2020 Five State Virtual Banker Convention!

Many state banking associations chose to cancel their annual conventions but not us!

We are excited to invite you to join us VIRTUALLY for our 2020 convention.

REGISTER

The 2020 Virtual Convention, hosted by the Idaho, Oregon, Nevada, Utah, and Washington Bankers Association, includes two days of interactive and engaging sessions, designed for bankers of all levels.

This year’s event includes a keynote address by FDIC Chair Jelena McWilliams, followed by a fireside chat with ABA Chair and Sound Community Bank President & CEO Laurie Stewart. Rob Nichols, president & CEO of the American Bankers Association, will provide an update from Washington D.C. and leadership specialist Cindy Solomon will look at courageous leadership during difficult times. Robert Gates, former U.S. Secretary of Defense from 2006 to 2011, will close out the event on August 6. As someone who served under both President George W. Bush and President Barack Obama, Gates will share his perspective on current world events and how the U.S. fits into the global picture.

We invite you to join us, as well as bankers from throughout five Western states, to engage and network during the event. Learn about the latest the industry has to offer in the tradeshow, full of local companies ready to solve your banking challenges.

We can’t wait to see you this August!

*Registration for the 2020 Virtual Convention hosted by the Idaho, Oregon, Nevada, Utah, and Washington Bankers Associations is dependent upon executive approval. The registrant’s organization will be invoiced following the first registration from that institution.

For general convention questions contact Jeni Hall at jhall@idahobankers.org or (208) 506-7046.

Idaho banks rocked the PPP!

Idaho banks rocked the PPP! $1.85B in paycheck dollars for small businesses and their employees. Contact your Idaho Congressional delegation to tell them we need more funding for the PPP. The need is great! Idaho banks assisted in completing 13,627 PPP loans totaling nearly $1.85 billion in approved dollars. Thank you to all the bankers […]

Idaho’s Financial Institutions Proactive on Coronavirus

BOISE – Idaho’s Banks have sprung into action to meet the financial service needs of our state’s families and businesses during the coronavirus public health emergency. The Idaho Bankers Association and the Idaho Community Bankers Association collectively represent Idaho federally insured depository institutions. On behalf of our members, we want to share the following important information with you.

Here are some key facts:

  1. Financial institutions are prepared and able to be the source of strength for the communities we serve.
  2. Money in insured financial institutions is safe
    -Not a penny of deposits insured by FDIC has ever been lost.
    -The safest place for your money is in an insured depository institution.
    -Up to $250,000 is the basic amount covered by federal insurance for single accounts at any insured institution. Additional coverage may be available depending on account type and structure.
    FDIC insurance coverage details are accessible here: https://www.fdic.gov/deposit/

What consumers and businesses should know:

  1. Financial institutions are working proactively with borrowers experiencing challenges in the current environment.
    -Each institution is eager to work with you for a solution customized to your situation.
  2. Financial institutions have responded positively to Governor Little’s and President Trump’s health directives. Pandemic business continuity plans were already in place and are being exercised
  3. Lobby access may be restricted, but we’re open for business (check your financial institution’s webpage for details):
    -Drive through service, when available at a branch, is open for transactions.
    -Individual appointments for in-person meetings are being scheduled.
    -Technology platforms give ready access to online services like bill pay, remote depositing of checks and ATMs for cash.
    -Consumers can take advantage of the United States’ world-class payments system and use mobile payment channels and debit cards or credit cards to make purchases

Be on guard for scams. To learn more about what to avoid, visit FTC Coronavirus Scams Page.

“Idaho’s banks are open for business, and we are seeing banks statewide responding positively to the Governor and President’s health directives,” said Trent Wright, president and CEO of the Idaho Bankers Association. “Bankers are taking care of their team members by protecting their health as best as possible so they can continue to operate. And they’re focusing on helping concerned customers. For those with loans, it’s all about staying in touch, identifying needs and working on customized solutions. For savers and depositors, it’s reassuring to know that deposits within FDIC insurance limits are fully protected. The almost 5,000+ Idahoans who work as bankers are fully committed to helping lead our communities through this trying time.”

“Tailoring” on appraisals when a qualified appraiser cannot be found.

S.2155 Section 103 Exemption from Appraisal of Real Property located in Rural Areas, provides an exemption under certain circumstances that you can have an “waiver” if unable to locate an appraiser.  There are several requirements in order to meet this exemption.  Additionally, the Final Rule published last week by the inter-agency on the Residential Real Estate Appraisals Threshold Increase, implemented changes to the Exemption from Appraisal of Real Property -these changes to Exemption from Appraisal of Real Property located in Rural Area January 1, 2020.  All of the requirements to use the Exemption are within the legislation. 

Two IBA Members Recognized as Best to Work for by American Banker

Congratulations to our IBA members who were on the list of best banks to work for out this week from the American Banker publication. As the article points out, the bank’s leaders must work purposefully every day to ensure that employees are engaged, having fun and enjoy what they are doing. Getting on the list also requires having to answer a lot of survey questions about their leadership philosophy, going above and beyond for employees, efforts to recruit a diverse workforce, their most effective ways to communicate and more.

Recognized are Washington Trust Bank, Chairman and CEO: Peter Stanton; Zions, President and CEO: A. Scott Anderson

Here’s a link to the article to read more and why they were selected.

2019 Excellence in Finance Awards

Idaho Bankers Association Endorses ICBA Bancard

Washington, D.C. (Aug. 8, 2019)—ICBA Bancard, the payments services subsidiary of the Independent Community Bankers of America® (ICBA), has been endorsed by the Idaho Bankers Association (IBA). This marks the 39th state banking association to give its seal of approval to ICBA Bancard, which provides payments solutions to community banks.

“We are honored to be selected by IBA to serve Idaho’s community banks and deliver on our promise to offer best-in-class products and services that meet the needs of today’s savvy customers and keep community banks at the forefront of payment innovation,” said ICBA Bancard President and CEO Tina Giorgio. “Working with leading state associations like IBA allows ICBA Bancard to further its mission to deliver flexible, innovative payments solutions that allow community banks to flourish.”

ICBA Bancard provides nearly 2,400 community banks with the best industry pricing, along with access to proven education and marketing programs and consultative client support. In addition, ICBA Bancard clients receive access to innovative programs such as the exclusive Fraud Loss Protection Plan.

“The Idaho Bankers Association is proud to endorse ICBA Bancard, a highly respected and trusted community bank partner for more than 30 years,” said IBA President and CEO Trent Wright. “By harnessing the collective buying power of the nation’s community banks, ICBA Bancard and IBA are helping community banks across our great state realize their card portfolio’s potential and achieve their strategic payments objectives.”

About ICBA

ICBA Bancard® is the wholly owned payment services subsidiary of the Independent Community Bankers of America. ICBA Bancard’s community bank issuers generated $29.3 billion in sales volume in 2018 and are ranked collectively as the 24th largest credit card portfolio in the United States. ICBA Bancard enables thousands of community banks to provide competitive credit card, debit card, ATM and merchant processing solutions. The company also provides exclusive services to issuers including its Fraud Loss Protection Plan, marketing support, and product education. For more information, visit www.icbabancard.org.

Relief for Community Banks in the Competition for Deposits

Relief for Community Banks in the Competition for Deposits

An important reform of the rules governing reciprocal deposits will make it easier for community banks to compete for the business of large depositors.

By: Steve Davis, Regional Director at Promontory Interfinancial Network, LLC

The recent bank reform bill made a lot of news, but what may surprise you is the specific provision of the Economic Growth, Regulatory Relief, and Consumer Protection Act that community bankers believe will have the biggest impact on their daily business.

Before the bill became law, a lot of attention was placed on the provision raising the systemically important financial institutions, or SIFI, threshold from $50 billion to $250 billion in assets, above which banks must contend with a heavier compliance burden.

Yet, the provision involving SIFIs directly impacts only a small number of commercial banks based in the United States—the dozen-plus with between $50 billion and $250 billion in assets.

Perhaps that’s why when Promontory Interfinancial Network queried bankers for its second-quarter Executive Business Outlook Survey, executives from the 390 banks that responded pointed elsewhere when asked to identify the law’s most impactful provision.

Thirty-seven percent of respondents said the law’s provision that allows most reciprocal deposits to be treated as nonbrokered deposits ranked highest on a scale of one to five, placing it first among the seven other provisions tested.

It was up against stiff competition. The other provisions included those that eased the qualified mortgage rule, extended the regulatory exam cycle and simplified capital rules for community banks, among others.

“We think the change to reciprocal deposits is great,” says Christopher Cole, executive vice president and senior regulatory counsel for the Independent Community Bankers of America. “It clarifies the status of reciprocal deposits and alleviates the concerns many community banks had about using them.”

Similarly, the American Bankers Association noted that, “the definition of brokered deposits needs to be modernized and we appreciate that Congress took a first step by recognizing reciprocal deposits are a stable source of funding for many community banks.”

The change in the law makes sense, says Neil Stanley, president of community banking at TS Banking Group, which owns three banks, including Treynor State Bank, a $400 million bank based in Treynor, Iowa: “This is one of those areas that reflects what bankers always thought was true—when a large, local depositor does business with us, any deposits above the $250,000 FDIC insurance threshold shouldn’t be considered brokered or highly volatile just because we place them with other institutions on a reciprocal basis.”

Underscoring the significance of the change, 58 percent of respondents to Promontory Interfinancial Network’s survey said they plan to start using, or expanding their use of, reciprocal deposits immediately or very soon because of the new law. An additional 29 percent said they would consider doing so in the future.

To put this in perspective, according to the same bank leaders, the next most impactful provision included in the new law relates to the easing of rules surrounding commercial real estate loans, followed by the provision that shortened call reports and then by the provision that provided qualified mortgage relief.

The change in reciprocal deposits may seem like a peripheral issue, but it addresses a fundamental inequity in banking. It does so by helping to level the playing field between the handful of large, money center banks headquartered in places like New York City and the thousands of smaller banks spread across the country that serve as economic lifelines in their communities.

Institutional investors have often favored big banks because of the belief they are “too big to fail.” And since they have more resources to invest in mobile and online banking technology, big banks have become magnets for deposits from the new generation of digitally savvy consumers. These banks no longer need to rely as heavily on building branches in rural communities to compete with community banks for funding; they can now reach small-town customers through their smartphones.

As such, many of the nation’s biggest banks are reporting organic increases in deposits. And the competition on the funding side of the balance sheet will only intensify as interest rates climb. The Federal Reserve’s Open Market Committee has raised the fed funds rate multiple times this year and is expected to continue doing so.

By making it easier for community banks to use reciprocal deposits, in turn, the new law strengthens their ability to grow relationships and deposits from a local customer base without losing either one to bigger banks with deeper pockets.

“This is a step in the right direction,” says Bert Ely, a principal of Ely & Company, where he monitors conditions in the banking industry. “It makes it easier for community banks to accommodate large depositors.”

Given all this interest, it seems likely that the use of reciprocal deposits will increase in the coming months and years. Banks not currently familiar with them would thereby be wise to familiarize themselves with how reciprocal deposits work and their benefits.

To learn more about reciprocal deposits and the impact of the new law, contact Steve Davis at sdavis@promnetwork.com.

FDIC Deposit Insurance Coverage and Related Matters – Free Webinar

FDIC Deposit Insurance Coverage and Related Matters – Free Webinar

Provided complimentary as a member service by the Idaho Bankers Association and Promontory Interfinancial Network, LLC.

Click here to register – May 7, 2019 – 10:00–11:00 AM CT
Click here to register – May 9, 2019 – 2:00-3:00 PM CT

Now is a great time for bankers to refresh their knowledge on FDIC insurance regulations as the FDIC continues to examine bankers’ understanding of deposit insurance rules that apply to third-party agency accounts.

FDIC insurance eligibility is a key benefit banks provide to depositors. It can be an important selling point in maintaining key customer relationships and obtaining bank funding.

This 45-minute educational webinar is designed for all levels of bank employees and executives and will include a Q&A segment to address your specific concerns. The webinar will be presented
by Joe DiNuzzo, a former attorney with the FDIC and an expert in FDIC insurance regulations.

A certificate of completion will be available for all attendees.

For additional information, please email contactus@promnetwork.com.

Statewide Industry Earnings up 54 Percent in First Half of Year

The 13 banks based in Idaho earned $40 million in the first six months of 2018, according to data released by the FDIC Thursday. Net income for the period was up 54 percent over the same time in 2017. Loans grew by 11.3 percent to $4.29 billion, and deposits increased by 6.9 percent to $5.36 billion during the first half of the year. Net interest margin also improved to 4.37 percent, which is above the national average. For the quarter, the state’s banks earned $21 million, an increase of 58 percent over the second quarter 2017. “The performance numbers validate what we’re hearing from members that the economic conditions in general remain strong around the state, and that, in turn, leads to improved industrywide bank results,” said Trent Wright, IBA President and CEO. Family and business finances remain relatively stable as well, with the amount of noncurrent loans and loans charged off declining. Nine of 10 loans are being paid on time. Nationally, increased operating revenues and a lower effective tax rate helped industrywide earnings increase 25.1 percent for the quarter.

 See the FDIC Quarterly Banking Profile here.