SD BANKING COMMISSION DECEMBER 4, 2015
Transcript of SD BANKING COMMISSION DECEMBER 4, 2015
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Secretary of Labor & Regulation
Marcia Hultman
Director of BankingBret Afdahl, CFIRS
Division AttorneyBrock Jensen
CFIRS, COE
Support Staff
Jean BlowLicense Specialist
Delaine CampbellSenior Secretary
Deputy DirectorJohn Crompton
CEIC
Financial Institution Examiners
Michael DummerCEIC
Donald BergerCEIC, CFIRS
Todd YoungbluthCEIC
Drew HaackCEIC
Delton WitteCEIC
Florence SimmonsCEIC
Jordan LaBrieCEIC
Jacob WagnerCCE
Michael ZellmerCCE Brady Schlechter
David Henry Max Eckrich
Blake Gunderson Morgan Kronaizl
Deputy DirectorScott Kelly
CEIC, CFIRS, CTETrust Examiners
Matthew SchlechterCFIRS, STE
Jason NomsenCFIRS, CTE
Jim BenhamCFIRS, CTE Brad Pesicka
Jonathon Sanborn Matthew Spolum
Chase Koskovich
Banking CommissionJeff Erickson
John LillibridgeRichard WestraPaul ChristenSteve Hayes
Commission Attorney
Curt Jensen
General Information
• State Chartered Banks: 54
• Total Assets: $24,077,235• Largest Bank: Great Western Bank, Sioux Falls
($9,790,723,000)
• Smallest Bank: Farmers State Bank, Hosmer ($19,850,000)
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SD Banking Profile
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$0
$5
$10
$15
$20
$25
Billi
ons
Total Assets vs. Total Deposits
Total Assets
Total Deposits
150
200
250
300
350
400
450
30
40
50
60
70
80
90# of Locations# of Charters SD Bank Charters vs. Bank Locations
# of Charters# of Locations
2015 BANK TRANSACTIONS
• American State Bank, Oldham change of control• Home Federal Bank conversion to a state-chartered bank • First Bank & Trust Milbank and First Bank & Trust, NA,
Pipestone, MN merged with First Bank & Trust Brookings• Fulton State Bank merged with Farmers State Bank,
Parkston• Dakota State Bank, Blunt to merge with First Dakota
National Bank, Yankton
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Number of Banks per Category
13
1415
1
6
4 1Number of Banks
Under $50M$50M-$99M$100M-$299M$300M-$499M$500M-999M$1B-4.99BOver $5B
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Asset Composition
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*Includes all State-chartered banks – 54 charters
$409,431
$3,737,168
$753,524
$17,247,985
$332,281
$34,503 $787,115 $716,584
Total Asset Composition ($000)
Cash
Total Securities
Other Investments
Net Loans and Leases
Premises and Fixed Assets
OREO
Intangible Assets
All Other Assets
Composite Ratings - Banks
8
0
10
20
30
40
50
60
70
1
2
3
4
5
*There are 3 less banks because the First Bank of White merged with FB&T Brookings; Dakota Heritage Bank Chancellor merged with Security State Bank Tyndall; and Mansfield State Bank was acquired by American Bank & Trust Wessington Springs
** There are 1 less bank because Farmers State Bank Faith was acquired by First National Bank in Philip
***There is one less bank because of MinnWest merger, AB&T merger, and addition of Security Savings Bank
****There are 2 less banks because of First Bank & Trust Milbank (and First Bank & Trust, NA, Pipestone, MN) merged with First Bank & Trust Brookings; Fulton State Bank merged with Farmers State Bank, Parkston; Dakota State Bank, Blunt, merged with First Dakota National Bank, Yankton; and Home Federal Bank converted to a state charter.
Capital
9*Includes all State-chartered banks – 54 charters
11.26%
15.79%
16.78%
10.50%
14.43%15.13%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
Tier 1 Leverage Capital Tier 1 Capital Total Capital
Average
Median
Asset Quality
10*Includes all State-chartered banks – 54 charters
0.12%
1.04%
0.00%
0.69%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
OREO to Assets Past Due & NA Loans to Gross Loans
Average
Median
Earnings
11*Includes all State-chartered banks – 54 charters
1.26%
4.23%
1.23%
3.96%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
ROAA NIM
Average
Median
Loan Volume and Funding
12*Includes all State-chartered banks – 54 charters
64.78%
77.37%
68.88%
79.85%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
Net LN & LS to Assets Core Deposits to Assets
Average
Median
Bank Examination Hours
13
6,000
8,000
10,000
12,000
14,000
16,000
18,000
0
5
10
15
20
25
30
2008 2009 2010 2011 2012 2013 2014 2015**
Exam Hours # Exams
**2015 includes projections for remaining examinations.
Bank Examination Staff
14
0
2
4
6
8
10
12
14
16
Banking Staff Tenure
10+ years
7-10 years
5-7 years
3-5 years
<3 years
Writing
Trust Company Profile
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0
10
20
30
40
50
60
70
80
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
Trust CompaniesBillions
Trust Assets # of Trust Companies
Trust Department Profile
16
5
6
7
8
9
10
11
$0
$1
$2
$3
$4
$5
$6
$7
02 03 04 05 06 07 08 09 10 11 12 13 14
Trust DepartmentsBillions
Trust Assets # of Trust Departments
Public vs. Private Trust Companies
17
34 38 41 47 51
2226
2829
32
0
10
20
30
40
50
60
70
80
90
2011 2012 2013 2014 11/16/2015
Tota
l Tru
st C
ompa
nies
Private Companies Public Companies
Public vs. Private Trust Assets
18
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
2011 2012 2013 2014
Tota
l Ass
ets(
000)
Private Companies Public Companies
Managed vs. Non-Managed Assets
19
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
2011 2012 2013 2014
Tota
l Ass
ets
Custodial Assets Directed Assets Discretionary Assets
Trust Company Situs
20
4
28
3
20
25
30
5
10
15
20
25
30
Active Presence Contracted Presence Limited Presence
# of
Tru
st C
ompa
nies
Private Companies Public Companies
Trust Company Composite Ratings
21
5
25
5
160
25
0
7
0
10
20
30
40
50
60
Strong Satisfactory Unsatisfactory Not Rated
Num
ber o
f Tru
st C
ompa
nies
Private Companies Public Companies
Trust Company Examination Stats
22
10 10
1511
10
4
6
10
0
1
2
3
4
5
6
7
8
9
0
5
10
15
20
25
2012 2013 2014 11/16/2015
# of
Exa
min
atio
ns
Private Exams Public Exams Full-Time Trust Examiners Out-of-State Exams
Trust Examination Staff
23
0
1
2
3
4
5
6
7
8
9
12/31/2012 12/31/2013 12/31/2014 11/16/2015
# of
Exa
min
ers
10+ years3-10 years1-3 years<1 yearWriting Exams
SD Licensee Profile
24
0
200
400
600
800
1,000
1,200
1,400
1,600
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Total # Regulated Licensees - 2,612
Money Lenders Mortgage Lenders Mortgage Brokers
Mortgage Loan Originators Money Transmitters
Licensee Examination Efforts
• Mortgage• Work with MMC on multi-state companies• Examine SD specific and report to MMC
• Money Lender• CFPB payday rules expected in 2016• Continue exams on regular intervals
• Money Transmitter• Review exams from home states• Conduct BSA reviews of authorized delegates in SD
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Division Locations
South Dakota Division of Banking
1601 N. Harrison Avenue, Suite 1Pierre, SD 57501Ph: 605-773-3421; Fax: 1-866-326-7504
1500 W. 51st Street, Suite 102Sioux Falls, SD 57105
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