SD BANKING COMMISSIONDECEMBER 4, 2015

Division of Banking

1

2

Secretary of Labor & Regulation

Marcia Hultman

Director of BankingBret Afdahl, CFIRS

Division AttorneyBrock Jensen

CFIRS, COE

Support Staff

Jean BlowLicense Specialist

Delaine CampbellSenior Secretary

Deputy DirectorJohn Crompton

CEIC

Financial Institution Examiners

Michael DummerCEIC

Donald BergerCEIC, CFIRS

Todd YoungbluthCEIC

Drew HaackCEIC

Delton WitteCEIC

Florence SimmonsCEIC

Jordan LaBrieCEIC

Jacob WagnerCCE

Michael ZellmerCCE Brady Schlechter

David Henry Max Eckrich

Blake Gunderson Morgan Kronaizl

Deputy DirectorScott Kelly

CEIC, CFIRS, CTETrust Examiners

Matthew SchlechterCFIRS, STE

Jason NomsenCFIRS, CTE

Jim BenhamCFIRS, CTE Brad Pesicka

Jonathon Sanborn Matthew Spolum

Chase Koskovich

Banking CommissionJeff Erickson

John LillibridgeRichard WestraPaul ChristenSteve Hayes

Commission Attorney

Curt Jensen

General Information

• State Chartered Banks: 54

• Total Assets: $24,077,235• Largest Bank: Great Western Bank, Sioux Falls

($9,790,723,000)

• Smallest Bank: Farmers State Bank, Hosmer ($19,850,000)

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SD Banking Profile

4

$0

$5

$10

$15

$20

$25

Billi

ons

Total Assets vs. Total Deposits

Total Assets

Total Deposits

150

200

250

300

350

400

450

30

40

50

60

70

80

90# of Locations# of Charters SD Bank Charters vs. Bank Locations

# of Charters# of Locations

2015 BANK TRANSACTIONS

• American State Bank, Oldham change of control• Home Federal Bank conversion to a state-chartered bank • First Bank & Trust Milbank and First Bank & Trust, NA,

Pipestone, MN merged with First Bank & Trust Brookings• Fulton State Bank merged with Farmers State Bank,

Parkston• Dakota State Bank, Blunt to merge with First Dakota

National Bank, Yankton

5

Number of Banks per Category

13

1415

1

6

4 1Number of Banks

Under $50M$50M-$99M$100M-$299M$300M-$499M$500M-999M$1B-4.99BOver $5B

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Asset Composition

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*Includes all State-chartered banks – 54 charters

$409,431

$3,737,168

$753,524

$17,247,985

$332,281

$34,503 $787,115 $716,584

Total Asset Composition ($000)

Cash

Total Securities

Other Investments

Net Loans and Leases

Premises and Fixed Assets

OREO

Intangible Assets

All Other Assets

Composite Ratings - Banks

8

0

10

20

30

40

50

60

70

1

2

3

4

5

*There are 3 less banks because the First Bank of White merged with FB&T Brookings; Dakota Heritage Bank Chancellor merged with Security State Bank Tyndall; and Mansfield State Bank was acquired by American Bank & Trust Wessington Springs

** There are 1 less bank because Farmers State Bank Faith was acquired by First National Bank in Philip

***There is one less bank because of MinnWest merger, AB&T merger, and addition of Security Savings Bank

****There are 2 less banks because of First Bank & Trust Milbank (and First Bank & Trust, NA, Pipestone, MN) merged with First Bank & Trust Brookings; Fulton State Bank merged with Farmers State Bank, Parkston; Dakota State Bank, Blunt, merged with First Dakota National Bank, Yankton; and Home Federal Bank converted to a state charter.

Capital

9*Includes all State-chartered banks – 54 charters

11.26%

15.79%

16.78%

10.50%

14.43%15.13%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

Tier 1 Leverage Capital Tier 1 Capital Total Capital

Average

Median

Asset Quality

10*Includes all State-chartered banks – 54 charters

0.12%

1.04%

0.00%

0.69%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

OREO to Assets Past Due & NA Loans to Gross Loans

Average

Median

Earnings

11*Includes all State-chartered banks – 54 charters

1.26%

4.23%

1.23%

3.96%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

ROAA NIM

Average

Median

Loan Volume and Funding

12*Includes all State-chartered banks – 54 charters

64.78%

77.37%

68.88%

79.85%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Net LN & LS to Assets Core Deposits to Assets

Average

Median

Bank Examination Hours

13

6,000

8,000

10,000

12,000

14,000

16,000

18,000

0

5

10

15

20

25

30

2008 2009 2010 2011 2012 2013 2014 2015**

Exam Hours # Exams

**2015 includes projections for remaining examinations.

Bank Examination Staff

14

0

2

4

6

8

10

12

14

16

Banking Staff Tenure

10+ years

7-10 years

5-7 years

3-5 years

<3 years

Writing

Trust Company Profile

15

0

10

20

30

40

50

60

70

80

$-

$20

$40

$60

$80

$100

$120

$140

$160

$180

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

Trust CompaniesBillions

Trust Assets # of Trust Companies

Trust Department Profile

16

5

6

7

8

9

10

11

$0

$1

$2

$3

$4

$5

$6

$7

02 03 04 05 06 07 08 09 10 11 12 13 14

Trust DepartmentsBillions

Trust Assets # of Trust Departments

Public vs. Private Trust Companies

17

34 38 41 47 51

2226

2829

32

0

10

20

30

40

50

60

70

80

90

2011 2012 2013 2014 11/16/2015

Tota

l Tru

st C

ompa

nies

Private Companies Public Companies

Public vs. Private Trust Assets

18

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

2011 2012 2013 2014

Tota

l Ass

ets(

000)

Private Companies Public Companies

Managed vs. Non-Managed Assets

19

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

2011 2012 2013 2014

Tota

l Ass

ets

Custodial Assets Directed Assets Discretionary Assets

Trust Company Situs

20

4

28

3

20

25

30

5

10

15

20

25

30

Active Presence Contracted Presence Limited Presence

# of

Tru

st C

ompa

nies

Private Companies Public Companies

Trust Company Composite Ratings

21

5

25

5

160

25

0

7

0

10

20

30

40

50

60

Strong Satisfactory Unsatisfactory Not Rated

Num

ber o

f Tru

st C

ompa

nies

Private Companies Public Companies

Trust Company Examination Stats

22

10 10

1511

10

4

6

10

0

1

2

3

4

5

6

7

8

9

0

5

10

15

20

25

2012 2013 2014 11/16/2015

# of

Exa

min

atio

ns

Private Exams Public Exams Full-Time Trust Examiners Out-of-State Exams

Trust Examination Staff

23

0

1

2

3

4

5

6

7

8

9

12/31/2012 12/31/2013 12/31/2014 11/16/2015

# of

Exa

min

ers

10+ years3-10 years1-3 years<1 yearWriting Exams

SD Licensee Profile

24

0

200

400

600

800

1,000

1,200

1,400

1,600

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

Total # Regulated Licensees - 2,612

Money Lenders Mortgage Lenders Mortgage Brokers

Mortgage Loan Originators Money Transmitters

Licensee Examination Efforts

• Mortgage• Work with MMC on multi-state companies• Examine SD specific and report to MMC

• Money Lender• CFPB payday rules expected in 2016• Continue exams on regular intervals

• Money Transmitter• Review exams from home states• Conduct BSA reviews of authorized delegates in SD

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Division Locations

South Dakota Division of Banking

1601 N. Harrison Avenue, Suite 1Pierre, SD 57501Ph: 605-773-3421; Fax: 1-866-326-7504

1500 W. 51st Street, Suite 102Sioux Falls, SD 57105

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Wrap UP

• Questions?

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