Update. NBA at Husker Harvest Days INSIDE THIS ISSUE. Banks & Bankers September September 19, 2018 Volume 40 Issue 35.

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1 September 19, 2018 Volume 40 Issue 35 INSIDE THIS ISSUE I N S E R T S Education Calendar 2018 Fall Group Meetings September 25, Scottsbluff September 26, North Platte September 27, Kearney October 2, Lincoln October 3, Omaha October 4, Norfolk Women in Banking Conference October 10-11, Omaha Certified Banking Cybersecurity Manager Certification October 15-16, Lincoln 2018 Summit on Regulatory Issues October 26, Lincoln Compliance Update: GLBA Annual Privacy Notice Compliance Update: FinCEN Permanent Exceptive Relief for Renewals/Rollovers Update NBA at Husker Harvest Days Volunteer bankers and NBA staff were busy last week at the 41 st year of Husker Harvest Days in Grand Island, promoting the role of Nebraska banks in agriculture. Thousands of Nebraskans stopped at the NBA s booth for free bags of Nebraska-grown popcorn from Popcorn County USA of North Loup, ( Six lucky Husker Harvest Days attendees won $50 beef certificates, courtesy of the NBA. This year s admission and lunch ticket sales were impressive, with NBA members purchasing nearly 11,000 admission tickets and 4,190 luncheon tickets. Furthermore, the 2018 show marked a dramatic overhaul in the facility grounds infrastructure. A $7.5 million-dollar renovation including concrete roads, fencing, lighting, and internet distribution made a huge improvement in the attendee experience. NBA Chairman Dave Dannehl of First State Bank of Loomis, NBA Chairman-Elect Alan Emshoff of Generations Bank of Exeter, and NBA President & CEO Richard Baier completed broadcast interviews with several radio networks on Tuesday during the show. Radio ads promoting the role of Nebraska banks in agriculture have been airing on a variety of radio stations, including the Brownfield Network, KZEN in Columbus, KRVN in Lexington, KTIC in West Point, KNEB in Scottsbluff/Gering, KTMX/KAWL in York, KSDZ in Gordon, KDJL in O Neill, and WNAX in Yankton, S.D. NBA BankPAC Honor Roll 2018 Husker Football Schedule Order Form Banks & Bankers September Extraordinary Service for Extraordinary Members

2 News Briefs From Washington NACHA Greenlights Same-Day ACH Enhancements The Electronic Payments Association (NACHA) has approved three new rules that will expand the capabilities of same-day Automated Clearing House (ACH) for banks and bank customers, including expanded hours and a higher per-transaction dollar limit. The first rule -- which takes effect Sept. 18, will expand same-day ACH by two hours every business day through the creation of a new same-day ACH processing window by the two ACH network operators. The second rule will increase the same-day ACH per-transaction limit to $100,000 and takes effect March 20, Finally, the third rule NACHA approved will enable same-day ACH funds to be available faster; funds from same-day ACH credits processed in the existing first window will be made available by 1:30 p.m. local time. Funds from certain other ACH credits will be available by 9 a.m. local time by the receiving bank. This rule takes effect Sept. 20, Read more. Fed Approves ABA-Supported Changes to Reg CC As part of its ongoing effort to update Regulation CC to reflect a payments system that is largely electronic, the Federal Reserve (Fed) last approved changes to Reg CC s liability provisions to address situations involving a dispute about whether portions of an electronic check have been altered or whether the item is a forgery. The changes -- which ABA supported -- take effect Jan. 1, The Fed acknowledged that in today s check collection environment, original checks may not be available for inspection when disputes between banks arise. In cases where the original paper check is not available, the amendments stipulate that for purposes of determining the burden of proof, it will be assumed that the item has been altered rather than forged. The presumption applies only in disputes between banks when one bank has transferred an electronic or substitute check to the other bank. In a joint comment letter with five financial trade groups, ABA noted previously that the groups believe that alteration of a legitimate check is the more common type of check fraud today in which disputes arise between banks, and therefore a presumption of alteration in those disputes where the evidence is lacking is appropriate. Read the final rule. Read ABA's comment letter. OCC Updates Comptroller s Handbook The OCC last week released revisions to the Deposit-Related Credit booklet of its Comptroller s Handbook. The booklet provides general guidance on the risks associated with deposit-related credit products, such as check credit, overdraft protection, and deposit advance products. It incorporates updates related to small-dollar lending, the Military Lending Act, third-party risk management and UDAP. View the booklet. CFPB Publishes Consumer Tips for Safer Use of Mobile Payment Services The CFPB last Thursday published a blog post advising consumers on how to avoid risky mistakes when using person-to-person or mobile payment apps. Even as use of these services becomes more common, the potential for error and fraud calls for continued vigilance, the CFPB said. The bureau recommended caution when transacting with strangers, using payment requests and authentication features and understanding the payment timeframe, among other tips. Read the tips. News Source: American Bankers Association 2 NBA Update Extraordinary Service for Extraordinary Members

3 Compliance Alliance Q&A Q: If it is in our loan policy not to use the credit score to base our credit decision on, but we do pull the real estate credit report for the disclosures, we don t need to report the credit score on the HMDA LAR since we do not rely on the score to make a decision, correct? A: Yes, that's correct - if the credit score wasn't relied on in making the credit decision, you're not required to report it for HMDA purposes, even if the credit report was pulled. TRANSACTIONS FOR WHICH NO CREDIT SCORE WAS RELIED ON. If a financial institution makes a credit decision without relying on a credit score for the applicant or borrower, the financial institution complies with (a)(15) by reporting that the requirement is not applicable. Comment 5 to (a)(15): Interp/ _ # a-15-Interp-5 Not a Compliance Alliance Member? Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call or info@compliancealliance.com. Which Banker Are You? Isn t it time you help share the load? NBA BankPAC is the unified political voice of Nebraska bankers, combining small and large contributions from banks and bankers and allocating those contributions to candidates who support a pro-banking and pro-business environment in our state. BankPAC ensures that your individual contribution works harder and goes further by pooling it with the contributions of other Nebraska bankers. Through this collective effort, BankPAC enhances our ability to communicate with legislators about banking industry needs. After all, politics, like banking, is a personal relationship business. The lines of communication between bankers and legislators must be open if we are to have a chance at success. BankPAC helps unlock that door. Over the past few years, Nebraska banking has battled more regulation, legislation, and competition than any other industry. Every year, the State Legislature and Congress spend months considering legislation that affects bankers bottom lines. It is through the financial support provided by BankPAC that more banker-friendly candidates are being elected. We contribute to candidates who believe in our right to compete on an equal basis. Our strength is in our numbers and that is why we need a strong PAC. To date, the NBA BankPAC has collected $97,744. The BankPAC fiscal year ends on December 31, please consider sharing the load to reach the BankPAC s goal of $155,000. View BankPac Honor Roll. Find out how you can contribute to the NBA BankPAC by visiting our website at or by contacting Jennifer Heaton at or jennifer.heaton@nebankers.org. Extraordinary Service for Extraordinary Members NBA Update 3

4 NBA Summit on Regulatory Issues October 26 Lincoln The Cornhusker Marriott The unique requirements of serving the agricultural industry combined with growth in financial regulations have created heavy compliance burdens for banks in Nebraska, particularly those in rural areas. Learn about regulatory expectations in light of the prolonged downturn in agriculture at the NBA s annual Regulatory Issues Summit, October 26, at The Cornhusker Marriott in Lincoln. This event provides bankers the opportunity for direct conversations with industry regulators in an open environment. Breakout sessions with each regulator will occur concurrently following the panel discussion moderated by James Ballentine, executive vice president of congressional relations and political affairs at the American Bankers Association in Washington, D.C. Here s a list of the regulators who will be in attendance: James LaPierre, Regional Director Federal Deposit Insurance Corp., Kansas City Kevin Moore, Senior Vice President, Supervision and Risk Management Division Federal Reserve Bank of Kansas City, Omaha, NE Kay Kowitt, Deputy Comptroller Western District Office of the Comptroller of the Currency, Denver, CO Kelly Lammers, Deputy Director, Financial Institutions Nebraska Department of Banking and Finance, Lincoln, NE Edwin Chow, Regional Director, West Region (Invited) Consumer Financial Protection Bureau, San Francisco, CA Register today or contact the NBA with questions at or nbaeducation@nebankers.org. NBA Employee Spotlight: Linda Hines, NBISCO Account Services Manager Linda has been on the NBA NBISCO team for more than 15 years. She currently oversees billing for NBISCO Agency Services and administrates the agency management system. Linda has a great work ethic and attention to detail which is much appreciated in her department. Hometown: Lincoln, Nebraska Alma Mater: Lincoln High School Favorite Part of My Job: As corny as this may sound, I really enjoy reconciling statements and working with numbers! Favorite Thing About Nebraska: I like that in Nebraska we get to enjoy all four seasons. My favorite season is fall because I love the cooler weather, the trees full of color, the Applejack Festival in Nebraska City and of course, Nebraska football games! Hobbies: I like to be crafty and creative at times and enjoy spending time with my family and friends. I recently held my 8-month old grandson as he enjoyed his first ride on a boat at the lake and I also got to see my 3 1/2-year old granddaughter go tubing for the first time. She LOVED it! There s nothing better than seeing my grandchildren have a good time! 4 NBA Update Extraordinary Service for Extraordinary Members

5 Keep up with our latest education offerings by visiting our event calendar at EDUCATION CALENDAR Questions? Call the Education team at Fall IRA Workshops /17-18/2018 Lincoln Embassy Suites Hotel 9/19-20/2018 North Platte Holiday Inn Express Fall Group Meetings 9/25/2018 Scottsbluff Hampton Inn & Suites 9/26/2018 North Platte Holiday Inn Express 9/27/2018 Kearney Holiday Inn 10/2/2018 Lincoln Embassy Suites Hotel 10/3/2018 Omaha Hilton Omaha 10/4/2018 Norfolk Norfolk Country Club Women in Banking Conference 10/10-11/2018 Omaha Embassy Suites Downtown Banking Cybersecurity Manager Certification 10/15-16/2018 Lincoln NBA Office Summit on Regulatory Issues 10/26/2018 Lincoln Cornhusker Marriott Hotel Bank Investment, Funding & Economic Outlook Conference 11/1-2/2018 Lincoln Cornhusker Marriott Hotel Loan Documentation Workshops 11/13-15/2018 Kearney Holiday Inn Agriculture & Beyond Workshops 12/4/2018 Norfolk Northeast Community College 12/5/2018 North Platte Quality Inn & Suites 2019 State Government Relations Forum 1/31/2019 Lincoln Cornhusker Marriott Hotel Operations Conference 2/5-6/2019 Lincoln Cornhusker Marriott Hotel Mid-Winter IRA Workshops 2/11-12/2019 Lincoln Cornhusker Marriott Hotel 2/13-14/2019 North Platte Holiday Inn Express Health Savings Account Seminar 2/15/2019 Lincoln NBA Office Bank Executive Conference 2/20-23/2019 Cabo San Lucas Pueblo Bonito Golf & Spa Resort Supervisor Boot Camp 3/6-7/2019 Lincoln NBA Office Spring Agri-business Conference 4/4-5/2019 Kearney Holiday Inn NBA Annual Convention 5/1-3/2019 Omaha Embassy Suites, La Vista NBA Annual Golf Outing 6/6/2019 Hastings Lochland Country Club NBA YBON Conference 8/1-8/2/2019 Omaha Embassy Suites Downtown Fall Agri-business Conference 9/5-6/2019 Lincoln Cornhusker Marriott Hotel Fall IRA Workshops 9/16-17/2019 Lincoln Cornhusker Marriott Hotel 9/18-19/2019 North Platte Holiday Inn Express Bank Investment, Funding & Economic Outlook Conference 11/6-7/2019 Lincoln Cornhusker Marriott Hotel Upcoming Webinars For a complete schedule of NBA webinar offerings, visit Education. All webinars are scheduled from 1:30 3:30 p.m. CST unless otherwise noted. Nebraska Bankers Association 233 S. 13 th St., Ste. 700 Lincoln, NE Phone: Fax: /14/2018

6 2018 FALL GROUP AREA BANKER MEETINGS OVERVIEW LEGISLATIVE UPDATE SEPT & OCT 2-4 HEAR FROM THE STATE SENATORS Register online at

7 2018 Fall Group Meetings Afternoon Sessions Tuesday, September 25 Wednesday, September 26 Thursday, September 27 Thursday, October 4 Scottsbluff, Hampton Inn & Suites North Platte, Holiday Inn Express Kearney, Holiday Inn Norfolk, Country Club Program Outline Early Bird Session :00 2:45 p.m. Annual VEBA Update No charge for members, but you must register! 3:00 p.m. Group Meetings Welcome, Overview, and Legislative Update Join the NBA us for a fast-paced look at the issues impacting the financial services industry in Nebraska. Dave Dannehl Alan Emshoff Richard Baier Bob Hallstrom Jerry Stilmock Chairman Chairman-elect President/CEO General Counsel Assoc. Gen. Counsel 3:30 p.m. The Vital Impact HR Has on Your Organization Chad Thies, President, Zelle Human Resource Solutions, Lincoln 4:00 p.m. Break 4:15 p.m. Hear from the State Senators! Please plan to attend one of the locations of this year s meetings to take advantage of an opportunity to discuss topics of interest or concern with your state senator. Your involvement with elected representatives can and will make a difference. 5:00 p.m. Adjournment / Reception with Your State Senator 2018 Fall Group Meetings Luncheon Sessions Tuesday, October 2 Wednesday, October 3 Lincoln, Cornhusker Marriott Hotel Omaha, Hilton Omaha Program Outline Early Bird Session :00 11:45 a.m. Annual VEBA Update No charge for members, but you must register! 12:00 p.m. Lunch with the State Senators 12:45 p.m. Group Meetings Welcome, Overview, and Legislative Update 1:15 p.m. The Vital Impact HR Has on Your Organization 1:45 p.m. Adjournment

8 Registration Fees... All bank officers, directors, and staff are welcome to attend to learn more about this year s issues at hand! The advanced registration fee per person is: Member: $35 first registrant* $30 each additional registrant* Non-Member: $105 first registrant* $105 each additional registrant* Registration fee covers the cost of meeting materials, break service, and reception or lunch, depending on location. The deadline for registration and receiving refunds of cancelled registration fees is September 18. Registrations received after that date will be an additional $10 per person and subject to space availability. Location Information... Tuesday, Sept. 25 Scottsbluff, Hampton Inn 301 West Highway 26 (308) Wednesday, Sept North Platte, Holiday Inn Express 300 Holiday Frontage Rd (308) Thursday, Sept. 27 Kearney, Holiday Inn 110 S 2nd Ave (308) Tuesday, Oct. 2 Lincoln, Cornhusker Marriott Hotel 333 S 13 th St. (402) LUNCHEON Wednesday, Oct. 3 Omaha, Hilton Omaha 1001 Cass St (402) LUNCHEON Thursday, Oct. 4 - Norfolk, Country Club 1700 North Riverside Boulevard (402) Fall Group Meetings Sept. 25, 26, 27, Oct. 2, 3, 4, /16/18 Financial Institution: Bank / Branch Address: City/Town: Zip: Phone# ( ) ONLINE YOU MUST LOGIN TO RECEIVE MEMBER DISCOUNTED PRICING! Please register the following individual(s): NAME (as you wish it to appear on the badge) Last 4 Digits of SSN Which location do you plan to attend? VEBA SESSION (No Charge) MEETING REGISTRATION $35...first reg $30...each additional reg REGISTRATION FEES: NBA Members: (First reg) $35 (per person); (Each additional) $30 (per person) Non-NBA Members: (First reg) $105 (per person); (Each additional) $105 (per person) Registrations received after September 18 will be an additional $10. Four Ways to Register: FAX: (402) WEBSITE: MAIL: NBA Education Center, PO Box 80008, Lincoln, NE Education PHONE: (402) Event Calendar TOTAL DUE $ Payment Choice (check one): MasterCard VISA Cardholder Name: Card Number: CVV: Exp. Date: Signature:

9 We would like to express our thanks to NBISCO for cosponsoring the 2018 Fall Group Meetings. If you have any questions about the 2018 Fall Group Meetings, please contact the NBA Education Center at (402) Please feel free to dress casually. To ensure your comfort, please bring a light jacket or sweater to the program. Notice: If you have a disability that may affect your participation in this event, please forward a statement regarding any special needs to the Nebraska Bankers Association. We will contact you to discuss accommodations. 233 South 13th Street, Suite 700 Lincoln, Nebraska Phone: (402) Education Center Fax: (402) /16/18

10 2018 WOMEN WOMEN IN BANKING CONFERENCE ANNUAL CONFERENCE OMAHA OCT LEAD CHANGE GROW Embassy Suites Downtown, Omaha Register online at

11 Join your peers at NBA s fourth annual Women in Banking Conference and learn skills to improve your effectiveness inside and outside of the office. Also, hear about the latest trends in technology that are changing the industry and the skills required to lead banking organizations into the future. Women at every level from emerging leaders to executives will benefit from this conference and gain the knowledge to affect change, grow professionally and become more effective leaders. Wednesday, October 10, :30 a.m. Registration / Continental Breakfast 9:00 a.m. Welcome and Opening Remarks 9:15 a.m. How to Work With and Lead People Not Like You Kelly McDonald, Author of three bestselling books, and President, McDonald Marketing 10:30 a.m. Break We all know that a diverse workforce leads to better decisions and solutions it has been proven to grow business and profits. But when the person in the next cube or office is different from you, friction can arise. Different people may not see eye to eye on an issue. They may have vastly different approaches to work. Their communication styles maybe very different. Their comfort in working with technology may be miles apart. They may see work as a formal environment or one that is casual. They may even have different reasons and motivations for working in the first place. Cultural backgrounds and norms can differ. Even men and women can see situations differently. How do you work alongside someone who may be quite different from you, respect those differences and be effective in your role? 10:45 a.m. Sock It To Me, Socrates: A Guide to Living a Balanced Life Janie Walters, Champion Communications Brilliant minds throughout history have pondered the best way to live a life. William James said, The great use of life is to spend it for something that will outlast it. A Peace Corps commercial proclaimed, If you re not doing something with your life, it doesn t matter how long it is. Says Paul Boese, We come into this world head first and go out feet first; in between, it s all a matter of balance! 12:00 p.m. Luncheon & Dining Etiquette, with Paula Pace, The Executive Development Group, Lincoln 1:00 p.m. Leadership: A Woman s Perspective a panel discussion 2:15 p.m. Break Female leaders have many of the same qualities as their male colleagues, especially an ability to set high goals and inspire others to fulfill them. But women are different in some ways that make them valuable additions to decision making teams. Join us to learn from our panel of bankers from varying communities and sizes of banks, share their story of leadership from a woman s perspective. 2:30 p.m. Powerful Presence: Helping Others to Show and Tell Their Power Colonel Jill Morgenthaler, U.S. Army (Ret.) First Colonel Jill will enthrall you with her showdown with Saddam Hussein. Then she will entertain you while sharing with you how to present your powerful presence. Some women roar ahead in their careers while others stagnate. Some advance their careers, and some unknowingly sabotage their careers. One way to success is when women help women. Colonel Jill shows women ways to help each other move forward, while eliminating unconscious mistakes that could be holding them back. 4:00 p.m. Networking Reception with Comedy Magician, Lee Cole Join your fellow bankers for some conversation time over the day s sessions and speakers, while enjoying a beverage, light hors d oeuvres, and entertainment by our strolling comedy magician! Dinner in the Old Market on Your Own 6:00 p.m. Adjourn Dinner on Your Own!

12 Thursday, October 11, :30 a.m. Continental Breakfast 9:00 a.m. Working Women: Lessons from the Links Sarah Sasse Kildow, Director of Communications & Marketing, Nebraska Bankers Association Sarah is a two time Nebraska state high school golf champion from Lincoln High School. She won the Nebraska Girls Golf Match Play title three times and the state women's Stroke Play championship five times. At UNL, she was the 2003 Big XII champion, Big XII player of the year, and is the only Husker golfer in history to receive firstteam All American honors. Sarah competed on the professional tour and instructed for three years before hanging up her clubs. In 2016, she was one of 22 members of the University of Nebraska Athletics Hall of Fame inaugural class. Sarah will share stories from the links and lessons that often apply to working women. 9:30 a.m. Step Up, Speak Up, Show Up Confident Communication Strategies for Women in Business Debbie Peterson, Getting to Clarity 10:30 a.m. Break Every aspect of your professional life involves communication with others. Confident Communication is vital for you to succeed but are you aware of what may be sabotaging it? Confident communication is so much more than the words you speak. Take charge of your personal thoughts and communications and experience the professional results that you deserve! 10:45 a.m. Unleash Your Inner Superstar! Lynn O Dowd, Chicago, IL 12:00 p.m. Adjournment This session will leave you super charged and ready to step out of your comfort zone, and risk new levels of passion, performance and courage! A transformational program that combines heart opening music, entertaining storytelling, an awe inspiring message and an unforgettable final to support you in breaking free from being super stuck to becoming super successful in business and life! Armed with her GoGaga Formula, the transformational process she developed to help her overcome fear and achieve extraordinary success, Lynn redefied middle age and leaped from being a successful corporate time management consultant to being a rock n roll singer, and inspirational speaker! Registration Information Member Fee: Non Member Fee: First reg $285 per person* $855 per person* Each additional $270 per person* *If received by October 3, 2018 This fee includes all conference materials, continental breakfasts, luncheon, break service, and Wednesday evening event. The deadline for registrations and refunds for cancelled registrations is October 3, Any registrations received after that date will be an additional $20 per person and subject to space availability. Location Information Reservations can be made by calling the hotel directly by September 17. Please mention that you re with the NBA room block. The NBA rate is $149 plus taxes. Embassy Suites Downtown 555 S 10 th St., Omaha / (402) Please feel free to dress casually. To ensure your comfort, please bring a light jacket or sweater to the program. Notice: If you have a disability that may affect your participation in this event, please forward a statement regarding any special needs to the Nebraska Bankers Association. We will contact you to discuss accommodations. REGISTRATION FORM ON BACK COVER!

13 1 09/04/18 Financial Institution: 2018 Women in Banking Conference Omaha Embassy Suites Downtown October 10 11, 2018 Please register the following individual(s): NAME (as you wish it to appear on the badge) Last 4 Digits of SSN Bank / Branch Address: City/Town: Zip: Phone# ( ) Address Member Fee: First reg $285 per person Add l $270 per person Non Member Fee: $855 per person Full Registrants: Please check ( ) to confirm your participation in the reception event. ONLINE YOU MUST LOGIN TO RECEIVE MEMBER DISCOUNTED PRICING! Registrations received after October 3 will be an additional $20 per person. Four Ways to Register: Payment Choice (check one): FAX: (402) WEBSITE: MAIL: NBA Education Center, PO Box 80008, Lincoln, NE Education PHONE: (402) Event Calendar TOTAL DUE $ MasterCard VISA Cardholder Name: Card Number: CVV: Exp. Date: Signature: 233 South 13th Street, Suite 700 Lincoln, Nebraska Phone: (402) Education Center Fax: (402) /04/18

14 Certified Banking CYBERSECURITY MANAGER TM THE CERTIFIED ADVANTAGE: With the guidance of a cyber expert, complete the FFIEC Cybersecurity Assessment for your institution. Build a solid foundation of understanding for the FFIEC guidance. Gain the knowledge to better defend cybersecurity threats. This onsite certification is delivered over two days. It provides an opportunity to work closely with a security expert and network with peers. ON SITE Course Date: October 15-16, 2018 Schedule: Day 1: 9:00-5:00 Day 2: 8:00-4:00 Location: Nebraska Bankers Association 233 S 13th Ste 700, Lincoln, NE Requirements: A laptop or tablet with your preferred Internet browser. WHAT YOU WILL LEARN: Cybersecurity Overview Inherent Risk Risk Maturity Cybersecurity Policy Effective Cybersecurity Reporting and Decision-Making Cybersecurity Audit Enterprise Risk Management EXECUTIVE Director President CIO CISO CORE CERTIFICATION Certified Banking Security Executive CBSE CTO CFO COO TESTIMONIAL: I was fortunate enough to be involved in the first offering of the certification program and due to the program s benefits, I continue to renew each year. Each year I learn something new and more innovative ways to grow the bank s program. SBS has been a resource not only for their certification programs, but also as a security partner. - Rachel Losey, PA SPECIALIZED CERTIFICATIONS Certified Banking Cybersecurity Manager CBCM INSTRUCTOR: Chad Knutson, CISSP, CRISC, CISA President, SBS Institute PRICE: Certification: $1,295 A $295 annual membership fee and 4hours of continual educational credits are required to keep the CBCM designation. For more information or to enroll in this certification visit

15 Please feel free to dress casually. To ensure your comfort, please bring a light jacket or sweater to the program. Notice: If you have a disability that may affect your participation in this event, please forward a statement regarding any special needs to the Nebraska Bankers Association. We will contact you to discuss accommodations. 233 South 13th Street, Suite 700 Lincoln, Nebraska Phone: (402) Education Center Fax: (402) Certified Banking CYBERSECURITY MANAGER TM Certification 1-09/17/18 Financial Institution: Bank / Branch Address: City/Town: Zip: Phone# ( ) October 15 16: NBA Office, Lincoln Please register the following individual(s): NAME (as you wish it to appear on the badge) Last 4 Digits of Address SSN The advanced registration fee per person for the CCBSP Certification Program is: Member: $1,295 Non-Member: $3,885 ($295 Annual Renewal) Registrations received after October 9, 2018, will be an additional $100. Four Ways to Register: FAX: (402) WEBSITE: MAIL: NBA Education Center, PO Box 80008, Lincoln, NE Education PHONE: (402) Event Calendar TOTAL DUE $ Payment Choice (check one): MasterCard VISA Cardholder Name: Card Number: CVV: Exp. Date: Signature:

16 2018 SUMMIT REGULATORY ISSUES SUMMIT ANNUAL SUMMIT LINCOLN OCT 26 DIALOGUE WITH THE REGULATORS Cornhusker Marriott, Lincoln Register online at

17 Share a Dialogue with the Regulators The 2018 Summit on Regulatory Issues has been planned to provide an opportunity for bankers to have a dialogue with banking industry regulators. You will hear from representatives from the FDIC, OCC, Federal Reserve, CFPB, and the Nebraska Department of Banking & Finance. We re sure this will be an outstanding event and one you won t want to miss. Friday, October 26, :00 a.m. Registration / Break Service 9:30 a.m. Opening Remarks Dave Dannehl, NBA Chairman First State Bank of Loomis 9:45 a.m. Keeping Pace with the Demands of Regulatory Oversight James C. Ballentine, Executive Vice President of Congressional Relations and Political Affairs American Bankers Association, Washington, DC 10:00 a.m. Regulatory Panel Discussion Moderated by James C. Ballentine James D. LaPierre, Regional Director Federal Deposit Insurance Corp., Kansas City, MO Dialogue with the Regulators HEAR IT HERE From the Regulators Kevin Moore, Senior Vice President, Supervision and Risk Management Division Federal Reserve Bank of Kansas City, Omaha, NE Kay Kowitt, Deputy Comptroller Western District Office of the Comptroller of the Currency, Denver, CO Kelly Lammers, Deputy Director, Financial Institutions Nebraska Department of Banking and Finance, Lincoln, NE Edwin Chow, Regional Director, West Region (Invited) Consumer Financial Protection Bureau, San Francisco, CA Panel Wrap up with James C. Ballentine (agenda continued on next page)

18 12:00 p.m. Luncheon 1:00 p.m. Up Close & Personal with the Regulators Ask direct questions and hear what those charged with overseeing your institution have on their agenda for the next year during breakout sessions with the regulators. Regulators will have a chance to hear directly from you regarding your concerns, problems, and recommendations. 2:30 p.m. Adjournment Registration Information Member Fee: Non Member Fee: $45.00 per person* for the first registrant; $35.00 per person* for each additional registrant $ per person* *If received by October 19, 2018 This fee includes all program materials, luncheon, and break service. The deadline for registrations and refunds for cancelled registrations is October 19, Any registrations received after that date will be an additional $10.00 per person and subject to space availability. Hotel Information Reservations can be made by calling the hotel directly. Cornhusker Marriott Hotel 333 South 13 th Street, Lincoln (402) Summit on Regulatory Issues Cornhusker Marriott Hotel, Lincoln October 26, /12/18u Financial Institution: Bank / Branch Address: City/Town: Zip: Phone# ( ) Please register the following individual(s): Last 4 Digits of FIRST NAME MI LAST NAME Social Security # October 26, 2018 Lincoln Cornhusker Marriott Hotel Members: $45.00 (per person) 1st registrant; Non-Members: $ (per person) Registration after 10/19/18 will have a $10 late fee charge in $35.00 (per person) for each addt l addition to the registration fee. Four Ways to Register: ONLINE YOU MUST LOGIN TO RECEIVE MEMBER DISCOUNTED PRICING! Payment Choice (check one): FAX: (402) WEBSITE: MAIL: NBA Education Center, PO Box 80008, Lincoln, NE Education PHONE: (402) Event Calendar TOTAL DUE $ MasterCard VISA Cardholder Name: Card Number: CVV: Exp. Date: Signature:

19 Please feel free to dress casually. To ensure your comfort, please bring a light jacket or sweater to the program. Notice: If you have a disability that may affect your participation in this event, please forward a statement regarding any special needs to the Nebraska Bankers Association. We will contact you to discuss accommodations. 233 South 13th Street, Suite 700 Lincoln, Nebraska Phone: (402) Education Center Fax: (402) /12/18u

20 September 14, 2018 Vol. XXXV, No. 18 GLBA ANNUAL PRIVACY NOTICE I. INTRODUCTION More than three years after passage of the FAST Act, the CFPB has finally issued amendments to its GLBA Privacy Notice regulations. When the FAST Act passed, banks were left in limbo because the GLBA changed immediately but the implementing regulations did not, creating an inconsistency between the statute and the regulation. Many banks decided to stop sending annual privacy notices immediately, notwithstanding the regulatory inconsistency. With adoption of the amendments to the Privacy Notice regulations, the inconsistency has been eliminated. II. FAST ACT A. Background The FAST Act passed by Congress in 2015, eliminated the annual privacy notice requirements for a financial institution that (i) only shares consumer information within the Graham-Leach-Bliley Act (GLBA) listed exemptions (meaning the company does not give an opt-out right) and (ii) has not changed its information sharing practices from the most recent privacy notice. A financial institution that meets the requirements for the annual notice exception will not be required to provide annual notices until such time as the financial institution fails to comply with the criteria set forth above. A financial institution will no longer meet the requirements for the exception either by beginning to share nonpublic personal information in ways that trigger rights to opt-out notices under the GLBA and Regulation P, or by otherwise changing its policies and practices with regard to disclosing nonpublic personal information from the policies and practices that were disclosed to the customer in the most recent privacy notice the financial institution provided. Financial institutions that no longer meet the conditions for the exception must provide customers with annual privacy notices.

21 B. Delivery of Annual Privacy Notice After Financial Institution No Longer Meets Requirements For Exceptions 1. Changes Preceded By a Revised Privacy Notice: If a financial institution no longer meets the conditions for the exception because it changed its policies or practices in such a way that it is required to provide a revised privacy notice, the financial institution is required to resume delivery of its subsequent regular annual privacy notices pursuant to the existing timing requirements governing delivery of annual notices generally. Under the final rule, if a financial institution provides a revised notice on any day of year one in advance of changing its policies or practices such that it loses the exception, that revised notice would be treated as an analogous to an initial notice. Assuming that the financial institution defines the 12-month period as the calendar year, the financial institution would have to provide the first annual notice after losing the exception by December 31 of year two. 2. Changes Not Preceded By a Revised Privacy Notice. If a financial institution no longer meets the conditions for the exception because it changed its policies or practices in such a way that it is not required to provide a revised privacy notice, the financial institution must provide an annual privacy notice within 100 days of the change in its policies or practices that caused it to no longer meet the conditions for the exception. If a financial institution changes its policies and practices in such a way that it no longer meets the conditions for the exception effective April 1, assuming the financial institution defines the 12-consecutive-month period as a calendar year, if the financial institution was not required to provide a revised privacy notice, it must provide an annual privacy notice by July 9 (100 days after April 1). 3. Discontinuance of Annual Privacy Notice If, subsequent to providing an annual notice to customers after a financial institution no longer meets the conditions for the exception, the financial institution once again is eligible for the exception to the annual notice requirement, no additional annual notices must be sent to customers until such time as the financial institution no longer meets the requirements for the exception. The foregoing Compliance Update is for informational purposes only and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.

22 September 14, 2018 Vol. XXXV, No. 19 FINCEN - PERMANENT EXCEPTIVE RELIEF FOR RENEWALS/ROLLOVERS I. INTRODUCTION The Financial Crimes Enforcement Network (FinCEN) has announced that it will grant permanent exceptive relief from beneficial ownership requirements for the following types of accounts: a. a rollover of a certificate of deposit; b. a renewal, modification, or extension of a loan that does not require underwriting review and approval; c. a renewal, modification, or extension of a commercial line of credit or credit card account that does not require underwriting review and approval; and d. a renewal of a safe deposit box. The exception applies to rollovers, renewals, modifications or extensions occurring on or after May 11, FinCEN earlier this year granted temporary exceptive relief to CD rollover and automatically renewing loans. The exceptive relief does not apply to the initial opening of any of the types of accounts listed above, nor does it apply to relieve any covered financial institution of its customer due diligence requirements under Anti-Money Laundering (AML) program rules. Notwithstanding the permanent accepted relief, covered financial institutions must comply with all other applicable AML requirements under the Bank Secrecy Act, such as maintaining an AML program and reporting suspicious activity. II. COVERED PRODUCT DESCRIPTIONS AND CHARACTERISTICS For purposes of the exceptive relief, the accounts listed above, are defined as follows: Certificates of Deposit For purposes of the Ruling, a certificate of deposit (CD) is a deposit account that has a specified maturity date, but cannot be withdrawn before that date without incurring a penalty. During the term of the CD, a customer cannot add additional funds to the CD. The term of a CD may vary from a week to several years. At the end of the term, when the CD matures, the customer is entitled to the amount deposited and any interest that has accrued; the customer may also have

23 the ability to elect to either renew or close the account. Typically, the account will automatically renew absent affirmative action by the customer to close the account. Loan Renewals, Modifications, and Extensions Generally, a loan account is an account created to track transactions related to a loan that has terms and conditions tailored to the needs and circumstances of the customer, such that the issuance of a new loan would result in a new account relationship. However, once a loan application process is finalized and a loan approved, a financial institution may renew, extend, or otherwise modify the loan without substantively changing the terms or requiring additional underwriting. Industry has also represented that, as with CDs, some loans are subject to automatic renewal, modification, or extension within a specified time and require no action from the customer for that renewal, modification, or extension to take effect. Commercial Lines of Credit and Credit Cards A commercial line of credit account is a type of revolving loan account that allows a commercial enterprise to draw upon a predetermined amount of funds and generally use those funds only for specified business purposes. Small businesses rely on this mode of financing to cover short-term needs such as paying suppliers and addressing payroll needs. A business customer can repay the line at any time by making payment to the financial institution through the account, at which point those funds become available for borrowing again. Credit card accounts are revolving accounts, similar to commercial line of credit accounts, that grant the customer a maximum credit limit, which can generally be used repeatedly so long as the limit is not exceeded. The financial institution may change certain terms of a commercial line of credit or of a credit card, such as the credit limit, without requiring the affirmative assent of the customer. Safe Deposit Boxes Financial institutions maintain safe deposit boxes within their institutions that they rent to individuals and legal entities to store valuables such as collectibles, documents, and jewelry. While financial institutions do not have access to the contents of a safe deposit box rented to a customer, under the terms of the rental agreement, customers are not permitted to store money or dangerous substances in them. In exchange for the use of the safe deposit box, the customer generally pays a rental fee that is electronically deducted from an account provided to the financial institution. During the rental period, the financial institution has minimal or no communication with the customer, so long as the rental payment is made. The foregoing Compliance Update is for informational purposes only and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney. 2

24 NBA BankPAC honor Roll The NBA BankPAC s 2018 Campaign is in full swing! As of September 15, $97,744 has been collected toward this year s campaign goal of $155,000! Over the past few years, Nebraska banking has battled more regulation, legislation, and competition than any other industry. Every year, the Nebraska Legislature and Congress spend months considering legislation that affects bankers bottom lines. Our strength is in our numbers and that is why we need a strong PAC. We recognize the following members for making voluntary contributions to NBA BankPAC. The members, their respective NBA Group and PAC contribution category represents: 1) actual dollars received; 2) an institution/individual that donated in-kind item(s) to the NBA State BankPAC Silent Auction; and 3) any money collected from State BankPAC fundraisers.

25 $1-$499 First State Bank, Gothenburg and branches MNB Bank, McCook and branches Nebraska State Bank, Broken Bow (In-Kind) Nebraska State Bank, Oshkosh Platte Valley Bank, Scottsbluff (In-Kind) Waypoint Bank, Cozad and branches $500-$999 First Central Bank, Cambridge, McCook, and branches First State Bank of Loomis, Loomis Hershey State Bank, Hershey NebraskaLand National Bank, North Platte Points West Community Bank, Sidney West Plains Bank, Ainsworth Group 1 Group 2 $1,000-$1,499 None $1,500 and over Adams Bank & Trust, Ogallala FirsTier Bank, Kimball Gothenburg State Bank, Gothenburg Homestead Bank, Cozad and branches 2018 Silent Auction In-Kind Donors: Gothenburg State Bank, Gothenburg Kaye Monie, Hershey State Bank, Hershey First State Bank of Loomis, Loomis MNB Financial Group, Inc., McCook NebraskaLand Financial Services, North Platte Nebraska State Bank, Broken Bow Platte Valley Bank, Scottsbluff $1-$499 Adams County Bank, Kenesaw Bank of Doniphan, Doniphan Citizens Bank & Trust, St. Paul (In-Kind) First Bank & Trust Co., Minden First Bank & Trust of Fullerton, Fullerton Five Points Bank, Grand Island and branches Heartland Bank, Geneva and branches York State Bank, York $500-$999 Minden Exchange Bank & Trust, Minden $1,000-$1,499 None $1,500 and over Bruning State Bank, Bruning and branches Cornerstone Bank, York and its branches Generations Bank, Exeter Town & Country Bank, Ravenna 2018 Silent Auction In-Kind Donors: Bruning State Bank, Bruning Generations Bank, Exeter Heartland Bank, Geneva First Bank & Trust Co., Minden Citizens Bank & Trust, Saint Paul Cornerstone Bank, York Group 3 $1-$499 Elkhorn Valley Bank & Trust, Norfolk First Northeast Bank of Nebraska, Lyons Midwest Bank, Pierce and branches $500-$999 Bank of Dixon County, Ponca Commercial State Bank, Wausa First Community Bank, Beemer First State Bank, Randolph Frontier Bank, Pender $1,000-$1,499 Butte State Bank, Butte $1,500 and over CharterWest Bank, West Point and branches F&M Bank, West Point and branches Madison County Bank, Madison Security Bank, Laurel and its branches

26 Group Silent Auction In-Kind Donors: First Community Bank, Beemer Butte State Bank, Butte Security Bank, Laurel Group 4 Midwest Banc Holding Co., Pierce CharterWest Bank, West Point F&M Bank, West Point and branches $1-$499 Bank of Lindsay, Lindsay Bank of the Valley, Bellwood and branches Columbus Bank & Trust Co., Columbus Dundee Bank, Omaha First National Bank of Omaha, Omaha First National Capital Markets, Omaha First National of Nebraska, Inc., Omaha Great Western Bank, Omaha Security National Bank of Omaha, Omaha Washington County Bank, Blair $500-$999 Two Rivers Bank, Blair Northwest Bank, Omaha and branches $1,000-$1,499 Bank of Bennington, Bennington Scribner Bank, Scribner United Republic Bank, Omaha $1,500 and over ACCESSBank, Omaha and branches American National Bank, Omaha Farmers State Bank, Dodge and branches Farmers State Bank & Trust Co., Fremont First Nebraska Bank, Valley and branches First Westroads Bank, Omaha Platte Valley Bank, North Bend 2018 Silent Auction In-Kind Donors: United Republic Bank, Omaha Bank of Bennington, Bennington Farmers State Bank, Dodge and branches Farmers State Bank & Trust Co., Fremont Platte Valley Bank, North Bend Great Western Bank, Omaha United Republic Bank, Omaha First Nebraska Bank, Valley/Columbus Group 5 $1-$499 Adams State Bank, Adams (In-Kind) Cornhusker Bank, Lincoln Horizon Bank, Waverly (In-Kind) Lincoln Federal Savings Bank of Nebraska, Lincoln Security First Bank, Lincoln $500-$999 Corn Growers State Bank, Murdock First State Bank Nebraska, Lincoln $1,000-$1,499 U.S. BanCorp. PAC, Lincoln $1,500 and over Countryside Bank, Unadilla F&M Bank, Falls City Mainstreet Bank, Cook Union Bank & Trust Co., Lincoln Wells Fargo & Co. PAC, Lincoln 2018 Silent Auction In-Kind Donors: Adams State Bank, Adams Mainstreet Bank, Cook First State Bank Nebraska, Lincoln Cornhusker Bank, Lincoln Corn Growers State Bank, Murdock Security First Bank, Lincoln Countryside Bank, Unadilla Horizon Bank, Waverly

27 Institutions with Board of Director participation: Adams Bank & Trust, Ogallala ACCESSBank, Omaha Bank of the Valley, David City Bruning State Bank, Bruning CharterWest Bank, West Point Cornerstone Bank, York Countryside Bank, Unadilla F&M Bank, West Point, Wayne, Gretna and South Sioux City F& M Bank, Falls City Farmers State Bank, Dodge/Bridgeport First Westroads Bank, Omaha Generations Bank, Exeter Gothenburg State Bank, Gothenburg Platte Valley Bank, North Bend Scribner Bank, Scribner Town & Country Bank, Ravenna United Republic Bank, Omaha Institutions with 100% employee and\or officer participation: Cornerstone Bank, York Countryside Bank, Unadilla F&M Bank, West Point, Wayne, Gretna and South Sioux City F& M Bank, Falls City Farmers State Bank, Dodge/Bridgeport First Westroads Bank, Omaha Gothenburg State Bank, Gothenburg Platte Valley Bank, North Bend Scribner Bank, Scribner This information is as of September 15, If you are not on this list and have recently contributed to BankPAC, your bank will be listed on a future Honor Roll listing in an upcoming NBA Update. If you have Board of Director or employee/officer participation that you would like to promote, please contact Jennifer Heaton at the NBA at *NBA BankPAC contributions include: Silent Auction and Mulligan purchases. An institution listed on the honor roll may have contributed to one or all of the following: A state BankPAC contribution, a federal BankPAC contribution, a mulligan purchase, or a silent auction purchase. Silent Auction donations are in-kind donations. Institutions are recognized by the retail value of the item(s) donated. NBA BankPAC must obtain written authorization to solicit for its federal PAC. Corporate contributions are prohibited to the federal PAC. All contributions are voluntary. No employee will be favored, disadvantaged, or retaliated against based on his or her contribution amount or his or her decision not to contribute. No form of coercion may be used to solicit contributions. A suggested contribution is just that, a suggestion. Funds donated to NBA Federal BankPAC support candidates for a Federal office who support the banking industry. The listing of national banks reflects contributions by only individual officers, employees, or directors of such banks. Other Silent Auction Donors: Alan and Amy Emshoff, Exeter Aaron Bell, Lincoln Bankers Bank of the West, Lincoln Brandt, Horan, Hallstrom and Stilmock, Syracuse Cathy Morrissey, Lincoln Clark and Robin Lehr, Columbus Cory Bergt, Lincoln Dave and Stephanie Dannehl, Loomis First Bankers Banc Securities, Lincoln Jerry and Jill Catlett, Bruning Jim Bellows-Aflac, York John Daubert, Lincoln Joyce Douglas, Cook Justin Douglas, Cook Lydell and Lorrie Woodbury, Columbus Midwest Independent Bank, Lincoln Mike Hall, Omaha NBA Leadership Class of 2018 NBA Leadership Class of 2014 PCBB and Rob Markey, Walnut Creek, CA

28 Banks & Bankers (September 12-18) A special THANK YOU to the following Husker Harvest Days volunteers: Richard Nelson, Central National Bank (Superior), Ashlee Brandt, First National Bank (Grand Island), Scott Johnson, Bank of Doniphan (Doniphan), Kirk Cisler (not pictured), BankFirst (O Neill), Joe Libal, Gothenburg State Bank (Gothenburg), Nikki Davison, First State Bank Nebraska (Lincoln), Shawn Paitz, FirsTier Bank (Elm Creek), Dave Van Pelt, Midwest Bank (Lincoln), Kevin Kudera, Farmers State Bank (Dodge), Dave Fulton, Town & Country Bank (Pleasanton), Mary Clifton, York State Bank (York), LaTonna Brand and Vikki Daily, both of Five Points Bank (Grand Island), Lee Anderbery, Bankers Bank of the West (Lincoln), and Patty Gorecki and Deb Hargens, both of Pathway Bank (Cairo). (L to R): Nelson, Brandt, Johnson (L to R): Davison, Paitz, Libal (L to R): Fulton, Kudera, Van Pelt (L to R): Brand, Daily, Clifton (L to R): Hargens, Anderbery, Gorecki Bankers in the News Nick Leland and Ryan Dugdale, First National Bank Fremont, along with Stacy Gibney and Jeff Mimick, First State Bank & Trust Co. (all of Fremont), have been selected to participate in the class of the Fremont Area Chamber of Commerce Leadership Fremont program, presented by First State Bank & Trust Co. Justin Ott, Henderson State Bank (Henderson), has been selected to join the bank s board of directors. Extraordinary Service for Extraordinary Members NBA Update

29 Banks & Bankers (September 12-18) Banks in the News Bruning State Bank (Broken Bow), along with Off Broadway, sponsored two fraud seminars, focusing on cybersecurity and senior fraud, on Sept. 13. Citizens State Bank (Leigh) employees hosted the tailgate for the Howells/Dodge vs. Clarkson/Leigh football game on Aug. 24. They served more than 500 hamburgers! All proceeds from the event went to the Clarkson/Leigh Booster Club. Commercial State Bank (Plattsmouth) earned the best commercial entry prize for their Nebraska football-themed float in the Plattsmouth Harvest Festival parade. First Bank & Trust of Fullerton (Fullerton) hosted a community quilters workshop on Sept. 15. Gothenburg State Bank (Gothenburg), along with Investment Service Center, presented members of the Gothenburg Swede Booster Club with a $1,000 donation and hosted a tailgate for the Sept. 7 football game. The funds were derived by the bank donating $5 for each Swedes Visa debit card sold (and administered by the bank) for the past several months (pictured to the left.) Mainstreet Bank (Syracuse) broke ground on a new branch location on Sept. 6 (pictured below). Midwest Bank (Deshler) held a Dragon Drive at which they gathered donated school supplies for local students as well as $1, in monetary donations. All gifts benefited Deshler Public School and Deshler Lutheran School kids. Potter State Bank (Potter) won second place in the business category for their Labor Day parade float. Union Bank & Trust Co. (Pawnee City) is scheduled to host Gov. Pete Ricketts and Nebraska Farm Bureau President Steve Nelson this week for Pawnee City s and Nebraska City s town hall meetings. Western Nebraska Bank (Sutherland) purchased a 4-H livestock calf and has donated the beef to Sutherland Public and Paxton Consolidated Schools. Extraordinary Service for Extraordinary Members NBA Update

30 Banks & Bankers (September 12-18) Promotions & Appointments HENDERSON: Jami Schmidt, chief financial officer, Henderson State Bank. LINCOLN: Drew Littrell, finance specialist, West Gate Bank. LINCOLN: Brent Frahm, residential mortgage loan officer, Union Bank & Trust Co. NORTH PLATTE: Roy Barta, loan officer/assistant vice president, Western Nebraska Bank. OMAHA: Amy Dritley, business development manager, CharterWest Bank. Brown Bergen Fousek LINCOLN: Drew Brown, chief information officer; Spencer Bergen, in-house legal counsel; and Adam Fousek, vice president of engineering, Union Bank & Trust Co. Hruska Bashus Bandars Glenn Borgeson OMAHA: Jill Hruska and Paul Bashus, vice presidents/relationship managers; Heath Bandars and Melissa Glenn, senior business service specialists; and Lindsay Borgeson, vice president of deposit services, Core Bank. Extraordinary Service for Extraordinary Members NBA Update