South Dakota Banker
Your Premier Source to South Dakota’s Financial Services Industry | December 2015
Paying It Forward
Meet Dean Dreessen,
Merchants State Bank,
Freeman
Page 12
INSIDE . . .
$180,000 Available
in High School Scholarships
Page 9
National Ag Conference
Draws Record Numbers
Page 10
Third Quarter SD Business
& Economic Data Analysis
Page 16
Official Publication of the South Dakota Bankers Association | www.sdba.com
GOED’S NEW FINANCE DIRECTOR:
CASSIE STOESER
“
It is really exciting
when we can
structure a deal
and a company
can announce its
expansion plans.
”
CONTACT CASSIE:
CASSIE.STOESER@STATE.SD.US | 605-773-3301
As the GOED’s new Finance Director, Cassie Stoeser is charged with spearheading
the office’s day-to-day collaborations with the banking industry and economic
development corporations across the state. Cassie started in the office as the
Assistant Finance Director, and says that watching businesses grow is one of the
best parts of the job. “It is really exciting when we can structure a deal and a
company can announce its expansion plans,” Cassie said. “We work hard to review
our programs and make sure that they meet the needs of businesses in our state.”
WWW.SDREADYTOWORK.COM/FINANCE
SDBA Board of Directors
Rick Rylance, Chairman
Dacotah Bank, Rapid City
Paul Domke, Chairman-Elect
Heartland State Bank, Redfield
South Dakota Banker
Your Premier Source to South Dakota’s Financial Services Industry
December 2015 | www.sdba.com
Dave Rozenboom, Vice Chairman
First PREMIER Bank, Sioux Falls
contents
George Kenzy, Immediate Past Chairman
First Fidelity Bank, Burke
Message from the Chairman . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Term Ending April 30, 2016
Ron Kristensen, Farmers and Merchants State Bank,
Plankinton
Dave Zimbeck, Citibank, N.A., Sioux Falls
Term Ending April 30, 2017
Steve Bumann, BankWest, Pierre
Shawn Rost, First Interstate Bank, Sturgis
Kevin Whitelock, Pioneer Bank & Trust, Spearfish
Term Ending April 30, 2018
Jeff Davis, Bryant State Bank, Bryant
Brad Seaman, First State Bank of Warner, Aberdeen
David Bangasser, Dacotah Bank, Sioux Falls
SDBA Staff
Curt Everson, SDBA President
ceverson@sdba.com
How Will Banks Use Technology for Future Growth?;
Registration Open for 2016 ABA GR Summit
From the Executive Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Start a Conversation About Fraud, Financial Exploitation
South Dakota Bankers Insurance & Services Update. . . . . . 6
REMINDER: Self-Funded Plans Must Collect Members’ Social
Security Numbers
Regional Banking News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Rural Banking Career Options Available at NSU, SDSU;
Farm Service Agency To Hold Regional Meetings
Graduate Schools of Banking . . . . . . . . . . . . . . . . . . . . . . . . . 8
Mike Feimer, President of Insurance and Services
mfeimer@sdba.com
Scholarships Available for Graduate School of Banking at Wisconsin
and Colorado
Deb Gates, Administrative Vice President
debgates@sdba.com
$180,000 Available in High School Scholarships . . . . . . . . . 9
Alisa DeMers, Communications Coordinator
ademers@sdba.com
Ag Banking News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Nadine Kepford, IS/Business Manager
nkepford@sdba.com
Jeanine Dyce, Administrative Assistant
jdyce@sdba.com
Roger Larson, Commercial Lines Specialist
rlarson@sdba.com
Michelle Guthmiller, Insurance Specialist
mguthmiller@sdba.com
Robin Feimer, Customer Service Representative
rfeimer@sdba.com
National Ag Conference Draws Record Numbers
Paying It Forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Meet Dean Dreessen, Merchants State Bank, Freeman
Third Quarter SD Business & Economic Data Analysis. . . 16
Ask the Appraiser. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Appraiser Reporting—Use and Format Issues
Editor: Alisa DeMers
IRA Question & Answer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Advertising: If you would like to advertise in South
Dakota Banker, contact Alisa DeMers at ademers@
sdba.com or call 800.726.7322.
Bank Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
South Dakota Banker is a monthly magazine
published by the South Dakota Bankers Association
that is dedicated to enhancing the banking profession
by providing useful and timely information on important
events and trends in the banking industry. Members are
invited to submit news and information.
The advertisements within this publication do
not necessarily represent endorsed vendors of the
SDBA. With the exception of official announcements,
the SDBA disclaims responsibility for the opinions
expressed and statements made. The editor reserves
the right to refuse any advertisement or editorial copy.
Advertising rates are available upon request.
Member banks, branches and associate members
receive one complimentary subscription. Additional
subscriptions are available to members at a rate of $45
per year. The non-member rate is $90 per year.
Serving Bankers Since 1884
Classifieds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Education Calendar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2016 National School for Experienced Ag Lenders. . . . . . . 23
South Dakota Bankers Association
109 West Missouri Avenue, PO Box 1081
Pierre, SD 57501
Phone: 605.224.1653 Fax: 605.224.7835
Website: www.sdba.com
message from the chairman
BY RICK RYLANCE | Regional President | Dacotah Bank, Rapid City
How Will Banks Use Technology for Future Growth?
I
recently attended the ABA Annual
Convention in Los Angeles.
Leadership within the ABA is
changing with the retirement of Frank
Keating and Rob Nichols taking over as
president and CEO. From all indication,
Rob will do a great job in keeping the
ABA moving in the right direction.
A lot of discussion at the convention centered on the
digital advancements coming to the banking industry.
Facebook, Twitter and LinkedIn were discussed during
breakout meetings. The discussion centered on how banks
are using these forms of communication to make contact
with customers and how they will be used going forward.
Virtual currency was also a topic of one panel
discussion. One of the presenters was the head of banking
for Coinbase, which is a bank for bitcoin users.
The takeaway from these discussions was it is here
now, it’s going to stay, and how are we as banks going
to use these new forms of communication for our future
growth. Needless to say, I left those meetings both excited
and scared as we move more into the digital age.
On a side note, I have never been a Jay Leno fan. He
was our closing session and gave his usual monologue.
After he was done, Leno sat down with ABA Incoming
Chair Dan Blanton for a question-and-answer session.
Listening to him answer the questions gave a little better
insight as the person Jay Leno, and I was very impressed.
He understands how fortunate he is for doing what
he loves. I think that is the way most bankers feel as well.
Most of us do this job to make our communities and
customers better. For that, I and the rest of South Dakota
thank you.
The South Dakota Elder Abuse Task Force is pretty
much done with its report. In fact, our last meeting
is Dec. 3. to finalize the report that will be delivered
to the State Legislature. I believe that for the banking
industry, it is good we were at the table. The Task
Force’s recommendation is to have permissible reporting
of suspected elder abuse and a safe harbor for those
reporting it.
With the holiday upon us, I wish you and your
employees the best. Please travel safe and enjoy time with
family and friends. n
Rick Rylance is regional president for Dacotah Bank in Rapid
City. Rylance can be reached at 605.394-9000 or rick.rylance@
dacotahbank.com.
Registration Open for 2016 ABA GR Summit
M
ore than 1,000 bankers come together each
year to speak to Congress and regulators in a
unified voice so that the banking industry can
be heard.
The 2016 ABA Government Relations Summit is
an opportunity for bankers to advocate for the changes
hometown banks need to better serve their customers.
The industry’s collective voice is critical as we educate
policymakers on the important role banks play in
economic growth and job creation.
The 2016 GR Summit will be held March 14-16 at
Washington Marriott Marquis in Washington, D.C.
The event is open to bankers, bank directors and state
association executives.
Banker visits to Capitol Hill are a core component
of the GR Summit. These group meetings help show
the industry’s strength, conviction and unity. A Capitol
Hill Orientation on March 14 will provide a briefing on
how to use this time most effectively.
The Summit will also include dialogue with
regulators and general sessions.
4
Other ABA events taking place in conjunction
with the GR Summit are the Mutual Community Bank
Conference on March 13-14, Emerging Leaders Forum
on March 14, and the Women’s Leadership Forum on
March 16.
Registration for the GR Summit is free. The SDBA
offers a $250 stipend to help with the travel expenses of
one individual from each member bank to attend.
For more information and to register, visit www.
aba.com/Training/Conferences/Pages/GRS.aspx. n
South Dakota Banker | December 2015 | www.sdba.com
from the executive office
BY CURT EVERSON | President | South Dakota Bankers Association
Start a Conversation About Fraud, Financial Exploitation
T
hanksgiving has come and gone,
and Christmas is just around
the bend. Great food (always
too much) and quality time spent with
family and friends (often too little) are
the mainstays of the holiday season.
In the spirit of this season of giving
and thanksgiving, I want to spend some
time discussing something that bankers can give to family
and friends this year, especially to those who are getting
up there in years—the gift of peace of mind by talking
about the risks of fraud and financial exploitation.
Because of the SDBA’s involvement in the work of
South Dakota’s Elder Abuse Task Force, I have spent
considerable time reviewing materials designed to inform
our nation’s elderly and vulnerable citizens about the
risks of financial exploitation—by strangers or caregivers
or even by family members or others in positions of
influence or trust.
During this season of giving thanks, it is appropriate
to recognize SDBA Chairman Rick Rylance and 2014-2015
SDBA Legislative Committee Chair Kristina Schaefer for
the countless hours they have committed to serving the
best interests of South Dakota’s banking industry. As the
South Dakota Elder Abuse Task Force has discussed the
prospects for enacting new state laws to protect elders
from scammers and abusers, Rick and Kristina have
capably expressed the interests and viewpoints of banks
and bankers. But just as importantly, they have also
communicated about the priorities of bank customers as
the owners of the funds in their bank accounts.
At this writing, the task force has proposed legislation
that would permit, but not require, bankers to report
suspected cases of financial exploitation or abuse. The bill
contemplates a framework where, rather than creating a
new system and processes for reporting suspected cases
of exploitation of an elderly customer, bankers could
file a suspicious activity report (SAR) with FinCen, and
South Dakota’s state and local law enforcement agencies
could gain access to those reports through a central point
of contact housed within the office of South Dakota’s
Attorney General. Banks and bankers would be given
statutory immunity from any legal action stemming
from reports filed under the new law. The Task Force’s
proposed legislation will be discussed by the members of
the SDBA Legislative Committee at its meeting on Dec. 10.
Back to the subject of teaching elderly customers
about financial exploitation and how to avoid being a
victim, much development of training materials has
already been done by bankers, bank regulators and
other interest groups. During the ABA’s recent annual
convention, Consumer Financial Protection Bureau
Director Richard Cordrey spent considerable time
discussing what the CFPB and bankers can do to enhance
the financial wellbeing of older Americans.
Director Cordrey stated that when Congress created
the Consumer Bureau, it saw the need to protect older
Americans against financial exploitation and to promote
economic security later in life. He touched on a couple
of specific areas where the CFPB has produced materials
aimed at helping elderly people and their caregivers
understand how to minimize risks of financial fraud or
exploitation.
First, the CFPB has produced a series of guides called
“Managing Someone Else’s Money” aimed at helping
elderly people and their caregivers or advisors make
better decisions about handling the elder’s financial
affairs. Second, the Bureau collaborated with the FDIC
in the production of “Money Smarts for Older Adults,” a
resource aimed at informing elders and concerned family
members about the most common frauds and scams.
Each of these series is easy to find through the CFPB’s
website at www.consumerfinance.gov/older-americans.
Another good resource is a six-page brochure “Protect
Your Pocketbook: Tips to Avoid Financial Exploitation”
which can be found at www.eldercare.gov.
In January, the ABA Foundation will be offering
resources for a new banker-led consumer education
campaign, Safe Banking for Seniors, to help older
customers and their financial caregivers understand how
to best protect themselves against fraud and financial
exploitation. The resources will be available free of
charge to all banks upon registration of participation in
the campaign. For more information and to sign up for
campaign updates, visit aba.com/seniors.
By virtue of your chosen vocation, bankers are
naturally looked upon as a trusted advisor, not only by
your elderly customers, but also your older relatives,
friends or neighbors. Why not use this holiday season as
the occasion to have a conversation about the ever-present
threats associated with scammers or anyone else who
might try to take financial advantage of the increasing
number of seniors living in your home communities?
There is no shortage of available materials to help with
your efforts, and more are on the way.
But you don’t need the perfect PowerPoint slides or
infographic to have a conversation with an elderly friend
or relative about protecting their hard-earned money.
What it does take is someone to start that conversation.
Why not you? Why not now?
Best wishes and happy holidays from the staff at the
South Dakota Bankers Association! n
Curt Everson is president of the South Dakota Bankers
Association. Everson can be reached at 605.224.1653 or
ceverson@sdba.com.
South Dakota Banker | December 2015 | www.sdba.com
5
south dakota bankers insurance & services update
BY MIKE FEIMER | President | South Dakota Bankers Insurance & Services Inc.
REMINDER: Self-Funded Plans Must Collect
Members’ Social Security Numbers
B
eginning January 2016, employers
with self-funded group health
plans (regardless of size) are
required to report the minimum
essential coverage they provide to all
their employees and their covered
dependents for any and all months
during the preceding calendar year. The
IRS requires that the Tax Identification Number (TIN),
which is usually the Social Security number (SSN), be
used to identify individuals in the IRS reports.
NOTE: Self-funded group health plans are responsible
for collecting TINs from their members for purposes of
reporting under Section 6055. Wellmark will not provide
this service for self-funded group health plans but will
provide the information to SDBIS, and it will be provided
to each bank.
Tools for Self-Funded Groups
To help with the collection process for self-funded
plans, Wellmark provides a report to help employers
identify plan members whose record indicates a missing
or invalid TIN. These reports are available on the
employer-reporting site on Wellmark.com. The report is
labeled “Enrollment SSN.” Such a report only generates if
an employer has at least one problematic TIN, according
to our identification process. Michelle Guthmiller and I
have provided your bank with the up-to-date information
from Wellmark to help populate the forms required by the
IRS.
Putting the Report into Action
To help self-funded employers collect absent or
invalid TINs, Wellmark has created an updated sample
letter and form that can be personalized with company
information and sent to the identified employees. The
letter and form are to be completed and signed by the
primary contract-holder and returned to your company
for reporting to the IRS.
The updated letter and request form are available on
the Employer Toolkit.
●● Self-Funded Letter Template: M-23587 Self-Funded
SSN Request Letter Template
●● Self-Funded SSN Request Form: M-23586 SelfFunded Social Security Number Request Form
Potential Penalties
Remember, employers that fail to comply with the
information reporting requirements may be subject to the
general reporting penalties for a failure to file a correct
information return (section 6721) and failure to furnish
correct payee statement (section 6722). The final rules
provide for no reporting penalties for any optional 2014
reporting and a good faith effort standard for 2015. The
good faith standard for 2015 reporting (in 2016) only
applies for incorrect or incomplete information. It does
not apply in the case of late filings or if nothing was filed.
For specific information regarding the application of
these rules to your facts and circumstances, please consult
your legal and/or tax advisors. n
*Information provided by Healthcare Reform BCBS,
November 2015
Mike Feimer is president of South Dakota Bankers Insurance
& Services (SDBIS), Inc. For more information on the SDBA’s
Group Health Insurance Plan, contact Feimer at 605.660.2341
or mfeimer@sdba.com or SDBIS Licensed Insurance Specialist
Michelle Guthmiller at 800.221.7551 or mguthmiller@sdba.com.
6
South Dakota Banker | December 2015 | www.sdba.com
regional banking news
Rural Banking Career Options
Available at NSU, SDSU
N
orthern State University (NSU) and South Dakota
State University (SDSU) have joined forces in
a unique partnership to enhance and enable
curriculum offerings to students at both institutions.
The partnership between SDSU and NSU is
motivated by, and in response to, the need for community
bankers to better understand the financial and banking
services that are essential to South Dakota’s agricultural
and agribusiness sector. By offering the courses that
comprise SDSU’s agribusiness minor and NSU’s banking
and financial services minor online, students at both
institutions have the opportunity to graduate with
significantly improved career preparation.
NSU students can receive an ag business minor from
SDSU, and SDSU students can receive a banking and
financial services minor from NSU. The collaboration,
funded by Dacotah Bank, will allow students to enhance
their education through curriculum offerings at both
institutions, therefore better preparing them to enter the
workforce.
For more information and courses available for the
18-credit minors, contact:
●● Northern State University: Todd Muehler, assistant
professor, School of Business, Banking and
Financial Services, Todd.Muehler@northern.edu
●● South Dakota State University: Nicole Klein,
professor, College of Agriculture and Biological
Sciences, Economics Department, Nicole.Klein@
sdstate.edu n
Farm Service Agency To Hold
Regional Meetings
F
arm Service Agency will hold five regional meetings
across South Dakota to discuss its Guaranteed Loan
Program. The meetings will cover pressing issues
facing ag lenders in 2016, including:
●● Application requirements—primarily loan
narratives. How detailed of a narrative do we need
from the lender?
●● Restructuring options for existing guaranteed
loans.
●● Handling new loan requests for refinancing debt
including the existing lender as well as other
creditors.
●● Utilizing guaranteed line of credits, loans outside
of the guarantee program and releasing annual
grain/calf proceeds.
●● Funding outlook for both our direct and
guaranteed program, as well as new programs for
partnering in providing credit.
The meetings will held from 9:30 a.m. to noon on the
following dates and locations:
●● Dec. 7: Pierre, Casey Tibbs Rodeo Center
●● Dec. 8: Aberdeen, Ramkota
●● Dec. 9: Watertown, Codington County Extension
Complex
●● Dec. 10: Mitchell, Ramada
●● Dec. 15: Rapid City, Black Hills State UniversityRapid City (University Center)
The Guaranteed Program remains an important part
of FSA’s lending program for helping producers in South
Dakota. n
SDBA Requests Info from Member Banks
T
he SDBA is calling on
all member banks to
participate in its annual
State Banking Data Collection
Survey.
Each December, the SDBA
emails all member banks its
online annual survey. The intent
of the survey is to demonstrate
that banks are great corporate
citizens and serve as “stewards” of their communities
and the state in ways beyond routine banking services.
The Association requests that banks supply basic
date for calendar year 2015, or for the most recent
12-month period for which the bank has data available.
The SDBA will present the data at its State Legislative
Day on Feb. 10, 2016, in Pierre.
The SDBA is also requesting short narratives and
photos of banks’ community service projects. If your
bank has a community service project from this past
year that you would like to be included, please submit
a short narrative describing the project. If you have a
photo of the project, email it to ademers@sdba.com.
The names of all banks that participate in the
survey will be listed in the survey piece. All individual
information will be kept confidential as to the amounts
disclosed in any of the categories. Questions, contact
Alisa DeMers at ademers@sdba.com or 800.726.7322.
The results of last year’s survey can be viewed at
www.sdba.com/state-banking-data-collection. n
South Dakota Banker | December 2015 | www.sdba.com
7
graduate schools of banking
Scholarships Available for Graduate
School of Banking at Wisconsin
Scholarship Available for Graduate
School of Banking at Colorado
The Graduate School of Banking (GSB) at
the University of Wisconsin-Madison provides a
comprehensive course of study of general banking and
management subjects especially designed to meet the
needs of bankers whose responsibilities and scope of
activities are expanding.
Prochnow Educational Foundation/SDBA
scholarships will be awarded to two South Dakota
bankers attending the 2016 school session. The scholarship
amount is $1,300 for each year of the student’s attendance
(approximately one-third of the annual tuition fees), for a
total value of $3,900.
The 2016 school session will be held July 31 to Aug. 12
at the University of Wisconsin-Madison. The deadline to
apply for the scholarship is June 1, 2016.
In addition, one scholarship to attend GSB’s Human
Resource Management School April 10-15, 2016, will be
awarded to a South Dakota banker. The recipient will
receive a $925 discount on registration. The deadline to
apply for the scholarship is Feb. 12, 2016.
Visit www.sdba.com/gsb-wisconsin. Or contact Deb
Gates, SDBA, at debgates@sdba.com or 800.726.7322. n
The Graduate School of Banking at Colorado (GSBC)
partners with the SDBA each year to offer the GSBC
Future Leaders Scholarship. The scholarship is awarded
to one banker per state, per year, and recipients must be
first-year students.
Scholarship recipients receive $1,325 per year for three
years to attend GSBC’s Annual School Session. The 66th
Annual School Session will be held July 17-29, 2016, at the
University of Colorado at Boulder.
GSBC’s Annual School Session is a 25-month,
graduate school of banking that is hosted each July.
Since 1950, banks have trusted the GSBC to prepare the
next generation of community bank leaders. This legacy,
combined with a cutting-edge curriculum, expert faculty
and state-of-the-art facilities make GSBC’s banking school
an ideal management training program for community
banks nationwide.
The 2016 application deadline is March 1. Candidates
will be notified by March 31, 2016, of selection decisions.
Visit www.sdba.com/gsb-colorado. Questions, contact the
GSBC Office at 800.272.5138 or Deb Gates with the SDBA
at debgates@sdba.com or 800.726.7322. n
8
South Dakota Banker | December 2015 | www.sdba.com
$180,000
IN HIGH SCHOOL SCHOLARSHIPS
from the South Dakota Bankers Foundation
and Your Bank…
Scholarships are available in $500 increments to the first 180 banks/branches who agree to match an equal
amount. One-hundred eighty $1,000 scholarships will be awarded to high school seniors on behalf of their
sponsoring banks and the South Dakota Bankers Foundation.
Foundation Requirements Banks who participated in the High School Scholarship Capital Campaign will be eligible to complete this
application.
Student must be a high school senior who plans to attend an accredited South Dakota college, university,
vocational technical school, or community college on a full-time basis.
Winners agree to have their names released to the media.
Other eligibility requirements as determined by the sponsoring bank.
Matching Funds Application
Bank/branch must match each scholarship at $500. Scholarships are awarded based on one per bank, then one per branch
with additional requests considered until the $90,000 is awarded. Submit in the order of priority. Duplicate this form if
you have more than three locations requesting scholarships.
Bank Name: __________________________________________________
Branch/Bank City: _________________________________ # of $500 scholarship(s) applying for to this location:___
Contact Name:______________________________ Email:____________________________________
Branch/Bank Address: ________________________________________________ Zip:_________________
Phone: ______________________________
Fax: __________________________
Branch/Bank City: _________________________________ # of $500 scholarship(s) applying for to this location:___
Contact Name:______________________________ Email:____________________________________
Branch/Bank Address: ________________________________________________ Zip:_________________
Phone: ______________________________
Fax: __________________________
Branch/Bank City: _________________________________ # of $500 scholarship(s) applying for to this location:___
Contact Name:______________________________ Email:____________________________________
Branch/Bank Address: ________________________________________________ Zip:_________________
Phone: ______________________________
Fax: __________________________
Submit requests by December 18, 2015.
You will be notified when we receive your application.
Parent banks will be notified in January 2016 of the number of $500 scholarships bank and/or branch(es) will be
awarded. Checks will be sent the first week in February 2016.
Send this application by mail, fax or email to:
South Dakota Bankers Foundation
PO Box 1081- Pierre, SD 57501
Fax: 605-224-7835 * Email: jdyce@sdba.com
Questions: Call 605-224-1653
South Dakota Banker | December 2015 | www.sdba.com
South Dakota
Bankers
Foundation
9
ag banking news
National Ag Conference Draws Record Numbers
T
he ABA’s National Agricultural Bankers Conference
Oct. 25-28 in Kansas City, Mo., drew a record
number of more than 900 registrants in attendance.
The conference focused on navigating volatile
times as ag bankers everywhere begin to “Position to
Transition” in the challenging times ahead. Tribute was
paid to outgoing chair of the ABA’s Ag and Rural Bankers
Committee, Nate Franzen, president of First Dakota
National Bank’s agri-business division, Yankton, S.D.
John Blanchfield, former director of the ABA’s Center
for Agriculture and Rural Banking, was also recognized.
The Blanchfield Award, named in honor of its first
recipient, is a new annual award to honor agricultural
professionals who have made significant contributions to
the advancement of agricultural banking.
Deb Gates, SDBA administrative vice president,
promoted the Association’s National Ag Banking Schools
at a booth in the exhibit hall. n
Dr. Dave
Kohl,
professor
emeritus,
Virginia
Tech,
Blacksburg,
Va., and
Deb Gates,
SDBA,
Pierre.
Steve
Apodaca,
ABA Center
for Ag
and Rural
Banking, and
Becky
Tongish,
Kansas
Bankers
Association.
Laura
Linden,
Kassidy
Kampen and
Shelby Hill
with MetLife
Agricultural
Investments,
Overland
Park, Kan.
Chad Beam,
Peoples
Bank,
Wilmington,
Ohio, was
the winner
of a Black
Hills gold
key chain
donated by
the SDBA.
From left, Mike Yackley, BankWest, Onida; Doug Long,
BankWest, Winner; Darrell Schlepp, Dacotah Bank, Mobridge;
Jason Smith, BankWest, Pierre; and John Blanchfield,
Agricultural Banking Advisory Services, Damascus, Md.
10
From left, First Dakota National Bank employees Darin
Schroeder, Yankton; Austin Havlik, Mitchell; Will Haugen,
Yankton; and Denny Everson,Yankton; with South Dakota
Secretary of Agriculture Lucas Lentsch, Pierre.
South Dakota Banker | December 2015 | www.sdba.com
Longtime ABA Staffer Receives National Ag Award
T
he Blanchfield Award, named in
honor of its first recipient, was
presented to John M. Blanchfield
at the American Bankers Association
(ABA) National Agricultural Bankers
Conference on Oct. 28, 2015, in
Kansas City, Mo. The ABA Center
for Agricultural and Rural Banking
created the new annual award to honor agricultural
professionals who have made significant contributions to
the advancement of agricultural lending.
“John has dedicated his career to making the ag
banking industry better for bankers and their customers,”
said Steve Apodaca, senior vice president, ABA’s Center
for Agricultural and Rural Banking. “From providing a
national forum for ag bankers to collaborate to consensus
building on issues critical to the industry, we believe he
deserves recognition at the national level.”
For 25 years, Blanchfield was senior vice president
of ABA’s Center for Agricultural and Rural Banking,
where he was responsible for developing ag banking
policy, lobbying on behalf of the industry, and managing
the National Ag Bankers Conference and a national
committee of bankers.
In addition, he spoke at conferences across the
country providing industry updates and outlooks.
Currently, Blanchfield owns an independent consultancy
called Agricultural Banking Advisory Services that helps
banks and their customers understand the intersection of
federal ag banking policy and the ag economy.
“I am deeply honored and humbled that ag bankers
wanted to do this for me,” said Blanchfield. “It’s
incredible to have the opportunity to leave a legacy like
this. Having a national award named after you is very
humbling.”
The award was established by ABA and its
Agricultural and Rural Bankers Committee to honor
Blanchfield and others like him who are not bankers.
Like the Association’s Bruning Award, given to a banker
each year for his or her contributions to ag banking, the
Blanchfield Award was presented at the ABA National
Agricultural Bankers Conference.
“We recognized that there are others who aren’t
bankers who are providing significant contributions to
the industry, and we wanted a way to honor them,” said
Apodaca.
Blanchfield began his career in 1978 with USDA’s
Farmers Home Administration in Utica, N.Y. “If I knew
on January 3, 1978, as I pulled away from the federal
building in Syracuse in my Gremlin that this is where
I’d end up, I would have been a lot more excited,” said
Blanchfield. n
South Dakota Banker | December 2015 | www.sdba.com
11
Paying It Forward
Meet Dean Dreessen,
Merchants State Bank, Freeman
By Alisa DeMers, Editor
D
ean Dreessen has had a
number of mentors during
his 35-year banking career,
but the most important mentors have
been his parents—Fred and Juanita
Dreessen.
Education and a strong work
ethic were values stressed in the
Dreessen household, as well as
competition playing sports. Dreessen
has carried these values forward as
president and CEO of Merchants
State Bank in Freeman.
“I have tried to do a good job of
paying it forward. I have mentored a
lot of young people born or raised in
12
this area that have interned with us
and had banking careers within the
state,” Dreessen said. “I am proud
to say that we have hired some
people who were summer interns
that I mentored earlier. I believe it
is important for our industry and
community banks to continue to do
this and that there needs to be more
mentorship.”
Small-Town Upbringing
Dreessen grew up in Alvord,
Iowa, a community of around 200 in
northwest Iowa. Alvord is located 14
miles east of Canton, S.D. Dreessen’s
father was the manager of the local
farmers co-op elevator, and his
mother was a school teacher.
“Like a lot of small-town
communities, work ethic, church
and education were all values that
were taught at a very young age,” he
said. “With having a father who was
a business leader in the community
and a mother who was a school
teacher, I really didn’t get away with
a whole lot of things growing up.
And because I was the oldest, they
were also trying to set an example.”
Dreessen’s family was very active
in sports, and he played all types
South Dakota Banker | December 2015 | www.sdba.com
of sports. During his freshman year
of high school, Dreessen gave up
football for cross country after being
hit in the back and almost losing
a kidney. His favorite sport was
basketball.
In addition to playing sports, he
also sang in choir and swing choir.
While Dreessen lived in town, he
worked for a number of local farmers
performing tasks such as walking
beans, baling hay, chopping silage
and shelling corn. He worked for a
contractor putting up grain bins and
pouring concrete, as well as Roorda
Manufacturing in Rock Valley, Iowa,
assembling silage and feeder wagons.
In addition, he also helped his father
driving trucks for the elevator.
“I can remember my dad sitting
down with me and asking what I
was going to do after high school.
I had intentions of going to South
Dakota State University to get a
degree in ag economics and being
an elevator manager just like my
father,” Dreessen recalled. “His
comment was, ‘Are you nuts? You
work in the dust and with chemicals,
you put in long hours, and you try to
keep farmers happy.’”
Instead, Dreessen’s dad
encouraged him to pursue a business
degree and become an accountant.
After graduating from high school
in 1977, Dreessen did just that and
attended the University of South
Dakota in Vermillion, where he
earned a business degree.
A Career in Ag Banking
After graduating from USD,
Dreessen immediately began
working for the Farm Credit
System—five years in Cherokee,
Iowa, and four years in Emmetsburg,
Iowa.
He first job with Farm Credit
was as a beginner ag loan officer and
later branch manager in Cherokee. In
Emmetsburg, Dreessen served as vice
president and managed the Farm
Credit branch and a second location
in Algona, Iowa. He was only 27 at
the time.
Dreessen next spent six months
working for First National Bank in
Sioux Center, Iowa.
“I had become a little
disillusioned with the Farm Credit
System and had entertained some
headhunters and said please find me
a position in southwest Minnesota,
northwest Iowa or southeast South
Dakota so I would be dealing with
crops and livestock that I understood
and knew,” Dreessen said.
He was contacted about a
position that had opened up at
Merchants State Bank in Freeman,
a community of around 1,200 in
southeast South Dakota.
“I interviewed with Ted Hofer—
one interview three hours long,”
Dreessen recalled. “I didn’t hear
anything for two to three weeks, so I
thought I had bombed.”
Dreessen was offered the job out
of 69 applicants. He began working
as a loan officer at Merchants State
Bank in Freeman on Aug. 1, 1990.
His job included handling all types
of lending such as ag, consumer and
residential real estate and serving as
compliance officer.
When Dreessen joined the bank,
Ted Hofer had just taken over as
Merchants State Bank in Freeman is located at 305 S. Main St.
South Dakota Banker | December 2015 | www.sdba.com
13
The pictures at left were taken of Merchants State Bank in
Freeman in 1920. The picture above is the structure built in
1913 that served the bank until 1979 when a more modern
building was built. The clock in the picture still stands outside
Merchants State Bank today.
president for his father, Harris L.
Hofer, who was having health issues.
History of Merchants State
Bank
Merchants State Bank was
founded Aug. 8, 1899, on Main Street
in Freeman. Due to the failure of
a correspondent bank and the loss
of the bank’s deposits with that
bank, Merchants State Bank was
forced to close briefly in 1930. It
reopened within three months after
the shareholders invested additional
capital and repaid depositors.
In 1913, a new structure was
built on Main Street. It served
the bank until 1979, when a more
modern building (the south portion
of the current building) was built to
accommodate growth. That growth
was realized, and in 1999 the bank’s
most recent addition was completed
to celebrate its 100th anniversary.
In 1968, Harris L. Hofer bought
the bank from Jacob J. Wollman. At
that time, assets of the bank were $2
million. By 1988, the bank had grown
14
to $24 million in assets, when it
purchased the assets of Hurley State
Bank in Hurley.
When Dreessen joined the bank
in 1990, total assets were around
$28 million, total loans were $8
million and total capital was around
$2 million. In April 2000, the bank
added a location in Viborg, followed
by a fourth location in Irene in 2011.
Today, assets of the bank are
around $155 million, with $105
million in loans and more than $17
million in total capital.
In 1997, Dreessen was promoted
to vice president and senior lending
officer and joined the bank’s Board
of Directors. At this time, he rewrote
the bank’s lending and compliance
policies and developed a lot of the
bank’s loan scoring systems and
documentation standards.
Dreessen was named president
and CEO of the bank when Ted
Hofer partially retired in 2010.
Today, Dreessen is involved in all
aspects of the bank on a daily basis
by keeping the Board of Directors
informed of business and personnel
decisions. He sits on all of the bank’s
standing committees and has a loan
portfolio of core customers he has
worked with for more than 25 years.
Ted Hofer continued to serve
as chairman of the board until he
passed away this July at the age
of 62. Dreessen is preparing Ted’s
daughter, Emily Hofer, who serves as
CFO, to someday lead the bank.
“Upon my retirement, she
will take over as president of this
community-owned bank and
continue the traditions that this
institution has had,” Dreessen said.
Customer Service
& Employee Relations
Merchant State Bank’s mission
is to provide high-quality financial
services to the communities it
serves and to promote economic
growth and stability within those
communities, while earning a
reasonable profit. At the center of the
bank’s core mission is providing the
services necessary for its customers
to be successful.
South Dakota Banker | December 2015 | www.sdba.com
“We are big enough that we can
offer enough services and diversity,
and we are small enough that it is
kind of like family,” said Dreessen.
The bank’s service area is
approximately a 60-mile radius,
and its roots are in agriculture.
The bank offers all core banking
services, including residential real
estate lending. The bank handles
approximately 25 to 30 residential
real estate loans a year.
“I think a lot of our customers
bank with us because of the expertise
of our lending staff,” Dreessen
explained. “One of the things that
has helped our success is that our
ag lenders grew up in and are still
involved in agriculture. I think
our customers see us having a
relationship of value rather than just
a relationship of being a lender. That
is a level that we strive to.”
In total, Merchants State Bank
employs 33 people at its four
locations, of which 17 work in
Freeman.
As president, Dreessen said
he stresses communication and
education at the bank. He wants
employees to look at their work as a
career and not just a job.
“I believe that we try to share,
from a management position,
everything that we can share with
our employees—the strategic plan
of our bank and where we want to
go and what our expectations are
of our employees,” he said. “Every
employee will have from one to
three opportunities for continuing
education for their career during a
calendar year.
“Our greatest asset is our
employees. We wouldn’t have
the bank, we wouldn’t have the
numbers, we wouldn’t have the
presence in our communities that
we have without our staff that
is dedicated, professional and
courteous, and willing to go the extra
mile.”
While the bank has supported
a number of causes in its four
locations, one organization
Merchants State Bank has long
helped is Make a Wish Foundation.
“When Ted Hofer was diagnosed
with cancer the first time around 21
years ago, he was taking chemo in
Back from left: Scott Dreessen, Brian
and Riley Sandberg, Dean Dreessen and
James Dreessen. Front from left: Jenna
Sandberg and Joan Dreessen.
Sioux Falls, and it just broke his heart
having to see little kids do that,”
Dreessen explained. “And from that
time on, Merchants State Bank has
been very involved in the Make a
Wish Foundation.”
Continuation of Family
Values
Dreessen met his wife, Joan,
while in college. Joan, who is from
Tripp, S.D., studied accounting
at USD. She later went back to
school for a degree in radiological
technology and works for Freeman
Regional Health Services.
The couple has three children.
Daughter Jenna is married to Brian
Sandberg and lives in Des Moines.
Jenna works in Wells Fargo Bank’s
capital acquisition department, and
Brian is a civil engineer. The couple
has one daughter, Riley.
Son James graduated from
USD Medical School in May and
is working a surgical residency
at the University of Pittsburgh in
Pittsburgh, Pa.
Son Scott is a credit analyst at
First Dakota National Bank in Sioux
Falls.
“Just like the household that
I was raised in, education and
work ethic we tried to stress in our
household as well,” Dreessen said.
“It’s about education, working hard
and people skills.“
In his free time, Dreessen enjoys
hunting and playing golf. He is also a
Dean and Joan Dreessen
Minnesota Twins and Vikings fan.
Dreessen serves on the
Freeman Community Development
Corporation and the local hospital’s
foundation board, as well as an elder
and past president of his church.
Dreessen is also a member of the
South Dakota Bankers Benefit Plan
Board of Trustees, which oversees
the SDBA’s self-insured group health
insurance plan. He was recruited by
SDBIS President Mike Feimer, who
was looking for businessmen bankers
with a vested interest to sit on the
board.
“It has been a learning
experience,” Dreessen said about
overseeing the SDBA’s health plan.
“It has been very educational, and it
is a job that I don’t take lightly.”
As a community banker,
Dreessen said the relationships that
he has formed over the years with
customers, employees and fellow
bankers has been one of the most
enjoyable aspects of his banking
career.
And as long as Merchants
State Bank keeps offering services
competitively priced by outstanding
personnel, he said the bank will
continue to be successful.
“We have been in the same
community for 116 years. We
are part of the community, and
our employees are part of the
community,” Dreessen said. “We
embody everything a community
bank in a small, rural community in
South Dakota should be.” n
South Dakota Banker | December 2015 | www.sdba.com
15
South Dakota Secretary of State
Q3 BUSINESS & ECONOMIC DATA ANALYSIS SUMMARY
SOUTH DAKOTA
In partnership with the
Secretary of State
SECRETARY OF STATE
SHANTEL KREBS
………………….
Third Quarter 2015
Secretary’s Minute: By running efficiently, operating like a business, and meeting statutory compliance, we were able to generate an additional
$1.5 million for a total of nearly $7.5 million turned over to the state’s general fund. A 25% increase in revenue. The Secretary of State is most
likely the first government institution that a new business will come in contact with. It is my belief that first experience with government in South
Dakota will shape the impression of South Dakota's entire business climate, which is why it is so important for us to work together to ensure
South Dakota offers a first-rate experience for everyone in the business and lending community.
Note: Red line
displays actual
seasonally adjusted employment
numbers. Source:
Seasonally adjusted South Dakota
total nonfarm
employees from
the Bureau of
Labor Statistics
and the Labor
Market Information Center, SD
Department of
Labor.
Third Quarter 2015 Economic Highlights







Trade name and Trademark filings slipped in Q3.
SD unemployment rate is ranked the 5th lowest in the U.S. at
3.5%, a decrease of 7.9% over Q2 2015.
Most national economic indicators improved in Q3.
SOUTH DAKOTA
Current Period
Building permits were up by 3.1% in Q3.
Employment growth has continued in Q3.
Building permits were up by 3.1% in Q3.
Although retail sales slightly dropped in Q3, taxable sales grew
by 1.4% in Q3.
3 Months
Prior
Percent Change
over Prior Period
Annual Percent
Change
5 Year
CAGR*
3 .4%
Wealth
Personal Income (millions of dollars)
38,414
39,518
-2 .8%
-1 .3%
Retail Sales, 12 mo . trailing (millions of dollars)
27,451
27,511
-0 .2%
6 .2%
4 .6%
11,014
10,864
1 .4%
3 .3%
4 .9%
9,919
10,283
2 .38
2 .74
431,600
431,000
Taxable Sales, 12 mo . trailing (millions of dollars)
Business Outlays
Annual Wages per Employee
Retail Gasoline Price (dollars per gallon)
-3 .5%
3 .0%
3 .8%
-13 .1%
-23 .0%
-3 .5%
Econom ic Overview
Employment (in thousands)
Unemployment Rate
3 .5%
Initial Jobless Claims
0 .1%
1 .8%
1 .3%
3 .8%
-7 .9%
6 .1%
-6 .5%
174
226
-23 .0%
-2 .8%
-12 .8%
Continuing Jobless Claims
1,021
1,447
-29 .4%
-2 .8%
-17 .3%
Building Permits, Number of Units, 12 mo . trailing
4,510
4,374
3 .1%
-9 .2%
5 .9%
667,678
662,139
0 .8%
-10 .4%
8 .1%
256
251
2 .0%
3 .2%
10
11
-9 .1%
0 .0%
-
7
4
75 .0%
0 .0%
-
1
-100 .0%
-100 .0%
-100 .0%
4
-50 .0%
100 .0%
-12 .9%
Valuation (thousands of dollars), 12 mo . trailing
FHFA Purchase-Only Home Price Index
Total Business Bankruptcy Filings
Chapter 7
Chapter 11
Chapter 13
2
3 .0%
-16 .1%
-15 .2%
So urces: B ureau o f Eco no mic A nalysis, Quarterly P erso nal Inco me (SA )(Q2/15); So uth Dako ta Department o f Revenue (NSA ) (8/15); So uth Dako ta Department o f Labo r and
Regulatio n (SA ) (Q1/15); US Energy Info rmatio n A dministratio n, Weekly Retail Gaso line and Diesel P rices, M idwest (10/19/15); B ureau o f Labo r Statistics, CES (SA ) (8/15); US
Department o f Labo r, Emplo yment and Training A dministratio n (NSA ) (9/27/15); Census B ureau, New P rivately Owned Ho using Units A utho rized (NSA ) (8/15); FHFA P urchaseOnly Ho me P rice Index (SA ) (Q2/15); A dministrative Office o f the US Co urts (Q2/15) . *Co mpo und A nnual Gro wth Rate .
16
1
South Dakota Banker | December 2015 | www.sdba.com
ask the appraiser
BY SHERRY BREN | Executive Director | South Dakota Appraiser Certification Program
Appraisal Reporting: Use and Format Issues
Is a Letter of Transmittal
Part of an Appraisal
Report?
Question: I recently completed an
appraisal report that included a letter of
transmittal as part of my report. Some
of the items required to comply with the
reporting requirements of USPAP appear only in the letter
of transmittal. My client states that a letter of transmittal
is not part of the appraisal report, and these items must
appear within the body of the report to comply with
USPAP. Is my client correct?
Response: No, the client is not correct. Although
a letter of transmittal is not required by USPAP, there
is nothing in USPAP that prohibits making a letter of
transmittal part of the appraisal report. It should be noted
that USPAP does require an appraiser signing any part
of an appraisal report, including a letter of transmittal, to
also sign the certification.
Restricted Appraisal Report and Third
Parties
Question: I have been asked by a client to prepare a
Restricted Appraisal Report that he plans to provide to
another intended user. Does USPAP allow me to use this
report option in such a circumstance?
Response: No. The Comment to Standards Rule 2-2
states:
When the intended users do not include parties other than
the client, a Restricted Appraisal Report may be provided.
In other words, this particular report option may only
be used when the client is the only intended user.
The reason underlying this use restriction is that the
client is assumed to have a sufficient level of knowledge
to enable him or her to understand a report of this type. If
other intended users were to be given such an abbreviated
report, they could easily misunderstand it and potentially
be misled.
Are Instant Messages or Text
Messages Appraisal Reports?
Question: I perform appraisal assignments for a client
who asks to be notified of my final value conclusion via
instant message or text message. Is this communication
to the client an appraisal report that must comply with
USPAP?
Response: Yes, this communication of assignment
results is considered an appraisal report. Instant messages
or text messages are written communications and, for
assignments involving real property, are subject to the
requirements of Standards Rule 2-2.
Oral appraisal reports of real property (where
assignment results are communicated by the spoken
word) are subject to the requirements of Standards Rule
2-4.
Notice: South Dakota does not allow an appraisal
management company to prohibit an appraiser from
reporting the fee paid to the appraiser in the body of the
appraisal report. Violation of ARSD 20:77:07:03 is grounds
for disciplinary action against the appraisal management
company.
Notice: Public information regarding disciplinary
action taken against an appraiser is available upon
written request to the South Dakota Department of Labor
and Regulation’s Appraiser Certification Program at
the address or email below. Include in the request for
information the name of the appraiser and the appraiser’s
city and state of residence. (Disciplinary action may
include denial, suspension, censure, reprimand or
revocation of a certificate by the department.) n
If you have an appraisal related question that you would like to
have answered in the “Ask the Appraiser” column, submit it to
Sherry Bren, executive director of the Appraiser Certification
Program, 308 S. Pierre St., Pierre, SD 57501, fax 605.773.5405
or by email at Sherry.Bren@state.sd.us.
Fed Proposes New Rule on Liquidity Reporting
The Consumer Financial Protection Bureau on Nov.
23 issued a bulletin clarifying the obligations of entities
obtaining customer authorization for preauthorized
electronic funds transfers. To be compliant, all EFTs
must be authorized by the customer in writing—in
either paper or electronic form, as specified by the
E-Sign Act—and the customer must be provided with a
copy of the authorization terms that includes the timing
and amount of the recurring transfers.
The bulletin—issued after the CFPB observed that
“some entities may not fully comply” with Regulation
E requirements on EFT authorizations—also stated
that authorization can be given over the phone if
the customer provides authentication by using a
code or PIN entered on the phone’s keypad, or if the
oral authorization is recorded and retained by the
requesting company and follows the requirements of
the E-Sign Act. n
South Dakota Banker | December 2015 | www.sdba.com
17
ira question & answer
BY JULIE K. ROBINSON, CISP | Manager of Compliance | Convergent Retirement Plan Solutions, LLC
Question: Is the maximum amount
that can be contributed to a Traditional or
Roth IRA increasing for tax year 2016?
However, other dollar amount limitations associated
with IRAs including certain income limits associated with
Traditional IRA deductibility, Roth IRA eligibility and
the tax savers credit have increased slightly because the
Answer:
No.
The
limit
on
annual
index did met the statutory thresholds. These changes are
Is the maximum amount that can be contributed to a Traditional or Roth IRA increasing for tax year contributions
to
Traditional
and
Roth
summarized in the charts below. n
2016? IRAs remains unchanged at $5,500 for
No. The limit on annual contributions to Traditional and Roth IRAs remains unchanged at $5,500 for tax tax year 2016, as the increase in the
Convergent Retirement Plan Solutions, LLC is the SDBA’s
year 2016, as the increase in the cost‐of‐living index did not meet the statutory threshold that trigges an cost-of-living index did not meet the statutory threshold
endorsed IRA provider. If you have an IRA or retirement
adjustment. As well, the additional catch‐up contribution limit for individuals aged 50 and over remains that trigges
an adjustment. As well, the additional catchplan related question that you would like to have answered,
at $1,000 as it is not subject to an annual cost‐of‐living adjustment. However, other dollar amount up contribution
limit for individuals aged 50 and over
submit it to Julie K. Robinson, CISP, manager of compliance,
remains atlimitations associated with IRAs including certain income limits associated with Traditional IRA $1,000 as it is not subject to an annual cost-ofConvergent Retirement Plan Solutions, at Julie.Robinson@
Convergentrps.com.
living adjustment.
deductibility, Roth IRA eligibility and the tax savers credit have increased slightly because the index did met the statutory thresholds. These changes are summarized in the charts below. Traditional IRA Contribution Deduction Modified Adjusted Gross Income (MAGI) Phase‐Out Ranges Single, Active Participant $61,000 ‐ $71,000 (2016) $61,000 ‐ $71,000 (2015) Married, Active Participant, Filing a Joint Federal $98,000 ‐ $118,000 (2016) Income Tax Return $98,000 ‐ $118,000 (2015) Married, Active Participant, Filing a Separate $0 ‐ $10,000 (2016 and 2015) Federal Income Tax Return Spouse is an Active Participant $184,000 ‐ $194,000 (2016) $183,000 ‐ $193,000 (2015) Roth IRA Contribution Eligibility Modified Adjusted Gross Income (MAGI) Phase‐Out Ranges Single Individuals $117,000 ‐ $132,000 (2016) $116,000 ‐ $131,000 (2015) Married, Filing a Joint Federal Income Tax Return $184,000 ‐ $194,000 (2016) $183,000 ‐ $193,000 (2015) Married, Filing a Separate Income Tax Return $0 ‐ $10,000 (2016 and 2015) Saver’s Tax Credit Adjusted Gross Income ‐ 2016 Joint Return Head of Household All Other Cases Over Not Over Over Not Over Over Not Over Applicable Percentage $0 $37,000 $0 $27,750 $0 $18,500 50% $37,000 $40,000 $27,750 $30,000 $18,500 $20,000 20% $40,000 $61,500 $30,000 $46,125 $20,000 $30,750 10% $61,500 $46,125 $30,750 0% Saver’s Tax Credit Adjusted Gross Income ‐ 2015 Joint Return Head of Household All Other Cases Over Not Over Over Not Over Over Not Over Applicable Percentage $0 $36,500 $0 $27,375 $0 $18,250 50% $36,500 $39,500 $27,375 $29,625 $18,250 $19,750 20% $39,500 $61,000 $29,625 $45,750 $19.750 $30,500 10% $61,000 $45,750 $30,500 0% 18
South Dakota Banker | December 2015 | www.sdba.com
bank notes
Top SDHDA Loan Officers Earn Recognition
T
he South Dakota Housing Development Authority
(SDHDA) recognized the seven top loan officers for
its First-time Homebuyer loans for 2015.
The top loan officers are: Ryan Spellerberg, First
PREMIER Bank, Sioux Falls, Area 1; Melanie Hodorff,
Great Western Bank, Watertown, Area 2; Connie Bridges,
First Bank & Trust, Brookings, Area 3; Lori Norby,
CU Mortgage Direct, Madison, Area 4; Valerie Engels,
Reliabank Dakota, Watertown, Area 5; Ben Nelson,
American Bank & Trust, Huron, Area 6; and Jeremy
Huber, Plains Commerce Bank, Sioux Falls, Area 7.
Together, the seven contributed more than $24.8
million in First-time Homebuyer loans in 12 months.
“At SDHDA, loan officers are critical to the success
of our programs,” said Brent Adney, director of
homeownership programs. “The Loan Officer Recognition
program is a small token from SDHDA in appreciation of
all the work they do for this organization and their strong
commitment to providing affordable homeownership
opportunities for South Dakotans.”
The SDHDA Loan Officer Recognition Program is
an annual honor designed to recognize loan officers
who consistently promote affordable housing by
From left are Ryan Spellerberg, Melanie Hodorff, Connie
Bridges, Lori Norby, Valerie Engels and Jeremy Huber. Not
pictured is Ben Nelson.
offering SDHDA programs. Loan officers from SDHDA
participating lenders were divided into seven geographic
areas by county population base and the number of
SDHDA loans purchased.
In addition, SDHDA also honored the top five lending
institutions within the state—Plains Commerce Bank, First
Bank & Trust, Home Federal Bank, Sioux Falls Federal
Credit Union and First PREMIER Bank. n
Happy
Holidays
from the
South Dakota Bankers Association
South Dakota Banker | December 2015 | www.sdba.com
19
bank notes
Dacotah Bank Promotes Two
Mortgage Banking Employees
Two employees in the mortgage banking department
at Dacotah Bank in Aberdeen have been promoted to
management positions. Mandy Sizer has been promoted
to mortgage underwriting manager, and Cathy Papke has
been promoted to mortgage administration supervisor.
Sizer’s job duties include
management of Dacotah Bank’s
residential mortgage underwriting staff;
staying informed of current practices,
investor guidelines and banking
regulations relating to secondary
market loans; and assisting mortgage
bankers in qualifying customers for
Mandy Sizer
mortgage loans. Sizer has been in
banking for 12 years and with Dacotah Bank for 10 years.
“Mandy is an asset to the mortgage team with her
diligence in comprehending the underwriting criteria for
the secondary market and the multiple requirements that
the industry requires,” said Peggy Lunzman, director of
mortgage banking.
Papke’s job duties include the
supervision of mortgage specialists
as they review appraisals to comply
with investor and industry standards;
assisting in the preparation of internal
evaluations for properties that do not
require appraisals; and providing
support to mortgage assistants
Cathy Papke
throughout Dacotah territory to deliver
a consistent product to the bank’s mortgage customers.
Papke has been in banking for 25 years and has been with
Dacotah Bank for five years.
“Dacotah Bank is fortunate to have Cathy and the
many years of experience in the mortgage industry she
can offer,” Lunzman said. “She is very customer focused.”
Papke serves on the Hub Area Habitat for Humanity
Board of Directors. For the last six years, she has
coordinated the Dave Ramsey Financial Peace Course
at St. Mary’s Church. She received the Board of Realtors
Affiliate Award in 2005. n
Vilhauer Promoted to Business Banker
Jared Vilhauer has been promoted
to business banker at Dacotah Bank
and will be responsible for originating,
underwriting and closing business loans
along with client relationship curation.
“Jared is going to be a great
addition to our business banking
team in Sioux Falls with his business
Jared Vilhauer
knowledge and his desire to serve
customers,” said Matt Smith, senior business banker and
Vilhauer’s supervisor.
Vilhauer was hired by Dacotah Bank in 2014 and has
20
been working as a credit risk manager for more than a
year. He was previously a financial institution examiner
with the South Dakota Division of Banking. He is a
graduate of Northern State University with a bachelor of
science degree in banking and financial services.
Vilhauer will work out of the Dacotah Bank at Phillips
Centre in Sioux Falls. n
Dacotah Bank Insurance Producer
Completes Certification
Anthony Fike, who began working
at Dacotah Bank in Lemmon earlier this
year, has completed the Agribusiness
and Farm Insurance Specialist (AFIS)
certification.
The AFIS program is a continuing
education curriculum focusing on the
insurance and risk management needs
Anthony Fike
of agribusiness and farm operations.
The core curriculum for the AFIS program consists of
five parts. Classes include farm liability and property,
ag pollution, livestock insurance, crop insurance and
workers’ compensation.
“This is a great accomplishment in insurance training
and truly sets him apart from other insurance agents in
this line of business,” said Tom Heisler, Dacotah Bank’s
senior VP insurance. “Anthony took it upon himself to
complete all of the courses in just over 30 days.” n
SD Financial Institutions Receive More
Than $1.5 Million in Grants
More than 75 homes will be built or improved in
South Dakota as a result of the 2015 Federal Home
Loan Bank of Des Moines (FHLB Des Moines) Strong
Communities Fund and its Competitive Affordable
Housing Program. The bank recently awarded $19.3
million in housing grants to projects located within its
district, consisting of 13 states and three U.S. Pacific
territories. Three South Dakota FHLB Des Moines member
financial institutions were among the funding recipients
and received more than $1.5 million in housing grants.
●● Dacotah Bank (sponsored by Dakota Nation
Housing Development Corp., Sisseton): $480,000
●● Dacotah Bank (sponsored by Sisseton Wahpeton
Housing Authority, Sisseton): $500,000
●● First Bank & Trust (sponsored by ADVANCE,
Brookings): $240,000
●● First National Bank (sponsored by Thunder
Valley CDC, Porcupine): $60,000 and $250,500
FHLB Des Moines commits 10 percent of its annual
net income to the development of affordable housing. As
part of the bank’s Strong Communities Fund, the 2015
Competitive Affordable Housing Program will bring
quality housing to both urban and rural communities. n
South Dakota Banker | December 2015 | www.sdba.com
classifieds
Business Development Officer,
BankWest, Pierre, S.D.
BankWest, Inc. is looking for a business
development officer to serve the financial
needs of personal, agriculture and
commercial customers by providing
deposits and loan services, making
referrals for insurance, investment,
consumer retail and trust services, and
working with the BankWest team to
enhance customer relationships. Degree
in related field or equivalent experience is
required. Successful applicant must pass
pre-employment screening. BankWest
is recognized as a market leader in
customer care, community reinvestment
and depth of services. If you’re looking
for a fulfilling career with a winning
team, see full job description and apply
at www.bankwest-sd.com, contact your
local Career Center, or BankWest at
800.253.0362. All qualified applicants will
receive consideration for employment
without regard to race, color, religion,
sex, sexual orientation, gender identity,
or national origin. n
Credit Analyst, Black Hills
Community Bank, Rapid City,
S.D.
Black Hills Community Bank is seeking a
credit analyst to support the commercial
lending staff for a growing community
bank, primarily responsible for analyzing
and preparing credit presentations,
providing loan structure guidance
and recommendations. Candidate will
assist in monitoring and servicing
loan portfolio and will be relied upon
for risk identification and mitigation.
Proficiency with MS Word and Excel is
a must. A minimum of one year prior
credit analysis experience is preferred.
Send resume to: Black Hills Community
Bank, 840 Mt Rushmore Road, Rapid
City, SD, 57701 or email to melissah@
bhcbank.com. Black Hills Community
Bank maintains high standard of core
values, positive attitude, and character
of all employees offering a professional
work environment. Benefits include
medical, dental and vision insurance,
company-paid long-term disability
benefits, life/AD&D coverage, 401K
plan, and bank holidays. Resumes should
include salary/earnings history. EQUAL
OPPORTUNITY EMPLOYER n
Escrow Officer/Closer,
BankWest, Fort Pierre, S.D.
BankWest, Inc., is seeking an escrow
officer/closer to work in conjunction
with real estate agents, mortgage loan
officers, attorneys and bankers to prepare
loan documents, clear titles and close
estate transactions. Duties include:
facilitating fund transfers for buyers,
sellers and lenders; ensuring all legal
and financial obligations are met prior to
fund disbursement; preparing documents
for the issuance of final title insurance
policies; initiating business development
strategies and providing exceptional
customer service. Degree in related field
or equivalent experience is preferred.
The successful applicant must pass preemployment screening. Excellent salary
and benefits. BankWest is recognized
as a market leader in customer care,
community re-investment and depth of
services. If you’re looking for a fulfilling
career with a winning team, see full job
description and apply at www.bankwestsd.com, contact your local Career
Center, or call BankWest at 800.253.0362.
All qualified applicants will receive
consideration for employment without
regard to race, color, religion, sex, sexual
orientation, gender identity, or national
origin. n
Retail Manager, First Bank &
Trust, Sioux Falls, S.D.
First Bank & Trust is looking for an
individual to fill a retail manager
position. This person should have a
minimum of a bachelor’s degree and
five years of related experience or the
equivalent. This position’s responsibilities
include: monitor, coordinate and
manage the delivery of retail products
throughout the bank in an effective and
profitable manner. Develop new and
modify existing products which meet the
overall objectives of the bank. For more
information and to apply online, visit our
website at www.bankeasy.com. n
Senior Business Banker, Home
Federal Bank, Sioux Falls, S.D.
Home Federal Bank has an excellent
opportunity for a senior business
banker for our Sioux Falls market.
Applicants must have at least five years
of commercial banking experience as
well as five years business development
experience, bachelor’s degree or
equivalent work experience and credit
training. This position would be
responsible to establish, develop and
expand long-term business relationships
with customers while providing delivery
of the bank products and services. Home
Federal Bank offers personal banking,
business banking, ag lending, home
loans, trust and asset management, and
investments. Our locations include 23
offices throughout eastern South Dakota,
Minnesota and North Dakota. We employ
approximately 300 people throughout
the region. Home Federal Bank offers
a comprehensive compensation and
benefits package. For confidential
consideration, please apply online under
the Career Opportunities section at
www.homefederal.com. All qualified
applicants will receive consideration
for employment without regard to race,
color, religion, sex, sexual orientation,
gender identity, or national origin. n
System Support Specialist,
BankWest, Pierre, S.D.
BankWest, Inc., is seeking a systems
support specialist to provide software,
hardware, communications system and
network problem-resolution to enterprise
technology users. The successful
candidate must have the ability to
perform question/problem diagnosis
and guidance, troubleshoot issues,
provide end-user training as needed and
defer more complex issues to network
and communications administrators.
Successful applicant must also pass
pre-employment screening. BankWest
is recognized as a market leader in
customer care, community reinvestment
and depth of services. If you’re looking
for a fulfilling career with a winning
team, see full job description and apply
at www.bankwest-sd.com, contact your
local Career Center or call BankWest at
800.253.0362. All qualified applicants will
receive consideration for employment
without regard to race, color, religion,
sex, sexual orientation, gender identity,
or national origin. n
If you have a job opening at your bank or something to sell, send your classified listing via email to ademers@sdba.com and we will post it on
the SDBA website, print it in one issue of the South Dakota Banker Magazine and include it in the SDBA eNews. This service is free to member
banks and associate members (200 word limit). The fee is $50 for nonmembers. Questions, contact Alisa DeMers at 800.726.7322.
South Dakota Banker | December 2015 | www.sdba.com
21
education calendar
Seminars and Conferences
IRA Basics Seminar
Dec. 16, 2015: Ramkota, Sioux Falls
2016 SDBA State Legislative Day
Feb. 10, 2016: Ramkota RiverCentre, Pierre
Bank Management Conference
Feb. 12-13, 2016: Westin Kierland Resort & Spa:
Scottsdale, Ariz.
zz Dec. 10, 2015: BSA Red Flags for Money Laundering
zz Dec. 14, 2015: New Federal Rules Target Student Bank
Accounts—Top 10 Issues
zz Dec. 15, 2015: Using Personal Tax Returns for Global
Cashflow: What’s Cashflow and What Isn’t
zz Dec. 15, 2015: Opening Fiduciary Accounts
IRA Update Seminar
Feb. 18, 2016: Ramkota, Sioux Falls
zz Dec. 16, 2015: The Loan Review Process: Important
Steps
ABA Government Relations Summit
March 14-16, 2016: Washington Marriott Marquis,
Washington, D.C.
zz Dec. 16, 2015: HMDA Reporting Mistakes
2016 SDBA Agricultural Credit Conference
April 13-15, 2016: Ramkota RiverCentre, Pierre
zz Dec. 17, 2015: IRS Reporting
zz Dec. 17, 2015: Compliance Perspectives
zz Dec. 18, 2015: BSA Year End Wrap Up
Tri-State Trust Conference
April 25-27, 2016: Hilton Garden Inn, Fargo, N.D.
Banking Schools
IRA Basics Seminar
May 3, 2016: Ramkota, Sioux Falls
Dakota School of Lending Principles
March 29-April 1, 2016: Bismarck, N.D.
2016 NDBA/SDBA Annual Convention
June 12-14, 2016: Ramkota Hotel, Bismarck, N.D.
GSB Human Resource Management School
April 10-15, 2016: Madison, Wis.
2016 National School for Experienced Ag Lenders
June 20-23, 2016: Black Hills State University,
Spearfish, S.D.
GSB Bank Technology Management School
April 17-22, 2016: Madison, Wis.
2016 SDBA Bank Technology Conference
Sept. 20-21, 2016: Sioux Falls
December Webinars
GSB Financial Managers School
May 9-13, 2016: Amherst, Ma.
Dakota School of Banking
June 19-24, 2016: University of Jamestown, Jamestown,
N.D.
The following are available as live webinars and/or
recorded seminars. For more information and additional
webinars, visit www.sdba.com/webinars.
2016 National School for Experienced Ag Lenders
June 20-23, 2016, Black Hills State University,
Spearfish, S.D.
zz Dec. 2, 2015: Excel Explained: Introduction to
Spreadsheets
Graduate School of Banking at Colorado
July 17-29, 2016: University of Colorado in Boulder
zz Dec. 2, 2015: Reg E—How Expensive Is a Compliance
Mistake
Graduate School of Banking at Wisconsin
July 31-Aug. 12, 2016: University of WisconsinMadison
zz Dec. 3, 2015: Notary Public
GSB Financial Managers School
Sept. 18-23, 2016: Madison, Wis.
zz Dec. 3, 2015: Appraisals
zz Dec. 8, 2015: New Business Account Interview
zz Dec. 9, 2015: Understanding Commercial Loan
Documentation
zz Dec. 9, 2015: UCC 3 and Four Issues for Tellers
zz Dec. 10, 2015: Accounting Principles for Lenders
22
GSB Bank Technology Security School
Oct. 23-28, 2016: Madison, Wis.
Program and registration information is available six to
eight weeks before each conference. For complete registration
information, visit www.sdba.com.
South Dakota Banker | December 2015 | www.sdba.com
Beyond the Fundamentals
2016 National School
for Experienced Ag Lenders
June 20-23, 2016
Black Hills State University
Spearfish, South Dakota
This school will be limited to 60 students. Visit www.sdba.com.
The National School for Experienced Ag Lenders targets ag lenders with a
good knowledge of financial analysis in ag lending who desire further training
in analyzing and troubleshooting more complex and problem credits.
It is rare that a school has this caliber of instructors, including ag guru Dr. Dave
Kohl and three national award winners for their contributions to the ag industry.
“A course like this cannot be learned through an online class. The group
discussion and on-site instructors simply cannot be replaced. The depth of
the case study was unmatched. Topics and instructors were excellent.”
– Luke Moulton, Unity Bank, Rush City, Minn.
South Dakota Banker | November 2015 | www.sdba.com
23
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