BANCSERVE PRESS MONTANA BANKERS Local Ownership …€¦ · ASSOCIATION GROUP BENEFITS TRUST...

BANCSERVE PRESSMONTANA BANKERS

ASSOCIATION OFFICERS

Chairman: Sam Waters, President/CEO First Community Bank Glasgow, MT

President/CEO:Steve Turkiewicz, CAEHelena, MT

Vice Chairman:Rex Phipps, CEOGarfield County BankJordan, MT

Secretary/Treasurer:Bill Lucas, South Montana Market PresidentU.S. BankBillings, MT

Immediate Past Chairman:Bruce Glennie, Eastern Montana Business Banking Manager Wells Fargo, N.A. Billings, M

BOARD OF DIRECTORSWestern:

Tom Swenson, President/CEOBank of Montana Missoula, MT

Southwestern:

Tim Combs, PresidentFirst Madison Valley BankEnnis, MT

Robert DeWit, PresidentManhattan State BankManhattan, MT

Northcentral:

Scott Geda, Senior Vice PresidentFirst Security BankFort Benton, MT

Bruce Hoyer, President/CEOBelt Valley BankBelt, MT

Southcentral:

Jay Harris, PresidentYellowstone BankLaurel, MT

Josh Webber, PresidentFarmers State Bank of Denton Denton, MT

Andy Rio, President/CEOLittle Horn State BankBillings, MT

Visit us on the web at www.montanabankers.com Or call: 800/541-5126

August 25, 2016

Inside this Issue

Banking Commissioner Hall Honored Pg. 2

What to Know About Pokemon GO Pg. 3

Cash Recyclers: What to Know Before You Go Green Pg. 4

Compliance Alliance Pg. 6

Get Smart About Credit Day Pg. 6

2016 MBA Conferences and Workshops Pg. 7

MBA Web Seminar Education Program Pg. 7

2017 Quad-State Annual Convention Pg. 7

MBA Spotlights an Endorsed Product Pg. 8

Upcoming Events Pg. 8

Banks and Personnel Pg. 9

Local Ownership Transition forFirst Security Bank of Helena

On Friday, July 8th, ownership of First Security Bank of Helena officially changed hands transitioning the 46-year old financial institution from one group of local owners to another. The legacy that the Caruso family started continues with a new leadership team, Board of Directors, and ownership group with deep Helena roots.

As the transition occurs at First Security Bank of Helena, customers will be happy to know that convenience, accessibility, responsiveness, and flexibility will remain priorities. Customers will continue to be more than a number and can expect to have a personal connection to a bank that is dedicated to the Helena community.

In 1970, Paul Caruso, Sr. founded First Security Bank of Helena and also served as MBA’s Chairman between 1978 and 1979. Since that time, Mr. Caruso’s original mission has been continued through his son, Paul Caruso, Jr., and his granddaughter, Amy Quarles. Three generations of the Caruso family have served as President of First Security Bank of Helena and with the sale of the bank, the new team will continue the mission of honest relationship banking started nearly a half-century ago.

Loren Brown, the new President and CEO of First Security Bank of Helena, recognized the stability and consistency created by the Caruso legacy and both he and his team intend to build on the bank’s long-term success. First Security Bank of Helena will retain a community-banking mindset while the bank’s ability to help customers through new products, enhanced services and technology will grow.

First Security Bank of Helena will remain intimately tied to the Helena community, with a strong Board of Directors, a team of executives who grew up in Helena, and a broad local ownership group consisting of more than 90 local leaders, professionals and business people. While there are several banks around Montana operating under the

August 25, 2016 BANCSERVE PRESS

Or call: 800/541-5126Visit us on the web at www.montanabankers.com

BOARD OF DIRECTORSNortheastern:

Rich Kingsley, President/CEOValley BankGlasgow, MT

Bob Galt, President/CEOFirst State Bank of MaltaMalta, MT

Southeastern:

Rex Phipps, CEOGarfield County BankJordan, MT

Scott Klein, Vice PresidentFirst State Bank of ForsythForsyth, MT

Large Banks:

Scott Burke, President/CEOFirst Security BankMissoula, MT

Bruce Glennie, Eastern MT Business Banking ManagerWells Fargo, N.A. Billings, MT

Butch Bratsky, Sr. Banking Exec., Stockman Bank of Montana Miles City, MT

Bill Lucas, Area Market PresidentU.S. BankBillings, MT

Bill Toner, EP/Cash Mgmt. OfficerFirst Interstate BancSystem, Inc.Billings, MT

BANCSERVE BOARDChairman:Sam Waters, President/CEO First Community Bank Glasgow, MT

President/CEO:Steve Turkiewicz, CAEHelena, MT

Director:Steve Wheeler, EVP, COOFirst Security BankBozeman, MT

Director:Mike Grove, PresidentBank of the Rockies, N.A.White Sulphur Springs, MT

Director:Darrell Grogan, PresidentFirst State Bank of ForsythForsyth, MT

Continued from page 1.name of First Security Bank, First Security Bank of Helena is not affiliated with those institutions and currently maintains its sole original location on 11th Avenue in Helena.

According to CEO Loren Brown, “our bank customers will continue to see a culture of personalized service, convenience, accessibility, responsiveness, flexibility, and honesty. They will also see an increased appetite for loans, enhanced products and services, and an expanded approach to meeting customer needs. Products are standardized in banking. The difference between a high performing and low performing bank is the service layer which manifests itself through willingness to listen, convenience, speed, and honesty. First Security Bank of Helena’s management and board are committed to a culture where remarkable service is given to everyone.”

Banking Commissioner Hall HonoredAs One of Helena’s 20 under 40 The 20 Under 40 awards are meant to honor those who, through their industry and hard work, are moving the Helena community forward toward the future. In a technological age where you rarely need to set foot inside a bank, Melanie Hall, Commissioner of the Montana Division of Banking and Financial Institutions, is committed to maintaining relationships with our financial institutions and keeping things local.

Hall, a 2003 graduate of Tulane Law School in New Orleans, received her bachelor’s degree in economics in 2000 from Eckerd College in St. Petersburg, Florida. Prior to serving as commissioner, she was an attorney in private practice dealing with civil litigation in a wide variety of areas.

In 2011, then-Gov. Brian Schweitzer appointed Hall to the position of commissioner and current Gov. Steve Bullock reappointed her in 2013. Hall explained that because of national economic problems, it was an interesting time to be involved in banking and economic policy.

“When I started working here, it was a time when banks were under severe pressure due to the larger economy,” said Hall. “Over the last five and a half years, I have worked with banks to help them comply with the law and have enjoyed watching them succeed -- even in the face of tremendous regulatory and economic pressure.”

In her current role, Hall provides the overall leadership to the Banking Division, which is responsible for the supervision of all state-chartered banks, trust companies and credit unions. In addition, the Division licenses and examines more than 500 financial entities including mortgage lenders, servicers, brokers and originators, consumer loan companies, sales finance companies, deferred deposit lenders and escrow businesses.

“The challenge of what I do is seeing how the financial services industry has changed in a way that sometimes makes it cost-prohibitive for our financial institutions to continue to serve our smallest communities,” said Hall. “It’s sad when you receive a branch closure

BANCSERVE PRESS

ABA DELEGATES

Governement Relations Council: Don Bennett, President/CEO Freedom BankColumbia Falls, MT

Conference of State Associations:Sam Waters, President/CEO First Community Bank Glasgow, MT

Grassroots Administrative Committee: Kevin Clark, VP First Interstate Bank Great Falls, MT

Taxation Admin. CommitteeMarcy D. Mutch, CFO/EVPFirst Interstate BancSystem, Inc.Billings, MT

STATE BANKERS ASSOCIATION GROUP

BENEFITS TRUST BOARD OF TRUSTEES

(Serving MT & WY)Chair: Jay Hammond, PresidentLusk State Bank Lusk, WY

Bart Langemeier, PresidentFirst Bank of BridgerBridger, MT

John RonnebergCitizens Bank and Trust Co.Big Timber, MT

Kim Brooks, Controller/HR Off.First Community Bank Glasgow, MT

Cynthia Cheney, VP of HRFirst Security Bank Bozeman, MT

Brad Franklin, PresidentYellowstone Bank Sidney, MT

Jim Durfee, President/CEOSundance State BankSundance, WY

Gordon P. Johnson, PresidentAmerican BankBozeman, MT

August 25, 2016


STATE BANKERS ASSOCIATION GROUP BENEFITS TRUST

Continue on page 4

notice and you know that it’s the only branch for maybe 60 miles.”Hall explained that she encourages banks to explore all their options, from limiting services and hours, before reaching that point. But she admitted that sometimes it just doesn’t work. “It’s been eye opening to see just how important local branches are to those communities,” she said.

Since adopting the small-town lifestyle of Montana, Hall enjoys spending time at her family’s cabin on the Blackfoot River but has had her eyes opened to the struggles of rural banks and credit unions.

“I really like being an advocate for community banks and credit unions and the value they play in small business lending and keeping Montana main street communities prosperous and thriving,” said Hall. Courtesy of:LACEY MIDDLESTEAD For the Independent Record, August1, 2016

Continued from page 2.

What to Know About Pokémon GOBy Craig Collins, President

Whether you've heard about it on the news or witnessed a distracted pedestrian playing the game, it's hard to ignore the Pokémon GO craze. By using GPS technology, this new mobile application enables players to catch virtual Pokémon characters who appear in their real-world surroundings. In addition, the game features marked locations where players can go to earn points and engage with others.

While this new trend presents opportunities for businesses, it also poses many risks. Since its release, there have been reports of injuries and other dangerous situations involving pedestrians and drivers distracted by the game.

In this article, we define a few aspects of the game that banks should be aware of, as well as best practices to help avoid potential issues.

PokéStopsPokéStops are marked areas in the game that are typically public landmarks. Players who get within 125 feet of a PokéStop can obtain objects to help them advance in the game. Banks should be aware of PokéStops located nearby or within private areas of their property. Extra caution should be taken if the PokéStop is near a vault or behind teller lines. To help avoid incidents between pedestrians and drivers, access to PokéStops should not involve walking through drive-thrus or other traffic areas. Banks may report a dangerous PokéStop through game maker Niantic's website.

GymsGyms are marked areas in the game that are typically places of local interest. Players visit gyms to either battle or train their Pokémon characters. A gym is a more active and popular place for players to congregate and should not be located on a bank's property. Dangerous gym locations can also be reported through Niantic's website.

BANCSERVE/HEALTHSERVE STAFF

Government Relations: Steve Turkiewicz, CAE President/CEO

Education & Member Services:Pam O’Reilly Association Services Director

HealthServe:

Jill Martin, CISRInsurance Service Rep.

Deannie Higgins, CISRInsurance Service Rep.

Hannah Parrish, CISRInsurance Service Rep.

Amy MillerAdministrative Assistant

BANCSERVE Insurance Agency:Tempi Ruth, CIC, CAE, CISRSales Director

Bookkeeping:Karmen MillhouseAccounting Technician

MBA/BANCSERVE, Inc.1 N. Last Chance Gulch, Ste.4Helena, MT 59601Telephone:800/541-5126406/443-4121Fax: 406/443-7850

HealthServe1 N. Last Chance Gulch, Ste.4Helena, MT 59601Telephone:877/443-0520406/443-0520Fax: 406/495-2674

BANCSERVE PRESSAugust 25, 2016


Cash Recyclers: What to Know Before You Go GreenBy Craig M. Collins, President at OneBeacon Financial Services

Designed to automate the cash-handling process, cash recycling is a banking technology trend on the rise. Cash recycler machines (CRM) are beginning to make their way into commercial banks across the country.

Cash-handling automation increases the speed of transactions and improves teller accuracy. Additionally, managers and tellers spend less time conducting vault transactions due to the CRM’s ample cash capacity.

Banks that are considering purchasing CRMs can help protect their valuable machinery, employees and property by enhancing and amending internal controls as well as purchasing the appropriate insurance coverage. This article discusses unique exposures that could arise from CRM usage, as well as risk management considerations.

Cash Recycling 101 The simplest definition of a cash recycler is an ATM for tellers. Instead of using a cash drawer, a teller uses the recycler to handle incoming and outgoing cash transactions. The machine’s capabilities range from counting and accepting cash to authenticating and dispensing cash. The idea is for banks to deposit, store and distribute the same cash through these machines – thus “recycling” cash versus having to ship or order it through outside sources.

A CRM is typically placed behind the teller line in between two tellers. These machines carry a higher cash limit than a typical teller drawer, which reduces the number of vault transactions needed throughout the day.

LuresLures are objects that can be attached to any PokéStop in order to lure Pokémon to its location. Lures increase the rate at which Pokémon appear and must be purchased through the app.

Unfortunately, there isn't much a bank can do to control where and when lures appear. However, all lures disappear after 30 minutes so should only pose a temporary risk.

SummaryPokémon GO has claimed the title of most popular mobile game in United States history. With the proper strategy, this game can be used to attract current and potential customers to a bank. But as the game's popularity continues to increase, banks must stay aware of their surroundings to mitigate exposure to injury and security breaches.

About UsOneBeacon Financial Services offers policies created specifically for the unique insurance needs of financial services companies and community banks. For information about our products and services, as well as tips and insights, please visit our website at onebeaconfs.com.

Contact Us to learn more about how OneBeacon Financial. Services can help you manage your unique risks, please contact Craig Collins, President, at [email protected] or 952.852.2434.



Dedicated to the Financial Institution MarketCurrently serving over 40 banks in Montana & Wyoming

Financial Institution Bond, Directors & Officers Liability, Cyber Liability, Bank Card Protector, Property, Auto, Workers Compensation, Lenders Single Interest,

Mortgage Protection, Foreclosed/ Force Placed Property & Flood Coverage

Risk Management Considerations

1. Employee Dishonesty/Teller ErrorsIssues related to employee dishonesty often involve cash transactions by and between tellers. By removing cash from the teller’s drawer and placing it in a CRM, banks can minimize the temptation – and ability – for employees to mishandle money.

To further monitor funds, banks should amend the internal audit process to include procedures to verify cash amounts in the CRM on a random basis.

2. TheftHousing cash in the CRM can help to reduce the amount of cash exposed to a robbery. Many CRMs have a built-in “robbery mode” feature. If the teller activates the feature, the CRM will dispense a predetermined amount of cash and automatically shut down for approximately 20 minutes. (The triggering of “robbery mode” can also be configured to activate the bank’s silent alarm system.) The cash limit within the CRM should be predetermined in order to control the amount of money susceptible to theft.

To help deter potential robbers, signage indicating CRMs are in use should be placed at the entrance of the bank. When it comes to safe storage, the CRM should be placed in an area that is properly alarmed when the bank is closed. Suitable spaces include a vault or other areas equipped with motion, heat, sound or vibration alarm systems.

3. Employee SafetyCRMs can be difficult to transport, weighing in around 1,000 pounds each. While some machines remain stationary behind teller lines, others can be moved to the vault outside of banking hours. To help protect employees from injury during transportation, proper ergonomic training and procedures must be in place. Floor surfaces should be monitored and equipment should be inspected on a scheduled basis.

4. Equipment and PropertyInvestment in CRM equipment is significant. Upon purchasing the equipment, it will need to be protected against hazards such as water, fire and electrical surges. The new equipment should be reported to an insurance agent, who will ask for its value as well as its intended location within the bank. The equipment will then be scheduled as covered equipment on the insurance policy.

Banks/branches should also review their power outage procedures since CRM transactions cannot be conducted without power.

ConclusionBanks that are considering adding CRMs are likely excited by the efficiency and convenience of cash-handling automation. But new technology – as well as changes in banking operations – can present challenges for banks. CRMs are most effective when banks fully understand the benefits of these machines and are prepared to protect themselves against the risks. When adapting this new technology, banks should secure adequate insurance coverage and adjust internal policies and procedures.



Question: Can a bank waive an early withdrawal penalty on a CD for an insider? This is not a normal practice for any customers. Is this a Reg O violation? We also have a reduced fee for employees for wire transfers – can we waive that for a bank insider?

Answer: Waiving these types of fees is not prohibited by Reg O (which discusses not waiving fees for overdrafts in 12 CFR 215.4) but it’s just not a best practice to waive fees for bank insiders that you wouldn’t waive for your employees or customers as such preferential treatment can be a Regulation O red flag. But, keep in mind, the six day rule for time deposits.

(c)(1) Time deposit means:(i) A deposit that the depositor does not have a right and is not permitted to make withdrawals from within six days after the date of deposit unless the deposit is subject to an early withdrawal penalty of at least seven days’ simple interest on amounts withdrawn within the first six days after deposit. A time deposit from which partial early withdrawals are permitted must impose additional early withdrawal penalties of at least seven days’ simple interest on amounts withdrawn within six days after each partial withdrawal. If such additional early withdrawal penalties are not imposed, the account ceases to be a time deposit. The account may become a savings deposit if it meets the requirements for a saving deposit; otherwise it becomes a transaction account.

For More Information on MBA’s Compliance Alliance Program, contact Pam O’Reilly at [email protected]

Compliance Alliance Question of the Month

ABA’s National Campaign

Join us in working with young people to raise awareness about the importance of using credit wisely!!

Get Smart about Credit will be celebrated OCTOBER 20, 2016!!

Register Your Bank Today at aba.com



MBA Education Program Web Seminars The Montana Bankers Association is providing live web seminars targeted to a more advanced audience, in addition to new programs for previous participants. If you are looking to supplement your current education plan or trying to save on expenses, what better way to obtain both high quality education and save money?MBA continues to support Montana bankers in dealing with an ever challenging business environment by providing a multitude of educational opportunities. Whether it be expanded live seminars and conferences, to our two webinar providers, Omnovia and Total Training Solutions, we look to provide a wide variety of options and pricing to meet the needs of all bankers (large and small) for education and training.So please, take some time and look at the offerings and if you are looking for something in particular and don’t see it – give us a call and we’ll see what we can do. Again, we value our members and are here to serve. For more details on each webinar please go to our website and view either our Calendar or Education page at www.montanabankers.com to see what we have to offer! Contact Pam O’Reilly, Association Services Director, at 800/541-5126 or [email protected]

2016 MBA Conferences and Workshops

q IRA Basics & Update, Hilton Garden Inn, Missoula, Sept. 7-8q Security Conference, Best Western GranTree, Bozeman, Sept. 12-13q Lending Compliance Conference, Best Western GranTree, Bozeman, Sept. 14-16q Women in Banking Conference, Best Western GranTree, Bozeman, Oct. 10-11Watch for our next set of Conferences and Workshops coming up in Fall 2016 at www.montanabankers.com or for more information contact Pam O’Reilly, Association Services Director, at 800/541-5126 or [email protected].

June 4-6, 2017

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Presented by the Montana, North Dakota, South Dakota and Wyoming Bankers Associations

Rapid City, South Dakota

Save the Date!


Upcoming Events


ABA Annual ConventionOctober 16-18, 2016

Music City Center, Nashville, TN

National Compliance SchoolOctober 22-28, 2016

Emory Conference Center & Hotel, Atlanta, GA

National Agricultural Bankers ConferenceNovember 13-16, 2016

JW Marriott Indianapolis, Indianapolis, IN

National Conference for Community BankersFebruary 19-22, 2017

JW Marriott Orlando, Grand Lakes, Orlando, FL

2016 Capitol Hill VisitSept. 13-16, 2016Washington, D.C.

Upcoming Events

Montana Bankers Association Spotlights an

Endorsed Product

The Montana Bankers Association is pleased to provide you with a new and improved Thumbprint Signature Touch Pad.Benefits of the new pad include:• More durable product (no more

breakage or ink spillage);• Clearer fingerprint images;• Leaves less residue on the finger;• Provides as many or more impressions as the previous

pad; and• Same shelf life.Montana financial institutions began using a new security device in April 1998, the Thumbprint Signature Touch Pad. The touch pad is intended to deter counterfeit and stolen check fraud by obtaining a Thumbprint Signature (fingerprint) from non-customers (customers who do not have a depository relationship with the bank) when cashing "on-us" and "not-on-us" checks. The thumbprints can be used by law enforcement agencies in the investigation of fraud claims made by account holders, and bank's usage of the program is a natural deterrent. Participants will not retain the thumbprints in their files and only in cases of suspected fraud, will the signature be shared with law enforcement officials.Note: The Thumbprint Signatures are not used in place of standard forms of identification, but is recorded in addition to customary I.D.

For more information please see the enclosed brochure and order form or contact Pam O’Reilly, Association Services Director, at 800/541-5126 or [email protected].

Thumbprint Signature Program

MBA Board of Directors MeetingNov. 15-16, 2016

Best Western Great NorthernHelena

MBA -MIB Banker Day at the CapitolJan. 18-19, 2017

Best Western Great NorthernHelena


Or call: 800/541-5126

Banks and PersonnelBillings• First Interstate Bank donated $150,000 to

RiverStone Health’s Primary Care Clinic. Bozeman• Kurt Brown has joined Stockman Bank as a

commercial loan officer for the the Bozeman Kagy office. Kurt brings 17 years of financial and operational experience to the position.

Conrad• Stockman Bank presented a $250 check to the

Conrad Community Education Foundation to be used towards scholarships for Conrad High School alumni who are continuing their postsecondary education. This was yet another donation from the bank’s “Jeans for Community” project which allows employees to donate money each Friday when they wear jeans. From this fund, employees have donated thousands to local charitable causes!

Hardin• First Interstate Bank is an annual supporter of the

Ducks Unlimited banquet and fundraiser. Their large basket for the large auction raised $350 for their Greenwings Kids Day. During the day, children learned proper shooting techniques and gun safety.

• First Interstate Bank organized a Community Shred Day in the bank parking lot. Free will donations were then turned over to the Healthy Hardin Coalition, a non-profit developing walking and biking paths, Farmers Markets and nutrition classes. The coalition received $1,688.00. A local youth group was invited to hold an e waste collection at the same time and location. For a fee, people turned in electronics, such as older computers, TV’s and microwaves for recycling, with the fees funding a summer camp.

• Hardin Garden, a newly formed non-profit in Hardin, received a donation from First Interstate Bank. The initial year is producing 14 public garden plots. In an economically distressed community,, the food garden ensures the availabiltiy of fresh produce and healthy nutrition for all.

Helena• Doug Hill is the new Director of In-State Loan

Programs at the Montana Board of Investments.

He replaces Herb Kulow who retired after 15 years of service with the MBOI. Doug started his banking career in 1983 and spent 27 years at the Stockman Bank in Sidney.

Miles City• As the leading Ag lender in Montana, Stockman

Bank recently pledged to match all private contributions up to a total of $150,000 that are made to the Miles Community College, Ag Advancement Center Project through October 31, 2016. Stockman Bank’s contribution brings the total donations and pledges to exceed $2.3 million. Miles Community College hopes to be holding classes in the new academic and community facility by spring 2017.

Missoula• Ashley Kuehn, Vice President, First Montana

Bank, was recently awarded the Certified Financial Marketing Professional designation from the Institute of Certified Bankers. The CFMP designation is awarded to individuals who demonstrate excellence in the field of financial services marketing.

Sidney• Richland Economic Development Corp.

announced that the Revolving Loan Fund (RLF) committee awarded a loan for the re-opening of the Pizza House, a popular eating establishment in the community for 40 + years. Owners, Jennifer and Terri Moore, completed the application in partnership with lender, Donald Garsjo, of Yellowstone Bank and then presented the project to the RLF committee for review. The funding request was to purchase the business, equipment and supplies.

Visit us on the web at www.montanabankers.com

The Montana Bankers Association commends all of our bankers and associate members for their achievements. If your bank has a promotion, retiree, special event,

fundraiser or any newsworthy item, please let us know. You may contact Pam at 800/541-5126 or e-mail

[email protected].

BANCSERVE PRESS MONTANA BANKERS Local Ownership …€¦ · ASSOCIATION GROUP BENEFITS TRUST...

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