JulyAugust2019

table of CONTENTS The Chair’s Message MBA News Published six times a year, MBA News is the official 4 The Call to Serve publication of the MBA. Articles focus exclusively on the commercial banking community in Minnesota. Cover Focus: Annual Report Eric Hauth, Managing Editor 952-857-2605 • [email protected] 15 2018 MBA Annual Report Questions or comments about MBA News should be directed to the Managing Editor, Eric Hauth. Features MBA Staff 7 Meet the MBA Leadership Academy – Class of 2020 8 LIBOR to SOFR: What Community Banks Should Know to Make a Executive Successful Transition • Joe Witt, President/CEO 10 Protecting Your Institution From Check Fraud: Three Emerging New Trends • Roy Terwilliger, Director of Member Relations 10 September is Now Minnesota Bankers Community Impact Month • Kim Philipson, Senior Executive & Education Coordinator 11 SEP Plans: Another Connection to Small Employers Education & Communications 12 Shattered Myths of Banking • Eric Hauth, Director, Communications and Education 13 Six Questions for David Krause – MBA Board Chair • Kim Philipson, Senior Executive & Education Coordinator 29 Thank You to Our Outgoing Board Members • Chris Harrison, Senior Education Coordinator 30 Self-Service Core Integration is Changing Retail Banking • Renee Lawler, Education & Marketing Coordinator 31 Congratulations to the MBA Leadership Academy Class of 2019! • Mary Henriksen, Registrar 33 2019 Pioneer Bankers • Jean Hendrickson, Website Coordinator & Desktop Publisher Departments 27 Ask the Agent Finance & Group Insurance 34 Welcome New Associate Member • Dan Melcher, Finance Director/CFO 6 Calendar of Events 34 Index of Advertisements • Brent Stokesbary, Controller 14 Bankers On the Move • Antonina Drozdov, Staff Accountant 26 Counsel’s Corner • Stacy Meyer, Group Insurance Manager 27 Compliance Query • Connie Mack, Senior Plan Administrator/Insurance Agent • Barbara Markus, Senior Plan Administrator MBA News is printed on 30% recycled content paper. Minnesota Bankers Association Human Resources 8050 Washington Avenue South, Suite 150, Eden Prairie, MN 55344 • Diane Brower, Director of Human Resources • Cindy Meyer, Database Administrator 952-835-3900 • Kathie Babcock, Receptionist/Graphic Designer MN Toll Free 866-835-3900 • Martha Kooiman, Receptionist Fax 952-896-1100 Legal/Compliance/Government Relations [email protected] • Tess Rice, General Counsel/Director of Government www.minnbankers.com Relations • Michael Thro, Associate Counsel MBA News is published six times per year by the Minnesota Bankers Association, • Terry Tiller, Legal Products & Services Coordinator 8050 Washington Avenue South, Suite 150, Eden Prairie, MN 55344. • Therese Kuvaas, Government Relations Manager © 2019, Minnesota Bankers Association. All rights reserved. No part of this newsletter may be reproduced in any form or incorporated into any information retrieval system without the MBA Consulting Group written permission of the copyright owner. • Tom Boswell-Healey, Associate Counsel/ Senior Compliance Consultant • Jay Tambornino, IT Consultant Midwest Bankers Insurance Services • Dan Melcher, Chief Financial Manager • Jeff Otteson, Vice President - Sales • Adam Dawson, Regional Sales Manager • Yvonne Anderson, Account Manager • Melissa Noonan, Account Manager • Becky Gatzke, Insurance Assistant www.minnbankers.com The official publication of the Minnesota Bankers Association 3

THE CHAIR’S MESSAGE Our association has developed and continues to enhance a complex and The Call to Serve diverse education program that provides learning opportunities for our state’s banks David Krause that simply aren’t available from other CEO sources. Those opportunities, coupled Pioneer Bank, St. James with bank and employee products and services essential for our banks to compete As I prepare for my year of service to to serve in a position to help farmers, effectively, bring immeasurable value to you as the MBA Chair, I want to businesses and neighbors accomplish your MBA membership. But that’s not all. first thank my predecessor, Mark Miedtke, their goals. I also want to thank my entire While we are pleased for the passage of for his service. With his leadership, the family for their support. They mean the S. 2155, real regulatory relief is still needed Minnesota Bankers Association has world to me. and our state and federal government positively impacted bank regulations need to act to allow banks to continue and legislation, while improving the Last but not least, I’m very fortunate for to provide the banking services our reputation and image of bankers across the great team at our bank, Pioneer Bank, farms, businesses and consumers need. this state. I’m struck by the good work and for all they do to help our customers and Resolving state and federal conflicts on significant commitment that Mark and community thrive. cannabis banking, promoting further study those chairs before me have given to this of CECL, and leveling the playing field association and our industry. Their efforts, The banking industry in Minnesota has a with credit unions and the Farm Credit along with the boards that served with long and proud heritage. While mergers and System are among the opportunities before them, have improved our industry and acquisitions have changed the landscape us. Through the MBA’s Government made the Minnesota Bankers Association of Minnesota banking over recent years, Relations Council and events like Bank the fine group it is today. Thank you for Minnesota remains a leader in terms of Day at the Capitol and our Washington your service. the number of banks in our state. The trip, state and national issues important to It’s because of the good work of the Chairs opportunities present in this state for our you are at the forefront of this association’s before me that I am so looking forward to industry are many. Technology, regulation, work and because of the MBA’s work, you my upcoming year with the MBA. But to legislation, competition, politics and have a real voice that is heard in St. Paul make a commitment like this, the support climate all present daily opportunities for and in Washington. of others is necessary as well. I want to banks across our state and throughout the When I was able to address the many recognize some individuals who have country to make a positive impact on the bankers at the MBA’s recent Annual helped put me in a position to serve our lives of every customer and every neighbor. Summit in Minneapolis, I saw the future of great Minnesota bankers. First, I want Whether it’s innovative financial products our industry, the future of our state and the to thank my wife Carolyn. Our 34 years and services, value driven relationships future of our country. Yet for every one of together match exactly the time I’ve spent or community development initiatives, them and you, there are dozens of bankers in this industry. Her unwavering support, our industry has the opportunity and the who have yet to become engaged in their love and friendship have made it possible responsibility to make a difference. industry beyond their bank. I challenge each of you to reach out to the bankers in your organization and in your network to become involved. The MBA has so many opportunities – educational programming, government relations, and leadership among them. By becoming involved, you’ll not only make yourself a better banker, but you’ll improve the quality of life for those in your community. 2019/20 BOARD OF DIRECTORS Immediate Past Chair District 1 Chair Mark Miedtke, President Chris Ryan, President & CEO Citizens State Bank, Hayfield First Security Bank, Byron David Krause, CEO Pioneer Bank, St. James President/CEO District 2 Vice Chair/Treasurer Joe Witt, President/CEO Mike Finley, President Minnesota Bankers Association Janesville State Bank Andy Noll, President First Farmers & Merchants Bank, Fairmont 4 MBA News | July/August 2019 | www.minnbankers.com

I am so proud to be a banker and proud Bank Financial to be part of an organization whose very Officers Conference purpose is to make all of our lives better and more fulfilling. September 11, 2019 Thank you for allowing me to serve you and thank you for your important role Marriot Minneapolis West Hotel, in improving the lives of those in your St. Louis Park community.  David Krause, MBA Chair Trusted, experienced Loan Documentation legal services for SBA Compliance financial institutions. Collections Foreclosures Loan Restructures & Workouts Litigation Lender Rights & Remedies Contact Nick Vivian for more information. Call 651-439-2878 or Email [email protected] District 3 District 5 At-Large Andy Schornack, President & CEO Kirsten Eggena, President Bill Doran, Vice President & Relationship Manager Flagship Bank Minnesota Pine River State Bank U.S. Bank NA, St. Paul District 4 District 6 At-Large Jon Hall, Chief Credit Officer Del Mari Runck, Chief Operating Officer Kelly Gosz, District Manager Kensington Bank Neighborhood National Bank, Alexandria Wells Fargo Bank Minnesota, NA, Golden Valley TheTChheaCmhpaiomnpfiornMfoirnMneisnonteasBotaanBkearnskers 5

CALENDAR OF EVENTS JULY OCTOBER Videos 11 1 • NEW! Actions Your Ag Bank Can Flood Insurance: Compliance Issues (webinar) Hedging Topics for Ag Lenders • Eden Prairie Take Today 15 7-11 Women in Banking Conference • St. Louis Park Commercial Lending School • Grand Rapids • NEW! Properly Renewing Ag Loans in 16 8 a Troubled Economy New BSA Officer Training (webinar) Stepping Up To Supervisor • Eden Prairie 22-26 9 • NEW! Properly Servicing and CRCM Exam Prep • Chicago, IL Making Effective Business Development Calls Liquidating Distressed FSA Loans 25 • Eden Prairie Online Deposit Account Opening (webinar) 15 • NEW! Protecting Agricultural Collateral 31 - August 2 Bank Security Management Seminar • NEW! Successfully Managing Troubled WBA Agricultural Lending School • Bloomington • Wausau, WI 16 Livestock Credits Business Loan Doc 1: Non-Collateral Issues Free Senior Fraud Videos: AUGUST • Eden Prairie • Financial Professionals: On the 22-23 7 Advanced Compliance Workshop Frontlines in the Fight Against Senior HSA Workshop • Eden Prairie • Bloomington Financial Exploitation 13 22-23 • Fraud Watch: Current Fraud Trends and Do’s and Don’ts on Power of Attorney Principles of Banking • Eden Prairie Behaviors Documents (webinar) 24 • Protection of Vulnerable Adults: 14 Cybersecurity Day • Eden Prairie Knowing What, When and How to Next Generation Bankers Conference 29 Report Suspected Exploitation • St. Louis Park Bank Directors Workshop • St. Louis Park 19 30 Online Seminars Bank Marketers Peer Group Meeting Business Loan Doc 2: Collateral Issues Look for upcoming GSB classes at • Eden Prairie • Eden Prairie www.gsb.org. 20 Effectively Navigating Through Farmer NOVEMBER ABA Self Paced Bankruptcies • Eden Prairie Online Classes 21 4 ERM for Bankers: Framework, Strategy, and Accounting for Bankers • Eden Prairie • ABA Certificate in Business & Execution • Eden Prairie 19 Commercial Lending 22 Introduction to Global Cash Flow Loan Assistant Seminar • Eden Prairie • Eden Prairie • Ethical Issues for Bankers 29 20 • Effective Referrals What to Do When a Customer Dies (webinar) Enterprise Risk Management Series • Written Communication • Eden Prairie • ABA Bank Teller Certificate SEPTEMBER 25 Dr. Kohl webinar For updates on all of our Education 9 programs go to minnbankers.com, Residential Construction Lending (webinar) DECEMBER click on “Education,” and then “MBA 10 Education Event List.” Train-the-Trainer Mini Boot Camp 2-6 • Eden Prairie Farm Service Agency Workshops 11 • Various Locations Bank Financial Management Conference 16 • St. Louis Park Dr. Kohl webinar 17 Journey Mapping • Eden Prairie 18 HR Networking Roundtable • Eden Prairie 6 MBA News | July/August 2019 | www.minnbankers.com

EDUCATION NEWS Meet the MBA Leadership Development Academy Class of 2020 Christine Albrecht Kristi Doyea Craig Lind Sunrise Banks, N.A. First National Bank Deerwood Bank Saint Paul Bemidji Mendota Heights Daniel B. Bakken Kirsten E. Eggena Molly Merrill Citizens Independent Bank Pine River State Bank Lake Central Bank Saint Louis Park Annandale Stephanie Behm Traver W. Gahler Heather Plumski Sunrise Banks, N.A. Northview Bank Stearns Bank N.A. Saint Paul Sandstone Saint Cloud Christina Cavallin Ryan E. Gandrud Dana L. Scammahorn American Bank of the Eagle Bank Frandsen Bank & Trust North Glenwood Baxter Grand Rapids Tami M. Gruenhagen Kevin Steffensmeier Jenni J. Cline Northern State Bank RiverWood Bank Neighborhood National Bank Virginia Monticello Aitkin Nathan J. Dahl Josh Hofer Mark J. Vis American Bank of the North Stearns Bank N.A. First State Bank Southwest Mountain Iron Saint Cloud Rushmore Victoria Dale Joel Isenberger Bryan D. Wellner Neighborhood National Bank BankCherokee Sentry Bank Alexandria Saint Paul Saint Joseph Tanya Danielson Craig F. Koep Jacob Williams Sherburne State Bank Midwest Bank Farmers & Merchants Becker Detroit Lakes Savings Bank Vadnais Heights We congratulate these bankers for their commitment to excellence and Minnesota Bankers Association participating in the third cohort of this important new MBA program. If you are, or know of, a banker interested in experiencing this world class training program DLAEECVAAEDLDEORPEMSMHENIYPT in 2020-2021, contact Eric Hauth, Director of Education & Communications, at [email protected] or 952-857-2605. The MBA will begin accepting applications for the fourth cohort this fall. The Champion for Minnesota Bankers 7

LIBOR to SOFR: What Community Banks Should Know to Make a Successful Transition By Earl Charneske The London Interbank Offered Rate (LIBOR) has been used it’s important to follow the progress and make the necessary for over three decades as the global standard benchmark for adjustments. pricing all types of financial transactions, from small business loans The Expected Transitional Impact to globally syndicated derivative structures. Now, that will soon Due to the difference in calculation and sources between SOFR be changing and financial institutions will need to adjust their and LIBOR, credit spread adjustments will be necessary to loans to a new benchmark, the Secured Overnight Financing maintain the stability of transaction economics. In determining Rate (SOFR). So, what is involved in this transition and how can the necessary credit spread adjustment, it is very important to banks minimize the potential risks? ensure consistency of the existing economics. The adjustment The Background of LIBOR can be determined from a historical mean/median of the SOFR Since its launch over three decades ago, LIBOR has been the vs LIBOR index spread, or from the basis difference in fair values market standard benchmark for pricing all types of financial using the respective SOFR and LIBOR yield curves at transition. transactions; from small business loans to globally syndicated Key Steps Community Banks Can Take derivative structures. It represents the average of money market The good news for bankers is that we still have a few years before funding rates surveyed from about 16 leading banks in London. a full-fledged transition. Yet, there are some potential challenges However, following banking reforms instituted after the 2008 you may need to address. financial crisis, money market interbank funding activity • Watch for higher levels of contract variation and adjust your experienced a sharp and sustained decrease in activity. As such, the surveyed rates underpinning LIBOR have increasingly relied on contracts, especially new commercial loans, according to the “expert judgment” as opposed to actual transactions. This reliance appropriate index. on fewer underlying transactions has created growing concern • A ddress borrowers’ concerns over the loss of visibility into about LIBOR as an accurate reference for trillions of dollars of their cash flows with this change. transactions tied to LIBOR. The concern has accelerated over • Fine-tune pricing, terms and disclosures for any new LIBOR- recent years, as the financial institutions providing the surveyed linked lending over a period of time. rates will no longer be required to do so after 2021. • P erform periodic assessments of economic impacts and spread What is SOFR? adjustments necessary to preserve transaction economics. Responding to these concerns, the ARRC established the Secured • Track the SOFR vs. LIBOR relationship as you manage your Overnight Financing Rate (SOFR) as the replacement index for existing loans and underwrite new transactions. USD LIBOR in 2018. The FRBNY then launched publication Even if the transition to SOFR doesn’t need to be completed of SOFR on April 3, 2018 at 1.80%. The FRBNY publishes the until 2021, steps need to be taken long before then to ensure index daily by 8:00 a.m. Eastern Time. the integrity of your loan portfolios. Transitioning from LIBOR So, what is SOFR? SOFR is a broad-based measure of the cost to SOFR does not need to be difficult. Yet, it is important to of borrowing cash overnight, collateralized by Treasury securities.i understand the nuances involved.  As SOFR is a secured rate comprised of essentially “risk-free” For more information on rates and the transition to SOFR, contact funding, it will tend to be lower in rate versus LIBOR, which Earl Charneske. reflects interbank funding credit risk in its rate. At SOFR’s launch, ________________________________________________ the launch rate was 8 basis points lower vs. 1-month LIBOR and i Composed of tri-party repo, General Collateral Finance (GCF) 12 basis points higher vs. overnight U.S. Fed Funds. repo and bilateral Treasury repo cleared through the Fixed Income SOFR Compared to LIBOR Clearing Corporation (FICC) As a secured rate, during periods of credit stress, SOFR may not exhibit the wild rate swings observed with LIBOR. This absence of Earl Charneske a credit risk element will therefore have to be taken into account SVP, Regional Manager | PCBB when benchmarking to SOFR. On balance, SOFR should track 847-531-0890 well with the general direction of interest rates, as it is highly [email protected] correlated to existing LIBOR and Fed Funds benchmarks. pcbb.com The Estimated Timeline for SOFR Given the enormity of existing transactions tied to LIBOR (over $200 trillion in the interest rate swap market alone), the transition from LIBOR to SOFR is expected to be carefully implemented, including key milestones, before widespread adoption. As such, 8 MBA News | July/August 2019 | www.minnbankers.com

The Champion for Minnesota Bankers 9

Protecting Your Institution From Check Fraud: Three Emerging New Trends By Jill Cacic When was the last time you wrote a check? We’ll wait… so give yourselves a pat on the back!) The 2017 AFP Payments While you may not have written a check in a while, Fraud and Control Survey reported 75 percent of financial businesses still rely on checks as one of their top forms of payment institutions experienced check fraud in 2016, up from previous and are a lucrative source for check fraud. Those accounts tend years. Over 31 percent of those institutions said they experienced to have more money and/or higher limits than personal accounts. over 15 incidents of check fraud. There is also usually more than one signee assigned to those One would think as technology improves so would the accounts, making them more susceptible to fraud. Additionally, safeguarding features around monetary transactions. Mobile the access to new technology to create realistic counterfeit checks depositing of checks, for example, has actually made check fraud continues to make check fraud one of the largest forms of fraud in easier. A growing fraud issue is duplicate deposits of those checks. the world. (Now would also be a good time to look for your check Fraudsters cash the same check twice – once via mobile deposit, book. Fraudsters don’t need to make a counterfeit version if they and once in the bank branch months later, making off with have the real thing.) double the money if institutions aren’t vigilant. As mentioned According to the ABA’s 2017 Deposit Account Fraud Survey Report, before, these scammers are also using high-tech devices to their banks stopped $17 billion in fraudulent transactions in 2016, 35 advantage, printing fraudulent checks from top-of-the-line percent of which were check fraud. (Financial institutions also printers making them look legit to the untrained eye. stopped almost $6 billion of that $17 billion from getting paid out, Check Fraud continued on page 28 September is Now Minnesota Bankers Community Impact Month The MBA is pleased to announce that we’ve expanded this important campaign from one week to the entire month of September! This is your opportunity to join forces with banks throughout Minnesota and help put a spotlight on the vital role of banks in our communities. Let’s make an even bigger impact in 2019! To register and for details on the campaign, go to www.minnbankers.com/communityimpact. For more information, contact Chris Harrison at [email protected]. 10 MBA News | July/August 2019 | www.minnbankers.com

OTHER FEATURES SEP Plans: Another Connection to Small Employers By Steve Christenson Community banks have a strong success rate when it comes These plans offer many of the same advantages of other plans, but to helping local employers build strong foundations for their are easier and less expensive to maintain profit sharing or 401(k) businesses. Banks provide small business loans to allow owners plans. SEP plans benefit both employers and employees in the to expand and grow. The banks provide commercial checking following ways. accounts so that owners can conduct the day to day business Employers operations including meeting payroll. These are critical support • L ess expensive to maintain functions that banks have provided throughout their history. • Relief from fiduciary liability for investment performance But what if your bank could also help business owners invest in • No nondiscrimination or coverage testing their own futures and help them retain good employees by offering • D eductible employer contributions a retirement plan? Business owners across the country face a • D iscretionary employer contributions critical need. We are seeing the largest percentage of Americans • Start-up tax credit actively working than we have in decades – the latest national • O wners receive contributions unemployment figure was 3.8 percent.1 This creates much greater Employees competition for workers. Benefits play a key role in whether • Opportunity to save for retirement someone will accept a position and also whether they stay with • Tax-deferred contributions and earnings until distributed that employer. Healthcare and retirement benefits are the two key • E mployer funds contributions to the employee’s Traditional drivers in that decision. The Coverage Gap IRA According to an AARP survey, 55 million workers do not have • Employee owns the Traditional IRA contributions immediately access to an employer-based retirement plan.2 Without some Easy for Employers sort of driver – either through an employer or though financial One of the most common questions we receive at Ascensus® is education – the average employee will not seek out a retirement “How difficult is it to establish a SEP plan?” The answer is: the savings option on her own. This lack of access is more pronounced process is generally easy. The bank can provide to the employer a with micro employers (1–50 employees) and small employers plan document based on IRS Form 5305-SEP, Simplified Employee (51–99 employees). According to Morningstar, only 48 percent of Pension-Individual Retirement Accounts Contribution Agreement. employees in the micro market have access to a retirement plan.3 The employer makes a few elections on the document before their That number increases to 67 percent for small employers. With tax return due date plus extensions, and the plan is created. The that level of coverage gap, you begin to understand why state and employer then provides their employees with the required notice local governments have started to step in with other retirement containing SEP rules and plan provisions. savings options. Community banks also have an opportunity to Eligible employees, including the business owner, must also fill the coverage gap by offering retirement savings plans suited for establish Traditional IRAs to receive contributions. This is the small businesses, such as simplified employee pension (SEP) and key opportunity to obtain new or cross-sold clients as employees savings incentive match plan for employees of small employers may establish the Traditional IRAs wherever they choose. Your (SIMPLE) IRA plans. Today, we will focus on SEP plans. bank may coordinate with the employer to provide education A Solution for Small Employers and streamline the Traditional IRA establishment process to SEP plans are available to nearly every type of business, but encourage enrollment with your organization. usually attract small businesses or self-employed individuals. Easy for Banks In a SEP plan, employers can choose to make Traditional IRA There is little investment you need to make to enter or enhance contributions (according to specific formulas) to themselves this market. Your bank likely already has much of what you need and eligible employees. An employer generally can contribute to offer SEP plans. a maximum of the lesser of 25 percent of the employee’s • SEP Plan Document for Employers – The bank can secure compensation for that year or $56,000 for 2019. a SEP plan document to provide to employers. The bank can elect to charge for initially providing the document, or annually for maintaining it. SEP Plans continued on page 32 The Champion for Minnesota Bankers 11

Shattered Myths of Banking By Achim Griesel Banking has more customer data than just about any other Our belief is that you can attract younger segments, and win their industry. We know financial and personal information and loyalty, with an omni-channel approach, a core relationship and how customers spend money. With data, we can understand low-cost deposit acquisition strategy and a simple desire to grow. behavior patterns for millions of people. As bankers, we go to conferences and look for the next silver Myth #2: The Branch is Dead. bullet, but ignore what happens in our own customer base. We The branch isn’t dead nor have digital channels failed to love buzz words and talk about Big Data, machine learning, and meet customers’ expectations; customers simply want choices. AI, but base our conclusions on personal opinions or small surveys According to the Celent study, customers prefer the branch for while we have access to data, actual transactions, and behavior more complex relationship-based activities, but handle simple, patterns for millions. more transaction-based activities online. Overall, fewer than 10 To disregard this verifiable data in favor of notions we think we percent of customers prefer only digital. understand eventually allows myths, like the five below, a place This is right in line with what we’ve discovered at Haberfeld. For in decision-making. That can be detrimental to a community 73 percent of customers, the first product is the checking account. financial institution. How do you spot these myths and what Over the last few years we have tracked online and in-branch should you do? Read on. opening stats at more than 300 community FI branches. In this Myth #1: For Millennials and Gen Z, digital is the only thing that sample of more than 500,000 core relationships, at institutions matters. allowing account openings online, 95 percent of new relationships A Celent study, recently posted to The Financial Brand, showed were started in branch. Channels as well as choices are important! that Millennials and Generation Z adopted online and mobile Myth #3: To gain core deposits, you need to offer a higher rate. banking at a higher rate than older customers, but had a clear Higher rates get more deposits, but is that the best way to grow? preference for visiting branches for some transactions – just as Attracting rate-sensitive customers is a risky approach in today’s much as the older segment. That seems to explain in part a recent rising-rate environment. Data from community based financial analysis showing that in the last five years, Google searches for institutions representing more than 2,500 branches in the U.S. physical bank locations doubled. To all generations, it seems, the shows you can grow core deposits even without a rate increase. branch is still essential. Few of these 2,500 branches offered an above market rate, yet To attract younger customers, you need a balanced acquisition grew core deposits at twice the industry pace. strategy and good solutions in-branch and online. It’s true for The key to sustainable core deposit growth, for core relationships delivery as well as marketing channels. as well as time deposit money, is a balanced strategy that includes Data from more than 2,500 branches of community-based financial a good sales process. institutions shows a multi-channel approach could attract about Myth #4: Increasing fees does increase fee income. 10 percent more of the younger market segment than represented There are several ways to increase your non-interest income, but in a footprint. raising or implementing fees is the least sustainable. It leads to higher attrition, fewer customers and less fee income. 12 MBA News | July/August 2019 | www.minnbankers.com Shattered Myths of Banking continued on page 34

OTHER FEATURES Six Questions for David Krause MBA Board Chair 1. How did you get started in banking? Together, My first job after graduating from Southwest lmitetah’ksaeppen. Minnesota State University in Marshall was with Thorp Loan and Thrift in Litchfield. Jeff Restad After five months of working in the consumer finance industry, I landed a residential Call me at 320.759.8401 mortgage loan officer job with United Federal Savings Bank in Windom. After two years Based in Alexandria, Minn., serving Minnesota there, I moved to St. James in 1986 and have been with the Pioneer Bank organization ever since. Why choose Bell as your 2. What do you look forward to in your next year as the bank’s lending partner? MBA’s Board Chair? I look forward to continuing to build my network of bankers As your partner, we share your values. You’ll and friends of our industry including legislators, regulators and find the community banking service, integrity vendors who believe in our mission and are working hard to and trust you’re used to. help us and the communities we serve to succeed. 3. What do you most love about your job as the leader of a Commercial & ag participation loans community bank? Bank stock & ownership loans I’ve been fortunate to be a part of a bank that serves multiple   Bank building financing communities throughout southern Minnesota. Helping build Business & personal loans for bankers strength in those communities and working with the farmers, businesses and consumers who call those communities home is We do not reparticipate any loans. very important to me. 4. How do you recharge and relax? I’ve enjoyed playing baseball and golf for years – now that I’m a bit older, my baseball playing days are over, but I now have three grandchildren that I look forward to spending time with. Also, nothing beats a classic western movie when I just want to escape for a bit. 5. What’s your favorite vacation destination? My wife Carolyn and I have been fortunate to travel all over our great country – we have lots of favorite places we like to visit, but Chicago is a great city with lots to offer – hard to beat for a quick getaway. 6. Words to live by….? Live your life with passion – in your profession, in your free time, in all that you do. Life is too short to spend time on things that aren’t important to you and to those around you.  21106 Member FDIC 21106 AD Minnesota Bankers Association 2T01h9euCpdhaatem_Jpeifof_nV2fo.inrdMd in1 nesota Bankers 2/20/19 123:05 PM

BANKERS ON THE MOVE John Peterson, Interim President and CEO of United Bankers’ Kerstyn Hendricks, an NBC employee for ten Bank (UBB), announced the retirement of Conrad Newburgh, years, is now AVP, Signature Banker. Executive Vice President, Chief Credit Officer, along with the promotion of his successor, Dawn Tollefsrud. Newburgh’s Citizens Bank in New Ulm, announced the following official retirement date was Friday, May 10, 2019. promotions: As both Senior Credit Officer and, more Jon Maier, who joined Citizens in 2017, has recently, Chief Credit Officer, Conrad provided been promoted to Director of Sales and guidance and overall direction to UBB’s lending Marketing. Jon will continue in his role as team, and was responsible for managing the Branch Manager of our Lakeville Branch. In his aggregate risk in the bank’s loan portfolio. new role as Director of Sales and Marketing, he Newburgh came to UBB in 2008 with 30 years will be responsible for the overall sales and of experience working in commercial lending marketing program to grow the bank. and 16 years in credit administration and lending. Missy Visser, who joined Citizens in 2000, has Dawn Tollefsrud has been with UBB since 1998 been promoted to Marketing and Culture Officer. and has worked side by side with Newburgh to Missy will continue to implement all traditional ensure a seamless transition. “Her 21 years of marketing strategies, brand management, event experience at UBB has given her a vast management, community outreach and PR for knowledge of the correspondent lending culture the bank as well as oversee the day-to-day as well as the ability to learn from some of the functions of the marketing team. In her new role best senior managers in the industry,” said as Culture Officer, she will develop and implement yearly Peterson. culture training and new hire culture training. Community Resource Bank, Northfield, is Prime Security Bank is pleased to announce that pleased to announce that James Loe joined the Andy Klassen has joined the bank as Vice Bank as President & CEO on May 16, 2019. Loe President of Commercial Lending at its Eagan brings over two decades of banking experience office. Mr. Klassen brings over 20 years of to his new position. He has a proven track record financial services experience, having worked of effective leadership, building strong employee, within a large variety of market segments that customer and community relationships, and includes finance professionals, commercial real profitable banking organizations. Most recently, Loe served as estate, C&I, SBA, middle market, non-profit and small business Regional President of Security Financial Bank, Ladysmith, WI. owners. Mr. Klassen is a graduate of St. John’s University and Just prior to this position, he served as President and CEO of currently resides in Eagan with his wife and three daughters. Pioneer Bank of Wisconsin, Ladysmith before merging with United Bankers’ Bank is pleased to announce the promotion of Security Financial. three employees: “We are excited to welcome Jim to Community Resource Mary Williams to Executive Vice President, Chief Operations Bank,” commented Denny Hanson, current bank President and Officer: Mary oversees the UBB Operations team and supports CEO. “He has successfully grown Pioneer Bank, and built solid the development and implementation of the Bank’s deposit, relationships with the staff and the community he served. We payments and electronic banking systems. Mary joined UBB believe he is an excellent fit for Community Resource Bank.” in 2007. Loe will replace Denny Hanson, who has been President & Mark Luukkonen to Officer, Information Security Manager: CEO of the Bank since 2014. Last year, December, Hanson As Information Security Manager, Mark’s responsibilities focus announced his plans to retire in 2019 after a successful 40- on the security of UBB’s personal, corporate and customer year banking career. Hanson will continue as Chairman of the information. Mark joined UBB in 2018. Community Resource Bank Board of Directors. Donna Lindboe to Officer, Assistant Controller: Donna National Bank of Commerce (NBC), Duluth, is proud to provides support to UBB’s accounting controls and processes, announce the promotion of two associates: ensuring proper implementation and adherence. Donna joined UBB in 2017. Lindsey Growette Stingle, who has been with the bank for eight years, is now VP, Human Bankers on the Move continued on page 25 Resources Director. If you have an announcement you would like to include, please send it to Eric Hauth at [email protected]. Also look for Bankers on the Move in the “Human Resources” section of minnbankers.com. 14 MBA News | July/August 2019 | www.minnbankers.com

The Champion for Minnesota Bankers 15

2019 Annual Report Minnesota Bankers Association Another fiscal year has passed here at the MBA. We are happy to share this Annual Report, which provides a summary of the MBA’s activities over the last twelve months. As you review this report, you will see that your association has been extremely active. Each of the MBA’s core functions, education programming, legal and compliance support, group insurance products, communications services, human resources support and government relations advocacy, have performed extremely well. The MBA is in great shape right now, both in terms of its programming, its governance and its finances. The Board of Directors continues to provide solid leadership and thoughtful strategic direction for the association. Our committees are providing excellent ideas as well. And the MBA staff is a talented group of professionals, consistently doing a fantastic job of turning these ideas and vision into workable solutions for our member banks. The Minnesota banks are the heart and soul of their communities, helping make their customers’ financial dreams come true and driving local economic growth. Throughout Minnesota, local bankers are dynamic community leaders, well respected for their knowledge, their commitment and their ability to get things done. It truly is an honor to represent the men and women of the banking industry and to support the great work they do for our state. At the same time, we know that the banking industry faces challenges. Therefore, the MBA works tirelessly to provide the products and services our bankers need to address those challenges. The MBA is the Champion for Minnesota Bankers, and no one does a better job of representing and supporting this great industry. We are a member-focused organization, and you are the reason that we exist. If there is ever anything we can do for you, please give us a call. We want to help you in any way that we can. As always, we thank you very much for your bank’s membership in the MBA and for all your support! Your active involvement helps ensure that this association is successful. Have a great Minnesota summer. MBA Annual Report 2019

Advocacy & Government Relations State Advocacy been actively issuing proposed and final regulations to The MBA and the banking industry had a successful implement the provisions of S. 2155. The MBA attorneys legislative session in 2019. The MBA took the lead in drafting have written several comment letters on behalf of our and lobbying legislation to re-route non-depository funds member banks. Law changes are good, but some of the into the Special Revenue Fund (SRF) from the General benefits of a law change can be lost through the rulemaking Fund. Some funds were redirected into the SRF this session. process. The MBA will continue to work next session on the SRF to For example, we welcomed one provision in S. 2155, ensure all entities within the Financial Institutions Division which mandated a simplified capital rule for banks that are paying their fair share for their regulation and that are well capitalized. The FDIC proposed an implementing banks aren’t subsidizing other areas within the Division. regulation giving community banks with 9 percent Tier The MBA also drafted legislation to address senior financial 1 equity capital the right to choose the alternative capital fraud. The language would authorize banks to freeze funds plan. The MBA encouraged the FDIC to reduce that when fraud is suspected and would protect the bank from requirement to 8 percent so that more banks could benefit liability. This bill should pass quickly next session due to from the new plan. The FDIC also changed all the prompt the work done lobbying for it this past session. The MBA corrective action (PCA) ratios for community banks that also worked on unclaimed property legislation proposed choose this new capital plan. The MBA urged the FDIC by the Department of Commerce. The MBA formed a to leave all the prompt corrective action ratios where they coalition with other stakeholders and worked closely are because banks choosing the new plan would be at a with the Department to make sure that issues of concern severe disadvantage. A bank choosing to utilize the new for banks did not pass. Staff will continue to work on this plan would be considered “Significantly Undercapitalized” legislation next session to make sure it works for banks. with 6 percent capital while a bank not choosing the new Other bills of interest that the MBA focused on this session framework is “Well-Capitalized” with 5 percent capital. included subprime loans, student loans, payday loans and We stated that the potential risks from this PCA change more. In all, staff reviewed 5,846 bills for their impact on would outweigh the regulatory relief benefits of the new the banking industry. With the help of the lobbying firm capital framework, meaning few banks would elect the new of Cook Girard and guidance from the MBA Government capital plan. If few banks adopt the plan, the hard-fought Relations Council, the MBA was able to protect banks from law change would be meaningless. multiple pieces of legislation that would have negatively So much of a banker’s day-to-day life is dictated by policy impacted their businesses. makers in Washington, D.C. Therefore, the MBA continues to monitor and actively advocate on all the legislative and Federal Advocacy regulatory actions happening in our nation’s capital. 2018 was a big year for federal banking legislation. Congress passed the regulatory relief bill known as S. 2155. Minnesota Bankers Meeting with Rep. Jim Hagedorn in Washington, D.C. Compared to getting that bill enacted into law, the past Left to Right: Chris Ryan, First Security Bank, Byron; Rep. Hagedorn; twelve months have been relatively quiet on the legislative David Krause, Pioneer Bank, St. James; Paul Pieschel, Farmers and front. Merchants State Bank, Springfield; Malachi McNeilus, Sterling State Bank, One legislative issue that has seen some action lately is Rochester; Mark Miedtke, Citizens State Bank, Hayfield; Chuck Johnson, Root marijuana banking. Many states have legalized either River State Bank, Chatfield medicinal marijuana use (Minnesota included) or full recreational marijuana use. Because marijuana continues to MBA Annual Report 2019 be an illegal drug under federal law, banks cannot provide basic banking services to marijuana businesses. Bills in both the House and the Senate would allow banks to serve these businesses operating in states where marijuana is legal. That clarification would be a positive change, as these businesses must now operate as all cash businesses. While things are a bit slow on the legislative side, the focus has turned to the regulatory agencies, which have

Communications & Community Outreach Communications 665 The MBA connects with our members through a variety Twitter of communications channels: MBA News; The Voice; followers Political Insight; Legal, Compliance, Regulatory and CaseWatch Bulletins; monthly print and electronic 256 education updates; the MBA website; and through social media, including Twitter, Facebook and LinkedIn. Facebook The MBA is committed to engaging with our member followers bankers and we rely on member feedback to ensure that our services fit the changing needs of banking today. 2083 LinkedIn followers Community Champion Recognition In total, these banks donated over $3.9 million to more Each year, the MBA recognizes banks for their than 500 organizations including the American Red contributions, service and support of their local Cross, Habitat for Humanity, United Way, Salvation Army, communities through the Community Champion American Cancer Society, Ronald McDonald House, Recognition. This year, the 35 banks recognized as Special Olympics, Minnesota Business Venture, local 2019 Community Champions worked with hundreds of schools, churches, and non-profits. Twenty-one hundred organizations in their communities, providing funding, employees from these banks dedicated over 49,000 hours volunteers, materials, supplies, or food for their neighbors. at a variety of volunteer events or programs. Recipients of the recognition range in size from small community banks to large banks with multiple branches. 2019 Community Champion Recognition $3.9 million 500 49,000 hours 2120 bank dollars organizations of time employees donated donated volunteered helped MBA Annual Report 2019

SDATVAHTEEE!! September 2019 - Minnesota Bankers Community Impact Month Minnesota Bankers Community Impact Week Midwest Bank of Detroit Lakes Working at #BanksBuildMN Becker County Food Pantry In September 2016, the MBA launched Minnesota Bankers Community Impact Week, designed to showcase Minnesota Bankers the tremendous community work that banks undertake Community Impact Week every week of the year. The third year of this campaign was another success, attracting participation by 84 banks Participation and 240 branches impacting 145 communities. Based on feedback from the first three years of this Banks 84 successful campaign, the MBA has now changed the campaign going forward to Minnesota Bankers Branches 240 Community Impact Month to give banks an even greater opportunity to participate and help us put a spotlight on the critical role of banks in their communities. First National Bank of Waseca Blood Drive for American Red Cross Communities 145 Neighborhood National Bank Food Drive MBA Annual Report 2019

Education In the MBA’s education area, the 2018-19 fiscal year innovation panel” featuring three bankers presenting on saw strong attendance at foundational MBA education different approaches to innovation in their institutions. programs, some exciting changes to our major The conference also featured world-class presenters conferences and the successful launch of new programs to focused on technology changes reshaping the payments meet the ever-changing professional development needs landscape. of our member bankers. Unfortunately, it also saw the Our educational partnerships with the Small Business cancelation of the Women in Banking Conference due to Administration (SBA) and the Farm Service Agency extreme weather. However, we are pleased to report that (FSA) continued to prove very popular. The SBA programs we have rescheduled this very successful conference for attracted over 200 bankers from across the state, while the July and attendance is looking strong again. FSA trained over 400 bankers on FSA lending. “I have pages of bullet points to take back with me to start conversations with our teams.” Operations & Technology Conference Attendee We are also very pleased to report the graduation of another class from the MBA Leadership Development Academy and the largest pool of applicants (24) for the class of 2020, which kicked off in June. This in-depth leadership training program has become an important feature of the MBA’s growing focus on developing the next generation of bank leaders. Full House at the 2019 Operations & Technology Conference EDUCATION Overall, FY 2018-19 was another very active year in banker 2,075 education, with 89 percent of MBA banks participating in an educational program. MBA programs attracted 2,075 bankers participated in bankers and 3,062 distinct registrations. We are very education programs grateful for this continued show of support by member bankers in our educational programs. 3,062 “Loved the interactive content. I always love separate learning here. Valuable Information for me registrations and my bank.” Cash Management Seminar Attendee Here are some highlights of changes in our education 2019 MBA Annual Summit Participants Enjoying offerings this past year: Topgolf! In August, the MBA held its first Next Generation Bankers Conference, which attracted over 60 bankers eager to learn and network as they continue to build their careers in banking. We look forward to growing this program and making it one of our premier annual conferences. In October, attendance for the MBA’s Commercial Lending School was the highest we’ve seen in the past decade. In April, the MBA convened another very successful Operations & Technology Conference. This year, the banker committee guiding the planning for this conference moved the location to the Twin Cities, while expanding the agenda to include breakouts and a “banker MBA Annual Report 2019

Legal & Compliance Regulatory Watch 12 Bulletins Legal Department Over the past year, the legal department has responded Case Summaries 12 to more than 2,300 legal and compliance inquiries from members. Members can email [email protected] Articles in Legal anytime for free and can call up to six times per year for free. Compliance Bulletins Our attorneys produced 29 articles in Legal Compliance Bulletins and 12 case summaries in CaseWatch Bulletins, updated the MBA Deposit and Lending Manuals, and issued 12 Regulatory Watch Bulletins, all to help our members navigate a challenging legal and regulatory environment. Staff also wrote six comment letters on proposals that would impact the banking industry. This year, the department facilitated 35 regional compliance group meetings in 10 different locations across the state for 380 compliance professionals. 29 Regional Compliance 35 Groups Legal & Compliance 2,300+ Inquiries Mike Thro, MBA Associate Counsel, Fielding Member Legal Questions Compliance Consulting The MBA offers compliance consulting services, including deposit, real estate loan and privacy reviews, HMDA scrubs, advertising/website reviews, custom policy creation, compliance risk assessments, and independent testing of ACH and BSA programs. Personalized training and policy and procedure development are also offered. The MBA’s consultant, Associate Counsel Tom Boswell-Healey, is an attorney with over 20 years of industry experience. He is able to leverage his interaction with member banks throughout the state to help members identify and mitigate risks from changing regulatory demands. His experience and ability to determine compliance with both federal and state laws means that members using his services get great value. MBA Annual Report 2019

Insurance & IT Consulting MIDWEST BANKERS employee benefits are a great way to stand out to your Insurance Services employees. Many banks also take advantage of our health insurance brokerage business, which provides Commercial Insurance – Midwest Bankers Insurance the best plans available in Minnesota. We are pleased Services (MBIS) to report that we now have well over 40 banks and over MBIS is a jointly owned subsidiary of the MBA and the 1,500 Minnesota bank employees enrolled in the Iowa Wisconsin Bankers Association operating in Minnesota, Bankers Benefit Plan, which we began marketing on an Wisconsin, and North Dakota. MBIS specializes in exclusive basis in 2014. In addition to the core employee providing insurance policy education, internal control benefit products, we also offer a vision plan that covers consultation, best practices and insurance placement for exams, contacts, and eyeglasses on an annual renewable the following insurances: basis. This plan has grown dramatically thanks to the low premiums and solid benefits. • Cyber Liability • Directors & Officers Liability IT Consulting • Financial Institution Bond MBA’s IT consulting is designed exclusively for MBA • Excess Deposit Bond member banks and we expanded our services this past • Civil Money Penalty year. We worked with banks on comprehensive strategic • Property and Casualty technology plans, business continuity plans, information • Workers Compensation security testing, audit and assessments to ensure banks are • Mortgage Hazard following industry best practices. The MBA’s consulting • Mortgage Impairment group assisted member banks with the following services: • Flood Solutions We are pleased to report that MBIS now works with over • External Network Vulnerability Assessment 200 community banks ranging in size from $20 million to • Information Security Assessment and Audit over $8 billion in assets. • Internal Vulnerability Assessment • Social Engineering Assessment Group Insurance • Vendor Management For over 60 years, the MBA Employee Benefits Trust has • Technology Strategic Planning provided high quality dental, life and disability products • TRAC™ Implementation to banks in the state. We put the buying power of well • Security Training and Board Education over 5,000 Minnesota employees together to result in • Customer Education lower premium rates for everyone. Bankers are our • Core Banking System Vendor Evaluation and only customers and we are proud of our many long- Contract Management term relationships. Our specialization in the banking industry allows us to fully understand and meet the needs Finance of bankers. Most of our plans offer banks the choice of Our Finance Department provides support to the MBA employer or employee paid premiums. With employee and its affiliates including MBIS and the Employee retention becoming critical in a competitive job market, Benefits Trust. We invest most of the MBA’s funds in member bank CDs. We solicit bids periodically, with announcements in MBA News, our website and via email. MBA Annual Report 2019

Associate Members, Endorsed Vendors & Partners The MBA is very proud to partner with the many companies Eide Bailly LLP that make up our Associate Members, Endorsed Vendors Elan Financial Services and Partners. These companies specialize in providing EO Johnson Business Technologies valuable services to our member banks. Farmer Mac Federal Home Loan Bank – Des Moines Associate Members FIPCO Fredrikson & Byron The MBA counts 126 companies as Associate Members. FTN Financial These firms provide a wide range of products and services Gislason & Hunter LLP to Minnesota banks, including accounting, legal counsel, Graduate School of Banking at Colorado investment services, branch redesign and architecture, Graduate School of Banking-Madison technology solutions, insurance products, cash HTG Architects management solutions and enterprise risk management. Kasasa Associate Members also provide valuable educational Loffler Companies, Inc. content to MBA member banks through articles published Marco Technologies LLC in MBA News, free webinars and as faculty for some MBA Midwest Bankers Insurance Services, LLC educational programs. MoneyGram International Ncontracts Thank You to Our 2018-19 Sponsors! NetWork Center, Inc. NFP Executive Benefits The MBA is very grateful for the sponsorship we receive Northland Securities, Inc. for MBA schools and conferences, including the Annual PCBB Summit, Women in Banking Conference, Commercial Presidio, Inc. Lending School, CFO Conference, Next Generation Promontory Interfinancial Network, LLC Bankers Conference, Leadership Development Academy, PULSE, a Discover Company and the Operations & Technology Conference. Their RSM US LLP support is critical to ensure that we offer the best possible SBS CyberSecurity, LLC experiences and greatest value to MBA member bankers. Scenic Sign Corporation We thank the following companies and organizations for SDN Communications their generous support in FY 2018-19. Sycorr American Bankers Association The Baker Group Ascensus Travelers Automated Systems, Inc. UMB Bank BancAlliance United Bankers’ Bank Bankers Healthcare Group, LLC Vanman Architects & Builders Barrier 1 (The Barrier Group) Wells Fargo Bank Bell Bank Wipfli LLP BMO Harris Bank N.A. CASE Financial CliftonLarsonAllen LLP Computer Integration Technologies, Inc. Consolidated Communications Country Club Bank Data Center Inc. Edge One, Inc. MBA Annual Report 2019

Associate Members, Endorsed Vendors & Partners Endorsed Vendors Office Depot Bank-specific Discount Program Through our Endorsed Vendor program, the MBA and its for- As an Office Depot customer, you will have access to Office profit affiliate – MBA Insurance & Services, Inc. (MBA ISI) Depot’s exclusive Business Solutions Division website, strategic – selectively identify and vet products and services that have brand name partnerships, multi-billion dollar buying power, a significant potential to strengthen the business of banking and ease in economizing your operations. Enjoy customer in Minnesota. MBA member banks also receive discounts on service from Office Depot that is unmatched in the industry. If these products and services, putting the combined buying you are an employee of an MBA member organization, you can power of all Minnesota banks to work for you. register for an Employee Discount Account at the link found in The MBA proudly endorses the following products and services the Endorsed Vendor section of the MBA’s website. and we encourage you to learn more about them by clicking on the Vendor Relationships tab at www.minnbankers.com. Partners In addition to our Endorsed Vendors, the MBA very selectively Ascensus Fully-Administered and Self- enters into co-marketing partnerships with vendors offering Administered IRAdirect unique technology products that benefit Minnesota banks and The MBA endorsement covers the Ascensus Fully- where co-marketing provides the best solution to educate MBA Administered and Self-Administered IRAdirect program. This members about the product and its benefits. fully supported, web-based program has built-in compliance systems that help ensure your bank properly establishes its Discover Debit IRA, HSA and ESA accounts, cutting back the number of In FY 2016-17, the MBA entered into a co-marketing technical errors that can occur using paper forms. Banks can partnership with Discover Debit to promote this product as a choose to continue administering these accounts, or they can preferred debit card solution for community banks. outsource the tax reporting and other administration functions to Ascensus by choosing the Fully-Administered option. Kasasa Success Formula Everfi Kasasa is the leading provider of innovative retail products, The MBA partners with Everfi, the nation’s leading financial world-class marketing, and data-driven consulting to community literacy software company, to bring interactive, web-based financial institutions nationwide. MBA’s endorsement covers personal finance education to local students that can be privately Kasasa’s complete Success Formula, including groundbreaking labeled and branded by your bank. Everfi provides an opportunity Kasasa® products, scale-driven marketing, robust analytics, for Minnesota banks to enhance their existing financial education compliance, training, and ongoing support. initiatives and deliver the latest technology to local high schools, colleges, middle schools and direct to customers. KeyState Captive Insurance Program KeyState Companies is a leader in helping banks form and Secure Banking Solutions TRAC™ manage a captive insurance company. Their captive insurance Software company program works in conjunction with each bank’s The MBA continues its partnership with TRAC, an integrated existing bank insurance coverages, giving the bank an effective cybersecurity risk management software, provided by Secure way to manage some of the bank’s business risks. Banking Solutions. This web-based software simplifies the risk management process and allows the user to make more Ncontracts Third-party Vendor informed security decisions. Minnesota banks are using over Management 400 modules of the TRAC software. Ncontracts is a leading provider of vendor and contract management services for the financial institution industry. Promontory Interfinancial Ncontracts combines turnkey vendor management services Network with a comprehensive and fully-customizable vendor and The MBA continues its long-standing partnership with contract management application. Insightful summaries Promontory Interfinancial Network, the #1 provider of of vendor contracts and alert notifications assist clients in FDIC-insured deposit placement services and the inventor of proactively managing vendor relationships. reciprocal deposits. MBA Annual Report 2019

Bankers on the Move continued from page 14 Americana Community Bank (ACB) announced that James Swiontek, ACB Senior Credit Officer, retired in late June. Swiontek retired with 38 years of banking experience. Bradley Mathiowetz, currently President of ACB’s Sleepy Eye, Minnesota, branch, will serve as ACB Senior Credit Officer following Swiontek’s retirement. Mathiowetz, a 22 year employee of ACB and life-long Sleepy Eye resident, has managed the bank’s agricultural portfolio for his entire career and has been Sleepy Eye branch President since 2002. Robert Schmid, a 16 year ACB employee, has been promoted to Americana Community Bank Sleepy Eye Branch Manager. Schmid has experience in agricultural, commercial, and real estate lending and is currently President of the Sleepy Eye Golf Course Board of Directors and has served on many other community boards and organizations. Woodland Bank announces the appointment of Jennifer Raushel as the new Branch Manager of the Hill City office. In the banking industry since 2012, Raushel has experience in a variety of roles starting as a teller, working on accounts and lending as a banker and also Retail Manager. She is involved with the United Way as a volunteer and ambassador and is the Business Network International’s local chapter Vice President. Announcements This summer the ownership and staff of F&M Bank Minnesota are excited to celebrate their 100th anniversary. Farmers & Merchants State Bank of Clarkfield, the original name of the bank, was chartered on January 28, 1919. Board Appointments The Board of Directors of WNB Financial is pleased to announce the election of Russell Meyer and Thomas Crowley to serve on the Bank’s Board of Directors. National Bank of Commerce, Duluth, is proud to announce the addition of three new members to its Board of Directors: Jon Aamodt, Principal Partner, Northland Consulting Engineers LLP; Greg Borash, CFO, Miners Inc.; and David Manion, CEO, CW Technology.  Jon Aamodt Greg Borash David Manion The Champion for Minnesota Bankers 25

Counsel’s Corner Michael Thro MBA Associate Counsel [email protected] Are fees for health savings accounts (HSA) considered has the power to conduct “fiduciary transactions,” the trust contributions? must still allow the trustee to delegate. See Minnesota Statute No, fees paid by an HSA owner directly to an HSA custodian § 523.24 subd. 9, which states “nothing in this subdivision are not contributions and do not count toward the annual authorizes delegation of any power of a fiduciary unless the HSA regular contribution limits. power is one the fiduciary is authorized to delegate under the Can the trustee of a trust delegate their authority to the terms of the instrument governing the exercise of the power or trustee’s attorney-in-fact if there is a validly executed power under local law.” of attorney that lists “all powers?” Our bank accepted a check for deposit with a third party No, the trustee may not delegate this authority unless the trust endorsement. We did not verify the signature of the original document specifically allows the trustee to do so. Even if the payee. Are there any risks to the bank? power of attorney document states that the attorney-in-fact Yes, there may be some risk. When the bank takes that check for deposit, it makes a warranty to the drawee bank that you have MBA NEXT GENERATION verified all endorsements. In Minnesota, the original payee has BANKERS CONFERENCE up to three years to contact the maker of the check to claim that their endorsement was forged. The maker of the check MARRIOTT MINNEAPOLIS WEST, ST LOUIS PARK would contact their bank who would then contact your bank to seek reimbursement. If the bank is not verifying a signature AUGUST 14, 2019 then there is risk that the signature is forged, or even that payee later changes their mind and claims that the signature is forged. Without proper documentation the bank would have no way to dispute the claim. But many banks do still accept third party checks. When doing so, banks often require the original payee to endorse the check in the presence of the bank so that the bank can verify the payee’s identity. Our customer is the beneficiary of her ex-husband’s IRA who is now deceased. At the time she was named beneficiary they were married, but at the time of his death they were divorced. Did the divorce automatically terminate her status as a beneficiary? Generally, a divorce does not necessarily terminate the beneficiary’s rights. Unless there is a specific mention of the termination in the divorce decree or some other genuine dispute, it is possible the beneficiary still has the rights a typical IRA beneficiary has.  For more information and members only information on legal matters in banking, log onto minnbankers.com, and click on “Legal and Compliance.” 26 MBA News | July/August 2019 | www.minnbankers.com

Compliance Query Tom Boswell-Healey Associate Counsel/Compliance Consultant [email protected] Do we need to have policies and procedures on successors in to deposit and loan products. Second, banks should evaluate interest? their existing third-party offerings with a focus on charges to Successors in interest policies are required by the Real Estate their customers, customer disclosures, and staff knowledge of Settlement Procedures Act (RESPA) regulation unless the the offerings. It is important to remember that banks will be bank qualifies as a “small servicer” under the Truth in Lending held responsible for any customer interactions with their third- Act (TILA) regulation. See 12 CFR 1024.30(b)(1). The party vendors. Third, banks should include UDAP/UDAAP TILA regulation defines a small servicer, in part, as a servicer, oversight as part of their new products and services process to including its affiliates, if it services 5,000 or fewer mortgage limit surprise concerns. Bankers should seek out fellow bankers loans for which the servicer, or an affiliate, is the creditor or with experience in any new product or service offerings assignee. See 12 CFR 1026.41(e)(4)(ii)(A). Therefore, if under consideration to leverage community knowledge. In all your bank services 5,000 or fewer mortgage loans that it has three of the above described instances, bankers should place originated or assigned, then your bank is not required by themselves in the shoes of the intended customer audience for regulation to have specific successor in interest policies and the particular offering in order to identify any questions and procedures. Nevertheless, banks will need to handle successor concerns that may arise. Banks can then iterate this process in interest claims and it is a best practice to have policies through all product and service offerings in the future with an and procedures in place. These policies and procedures will emphasis on new offerings.  permit staff to evaluate and process successor in interest claims timely and appropriately. Successor in interest policies and Ask the Agent procedures should cover the type of documentation needed to confirm a successor in interest, both identity and ownership Connie Mack interest, making a confirmation determination, and notifying Senior Plan Administrator- the potential successor in interest of the determination and Dental and Insurance Agent any appropriate next steps. As a result, even though your bank [email protected] may be exempt as a small servicer, banks should develop and implement successor in interest policies and procedures. Our bank has dental coverage through the MBA Dental Plan What should the bank be doing to identify and monitor its and we heard that the carrier, Delta Dental of Minnesota, risks from UDAP/UDAAP? also offers a hearing health care benefit. Would you please Unfair or Deceptive or Acts or Practice (UDAP) and Unfair, tell me more about this? Deceptive, or Abusive Acts or Practices (UDAAP), for banks Amplifon Hearing Health Care can help you find the solution exceeding $10 billion in assets, concerns affect the entire that is right for you for hearing loss. They will find the solution universe of banking products and services and customer that best fits your lifestyle and budget; provide one year free interactions. While the “abusive” portion of UDAAP only follow-up care, two years free batteries, and a three-year warranty. applies to banks with total assets of more than $10 billion, no They also have a hearing aid low-price guarantee. For a free banks should ignore the abusive framework when assessing hearing screening, you can call 1-877-310-3053 or go online at their UDAAP risks, since it is similar enough that it could www.amplifonusa.com/deltadentalmn.  be covered by unfair or deceptive frameworks. This extremely broad scope for UDAP/UDAAP makes it difficult to begin For a full list of MBA’s insurance offerings, log on to identifying the applicable risks for each bank. First, banks minnbankers.com and click on the “Group Insurance” should evaluate their current product and service offerings button. against acts and practices that the banking agencies have identified as problematic. For example, the regulating agencies have raised concerns with overdraft-related practices, such as real-time balance disclosures and continuous overdraft fees, reward checking disclosures and fees, and add-on offerings The Champion for Minnesota Bankers 27

Check Fraud continued from page 10 Check fraud still appears in traditional forms, including basic How do you prevent this? IT departments are becoming counterfeit checks, forging checks, paperhanging (writing a check increasingly vigilant against these types of scams, but that doesn’t from a closed account) and check kiting (“floating” a check from mean they stop 100 percent of them. Pay attention to business one low- or no-balance account to another to cover payments). checks over a certain threshold amount or when there is a spike Yet, emerging check fraud trends are important for you and in the number of checks issued over a certain period. your staff to be aware of in order to protect both your financial Check Overpayment Scams: A customer is selling his/her car institution and your customers. online or in the local classifieds. They get a check in the mail from Lottery/Sweepstake Winnings: Scammers send a letter saying the buyer for $1,000 over the asking price. When he/she calls the you won a lottery or sweepstake with a check for a couple of buyer to alert them of the overpayment, they say it was an honest thousand dollars. All you have to do is deposit the check into mistake and ask him/her to wire them back the extra $1,000. your account, keep a small part for yourself and wire the rest of the So your customer comes in with the check and starts a wire for amount back. It’s a win-win, right? It would seem, but only until the extra money. Then the check comes back as fraudulent, the the check is marked as fraudulent and your account is overdrawn scammer made a quick $1,000 and your customer depleted his/ by a few thousand dollars. her account. How do you prevent this at your institution? If a customer comes How do you prevent this? When a customer comes in to deposit in with a check like this, have your tellers/front of house start a large check and make a wire payment, have your front of house a conversation with him/her explaining the latest scams going strike up a conversation and see where the check came from. If it around. They are especially susceptible to this type of scam if their is over the CTR filing thresholds, you will have to file paperwork account balance is normally well below the dollar amount on the on it anyways, so the conversation is necessary. If it seems like check. Who doesn’t want to get rich quick? Also, pay attention this customer is a victim of an overpayment scam, suggest he/she to the physical check. Where is the origination address? Does this return the check and ask for a new one with the correct amount. match the business on the front of the check? Are the routing These are just a few emerging fraud trends on a list that grows numbers correct? Are there physical signs of alteration, including daily. As technology evolves so do the ways fraudsters conduct stains or discoloration? their illicit businesses and approach victims. Tellers can stop most Business Email Compromise: According to AFP’s survey, 34 check fraud at the teller line by spotting a counterfeit or fake percent of all BEC scams targeted check fraud. Criminals send check. a fake or phishing email to a member of the finance team at a How do your tellers know what to look for when it comes to corporation either pretending to be a high-level executive or check fraud? presenting a fake invoice. Often times the scammers will spend When accepting a physical check, take a close look at the check. a few days “grooming” this employee to persuade him/her the Pay attention to the check numbers. Most scammers use low claim is real. Eventually, the employee sends back secure financial numbers on personal checks (101-400) and higher numbers on information, allowing the criminal to forge a business check or business checks (1001-1500). Verify the customer’s address, look process a wire transfer. for signs of discoloration or stains from erasures or attempts at altering printed info. Visit FakeChecks.org for a fun way to test your staff’s knowledge of counterfeit checks. At the end of the day, trust your intuition. If something feels off, take a second to investigate it a little deeper. Ask another question; take a harder look at the check. You may just save a customer a very real headache… and thousands of dollars.  Jill Cacic Senior Public Relations Specialist Abrigo [email protected] 512-279-5715 28 MBA News | July/August 2019 | www.minnbankers.com

Thank You to Our Outgoing Board Members Rich Hoban Ken Johnson Frandsen Financial Corporation North Shore Bank of Commerce Arden Hills Duluth NETWORK COVERAGE IT pros are always at the center of the action ready to SDN WITH THE ASSIST assist their multiple o ce locations simultaneously, thanks to SDN’s reliable broadband network. Enjoy the UPTIME. See the interactive coverage map at sdncommunications.com/map The Champion for Minnesota Bankers 29

Self-Service Core Integration is Changing Retail Banking By Jon Erpelding The retail banking industry has experienced a slow transformation and like that they can do anything – loan payments, transfers, in self service since the first ATM was introduced over 50 years withdrawals. Once they do it, they like it. It is important for us to ago. Thanks to advancements in technology, financial institutions take time to show them.” today have a greater opportunity to provide a host of self-service Advantages of ITM transactions with the Integrated Teller Machine (ITM). This self- Financial institutions, regardless of size, realize ITMs are the answer service model creates an exceptional customer experience while to many industry challenges and acknowledge the technology driving efficiencies for the financial institution. has had a very positive impact on staffing in today’s tight labor ITM Technology Difference market. The video capabilities allow for longer staffed hours and In the early stages of ITMs, every transaction involved a video maintain customer/teller interaction without having to staff tellers teller. Customers found this required function slowed down their physically at each location. Not only does this free up the teller line transaction, leaving them reluctant to fully embrace the shift to this congestion, it also allows the teller to focus on and listen to their technology. Financial institutions did not completely experience customers’ needs. operational and productivity efficiencies either. It was time to take Kelly Pickle shares her staffing solution, “Some customers weren’t a pause and examine how the ITM technology could meet the always able to get to the bank during traditional bank hours and wishes of the customer, as well as satisfy the industry’s demands. expanding the lobby and staffing hours wasn’t practical. ITMs Today, our clients are implementing new self-service technology to allow us to provide solutions to our customers, and the staffing is address the gap between consumer expectations and the capabilities managed with just one employee.” of most ATM networks. This shift allows self-service devices to be The Decision integrated directly with the financial institutions’ core banking The decision to migrate to an ITM is different for each financial systems. The customer can now accomplish most transactions, if institution. A recent client chose this path for its high volume not all, that are currently handled by a teller. of on-us check cashing needs. By employing the ITM for these For example, we assisted Farmers State Bank with changes to their transactions, the teller line was freed up to focus on their customer staffing model in their new branch in Eufaula, OK. When planning base and complex transactions. On the other hand, a Midwest, small- their new branch, in a new community, they figured it was an ideal town bank chose the ITM path as a way to differentiate themselves time to introduce a refined business model – and to be different and in the marketplace as being high tech and forward thinking. stand out. This led Farmers State Bank to rethink their traditional When asked if customers were embracing this change, Kelly Pickle drive-up at this location and replace their machines with ITMs. says, “Banking with Heritage Bank is now more flexible and fits This shift not only met their customers’ needs, it revamped their within the customer’s schedule. The data that we’ve received staffing model. Both helped drive efficiencies in their operations. shows that they are taking advantage of the extended hours and Kelly Pickle, Operations Officer/SVP of Heritage Bank in Willmar, convenience of our ITMs.” Minnesota, gives this example, “Customers appreciate being able Whether an ITM is deployed in a drive-up setting or placed inside to select different denominations at our ITMs in comparison with a branch, these benefits reduce overall operating costs and create other ATMs.” a marked advantage over the financial institution’s competition. Furthermore, the ITM technology supports the desire for those Kelly Jordan shared the driving force behind the decision for customers who want to interact with a live person – whether staffed Farmers State Bank to use this technology in their drive-up. in the branch or off-site – with the expanded customer service Through participation in industry organizations and researching needs, such as a stop payment or a new check order. at conventions, they heard about these benefits and wanted to Stephenson National Bank and Trust customer, Mare Hare, learn more. Her team took the next step and visited a bank in a experienced first-hand this benefit at the ITM terminal and says, neighboring state. She said, “When we saw the ITM firsthand, we “One of the things I thought I would miss is seeing people because knew we needed to go in this direction.” everybody was so nice at the drive-up. But I pushed the button and As financial institutions develop strategies to bridge differences there was Mark. He’s efficient, he’s friendly and he always has the in consumer expectations, self-service core integrated technology best jokes.” should be at the top of the list. Such a strategy will provide bottom Kelly Jordan, SVP of Farmers State Bank in Oklahoma, points line value to the financial institution as well as the ability to redefine out that customers adapt to this technology because they are the consistent customer experience that consumers prefer.  experiencing it in other places. Her bank heard from other industries in their community that having a person available to Jon Erpelding help the customer learn the technology created the most success. President She says, “The safety net for these customers is that someone is NuSource Financial there. When we show a customer how it works, they see the benefits NuSourceFinancial.com of using it and feel confident that they can do that.” She continues, “We have noticed that after the customers are introduced to the machines, they are impressed by the technology 30 MBA News | July/August 2019 | www.minnbankers.com

OTHER FEATURES Congratulations to the MBA Leadership Development Academy Class of 2019! Front Row L-R: Tom Sanvick, Josh Lundeen, Rachel Carpenter (Class President), Laura Franklin, Tina Rabe, Paula Diaz, Jen Wainionpaa, Barb Barthel, Chris Anderson. Back Row L-R: Matt Hodsdon, Tyler Page, Dean Steinwand, Katie Beadell, Mike Schmalzer, Bryan Frandrup, Dan Bonneur, Ryan Wynia, Paul Troskey. Not pictured: Ruth Peterson. CSI KNOWS THE SKY IS THE LIMIT. MN-0619-LAYOUT.indd 1 The Champion for Minnesota Banke6r/s3/19 9:07 AM31

SEP Plans continued from page 11 ____________________________________________________ 1Bureau of Labor Statistics, “The Employment Situation— • T raditional IRA Document for Employees – These IRA February 2019,” February 2019, https://www.bls.gov/news.release/ opening documents are the same documents used for all pdf/empsit.pdf Traditional IRAs the bank services today. 2David John and Gary Koenig, AARP Public Policy Institute, “Workplace Retirement Plans Will Help Workers Build • Required Reporting – The bank must report SEP Economic Security,” October 2014, https://www.aarp.org/ contributions to the employee’s Traditional IRA just as they content/dam/aarp/ppi/2014-10/aarp-workplace-retirement-plans- do for all Traditional IRAs. There is no additional reporting build-economic-security.pdf. required; the difference is properly coding the contributions 3Morningstar,“Small Employers, Big Responsibilities: How as SEP contributions for the correct tax year. Most bank data Policymakers Can Address the Small Retirement Plan Problem,” processing systems already have this coding option. November 2017, https://www.morningstar.com/content/dam/ marketing/shared/pdfs/policy/SmallEmployersBigResponsibilities. The key differential for a bank will be their willingness to educate pdf. both their staff and small businesses. You should be able to provide employers with baseline education about the rules and Steve Christenson benefits of a SEP plan. But most importantly, you should educate Executive Vice President employees on the value of the SEP plan and what it means for Ascensus LLC their futures. Assisting employers and employees by providing [email protected] helpful information will lead to successful SEP plans and stronger 218-825-5292 bonds with your bank.  Editor’s Note: The MBA is pleased to endorse the Ascensus fully- administered and self-administered IRAdirect program. This fully supported, web-based program has built-in compliance systems that help ensure your bank properly establishes its IRA, HSA and ESA accounts, cutting back the number of technical errors that can occur using paper forms. For more information on this program, contact Heather Hoskins at [email protected]. Your Legal Department® • Financial Institution Regulatory Compliance • Financial Institution Operations • Commerical Loan Documentation • SBA and USDA Loans • Commercial Loan Litigation and Liquidations • Workouts and Collections • Foreclosures • Creditor Rights AJ-Law.com • 14985 60th Street North • Stillwater, MN 55082 • 651-439-2951 32 MBA News | July/August 2019 | www.minnbankers.com

Pioneer Bankers 501969-2019 ANKING YEARS IN B The Minnesota Bankers Association is proud to recognize those who have worked in the banking industry for 50 years or Grace Rubischko more by inducting them into the MBA Pioneer Club. Pioneer Grace Rubischko achieved 50 years in banking Bankers have shown tremendous commitment to the industry in September of 2018. She started her banking and it is because of their hard work and dedication that banks career as a bookkeeper at State Bank and Trust, remain a solid foundation in their communities. now Frandsen Bank and Trust, in New Ulm. She spent ten years there working her way up Steve Gilmer to head teller. Grace left State Bank and Trust Steve Gilmer is the quintessential community and moved with her husband and family to the banker. He began his banking and credit career family farm located near Gibbon, Minnesota. After moving, she in 1968 in the Treasury Offices of Chrysler was offered a position at Citizens State Bank in Gibbon as a teller Corporation, was drafted into the U.S. Army and did some work in the loan department over the next ten years in 1969, serving in the Army Finance Corps, until Citizens State Bank was purchased by Minnwest Bank in eventually becoming First Lieutenant. March of 1988, and they offered her a position. Over the next 30 Steve then returned to his roots to run a years she worked her way up to Vice President Branch Manager successful independent family owned bank, contributing tirelessly of the Gibbon office. to his community and to the commerce of his customers and the Over her 50 years in banking Grace has seen many changes. Delano area. He joined State Bank of Delano in 1973. He served Most of them have been in technology and regulations. She will as President (1984-2015), Chairman/CEO (2015-2018) and has miss her banking world and all of the wonderful customers and overseen all aspects of the bank and extensive experience in all employees she has had the good fortune to work with over the aspects of lending, including consumer, residential, construction years. Grace’s last day of banking was December 31, 2018. and commercial lending. Harry Wahlquist Dorothy Jensen Harry Wahlquist’s career in banking started 59 Times on the farm were much the same as this years ago with Northwestern National Bank year, lots of snow in the winter and flooding in of Minneapolis, where he spent over 23 years. the spring. My husband had gone to the bank His first role was in the collection department, and discovered they had a job opening. Unlike working diligently to collect payments from today, I wasn’t required to fill out an application. customers of the Northwestern Charge Plan so After my interview, the banker asked me to start the account could be sold to Shoppers Charge on Monday. Service…the predecessor to MasterCard. He was happy to move I started as one of three tellers working out of the same cash on to the Credit Department Training Program after six months, drawer. What a nightmare! We didn’t have adding machines, which jump-started his career in lending. Fast forward many computers, email or coin counters. years and a variety of positions at Northwestern National Bank, Fifty years later, I’m still working at Currie State Bank on a part- to his role as Senior Vice President/Manager – Correspondent time basis. During my career, I was a teller, loan officer, accounting Banking Department. Combining the experiences of his youth assistant and secretary for the Board. I’m lucky to have had great and his professional background with a strong personal desire to coworkers, fantastic customers and the unwavering support of the help perpetuate what he observed, Harry jumped at the chance Hansen family who owns the bank. I have enjoyed my career and to acquire a small, struggling community bank in 1989 with feel fortunate to have worked at Currie State Bank for fifty years. the intent of restoring it to full health.Star Bank’s 10 offices are performing well today with $290 million in assets under James R. Lindberg management. The bank employs 77 people in Central and West Jim was born and still resides in Scandia, Central Minnesota with two of Harry’s adult children employed at Minnesota. His 43 year employee service at the C-Suite level. Harry also leads a six-member Family Council Security State Bank of Marine started in 1969. that meets at least once per quarter for brainstorming, planning His last seven years have been as a director. 2019 and issues management. is the 100 year anniversary of the bank and Jim is so proud to have served for over half of it. He was CEO/President for 25 years, from 1984 - 2009. Jim says, “Living, working and watching a community bank grow assets over 75 times has been exciting. It was easier being a community banker in good times but our entire staff understood we needed to be there for our customers in poor economic times as well.” The Champion for Minnesota Bankers 33

Index of Advertisements Shattered Myths of Banking continued from page 12 Value-added accounts that offer services for a fee may be a good solution for the 10- Anastasi Jellum 32 20 percent of customers willing to pay. If you push customers into this type of product, attrition increases and long-term fee revenue suffers. Attrition with these products can Bell Bank 13 be as much as three times the average. You can offer services with associated fees, but it provides limited growth. For sustained growth, a better option is to expand your customer Computer Services, Inc. 31 base. Myth #5: We can focus on the Business Segment only Locknet /EO Johnson 35 There are quite a few mid- to large-size banks focusing only on business customers. The reason: A business relationship is four times more profitable than a consumer. But, when Eckberg Lammers 5 we analyzed about 500,000 business relationships, we found some interesting correlations: • For 55 percent of businesses, the checking account is the product initiating the Gislason & Hunter, LLP 25 relationship. HTG Architects 2 • For 31 percent of business customers, the consumer account was the first relationship Midwest Bankers Insurance with the FI. Services 36 That means one third of all business accounts come from a consumer relationship. So, if a community FI only chases business customers, it’s limiting profitability. This may work SDN Communications 29 for large FIs, with thousands of customers per branch, but not community FIs with branch capacity to spare. MBA News is printed on 30% recycled content paper. Advertisements Today, customer experience and convenience is defined differently. As an industry, we The contents of advertisements that need more to earn trust and build relationships. The branch is one channel, but we need appear in the MBA News are solely to serve customers well in all channels. An omni-channel approach in delivery as well as the responsibility of the advertisers. our marketing is key to our long-term growth and success.  Appearance of an advertisement Achim Griesel is president at Haberfeld, a data-driven consulting firm specializing in core in the MBA News does not relationships, customer, and profitability growth for community-based financial institutions. Mr. constitute a recommendation or Griesel can be reached at [email protected] or 402-323-3793. endorsement by the association or the MBA News of the goods or Achim Griesel services offered. Publication of any President advertisement may be subject to Haberfeld review by the MBA News Policy [email protected] Board. For more information on 402-323-3793 advertising in MBA News, contact Terry Tiller at terryt@minnbankers. Welcome New com. Articles Associate Member MBA News regularly publishes a variety of by-lined columns authored Spectrum Enterprise by individuals whom we consider to Ballwin, MO be knowledgeable in their respective enterprise.spectrum.com fields and who have a valuable Contact: Carl Bourdages, [email protected] message to share with Minnesota’s Spectrum Enterprise, a division of Charter Communications, is a national provider of banking community. Opinions in scalable, fiber-based technology solutions serving many of America’s largest businesses these columns, however, are those and communications service providers. The broad Spectrum Enterprise portfolio of the authors and do not necessarily includes networking and managed services solutions: Internet access, Ethernet access represent the opinions of the Board and networks, Voice and TV solutions, Managed Application, Cloud Infrastructure and of Directors, members, or staff of the Managed Hosting Services. Our industry-leading team of experts works closely with Minnesota Bankers Association. clients to achieve greater business success by providing these right-fit solutions designed to meet their evolving needs. For more information, visit enterprise.spectrum.com. If you have a positive working relationship with a business that other bankers could benefit from, please have them contact Renee Lawler at the MBA at [email protected] or 952-857-2630. 34 MBA News | July/August 2019 | www.minnbankers.com

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