South Dakota Bankers Association

South Dakota Banker
Your Premier Source to South Dakota’s Financial Services Industry | March 2014
INSIDE . . .
SDBA Seeks Candidates for 2014 Board Elections Page 7
Bankers Network with State Legislators in Pierre Page 12
SDBA Survey Results:
A Timely Tool to Promote Banks Page 14
Official Publication of the South Dakota Bankers Association | www.sdba.com
Lending
That’s All About
Your Bottom Line…
Not Ours
Your success is
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room to compete
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designed to make you
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“
Our local grain elevator
needed to expand. So I
put together a package
and was able to sell
a good portion of it to
United Bankers’ Bank. It
felt good to accommodate
a local business while
keeping the loan here at
the bank. And because
this was a highly visible
project, I think it reflected
well on us in the
community.”
– Scott Campbell,
President, First National
Bank of Frederick, S.D.
Call us … Partners!
United Bankers’ Bank
5024 S Bur Oak Place | Suite 208 | Sioux Falls, SD 57108
James Lee 605.254.3716 • Todd Holzwarth 605.214.0957 • www.ubb.com | Member FDIC
SDBA Board of Directors
Kevin Tetzlaff, Chairman
First Bank & Trust, Brookings
George Kenzy, Chairman-Elect
First Fidelity Bank, Burke
Rick Rylance, Vice Chairman
Dacotah Bank, Rapid City
Steve Hayes, Immediate Past Chairman
Dakota Prairie Bank, Fort Pierre
South Dakota Banker
Your Premier Source to South Dakota’s Financial Services Industry
March 2014 | www.sdba.com
Contents
Message from the Chairman . . . . . . . . . . . . . . . . . . . . . . . . . .4
Banking Industry Must Keep Taxation Campaign Alive
From the Executive Office . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Term Ending April 30, 2014
Bob Clair, American State Bank, Pierre
Kevin Whitelock, Pioneer Bank & Trust, Spearfish
A United Front Helps Avoid a State AMT for Banks
Term Ending April 30, 2015
Paul Domke, Heartland State Bank, Redfield
Monte Troske, Farmers State Bank, Turton
Ken Karels, Great Western Bank, Sioux Falls
Ergonomics for Financial Institutions
Term Ending April 30, 2016
Dave Rozenboom, First PREMIER Bank, Sioux Falls
Ron Kristensen, Farmers and Merchants State Bank,
Plankinton
Dave Zimbeck, Citibank, N.A., Sioux Falls
Upcoming Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
SDBA Staff
Curt Everson, SDBA President
[email protected]
Mike Feimer, President of Insurance and Services
[email protected]
Deb Gates, Administrative Vice President
[email protected]
Alisa DeMers, Communications Coordinator
[email protected]
Nadine Kepford, IS/Business Manager
[email protected]
Jeanine Dyce, Administrative Assistant
[email protected]
Joan Deal, Marketing Director of Education
[email protected]
Michelle Guthmiller, Insurance Specialist
[email protected]
Mike Zolnowsky, CIC, Commercial Lines Specialist
[email protected]
Editor: Alisa DeMers
South Dakota Bankers Insurance & Services Update . . . . . .6
SDBA News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
SDBA Seeks Candidates for 2014 Board Elections
SDBA To Host Dakota School of Lending Principles,
Learn About Opening New Accounts
2014 Directors College . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
NDBA/SDBA Annual Convention . . . . . . . . . . . . . . . . . . . . . .11
Fellowship Breakfast Speaker: Manny Ohonme
SDBA State Legislative Day . . . . . . . . . . . . . . . . . . . . . . . . . .12
Bankers Network with State Legislators in Pierre
Making a Difference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
SDBA Survey Results: A Timely Tool to Promote Banks
South Dakota Bankers Foundation . . . . . . . . . . . . . . . . . . . .15
Brandon Valley Student Wins Business Plan Competition
Endorsed Vendor Spotlight: NFP Executive Benefits . . . . .17
So, Your Regulators Are Reviewing Your BOLI
Washington Update. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Teaching Sound Financial Habits
IRA Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
Your IRA, My IRA, Now MyRA
Bank Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Advertising: If you would like to advertise in South
Dakota Banker, contact Alisa DeMers at ademers@
sdba.com.
Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
South Dakota Banker is a monthly magazine
published by the South Dakota Bankers Association
that is dedicated to enhancing the banking profession
by providing useful and timely information on important
events and trends in the banking industry. Members are
invited to submit news and information.
The advertisements within this publication do
not necessarily represent endorsed vendors of the
SDBA. With the exception of official announcements,
the SDBA disclaims responsibility for the opinions
expressed and statements made. The editor reserves
the right to refuse any advertisement or editorial copy.
Advertising rates are available upon request.
Member banks, branches and associate members
receive one complimentary subscription. Additional
subscriptions are available to members at a rate of $45
per year. The non-member rate is $90 per year.
Front Cover: Pictured from left are Lynn Peterson, CorTrust Bank,
Yankton; Steve Hayes, Dakota Prairie Bank, Fort Pierre; Paul Richards,
Farmers State Bank, Bridgewater; and Kristina Schaefer, First Bank &
Trust, Sioux Falls, at the SDBA’s State Legislative Day on Feb. 12.
Serving Bankers Since 1884
Educational Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
South Dakota Bankers Association
109 West Missouri Avenue, PO Box 1081
Pierre, SD 57501
Phone: 605.224.1653 Fax: 605.224.7835
Website: www.sdba.com
Message from the Chairman
Banking Industry Must Keep Taxation Campaign Alive
By Kevin Tetzlaff
President/CEO, First Bank & Trust, Brookings
I
would like to thank each of you who
took time away from your bank
and busy schedules to participate
in our annual SDBA State Legislative
Day on Feb. 12 in Pierre. As always,
Curt Everson, Deb Gates and the entire
SDBA staff did a great job planning,
organizing and executing the day’s
events. As I referenced to the bankers in attendance, I
continue to be pleased with the incredible leadership we
all receive from our SDBA team. As my time as chairman
passes, I become even more impressed and appreciative of
their commitment.
The SDBA State Legislative Day provided an
opportunity to network with banking peers from across
the state, receive updates on proposed banking related
legislation, enjoy a strong lineup of speakers, and interact
with your legislators and the Governor. Interaction with
our policymakers is critical not only in strengthening
relationships but in relaying our appreciation for the
tireless work they do, both in and out of session. For full
coverage of the day’s activities, see page 12.
The State Legislative Day began with a SDBA Board
meeting. In addition to routine business, the Board spent
considerable time discussing the road traveled, current
status and next steps of the SDBA’s Taxation Equality
Awareness Campaign. This campaign is aimed at shining
a bright light on the preferential tax treatment of credit
unions and the Farm Credit System, with the goal of
ultimately asking Congress to examine these outdated
exemptions in a current day context. A significant
amount of education and awareness has been achieved
over the last nine months through banker meetings,
press conferences, one-on-one discussions and public
presentations to local government and civic groups.
We had hoped at this point in the campaign we would
be in a position to introduce a Resolution of Support to
the 2014 State Legislature. Unfortunately, we are not there
yet. Approximately 90 days ago, we asked bankers across
the state to become directly engaged with their local
legislators to provide a platform of education on this issue
and to gauge support for the proposed resolution. While
we had pockets of strong banker engagement across the
state, regrettably, we were only able to measure the level
of support of about a third of our 105 legislators.
Additionally, a meeting with legislative leadership
confirmed they were not hearing a ground swell of
discussion, momentum or support for such a resolution
with their peers or their constituents. Without clear,
measurable support, the Board tabled the introduction of
a resolution. While disappointed in the collective banker
engagement with this specific campaign initiative, we did
 4 
raise awareness among our legislators and found support
exists with many of those contacted. That tells me our
position and message is sound, but there is just more
work to do. Before we talk about next steps, a couple of
themes have developed through this initiative.
First, we have exposed the shallow positions of the
credit unions and Farm Credit System. They would prefer
to focus on their cooperative status, as opposed to the
mission driven reasons of why they were given the tax
preferential treatment with which to begin. The more we
talk, the more uncomfortable they seem to become.
Contrary to credit unions and Farm Credit System’s
perspectives that we are wasting our local and state
elected officials time, we have found that taxpayers and
officials, at all levels of government, want to understand
the facts surrounding this controversial issue, especially in
regards to the lost revenue. While exemptions can only be
repealed in Congress, we are part of that political process.
That being said, we have also learned it is a tough sell
in asking local and state officials to vote for a resolution
that will knowingly make many of their constituent’s
unhappy. This is especially true knowing a positive vote
for taxation equality essentially only sends a message
asking others to act.
Lastly, while bankers have justifiably grumbled about
these taxation inequalities for years, spurring them to
collectively engage in a concerted initiative to change the
status quo has at times been challenging. I understand
we all have daily demands, and sometimes these taxation
conversations can be awkward based on stakeholder
affiliations. However, if we desire change, we must be
willing to participate in the process of change. Although
our trade association professionals do a fantastic job of
representing us on contentious issues of this magnitude,
our elected officials, at all levels, need to receive direct
contact from bankers, our constituents and effected
stakeholders. Community banking is our industry, and we
need to be willing to step up and fight for it.
The day will come when Congress is compelled to
deal with the soaring deficits at the federal level. I believe
politics will dictate a solution combining both spending
cuts and measures to increase revenue (tax reform). To
that end, the SDBA Board contends we must continue
to keep the campaign alive. Therefore, we again ask
bankers to begin, or continue, their grassroots initiative
of holding presentations, visiting with local stakeholders
and communicating directly with your South Dakota
congressional delegation, both current and future.
We would also ask you to consider other initiatives
already taking hold with some member banks such as
including a message on your bank’s website about the
continued on page 21
South Dakota Banker  March 2014  www.sdba.com
From the Executive Office
A United Front Helps Avoid a State AMT for Banks
By Curt Everson
President, South Dakota Bankers Association
H
ooray, March is finally here! I
usually don’t get that excited
about a month that generally
sees more snowstorms than balmy days,
but this winter has been going on for so
long that I find myself getting excited
for any almost any sign of impending
spring.
And of course flipping the calendar to the third
month of each year means it is time for MARCH
MADNESS! Thankfully for South Dakota’s banking
industry, it appears that this term which is so closely tied
to the NCAA men’s and women’s basketball tournaments
doesn’t appear to apply to the closing weeks of South
Dakota’s 2014 Legislative Session.
At this writing, two bills submitted by Gov. Daugaard
which make substantive changes to South Dakota’s
bank franchise tax have already passed in the first
legislative body, have received committee approval in the
second house and appear headed toward final passage.
Thankfully, a third proposal to create a capital-based
alternative minimum tax (AMT) that would apply to nine
larger banking organizations with varying operations
both within and outside of South Dakota was never
introduced. So why did a concept that was clearly part of
the Governor’s policy agenda from day one of the 2014
Session ultimately not see the legislative light of day?
I am a person who believes that facts and sound
logic should carry the day where questions of public
policy are concerned. SDBA Chairman Kevin Tetzlaff
and I communicated several industry concerns about an
AMT in writing directly to Gov. Daugaard on Jan. 28.
The SDBA could not endorse the notion that the state of
South Dakota is somehow entitled to a predetermined
level of revenue from the very industry that already pays
an income-based tax—a tax that is not paid by others who
compete with banks in the financial services marketplace.
We also pointed out that some of the very same banks
that would be subject to a significant tax increase are
largely responsible for the substantial increase in ongoing
unclaimed property remittances to the South Dakota
treasury. We insisted that bank franchise tax revenues
needed to be viewed hand in hand with unclaimed
property remittances.
But the real key to turning the tide on the question
of whether a selectively imposed AMT was good or poor
public policy was both substance and tone of one-on-one
conversations between bankers and policymakers. Gov.
Daugaard communicated personally with each member of
the SDBA Board of Directors. He also talked individually
with other banking industry leaders—those whose
institutions would be subject to the new taxation scheme
as well as those that would not be affected.
What he heard was a largely unified response.
Today’s banking industry model has changed in the wake
of the great recession, post Card Act, post Dodd-Frank
era. Banks, large and small, are challenged to manage
their costs of doing business, including tax expense. South
Dakota’s governors and state legislators have worked
hard over the past 30 plus years to create a statutory
and regulatory structure that are pro-business and probanking. As a result of those efforts, South Dakota’s
banking industry is very diverse. That industry diversity
is a source of economic strength that should be nurtured,
not discouraged.
One by one, bankers communicated those views to
Gov. Daugaard as well as to their elected state legislators.
Those conversations had a profound impact. Just a
week prior to the SDBA’s State Legislative Day, the
Governor called to let me know that he would not ask
the Legislature to consider the capital-based alternative
minimum tax. When he met with bankers attending the
SDBA’s State Legislative Day on Feb. 12, he described the
concept of an alternative minimum tax for South Dakota’s
banks as “bad policy.”
Speaking of the SDBA’s State Legislative Day, I
want to say a huge THANK YOU to all of the bankers
who made the commitment to spend all or part of their
day participating in this annual event. This conference
provides a couple of great opportunities for bankers. We
get to draw some attention to the great things that bankers
do every day to help make their home communities great
places to live, raise families and do business. Each year on
“banker day,” the SDBA releases the results of its annual
survey on the contributions that banks and individual
bankers make to charitable and civic causes in their
communities. You can read more about this on page 14.
If your bank didn’t participate in the 2013 survey, please
plan to do so next year.
Through the support of your South Dakota Bankers
Foundation, the banking industry gets to showcase
the talents of South Dakota’s high school youth by
announcing the winners of the SDBA’s annual Business
Plan Competition during our evening dinner with
legislators and other elected state office holders. Details
about those winners can be found on page 15, but I want
to tell you there is something pretty special about the
message that South Dakota’s banking industry is sending
to the next generation of budding entrepreneurs.
Lastly this is the banking industry’s chance to say
“THANK YOU” to all of our elected officials for the
sacrifice of time away from family and livelihood they
make for the betterment of all South Dakotans. The staff
continued on page 21
South Dakota Banker  March 2014  www.sdba.com
 5 
South Dakota Bankers Insurance & Services Update
Ergonomics for Financial Institutions
By Craig Collins
President, OneBeacon Financial Services, Minnetonka, Minn.
M
ost of us begin each day sitting
at our desk to perform our
daily job functions. The office
workstation itself and related equipment
are key tools necessary to do our job.
How often do we consider the effects of
using the workstation equipment such
as our desk, keyboard, mouse, monitor
or chair? When was the last time you made adjustments to
your workstation to better fit you?
Bank employees can be just as susceptible to
injuries related to poor ergonomic practices—known as
musculoskeletal disorders (MSDs)—as other industries.
As a result of the number of work injuries related to MSDs
in the workplace, practicing good ergonomic principles
at our workstations should be an important part of an
effective safety program in your bank. An effective
ergonomics program should center around properly
fitting the workstation to the person who uses it.
Ergonomics Policy
As with any other aspect of a safety program,
management should be committed to implementing
an ergonomic safety policy. A management statement
indicating support for the practice of good ergonomic
principles within the bank should be provided to all
employees. This statement should reflect that both
management’s commitment and employee involvement
are essential to the success of the ergonomics program.
The ergonomics program should include all employees,
both new and existing. Just because an employee has been
on staff for an extended period of time doesn’t mean they
are knowledgeable about correct ergonomic practices.
Employees should be provided instruction and
assistance in setting up their workstation. “One size does
not fit all” information and assistance should be provided
on the adjustments that can be made to items such as their
chair, keyboard, mouse, document holders and monitor. It
may be helpful to distribute printed reference materials on
these items outlining their correct workstation positioning.
Such reference material should be included in and
reviewed during your new employee orientation program.
Workstation Assessments
Workstation assessments should be completed
with all employees. Listen to what the employee is
experiencing at his or her workstation. Comments
from employees that they are experiencing numbness,
tingling or burning sensations, or pain or stiffness in their
shoulders, wrists, neck or arms, may be an indication that
they are not practicing good ergonomic principles and
could be symptoms of possible MSDs. Employees should
 6 
be taught that good posture and placing body parts such
as arms, shoulders and wrists in “neutral” positions
are important factors of good ergonomics (a “neutral”
position is the position of the body joints that causes
the least amount of stress to the joints while working).
Review the workstation equipment for adjustability. Good
ergonomic principles means adjusting the workstation
to fit the individual. Adjustments can generally be made
to the individual’s office chair, monitor placement and
height, keyboard position and mouse placement.
Additional items to be reviewed at the workstation
include the type of overhead lighting or task lighting
being provided and the relationship to glare on the
monitor screen, the layout of the employee work space
and the amount of unnecessary items placed in the
immediate work space area. Is the employee required to
reach for teller equipment, documents or manuals? If so,
can the materials be relocated closer to the employee to
reduce this movement? If the employee is required to use
their phone frequently, consideration should be given to
the use of a phone headset.
It may be necessary to involve multiple departments
such as your information technology department, facilities
department and human resources department while
making the workstation assessments. Having designated
employees attend an ergonomics “train the trainer”
program to receive training on how to establish an
ergonomically correct workstation may be a good option.
If you are uncertain how to make the adjustments to
correctly fit the individual, request outside assistance.
Micro Breaks
The workstation assessment should also include a
review of the employees’ work routines. Do they practice
taking “micro breaks” during the workday? Simply
standing up at the workstation and/or performing mild
stretching exercises will help improve circulation and
relieve possible muscle fatigue. Employees completing
mild stretching exercises should be informed that the
stretching exercises should never cause the employee
pain. Employees that have medical conditions or are
experiencing pain as a result of mild workstation
stretching exercises should consult with their health care
provider before starting or continuing such exercises.
Documentation
Also consider documenting workstation assessments.
Take notes on comments from employees concerning
any physical discomforts they may be experiencing.
Document any changes or adjustments made to the
workstation, noting how the workstation was set up
continued on page 23
South Dakota Banker  March 2014  www.sdba.com
SDBA News
SDBA Seeks Candidates for 2014 Board Elections
E
lections for the South Dakota Bankers Association’s
Board of Directors for 2014 are scheduled for March
and April. Three directors have terms that expire
on April 30, 2014. Elections will take place in geographic
Group IV and Group V and the Large Community Bank
Category.
Terms for Bob Clair, American State Bank, Pierre
(Group IV) and Kevin Whitelock, Pioneer Bank & Trust,
Spearfish (Large Community Bank Category) expire at the
end of April. Clair has served two consecutive terms and
is not eligible to run for re-election. Whitelock has served
one term and is eligible to run for a second term. The
Group V seat is currently vacant.
The SDBA is currently seeking candidates interested
in running for these positions. If you are interested
in running for a Board position, please contact one of
the nominating committee members listed below by
Thursday, March 20.
One ballot will be sent to each bank in Group IV
and Group V on March 24, and voting will be complete
April 7. One ballot will be sent to each bank in the Large
Community Bank Category on April 8, and voting will be
complete April 22.
Newly-elected Board members will take office on May
1, 2014, and serve a three-year term expiring April 30,
2017. 
Group IV Nominating Committee
(Banks in Campbell, Corson, Dewey, Edmunds, Faulk, Hughes, McPherson, Perkins, Potter, Stanley, Sully, Walworth and Ziebach
counties.)
Bob Clair
American State Bank
PO Box 1178, Pierre, SD 57501
Phone: 605.224.9233
Email: [email protected]
Bruce Haerter
Farmers State Bank
PO Box 65, Hosmer, SD 57448
Phone: 605.283.2201
Email: [email protected]
Group V Nominating Committee
(Banks in Bennett, Butte, Custer, Fall River, Haakon, Harding, Jackson, Jones, Lawrence, Meade, Mellette, Pennington, Shannon and
Todd counties.)
Rick Rylance
Dacotah Bank
PO Box 4508, Rapid City, SD 57709
Phone: 605.394.9000
Email: [email protected]
Pat Burchill
U.S. Bank
PO Box 90, Rapid City, SD 57709
Phone: 605.394.2021
Email: [email protected]
Large Community Bank Nominating Committee
(Banks with deposits between $75M and $500M as of 06-30-13.)
Lynn Schneider
American Bank & Trust
PO Box 838, Huron, SD 57350
Phone: 605.352.9122
Email: [email protected]
Brian Thompson
First Bank & Trust
PO Box 1347, Sioux Falls, SD 57101
Phone: 605.978.1146
Email: [email protected]
SDBA in Search of Bankers to Serve on Committees
The SDBA is seeking bankers to serve on its
four committees for 2014-2015: Agricultural Credit
Committee, Credit Card Committee, Legislative
Committee and Trust Committee.
Committee terms are one year beginning May
1, 2014, with the exception of Legislative Committee
members who serve three-year terms.
The Committee Membership Form will be sent to
all banks and branches in March. Or visit www.sdba.
com and click on Membership, Committee Involvement.
Questions, contact Alisa DeMers at [email protected]
or 800.726.7322. 
South Dakota Banker  March 2014  www.sdba.com
 7 
Upcoming Training
SDBA To Host Dakota School of Lending Principles
 April 22-25, 2014, Dakota Event Center, Aberdeen
T
he Dakota School of Lending Principles, hosted
by the South Dakota Bankers Association and
co-sponsored by the North Dakota Bankers
Association, provides basic instruction appropriate for
loan officer trainees, loan support personnel and personal
bankers. The SDBA will hold the 2014 Dakota School of
Lending Principles on April 22-25 at the Dakota Event
Center in Aberdeen.
To ensure exposure to bank structure and
terminology, it is recommended that applicants have a
minimum of six months lending experience or one year of
loan department experience.
The Dakota School of Lending Principles is a learning
event with one foot grounded in the classroom and one
foot in the bank. This school allows students to learn the
theory and process of basic lending and then put this
knowledge to work in actual nuts and bolts sessions.
Four modules will be offered: consumer lending, real
estate lending, analyzing small business loans and loan
documentation, and agricultural lending. Students learn
the lending process by studying elements applicable to
each loan type: terminology, the application process,
interviewing, investigation, credit analysis, loan structure,
decision communication and selling. Case studies and
exercises provide hands-on learning experience.
The school has a limited enrollment of 50 people
per day. SDBA and NDBA members may register at
the member rate of $795 for the entire school or $225
per individual module. Banks may also purchase one
registration for the entire school and send a different
employee each module.
For more information and to register, visit www.
sdba.com. Questions, contact Deb Gates with the SDBA at
[email protected] or 800.726.7322. 
Learn About Opening New Accounts
 April 17, 2014, Clubhouse Hotel & Suites, Sioux Falls
T
he facts are in. Many financial institutions are
increasingly taking more losses in the new account
area than in the loan area. The reason—not
recognizing fraudulent accounts.
Too often new account personnel receive 20 minutes
of training before opening their first account. Most of
the expertise is gained “on the job,” which results in
an environment of insecurity and vulnerability for new
account representatives and unnecessary losses for
the financial institution. With all the new compliance
regulations, it seems like we are now conducting new
account ”interrogations” rather than “interviews.”
The SDBA’s Opening New Accounts - Documentation
and Compliance Seminar on April 17 in Sioux Falls
teaches new account personnel: proper account opening
procedures and compliance requirements, the five crucial
pieces of information including proper identification
and the correct TIN for every new account, and the four
fundamental questions that should be asked of every
potential account holder.
 Who owns the funds in the account?
 8 
Who has access to the funds in the account?
What is the purpose of the account?
If a business account, what type of legal entity is
this?
The seminar manual, which is customized to South
Dakota’s state law, has become known as the “technical
reference handbook” for new account departments across
the country.
All customer contact personnel, supervisors and
officers whose responsibilities include opening or
managing new accounts and certificates of deposit should
attend. This seminar is also excellent for supervisors or
officers who have recently assumed the responsibility of
the new account area but have never actually worked in
new accounts. Internal auditors and compliance officers
will find the information exceptionally beneficial as well.
It is strongly recommended you bring a copy of your
institution’s signature cards and account agreement to the
workshop.
For more information and to register, visit
www.sdba.com or call the SDBA at 800.726.7322. 


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South Dakota Banker  March 2014  www.sdba.com
SAVE the
DATE
Registr
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2014 Directors College
May 6, 2014 | Sioux Falls Convention Center | Sioux Falls, S.D.
The FDIC, in
partnership
with the South
Dakota Bankers
Association and
South Dakota
Division of
Banking, will
hold the 2014
Directors College
on May 6 at the Sioux Falls Convention Center, 1101 N.
West Ave., Sioux Falls, S.D.
The 2014 Directors College is a one-day educational
seminar designed with outside directors in mind but
will also include information on emerging issues in the
banking industry. The seminar is a unique opportunity
to interact with bank regulators and enhance board
experience and knowledge.
Breakout Sessions
Attendees are asked to register for four sessions—their
top two choices plus two alternate sessions. While
you can only attend two sessions, you may be slotted
into another session if one of your top four selections
is not offered due to low registration numbers. It is
important to register by April 27 to allow the FDIC to
schedule the sessions that will be presented.

Introduction to Loan Portfolio Management

Commercial Real Estate

Insider Fraud

Bank Secrecy Act

Asset Liability Management – Hot Topics

Third-Party Risk

Information Technology

Accounting and Auditing Topics for Today and
Tomorrow

How Does the FDIC View Agricultural Banking

Compliance, Fair Lending, and the Community
Reinvestment Act (CRA)
Who Should Attend
Bank directors, CEOs and upper management will all
benefit from this training.
Training Format
Opening General Session: The 2014 Directors College
will open with “Director Roles & Responsibilities” in
meeting rooms 11-14 of the Sioux Falls Convention
Center, which is connected to the Sheraton Hotel.
This session will cover emerging issues that will be of
interest to all bank directors. Topics to be discussed
include corporate planning and legal liability issues,
insights gained from the recent banking crisis and
highlights of new compliance regulations.
Breakout Sessions: Registrants can then tailor this
training to their needs by attending two breakout
sessions of their choice. Each breakout session has
been designed for audience participation through the
use of roundtable discussions, case studies and in-class
exercises. This is an excellent opportunity for directors
to learn from regulators and their peers about issues
their banks face.
Luncheon Speaker: James LaPierre, regional director
of the Kansas City FDIC, will address emerging issues in
South Dakota, a snapshot of the region, and issues and
concerns inside the beltway in Washington, D.C.
Closing General Session: “Red Flags for Directors”
is designed to help directors identify red flags for
potential problems in a range of topical areas including
strategic planning and growth, board reporting, lending,
auditing and internal controls, insider transactions,
consumer protection and general regulatory matters.
 10 
Hotel Information
Sheraton Hotel & Convention Center
1211 West Ave. North, Sioux Falls, S.D.
605.331.0100
A block of rooms has been reserved at the Sheraton
Hotel for the evening of May 5, 2014. You will need
to request a room out of the SDBA block in order to
qualify for the special, reduced rate of $99 standard,
$109 executive or $124 club room per night. The block
will be released on April 8, 2014. Reserve your room
now as cancellations are always easier than trying to get
a room later.
Registration
The registration fee is $179 per person. This fee
includes the program, handouts, breaks and luncheon.
To register, visit www.sdba.com.
More Information
For more information contact:
• Deb Gates, SDBA, at 800.726.7322 or debgates@
sdba.com
• Andy McQuistan, FDIC, at 605.333.2051 ext. 8638
or [email protected]
• Coreen Rafert, FDIC, at [email protected] or
605.333.2051 ext. 4623 
South Dakota Banker  March 2014  www.sdba.com
June 8-10, 2014
Ramada Plaza Suites
Fargo, N.D.
Be watching for registration materials.
Fellowship Breakfast Speaker
Manny Ohonme
“The Power of Yes: How a Pair of Shoes Changed the World”
Emmanuel “Manny” Ohonme has achieved national and international recognition as a
philanthropist, businessman and author. He is the founder and president of Samaritan’s
Feet International and acclaimed author of Sole Purpose.
Born in Nigeria, Manny was nine years old when his life changed: he won a basketball
FRQWHVWDQGUHFHLYHGKLV¿UVWSDLURIVKRHVIURPD³*RRG6DPDULWDQ´7KRVHVKRHV
became a symbol of hope to Manny and a catalyst to his love for basketball. Manny
earned a scholarship to play basketball at University of North Dakota-Lake Region
and received undergraduate and graduate degrees in the Fargo area. But Manny never
IRUJRWWKHFKLOGUHQRIKLVKRPHODQGRUWKH³*RRG6DPDULWDQ´WKDWHQFRXUDJHGKLPWR
EHOLHYHLQKLVGUHDPV,Q0DQQ\DQGKLVZLIH7UDFLHIRXQGHG6DPDULWDQ¶V)HHW
International with the purpose of sharing hope with those in need by washing their feet,
giving them a new pair of shoes and helping them to believe that dreams can come true.
7RGDWHPRUHWKDQPLOOLRQSDLUVRIVKRHVKDYHEHHQGLVWULEXWHGWRQHHG\FKLOGUHQ
throughout the world and United States. Manny is proof that, if you dream, and dream
big, you can achieve whatever you set your mind to.
SDBA State Legislative Day
From left, Robert Baker, The First National Bank in Sioux Falls,
and First PREMIER Bank employees Darrell Schmith, Kevin
Lippert and John McGrath, Sioux Falls.
From left, Jami Delbridge, First National Bank in Faith; Scott
Gray, First National Bank in Faith; and Roger Porch, First
National Bank in Philip.
From left, Brad Moore, Dacotah Bank, Aberdeen; Robert
Fouberg, Dacotah Bank, Aberdeen; Sen. Bruce Rambelberg,
Rapid City; and Dick Westra, Dacotah Bank, Aberdeen.
From left, Rep. Dean Wink, Howes; Rep. Tim Rounds, Pierre;
Kevin Whitelock, Pioneer Bank & Trust, Spearfish; and Rep.
Tim Johns, Lead.
From left, Bruce Brandner, Campbell County Bank, Herreid;
Rep. Herman Otten, Tea; Wayne Olsen, American State Bank,
Oldham; Steve Hayes, Dakota Prairie Bank, Fort Pierre; and Bob
Sutton, Pierre.
From left, Curt Everson, SDBA, Pierre; Dave Zimbeck,
Citibank, NA, Sioux Falls; Frank Farrar, First National Bank,
Britton; and Patrick Green, Wells Fargo Bank, NA, Des Moines.
 12 
South Dakota Banker  March 2014  www.sdba.com
Bankers Network
with State Legislators in Pierre
B
ankers from across the state
gathered in Pierre on Feb. 12
to stay current on legislation of
interest to the banking industry and
network with elected officials at the
SDBA’s State Legislative Day.
SDBA President Curt Everson
and SDBA Chairman Kevin Tetzlaff,
First Bank & Trust, Brookings,
updated attendees on the SDBA’s
Taxation Equality Awareness
Campaign and bank franchise tax
legislation this session.
Gov. Dennis Daugaard
addressed the group and began with
recapping the state’s good news this
past year. He thanked the banks
which took part in the state’s Bank
Franchise Tax Working Group and
said he appreciated comments from
SDBA Board members with whom he
spoke about his idea to implement an
alternative minimum tax for banks,
which he decided to not introduce.
“I came to the conclusion that it
was bad policy. We want to continue
to make the case that South Dakota
is a very good place for business,
including banks,” the Governor said.
Sean Snaith, Ph.D., Director, Institute
for Economic Competitiveness.
“We want to find ways that we build
our revenue not through increasing
tax rates or creating alternative
minimum schemes, but instead
creating an environment that attracts
more business.”
Next, Erin Scheithe, vice
president of Political Advocacy &
Grassroots for the ABA, encouraged
bankers to utilize Amplify, a new
online toolbox of resources that they
can use to promote the work they
do in their communities. Amplify is
available to all bankers, including
non-ABA members.
The featured afternoon speaker
was Sean Snaith, Ph.D., director
of the University of Central
Florida’s Institute for Economic
Competitiveness. Snaith spoke about
the economy in 2014 and reflected
on policies that have and will be
implemented in the years ahead.
The day concluded with bankers
joining legislators and constitutional
officers for a reception and dinner.
Mark your calendars for next
year’s SDBA State Legislative Day to
be held Feb. 11 in Pierre. 
Call about your
participation &
bank stock loans
from $100,000 to
$10 million
•
Participation loans
(commercial, agricultural,
construction, operating lines
and term loans)
•
Bank stock & ownership loans
•
Bank building financing
•
Business & personal loans
for bankers
•
Multi-family long-term
permanent financing
Call us for quick response,
competitive rates and
flexible underwriting.
SDBA Chairman Kevin Tetzlaff, First
Bank & Trust, Brookings.
Gene Uher
605.201.1864
[email protected]
Erin Scheithe, VP, Political Advocacy &
Grassroots, ABA, Washington, D.C.
Gov. Dennis Daugaard addressed bankers
and answered questions.
3157
South Dakota Banker  March 2014  www.sdba.com
Member FDIC
 13 
Making A Difference
SDBA Survey Results: A Timely Tool to Promote Banks
T
he SDBA
unveiled
the
results of its
sixth annual
State Banking
Data Collection
Project during
its State
Legislative
Day held Feb.
12 in Pierre.
Copies of the
promotional
handout were
provided to all
attendees at
the legislative
dinner, all state
legislators, and
mailed to all SDBA member banks and branches.
The document is a great tool that banks can use to
promote all of the things they do for their communities.
Banks are encouraged to use the document in their
promotional efforts, make copies as needed and link the
document on their websites.
Each January, the SDBA sends an electronic survey to
all member bank CEOs to collect data on the importance
of banks to their local communities and to the state as
a whole. The annual project demonstrates that banks
are great corporate citizens and serve as “stewards” of
their communities and the state in ways beyond routine
banking services.
Of the 83 member banks, 32 banks responded to the
survey, and 10 banks provided photos and/or a short
narrative about a community service project. The handout
this year was expanded to include information on the
Everfi financial education program, the South Dakota
Bankers Foundation’s High School Scholarship Program,
and banks versus credit unions and the Farm Credit
System. Survey results included in the handout were:

Banks loaned and invested nearly $738.7 million
for housing and other community development
projects for low and moderate-income residents.

South Dakota banks donated more than $8 million
in charitable contributions and grants.

Banks donated $65,000-plus, led donation
drives and rollover auctions, and deferred and
restructured loan payments for ranchers impacted
by the Atlas Blizzard.

The 32 South Dakota banks which took part in
the survey employ more than 11,000 people, with
annual payroll totaling more than $681 million.

South Dakota bankers volunteered 138,065 hours
with community organizations.

Employees of South Dakota banks donated $4.86
million in charitable contributions and grants.

South Dakota Bankers Foundation’s High School
Scholarship Program and banks awarded $124,000
in scholarships, in addition to the banks’ own
programs.
A high-resolution copy of the handout for printing is
available at www.sdba.com. For questions or assistance,
contact the SDBA’s Alisa DeMers at [email protected]
or 800.726.7322. 
Business Plan
Competition Judges
From left are the judges of the
South Dakota Bankers Foundation’s
Business Plan Competition with Lt.
Gov. Matt Michels: John Clausen,
Clausen & Rice CPAs, Pierre; D.J.
Mertens, retired banker, Kennebec;
Denise LaRue, retired banker,
Sturgis; Lt. Gov. Michels; LaJena
Gruis, SD Governor’s Office of
Economic Development, Pierre;
Steve Harding, SD Department of
Military Affairs, Pierre; Dr. Leon
Korte, SD Bankers Foundation
Director of the Institute for the
Study of Rural Banking, USD.
 14 
South Dakota Banker  March 2014  www.sdba.com
South Dakota Bankers Foundation
Brandon Valley Student Wins Business Plan Competition
From left are the 2014
Business Plan Competition
finalists with Lt. Gov. Matt
Michels: Jessica Andreasen,
Brandon Valley High School;
Kaydee Lawrence, Cheyenne
Eagle Butte High School;
Kjerstin Williams, Brandon
Valley High School; Lt. Gov.
Michels; Micaela Johnson,
Bowdle High School; Aubree
Stevens, Dupree High School;
and Shayla Taton, Belle
Fourche High School.
K
jerstin Williams, a student at Brandon Valley
High School, won the 24th annual Business Plan
Competition for high school students. The contest
is sponsored annually by the South Dakota Bankers
Foundation and the South Dakota Governor’s Office of
Economic Development.
Williams’ business plan was for her company called
Enchanted Evening. Her business is a formal, prom or
special occasion dress consignment website store. Her
first-place prize of an iPad and $1,000 was presented by
Lt. Gov. Matt Michels during the evening program at the
SDBA’s State Legislative Day on Feb. 12 in Pierre.
The other finalists included:

Shayla Taton, a student from Belle Fourche High
School, placed second and received an iPad and
$500 for Taton’s Horse Training. She will train
horses for barrel racing, pole bending or roping.

Jessica Andreasen, from Brandon Valley High
School, placed third and received an iPad for
her company Shameless. Shameless will be an
online boutique, inspired by fashion, the arts and
different cultures.

Kaydee Lawrence, a student from Cheyenne Eagle
Butte High School, was a runner up and received
$300, for her bakery that promotes healthy choices
and specialty baked goods at affordable prices.
Her company is called KayDeelicious Bakery.

Micaela Johnson, a student at Bowdle High
School, was a runner up and also received $300
for her company called a Cup of Joe, a coffee
shop that will offer “trendy” products from lattes,
coffees, sandwiches to homemade specialties.

Aubree Stevens from Dupree, a runner up for her
business plan for Open Heart Ranch, also received
$300. Her company will provide a therapeutic
riding operation for children and adults with
disabilities.
Four alternates were also chosen and each received
$100. Those students were Samual Ryckman, Ryckman
Homeschool, Pierre; Austin Effling, Britton Hecla High
school; Fehrin Ward, Belle Fourche High School; and
Cody Bussell, West Central High School in Hartford.
The concept behind the Business Plan Competition
is to take an idea for a business that could be started by
a student and transfer it into a business plan. To help
interested persons pursue this opportunity, notice of the
competition went to all South Dakota high schools last
fall, resulting in the submission of 69 business plans. A
panel of six judges reviewed the written plans and called
six finalists to Pierre for the oral interpretation portion of
the competition.
Judges were: John Clausen, Clausen & Rice CPAs,
Pierre; Denise LaRue, retired banker, Sturgis; Dr. Leon
Korte, SD Bankers Foundation Director of the Institute
for the Study of Rural Banking, USD; Steve Harding, SD
Department of Military Affairs, Pierre; LaJena Gruis, SD
Governor’s Office of Economic Development, Pierre; and
D.J. Mertens, retired banker, Kennebec.
The six finalists, parents and advisors were invited to
attend the SDBA’s annual legislative reception and dinner
honoring South Dakota’s constitutional officers and the
Legislature. They received their awards from Lt. Gov.
Michels in recognition of their entrepreneurial efforts. 
South Dakota Banker  March 2014  www.sdba.com
 15 
State News
First Dakota National Bank Receives Lending Award
T
he Governor’s Office of Economic Development
(GOED) named First Dakota National Bank
Lending Partner of the Year for 2013. The award
was presented to First Dakota National Bank Chairman/
CEO Larry Ness, Yankton, during the SDBA’s State
Legislative Day on Feb. 12 in Pierre.
First Dakota National Bank’s Vermillion branch
partnered with GOED and the Vermillion Economic
Development Corporation on construction of a new
facility for a software development company in the
Vermillion area. This project will create 175 jobs in
the next four years for a total project of $5 million. In
addition, the bank partnered with the MicroLOAN
program for the purpose of renovating and equipping a
local restaurant in the Yankton area.
Without the support of First Dakota, Vermillion Bank
President Farron Pratt and Yankton Business Banker Dan
Burns, these deals wouldn’t have happened.
GOED works closely with the banking industry and
last year made presentations on its loan programs to more
than 100 bankers across the state. The efforts of these
visits have proven successful with more than 22 bank
branches represented through partnering loans approved
with GOED in 2013. 
Lt. Gov. Matt Michels presented the GOED’s Lending Partner
of the Year Award for 2013 to First Dakota National Bank
Chairman/CEO Larry Ness. Ness accepted the award on behalf
of First Dakota National Bank Vermillion President Farron
Pratt.
The Trusted Choice for
Banks
Over 35 Years of Experience in the Banking Industry
South Dakota’s standard for security
product installation, service and
preventive maintenance.
DAKOTA
SYSTEMS, INC.
Tel: (800) 365- 5625
[email protected]
www.dakotasecurity.com
 16 
South Dakota Banker  March 2014  www.sdba.com
Endorsed Vendor Spotlight
So, Your Regulators Are Reviewing Your BOLI
What Do You Do and How NFP Executive Benefits Can Assist
Y
our regulators are scheduling their annual visit and
indicated, among other items, they want to review
your BOLI holdings. Not to fear as NFP Executive
Benefits (NFPEB) has built the methodology and reporting
tools to make this exercise painless and complete.
NFPEB, active
in supporting
community
banks since the
early 1980s,
provides our clients with the complete package to meet
the financial reporting, regulatory and compliance
expectations of the Interagency Statement of 2004. Here
are some quick examples:

Financial Reporting – Through the BOLI
Asset Reports tab on our online client plan
administration delivery system (CPADS), clients
can see on a monthly basis the most current
asset value, current performance and suggested
accounting entries. Benefit plan liability accruals,
participant statements and suggesting accounting
entries are found under the Benefit Reports tab.

Regulatory – Current call report requirements
define classification of life insurance assets in
Schedule F and risk weighting in Schedule R;
the life insurance classification report, available
monthly, provides this level of detail and can be
found through the BOLI Asset Reports tab on
CPADS.

Compliance – Annually our clients are expected
to complete a review for the board; on CPADS
under the Compliance Review tab, our clients find
all the references to complete the annual review;
with these reports updated quarterly, the review
can be completed at any time of year to meet
board requirements; insurance carrier ratings and
financials are located under Insurance Company
Review.
Now that you know where to look to satisfy your
risk management requirements, what questions are the
regulators likely to ask and how do you respond:
Q: Provide a list of all life insurance purchases and
provide a statement about the internal controls and risk
management procedures to manage those purchases.
A: CPADS provides listings of all policies under the
BOLI Asset Reports tab or the Compliance tab. Secondly,
the bank should have a BOLI investment policy describing
internal controls and risk management procedures.
Q: Provide copies of all life insurance policies, with
associated applications and documentation, purchased by
the bank since the last regulatory exam.
A: NFPEB provides an update to the bank’s
administration and compliance manual whenever a new
purchase is made or carriers are replaced through a
Section 1035 exchange.
Q: Provide copies of all analyses prepared prior to the
purchase of any new BOLI since the last exam.
A: NFPEB provides a pre-purchase analysis for each
purchase that satisfies the supervisory expectations of the
Interagency Statement of 2004.
Q: Provide documentation showing periodic due
diligence performed by the bank concerning the insurers.
A: The Insurance Company Review tab in CPADS
contains the most current financial reports, financial
strength ratings, and rating agency reports.
Q: Provide copies of internal guidelines, including
policies and procedures, along with reviews of
administration and performance.
A: This question is seeking a copy of the bank’s BOLI
investment policy and the annual board review. The latter
can be fulfilled through the Compliance Review tab in
CPADS. The bank can also include a copy of the SSAE 16
audit report of NFPEB.
Q: Provide information supplied by your vendor on
a periodic basis about life insurance and cash surrender
values.
A: CPADS provides an array of reports to detail life
insurance policies owned, current death benefits available
to the bank and to the participant in the case of split
dollar arrangements, and to satisfy regulatory reporting
for CALL Reports and IRS compliance with Section 101(j).
Additionally, for any cash values held in separate account,
the bank receives a quarterly report on the holdings and
performance of the separate account.
Q: Provide copies of internal and external audit
reports on BOLI portfolio
A: The bank can provide an excerpt of its auditor’s
report discussing BOLI.
The regulatory requests are not ones to fear, as NFPEB
understands the tools and reports to facilitate a painless,
seamless completion of the review. When the regulator
calls, contact NFPEB for our “Regulator Survival Kit.” It’s
free and contains the “necessities” to get you through the
process. 
NFP Executive Benefits, an SDBA endorsed vendor, is a full
service provider of executive benefits and bank-owned life
insurance (BOLI) program. For more information on how
NFP Executive Benefits can help, contact Dave Hagen at
952.403.9827 or [email protected].
South Dakota Banker  March 2014  www.sdba.com
 17 
Washington Update
Teaching Sound Financial Habits
By Frank Keating
President/CEO, American Bankers Association
B
efore getting a driver’s license,
teens in states across the country
have to gain both relevant
experience and demonstrate a basic
proficiency in driving a car. That can
mean classroom training and instruction
and keeping a log of hours driven with
an adult in the car, as well as hours
behind the wheel with a specialized instructor.
The goal of course is to ensure that when they do
hit the open road, young drivers are less likely to harm
themselves and others. They have a basic understanding
of the rules of the road, respect for their fellow drivers—
and pedestrians—and are able to independently make
good decisions. The end result—fewer accidents—benefits
all.
Our industry’s financial education programs work
much the same way. By providing kids with practical
lessons on personal finance and encouraging starter
savings accounts, banks give tomorrow’s adults the
knowledge and experience they need to safely manage
money. This is a critical building block to helping them
meet their financial goals in life—from buying a house to
retiring comfortably. And helping consumers meet their
financial goals is what banks do.
If your bank hasn’t yet engaged in financial education,
I encourage you to explore ABA’s annual Teach Children
to Save program. It is a popular and turnkey way to share
lessons about the importance of saving and managing
money—lessons that banks have delivered to six million
youth since ABA created the program in 1997.
This year’s Teach Children to Save Day is April 11.
Bankers across the country have registered to make school
presentations on that day and throughout April, which is
also being celebrated as Financial Capability Month. (For
a list of participating banks, and for free lesson plans and
other resources, visit www.aba.com/Engagement.)
This program allows bankers to accomplish several
worthy goals at once. By visiting school classrooms, youth
centers, after-school programs and more, you and your
colleagues provide practical lessons and share knowledge
to encourage and inspire young people to develop healthy
lifelong financial management skills.
You also are putting your skill set to use to help
address a serious problem in our nation—the lack of
financial know-how—that could threaten the economic
stability of America. The 2008 financial crisis taught
us many lessons, one of which is the importance of an
informed consumer—one who can distinguish a loan that
is good and appropriate for him or her from one that isn’t.
Finally, your participation also helps demonstrate two
important truths about the industry: that local bankers are
 18 
there to help customers in all of their families’ milestone
events, and that banks have a stake in the economic
growth, health and vitality of their communities. These
are two features of banking that consumers, through
surveys and focus groups, have told ABA they value, so
let’s remind them of those facts.
You have probably heard me say that I view banking
as a white-hat industry. Banks are critical to the success
of communities across America. In fact, bank community
engagement is critical to the success of our nation’s
economy.
Teach Children to Save is just one of several ways
ABA tries to drive that point home. I hope you’ll take part
and in the process help the next generation safely navigate
the road to financial freedom. 
Frank Keating is president and CEO of the American
Bankers Association (ABA). You can reach Keating at
[email protected].
South Dakota Banker  March 2014  www.sdba.com
IRA Update
Your IRA, My IRA, Now MyRA
By Mike Nelson
SDBA’s Endorsed IRA Training & Audit Provider
T
hat’s NOT a typo. It is MyRA! In
his State of the Union Address,
President Obama stated that he
would enact a new type of retirement
plan, WITHOUT LEGISLATIVE
ACTION.
The next day, he then signed an
executive order to get the ball rolling
on this plan. As one can imagine, critics are all over this.
First, it is yet another presidential memorandum, an
executive order, but also some terms of it seem to require
legislative action. It appears Vice-President Biden has 90
days to get this started, and employers will have until the
end of this year to voluntarily enroll in the program.
As you can imagine, there will be many more
interpretations and hopefully more guidance as this new
MyRA becomes effective. However, here is a recap of
what we now know, or at least think we know.
It is intended to be just for those individuals who
do not currently have access to an employer retirement
plan like a 401k. It is unclear how or if self-employed
individuals will be affected.
There will be income restrictions, currently designated
to be $191,000 per household.
The plan must have the voluntary cooperation of the
employer. The employer must agree to administer the
plan by allowing payroll deductions. It will require direct
deposit from the employer. So there will likely be some
cost on the part of the employer.
After an initial after tax $25 investment/contribution
to start the plan, as little as $5 can be deducted from the
individual’s payroll. Contribution limits will mirror those
of Roth IRAs.
At some point, to be determined, funds will then be
sent to a designated administrator/custodian, which will
be selected by the U.S. Treasury from approximately 30
current investment management firms. Individuals will
NOT have a say in where the money is invested or with
whom it is invested.
At some point, it will then be invested in a new,
special U.S. Treasury Retirement Savings Security earning
the same variable rate that is used for the government
workers’ Thrift Savings Plan. The basis/principal will be
guaranteed.
And, according to President Obama the interest will
be tax-free like a Roth IRA. He also stated that there
would be NO penalties for withdrawals, unlike Roth
IRAs. (Since these two provisions are part of the tax code,
we’ll have to see if it really is enacted without a legislative
vote.)
The MyRA is fully portable and moves with the
employee from job to job. Of course, each new employer
would have to enroll in the plan and agree to administer
the payroll withholding and direct deposit provision.
It can be rolled over to an IRA at any time. However,
when the account attains a balance of $15,000, it must be
rolled over to an IRA in the private sector. It has not been
made clear if it can be rolled over to a traditional IRA or a
Roth IRA, or both.
It would seem regulations would need to be written,
which could change any of the listed provisions. JM
Consultants will be sure to keep you informed of any
changes as they become clear. 
Mike Nelson is the SDBA’s endorsed IRA training and audit
provider and president of JM Consultants. You can contact
Nelson at 218.831.1858 or [email protected].
South Dakota Banker  March 2014  www.sdba.com
 19 
Bank Notes
MetaBank, Brookings
On Jan. 29, employees with MetaBank in Brookings
assisted in putting 312 bags of food together for the
Brookings Backpack Program.
Every Wednesday evening in Brookings, bags of food
are put together and distributed on Fridays to needy
children to take home on the weekends. 
American Bank & Trust, Huron
Shari Pyle, American Bank &
Trust, Huron, was selected to receive
a scholarship to attend the Human
Resource Management School at the
Graduate School of Banking at the
University of Wisconsin - Madison.
Pyle is VP of human resources
and organizational development
with American Bank & Trust, where she has worked
since 2005. She leads, directs and manages the bank’s
people portfolio, works closely with the CEO to foster
and promote desired bank culture, and advises senior
management on strategic employee issues and decisions.
She is a member of the Society of Human Resources,
Huron Chamber Board, First United Methodist Church
Finance Committee, Splash Central Marketing Committee,
Huron Ringneck Festival Committee and is a Junior
Achievement volunteer.
This year’s GSB Human Resource Management School
will be held April 6-11, 2014. Pyle receives a $925 discount
on her registration fees. The GSB’s Human Resource
Management School provides the foundation for new
or veteran human resource professionals to tie together
important issues in human resource management with an
understanding of the business of banking. 
Submit Your Bank Note
If you are an SDBA member bank or associate
member, tell us about your new employees, promotions,
community service projects, economic development
efforts, honors and landmark anniversaries. Email your
stories and photos to [email protected] or mail to: Alisa
DeMers, SDBA, PO Box 1081, Pierre, SD 57501. 
 20 
New SDBA Associate Members
The SDBA Board of Directors approved three new
associate members at its meeting on Feb. 12.
Convergent Retirement Plan Solutions, LLC
Contact: Ben Norquist, President
Address: 19533 St. Highway 371, Brainerd, MN 56401
Phone: 218.824.4900
Email: [email protected]
Web: www.convergentrps.com
Convergent offers a
comprehensive array of IRA
and retirement plan products
and services. Understanding
that compliance must be at the
heart of any successful retirement offering, Convergent
provides compliance support to its clients through a
combination of seminars and workshops, forms and
documents, compliance audits, webinars, consulting
hotline, and online training and reference materials.
Realizing that compliance alone is not enough to sustain
a profitable retirement offering, Convergent also offers
strategic consultation and business building support
to help financial organizations grow their retirement
business.
May & Johnson, P.C.
Contact: Jason W. Shanks, Partner
Address: PO Box 88738, Sioux Falls, SD 57109
Phone: 605.336.2565
Email: [email protected]
Web: www.mayjohnson.com
For almost 90
years, May & Johnson
has provided skilled,
innovative legal services at every level of state and federal
court while maintaining high standards of integrity. The
firm’s pride in legal excellence and dedication to personal
client service, its commitment to providing comprehensive
legal counsel, and its standard of community and civic
involvement remain fundamental to the firm and its
practice. May & Johnson is experienced in collection
matters, foreclosures, agricultural law and creditor
bankruptcy law. The firm also practices in the areas of
trust law, real estate law, taxation, probate law, estate
planning, and business, commercial and corporate law.
NuSource Financial Inc.
Contact: Jon Erpelding, President
Address: 9749 Hamilton Road, Eden Prairie, MN 55344
Phone: 952.942.9191
Email: [email protected]
Web: www.nusourcefinancial.com
We provide customized
service solutions to fit your specific
requirements.
South Dakota Banker  March 2014  www.sdba.com
Message from the Chairman...
Message from the President...
continued from page 4
continued from page 5
campaign and linking to taxation material at www.
sdba.com; writing an article in your bank newsletter or
preparing a letter to the editor in your local newspaper;
or consider holding a public forum with bankers, credit
unions and the Farm Credit System to discuss the merits
of the debate much like our banking friend, Lynn Peterson
with CorTrust Bank, has planned in Yankton on March 18.
The SDBA is committed to providing additional tools
to assist in your efforts. We will be producing professional
radio and print material which will be made available to
member banks to run in your local markets. If you have
multiple banks in your market, consider splitting the cost
with your peers and portraying it as a joint message from
your local community banks X, Y and Z.
It is no secret, I am competitive to the core, and that
competitive fire is even stronger when the game is not
played fairly. Such has been the case with this initiative.
While I do believe everyone is entitled to their own
opinions, it disturbs me when organizations like the credit
unions and Farm Credit manipulate the facts publicly to
justify their flawed position. I hope these tactics light a fire
in your belly, as well, to step up and get engaged. 
at the SDBA does a wonderful job planning and executing
an event that elected and appointed officials really do
enjoy.
But candidly, as an industry, we could improve
our effort on one important front—a more broad-based
show of support by bankers. The SDBA sends formal
invitations, RSVP requested to all of our invited guests.
In cases where those RSVP cards get misplaced, I follow
up individually with legislators. In the final tally, almost
every legislator say YES to our invitation. Legislators will
often ask if anyone from their hometown bank is coming
to town for our event. In those cases when my honest
answer is no, what kind of a message does that send to an
elected official?
Next year’s SDBA State Legislative Day is already set
for Feb. 11, 2015. We have a general election coming up in
November. Get to know your local legislative candidates
as soon as they announce that they intend to run, both
incumbents and newcomers. Start building those trusted
relationships early. Deepen those relationships by coming
to Pierre in 2015. 
Kevin Tetzlaff is president/CEO of First Bank & Trust,
Brookings. You can contact Tetzlaff at kevin.tetzlaff@
bankeasy.com or 605.696.2200.
Curt Everson is president of the South Dakota Bankers
Association. You can contact Everson at ceverson@sdba.
com or 605.224.1653.
SDDA Loan Program Can Help South Dakota Ranchers
T
he South Dakota Department of Agriculture
(SDDA) on Jan. 30 announced a rate reduction
on its Livestock Loan Participation Program for
producers located in a South Dakota federally disaster
designated county due to the Atlas Blizzard.
Applicants in eligible counties can receive a
lowered interest rate of 2.75 percent if the applicant is
at least 18 years old and has 60 percent of their gross
income from farming and ranching or farming and
ranching labor. This rate is available on applications
received before Dec. 31, 2014. Producers not located
in an eligible county can apply for the currently fixed
interest rate of 4 percent.
Eligible counties include Bennett, Butte, Campbell,
Corson, Custer, Dewey, Fall River, Haakon, Harding,
Jackson, Jones, Lawrence, Lyman, Meade, Mellette,
Pennington, Perkins, Potter, Shannon, Stanley, Sully,
Todd, Tripp, Walworth and Ziebach.
“We recognize the devastation Atlas Blizzard had
on our ranchers,” said Secretary of Agriculture Lucas
Lentsch. “The Department can work within state rules
and statutes to lower the interest rates even further for
our producers while providing some comfort to their
bankers with long-term low interest financing.”
The Department’s financial programs partner with
lenders across the state to provide borrowers with
lower interest rates. Loan programs are available for all
South Dakota farmers and ranchers that qualify for the
program. Producers do not have to be turned down by
their lender in order to qualify.
“The Department partners with your local bank to
provide financing, encouraging you to maintain your
lender relationship,” said Terri LaBrie, SDDA finance
program administrator. “Programs are available for
livestock purchase, facility expansion, grain storage
and value-added projects just to name a few.”
A quick reference sheet on the enhanced
Livestock Loan Participation Program can be found
at http://sdda.sd.gov/legacydocs/AgDevelopment/
FinancePrograms/Enhanced%20Livestock%20Loan%20
Participation%20Program-Atlas%20Blizzard.pdf.
For details on all financial programs offered
through SDDA, contact Terri LaBrie, finance
administrator at 605.773.4026 or visit the Department’s
website at http://sdda.sd.gov/finance. 
South Dakota Banker  March 2014  www.sdba.com
 21 
Classifieds
Business Banker (The First
National Bank in Sioux Falls,
Sioux Falls, S.D.)
The First National Bank in Sioux Falls
has an opportunity to join our team
and support our mission in building
successful relationships. Responsibilities
include identifying, developing and
managing customer relationships;
evaluating, originating and structuring
loan requests in a manner consistent
with bank loan policy; and proactively
managing ongoing risk exposure
with strategic plans for distressed
relationships. Position requirements
include a four-year college degree in
business-related field and a minimum
of five years successful business lending
experience. Additional education
including advanced degrees and/or
banking school experience preferred.
We offer our employees an outstanding
benefit package, excellent work
environment and competitive wages.
See our website for more details. Apply
to: www.fnbsf.com/careers. EOE/AA
Employer 
Credit Analyst (First National
Bank South Dakota, Yankton or
Mitchell, S.D.)
First National Bank South Dakota is
currently seeking a credit analyst to
join our credit administration team. As
a credit analyst, you will support the
lending process by spreading financial
statements, completing cash flow
analysis, and global cash flow analysis
while assisting lenders with analytical
writing on the loan memo. A bachelor’s
degree in accounting, business or
associated field with a minimum of two
years experience in direct lending or
underwriting is required. Applicants
must be able to manage competing
demands in a changing environment
while working mostly independently.
The ideal candidate would be able to
monitor their own work for accuracy and
thoroughness. Compensation includes
a competitive salary and full benefits.
Qualified candidates should apply online
at www.fnbsd.com – About Us – Careers
– View Our Current Openings. Req #
34-8511. AA/EOE 
Credit Review Officer I
(Fishback Financial
Corporation, Brookings, S.D.)
Fishback Financial Corporation is
looking for an individual to fill a credit
review officer I position. This person
should have a bachelor’s degree and a
 22 
minimum of two years of experience in
the bank lending and credit area or the
equivalent. This position’s responsibility
includes: reviewing loans in accordance
with the bank’s loan policies and
guidelines, analyzing smaller commercial
and agricultural credits and making
recommendations on how to minimize
the bank’s exposure and ensure that
lending practices conform to established
policy. For more information and to
apply online, visit www.bankeasy.com. 
Internal Auditor (The First
National Bank in Sioux Falls,
Sioux Falls, S.D.)
Join The First National Bank in Sioux
Falls in providing excellent service to
our customers while building successful
relationships. Position is involved
with analysis of business unit and
organizational risk. Responsibilities
include leading audits of complex
business units, coaching audit staff on
creating work papers, developing audit
programs and writing and editing audit
reports and assisting audit manager in
preparation of audit calendar. Fouryear degree in a business-related field,
professional certification as CPA, CIA
or CRMA and a minimum of five years
auditing experience required. We
offer our employees an excellent work
environment, competitive wages and
outstanding benefits. See our website for
more details. Apply to: www.fnbsf.com/
careers. EOE/AA Employer 
Personal Banker (First National
Bank SD, Huron, S.D.)
First National Bank South Dakota is
currently seeking a personal banker
to join our retail team. As a personal
banker, you will provide quality service
throughout every customer contact in
order to meet bank and retail goals.
This position will be responsible for
consistently conducting accurate
customer banking relationships while
promoting the bank and its products.
A bachelor’s degree in business or
associated field with a minimum of
two years experience in a retail or sales
environment where customer service
was top priority is required. Applicants
must demonstrate outstanding sales and
business development skills. The ideal
candidate would be able to exhibit strong
interpersonal and communication skills
with the ability to speak clearly and
persuasively. Compensation includes
a competitive salary and full benefits.
Qualified candidates should apply online
at www.fnbsd.com – About Us – Careers
– View Our Current Openings. Req #
34-8512. AA/EOE 
Retail Banking Officer (First
Bank & Trust, Sioux Falls, S.D.)
First Bank & Trust is looking for an
individual to fill a retail banking officer
position. This person should have a
bachelor’s degree and two years of
related experience or the equivalent.
This position’s responsibility includes:
developing new and maintaining existing
relationships that are profitable to the
bank, selling and cross-selling products
and services, processing consumer
loans as established by loan policy and
guidelines, provide backup support to
all CSR functions including the teller
line and perform wires, stop payments,
or any other customer request. For more
information and to apply online, visit
www.bankeasy.com. 
Trust Officer/VP (Liberty
National Bank Sioux Falls or
Dakota Dunes, S.D.)
The Wealth Management Division of
Liberty National Bank has an opportunity
for a trust officer/VP to join its Sioux
Falls or Dakota Dunes location. This
individual would be responsible for
generating new wealth management
client relationships through proactive
sales and relationship management
efforts, managing, administering and
retaining high net worth trust and
investment relationships, including 401k
plan clients and actively participating
in sales and development of trust,
investment management, 401k plan
services and private banking prospects.
Requirements include a bachelor’s
degree, eight-plus years of wealth
management, investment management
and sales experience in the financial
services industry, experience with 401k
plan services a plus, but not required.
For confidential consideration, forward a
detailed resume to Liberty National Bank,
Attn: Carrie Nothdurft, 3520 S Louise
Ave, Sioux Falls, SD 57106. Liberty
National Bank is an Equal Opportunity 
Place Your Listing
If you have a job opening at your bank
or something to sell, send your classified
listing to [email protected] and we will
post it in South Dakota Banker and on
the SDBA website. This service is free to
member banks. The fee is $50 for nonmembers. (150 word limit.) Questions,
call Alisa DeMers at 800.726.7322. 
South Dakota Banker  March 2014  www.sdba.com
Educational Calendar
Seminars and Conferences
ABA Government Relations Summit
March 24-26, 2014, Omni Shoreham, Washington, D.C.
SDBA 2014 Agricultural Credit Conference
April 9-11, 2014, Ramkota RiverCentre, Pierre
Opening New Accounts – Documentation and
Compliance
April 17, 2014, Clubhouse Hotel & Suites, Sioux Falls
IRA Basics
May 5, 2014: Pierre
May 6, 2014: Ramkota Inn, Sioux Falls
FDIC Bank Directors College
May 6, 2014: Sioux Falls Convention Center, Sioux
Falls
2014 NDBA/SDBA Annual Convention
June 8-10, 2014: Ramada Plaza Suites, Fargo, N.D.
SDBA 2014 Bank Technology Conference
Sept. 23-24, 2014: Clubhouse Hotel, Sioux Falls
March Webinars
The following are available as live webinars and/or
recorded seminars. For more information and additional
webinars go to www.sdba.com and click on Education
and then Webinars.

Safe Deposit Box Compliance Certification Program: 2

The CRPB Ruling on UDAAP & Collecting Past Due
Accounts

Safe Deposit Box Compliance Certification Program: 3

You’re the New Supervisor

Compliance Perspectives

Safe Deposit Box Compliance Certification Program: 4

Using Personal Tax Returns for Global Cashflow:
What’s Cashflow and What Isn’t
Banking Schools
GSB Bank Technology Management School
March 30-April 4, 2014: University of Wisconsin Madison
GSB Human Resource Management School
April 6-11, 2014: University of Wisconsin - Madison
Dakota School of Lending Principles
April 22-25, 2014: Aberdeen Dakota Event Center,
Aberdeen
SDBA 2014 National School for Experienced Ag Lenders
June 23-26, 2014: Black Hills State University, Spearfish

Notary Public
Graduate School of Banking at Colorado
July 13-25, 2014: University of Colorado - Boulder

Remote Deposit Capture: Customer Due Diligence
FFIEC Tier II Exam Considerations Plus Mobile
Capture
Graduate School of Banking at Wisconsin
Aug. 3-15, 2014: University of Wisconsin - Madison
* Scholarship deadline is May 1, 2014.

Safe Deposit Box Employee Compliance Certification
Program
GSB Financial Managers School
Sept. 21-26, 2014: University of Wisconsin - Madison

Virtual Cash, Virtual Wallets and Virtual Branches: The
New BSA Frontier

Bank Call Report Prep - Part 5
GSB Bank Technology Security School
Sept. 28-Oct. 3, 2014: University of Wisconsin Madison

For Sales People: Cross Selling and Building Advocates

Fair Lending for the Frontline

Power of Attorney & Living Trust Documents
Program and registration information is available six to
eight weeks before each conference. For complete registration
information, visit www.sdba.com.
SD Bankers Insurance & Services Update...continued from page 6
before and after the changes or adjustments. It may take
time for the employee to adjust to workstation changes;
follow up with employees to determine if the workstation
adjustments have been maintained or if the employee has
changed the workstation to the pre-assessment setting. If
applicable, investigate why the employee did not maintain
the recommended ergonomic workstation adjustments.
The implementation of an ergonomics policy in
your bank potentially provides an effective way for
you to attempt to mitigate or prevent work-related
musculoskeletal disorders (MSDs) among your
employees. Additional information can also be found
by accessing the OBPI workstation checkup brochure
at www.onebeaconpro.com/sites/OneBeaconPro/
blind/A%20Workstation%20Checkup.pdf. 
Craig Collins is president of OneBeacon Financial Services, a
member of OneBeacon Insurance Group. OneBeacon Financial
Services provides insurance to community banks and other
financial service organizations through the underwriting companies
of OneBeacon Insurance Group and is dedicated to helping a broad
range of financial services companies manage their risk.
South Dakota Banker  March 2014  www.sdba.com
 23 
SDBA 2014
Agricultural Credit Conference
April 9-11, 2014
Ramkota RiverCentre
Pierre, South Dakota
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The SDBA Agricultural Credit Conference is a two-day conference
designed for all lenders. Experienced and new ag lenders, as well as CEOs,
will all benefit from this conference. In addition to topics specific
to ag lending, attendees will hear comments from top economic advisors and
consultants on the current economy and what to expect in the months ahead.