MONTANA BANKERS MBA Bankers Attended ABA’s Washington … · 2019-04-30 · Desiree Elkin, EVP,...

BANCSERVE PRESSMONTANA BANKERS

ASSOCIATION OFFICERS

Chairman: Bill Lucas, Market President - BillingsU.S. BankBillings, MT

President/CEO:Steve TurkiewiczHelena, MT

Vice Chairman:Bob Galt, President/CEOFirst State Bank of MaltaMalta, MT

Secretary/Treasurer:Bill Bickle, Chief Credit OfficerStockman Bank of MontanaMiles City, MT

Immediate Past Chairman:Rex Phipps, CEO Garfield County Bank Jordan, MT

BOARD OF DIRECTORSWestern:

Ryan Clevidence, Vice PresidentFarmers State BankVictor, MT

Jake Pelczar, Vice PresidentBank of Montana Missoula, MT

Southwestern:

Gordon Johnson, PresidentAmerican BankLivingston, MT

Northcentral:

Scott Geda, Senior Vice PresidentFirst Bank of MontanaHavre, MT

Bruce Hoyer, President/CEOBelt Valley BankBelt, MT

Southcentral:

K.C. Hickok, Chief Credit OfficerBank of BridgerBridger, MT

Desiree Elkin, EVP, CCOSummit National BankLaurel, MT

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

APRIL 2019

Inside this Issue

ABA’s Washington Summit Pg. 1

UBB Names Interim President Pg. 4

Marijuana Banking in 2019 Pg. 5

GSBC’s Community Bank Investment School Pg 7

ABA Banking Journal - Ag Lending Growth Pg. 9

2019 MBA Conferences and Workshops Pg. 10

Endorsed Spotlight: United Bankers Bank Pg. 11

Compliance Alliance Question of the Month Pg. 12

Banks and Personnel Pg13

MBA Bankers Attended ABA’s Washington Summit

L-R. B. Bickle, R. Phipps, E. Garding, B. Elkin, A. Franzen, D. Elkin, Chair Powell, Sen. Tester, S. Turkiewicz, M. Seppala, B. Lucas, C. Hegreberg

The Annual ABA Washington Summit brought more than 1300 bankers from around the country to meet with policy makers.

MBA Chairman Bill Lucas-US Bank, led the Montana contingent which included MBA Immediate Past Chair Rex Phipps -Garfield County Bank, MBA Secretary/Treasurer Bill Bickel -Stockman Bank, MBA Board Members Desiree Elkin-Summit National Bank, Mike Seppala -Western Security Bank, Arron Franzen -First Community Bank, Ed Garding -First Interstate Bank, Brian Elkin -Summit National Bank, Mike Grove and Michael Grove -Bank of the Rockies.

The program had a wide range of speakers. Senate Banking Chair Mike Crapo and

Sen Mike Crapo, R-ID

APRIL 2019 BANCSERVE PRESS

Or call: 800/541-5126

BOARD OF DIRECTORS

Northeastern:

Rich Kingsley, President/CEOValley BankGlasgow, MT

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

Southeastern:

Rex Phipps, CEOGarfield County BankJordan, MT

Scott Klein, Vice PresidentFirst State Bank of ForsythForsyth, MT

Large Banks:

Mike Seppala, President/CEOWestern Security BankBillings, MT

Bill Bickle Sr. Banking Exec., Stockman Bank of Montana Miles City, MT

Bill Lucas, Market President - BillingsU.S. BankBillings, MT

Tom Severson, Msla Mkt Pres.First Interstate BancSystem, Inc.Missoula, MT

BANCSERVE BOARDChairman:Bill Lucas, Market President - BillingsU.S. BankBillings, MT

President/CEO:Steve TurkiewiczHelena, MT

Director:Vacant

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

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

House Financial Services Chair Maxine Waters outlined their goals for industry legislation during the current Congress. The Federal Reserve Bank Presidents Panel discussed several topics including the need and value of having bankers as Federal Reserve BankBoard members.

One of the panelists was KC Fed President Ester George, who will be speaking at June’s MBA/WBA Annual Convention. Ken Haslett, Chair White House Economic Advisors, gave a positive outlook for the economy’s near-term performance. Senior Staff from the OCC, Fed, and FDIC discussed their continuing efforts to implement the reforms contained in S. 2166, passed in 2018. Noted political operatives Donna Brazil and Mike Murphy discussed the 2020 elections, the change in the majority in House of Representatives and the effects of the “Twitter News Cycle”. Interestingly, when talking about the ever growing number and diversity of potential Democratic presidential candidates, Brazil mentioned, “Montana’s Governor Steve Bullock” as a new face “testing” the waters.

An important part of the Washington DC visit are meetings with our Montana Congressional Delegation. We had productive meetings with Senators Tester and Daines and with Congressman Gianforte’s senior staff.

The group focused on four major topics:

-CECL. The bankers urged the members to support legislation requiring SEC and federal banking regulators to perform a quantative impact study. The study should assess CECL’s impacts on the industry and lending throughout an economic cycle and across banks of all sizes and recommend changes to address any negative impacts. And, delay the required effective date until one year after the study can be completed.

-Privacy and Data Security. A national standard is needed to ensure consistent protection for all consumers. Congress needs to pass a strong, consistent national data security and privacy standard. The standard must recognize the strong privacy and data security standards that are already in place for financial institutions under the Gramm-Leach-Bliley Act (GLBA). All entities that handle sensitive personal information must be required to protect that data and provide notice in the event of a breach that puts consumers at risk. The appropriate national and state regulators should provide robust and exclusive enforcement.

Visit us on the web at www.montanabankers.com

BANCSERVE PRESSABA DELEGATES

ABA Foundation BOD:Mike Grove, PresidentBank of the Rockies.NA White Sulphur Springs, MT

Community Bankers Council:Scott Klein, Vice President First State Bank of Forsyth Forsyth, MT

Agricultural and Rural Bankers Committee: Heather Malcolm, VP Bank of the Rockies, N.A. Livingston, MT

Government Relations ConcilRex Phipps, PresidentGarfield County Bank Jordan, MT

Taxation Administrative CommitteeWilliam Schrock, Tax DirectorFirst Interstate Bank Billings, MT

Membership CouncilSam Waters, President/ChairmanFirst Community Bank Glasgow, MT

STATE BANKERS ASSOCIATION GROUP

BENEFITS TRUST BOARD OF TRUSTEES

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

Bart Langemeier, PresidentFirst Bank of BridgerBridger, MT

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

Gordon P. Johnson, PresidentAmerican BankBozeman, MT

APRIL 2019

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

STATE BANKERS ASSOCIATION GROUP BENEFITS TRUST

-Cannabis Banking. Excluding the legal cannabis industry from the banking system has serious consequences for the communities where they operate. Permitting legal cannabis businesses to use the banking system would improve the safety, regulation, transparency, and accountability of the industry. Bankers asked the members to support legislation that allows banks to serve cannabis-related business in states where it is legal and clarify that those proceeds from their legitimate transactions are not money laundering and does not violate federal law.

-Farm Credit System. For too long, FCS has been able to unfairly compete with our rural banks, especially in long-term ag real estate financing. Congress needs to examine this issue and not pick winners and losers in ag financing. Our delegation was urged to support the Enhancing Credit Opportunities in Rural America Act (ECORA). The bill would remove the taxation on interest income from ag real estate loans, giving ag banks the same tax status as the FCS when making farm real estate loans.

A highlight of our visit was an impromptu photo opportunity with Jerome Powell, Chair, Board of Governors of the Federal Reserve System. Chairman Powell was waiting to meet with Senator Tester as we were finishing up our meeting. Senator Tester asked Chairman Powell if he would take a moment to meet the visiting Montana bankers and take the time for a photo. The Chairman graciously accepted the Senator’s request.

In addition to the Washington Summit, ABA hosted the Women’s Leadership Forum and the Emerging Leaders Forum. Attending the Forums were Desiree Elkin and Brian Elkin, Summit National Bank, Arron Franzen, First Community Bank, Michael Grove, Bank of the Rockies and incoming MBA President/CEO Cary Hegreberg was able to attend the Emerging Leaders Forum. Both Forums were an excellent opportunity for participating bankers to learn and grow as a leader and network with peers from across the country. The Emerging Leaders Forum had a turnout with over 400 registered attendees from nearly every state! The program began with a Community Service Event where attendees filled 150 backpacks with school supplies that were then delivered on a later date in conjunction with ABA’s Teach Children to Save program to 2nd grade students in DC. The excellent lineup of speakers then gave tips on how to compose effective emails, engaging in political advocacy, leadership, and strategy.

The Women’s Leadership Forum was also packed with information on political partcipation, women executives changing the workplace, and managing work/life balance.

The 2020 Washington Summit and Emerging Leaders and Women’s Leadership Forum are scheduled for March 23-25, 2020. Bankers should mark their calendars today to attend these important industry programs.

MBA/BANCSERVE STAFF

Government Relations: Steve Turkiewicz President/CEO

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

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

Bookkeeping:Karmen MillhouseAccounting Technician

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

BANCSERVE PRESSAPRIL 2019


John Peterson named Interim Bank President and CEO at United Bankers’ BankBryan Grove, Chairman of the United Bankers’ Bancorporation, Inc. (UBBI) Board of Directors, formally announced that John Peterson will serve as UBB’s Interim President and CEO following the retirement of William “Bill” Rosacker on April 30, 2019.

“John is a well-respected community banking professional with over 34 years of banking experience,” said Grove. “The board and I value his business acumen, integrity and first-hand knowledge of community and correspondent banking and are looking forward to working with him as our Interim President and CEO.”

John has served the financial services industry for many years. Before joining UBB in 2002, he worked in retail banking for 17 years in bank operations, lending and branch management. In Peterson’s current role as Executive Vice President and Chief Marketing Officer, he oversees UBB’s marketing, correspondent banking sales and bank consulting services. He is a graduate of Minnesota State University Mankato, attaining degrees in Law Enforcement and Business Administration, with emphases in Finance and Economics.

“The Board has engaged an executive search firm, Kaplan Partners, in the search for UBB’s next President and CEO.” Grove continues, “we are confident that the next person to fill the position of President at UBB will build off the bank’s exceptional service culture, as well as its strong financial and risk management in charting the bank’s strategy for success in the years to come.”

About United Bankers’ Bank

Headquartered in Bloomington, MN, United Bankers’ Bank is the nation’s first bankers’ bank, and a full service provider of correspondent banking services to over 1,000 community banks. For more information, please visit www.ubb.com.



Marijuana Banking in 2019Silvia Garcia Maggio, Deputy General Counsel

Last year the most frequently asked topic over at Compliance Alliance was, without a doubt, beneficial ownership. With the effective date for that rule well

behind us, today the top BSA question we are getting is about how the heck to deal with marijuana banking. Now the issue with Marijuana Banking is that there are no set definitions and conflict between state and federal laws. Therefore, it’s important to discuss both the definitions that do exist and strategies for the bank to make their own interpretations.

First, the 2018 Farm Bill clarified, from a federal perspective, that hemp cultivation is legal and not just restricted to pilot programs for research purposes which it was before. Importantly, the Act also allows interstate transfer of hemp products. Also, the passage of the law allows for the sale and possession of hemp-based products, as long as those products are consistent with the parameters of that rule. So, what are the parameters? There are still tight restrictions on this type of product. Hemp under this rule is limited to less than 0.3% THC. Second, the Bill asks state departments of agriculture to create a regulatory framework that would be collaboration between the state’s governor, law enforcement and the United States Department of Agriculture in order to license and regulate hemp. That plan will have to be approved by the USDA so we’re not free and clear yet. Farmers in states that choose not to have a USDA-approved program will still have the opportunity to grow hemp and produce hemp-based product, but they will be regulated at the federal government level. As can be expected from those last two parameters, hemp producers will have to be licensed and regulated which will mean some level of enhanced due diligence for institutions that choose to bank those customers.

How does any of this help us? It helps us because hemp is derived of the same plant as marijuana – the cannabis plant. However, hemp does not have the same effects as marijuana simply because it does not contain as much of the chemical compound known as THC. This creates a category of product that is legal and not classified as marijuana under the controlled substance act Products that are derived of the same plant but have more THC than allowed that would no longer be considered hemp and instead, would be considered marijuana. As marijuana is still an illegal controlled substance, at the federal level, under the Controlled Substance Act this makes a critical difference to banks that are not banking marijuana-related businesses but will bank legal hemp businesses.

As the prevalence of marijuana businesses continues to increase, banks have to make risk-based decisions as to whether to bank them and how to determine whether their customer actually is an MRB. That distinction should include an intimate understanding of state laws and definitions and also, a conclusive policy statement as to whether the bank does business with MRBs and what the bank’s definition of an MRB is (is it only a dispensary or grower? Is it a customer who rents retail space to a dispensary?). This process should also include a discussion with the bank’s regulator to understand expectations beyond FinCEN’s stated guidance as there is no other federal regulator that has made any official guidance and state regulatory guidance is varied.

The number one BSA topic thus far in 2019 is how to develop Marijuana Related Business policies and more importantly, how to even define “Marijuana-Related Businesses”. At the moment, there really isn’t federal guidance so banks are having to make those interpretations themselves. There are a variety of methods to go about that - from the three-tier approach to the zero tolerance approach to the “we are choosing not to make an interpretation in our policy” approach. Without a set industry standard, banks are working from scratch via member groups – like C/A huddles – and relying on industry resources like ACAMS to make those interpretations about products that are legal within their own states.



A zero tolerance approach on the interpreting what is a “marijuana-related business” has generally included not doing any business with companies who have any relation to marijuana business, directly or indirectly. Direct marijuana business under this approach includes businesses that grow, distribute, sell or produce items that do not fall under the definition of “hemp” under a state-licensed or federal program. Indirect businesses would include businesses that provide services to those businesses – like landlords and business supply companies. While this is the most conservative approach, it is easy to see the downside. This definition interpretation includes businesses that perhaps did not provide services in the past but do now – like office supply businesses or gardening supply companies. If in the middle of a long-term business relationship – like a closed-end loan – it will be up to the bank to determine how to wrap-up the relationship in order to comply with their own policy. Another approach being taken is the three-tiered risk approach as discussed by ACAMS back in 2016. This approach puts businesses into three different tiers based on risk. The bank then makes a risk-based interpretation of what the definition of “marijuana related business” means by deciding whether to bank customers who are Tier 1, Tier 2 and/or Tier 3.

It is important to note that regardless of which approach – regardless of how they interpret (or choose not to interpret what an MRB is) – they must do so with an understanding of what the legal and compliance risk is to the bank and within the scope of the bank’s acceptable risk. As with any change that is not explicitly addressed by banking regulators, it is a best practice to work with the bank’s regulators, the bank’s attorneys to determine state-specific laws, and the state department of banking prior to beginning new products.

Compliance Alliance does have Marijuana Banking tools on the website under the “Marijuana Banking Toolkit” which includes helpful things like an updated manual to help banks sort out how to build a marijuana banking policy.

Silvia Garcia Maggio, CRCMAssociate General Counsel

Silvia Garcia Maggio serves as an Associate General Counsel for Compliance Alliance. After graduating from The University of Texas School of Law in 2011, Silvia began her career in real property and foreclosure law. Employed by a national mortgage servicer since 2012, Silvia worked on the OCC independent foreclosure audit and in compliance for Enterprise Risk Management, gaining a multitude of experience dealing with multi-state and federal banking regulations. Silvia started with Compliance Alliance in March of 2014. Silvia is part of our team of attorneys who assist CA members with a wide-range of regulatory and compliance inquiries. Over the past year, Silvia has developed and implemented the C/A Minute videos, a series of short, compliance training and refresher videos that leverage the frequently asked questions from the Compliance Alliance hotline. In addition, Silvia regularly presents on a number of compliance topics at regulatory schools and conferences nation-wide.



Recession Nearing? Portfolio Strategies for the Year AheadWhat a difference a few months make. In October 2018, the 10-year Treasury rate hit 3.25% and many market participants anticipated two more Federal Reserve rate hikes. The Treasury yield curve was modestly upsloping with longer-term rates above short-term rates. In recent days, the 10-year rate has fallen as low as 2.4% and the yield curve has inverted to where the 10-year rate is slightly below the 3-month Treasury rate.

Historically, an inverted yield curve has signaled that a recession is coming. This belief is consistent with recent data suggesting an economic slowdown, such as declines in purchasing managers indexes, declining sales of high-priced homes, and low inflation expectations. The Federal Reserve has correspondingly signaled that it will likely not raise the federal funds target rate in the near-term. If the U.S. economy is headed toward recession, how should community banks respond?

GSBC is offering the Community Bank Investment School (CBIS) this May that will address specific portfolio strategies that community banks might pursue in response to the volatile U.S. economy. Participants will work with community bankers who manage their banks’ investment portfolios (portfolio advisers) to examine specific securities and balance sheet strategies that best fit their banks’ risk and return objectives. Issues to be addressed include:

• How changes in the level of interest rates and the shape of the yield curve affect portfolio returns• How the slowdown in sales of high-priced homes affects the jumbo mortgage market and what this means

for mortgage-backed securities (MSBs) based on jumbos• How agency securities will likely be affected by changes in Fannie and Freddie efforts to reduce risk in

their guarantee programs• How commercial MBSs will respond if the economy slows• How the municipal market will respond to changing economic conditions and the persistent pension

problems in Illinois, New York, California, etc.

CBIS is a redesigned extension of a program I managed successfully at the University of South Carolina for more than 20 years, the Graduate School of Bank Investments and Financial Management. Now under the GSBC umbrella, CBIS is held at the University of Colorado Denver Business School where students have access to a state-of-the-art trading room and live instruction on their bank’s specific securities holdings. As part of small groups, each participant will examine the risk and return characteristics of different securities via Bloomberg terminals under the guidance of the community bank portfolio advisers.

Like all GSBC programs, CBIS was designed with a community bank’s best interests in mind. Only here will your employees have access to strategies independent from any one specific brokerage firm or investment model.

Seats are still available for the upcoming CBIS session, to be hosted May 19-23, 2019. Visit the program page for more information and a schedule, or contact the GSBC office at 800.272.5138.

by Timothy Koch, Ph.D., President



1 OneBeacon Financial Services® A Member of OneBeacon Insurance Group®

March 2019 | Issue 19

ATM Fraud Alert

BY CRAIG M. COLLINS – PRESIDENT, FINANCIAL SERVICES

As the use and sophistication of technology increases, it would stand to reason that it would be more difficult for fraudsters to gain access to bank accounts via ATMs. Unfortunately, crooks seem to be equally sophisticated, and quickly outwit many safeguards soon after they are put in place. Here are some highlights and examples of ATM frauds that are unfolding across the country.

Confirm that your ATMs are EMV Chip Enabled A particular type of ATM fraud is showing up in many areas. It involves the use of foreign counterfeit cards being used at ATMs. While the cards used in the fraud have EMV chips, the ATMs that have been attacked were not EMV chip enabled. The fraudsters find the institutions without the EMV enabled ATMs, empty the cash with fraudulent transactions, and then drive to the next branch location (assuming that more of that particular bank’s ATMs are not EMV enabled). The lack of EMV hardware shifts the financial liability for the fraud back to the bank that owns the ATM. Confirm that your ATMs are EMV chip enabled. If not, you should consider restricting access of any cards that aren’t issued by your bank, and call your ATM vendor to

get the EMV hardware and software installed immediately. Cardless ATM Transactions While they sound convenient, cardless ATM transactions are now the newest target of fraud. Fake Text Scam: Customers can receive text messages “from the bank” that send them to a fake link. The customer is told that their account has been locked and they need to provide personal information. This information is then used to initiate and complete cardless ATM transactions. Cloned Phone Scam: Many of these scams are originating while a customer is using unsecure public Wi-Fi. The fraudsters are able to gain login and account information as well as phone information. They use the information to



Ag Lending Growth Tops 5 Percent in 2018

The nation’s farm banks increased agricultural lending by 5.3%, or $5.5 billion, to $108 billion in 2018, according to the American Bankers Association’s annual Farm Bank Performance Report released on 4/23/19. With non-performing loans remaining at a pre-recession level of 0.52% of total loans, asset quality was also healthy among the nation’s 1,772 farm banks.

“Even in the face of a slowing ag economy and harsh weather, farm banks continue to perform strongly while meeting the credit needs of farmers, ranchers and their communities,” said ABA Chief Economist James Chessen. “They play a critical role in the success of farms large and small, and their civic engagement and the jobs they provide make them the lifeblood of many rural communities across the country.”

More than 94% of farm banks were profitable in 2018, with more than 63% reporting an increase in earnings, according to the report. Farm banks also served as job creators, adding more than 1,500 jobs in 2018, a 1.8% increase, and employing more than 86,000 rural Americans. Since 2008, employment at farm banks has risen 24.4%.

Farm banks — defined by ABA as banks with ratios of domestic farm loans to total domestic loans greater than or equal to the industry average — also continued to build high-quality capital throughout 2018. Equity capital increased 6.1% to $48.7 billion, while Tier 1 capital increased by $3.3 billion to $46.7 billion.

The report notes that the entire banking industry — not just farm banks — provides farmers and ranchers with the credit they need. At the end of 2018, banks held $186 billion in farm and ranch loans. The U.S. banking industry is also a major source of funding to small farmers with more than $78 billion in small and micro farm and ranch loans on the books at the end of 2018. (A small farm loan is a loan with an original value of $500,000 or less and a micro farm loan is a loan with an original value of $100,000 or less.)



2019 MBA Conferences and Workshops

q 2019 New Accounts, Hilton Garden Inn, Billings, April 30 - May 1, 2019

q 2019 New Accounts, Best Western Grant Creek, Missoula, May 2 - 3, 2019

q 2019 BSA/AML, Best Western Gran Tree, Bozeman, May 14, 2019

q 2019 Deposit Compliance, Best Western Gran Tree, Bozeman, May 15, 2019

q 2019 Physical Security, Best Western Gran Tree, Bozeman, May 16, 2019

Watch for upcoming Conferences and Workshops coming in 2019 at www.montanabankers.com or for more information contact Pam O’Reilly, Association Services Director, at 800/541-5126 or [email protected].

Plan ahead to join Montana Bankers Association

&Wyoming Bankers Association at

the Snow King Resort inJackson Hole, Wyoming

June 6 - 8, 2019



Montana Bankers Association Spotlights an Endorsed Product

Upcoming Events

American Mortgage ConferenceApril 29 - May 1, 2019

Pinehurst, NC

ABA - Wharton CEO Leadership LabMay 1 - 3, 2019Philadelphia, PA

Payments ForumMay 21 - 22, 2019Washington, DC

Upcoming EventsNew Accounts - Billings April 30 - May 1, 2019

Hilton Garden Inn, Billings

New Accounts - MissoulaMay 2 - May 3, 2019

Best Western Grant Creek, Missoula

BSA/AMLMay 14, 2019

Best Western Gran Tree, Bozeman

Deposit ComplianceMay 15, 2019


Physical SecurityMay 16, 2019




Compliance Alliance Questions of the Month

Question:We escrow for taxes and insurance. This is not an HPML loan nor is flood insur-ance required in this situation. The taxes, with respect to this loan, are subject to a continual homestead credit that exceeds the tax charge. So, year after year, the amount via escrow that is owed is $0.00. The bank would like to collect a small amount as a cushion in case the taxes increase over the established credit. We don’t necessarily anticipate the taxes to increase, though. Can we do this?

Answer:A lender or servicer (hereafter servicer) shall not require a borrower to deposit into any escrow account, created in connection with a federally related mortgage loan, more than the following amounts:(ii) Charges during the life of the escrow account. Throughout the life of an escrow account, the servicer may charge the borrower a monthly sum equal to one-twelfth (1/12) of the total annual escrow payments which the servicer reasonably anticipates paying from the account. In addition, the servicer may add an amount to maintain a cushion no greater than one-sixth (1/6) of the estimated total annual payments from the account.

Question:On a business loan where we have personal guarantees, do we have to check MLA on the guarantees, since they are acting as individuals?

Answer:No, because a business loan is not a covered transaction under the MLA. The MLA applies to “consumer credit” offered to covered borrowers, as those terms are defined in the MLA.

Regarding the applicability of the MLA to guarantors, the Act is not clear as to whether it does apply or does not apply to guarantors. Conservatively, the bank would treat guarantors as if they fall under the scope of the MLA because they are to some extent “obligated on the consumer credit transaction...”

Question:We are selling one of our branches next month. The branch only has one HMDA loan to date. Do we need to report that loan on the HMDA LAR? The bank that is purchasing the branch is not a HMDA-reporting bank.

Answer:Assuming that purchasing this branch will not cause the acquiring back to become a HMDA-reporting bank, then yes, in this instance you’d report any HMDA reportable loans that originated prior to the sale in April. Any reporting after the sale by the acquiring bank is optional for the remainder of the year.



Bozeman• Manhattan Bank is pleased to welcome Justin Skillman, Vice President and Commercial Loan Officer of the

Bozeman Branch. As a graduate of Montana State University in Business, Justin has over 14 years of experience in banking.

Kalispell• Joe Kola is First Interstate Bank Kalispell’s new market president, serving Kalispell and the surrounding

areas. Kola began his career at First Interstate Bank in 1999 as a teller in Missoula while completing college. After finishing college, Kola worked as a credit analyst before relocating to First Interstate’s Whitefish branch in 2005 as a commercial relationship manager. In 2011, Kola accepted the role of commercial loan manager for First Interstate in Jackson, Wyoming until his promotion to market president in May 2018. Kola has a Bachelor of Science degree in finance and a Master’s of Business Administration from the University of Montana after completing as Associate of Arts and foundational business courses at Flathead Valley Community College.

Manhattan• Manhattan Bank announces the availability of scholarships for graduates of the 2018-2019 academic year. A

scholarship will be awarded to a graduate of Manhattan High School, Manhattan Christian High School, Three Forks High School and Wilow Creek High School. These scholarships may be used to pay costs of tuition, books or required fees to any accredited public or private post-secondary educational institution or trade school. Applications are available online at www.manhattanbank.com.

Missoula• Isaac Obrigewitch has joined Stockman Bank as a new account representative for the Missoula market. His

responsibilities include assisting customers with their accounts and customer service needs. Obrigewitch brings over three years of banking experience to the position, which includes account management and administrative support.

Wibaux• Wanda Van Vleet has been promoted to Assistant Vice President, Branch Manager for Stockman Bank in

Wibaux. She will continue to oversee bank operations and focus on expanding all lending activities within the market. Van Vleet joined the bank in 2014 and has more that 11 years of experience in the banking industry including bank operations, employee management and lending.

Banks and Personnel

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