NEBAKA INDEPENDENT BANKER · PDF fileNEBAKA INDEPENDENT BANKER ... The Tilden Bank, ... First...
Transcript of NEBAKA INDEPENDENT BANKER · PDF fileNEBAKA INDEPENDENT BANKER ... The Tilden Bank, ... First...
NEBRASKA
INDEPENDENT BANKER
Official publication of the Nebraska Independent Community Bankers
FALL 2013
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2012 - 14 Officers & Directors
Chairman – Jon SchmadererTri-County Bank, Stuart 402-924-3861
Chairman Elect – Korey SchowBank of Keystone 308-726-2171
Vice Chairman – Chris TwibellBrunswick State Bank 402-842-2435
President/CEO – Kurt T. YostNICB, Lincoln 402-474-4662
Secretary – Mark HesserPinnacle Bank, Omaha 402-697-5991
Treasurer –Arnold LowellCerescoBank, Ceresco 402-665-3431
Immed. Past Chairman – Scott Selko*Bank of Mead 402-624-2255
Bill Anderson*First State Bank, Hordville 402-757-3231
Mark BarattaFirst National Bank, Omaha 402-602-3512
Brad ClarkFirst Nebraska Bank, Weeping Water 402-267-6355
Don Eberly*Stanton State Bank 402-439-2164
Kirk EnevoldsenThe Potter State Bank of Potter 308-879-4451
Nadine HagedornCitizens State Bank, West Point 402-372-1998
Greg Hohl*Wahoo State Bank 402-443-3207
Chad JohnstonFarmers State Bank, Maywood 308-362-4226
Patrick KennerThayer County Bank, Hebron 402-768-6027
Lance MarshallElkhorn Valley Bank, Norfolk 402-371-0722
Cameron MathisThe Tilden Bank, Creighton 402-358-3726
William L. McQuillan*First National Bank-Ord, Greeley 308-428-3925
John Nelsen*FirsTier Bank, Holdrege 308-995-9595
David Norton*First State Bank Nebraska, Filley 402-662-3555
David A. OchsnerCommercial Bank, Nelson 402-225-3381
Paul StanosheckState Bank of Odell 402-766-3720
David SteffensmeierFirst Community Bank, Beemer 402-528-3223
Allen ThorbergPetersburg State Bank 402-386-5297
Joel WiensFirsTier Bank, Kimball 308-673-5251
*denotes Past Chairman
Nebraska Independent Banker Magazine FALL 2013
2 Management Conference Schedule
November 13-15, 2013
3 Guest Editorial
Max WakeDirector, Federal Reserve Bank – Kansas City
5 From the Top
Bill LovingICBA Chairman
7 Member FeaturePotter State Bank
10 Insurance
Diana PoquetteUNICO Group
11 Employment LawJack L. Shultz and Robert B. TruheHarding & Shultz
14 Registration Form for Conference
15 Educational Training
17 Resource Guide
Featured on the cover The Potter State Bank (left to right) Brothers: Jett, Hal, and Kirk Enevoldsen(front) Jane Enevoldsen (Vice President/Operations/Kirk’s wife)photos on the wall are of parents & grandparents
Nebraska IndependentCommunity Bankers1320 Lincoln Mall, Suite 100PO Box 83073Lincoln, NE 68501-3073phone 402.474.4662www.nicbonline.comemail: [email protected]
Editor/PublisherKurt T. Yost
Address changes send to:[email protected] postal box listed Advertising Requests/Articles to:tracy@nicbonline
Nebraska Independent Banker Magazine Page 1
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WEDNESDAY, NOVEMBER 13, 2013
6:30 pm-8:30 pm Kick-Off ReceptionPinnacle Bank Arena
THURSDAY, NOVEMBER 14, 2013
8:30 am-10:30 am Exhibitor Set-Up
10:00 am Conference Tip-OffTim MilesHead Coach, Men’s BasketballUniversity of Nebraska
11:00 am Speed Exhibiting
12:00 Noon Lunch with Exhibitors
1:30 pm Legal Update Slam DunkJohn Guthery, AttorneyPerry, Guthery Hasse &Gessford PC LLO
2:45 pm “Cyber Security Regulator Expectations”Denise Mainquist CISA,CPHITITPAC Consulting LLC
4:00 pm How to the Stay in the GameMortgage Compliance 2014Donna Clayton, Sr. Vice PresidentCompliance & Risk ManagementLenderLive
5:00 pm-7:30 pm Half-Time Reception
7:30 pm Evening Open
FRIDAY, NOVEMBER 15, 2013
9:30 am-10:45 am Winning With Analytics - What Banks Can Learn from Moneyball
Ted Triplett, Chief Marketing OfficerInsight Ecosystems
10:00 am-3:00 pm Spouse/Guest Program“Tournament of Shopping”
Spouses will start the day at a trunk showfrom an LA Designer who is originally fromNebraska followed by lunch and stops atsome of our local boutiques.
11:00 am ICBA UpdateJohn Buhrmaster, ICBA Chair-ElectFirst National Bank, Scotia, NY
11:30 am Annual NICB Membership MeetingJon Schmaderer, NICB ChairmanTri-County Bank, Stuart, NE
Noon-2:00 pm Federal Reserve Update
Esther George, PresidentFederal Reserve Bank Kansas City
2:30 pm-4:00 pm NICB Directors Meeting
6:30 pm-7:00 pm Receptionsponsored by –First National Bank, Omaha
7:00 pm-9:00 pm Chairman’s Banquet Jon & Jennifer SchmadererNICB Chairman
8:00 pm U.S. Senator Deb FischerGuest Speaker
8:30 pm Heads & Tails Game
We conclude the NICB “Game On” Conference
with a challenging twist to “Heads or Tails.”
Purchase your game card during the banquet ata chance to win cash. Proceeds will go to theNICB PAC.
Nebraska Independent Community BankersAnnual Management Conference & Trade Show
November 13-15, 2013SCHEDULE
GAME ONPage 2 Nebraska Independent Banker Magazine
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Nebraska Independent Banker Magazine Page 3
GUEST ED ITORIAL
Idid not fully understand the role of Federal Reserve
Bank directors until I served, so it is my hope that this
will help describe the role in some detail. The Federal
Reserve System is unique among our nation’s institutions in
that it represents a balance of public and private interests. The
12 individual Reserve Banks across the country are quasi-
governmental with boards of directors that act in an oversight
capacity, while the Board of Governors in Washington, D.C.,
is a governmental body. This creates a system of checks and
balances and also provides a broad base of input on national
policy.
The authority of a Reserve Bank’s board of directors is
established in the Federal Reserve Act. In particular, the act
provides that the Reserve Bank “shall be conducted under the
supervision and control of a board of directors” and that
directors “shall perform the duties usually appertaining to the
office of directors of banking associations and all such duties
as are prescribed by law.”
As a director of the Federal Reserve Bank of Kansas City, I
am one of nine individuals who provides a Main Street
perspective to the decisions of the nation’s central bank and
who also oversees the operations of the Bank. Serving as a
Fed director is a responsibility I take seriously as a
community banker.
The Kansas City Fed, along
with its Branch offices in
Denver, Oklahoma City, and
Omaha, is responsible for
Federal Reserve activities in
the Tenth District. This is a
large and diverse area that
includes western Missouri,
Kansas, Nebraska, Okla-
homa, Colorado, Wyoming
and northern New Mexico.
The Kansas City Fed
supports the Federal Reserve’s three mission areas:
conducting monetary policy, providing financial services
such as cash and payments processing to depository
institutions, and supervising state member banks, bank
holding companies and thrift holding companies located in
its district.
I was elected to a three-year term as a director of the Kansas
City Fed in late 2011 by banks that are members of the
Federal Reserve System. As a Class
A director, I am one of three
bankers on the board who serves in
such a role. Each Class A director is
elected by a group of banks in the
district that represent large, medium
and small member banks,
respectively. I was elected by
Group 3 member banks, which, at
the time of my election, had a
combined capital and surplus of less
than $3.25 million.
The Kansas City Fed’s Class B and Class C directors
represent the general public. The three Class B directors are
elected by member banks but cannot be bankers or hold stock
in a bank, while the three Class C directors are non-bankers
who are appointed by the Federal Reserve’s Board of
Governors in Washington, D.C. This structure is repeated in
the 12 regional Reserve Banks located across the country, and
each Bank’s board consists of business and community
leaders who are able to provide a wide range of perspectives
on the issues facing the Fed today.
Our nine-person board in Kansas City typically meets
monthly at the Kansas City Fed’s headquarters. Board
members are tasked with ensuring the Bank is well run and
providing real-time information on current economic
conditions. During meetings, directors are asked to draw on
their own judgment, experience, and expertise, and to serve
as a sounding board and a source of guidance for Bank
management on operational and budget matters.
In addition to oversight, directors provide real-time economic
intelligence and insight into conditions in our respective
regions and sectors, including consumer spending, labor,
banking, agriculture and other businesses. The Bank’s
president, Esther George, uses the information we provide as
she considers options for monetary policy at the regular
meetings of the Federal Open Market Committee in
Washington, D.C. In addition to discussing current
conditions, another important responsibility, required by law,
is establishing the Bank’s discount rate, which is the rate
institutions must pay on loans from the Fed. We recommend
this rate be set at a specific level, but the Board of Governors
is ultimately responsible for setting the final rate after hearing
from the boards of each of the 12 Reserve Banks.
Max Wake
Observations from the Tenth District
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During the most recent financial crisis, I was often asked if
bankers who serve as directors are conflicted because of the
Fed’s role in regulating financial institutions. I should note
that while I am a banker and provide oversight to the Kansas
City Fed on issues involving their budget and operations, by
law, I am completely separated from any decisions about the
Fed’s supervisory responsibilities. There is a long-established
and respected firewall between the Bank’s supervision
responsibilities and my work as a director, and this division
is something I respect.
Another important legal
separation of duties is the Bank’s
independent audit function, which
reports directly to the Reserve
Bank’s Board of Directors. I
currently serve as chair of the
Bank’s Audit Committee. In this
role, I ensure the integrity of the
Reserve Bank’s financial
statements, evaluate the
independent auditor, assess the
effectiveness and independence of
the Reserve Bank’s internal audit
function, and ensure the Reserve
Bank’s compliance with its Code
of Conduct, and risk management policies and practices.
As audit chair, I meet annually with other Reserve Bank audit
chairs and leadership at the Board of Governors to discuss
current issues related to the work of the Reserve Banks. The
composition of the Reserve Bank Boards and the role
directors serve is a critical part of the system of checks and
balances that we rely on for our most important institutions
in the country.
My service as a director has shaped my thinking about the
important need for bankers, business and community leaders
to protect the structure and governance of the Federal Reserve
System. Without this unique, decentralized structure, regions
across America would not have the proper mechanisms in
place to ensure appropriate access and involvement in
national policy deliberations.
The Federal Reserve faces many important issues as the
economy continues in its recovery. Of particular interest and
importance is the issue of leadership at the Fed. Beyond the
chairman’s seat, currently held by Ben Bernanke, there is a
larger leadership transition occurring as a number of seats on
the Board of Governors are open, or are expected to be open.
Section 10 of the Federal Reserve Act requires that, in regard
to members of the Board, not more than one of whom shall
be selected from any one Federal Reserve district, the
president’s selections “shall have due regard to a fair
representation of the financial, agricultural, industrial, and
commercial interests, and geographical divisions of the
country.” The majority of current governors largely represent
areas east of the Mississippi and most were previously
involved in academics or served at other government
agencies.
As the issue of filling vacancies on the Board of Governors
is considered, I believe diverse geographic and industry
representation must be a priority. Of particular interest to me
is having a leader with expertise in community banking. One
of the seats that recently became vacant was held by a
governor who had experience as a community banker, and
another soon-to-be vacancy was held by someone who
previously served as a community bank supervisor. These
departures have left a gap in how community banks are
represented in decisions that affect us directly.
It’s important that community bankers continue to be
represented in the Federal Reserve System, which was
designed to include the input of numerous institutions,
regardless of their size and
geographic location. Esther
George said it well when she
told the publication Bank
News recently that “It is vital
that the Federal Reserve
continues to maintain its
connection to community
banks, which play a key role in our economy.” She added that
“it will be important to fill this gap [on the Board of
Governors] with experienced and knowledgeable individuals
who can bring perspective to the issues faced by the entire
range of financial institutions in this country.”
Regional and community banks serve local markets, and in
turn, support local economic growth. As a community banker,
I value the opportunity to connect my community to the
central bank of the United States through a structure that
appropriately balances the power of one of our most
important institutions.
Max WakeDirector, Federal Reserve Bank of Kansas CityPresident, Jones National Bank, Seward, NE
402-643-3602
Editors Note: Editors Note: Federal Reserve Bank President Esther George will
be our Noon speaker on Friday, November 15, at our upcoming
conference. We invite Members and Non-members to attend the
conference or register for the just the luncheon.
Page 4 Nebraska Independent Banker Magazine
There is a long-
established and
respected firewall
between the Bank’s
supervision
responsibilities and
my work as a director,
and this division is
something I respect.
Esther George, President
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Nebraska Independent Banker Magazine Page 5
FROM THE TOP
Facts Stacked Against TBTF
In my travels, I’ve confirmed that regardless of where you
live, the lifeblood of each and every community is its
community banker and his or her desire to make their
community a better place to live and work. This means that,
as community bankers, we want to stand up for what is right,
and we determine what is right based on a host of criteria—
core values, beliefs, facts, common sense, morals and a
higher purpose. Our conscience is with our community, plain
and simple.
Community bankers by their very nature are evaluators,
taking in all perspectives of a situation to come to a final
conclusion. That’s how we make loans. We look at the facts
surrounding the request and determine if a loan makes sense
for us and the borrower. We don’t simply rely on a formula.
This same strategy is employed when we are analyzing
important policy issues, such as too-big-to-fail.
That’s why I am dismayed when others say that my fury
against too-big-to-fail simply comes out of emotion—nothing
could be further from the truth. Community bankers’ plates
are full, and mine is no exception, so I don’t have time to
simply get emotional over a topic. I need clear and hard facts
to help me determine if it’s a case worth fighting for. And
guess what—it is!
So here are some facts for anyone out there who might want
to know more about how ending too-big-to-fail will support
free markets
and help our
economy. I en-
courage you to
share these
facts with
members of
Congress, your
regulators and
the media so
you can con-
tinue to
e n l i g h t e n
stakeholders
and average
citizens about
how too-big-
to-fail affects
them and their
c o m m u n i t y.
• Too-big-to-fail distorts free
markets, incentivizes risky
behavior, leaves taxpayers on
the hook for bailouts and creates
unfair competitive advantages
for the largest banks.
• Many studies show that too-big-
to-fail financial firms do enjoy a
funding advantage over the
smaller institutions that do not
have a government guarantee against failure. Both a
study by two economists at the International Monetary
Fund and a Bloomberg View analysis estimated their
funding subsidy at approximately $83 billion a year. To
bring the point closer home, the competitive advantage
has been estimated at 20 to 80 basis points by another
study. That’s clearly an advantage.
• FDIC data show that while megabanks have the lowest
credit quality in the banking industry, they also have the
lowest cost of funding.
• Large or interconnected institutions are too-big-to-
prosecute for fear of destabilizing the economy, and their
executives are too-big-to-jail. The very firms that have
inflicted the most abuse on consumers and the most
damage to our financial system and economy are
effectively immune from being held responsible for their
actions.
• But there is perhaps no greater reminder of the too-big-
to-fail impact than the constant, oppressive regulatory
burdens that community banks face on a daily basis.
For more facts and clarity, I encourage everyone to read the
ICBA study on ending too-big-to-fail. You can find it at
www.icba.org/tbtf.
With all of these facts stacked against too-big-to-fail, it’s hard
for anyone not to see the clear direction we must take for the
sake of our economy and the communities we proudly serve.
William A. Loving, Jr., ICBA Chairman
Bill Loving
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Page 6 Nebraska Independent Banker Magazine
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Contact: Rhonda at Executive Travel to Reserve or for Pricing on Resort Lodging Only
800-737-0582 or [email protected]
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M E M B E R F E AT U R E
President Kirk Enevoldsen
Exec Vice President/ Jett Enevoldsen (brother)
Cashier
Vice President/IT Officer/ Hal Enevoldsen (brother)
Landscape Architect
Exec Vice President Jo Kinsey (sister)
Director, Retail Banking
Country Club Bank, Kansas City
Vice President/Operation Jane Enevoldsen (Kirk’s wife)
Established 1908
Branch Kimball
Community size 400
Employees 9 full time / 1 part time
Asset Size $35 Million
Nebraska Independent Banker Magazine Page 7
Observations from the Editor:
When you pull into Potter, population 400, some 18
miles West of Sidney on I-80 and Highway 30, the
first thing you notice is how tidy main street sits.
The Enevoldsen family and the pride they take in
their community is evident everywhere you look.
There are no empty buildings and all are well kept,
with main street featuring an outdoor reading
gazebo in a small park adjacent to the library. The
“Tin Roof” sundae found at the local ice cream
parlor across from the bank capped off a great visit.
We salute the Enevoldsen family and their 105
years of service to the Western Nebraska
community of Potter.
Potter State Bank
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Page 8 Nebraska Independent Banker Magazine
Kirk, where did you grow up and how long have you been
in banking?
(In banking) 40
years – started
in Junior High
as a teller/
bookkeeper
running a
posting machine
and filing
checks.
Grew up in
Potter then went
to Hastings
College for four
years.
What other family members are involved in the bank?
Almost everyone in my family is in banking in one form or
another – except my youngest son, Jade, who is a pharmacist
in Salt Lake City. My son, Joey, works for FiServe in Lincoln.
My oldest son, Joshua, moved back to Kimball from a bank
in Cheyenne, WY to manage our Kimball branch along with
my nephew, Drew, who is (brother) Hal’s oldest son.
What Service or
Product are you
offering to stay
competitive?
Debit cards, Online
banking and bill pay.
How do you meet
the educational
needs of your
Directors and
Employees?
NICB webinars, Conferences, educational events and other
bank seminars.
What are you offering your customers in the form of
technology?
Online banking
Are you looking at any new Technology products to offer?
Mobile banking
What’s your biggest challenge in the area of Internet
Banking and/or Technology Compliance?
Providing a totally secure banking environment while cyber
crime seems to be on the rise
How is your bank addressing Succession and Strategic
Planning?
We’re hoping we can continue to attract our children back to
the area. A couple have indicated interest.
Does the bank do a Customer Appreciation Event?
We host a customer appreciation day in December of each
year.
Besides Banking what are your other Interests?
Boating, Music, Gardening, Community Development and
spoiling the grandchildren.
If you could have lunch with someone connected to
banking who would it be and what would you discuss?
I’d take a step back in time and have lunch with my Dad and
Kirk Enevoldsen, President
Jett Enevoldsen, EVP
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Grandfather (both are now deceased) and I’d first thank them
for the awesome opportunity they provided us at the bank in
Potter. I’d also thank them for a great job of counseling our
customers through the years. We are really blessed with a
financially solid customer base. It’s made my job here easy.
Finally we’d spend some time talking about the good old
days in banking, before Dodd/Frank and the rest of the
compliance legislation over the last 25 years.
If you weren’t a Community Banker what would you be
doing?
In my dreams and
assuming I had the
talent I would be
playing my trum-
pet in a band with
my sister who also
enjoys music; or I
would be land-
scaping with my
brother Hal; or I
would be coaching
basketball some-
where with my
brother Jett. (In my
dreams this brother duo would be hugely successful.)
Finally, if I wasn’t a “community banker” that would mean
I would actually have some extra time on my hands and my
real dream would be to travel to some distant and exotic
places with my beautiful wife, Jane!!
Nebraska Independent Banker Magazine Page 9
Jane Enevoldsen, VP/Operations
In 2002 Independent Community Bankersof America (ICBA) presented The PotterState Bank with ICBA’s NationalCommunity Service Award.
The Potter State Bank was selected as thegrand-national winner of ICBA NationalCommunity Bank Service Award amongseveral other community banks across thenation.
The bank received the award for their callto service in the 1990s by sponsoring aseminar that showcased the “Survival ofSmall Towns in Rural America,” and fromthat one meeting, the Potter CommunityDevelopment Group was born. The groupwas challenged with losing Potter’s residentsto bigger cities nearby that had moreservices to offer. Not only for the youngergeneration but the senior citizenspopulation was moving for the medicalfacilities.
A medical clinic was established inside anold fire station, the bank raised money andrecruited volunteers to staff it.
The medical clinic was the start and nowthe town of Potter also has a nine-hole golfcourse and 2,000 trees were planted toshade the city.
“Our main focus is to make sure that Potterstays a vibrant town. Unless you develop apride in your community, disrepair canhappen quicker than you think,”commented Kirk Enevoldsen in an interviewfollowing receiving the award at the ICBAConvention.
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Ahot button issue lately is Regulatory Lawsuits and
whether you have insurance coverage. In recent
months we have read the articles being written
regarding Regulatory Suits. From the Wall Street Journal to
local articles by CPAs and consultants, the topic is getting
more attention – deservedly. The need for broad language in
Directors & Officers Liability Policies should be a concern,
not just for a distressed bank, but also for the healthy
institution. And not just in regard to suits filed by the
regulators. If you haven’t felt the pain of a lawsuit, you may
think this is of no concern to you. However, in a struggling
economy and with the current banking climate, claims under
the Directors & Officers Policy (D&O) and the Financial
Institution Crime Bond are dramatically on the rise. Recently
I filed many different claims with insurance companies in
regard to lawsuits my bank clients received. You may not
have committed a wrongful act, but you will need to defend
yourself.
As an independent agent, all of the companies I represent
provide Regulatory Coverage under the D&O Policy. I want
my bank clients to have this coverage for claims brought by
regulatory or supervisory bodies. If we see more regulatory
actions as a result of Dodd-Frank,
having this coverage excluded will
become even more punitive. If a
bank has a Cease & Desist Order,
it does NOT mean your policy will
be canceled. I have a bank client
that has a C&D and he still has
Regulatory Coverage included in
the D&O Policy. As many of you
know, I was previously a bank
insurance underwriter and I
understand why the concern. In
their defense, the insurance
companies have been hit hard with
bank closings. We see FDIC
lawsuits on the rise. However, the
company underwriters are looking
at each insured bank on its own
merit. If a bank has a Memorandum of Understanding we can
obtain renewal terms without major premium increases or
large retentions. If a bank has a high percentage of
nonperforming loans, it is a concern
to the underwriter. We will then
provide more detail in regard to the
loans. If a particular bank has other
issues as well, including net losses
and the Tier 1 Leverage ratio is
eroding; we may be facing an
increase in deductibles and/or an
increase in premium.
Whether your bank is in a challenging position or you are
enjoying excellent results and profitability, there are other
coverage issues to consider. One of my bank clients had an
unfavorable experience with their previous insurance
company. The lawsuit was entirely handled by the insurance
company’s legal people and the directors felt they were left
in the dark as to how the claim was being handled. The
prudent thing to do is have a discussion about duty of the
Insurer to defend or duty of the Insured to defend in the
policy language. Most companies will provide an option and
the choice is yours. You do not want to be in a position where
a director ends up paying their own legal fees because your
claim was mishandled. It appears that the majority of bankers
would prefer to have their own legal counsel involved from
the first notice of a suit. Some may request the insurance
company legal staff handle the claim entirely or recommend
Page 10 Nebraska Independent Banker Magazine
I N S U R A N C E
Directors’ and Officers’ Liability Policies - Are you really covered?
Diana Poquette
If we seemore
regulatoryactions as a
result ofDodd-Frank,
having thiscoverageexcluded
willbecome
even morepunitive.
If a bank has a Cease & Desist Order, itdoes NOT mean your policy will becanceled.
continued on page 12
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Nebraska Independent Banker Magazine Page 11
EMPLOYMENT LAW
Same-Sex Couples’ RightsAND CHANGES TO FEDERAL LAW: STATE OF…CONFUSION?
On the heels of major United States Supreme Court
decisions this year, many federal agencies like the
Internal Revenue Service (“IRS”) and Department
of Labor (“DOL”) have been addressing the issue of same-
sex couples and their rights and privileges under federal law.
These changes will undoubtedly affect employers of all types,
and as an employer, you may need to act now!
THE STANDARDS AT PLAYTHE STANDARDS AT PLAY
In the arena of state and federal rights for same-sex couples,
there are a few standards which must be discussed and
understood. First is the “state of celebration” standard.
Under this standard, rights of opposite-sex married couples
flow to same-sex married couples so long as they were
“married” in a state which recognizes same-sex marriage. In
these circumstances, the same-sex couple is entitled to certain
rights even if they live in a state like Nebraska which does not
recognize same-sex marriage. This is the standard adopted
by the IRS.
Second is the “state of residence” standard. Under this
standard, a same-sex couple is entitled to the affected federal
rights so long as their state of residence recognizes same-sex
marriage. So, a same-sex couple legally married in
Massachusetts and living in Massachusetts would receive
rights that the same couple would not receive if they moved
to Nebraska after being married in Massachusetts. This is the
standard adopted by the DOL in at least one area of law.
Third, there are other arrangements such as “civil unions”
and “domestic partnerships.” While these are legally
recognized in some instances, such as health insurance
coverage provided by some employers and public
institutions, the major changes from the IRS and DOL
involve “marriage.”
IRS DETERMINATIONSIRS DETERMINATIONS
On August 30, 2013, the IRS issued “Revenue Ruling 2013-
17.” The ruling determined that same-sex couples are deemed
“married” for federal taxation
purposes so long as they were
married in a state that recognizes
same-sex marriage. In other words,
the IRS uses the “state of celebration”
standard for federal tax purposes.
This means a same-sex couple living
in Nebraska but married in
Massachusetts receives the same tax
treatment as a married couple
consisting of a man and a woman.
For example, retirement plans are now required to offer
same-sex couples several of the same spousal benefits that
have been available to all married couples as previously
defined under federal law. A same-sex spouse, for example,
is now the assumed beneficiary unless the other spouse (i.e.
your employee) elects a different beneficiary. If an employer
fails to comply with these new IRS rules, the employer’s
benefit plans may lose advantageous tax treatment.
Many insurance companies already offer the option to enroll
domestic partners and same-sex spouses. Be sure to check
with your benefit providers on other potential changes to your
plan offerings. In addition, if you currently treat health
insurance premiums for opposite-sex married couples
differently than same-sex married couples, you must make a
change. An employer may no longer treat the employer-paid
portion of insurance premiums differently for same-sex
couples.
FAMILY MEDICAL LEAVE ACT (FMLA)FAMILY MEDICAL LEAVE ACT (FMLA)
As a law designed to benefit family members, the FMLA is
also affected by these changes. According to the DOL, it will
use the “state of residence” standard in determining which
same-sex couples receive FMLA protection. Aside from
having to qualify for FMLA leave in the first place, a same-
sex couple must also live in a state which recognizes
same-sex marriage.
Jack Schultz
continued on page 12
65339_Settells_NICB Magazine_r1.qxp_Layout 1 10/25/13 11:47 AM Page 13
Page 12 Nebraska Independent Banker Magazine
Because Nebraska does not recognize same-sex marriage,
Nebraska employers are not legally required to provide
FMLA married status protection to employees in same-sex
marriages, even if the employee got married in a state that
recognizes same-sex marriage. However, employers
should continue to monitor changes in the federal law with
respect to the FMLA. The DOL could change its mind and
follow the IRS rule by using the “state of celebration”
standard instead.
CONCLUSIONCONCLUSION
Employers should not assume that these changes do not
affect them because they live in Nebraska where same-sex
marriage is not legally recognized. The IRS Ruling made
same-sex couples’ tax treatment changes effective on
September 16, 2013. That means you may have to change
some withholding and tax treatment for benefits provided
to same-sex couples even though Nebraska does not
recognize same-sex marriage. In addition to immediate
changes required by the IRS determinations discussed
above, employers should also contact their benefits
providers or third-party administrators and review their
policies and handbooks with respect to these issues.
Jack L. Shultz
Robert B. Truhe
HARDING & SHULTZ, P.C., L.L.O.
Lincoln, NE
402-434-3000
Editor’s Note: This article is not intended to provide legal advice
to our readers. Rather, this article is intended to alert our readers
to new and developing issues and to provide some common
sense answers to complex legal questions. Readers are urged to
consult their own legal counsel or the author of this article if the
reader wishes to obtain a specific legal opinion regarding how
these legal standards may apply to their particular circumstances.
The authors of this article, Jack L. Shultz and Robert B. Truhe,
can be contacted at 402/434-3000, or at Harding & Shultz, P.C.,
L.L.O., P.O. Box 82028, Lincoln, NE 68501-2028,
[email protected] or [email protected]. The authors
of this article, Jack L. Shultz and Robert B. Truhe, can be
contacted at 402/434-3000, or at Harding & Shultz, P.C., L.L.O.,
P.O. Box 82028, Lincoln, NE 68501-2028,
[email protected] or [email protected].
Same-Sex Couples’ Rights, continued
a law firm. This might be the case in regard to Employment
Practices Liability claims since the companies employ
specialists who handle these types of suits on a daily basis. If
you choose Insured’s Duty to Defend, you do not have to
wait until final adjudication to be reimbursed for your legal
expenses. It has been my experience, the companies move
quickly on a claims notice.
Another topic to discuss with your agent is Bankers
Professional Liability as part of your D&O Policy. Do you
have coverage for officers and employees providing services
to your customers? Would the policy respond to a suit naming
the bank itself along with individuals performing that
service? My question to you would then be – why would
you not want this? So many banks today are providing other
services such as insurance, brokerage, title services,
investment advisors, tax preparation, wire transfers, etc. And
not all insurance policies include Professional Liability.
I have written about this before and I can’t stress the
importance enough regarding this coverage – Broad Form
Entity for the bank itself. When Directors’ & Officers’
Policies were written back in the ’60s the purpose was to
defend the individual D’s and O’s. In today’s world the entire
board, holding company, and bank can be named in a lawsuit.
And I have seen multiple suits where just the bank is named
as the sole defendant. The allegations can consist of many
different types of wrongful acts. Just because the policy
declarations page names the holding company, doesn’t mean
it is actually covered. If you look closely at the policy
language it may just state the directors and officers of the
entity are covered. The Insuring Agreements should include
Directors and Officers Individual Coverage, Company
Indemnification Coverage, AND Company Liability
Coverage.
Diana Poquette
Financial Institution Specialist
UNICO Group, Inc.
402-499-1011
Directors’ and Officers’ Liability Policies, continued
65339_Settells_NICB Magazine_r1.qxp_Layout 1 10/25/13 11:47 AM Page 14
Nebraska Independent Community Bankers
Annual Management Conference & Trade Show
November 13-15, 2013
GAME ON
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Page 14 Nebraska Independent Banker Magazine
MAIL OR REGISTER ONLINEBEFORE NOVEMBER 1
NICBPO Box 83073Lincoln NE 68501-3073 E-mail: [email protected] www.nicbonline.com
check payable to:Nebr. Independent Community Bankers
First Registrant Name (for name badge) Title E-mail
Spouse Name (for name badge) Bank Title - if any E-mail or Postal Addressfor Spouse’s Program Information
Additional Registrant Name (for name badge) Title E-Mail
Additional Spouse Name (for name badge) E-mail or Postal Addressfor Spouse’s Program Information
Bank/Company
Address City/State/Zip
Nebraska Independent Community BankersAnnual Management Conference & Trade Show
November 13 - 15, 2013
IRS NOTICE: The IRS requires a notice on all registration forms, which informs theattendee of the amount of the registration fee representing food and beverage. Weestimate the food cost portion for a full registrant fee is $234.70. Consult your taxprofessional for any tax advice.SPECIAL NEEDS: persons with disabilities who plan to attend these meetings andwho may need auxiliary aids or services please contact NICB so arrangements canbe made. CANCELLATION POLICY: If received 7 business days before the conference fullrefund; Less than 7 days, partial refunds are considered.QUESTIONS? Contact NICB 402-474-4662 or [email protected]
FULL REGISTRANT FEESFee includes all conference functions, receptions on Wednesday/Thursday, and Friday Banquet
Rate For Meal Count # Attending Banquet
First Full Registrant ______@ $295 = $
Each Additional Registrant same Bank/Company ______@ $225 = $
Spouse/Guest of Registrant ______@ $225 = $
Non Member of NICB ______@ $400 = $
Member who has not attended in the last 5 years ______@ $230 = $
Total Full Registrant Fees = $
PARTIAL REGISTRATION FEESNICB Member
RateNon Member
Rate Totals
Wed. Nov. 13 Kick Off Reception at Pinnacle Bank Arena ____@ $ 40 ____@ $ 75
Thurs. Nov. 14 Opening & Educational Sessions, Lunch, Reception ____@ $ 150 ____@ $ 200Trade Show Events Only - Thurs, Nov. 14, incl. Lunch/Reception ____@ $ 125 ____@ $ 200Thurs. Nov. 14 Reception Only ____@ $ 15 ____@ $ 40
Fri. Nov. 15 General Sessions, Lunch ____@ $ 175 ____@ $ 275Spouse/Guest Program “Tournament of Shopping” Fri. Nov. 15 ____@ $ 20 ____@ $ 40
Fri. Nov. 15 Lunch only ____@ $ 30 ____@ $ 50
Chairman’s Banquet on Friday Nov. 15 ____@ $ 65 ____@ $ 75
Total Partial Registration Fees
Nebraska Independent Community BankersAnnual Management Conference & Trade Show
November 13-15, 2013
65339_Settells_NICB Magazine_r1.qxp_Layout 1 10/25/13 11:47 AM Page 16
Nebraska Independent Banker Magazine Page 15
EDUCATION
AUDITING & ACCOUNTING
8/27 Tax & Accounting Strategies for Health Care Reform
10/10 Recent Accounting Developments & a Look Ahead
11/26 Form 1099 Reporting: Third-Party Vendors, Foreclosures,Debt Forgiveness & More
12/17 12 Steps to Effective Expense Control: Practical Techniquesfor Cutting Costs & Increasing Profits
SECURITy & FRAUD9/24 Security Officer Reports to the Board: Fulfilling Your Annual
Requirement
LENDING6/10 GFE & HUD 1: Current Issues, Current Challenges
6/13 Call Report Preparation: RC-R Risk-Based Capital
6/19 Regulator Issues & Update for the Credit Analyst
6/20 Ability to Repay Part 1 - New Rules that Impact Your Policies& Products: deadline Jan 10, 2014
6/26 Pricing Consumer & Commercial Loans for Profitability
6/27 Bank Opportunities with Small Businesses: GrowingDeposits, Loans & Fee Income
7/2 Using the APRWin Calculator Effectively to Avoid & CorrectViolations
7/19 New Appraisal Requirements for Consumer Access & Higher-Priced Mortgages: deadline Jan 18, 2014
7/23 Determining Cash Flow from C Corporation Tax Returns &Financial Statements
7/25 Business Writing Boot Camp, Including Submission & Critiqueof Your Own Writing Sample
8/2 Ability to Repay Part 2 - What Your Lending Staff Needs toDo to Comply
8/13 Home Equity/Second Lien Risk Management
8/14 Interagency Appraisal & Evaluation Guidelines: incl newrequirements effect Jan 18, 2014
8/15 Call Report Preparation: RC-C & Related Lending Schedules
9/4 Protecting the SBA Guarantee Start to Finish
9/5 CFPB Examination Procedures for Mortgage Loan Originators
9/12 From Prospect to Customer: Skills & Tools for SuccessfulBusiness Development
9/25 Underwriting Basics: Interviewing, Credit Reports, DebtRatios & Regulation B
9/26 Advanced Commercial Loan Documentation
10/2 Handling Customer Credit Report Disputes
10/8 Debt Service Coverage Calculations in Underwriting
10/16 Critical Risk Factors in Loan Portfolio Management
10/17 New CFPB Mortgage Servicing Rules effect. Jan 10, 2014
10/22 Dealing with Adverse Action: What to Do & When to Do It
10/24 Perfection of Security Interest in Non-Real Estate Collateral& Proper Foreclosure Procedures After Default
10/31 HMDA Solutions: Achieving Data Integrity for Effective FairLending Analysis
11/13 Commercial Loan Annual Credit Review
11/15 25 Most Important Things to Know about the NewMortgage Loan Origination Rule Changes Before 1-10-14
11/19 What You Need to Know about Guarantors, Co-Signers,Personal Guarantees & Joint Applications
11/22 5 Definitions of a Qualified Mortgage under CFPBRules effec. Jan. 10, 2014 incl. Sept 2013 rule changes
11/25 New CFPB Mortgage Servicing Rules effect Jan 10, 2014
12/4 Introduction to Call Reports
12/6 SBA Lending Update: Revised SOP 50 10 5(F):effective Jan. 1, 2014
IRA8/21 Managing IRA Beneficiary Designations & Distributions12/11 Handling IRA Required Minimum Distributions & Roth
Distributions
INFORMATION TECHNOLOGy7/9 Internet Fraud Claims: Who is Liable?
8/8 Compliance in Websites, Mobile Banking & Social Media
8/29 FFIEC Guidance on IT Security Awareness: Employee,Customer & Community Programs
continued
Register for the LIVE Webinar or Archived Link. All Webinars listed are available as an ARCHIVED Link which includes a free
CD Rom, for up to 6 months from the Live date listed. For complete descriptions about the webinar go to our website
www.nicbonline.com click on Education & Training then Webinars. Upcoming and Previous webinars are listed. You can also call
NICB to receive brochure copy by email or postal mail.
Recently
added
webinars in B
old
65339_Settells_NICB Magazine_r1.qxp_Layout 1 10/25/13 11:47 AM Page 17
Page 16 Nebraska Independent Banker Magazine
10/29 Technology Strategies & Compliance Series: AdvancedFacebook Strategies for Community Banks
11/7 Mobile Payments for Community Banks: Impacts, Choices &What to Do Next
12/12 Documenting Your Required Information Security Program
HUMAN RESOURCES11/21 Fair Labor Standards Act: Dos & Don’ts of Exempt & Non
Exempt Pay Issues
COLLECTIONS 6/6 Real Estate Loan Workouts, Foreclosures, Short Sales &
Deficiency Judgments
6/11 Collecting Decedents’ Accounts
8/20 Modifications, Workouts & Rescue Options: Working withTroubled Customers
10/3 Advanced Bankruptcy Issues
12/5 Avoiding Liability in the Collection Process
COMPLIANCE6/4 Compliance Rules Lenders Must Know
7/30 Compliance Rules All Staff Must Know: Red Flags for IDTheft, Bribery & Privacy
8/7 BSA Compliance Hotspots: From Regulators, Litigation, Policies & Procedures
9/9 Trust Operations: Overview, Compliance & Examiner Issues
9/17 Compliance Rules Deposit Operations Must Know
11/20 Simplifying the Compliance Function: Tools, Checklists & Reporting to Keep You on Track
12/3 A Fresh Look at Robbery Preparedness
DIRECTORS
7/10 Duties of the Board Secretary: Fundamentals, Best Practices
& E-Package Delivery
7/16 Directors & Enterprise Risk Management
8/22 Recognizing Red Flags in Board Reports
9/10 Technology “Crash Course” for Directors
11/14 Documenting Your Strategic Plan Years 1, 3 & 5: MeetingExaminer Expectations
FRONTLINE & NEW ACCOUNTS
6/18 Accepting Powers-of-Attorney on Deposit Accounts
6/25 Detecting Counterfeit Items & Fraudulent ID for the Frontline
7/24 Your Depositor Has Died: Actions to Take, Mistakes to Avoid
11/5 Business Signature Cards & Resolutions: Entities, Authority &Documentation
12/10 Compliance Update on Nonresident Alien Accounts
SENIOR MANAGEMENT
6/5 Investment Due Diligence: The New Banking Requirements
7/26 Basel III Final Rule: Impact on Community Banks Effect. Jan. 1,2014
7/31 Assessing E-Banking Services & Delivery Channels: StrategicDeployment & Risk Assessment
8/6 Mergers & Acquisitions are Back: Don’t Miss Your NextOpportunity
9/19 The Future of Branch Banking: The New Definition ofConvenience
OPERATIONS6/21 Complying with the Final Rule for Garnishment Procedures
Involving Federal Benefit Payments: Effect 6/28/13
7/11 RDFIs & ACH Healthcare Payments: Is Your Bank Preparedfor the Sept 20 Deadline?
7/18 IAT Suspect Transactions: What’s an RDFI to Do?
8/12 Reg E: Complying with the Final 1073 InternationalRemittance Rule: deadline Oct 28, 2013
9/18 Garnishment Rules: Including Accounts Receiving FederalBenefit Payments
11/6 FDIC Records & Related Email Retention Rules
12/19 Regulation E Versus ACH Rules: Which One Prevails?
Most webinars are scheduled from 2:00-3:30 PM
Central Time unless otherwise indicated.
TO REGISTER Call NICB 402.474.4662 or Online
at www.nicbonline.com/registration-form.htm no
credit card needed, NICB will bill institution.
65339_Settells_NICB Magazine_r1.qxp_Layout 1 10/25/13 11:47 AM Page 18
Accounting
BKD, LLP ............................402-473-7600
Hocking & Reid, LLC...........402-441-0140
John Cederberg, CPA .........402-475-8155
Labenz & Associates...........402-437-8383
McDermott & Miller, PC
Grand Island ................308-382-7850
Hastings .......................402-462-4154
Kearney........................308-234-5565
Omaha .........................402-391-1207
MIB Banc Services, LLC .....888-818-7206
Appraisers
Ritchie Bros Auctioneers .....402-709-6903
Taylor and Martin.................402-941-1072
Architects
Kirk Gross Co. .....................319-234-6641
Attorneys
Baird Holm LLP...................402-334-0500
Perry Guthery Haase Gessford PC LLO
.....................................402-476-9200
Woods & Aitken LLP ...........402-437-8500
Card Services
ICBA Bancard/TCM ...........800-242-4770
NETS, Inc............................800-735-6833
PowerPay, Inc. ....................402-850-0989
SHAZAM .............................515-288-2828
Checks
Harland Clarke...................800-382-0818
Collections
Credit Management
Services, Inc........................308-382-3000
Consulting
ITPAC Consulting LLC ........402-420-1556
John Cederberg, CPA .........402-475-8155
Ritchie Bros. Auctioneers ........402-709-6903
WRK Systems, Inc. .............402-592-8999
Core Processing
CSI .....................................800-545-4274
IBT ......................................512-616-1115
Modern Banking Systems.......402-592-5500
Correspondent Banks
Bankers’ Bank of the West ......888-467-5544
Federal Reserve Bank ........800-257-6701
FHLBank Topeka.................402-399-2002
First National Bank, Omaha.....800-642-9907
Midwest Independent Bank .402-476-1131
UMB Bank, NA ....................800-821-2171
United Bankers’ Bank..........402-932-3329
US Bank, NA.......................402-434-1285
Crop/Mult-Peril
UNICO Group.....................800-755-0048
Document Imaging
Modern Banking Systems.......402-592-5500
Education
ICBA Online .......................800-422-7285
Electronic Banking
NETS, Inc............................800-735-6833
PowerPay Inc. .....................402-850-0989
SHAZAM .............................515-288-2828
Electronic Liens-Software
Decision Dynamics..............803-808-0117
Employee Benefits/Plans
Bank Financial Services Group
.....................................800-931-7782
Equias Alliance LLC ............913-433-8645
First National Life of the USA
Lincoln..........................402-483-1776
Equipment/Office Supplies
Eakes Office Plus................888-329-1344
Money Handling Machines......402-571-5577
SPC.....................................402-397-8890
Equipment Auctioneers
Ritchie Bros. Auctioneers ........402-709-6903
Fee Income
ICBA Services Network ............800-422-8439
Financial Products/Services
Bank Financial Services Group
.....................................800-931-7782
Federated Investors ............800-245-5000
Furniture
Eakes Office Plus................888-329-1344
Identity Theft
Spectrum Financial Services
.....................................402-993-4699
Information Security/Technology
Infogressive.........................402-261-0123
ITPAC Consulting LLC ........402-420-1556
SPC.....................................402-397-8890
WRK Systems, Inc ..............402-592-8999
Insurance
First National Life of the USA
.....................................402-483-1776
Kansas Bankers Surety.......785-228-0000
Spectrum Financial Services ...402-933-4699
Travelers Companies, Inc. ....651-310-5112
UNICO.................................800-755-0048
Investments/Brokerage
Ameritas Investment ............800-355-1314
D A Davidson
Lincoln..........................402-420-8201
Omaha .........................800-268-6451
Federated Investors ............412-288-6501
FHLBank Topeka.................402-399-2002
First National Capital Markets
.....................................800-989-2999
RBC Wealth Management ......402-465-3833
ICBA Securities .................800-422-6442
UMB Bank, NA ....................800-821-2171
United Bankers’ Bank..........402-933-1644
Wells Fargo Securities
.....................................800-228-9225
Loan Origination/Mortgage Lending
ICBA Mortgage ....................877-516-8665
National Affiliate
ICBA ...................................800-422-8439
Recovery ServiceDouble Eagle Collateral ......402-571-9726
Credit Management Srv ......308-382-3000
Website Development/Hosting
ProfitStars ..........................615-250-2111
Nebraska Independent Banker Magazine Page 17
MEMBER RESOURCE GUIDE
65339_Settells_NICB Magazine_r1.qxp_Layout 1 10/25/13 11:47 AM Page 19
Nebraska Independent Community BankersPO Box 83073Lincoln NE 68501-3073
CHANGE SERVICE REQUESTED
PRESORT STANDARDU.S. POSTAGE
PAIDLINCOLN, NE
PERMIT NO 1147
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