issue 1 2015 official publication of the utah

ISSUE 1
OFFICIAL PUBLICATION OF THE UTAH BANKERS ASSOCIATION
2015
Because not all solutions
are black and white.
TM
Understanding
what makes you unique.®
www.swlaw.com
BRIAN D. CUNNINGHAM 801.257.1954 [email protected]
GATEWAY TOWER WEST | 15 WEST SOUTH TEMPLE | SUITE 1200 | SALT LAKE CITY, UT 84101
DENVER | LAS VEGAS | LOS ANGELES | LOS CABOS | ORANGE COUNTY | PHOENIX | RENO | SALT LAKE CITY | TUCSON
UBA Board of Directors
2015/2016
CHAIRMAN
Kelvin L. Anderson
President & CEO, Optum Bank
Salt Lake City, UT
VICE CHAIRMAN
Jill Taylor
District President, KeyBank
Salt Lake City, UT
7
2ND VICE CHAIRMAN
Craig A. White
President & CEO, Utah Independent Bank
Beaver, UT
26
IMMEDIATE PAST CHAIRMAN
Anthony J. Hall
President & CEO, Lewiston State Bank
Lewiston, UT
PRESIDENT
Howard M. Headlee
President, Utah Bankers Association
Salt Lake City, UT
COMMUNITY BANK ADVISORY CHAIRMAN
Douglas DeFries
President & CEO, Bank of Utah
Ogden, UT
INDUSTRIAL BANK ADVISORY CHAIRMAN
Ron Ostler
President, Comenity Capital Bank
Salt Lake City, UT
REGIONAL BANK ADVISORY CHAIRMAN
Craig Zollinger
Utah President & CEO, JPMorgan Chase
Salt Lake City, UT
BOARD MEMBERS
4
Brad R. Baldwin
President & CEO, First Utah Bank
Salt Lake City, UT
5
6
Lee A. Carter
President & Chief Operating Officer, UBS Bank USA
Salt Lake City, UT
Randall Chesler
President, CIT Bank
Salt Lake City, UT
Robert Garinger
President & CEO, American Express Centurion Bank
New York City, NY
Lewis Goodwin
President & CEO, Green Dot Bank
Provo, UT
8
Damon G. Miller
Utah Market President, U.S. Bank
Salt Lake City, UT
Ron Ostler
President, Comenity Capital Bank
Salt Lake City, UT
11 Katie Spratling
Executive Vice President, Holladay Bank & Trust
Salt Lake City, UT
Joe Stroud
General Counsel, GE Capital Bank
Salt Lake City, UT
13
14
20
By Kelvin Anderson
It seems like every week or so Utah wins
another award for being the best place to
live, the best place to raise a family, the
best place to start a business, or the best
managed state. 21
The Future is in Good Hands
I’ve noticed a growing trend in Washington that bodes well for our industry: An
increasing number of young bankers coming
to the capital to participate in bank visits
and industry conferences oriented toward
advocacy.
Operation Choke Point is Getting Choked
The FDIC recently took a significant step
back from Operation Choke Point, encouraging banks to take a risk-based approach in
assessing individual customer relationships
and to not categorically decline to provide
banking services, dealing a devastating blow
to the operation the FDIC itself facilitated.
By Pamela Stockwell
Regulators Know We Are Watching
Mark W. Packard
Senior Executive Vice President, Central Bank
Springville, UT
13
Heart of Our Community
By Frank Keating, President and CEO, American Bankers
Association
Richard Lake
President, Merrick Bank
South Jordan, UT
Deborah (Dee) O’Donnell
Senior Vice President, President, Utah Wells Fargo
Salt Lake City, UT
I had just been to Disneyland, when I heard
Senator Warren’s claim that Dodd Frank has
been good for community banks.
By Howard Headlee, President
Paul Andersen
President & CEO, Gunnison Valley Bank
Gunnison, UT
A. Scott Anderson
President & CEO, Zions Bank
Salt Lake City, UT
It’s Time to Start Making Changes to Dodd-Frank
You should have seen the look on the regulator’s faces when we presented them with
data that revealed the disparate enforcement of Fair Lending standards in two of the
FDIC regional offices.
24
25
The Directors Education Series
Training the members on your board doesn’t
have to be difficult or time consuming.
Presented by TTS
Bank Kudos
Bankers on the Move
.bank Frequently Asked Questions
Courtesy American Bankers Association Why .bank?
The .com world has become overcrowded,
making it difficult for banks to stand out.
Yield Curve Changes and Management of the Investment Portfolio In Praise of the “Modified” Barbell
Bank investment strategies must be developed within a framework that considers
multiple dimensions of risk and reward.
By Jeffrey F. Caughron
Salvation for Tellers in a Digital World
By Josh Banta, VP Service and Technical Sales, Data Business Equipment, Inc.
26
In the age of digital media, investing in your
tellers may seem counterintuitive.
Keeping A Customer After You Turn Them Down For a Loan
28
UBA Associate Members
As a banker, you have to say no a lot.
Upcoming Events
©2015 Utah Bankers Association | The newsLINK Group, LLC. All rights reserved. Utah Banker is published quarterly each year by The newsLINK Group, LLC for the Utah Bankers Association and is the official publication for this association. The information
contained in this publication is intended to provide general information for review and consideration. The contents do not constitute legal advice and such not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an
attorney as to your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the Utah Bankers Association, its board of directors, or the publisher. Likewise,
the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Utah Banker is a collective work and as such some articles are submitted by authors that are independent of the
Utah Bankers Association. While the Utah Bankers Association encourages a first print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted
without prior permission. For further information, please contact the publisher at: 855.747.4003.
Issue 1. 2015
3
The Bottom Line
By Howard Headlee, President, Utah Bankers Association
It’s Time to Start Making Changes to Dodd-Frank
I had just been to Disneyland, when I heard Senator Warren’s claim that Dodd
Frank has been good for community banks. Maybe you just have to spend time
in Fantasyland in order to understand her logic, but it all makes sense to me now.
W
hen I arrived in California, I
rented a car and drove to my
hotel. Oh my goodness, it was
like driving in a video game. Most of the
drivers were lawful and well behaved, but
every so often someone would come out
of nowhere driving as if the traffic laws
didn’t apply to them.
Thankfully, we arrived safely at our hotel
and spent the next day riding the rides.
That's when I had my revelation about
Elizabeth Warren’s comment. It occurred
to me that every ride, no matter what the
illusion of thrills and danger, is safely and
securely locked into a track (even the submarine ride! - sorry to ruin it for everyone.)
The best example is the car ride named
"Autopia". I remember as a child, I was
so thrilled to drive a car without any help
from my dad! But I quickly realized that
the car was locked onto a metal track in
the middle of the road. It prevented my
car from going more than about 6 inches
in either direction. The thrill was gone.
Everybody, regardless of experience or
skill, successfully maneuvered at the same
speed down the middle of the road - never
an accident, never an issue.
That's exactly how Elizabeth Warren
would like our banking system to operate.
That is why she so steadfastly defends the
metal track Congress installed down the
middle of our economic freeway (DoddFrank).
Sure there were some drivers who acted as
if the rules didn’t apply to them, and they
caused a massive economic accident that
4
shut down our freeway system. But really!
Is the answer to lock every driver onto a
track in an effort to prevent any violations
or accidents ever again?
Because of the reckless actions of a few
lawless drivers, bankers who have safely
changed lanes and speeds for the last 100
years in order to meet the needs of their
customers have been locked onto a track in
the middle of the road.
Under Dodd-Frank, if your financial
needs are in the middle of the road, you
are all set. Now, every bank in the country
is fighting for your business. But if you
need something a little different, something near the outside of the lane, or heaven forbid your bank used to have to change
lanes or even pull over to the shoulder to
meet your needs, you are just out of luck.
No matter how you slice it, there is not
enough economic business in the middle
of the road for all our banks and credit
unions to survive. So the consolidation
of the industry accelerates. We are losing
hundreds of banks and credit unions
every year. And this will function like a
permanent limit on the speed at which our
economy can grow.
But it’s going to be extremely hard to fix
Dodd Frank, because bankers are not
whiners. It's not in their nature to complain because even if they do, people don't
pay much attention to them. (Everyone
ignored them when they raised concerns
about who was getting mortgages.) Instead, bankers adjust. They adapt to the
new rules. They find ways to successfully
and safely leverage their capital and earn
an appropriate return. If they can't, they
sell their capital to a larger institution,
with better economies of scale, and they
comfortably retire.
The individual bankers are going to be just
fine no matter what Senator Warren does.
When Elizabeth Warren defends every
last regulation in Dodd-Frank, the people
she hurts are the same people she claims
to protect. It's the people and communities banks serve that Senator Warren is
punishing. Look at the number of people
who have given up looking for a job! Look
at poverty rates!
It's time to start making changes to DoddFrank. The American economy cannot
operate on a metal track running down
the middle of the road. We are losing
community banks. These are banks we
need, and they won't just come back when
we finally figure it out and fix the law.
The fact that Elizabeth Warren appears
committed to fight any and all changes to
Dodd-Frank undermines her credibility
and shows how politically motivated she
is. Does any normal human being outside
the beltway really believe that Congress
can pass a 2,300 page, partisan bill and get
every provision right?
Disneyland is great and all, but at some
point everyone has to head home and deal
with reality. It’s time for Senator Warren
to check out of Fantasyland and start listening to her former colleagues at Harvard
when they tell her Dodd-Frank is killing
community banks. n
www.uba.org
Heart of Our Community
govern their cities, counties, and state. Who should get the credit
for all the awards Utah receives? Utahns!
By Kelvin Anderson
That’s why the Utah Bankers Association is launching a new
social media campaign entitled “The Heart of Our Community!”
We want to give credit where credit is due; and recognize those
individuals and organizations that make our community great.
The fact of the matter is this: our state and local governments
can tax less and spend less and focus attention on things like
education, economic development, and public safety because of
wonderful people and the non-profit organizations they support
working to fill the gaps that exist in the fabric of our communities.
I
t seems like every week or so Utah wins another award for
being the best place to live, the best place to raise a family, the
best place to start a business, or the best managed state. I’ve
seen where we have won awards for being healthy and being generous to charities and having the most volunteers. These awards
are just the beginning of the story about what makes Utah great.
In reality, what makes Utah great are the people who live here.
Utahns care about their community and their neighbors. They
give time and money to charity. They study hard in school and
they work hard when they go to work. They elect good people to
Utah’s banks see it every day. Last year we donated over $50
million to these marvelous organizations, and volunteered over
700,000 hours to help them reach their goals. We know what
they are doing and we are in awe of the wonderful service they
provide to the most vulnerable among us. We want to share with
everyone the inspiring things we see each and every day. And
we hope that by sharing these stories, we will inspire even more
people to reach out and volunteer, contribute, and serve in the
community.
Enjoy our regular heartwarming posts to the Heart
of our Community Blog, visit our website and in
the connect with us box, click on the links to follow
us on Google+, Facebook, Instagram, Pinterest, or
Twitter. If you have been inspired by someone who
has done something to touch someone’s life and
make their community a better place to live, please email us at
[email protected]. Everybody needs a little Good News! n
YOUR CLIENT JUST CAME UP WITH A GAME CHANGING IDEA.
NOW SHE NEEDS FINANCING.
HELP HER SMALL BUSINESS GROW WITH
AN SBA 504 Commercial Real Estate Loan
• Purchase land and equipment
• Construct or renovate a building
• Low monthly payments
• 10- to 20-year fixed rates
• As little as 10% down
Utah’s #1
Small Business
Lender
801.474.3232 | mwsbf.com
For operating capital needs, talk to us about the extremely favorable rates of SBA Community Advantage (7a) Loans.
Issue 1. 2015
5
WASHINGTON UPDATE
The Future is in
Good Hands
By Frank Keating, President and CEO, American Bankers Association
energy and valuable insights to the debates
shaping our industry. The 100-plus that
gathered for ABA’s Emerging Leaders
Forum, which is a growing part of our
annual Government Relations Summit in
March, certainly proves that to be true.
The trend is also evident in the number
of emerging leaders participating in the
ABA-State Association Washington Visit
Program, which brings more than 1,400
bankers to the nation’s capital every year
to advocate for the industry, and in grassroots programs. It’s especially important
to encourage tomorrow’s leaders to engage
in such activities since grassroots advocacy has become a core responsibility in a
banking leader’s job description. Anyone
who plans a future in banking needs to
be developing relationships now with the
very people who could dictate it. That
means Congress and regulatory agency
leaders.
And as the faces of Congress continue
to change and become more diverse, our
industry’s advocates must reflect that
change. Remember that these officials are
often advised by younger staffers – staffers who, depending on how long their
member of Congress has been in office,
may know very little about banking.
What better way to introduce them to our
issues – and how policies established in
Washington affect banks’ customers and
communities – than through a conversation with a banker who is much closer to
being their own peer.
I
6
’ve noticed a growing trend in Washington that bodes well for our industry: An
increasing number of young bankers
coming to the capital to participate in bank
visits and industry conferences oriented
toward advocacy. This infusion of talent
is a sign of great things to come, and it is
largely attributable to the diligent work
state associations have been doing to identify and develop emerging leaders.
them what we today would call “emerging
leaders” -- gathered to “put their heads
and hearts together to bring into a union
of business interest and hearty affection
the bankers of our country for a better
bankerhood.”
The presence of young bankers in the
halls of Washington – and at gatherings
all around the country – is reminiscent
of ABA’s origins. In fact, 140 years ago,
it was a young Missouri banker named
James Howenstein, who at the age of 33
took the initiative to organize a gathering
of bankers in New York that led to the formation of the American Bankers Association. He and 16 other bankers – many of
Whether it’s participating in a panel
discussion on “The 21st Century Banker”
– as Katie Boyd, from FirstCapital Bank
in Texas; Tom Richards, from Owingsville
Banking Company in Kentucky, and Siya
Vansia, from ConnectOne Bank in New
Jersey, did at ABA’s Annual Convention
in Dallas last fall – or participating in state
young banker divisions and leadership
programs – these young leaders bring fresh
These bankers recognized the importance
of networking and engagement, even if
they didn’t call it that.
There is nothing but “upside risk,” as the
Fed might say, to turning today’s young
bankers into advocates for the industry.
Between the state associations and ABA,
we have abundant resources to help make
it happen. From schools and conference
planning committees to financial literacy
and grassroots contact programs – the
demand for young banker talent is high.
Let’s continue to develop that talent together. Young bankers represent the future
of our industry, and judging by what I’ve
seen, it is in very capable hands. n
E-mail Frank Keating at
[email protected]
© 2015 American Bankers Association. All rights
reserved. Reprinted with permission.
www.uba.org
Issue 1. 2015
7
not to do business with, including payment
processors, payday lenders, coin dealers,
pharmaceutical firms, surveillance firms,
telemarketers, home-based charities, gun
retailers and ammunition merchants, and
other businesses purported to be at higher
risk for fraud. The FDIC’s list afforded no
opportunities to appeal inclusions on the
list.
In December of 2014, a 20-page investigative report released by the House Oversight and Government Reform Committee
detailed FDIC officials working with the
DOJ to implement Operation Choke Point
and target legal businesses. FDIC officials
were also seen inserting their personal and
moral opinions into banking decisions. Investigators found emails showing employees trying to influence banks’ decisions
on who to do business with by labeling
certain industries “reputational risks,”
ensuring banks “get the message” about
the businesses the regulators do not like,
and pressuring banks to cut credit or close
those accounts.
Operation Choke
Point is Getting
Choked
By Pamela Stockwell
T
he FDIC recently took a significant
step back from Operation Choke
Point, encouraging banks to take a
risk-based approach in assessing individual
customer relationships and to not categorically decline to provide banking services,
dealing a devastating blow to the operation
the FDIC itself facilitated.
Operation Choke Point was created by the
Department of Justice (DOJ) in 2013 to
“choke off ” banking services to businesses
that the Obama Administration deemed
“high risk” or “objectionable”, casting
8
a shadow over the banking industry and
scaring banks, businesses, and regulators
alike. The DOJ intended for Operation Choke Point to combat unlawful,
mass-market consumer fraud by restricting their access to banking systems, and
initially intended to focus on the payday
lending industry. Instead, this operation
was used to choke off financial services to
many otherwise legitimate small businesses that were considered “high-risk” due to
a “reputational-risk” industry list released
by the FDIC. Financial institutions used
the list as a go-to guide telling them who
In the report, the House Government
Reform and Oversight Committee stated
that following the launch of Operation
Choke Point in spring 2013, a wide variety
of fully lawful and legitimate businesses
received notices that their bank accounts
were being abruptly terminated. The terminations were often attributed to “regulatory trends” or “heightened scrutiny” and
disclaimed any negative assessment of the
accountholder’s financial risk.
The House Government Reform and
Oversight Committee publicly criticizes
the absence of proper legal authority to
support the operation, stating on its website that the DOJ has “radically and unjustifiably” expanded the intent of Section
951 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989
without any legal authority to implement
Operation Choke Point. That law gave the
DOJ tools to fight fraud against banks, but
not against private companies operating
legal businesses.
Because of the lack of evidence of an
increased risk in providing basic banking
services such as deposit accounts, payroll
processing, or check clearing services to
any of these businesses compared to most
other legitimate businesses, the FDIC has
acknowledged wrongdoing and is now
trying to stop this activity, clarifying that
“reputational risk” alone is not enough
reason to cut off banking relations.
www.uba.org
The FDIC retracted the list fueling Operation Choke Point, and
released the following statement in Financial Institution Letter
5-2015 on January 28, 2015:
The FDIC encourages insured depository institutions to serve
their communities and recognizes the importance of the services
they provide. Individual customers within broader customer
categories present varying degrees of risk. Accordingly, the
FDIC encourages institutions to take a risk-based approach in
assessing individual customer relationships rather than declining
to provide banking services to entire categories of customers,
without regard to the risks presented by an individual customer
or the financial institution’s ability to manage the risk. Financial
institutions that can properly manage customer relationships and
effectively mitigate risks are neither prohibited nor discouraged
from providing services to any category of customer accounts or
individual customer operating in compliance with applicable state
and federal law.
The FDIC is aware that some institutions may be hesitant to provide certain types of banking services due to concerns that they
will be unable to comply with the associated requirements of the
Bank Secrecy Act (BSA). The FDIC and the other federal banking agencies recognize that as a practical matter, it is not possible
for a financial institution to detect and report all potentially illicit
transactions that flow through an institution. Isolated or technical
violations, which are limited instances of noncompliance with the
BSA that occur within an otherwise adequate system of policies,
procedures, and processes, generally do not prompt serious regulatory concern or reflect negatively on management’s supervision
or commitment to BSA compliance. When an institution follows
existing guidance and establishes and maintains an appropriate
risk-based program, the institution will be well-positioned to appropriately manage customer accounts, while generally detecting
and deterring illicit financial transactions.
The changes regarding Operation Choke Point are administrative
so far, but more reactions are to come, including from politicians
who will introduce bills to deal the final blows to Operation
Choke Point and seek the support of the Consumer Financial
Protection Bureau and the Federal Reserve. Earlier this year, two
congressional committees held hearings on Operation Choke
Point. Banks should be aware that some bills may provide a
legal basis for citizens to take action against banks or regulatory
institutions. With the FDIC playing such an integral role in promulgating Operation Choke Point, its recent actions against the
operation will greatly influence other agencies and the industry to
follow its lead. n
Compliance Alliance offers a comprehensive suite of compliance management
solutions. To learn how to put them to work for your bank, call (888) 353-3933,
visit compliancealliance.com, or email [email protected].
Pamela Stockwell is an Associate General Counsel for Compliance
Alliance, where she is an integral part in the development of compliance solutions for banks. She assists members with compliance
concerns on the Compliance Alliance Hotline, writes articles for
publication in various state banking magazines, and facilitates member
events on a variety of consumer and regulatory issues concerning
banks. Pamela has spent her career working in banking regulatory
compliance.
Utah bankers: how certain are
your duration-certain deposits?
Data shows that they are 30% of what they were
in 2007…while the percentage of long-term
loans has quadrupled.
Our latest issue of What Counts provides the
data you need to assess this risk and discover the
funding approaches that safely support loan growth
and mitigate risk.
Download your free copy at fhlbsea.com/UBA
or call us at 800.973.6223
www.fhlbsea.com
Issue 1. 2015
9
How can you improve bank exams?
TRANSPARENCY.
ACCOUNTABILITY.
PREDICTABILITY.
Tired of exam surprises?
By taking our survey you are providing anonymous feedback
that will be used to hold regulators to consistent standards.
More than 2000 bankers have already participated.
Take a stand. Take the survey.
Utah Bankers Association
a proud member of
Take the RFI survey at www.allbankers.org
*
*RFI = Regulatory Feedback Initiative
We prepared a report from the "Post Exam
Survey" database and presented them with
the "Overall Satisfaction" of bankers on
their Safety & Soundness and Compliance
exams. We also identified and shared
with them the five most significant issues
driving "Overall Satisfaction."
In each category, we presented a comparison of how satisfaction with the FDIC
compared with satisfaction with the OCC
and the Federal Reserve, and then went
on to show them how satisfaction with the
San Francisco office compared with the
other FDIC regions across the country.
The news was positive in some areas,
but fairly negative in others. In the most
negative areas, we presented the results
according to the years of experience of the
examiner in charge. And to no surprise,
the most significant challenges were found
in those exams conducted by EOC's with
under three years’ experience.
We left them with six bullet point recommendations on things they could do to
improve banker satisfaction with the examination process, substantiated by the data.
Regulators Know We
Are Watching
Y
ou should have seen the look on the
regulator's faces when we presented
them with data that revealed the
disparate enforcement of Fair Lending
standards in two of the FDIC regional offices. At the time, about 25% of the banks
across the country were being criticized
for Fair Lending violations, but in these
two FDIC regions, almost 80% of the
banks were being criticized. Regulators
had just heard a barrage of criticism from
bankers in those regions angry about Fair
Lending, and now they knew why.
the fact that we had the data to prove it.
Regardless, within 6 months we watched
the survey results as criticism reported in
these two regions came back to the national average.
When we showed them the results from
the Regulatory Feedback Initiative survey,
it’s unclear what impacted them more, the
fact that two of the regional offices were
clearly on a warpath on Fair Lending, or
Recently, several executives from state
bankers associations were asked to meet
with FDIC field examiner supervisors in
San Francisco to provide input on what
banks are saying about their examinations.
Issue 1. 2015
Thanks to over 2,500 bankers who have
taken the time to complete the Coalition
of Bankers Associations' "Post Exam
Survey," bankers association advocates
across the country are now armed with
the information we need to fight for the
fair treatment of our members.
Based on the question and answer segment of the presentation, it was clear the
examiners were very interested in the
results, but we could sense that they were
even more startled by the fact that we had
access to this amount of detailed information about the examinations. We are convinced that just knowing we are watching
and recording what is happening in these
examinations will improve the way some
examiners approach their job.
This is the primary objective of the Regulatory Feedback Initiative, to use transparency to demand accountability and
improve the examination process for all
banks. This information makes every state
bankers association more effective. Not
only can we share the aggregated information strategically with the regulatory
agencies, we can share it with our members to help them prepare for upcoming
examinations.
But we can only accomplish these goals
if every bank will adopt a policy to take a
few minutes after every exam (or visitation) to anonymously tell us what happened. Every year, more and more banks
are participating when they realize it is a
very small price to pay for such an enormous dividend. n
11
YOU SHOULDN’T HAVE
TO CHOOSE BETWEEN
EXCEPTIONAL SERVICE
AND EXCEPTIONAL RESULTS
Nikki Thon, Parter
Expect More from Your CPA Firm
With Eide Bailly you get the best of both worlds – specialists who have been working with financial institutions
for more than 60 years, and our peer-to-peer approach to service that results in unmatched solutions. From your
complex tax and audit needs, to assistance with loan reviews, regulatory compliance, IT risk advisory services, ERM,
internal audit and M&A activity, our professionals can help you position your financial institution for the future.
We pride ourselves on being a regional firm that offers personal, attentive service along with national-firm resources.
Experience the Eide Bailly difference—visit our website to learn more.
OGDEN | SALT LAKE CITY | 25 LOCATIONS NATIONWIDE
801.337.3727 | w w w. e i d e b a i l l y. c o m / f i
The Directors Education Series
Presented by TTS
T
raining the members on your board doesn't have to be
difficult or time consuming. Choose a subscription to the
Directors Education Series and see how easy and effective
board training can be.
You can't afford to not educate your Directors. Keep them up to
date and in compliance with the Directors Education Series. n
Each module displays the following features:
•
Audio, Video & Power-Point
•
25-30 Minute Durations
•
Links to Printable Handouts
•
Monthly Viewing Reports
•
Discussion Questions
•
Individual Certificates of Completion
From the first time board member, to those who have been on
multiple boards for decades, the Directors Education Series covers topics that all members must learn.
For more information contact:
Becky Wilkes
[email protected]
1-801-214-7724
2015
2015 2016
2016
The Utah Bankers Association offers annual conferences on a variety of banking topics. These conferences provide updates on hot topics, emerging trends, current and pending legislation, new products and services, and innovative ways to enhance profitability. They also provide an invaluable opportunity for attendees to network with
peers and stay current on important issues affecting our industry.
UBA Conferences
CRA Conference
Snowbird
September 15-16, 2015
Bank Executive Winter Conference
Salt Lake City
February 2016
Fall Compliance Conference
Chateaux at Deer Valley
October 26-28, 2015
Bank Technology and Cyber Security
Conference – **NEW**
March 2016
Leadership Conference
Salt Lake City
November 2015
Women in Banking Conference
April 2016
Ag Outlook and Conference
St. George
January 2016
Issue 1. 2015
For information, contact Becky Wilkes 801-214-7724,
[email protected]
13
Bank Kudos
ALLY BANK
ALLY BANK SEES CONTINUED DEPOSIT GROWTH
AND CUSTOMER SATISFACTION
Ally Bank reached a new milestone recently by crossing
the $50 billion threshold in retail deposits on March 13,
2015. The latest accomplishment follows a trend of annual
average double-digit growth in retail deposits by the bank,
most recently growing deposits by $4.8 billion in 2014,
which represented a year-over-year increase of 11 percent.
In addition to growing deposits, Ally Bank continues to
build its customer base and maintain strong customer loyalty. As the Bank nears the one million customer mark, satisfaction and loyalty scores remain consistently above 90
percent. Ally Bank’s customer-centric business philosophy
has earned it the title of 'Best Online Bank' for the fourth
straight year by MONEY® Magazine, and it has also been
named as a top pick among online banks by Kiplinger's
Personal Finance and www.GoBankingRates.com.
“Our retail deposit
growth continues
to be driven largely
by savings products, which now
represent 50 percent of the retail
portfolio,” said Diane Morais, Ally
Bank Deposits and
Line of Business Integration
Executive. “Our
customers tend to
be purposeful savers, and we offer
a very competitive
product portfolio
to help individuals achieve their
financial savings
goals.”
To underscore the benefits of banking with an online bank,
Ally recently launched its “Facts of Life” ad campaign.
14
The online and TV spots use humorous fact-of-life scenarios such as “Ordering Wine = Pretending to Know Wine”
to highlight Ally’s “No Branches = Great Rates” message
as just another fact of life.
TAB BANK
TRANSPORTATION BROKERAGE COMPANY CHOOSES
TAB BANK FOR A $3 MILLION REVOLVING CREDIT
FACILITY
A transportation brokerage company located in the southeast has chosen TAB Bank for a $3 million asset-based
revolving credit facility. The new facility paid off the company’s previous lender and will provide cash flow for the
company’s ongoing working capital needs. The company
is a provider of logistics consulting and transportation
services for a nationwide customer base.
TAB Bank provides custom working capital solutions
to commercial businesses from many industries. These
solutions are provided in all stages of business life cycles
during any economic conditions. TAB Bank does this
through Accounts Receivable Financing, Lines of Credit,
Equipment Finance, Asset Based Loans, Business Accounts, and Treasury Management Services.
Robert Gole is TAB Bank’s Vice President and Business
Development Officer based in Atlanta. Robert is an asset-based lending veteran with over thirty years of experience in the industry. He can be reached at 404-202-4870
or at [email protected].
TAB BANK PROVIDES $9.5 MILLION IN TRUCKING
EQUIPMENT LOANS IN 2014 4TH QUARTER
TAB Bank provided $9.5 million in trucking equipment
loans for 20 transportation companies during the 4th
quarter of 2014. Based in different regions of the country,
these companies represent a broad spectrum of trucking
entities including one-truck owner-operators and small and
large fleets.
“Trailer sales and Class 8 truck sales had a phenomenal
year throughout the transportation industry. In 2014, we
continually read reports of trailer and truck sales and
www.uba.org
orders eclipsing previous records. Our lending volume for
financing trucking equipment mirrored these numbers. We
booked $48.4 million in new trucking equipment loans for
the year which represents a 55% increase from the $21.5
million in equipment we financed in 2013. We are extremely thrilled with this growth as it signifies a healthy
and growing transportation sector of the economy. Many
trucking companies and fleets upgraded their equipment
throughout the year and we were poised and ready to meet
their financing needs. It will be exciting to see if this momentum will carry over into 2015,” commented Jan Allen
Ackley, Chief Lending Officer at TAB Bank.
While FDIC-insured TAB Bank provides working capital
and other customized financial solutions to a variety of
industries such as manufacturing, staffing, and technology, the bank’s first industry was trucking. In addition to
Equipment Finance, these financial solutions are provided in the form of Accounts Receivable Financing, Asset
Based Loans, Lines of Credit, Business Accounts, and
Treasury Management Services.
TOWN & COUNTRY BANK
‘UTAH BUSINESS’ MAGAZINE NAMES TOWN & COUNTRY BANK PRESIDENT AS CEO OF THE YEAR
The state’s leading business publication, Utah Business,
has given its 2015 CEO of The Year Award to Town &
Country Bank president Bruce Jensen. The award “honors executives who exude innovation, show sound business
judgment and have seen proven financial success.”
Jensen is one of nine leaders to receive the award this year.
Other recipients include executives from fields ranging
from technology to non-profit.
Jensen is widely seen as an industry
innovator. Combining the functions of
teller, new accounts representative and
customer service agent into one role, his
concierge banker model was one of the
earliest prototypes for today’s “universal banker”—a concept that has recently
gained mainstream acceptance at many
banks across America.
TOWN & COUNTRY BANK LEADER RECEIVES ANOTHER MAJOR AWARD
For the second time this month, Town & Country Bank
CEO Bruce Jensen has received notable recognition.
The Western Independent Bankers Association presented Jensen with its 2015 “Community Banker of the Year
Award” at its annual conference last week in Maui, Hawaii. The association, comprised of community banks in
13 western states and U.S. territories, chose Jensen from 11
nominees who had demonstrated significant achievement
in their service areas.
Earlier this month, Utah Business magazine presented Jensen with its 2015 “CEO of the Year” award in Salt Lake
City at the Grand America Hotel.
Town & Country Bank is Washington County’s only locally owned and headquartered financial institution. The
seven year old bank generated record profits in 2014, and
was consistently ranked among the top 3 to 5 percent of
all U.S. banks in terms of profitability for each quarter of
2014, according to Bank Trends.
U.S. BANK
Having led the organizing effort to form Town & Country
Bank, Jensen became its CEO when the bank opened in
2008. Despite a challenging economy, strict regulatory
limitations on new banks’ growth and without economies
of scale, he has guided Town & Country to high levels of
profitability. The bank ranked between the top 3 and 5
percent of all U.S. banks for each of the four quarters in
2014, according to Bank Trends. Town & Country has
also posted profits in 14 of the last 15 quarters.
U.S. BANK NAMED AS A 2015 WORLD'S MOST ETHICAL
COMPANY BY THE ETHISPHERE INSTITUTE
U.S. Bank, announced today that it has been recognized by
the Ethisphere Institute, the global leader in defining and
advancing the standards of ethical business practices, as a
2015 World’s Most Ethical Company ®. The World’s Most
Ethical Companies designation recognizes those organizations that have had a material impact on the way business

Issue 1. 2015
Bank Kudos — continued on page 16
15
Bank Kudos

Bank Kudos — continued from page 15
is conducted by fostering a culture of ethics and transparency at every level of the company.
year and is inviting local nonprofits to apply for charitable
grants in 2015.
“We are thrilled to be honored as a World’s Most Ethical
Company®, which is a distinct recognition for a large
U.S.-based banking company,” said Richard Davis, chairman, president and chief executive officer for U.S. Bank.
“A strong financial performance and a strong commitment to ethical leadership and corporate behavior are the
cornerstone of the U.S. Bank culture and purpose. We are
proud to be bankers and to have the privilege to be trusted
partners for our customers, communities and shareholders.”
In 2014, the $1.6 million-plus was distributed among more
than 200 agencies statewide, and funds were used to support education, the arts and human services. Helping with
community challenges such as hunger, affordable housing
and the environment also were special focus areas for
Wells Fargo.
Being an honoree underscores U.S. Bank’s commitment to
leading ethical business standards and practices ensuring
long-term value creation for key stakeholders, including
customers, employees, suppliers, regulators and investors.
U.S. Bank is the fifth largest commercial bank in the U.S.
and the largest U.S.-based bank being honored by the Ethisphere Institute this year.
“Our commitment to high ethical standards guides everything we do” said Jennie Carlson, executive vice president,
Human Resources. “This commitment defines who we are
today and drives how we’re managing, investing and innovating for the future. It drives the core values that shape
our culture and brand. This is truly a privilege and honor
for all 67,000 U.S. Bank employees around the globe.”
Scores are generated in five key categories: ethics and compliance program (35%), corporate citizenship and responsibility (20%), culture of ethics (20%), governance (15%)
and leadership, innovation and reputation (10%).
The full list of the 2015 World's Most Ethical Companies
can be found at http://ethisphere.com/worlds-most-ethical/wme-honorees/.
WELLS FARGO
WELLS FARGO DONATES $1.6 MILLION TO UTAH
NONPROFITS IN 2014
Wells Fargo announced that it gave more than $1.6 million to schools and nonprofit organizations in Utah last
16
Eligible nonprofits are now invited to visit www.wellsfargo.com/donations to review Wells Fargo’s giving guidelines, eligibility requirements and online application for
submitting a grant request for 2015.
“Wells Fargo is committed to providing vital financial
resources to the local communities we serve. It’s a commitment that is core to the vision and values of Wells
Fargo,” said Utah Regional President Dee O’Donnell. “We
strongly believe that our company is only as successful as
the communities where we do business – the very neighborhoods where our customers and team members live
and work! Wells Fargo is honored and takes great pride in
being a charitable-giving leader in Utah.”
Wells Fargo’s corporate giving is guided by the principle
of finding local solutions for local needs. Team members
living and working in Wells Fargo’s communities direct
corporate giving to those organizations and programs considered vital to the communities they call home.
WELLS FARGO GIVES $16,000 TO UTAH FOOD BANK
TO HELP FEED HUNGRY FAMILIES IN SAN JUAN
COUNTY
Wells Fargo has donated $16,000 to the Utah Food Bank
to start a mobile food pantry at two schools in San Juan
County.
A truck full of food will depart the Utah Food Bank's Salt
Lake City warehouse, travel 300 miles, and deliver food to
hungry families in Blanding and Monticello each week. In
addition to Wells Fargo's $16,000 grant, our team member
volunteers will distribute the food to those in need. Blanding High School and Monticello Elementary School administrators will work directly with the Utah Food Bank to
www.uba.org
identify families within their student bodies who need the
food most. These families will each receive about a week's
worth of groceries.
Wells Fargo representatives recently spoke to council members in Blanding and Monticello about the launch of the
new mobile food pantry during their city council meetings.
"Wells Fargo is delighted to be teaming up with the Utah
Food Bank, Blanding High School, and Monticello Elementary School to help provide food to hungry families
in San Juan County," said Denise Winslow, Wells Fargo
Community Affairs manager. "This truly has been a collaborative effort, yet could not have been realized without
the leadership and passion of our remarkable team members in Blanding and Monticello who will be volunteering
their time each week to make sure families get the food
they need. Wells Fargo’s $16,000 donation to the Utah
Food Bank will fund the mobile food pantry for the next
18 months, and we hope it is a success and makes a real
difference in the community."
WELLS FARGO VOLUNTEERS HELP PREPARE 210,000
MEALS FOR CHILDREN IN NEED
Wells Fargo team member volunteers, accompanied by
their family and friends, recently helped assemble, pack,
and box meals for hungry children around the world.
Issue 1. 2015
More than 150 Wells Fargo volunteers joined forces with
hundreds of other community-minded individuals and
nonprofit organizations at a mobile food packing event in
downtown Salt Lake City.
Over 210,000 meals were assembled, which will feed about
500 kids one meal each day for a year. Packaged meals
consisted of rice, soy powder, dehydrated vegetables, and
protein powder. The meals will be distributed to several
different countries.
The mobile food packing event was organized by Feed My
Starving Children, a nonprofit committed to feeding hungry children and ending world hunger. Founded in 1987,
the group hosts packing events across the U.S. and ships
the meals to nearly 70 countries throughout the world.
COMMUNITY DEVELOPMENT CORPORATION OF
UTAH HONORS WELLS FARGO’S JARED GLEUE WITH
COMMUNITY BUILDER AWARD
Community Development Corporation of Utah (CDCU)
recently honored Jared Gleue, Wells Fargo Community
Development officer for Utah, with its Community Builder
Award.

Bank Kudos — continued on page 18
17
Bank Kudos

Bank Kudos — continued from page 17
"From time-to-time, there are people and organizations
which make such extraordinary contributions to the advancement of our affordable homeownership and neighborhood revitalization mission, that our organization and
board of directors are compelled to recognize them with
our Community Builder Award," said CDCU Executive
Director Darin Brush. "This year, the CDCU staff and
board are very pleased to present this distinguished award
to Jared Gleue!"
Gleue was presented the award during CDCU's annual
meeting in Salt Lake City.
"Since taking the CRA reins at Wells Fargo almost four
years ago, Jared has opened many new opportunities for
CDCU to partner with Wells Fargo," Brush added. "This
partnership has blossomed, and has benefitted many, many
families served by CDCU. For instance, Jared had helped
secure more than $100,000 in funding for CDCU’s neighborhood revitalization efforts and housing counseling
programs. He has also introduced CDCU to Wells Fargo’s
volunteer programs, which provide free labor to work on
affordable housing projects."
CDCU is a 501(c)(3) non-profit organization founded in
1990 to provide solutions for distressed neighborhoods in
18
Salt Lake City. Since then, CDCU has grown to be a major
affordable housing provider throughout Utah. CDCU
builds new single-and multi-family housing, rehabilitates
existing housing stock, and works to revitalize neighborhoods around the state.
WELLS FARGO VOLUNTEERS SALVAGE BICYCLE
PARTS TO PROMOTE CYCLING AND EDUCATIONAL
PROGRAMS
Nearly a dozen Wells Fargo team members recently spent
an afternoon removing and salvaging parts from damaged
bicycles to help a local nonprofit fulfill its mission of
promoting cycling as an effective and sustainable form of
transportation.
Founded in 2002, the Bicycle Collective provides refurbished bicycles and educational programs to the community, focusing on children and lower-income households.
This commitment to providing refurbished bicycles for
nominal resale and charitable purposes has put thousands
of bikes back into the community. Last year, the nonprofit
refurbished 1,989 bicycles and donated 559 bikes to low-income families.
www.uba.org
"The Bicycle Collective helps to provide bicycles to kids,
families, and adults in need and who would otherwise be
unable to enjoy them," said Beth Thomas-Rosswog with
Wells Fargo Custom-Home Construction Finance in Salt
Lake City. "Through its community education courses,
they offer an Earn-A-Bike program where kids attend a
six-week course to learn how to maintain, repair, and care
for a bicycle. After completing the program, these kids
each earn and get to keep a refurbished bicycle of their
own!"
The Bicycle Collective has six Utah locations. Three of its
community bike shops – Ogden, Provo, and Salt Lake City
– offer full tool sets for bicycle repair at no charge.
ZIONS BANK
ZIONS BANK MARKS 21ST YEAR AS UTAH’S TOP
SMALL BUSINESS LENDER
Zions Bank is celebrating its twenty first consecutive year
as the top provider of Small Business Administration 7(a)
loans in Utah.
ZIONS BANK SALES TEAM WINS THREE STEVIE
AWARDS
Zions Bank won three awards at the ninth annual Stevie
Awards for Sales & Customer Service held Feb. 27 in Las
Vegas, Nevada.
The bank’s Commercial Sales Team received a Gold award
as Sales Department of the Year in the Financial Services
category. It also took top honors in Sales Training or
Coaching Program of the Year. Rob Jeppsen, Zions Bank
senior vice president of commercial sales, was honored
with a silver award in the Senior Sales Director of the Year
category.
The Stevie Awards for Sales & Customer Service is an
international program recognizing sales, customer service,
and contact center excellence. More than 1,900 entries
from organizations worldwide were submitted to this
year’s competition. n
During the fiscal year ended Sept. 30, 2014, Zions approved 265 SBA 7(a) loans totaling more than $39.9 million. That represented 25 percent of the 1,049 SBA-backed
loans approved in the administration’s Utah District.
The capital provided through Zions Bank’s loans to Utah
businesses allowed them to hire 873 new employees and
maintain 2,689 positions, according to SBA data.
Zions Bank also continues to be a leader in marketing SBA
loans to women- and minority-owned businesses, which
accounted for 27 percent of the loans approved by the
bank during fiscal year 2014. The average loan size was
less than $135,000, a strong indicator of the bank’s support
for small businesses in Utah.
SBA 7(a) loans are the most basic and most used type of
loan in SBA’s business programs. The program offers up to
25-year, fully amortized loans that may be used for most
business purposes, including the purchase of real estate for
business operations, acquisition of equipment, and working capital.
Issue 1. 2015
19
Bankers on the Move
Mathew Ashton was recently hired by Town &
Country Bank as a Vice President & Loan Officer
in its Sandy loan production office. Matt has special
expertise in structuring SBA and USDA lending in
Utah, and he holds a degree in law, as well.
Steve Brough has been promoted by Zions Bank to
serve as Director of Commercial Banking for the
bank’s Southern Utah Region. Brough oversees all
aspects of commercial lending in the region, which
includes 11 financial centers across Washington,
Kane, and Iron Counties. He also serves on the
bank’s Southern Utah regional executive management committee.
Brough joined Zions Bank 15 years ago, and has worked in both
retail and commercial operations.
Michael Brown has been promoted to Mortgage Officer for
Central Bank. Having worked for Central Bank for over 6 years,
most recently as a Mortgage Loan Processor, Brown has a solid
understanding of the lending process and is a perfect fit for this
position.
Jordan Duckett has joined Central Bank as an Officer in the American Fork office. With a Bachelor’s
degree in Business Management from UVU, and
over 5 years of experience in the banking industry,
Drake is a welcomed asset at Central Bank.
Marte Eyre was recently hired as BSA/AML officer
at Town & Country Bank. Marte began her career
in 1994 as a teller and later assumed roles in bookkeeping, compliance and BSA.
Jacob Heugly has joined Zions Bancorporation as
its managing director of fee income. In addition to
coordinating fee income across the Bancorporation,
Heugly heads the Corporate Treasury Management
group and is responsible for growing this business
across Bancorporation affiliates in 11 Western and
20
Southwestern states. Heugly previously worked as Executive Vice
President of Corporate Services at Zions Bank, which he joined
in 1998.
Daniel Rodrigue has joined TAB Bank as National Sales Manager. Rodrigue will be based in West
Palm Beach, FL and will report to TAB’s Senior
Vice President of Sales and Marketing, Justin
Gordon. He will oversee all personnel and functions as it relates to TAB’s nationwide sales efforts.
TAB maintains Business Development Officers across the United
States.
Jamie Schwarzenbach has been promoted by Zions Bank to
senior vice president of consumer and small business product
management. Schwarzenbach is responsible for the strategy and
development of consumer and small businesses deposit products
that create value. Schwarzenbach has 14 years of experience in
banking, financial analysis, and product and project management.
She graduated from the University of Utah with a bachelor’s
degree in economics.
Chip Scoggins joins TAB Bank’s Business Development Team as Vice President and Business Development Officer. Chip will be based in Dallas, TX
and will be responsible for sourcing new business
opportunities by providing asset-based and factoring
working capital facilities to commercial entities with
annual revenues of $2 million to $150 million.
Shannon Walker was recently promoted to Vice
President and Loan Officer for Town & Country
Bank. Shannon joined the bank in 2008 as a Business Development Officer. She moved to the Loan
Department in 2011, and developed expertise in
SBA and construction lending. n
www.uba.org
.bank Frequently Asked Questions
Courtesy American Bankers Association
Why .bank?
T
he .com world has become overcrowded, making it difficult
for banks to stand out. Thousands of new domains – including .BANK – are making their way to the Internet. ABA
partnered with banking industry participants to establish fTLD
Registry Services to operate .BANK and ensure it is governed in
the best interests of banks and their customers.
The new .BANK domain opens up much needed virtual real
estate and provides new marketing and branding opportunities.
Only verified members of the banking community will be able
to register a domain. The .BANK domain is a trusted, protected, and more secure location online for banking services. The
.BANK domain establishes a solid foundation on which a bank
can securely communicate with customers, stakeholders and regulators. Directed by banking and security experts, .BANK will be
the recognized platform for growth and innovation in the banking
sector.
Powered by Verisign, the new domain will have a higher level of
security than non-financial domains and adhere to 31 strict standards enhanced security requirements developed by ABA and its
partners in fTLD Registry Services. In addition to strict registration requirements, the new domain will help prevent users from
being redirected to fake bank websites, make it more difficult for
criminals to create spoofed emails from a .BANK website and
provide a higher level of encryption. These features will enhance
customer trust in an era of increasing cybersecurity threats.
Frequently Asked Questions
Who is eligible for a .BANK domain?
Only verified members of the global banking community are
eligible to register domains. For banks it will include charter
verification by the registrant's regulator. Please see the .BANK
Registrant Eligibility Policy for complete eligibility requirements.
Can I buy any domain I want if I am an eligible registrant?
You can only purchase domains that correspond to your company's trademarks, trade names or service marks. For guidance on
selecting domains, please see the .BANK Name Selection Policy
or contact [email protected] for more information.
When can I purchase my .BANK domain?
General Availability for .BANK is estimated in June 2015. Before
n
Issue 1. 2015
Why .bank? — continued on page 22
21

Why .bank? — continued from page 21
The new .BANK domain opens up much needed virtual real
estate and provides new marketing and branding opportunities.
Only verified members of the banking community will be able
to register a domain. The .BANK domain is a trusted, protected,
and more secure location online for banking services. The .BANK
domain establishes a solid foundation on which a bank can securely
communicate with customers, stakeholders and regulators.
General Availability, there will be Sunrise and Founders Periods.
See more below about the registration periods.
Where can I purchase my .BANK domain?
Domains may be purchased from fTLD's Approved Registrars.
Why isn't my current registrar on the list of approved registrars?
fTLD requires its registrars to comply with enhanced operational and security requirements that contribute to .BANK being a
protected, trusted and more secure environment for domain owners and their customers. As such, some registrars may elect not to
support the registration of .BANK domains.
It may also be that your registrar hasn’t yet determined whether
or not they will support .BANK. By early May 2015, fTLD anticipates that a majority of the registrars that elect to sell .BANK
domains will be listed at Approved Registrars so please check
back regularly.
What does a .BANK domain cost?
.BANK registrars are responsible for setting their domain registration fee. Domain registration fees will vary from registrar-to-registrar based on a number of factors including additional services
they may offer to registrants. fTLD is responsible only for setting
the fee it charges to registrars and it is the same fee for all.
Since we already have a .COM address, are we automatically
entitled to register the same name in .BANK?
No. Domain names will be awarded on a first-come, first-served
basis. If you own the trademark on the name to the left of your
.COM address, you may register the trademark with ICANN's
Trademark Clearinghouse and apply for the .BANK version of
that domain name during the Sunrise period.
How does the .BANK verification process work?
fTLD has contracted with Symantec to ensure that registrations are made only with organizations that meet the eligibility
22
requirements and verification is performed at the time of initial
registration and at each renewal or every two years, whichever
comes first.
Who is Symantec and why are they involved in the verification
process? I thought verification was being handled by fTLD?
fTLD is responsible for approving requests for domains in
.BANK. fTLD has contracted with Symantec to serve as its Registry Verification Agent. Symantec is responsible for reviewing
the information provided by the registrar/registrant and providing
a recommendation to fTLD to approve or deny a request. fTLD
makes the final decision.
How long does the domain registration and verification take?
Verification is initiated as soon as your registration is processed
by your registrar and approval is generally expected to conclude
within days or less of the request. However, because the verification process requires telephone contact with the registrant's
organization to verify certain information (i.e., the requestor is
a full-time employee of the company and it authorized to make
registrations on their behalf), the verification may take longer to
complete. Registrants can expedite verification by ensuring that
all individuals that may be contacted are aware of the need to
respond to these requests as quickly as possible.
What's the best way to get my desired domain if I am not eligible to participate in the Sunrise period?
Domain names in all registration periods in .BANK will be made
on a first-come, first-served basis. To ensure you have the best
chance at getting your desired domain, you should engage with
an Approved Registrar as early as possible.
Can my company pre-register for a .BANK domain?
No. There are companies unrelated to fTLD that will try to sell
"pre-registration," but there is no such thing for .BANK. The only
registrations that will take place before General Availability will
occur during the Sunrise and Founders periods.
www.uba.org
What is an "expression of interest?"
Similar to "pre-registration," an "expression of interest" does not
guarantee a domain name. There are companies that will falsely
claim to give you priority registration. The only registrations that
will take place before General Availability will occur during the
Sunrise and Founders periods.
Once I register our .BANK domain, do I immediately need to
stop using my current domain name?
No. You can continue using your current domain.
If you plan to activate your .BANK domain, you can use the
.BANK Transition Guide to help you plan the use of your
.BANK domain. You may also want to consider initiating a
plan for your transition to your .BANK domain as soon as you
know what new .BANK domain you will be using. The Guide is
currently under development and will be available soon. Once the
Guide is available, you should have the information you need to
plan the details for using your .BANK domain.
How does my organization transition our website and other
services to our .BANK domain?
Although there are additional steps to using your .BANK domain
for your website, email and other services, there are specific steps
that need to be taken to complete the process for each service.
fTLD is developing a .BANK Transition Guide that will provide
information about these steps that are needed to take advantage
of the protected, trusted, more secure and easily identifiable environment provided with a .BANK domain.
Your registrar or core service provider may already be working
with you to develop a transition plan addressing the tasks identified in the Guide. If not, contact them to see how they can assist
your transition or contact [email protected] if you have additional questions.
ensure full disclosure of domain registration information so
bad actors cannot hide.
Who is responsible for enforcing the enhanced Security Requirements and Policies in .BANK?
fTLD and in some cases its Registry Service Provider, Verisign,
will be responsible for monitoring compliance with the relevant
requirements. Registrars will play a role in enforcement as they
have the direct relationship with the registrant. fTLD always
retains the right to take action if the registrar fails to do so.
What is gTLD?
gTLD - or generic top-level domain - refers to the letters to the
right of the dot at the end of a web address. Common gTLDs are
.COM, .ORG, .NET
What is fTLD?
fTLD Registry Services, LLC was formed in 2011 by a coalition
of banks, insurance companies and financial services trade associations from around the world. In 2012, fTLD submitted community-based applications to the Internet Corporation for Assigned
Names and Numbers (ICANN) for the .BANK and .INSURANCE gTLDs. fTLD was granted the right to operate .BANK on
September 25, 2014, and its application for .INSURANCE is in
the contracting phase with ICANN.
What is ICANN?
The Internet Corporation for Assigned Names and Numbers,
or ICANN, is an oversight body responsible for the stability and
unification of the Internet. Its key responsibilities include policy
development for existing and new generic Top-Level Domains
(gTLDs). In June 2011, ICANN's board of directors authorized
the launch of the New gTLD Program. The program's goals include enhancing competition and consumer choice, and enabling
the benefits of innovation via the introduction of new gTLDs.
What are the enhanced Security Requirements in .BANK?
fTLD requires compliance with a set of requirements that are
not currently mandated by the operators of other commercially
available gTLDs, including:
• Mandatory Verification of Charter/Licensure for Regulated
Entities ensures that only legitimate members of the global
banking community are awarded domain names.
• Mandatory Re-verification of Registration Data every two
years or at domain renewal, whichever comes first, ensures
ongoing eligibility for domain names.
• Domain Name System Security Extensions (DNSSEC) ensures that Internet users are landing on participants' actual
websites and not being misdirected to malicious ones. fTLD
will require that all domain levels, from fTLD as the top-level registry operator to your entity as the registrant, utilize
DNSSEC for domains that resolve on the Internet.
• Email Authentication to mitigate spoofing, phishing, and
other malicious activities propagated through emails to
unsuspecting users.
• Multi-Factor Authentication to ensure that any change to
registration data is made only by authorized users of the
registered entity.
• Enhanced Encryption to ensure security of communication
over the Internet to prevent eavesdropping, data tampering,
etc.
• Prohibition of Proxy/Privacy Registration Services to
Issue 1. 2015
.BANK Timeline
Sunrise Period
May 18 - June 16, 2015
Only trademark holders who have registered their bank’s trademark with ICANN’s Trademark Clearinghouse may purchase
domains during the sunrise period. For more information about
the Trademark Clearinghouse, see our FAQs.
Founders Period
June 17 - June 23, 2015
Founding members of fTLD can register domains.
General Availability
June 24, 2015 – Ongoing
Only verified members of the banking community will be eligible
for a .BANK domain. Domains will be assigned on a first-come,
first-served basis. n
For more information on .bank, visit aba.com/dotbank or contact ABA’s Doug Johnson at
[email protected] or 1-800-BANKERS, ext. 5059 or Sam Lisker at [email protected] or
1-800-BANKERS, ext. 5581
23
Yield Curve Changes and Management of the Investment Portfolio
In Praise of the “Modified” Barbell
By Jeffrey F. Caughron
B
ank investment strategies must be
developed within a framework that
considers multiple dimensions of
risk and reward. We begin with a "big
picture" view of the bank and its balance
sheet. The asset/liability posture, liquidity
position, tax considerations, and expectations for loan demand and deposit growth
must all be taken into account. Along
with these factors, management must also
consider the shape of the yield curve and
the cash flow profile of the investment
portfolio. This is important since there are
separate and distinct strategies that make
sense for a steepening versus flattening
yield curve. Textbook portfolio management tells us that when the slope of the
yield curve flattens, a duration-weighted
combination of short and long maturities
will generally perform better than continuous cash flows across the time horizon.
On the other hand, if the curve steepens
a laddered cash flow of maturities is
preferred.
As an example, we can examine the effects of a change in yield
curve slope on positions in three Treasury Notes: a 2-year maturity, a 10-year maturity, and a 4-year maturity which has a duration
that is roughly the average of a weighted combination of the 2and 10-year positions. We can focus on the relative price changes
for the three different bonds and assess the change in price or
market value for a combination of 2-year and 10-year bonds
versus the 4-year bond.
If we look at the actual behavior of Treasury yields from yearend 2013 through 2014, we see a substantial flattening of the
curve. For the three bonds in our example, the 2-year yield rose
by 28 bps, while the 10-year fell by 85 bps. Meanwhile, the 4-year
maturity was virtually unchanged. So when we do the math, we
can see the duration-weighted barbell combination of 2s and 10s
outperformed the single 4-year maturity. This is because the price
appreciation of the 10-year more than offset the depreciation of
the 2-year, so that the net effect was an unrealized gain on the
combination. All the while, the middling 4-year maturity sat
24
quietly and ended the period at precisely the same yield with no
change in price. Even if the duration weighting requires a four-toone ratio of 2 years vs. 10 years, the combined position wins.
There is much more to the "modified barbell" structure that we
generally recommend for bank portfolios. The short end of the
barbell provides a source of re-investable liquidity; the longer end
of the barbell can be populated with high-grade bank-qualified
municipal bonds (assuming the bank is fully taxable); and the
portfolio can achieve high tax-equivalent yield to meld with the
liquidity ladder. In combination, this "modified barbell" provides
the optimal mix of liquidity and yield, making it a high-performance strategy. n
Jeffrey F. Caughron, Chief Operating Officer/Managing Director of
The Baker Group LP, has worked banking, investments, and interest-rate
risk management since 1985 and currently serves as a market analyst
and portfolio strategist. Contact: 800-937-2257, jcaughron@GoBaker.
com.
www.uba.org
Salvation for Tellers
in a Digital World
By Josh Banta, VP Service and Technical Sales, Data Business Equipment, Inc.
I
n the age of digital media, investing in
your tellers may seem counterintuitive.
Most banks that I visit with don’t seem
very interested in products that require
human intervention. The drive in the industry is to outsource any and all functions
possible to the consumer. Of course this is
all done to be more convenient to the customer. Why not be able to take a picture
of a check while I am sitting on my couch
and deposit it into my bank? The solution
is great, but is there real service there?
Given the transition in banking to web-enabled services, one has to wonder, will
the teller survive? Nationally tellers are
declining at a rapid pace. Since 2007 the
number of tellers in the US has decreased
by 13.2% according to Bureau of Labor
and Statistics. Teller salaries are also
decreasing. In 2013 the average teller
salary decreased by 6.7% after adjusting
for inflation. These factors are leading to a
smaller pool of talent from which to pull
and eventually will lead to turnover.
So why should we continue to staff the
teller line? The answer is that customers
Issue 1. 2015
Video teller allows this to happen while
enhancing your teller’s reach. Now
instead of servicing one branch, that
same outstanding teller can assist several
branches all within a matter of minutes.
While completing simple and complex
transactions, video tellers have the ability
to connect with customers and service
them in a much more efficient and expedient manner. The hardware available today
will allow the teller to complete about 90%
of the functions of a physical teller line
wherever the device resides.
With the machines doing the heavy lifting
of counting and balancing, banks have
the ability to reinvent the teller position.
They can now start hiring a different skill
set. A person who can truly connect with
a customer and understand what it takes
to build a relationship. Someone who
doesn’t have to be concerned with joining
the $100 club when their drawer doesn’t
balance. Many banks have these skills
already at their teller line, but just need
the technology to uncuff their people and
allow them to flourish. With a retooled
teller staff, banks can focus on cross-selling
and satisfying their customer needs, one
session at a time. In the recently released
North America Digital Banking Survey
from Accenture, 55% of customers said
they want their bank to proactively recommend products or services that can help
meet their financial needs.
crave the human interaction. If we could
simply place machines outside and have
our customers do all of their banking
through them, the ATM would have long
since destroyed the teller line. If mobile
banking was the answer, banks would see
much higher adoption rates than the 15%
that I typically hear. The fact is that bank
customers still want to see a face while
conducting transactions.
There are additional reasons why we need
tellers. Oftentimes the transactions are
too complicated for self-service channels.
Perhaps I want to deposit three checks
along with some cash, but I also need to
split that deposit to two different accounts.
What if I need to make a loan payment?
Most ATM’s can’t accomplish these functions. We also have consumers who are
just “teller addicts”. They visit the branch
because that is their social outing for the
day. It is a time to connect with people
they know and complete a transaction or
two as well. Both of these scenarios offer
opportunities for banking personnel to
truly shine.
The time is upon us for branch reinvention. It isn’t sufficient to simply roll out
digital products with the hope that your
customers will be content. Today’s consumer expects an “all-in” approach, meaning all services must be equally convenient
so they can choose how to do business
with you. Your physical strategy must
compliment your digital strategy or the
vision of the bank may look fragmented.
Tellers have long been the face and the
image of the bank. Video teller technology allows that image to be present in a
new environment. Unleash your tellers’
potential and allow them to do their part
to bring the bank into the future. n
For more information, please contact DBE at finsales@
databusinessequipment.com or visit databusinessequipment.com\branchofthefuture. Data Business Equipment,
Inc. has been providing technology solutions to the
banking industry in the Midwest since 1968. DBE is also
the largest reseller of NCR products in the area, including
APTRA Interactive Teller.
25
Keeping A Customer After You Turn
Them Down For a Loan
A
26
s a banker, you have to say no a lot. With the increasing
amount of government regulations surrounding small
business loans, turning down small business owners is
becoming more and more common. The problem is, the person
sitting across from you is more important than just a potential
loan customer.
When a business owner is turned down for a small business loan,
the first thing they do is look for other sources. A Harvard study
found small business owners usually search three options—which
will most likely include your direct competitors. If they secure the
loan with one of them, you are very likely to lose their current
and future deposits along with other financial services.
Understanding Small Businesses Total
Client Value
Customer Lifetime Value Doesn’t Change
the Facts
A study from Novantas states that a business’ Customer Lifetime
Value (CLV) is five times higher than an average consumer. The
combination of higher average deposits and other additional
financial services makes businesses a major contributor to your
banks success.
Customer Lifetime Value for small businesses is an important
variable to consider, but it can’t change your qualification requirements. It’s true that small businesses are five times as valuable,
but they are also more risky, so much so that you have to turn
away 90% of them.
When a small business comes in your office looking for a loan it’s
important to not only evaluate their loan qualifications, but also
evaluate their CLV. If you have to turn them away you may be
losing more than just the loan revenue. In a recent survey we did
here at Lendio, we found that 74% of small business borrowers
would switch banks to get a loan.
Lending to under-qualified borrowers is a risk you cannot take,
but the danger of losing a customer because of a turndown is also
a serious concern. These factors are driving lenders to adopt new
relationships and form partnerships with organizations that are
beneficial to banks and their under qualified customers because
they can accept the risks associated with lending to less-than-perfect borrowers.
www.uba.org
Finding New Ways to Say “Yes”
1.
Smart bankers are looking for new ways to mitigate the risk of
losing the business of under-qualified small business owners by
partnering with lending companies with lower lending criteria. By
partnering together with other companies, banks are effectively
increasing their lending envelope without having to adjust their
appetite for risk appetite. Although the bank is still not servicing
the loan, they are helping their customers find a solution to their
needs—and keeping their deposit relationships.
This approach helps the bank influence the next steps their customers take to find a loan. Instead of showing a customer to the
door, so that they continue on to their competitor’s door, banks
are able to refer customers to a partner that is working with them
instead of trying to steal them with lower rates. By helping the
under-qualified businesses, banks are able to develop their customer relationships until the business is better qualified.
This is an initiative that progressive banks are taking to protect their current book of business. Over the past few months,
business-lending news has been full of banks looking for ways to
retain relationships with clients who fall just outside their lending
criteria. As an example BBVA Compass partnered with OnDeck
to provide additional loan options to businesses that fell outside
their criteria.
2.
Single Product Solution: These are companies that specialize
in one specific type of lending product. Since they focus on
one type of loan they generally have very fast turnaround on
applications and approvals. OnDeck, Can Capital and Hawkeye are great examples.
Marketplace Providers: These companies create networks of
lenders a bank can leverage to provide multiple loan options.
The benefits here include more options in one place, allowing the bank to service a wider envelope of qualifications and
needs. Lendio is a great example of this type of partner.
In either approach it’s important to make sure the company you
partner with has a good reputation. All long-term partnerships
are based on trust and a good partner will help you improve your
customers’ experience.
Losing customers should never be an option, but neither should
approving high-risk loans. Finding new ways to assist under-qualified businesses helps you protect your book of business and grow
into the future as businesses develop and become more qualified. n
Selecting a Partner
With the goal of your bank to keep customers, it’s important to
partner with the right company. There are really two different
types of providers to consider:
Brock Blake
I'm the CEO of Lendio, and my passion is to make small business
lending simple for the 30 million Main Street businesses across the
USA. Thankfully, we are growing rapidly by helping over 100,000
small businesses each year get matched to a lender to start or grow
their business. As an entrepreneur, I've raised over $10M during my
career. I believe that successful companies start with passion to solve
a major problem, great teams, and a superior company culture. While
business accomplishments can be a nice ego boost, my most important
accomplishments come from being a husband and father of 3.
We speak banking.
At Chapman, our lawyers are on the front lines of finance, helping our bank clients
and their customers document, structure, and restructure their financing transactions.
Commercial Lending
Mergers and Acquisitions
Consumer Finance Litigation
Bankruptcy, Restructuring, and Workouts
Real Estate and Environmental Law
Securitization and Structured Finance
Securities and Regulatory Compliance
Tax-Exempt/Taxable Bond Financings
We speak your language. Learn more at chapman.com.
Chicago
New York
Salt Lake City
San Francisco
Washington, DC
Attorney advertising material.
Issue 1. 2015
27
UB
UBA
A Associa te
Academy Mortgage
1220 E 7800 S
Sandy, UT 84094-7285
Tel: 801-233-3700
Contact: Crawford Cragun
Email:
[email protected]
Agri-Access
PO Box 396
McCammon, ID 83250
Tel: 208-320-2637
Contact: Chad Brown
Email: [email protected]
AMC Links
FPS GOLD
D.A. Davidson & Co.
Harland Clarke
3120 W. California Ave., Suite H
Salt Lake City, UT 84104
Tel: 801-977-9800
Contact: Matt Holladay
Email: [email protected]
8 Third Street North
Great Falls, MT 59401
Tel: 406-268-3084
Contact: Tom Hayes
Email: [email protected]
Deluxe Corp
1525 W. 820 N.
Provo, UT 84601-1342
Tel: 801-429-2126
Contact: Matt S. DeVisser
Email: [email protected]
4867 Harold Gatty Drive
Salt Lake City, UT 84116-2815
Tel: 801-288-2133
Contact: Michael Kelly
Email: [email protected]
InnoVentures Capital Partners
3051 W. Maple Loop Drive, Suite 325
Lehi, UT 84043
Tel: 866-439-9546
www.amclinks.com
5820 W Harold Gatty Dr
Salt Lake City, UT 84116
Tel: 801-725-6848
Contact: Kevin Hafen
Email: [email protected]
515 South 700 East, Suite 2A
Salt Lake City, UT 84102
Tel: 801-741-4200
Contact: Steve Grizzell
Email: [email protected]
Bank Financial Services Group
Dorsey & Whitney LLP
Jones Waldo
Bankers’ Bank of the West
Eide Bailly LLP
Lendio
22650 Echo Lake Road
Moreno Valley, CA 92557
Tel: 951-712-1106
Contact: Larry Rowley
Email: [email protected]
1099 18th St., Suite 2700
Denver, CO 80202-1927
Tel: 303-291-3700
Contact: Dallas Kiburz
Email: [email protected]
BMA Banking Systems
2151 South 3600 West
West Valley City, UT 84119-1121
Tel: 801-978-0200
Contact: Keven Vawdrey
Email: [email protected]
Callister Nebeker & McCullough
10 E South Temple, Suite 900
Salt Lake City, UT 84133-1115
Tel: 801-530-7300
Contact: W. Jeffrey Fillmore
Email: [email protected]
28
Cintas Document Management
136 S. Main St., Suite 1000
Salt Lake City, UT 84101
Tel: 801-933-7365
Contact: Steven T. Waterman
Email: [email protected]
5929 Fashion Point Dr., Suite 300
Ogden, UT 84403-4684
Tel: 888-777-2015
Contact: Gary Smith
Email: [email protected]
Contact: Cheryl Knudson
Email: [email protected]
Federal Home Loan Bank of Seattle
1001 Fourth Ave, Suite 2600
Seattle, WA 98154
Tel: 206-340-2489
Contact: Eric Jensen
Email: [email protected]
Fiserv
618 Lafayette Drive NE
Albuquerque, NM 87106
Tel: 505-890-8449
Contact: Rob Durham
Email: [email protected]
170 S Main St., Suite 1500
Salt Lake City, UT 84101-1644
Tel: 801-521-3200
Contact: George Sutton
Email: [email protected]
10235 South Jordan Gateway
South Jordan, UT 84095
Tel: 801-858-3607 X156
Contact: Brock Blake
Email: [email protected]
McGladrey, LLP
515 S. Flower Street, 41st Floor
Los Angeles, CA 90071-2201
Tel: 213-330-4606
Contact: Todd Sorenson
Email: [email protected]
Moss Adams LLP
601 W Riverside Ave, Suite 1800
Spokane, WA 99201
Tel: 509-747-2600
Contact: Mike Thronson
Email: [email protected]
www.uba.org
Member s
Mountain West Small Business Finance
2595 E 3300 S
Salt Lake City, UT 84109-2727
Tel: 801-474-3232
Contact: Steve Suite
Email: [email protected]
Office Depot Office Max
281 West 2100 South
Salt Lake City, UT 84115-1830
Tel: 801-977-7994
Contact: Warren Schroer
Email: [email protected]
Promontory Interfinancial Network, LLC
1515 North Courthouse Road, Suite 1200
Arlington, VA 22201
Tel: 703-292-3462
Contact: Glenn Martin
Email: [email protected]
PwC
201 S. Main Street, Suite 900
Salt Lake City, UT 84111
Tel: 801-534.3883
Contact: Ryan J. Dent
Email: [email protected]
Ray Quinney & Nebeker P.C.
36 S State Street, Suite 1400
Salt Lake City, UT 84111-1451
Tel: 801-532-1500
Contact: Kevin Glade
Email: [email protected]
Sandler O’Neill + Partners, L.P.
1251 Avenue of the Americas, 6th Floor
New York, NY 10020
Tel: 212-466-7800
Contact: Avi Barak
Email: [email protected]
Issue 1. 2015
Scalley Reading Bates Hansen
& Rasmussen
15 West South Temple, Suite 600
Salt Lake City, UT 84101
Tel: 801-531-7870
Contact: Jonathan Rupp
Email: [email protected]
Travelers Insurance
6060 S Willow Drive
Greenwood Village, CO 80111
Tel: 720-200-8447
Contact: Janu Cambrelen
Email: [email protected]
Simpson & Company, CPAs
Utah Community Reinvestment
Corporation
Snell & Wilmer, LLP
Utah Housing Corporation
Systemax Corporation
Van Cott
Tanner LLC
WorldPay
The Baker Group
Zions Correspondent Banking Group
1111 E. Brickyard Road, Suite 112
Salt Lake City, UT 84106-2592
Tel: 801-484-5206
Contact: Kenneth R. Simpson
Email: [email protected]
15 W South Temple, Suite 1200
Salt Lake City, UT 84101-1547
Tel: 801-257-1900
Contact: Lori Newey
Email: [email protected]
4501 Alex Boulevard, Suite A
Springfield, IL 62711
Tel: 800-525-9995 X 126
Contact: Patrick P. Brue
Email: [email protected]
36 South State St., Suite 600
Salt Lake City, UT 84111-1400
Tel: 801-532-7444
Contact: Nate Heward
Email: [email protected]
2975 West Executive Parkway, Suite 139
Lehi, UT 84043
Tel: 800-937-2257
Contact: Brian Bates
Email: [email protected]
1165 East Wilmington Ave., Suite 200
Salt Lake City, UT 84106
Tel: 801-366-0040
Contact: Jo Stapley
Email: [email protected]
2479 South Lake Park Blvd.
Salt Lake City, UT 84120
Tel: 801-902-8290
Contact: Grant Whitaker
Email: [email protected]
36 South State Street, Suite 1900
Salt Lake City, UT 84111
Tel: 801-532-3333
Contact: Thomas T. Billings
Email: [email protected]
600 Morgan Falls Rd
Atlanta, GA 30350
Tel: 435-770-8384
Contact: Ben Bingham
Email: [email protected]
310 South Main Street, Suite 1400
Salt Lake City, UT 84101
Tel: 801-844-7854
Contact: Steve Campbell
Email: [email protected]
29
Hello challenge,
meet insight.
Richard Meene, Director
Whatever your challenge is, and wherever it is, you’ll find PwC providing insight,
perspective and solutions. PwC assists financial institutions like yours, throughout
the state of Utah and globally, with their most challenging issues, from regulatory
reform, stringent capital requirements, and risk management, to disruptive
technologies and others.
For more information, contact: Ryan Dent, Utah Banking and Capital Markets Partner,
at [email protected] / (801) 534 3883 or visit www.pwc.com/banking.
© 2015 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see
www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.
Utah Bankers Association
175 S Main Street, Ste 1420
Salt Lake City, UT 84111
PRSRT STD
U.S. POSTAGE
PAID
SALT LAKE CITY, UT
PERMIT NO. 508
This magazine is designed and published by The NewsLINK Group, LLC | 1.855.747.4003
Magazines | Newsletters | Annual Reports | Digital Media