early. As a community banker,
you really don’t get to see everything that
happens when you take a chance on someone,
but good things do happen, and they happen
because of you.
As I was preparing to give a speech in Japan
last fall, I researched our small bank’s customer
base and found that more than two dozen small
businesses that banked with us also provided
goods and services around the world. U.S.
community banks are not only important to our
local communities; we are an important part of
the global economy.
That is why with my last chairman’s column,
I will make one last push for you to become
involved—something that has been my platform
and focus over the past year. We must continue
to be heard—all of us, for the sake of our nation’s
economy and the global economy.
Make community banking your cause if you
haven’t already, and fight like hell for it. Don’t
ever let your message get watered down. I’m
ending my term as ICBA chairman, but I have
only begun my work in advocating for community
banks!
Never before have community banks held so
much clout. Now is our time to shine! People
have asked me what has been my favorite
part of being chairman, and I can say that it
has undoubtedly been seeing the passion of
community bankers around the country. There is
unlimited potential for all of us to prosper.
It has been a true honor serving as your ICBA
chairman. I’ve enjoyed the ride! Thank you for
your support and inspiration over the past year. I
couldn’t be more grateful and humbled to serve
such a noble cause.
John H. Buhrmaster is Chairman of the ICBA
and President and CEO of 1st National Bank of
Scotia, in Scotia, New York.
“The one thing that these people have in
common is that their life was changed
for the better by a community bank.”
TOP
From the
13. COMMUNITY BANKER UPDATE | MARCH 2015 13
Community bankers aren’t the only ones who
think so. Nearly everyone in Washington now
agrees, to one degree or another.
Most members of Congress, including the
leaders of both political parties, say it’s time.
Top regulators also concur, and some have even
offered a proposal or two of their own. Even many
of your customers—particularly those, heaven
forbid, seeking a loan without a blood test or
a signature cramp—say yes. Heck, even those
pesky credit unions begrudgingly agree.
And ready for the toss, President Obama says
he would welcome such bipartisan legislation to
sign.
Inside and outside Washington, most people
agree the time has come to enact real,
meaningful and significant regulatory relief for
community banks. And fortunately, we have a
clear, ready-made plan laid out for members
of Congress to do just that. It’s the Plan for
Prosperity, ICBA’s legislative platform outlining for
the 114th Congress specific, targeted regulatory
relief measures for community banks.
Addressing ICBA’s top priority, the Plan for
Prosperity is central to expanding on ICBA’s
recent historic progress to establish a fully tiered
regulatory framework for community banks.
Developed with ICBA’s diverse membership,
the platform contains nearly three dozen
detailed legislative provisions, each addressing
a real-world problem or need. In addition to
promoting specific measures to cut excessive and
counterproductive regulations, its provisions will
help community banks raise capital and make
necessary reforms to the banking regulatory
process and structure.
Significantly, the Plan for Prosperity is a
flexible, living document. It can be adapted
easily and expanded as new opportunities and
circumstances arise. And it gives lawmakers
great leeway to advance legislation in multiple
ways, however they see fit.
This bipartisan plan is ready to go. There’s simply
no excuse for Congress not to act soon. And while
the banking agencies have a powerful and pivotal
role, it’s Congress that has the greatest, final
authority to act quickly and the most effectively.
Understandably, past Congresses have devoted
considerable attention and resources in
responding to the Wall Street financial crisis.
While some of their actions thankfully have
been sensitive to the needs and concerns
of community banks, there’s no question
community banks have nevertheless been
disproportionately and unfairly disrupted by the
newest complex laws and regulations engineered
to stop the excesses and systemic risks of Wall
Street institutions. Acknowledging the problem,
lawmakers repeatedly have told community
bankers to hold on, relief is on the way.
Now after years of constant, concerted and
vigorous but patient advocacy by ICBA, Congress
only needs to wind up its act and to follow
through. Community banks—and our economy—
need relief now.
Next month, nearly 1,000 of your fellow
community bankers will be participating in
ICBA’s Washington Policy Summit. As their top
advocacy priority, the bankers will be promoting
and explaining the Plan for Prosperity and its
measures to their members of Congress. Please
consider joining them. The summit is open
to any and every community banker. Through
our collective presence, we all need to make a
statement on this issue.
Otherwise, please take the time to learn about
the Plan for Prosperity. This is your plan. Be
prepared to contact your representatives in
Congress about it. Nearly everyone agrees our
time has come. But we still need our whole
industry involved. Be ready and be with us.
The Time Is Now
Written By: Camden Fine, President and CEO of ICBA
“...the time has come to enact real,
meaningful and significant regulatory
relief for community banks.”
Following Mr. Fine
More than 1,000 people are following
Camden Fine’s tweets @Cam_Fine— are
you? Visit www.twitter.com/cam_fine.
FINEPOINTS
14. 14 COMMUNITY BANKER UPDATE | MARCH 2015
The Consumer Financial Protection Bureau’s new proposals to
reform its qualified mortgage rules follow years of ICBA advocacy.
The ICBA and community bank campaign to improve those rules
has included a comprehensive study on their impact that was
released before the CFPB announcement of its proposed changes,
which are expected to be formally adopted.
ICBA’s advocacy on the CFPB’s mortgage rules started before the
bureau even opened its doors. The Federal Reserve in April 2011
proposed rules requiring creditors to determine a consumer’s
ability to repay a mortgage before making the loan and defining
“qualified mortgages” that automatically meet so-called ability-
to-repay standards. ICBA worked to ensure the Fed proposal,
later taken up by the CFPB, protected community banks and the
mortgages they offer, such as portfolio and balloon payment loans.
Needless to say, the advocacy process with the CFPB has moved
at the speed of Washington. We’ve achieved success gradually,
with accommodations coming stubbornly. As advocated by ICBA,
the CFPB proposed rule released in January 2013 structured the
qualified mortgage with legal safe harbor protections for some
loans. It also promised to provide qualified mortgage status to
balloon loans originated and held in portfolio by “small creditors”
operating predominantly in rural or underserved areas.
Still ICBA pushed for reform, calling for qualified mortgage
protections for all community bank mortgage loans held in
portfolio. Alternatively, ICBA also urged the CFPB to expand
its “small creditor” and “rural” definitions. ICBA issued survey
results in May 2013 on the limited impact of the community
bank accommodations, which helped lead to final amendments
establishing the new qualified mortgage category for loans by small
creditors that are held in portfolio.
Again and again ICBA pushed for change, the CFPB responded with
accommodations, and we responded with calls for the bureau to go
even further.
The latest ICBA salvo was the association’s January 2015 release
of its Community Bank Lending Survey, which detailed the tangible
impact of the current rules on community banks. Three-quarters
of the community bankers who responded to the survey said the
regulations are keeping them from making more mortgage loans.
Two-thirds said they do not provide loans that fall outside the
qualified mortgage definition or would do so only in special cases.
Clearly, the CFPB was listening. The bureau’s proposed expanded
exceptions would extend the small creditor definition to 700 new
lenders and the rural definition to 1,700 additional rural creditors.
Lenders that qualify for the expanded small creditor exception
would increase from 9,700 to 10,400, while creditors deemed rural
would increase from 2,400 to 4,100, according to the bureau.
Of course, this community bank victory is not the result of just
one survey. It is the culmination of years of effective advocacy—
meetings with CFPB officials, congressional briefings and public
testimony, countless comment letters and correspondences. It also
includes the tireless efforts of community bankers, our affiliated
state and regional associations, and the CFPB’s Community Bank
Advisory Council.
Just the same, this is not the end of the road. ICBA will submit a
comment letter on the bureau’s new qualified mortgage proposal
this month. And we will continue advocating for provisions in our
Plan for Prosperity congressional platform that would impose
statutory changes to the CFPB’s regulations.
Just as this victory serves as a reward for the hard work of our
association and industry, it is also a reminder that effective
advocacy in Washington is performed over years. Furthermore,
it demonstrates the resonance of the community bank voice in
Washington. With our industry’s reputation for responsible lending,
we can continue to make positive change, but only through our
industry’s collective strength, determination and perseverance.
Elizabeth Eurgubian (elizabeth.eurgubian@icba.org) is ICBA vice
president and senior regulatory counsel.
YEARS
IN THE
MAKING
New proposed mortgage reforms
follow extensive ICBA outreach
Written By: Elizabeth Eurgubian - ICBA
15. COMMUNITY BANKER UPDATE | MARCH 2015 15
William C. Rosacker, President
and CEO of United Banker’s Bank,
is pleased to introduce UBB
Compliance Services to the United
Bankers’ Bank product mix. The addition of UBB Compliance
Services to United Bankers’ Bank will serve as a direct way for
community banks to enhance their compliance programs.
“In today’s heightened and increasingly complex regulatory
environment, we are elated to have the opportunity to offer
additional compliance services to our community bankers
to alleviate stress associated with meeting regulatory
requirements,” comments Rosacker.
Given the increased complexity in different areas, UBB
Compliance Services will provide a variety of compliance service
options to banks, including, hotline support, policy review and
development, advertisement and document review, website
review, onsite regulatory compliance reviews, and compliance
training. Each compliance service will be tailored to the bank’s
unique operations and needs.
UBB Compliance Services will be managed by
Kassia Holt, who brings a wealth of practical
working knowledge and experience to the
position. Kassia is certified as a community
bank internal auditor (CCBIA) and is in the
process of obtaining her certification as a
regulatory compliance manager (CRCM) and her
certificate as a BSA/AML Professional (CBAP).
Kassia graduated from St. Catherine University
in St. Paul, Minnesota with a degree in Business
Administration. Her background includes
handling audit and compliance duties at two
community banks, as well as working as a compliance consultant
for a national accounting and consulting firm.
“The ever changing regulatory environment is creating challenges
for community banks. I enjoy these challenges, as they allow
me to use my expertise in assisting community banks navigate
through it all while assisting them to create a strong compliance
program ,” states Holt.
Kassia has designed and developed compliance services to
assist community banks in many ways. For more information,
please contact Kassia Holt at 952-886-9548.
Check out CBI Associate Member United Bankers’ Bank at
www.ubb.com
Do You Know?... Dickinson Law
From a $60-per-month rental office with one attorney nearly 78
years ago, Dickinson, Mackaman, Tyler & Hagen, P.C. has grown
into a general practice law firm that proudly serves clients in all
of Iowa’s 99 counties. Headquartered in Des Moines, the firm
provides a full range of legal and business counseling services
for corporations, governmental entities and associations from
every corner of Iowa and beyond.
Dickinson Law has one of the largest teams of banking
attorneys providing legal services to the state’s community
banks. Related areas include regulatory compliance; bank
mergers & acquisitions; lending, collections & bankruptcy;
corporate governance; strategic planning; executive comp
& benefits; banking litigation; banking intellectual property;
and cybersecurity & vendor agreements. In addition, the
banking group recently launched a new service focused on
providing regulatory compliance advice and legal services
called Compliance Counsel on Command. The group is led by
Howard Hagen, who formerly served as general counsel to the
Iowa Division of Banking and currently serves as counsel to the
Community Bankers of Iowa.
Additionally, the firm is a leading provider of legal services in the
areas of employment and labor, business and corporate law,
commercial litigation, real estate and information technology.
Dickinson Law is one of only a few Iowa firms ranked in every
area of law researched by Chambers & Partners, and has
received top rankings in 19 areas of law in U.S. News & World
Report’s most recent “Best Law Firms in America” rankings.
Dickinson Law has a proud history of being a community service-
minded firm. For the third year in a row this summer, we will open
our doors to the public to showcase our commitment to a unique
program designed to promote Iowa artists. By providing a free
venue for these artists’ works to be seen, we hope to create a
greater awareness of the talent Iowa is fortunate to possess.
You’re invited to join us at this Open House event on Friday, June
26th from 4:30 – 6:30 pm., which coincides with the kickoff of
the Des Moines Arts Festival. RSVP to kcoy@dickinsonlaw.com –
drinks and appetizers will be served.
News from CBI
Affiliate & Associate Members
United Bankers’ Bank Introduces
Compliance Services Program
Kassia Holt will
manage UBB’s
new Compliance
Services program.
Dickinson Mackaman Tyler & Hagen P.C.
699 Walnut Street, Suite 1600 | Des Moines, Iowa 50309 | 515-246-4508
www.dickinsonlaw.com
16. 16 COMMUNITY BANKER UPDATE | MARCH 2015
February Survey Results at a Glance:
• The Rural Mainstreet Index fell below growth neutral for
February.
• Farmland prices sank for the 15th straight month.
• Approximately 22.2 percent of farmland sales were cash
sales, almost unchanged from October 2014.
• February marked the 19th straight month that farm
equipment sales declined.
• Banker’s economic outlook sank for the month.
OMAHA, Neb. – The Creighton University Rural Mainstreet Index
for February slumped from January’s tepid reading according
to the monthly survey of bank CEOs in rural areas of a 10-state
region dependent on agriculture and/or energy.
Overall: The Rural Mainstreet Index (RMI), which ranges between
0 and 100, sank to 46.4 in February, which is down significantly
from January’s 50.9.
“Weaker exports and lower energy and grain prices continue to
weigh on the rural economy that is dependent on agriculture
and energy,” said Ernie Goss, Ph.D., Jack A. MacAllister Chair in
Regional Economics at Creighton University’s Heider College of
Business.
Farming and Ranching: The farmland and ranchland-price index
for February was unchanged from January’s weak 39.4. “Even
though crop prices have stabilized, demand for farmland remains
weak pulling agricultural land prices down by an estimated
annualized rate of 6 percent to 8 percent. This is the 15th straight
month the index has moved below growth neutral,” said Goss.
Even though farm income has weakened, more than one-fifth, or
22.2 percent, of farmland sales are for cash according to bankers
in February. This is little changed from 23.3 percent recorded in
October of 2014.
The February farm-equipment sales index plummeted to 19.5
from 29.5 in January. The index has been below growth neutral
for 19 straight months. “Farmers have become very cautious
regarding equipment buying even though their purchases of seeds
and other inputs have remained solid,” said Goss.
This month bankers were asked to estimate the 2015 change in
farm equipment sales for their geographic area. On average, a
14.4 percent decline in equipment sales is expected by the bank
CEOs. Approximately 60 percent of the bankers expect reductions
of more than 15 percent.
Banking: The February loan-volume index plunged to 46.4
from January’s 62.1. The checking-deposit index sank to 57.3
from 64.8 in January, while the index for certificates of deposit
and other savings instruments fell to a very weak 41.5 from last
month’s 42.6.
Hiring: Despite weaker crop prices and pullbacks from
businesses with close ties to agriculture and energy, Rural
Mainstreet businesses continue to add workers to their payrolls.
The February hiring index jumped to 56.5 from January’s 52.8.
“We have yet to measure any significant decline in employment
for the energy sector in the region. I expect that to change in
the months ahead as lower oil prices work their way through
the economy. Year-over-year job growth for the region is now
approximately 1.4 percent, which is unchanged from last month,
but still well above the historic average,” said Goss.
Confidence: The confidence index, which reflects expectations for
the economy six months out, slipped to 41.5 from January’s 43.6.
“Global economic turmoil along with low energy and farm prices
have negatively affected the outlook of bank CEOs in energy and
agriculture dependent portions of the region,” reported Goss.
Home and Retail Sales: The February home-sales index climbed
to 50.9 from January’s 45.3. The February retail-sales index
inched up to a frail 43.7 from 43.6 in January.
Jeff Bonnett, president of Havana National Bank in Havana,
Ill., reported that many of his customers commute to cities for
employment. “The lower fuel prices here in early 2015 have been
very helpful to these folks, which has helped the local restaurants
and economy.”
Each month, community bank presidents and CEOs in nonurban,
agriculturally and energy-dependent portions of a 10-state area
are surveyed regarding current economic conditions in their
communities and their projected economic outlooks six months
down the road. Bankers from Colorado, Illinois, Iowa, Kansas,
(Rural Mainstreet continued on next page)
Main Street
Economic Survey
C r e i g h t o n
U N I V E R S I T Y
February Rural Mainstreet Index Turns Negative:
Farm Equipment Sales and Farmland Prices Decline Again
Ernie Goss
17. COMMUNITY BANKER UPDATE | MARCH 2015 17
(Rural Mainstreet continued from previous page)
Minnesota, Missouri, Nebraska, North Dakota, South Dakota and
Wyoming are included. The survey is supported by a grant from
Security State Bank in Ansley, Neb.
This survey represents an early snapshot of the economy of
rural, agriculturally and energy-dependent portions of the nation.
The Rural Mainstreet Index (RMI) is a unique index covering 10
regional states, focusing on approximately 200 rural communities
with an average population of 1,300. It gives the most current
real-time analysis of the rural economy. Goss and Bill McQuillan,
former chairman of the Independent Community Banks of
America, created the monthly economic survey in 2005.
Colorado: After rising above growth neutral for 11 straight
months, Colorado’s Rural Mainstreet Index (RMI) declined
below the 50.0 threshold. The state’s RMI slumped to 47.2 from
January’s 50.9. The farmland and ranchland-price index rose to
60.8 from 50.1 in January. Colorado’s hiring index for February
climbed to a healthy 60.8 from 62.3 in January. Colorado Rural
Mainstreet job growth for the past 12 months was 2.2 percent.
Illinois: The RMI for Illinois decreased to 46.3 from 50.5 in
January. The Illinois farmland-price index expanded to 38.7 from
38.2 in January. The new-hiring index rose to 55.0 from 51.3
in January. Illinois Rural Mainstreet job growth for the past 12
months was 1.3 percent.
Iowa: The February RMI for Iowa fell to 46.7 from January’s 51.6.
The state’s farmland-price index for February expanded to 41.5
from January’s 38.7. Iowa’s new-hiring index for February rose to
57.2 from January’s 51.7. Iowa Rural Mainstreet job growth for the
past 12 months was 1.7 percent.
Kansas: The Kansas RMI for January plummeted to 45.1 from
January’s 49.6. The state’s farmland-price index dipped to 37.2
from January’s 38.9. The new-hiring index for Kansas climbed to
53.9 from 51.9 in January. Kansas Rural Mainstreet job growth for
the past 12 months was 0.1 percent.
(Rural Mainstreet continued on next page)
Tables 1 and 2 summarize survey findings
Next month’s survey results will be released on the third Thursday of the month, March 19.
Table 1: Rural Mainstreet Economy Last Two Months and One Year Ago:
(index > 50 indicates expansion)
February
2014
January
2015
February
2015
Area economic index 48.4 50.9 46.4
Loan volume 50.0 62.1 46.4
Checking deposits 61.7 64.8 57.3
Certificates of deposit and savings instruments 42.5 42.6 41.8
Farmland prices 41.7 39.4 39.4
Farm equipment sales 30.9 29.5 19.5
Home sales 53.4 45.3 50.9
Hiring 54.3 52.8 56.5
Retail business 40.1 48.1 43.7
Confidence index (area economy six months out) 47.4 43.6 41.5
Table 2: The Rural Mainstreet Economy, February 2015
Percentage of bankers reporting
51% - 75% 20% - 50% 10% - 19% 5% - 10% Less than 5%
What percent of farm land purchases in your area do
you estimate are cash sales (not financed)?
3.8% 46.2% 19.2% 17.3% 13.5%
Significant
Reductions
Above 15%
Reduction
1% - 15%
Little or no
change
Increases
in sales
1% - 15%
Significant
Increase
Above 15%
In terms of agricultural equipment sales for dealers in
your area for the next year, what do you expect?
59.3% 35.2% 3.7% 1.9% 0.0%
Significant
and positive
Positive
Little or no
impacts
Negative
impacts
Significant and
Negative
Thus far, what has been the impact from the decline
in fuel prices?
5.5% 65.5% 27.2% 1.8% 0.0%
Follow Ernie Goss on Twitter www.twitter.com/erniegoss • For historical data and forecasts, visit: www2.creighton.edu/business/economicoutlook/
18. 18 COMMUNITY BANKER UPDATE | MARCH 2015
(Rural Mainstreet continued from previous page)
Minnesota: The January RMI for Minnesota sank to 44.6 from
January’s 51.0. Minnesota’s farmland-price index declined to 38.5
from 42.1 in January. The new-hiring index for the state advanced
to 54.9 from January’s 54.4. Minnesota Rural Mainstreet job loss
for the past 12 months was -0.4 percent.
Missouri: The February RMI for Missouri plummeted to 47.5 from
54.1 in January. The farmland-price index declined to 53.5 from
January’s 63.7. Missouri’s new-hiring index decreased to 66.8
from 71.7 in January. Missouri Rural Mainstreet job growth for the
past 12 months was 2.5 percent.
Nebraska: The Nebraska RMI for February slumped to 44.4 from
49.0 in January. The state’s farmland-price index slipped to 33.3
from 34.0 in January. Nebraska’s new-hiring index grew to 50.7
from January’s 47.9. Nebraska Rural Mainstreet job loss for the
past 12 months was -0.6 percent.
North Dakota: The North Dakota RMI for February dipped to 53.7
from January’s 56.8. The farmland-price index climbed to 73.7
from 73.0 in January. North Dakota’s new-hiring index expanded
to 83.0 from January’s 79.1. North Dakota Rural Mainstreet job
growth for the past 12 months was 8.7 percent.
South Dakota: The February RMI for South Dakota declined to
45.1 from January’s 49.4. The farmland-price index for February
decreased to 35.3 from last month’s 36.2. South Dakota’s new-
hiring index expanded to 52.3 from 49.7 in January. South Dakota
Rural Mainstreet job growth for the past 12 months was 0.1
percent.
Wyoming: The February RMI for Wyoming fell to 47.1 from last
month’s 50.8. The February farmland and ranchland-price index
ticked up slightly to 41.7 from January’s 41.6. Wyoming’s new-
hiring index climbed to 57.4 from January’s 54.0. Wyoming Rural
Mainstreet job growth for the past 12 months was 0.1 percent.
Hang Out “Where Everybody Knows Your Name” in Okoboji
Community banking helped shape our nation, state,
and towns. Community banks are iconic institutions
that still believe in integrity, fairness, and providing
a genuine value to their customers. They are based
on the continuing and growing relationships with
rural communities, small businesses, farmers, and
families.
The Community Bankers of Iowa’s 44th
Management Conference and Annual Convention
reiterates the importance of the personal service
and commitment of community banks to their
customers and the communities they serve with the
theme, “Where Everybody Knows Your Name.”
The Convention strives to unite community
bankers through education from nationally
recognized speakers, access to the latest products
and services, and numerous opportunities for
networking, camaraderie, and the exchange of
ideas with community bankers statewide.
Join us at the Community Bankers of Iowa’s 44th
Management Conference and Annual Convention,
July 15-17, 2015 in Okoboji, Iowa.
A registration brochure will be in your mailbox soon!
Additional information and registration will also be
available online at www.cbiaonline.org. If you have
any questions about the convention, please call the
CBI office at 515.453.1495.
Save the Dates for CBI’s
44th Management Conference
& Annual Convention
July 15-17, 2015
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management support (offered through ICBA Securities’affiliate, Vining Sparks Asset Management, LLC)
• Loan Trading - Market makers in all loan types for community banks (SBA, USDA, Ag, Residential & Commercial,
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A name you’ve known and trusted for over 20 years.
Your Iowa Balance Sheet Solutions Team:
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800-786-1276
ICBA Securities is a member of FINRA/SIPC
Providing Iowa Community Bankers
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Securities execution services are offered by ICBA Securities Corporation a registered broker-dealer and Member FINRA/SIPC. Other services and products
mentioned are not insured by SIPC and may be offered by separate but affiliated companies. Please visit our website for additional important disclosures
and information. www.icbasecurities.com
Jonathan Ferebee • Gray Allison • Jonathan Pence • Jason Flatt
