Print Issue: 2017 - December Edition

CFPB outlines customer data-sharing principles

The CFPB issued principles for protecting consumers when they authorize third party companies to access their financial data to provide certain financial products and services.

The CFPB said the principles are intended to help foster the development of innovative financial products and services, increase competition in financial markets, and empower consumers to take greater control of their financial lives. The principles affirm, to all stakeholders, that consumer-authorized financial data needs to be protected. [Continue]

Cordray resignation opens opportunity at the CFPB

The resignation of Richard Cordray as director of the Consumer Financial Protection Bureau presents an opportunity. I hope the new director of the bureau focuses on under-regulated sectors of the financial services industry, leaving banks to the regulatory oversight of the Fed, OCC, FDIC and/or state regulators. [Continue]

Patrick Derpinghaus of Associated Banc-Corp to retire

Patrick Derpinghaus, executive vice president and chief audit executive of Associated Banc-Corp, Green Bay, Wis., announced he plans to retire March 1, 2018. Derpinghaus, who joined Associated in 2011, had a successful career in various audit, accounting and administrative roles within the financial services industry spanning four decades. He also played an integral role in leading the Associated Veterans Network. [Continue]

Will next generation move banks beyond challenges?

The focus in the banking industry during 2017 continued to be on performance. The Fed began raising the fed funds rate in late 2015 and again in late 2016. All expectations were for rate increases to resume in 2017, which they did in January, March and July up to a range of 1.00 to 1.25 percent, where it has remained. Even with these increases, margins remain compressed and borrowers are challenged by persistent concerns, particularly in the agricultural economy. Ag output pricing remains low and current supplies high. Therefore, as producers try to wait for price increases to sell, returns to producers resulting from improved yields on new production are not expected to materially increase overall returns and may have the effect of increasing downward pressure on prices, thus reducing returns. To increase prices more, avenues for sales need to open up. Trade restrictions can be counterproductive to development of market expansion, keeping domestic supplies to low valuations. This is putting pressure on land valuations adding further complications for banks operating in the agricultural communities. [Continue]

Community Development Bank completes branch purchase

Community Development Bank, FSB, of Ogema, Minn., has completed its purchase of the First American Bank, N.A., branch in St. Michael, Minn. The deal closed on Oct. 20. First American, based in Hudson, Wis., acquired Great Northern Bank in St. Michael in 2014 and converted it into a branch. Great Northern was a 1999 de novo. First American Bank was formed in 2007. [Continue]

Pondering the intricacies of monetary policy

Wow! What a year 2017 has been. Manic hardly describes the antics in Washington after the election of Donald Trump. Those of you who know me are keenly aware that to me, “poly” means many, and “tics” are blood-sucking insects. … I digress, my apologies. This article is not about the swamp; it is about the community-banking environment heading into 2018, so let’s stay focused. [Continue]

Nine banks in region will note centennials in 2018

In 1918, James Kewley, Wilbur Kerns and Henry Knoche organized the Onarga State Bank, Onarga, Ill. In 1983, the bank changed its name to Federated Bank of Onarga, and in 2018 the bank will be one of nine in the Upper Midwest to commemorate a centennial anniversary. [Continue]