Print Issue: 2018 - January Edition

Bankers educate lawmakers on industry issues

Chuck Mueller could hardly fault his customers for pulling their deposits from his bank. If the president and CEO of Fidelity Bank, Edina, Minn., had been in their position, he quite possibly would have done the same thing.

Some of the largest depositors at Fidelity Bank were neither upset with its staff nor seeking better rates elsewhere. They had no qualm whatsoever with Mueller’s $435.9 million organization, aside from its state charter within Minnesota and the effect such had regarding residency factors issued by the Department of Revenue.

One of those 26 factors when considering residency status was the “location of any bank accounts, especially the location of the most active checking account.” If one of Mueller’s customers wanted to establish residency in tax-free Florida, for example, their account at Fidelity Bank could be used against them when Minnesota went looking for taxes.

“We had three or four customers walk in and move millions of dollars just because, although it wasn’t a de facto absolute, it was one of those things on the list,” Mueller said. “They just wanted to be really safe because the state is watching this.

“No amount of talking on my part could convince these people to retain those deposit relationships. … [Continue]

WBA pushes for financial literacy

With the signing of Assembly Bill 280, bankers in Wisconsin finally got financial literacy education formally included in state curriculum standards. [Continue]

Survey says apps could become profits

An S&P Global Market Intelligence report indicated while the rate of digital lending growth may begin to slow in the next few years, albeit still growing overall, banks need to emphasize their digital and mobile capabilities more than ever. Specifically, mobile apps have moved from a luxurious perk to an absolute necessity for banks as demanded by their customers. [Continue]

Indiana Bankers Association recognized for app

The Indiana Bankers Association has been honored with the 2017 Impactful Technology award of excellence from the Indiana Society of Association Executives. The award was in recognition of the multipurpose IBA App, which provides anytime/anywhere access to IBA events, staff listings, Hoosier Banker Digital and other IBA opportunities. [Continue]

Heartland Financial to add Minnesota bank to its roster

Minnesota Bank & Trust, Edina, Minn., a subsidiary of Heartland Financial USA, Inc., Dubuque, Iowa, and Signature Bank, Minnetonka, Minn., have agreed to merge. Signature Bank will be blended into Minnesota Bank & Trust’s operations and brand. The combined bank will create a $600 million Heartland subsidiary. [Continue]

Public offering, acquisitions shape business at Byline Bank

Commenting to a business magazine on the future plans of Byline Bancorp Inc., chairman Roberto Herencia said, “We have a management team that is capable of running a much larger and more complex organization.”

That was in June, right as Byline launched the first Chicago area public offering of a bank stock in 15 years. Fast forward five months and Herencia’s words translated to action with its announced deal to purchase First Evanston Bancorp, Inc., in a stock and cash transaction deal valued at $169 million. [Continue]

Midcareer professionals gain new education, networking resource

Midcareer bankers have a new and easy way to build their industry knowledge and professional network: BankBeatGroups launches this month, making monthly webinars and periodic live events available to people in the banking industry looking to take their career to the next level.

BankBeatGroups will offer access to subject-matter experts across the spectrum of banking topics. Monthly webinars will be conducted over the lunch hour on the third Thursday of the month, beginning Jan. 18. The first webinar features KC Mathews, UMB Bank executive vice president and chief investment officer. He will offer an overview of the economy. The presentation will last about 20 minutes, with additional time available for dialogue. [Continue]

Commissioner is steadying influence in North Dakota

Editor’s Note: North Dakota Gov. Doug Burgum appointed Lise Kruse as the Department of Financial Institutions’ 26th Commissioner, effective Dec. 1, 2017. Prior to joining the DFI in 2004, Kruse worked for a life insurance company in Fargo, N.D. Kruse has a Bachelor of Arts degree from Concordia College, Moorhead, Minn., with majors in business and organizational communication. In 2003, she obtained a Master of Business Administration degree with an emphasis in information technology from the University of Colorado in Colorado Springs. Kruse is a 2012 graduate of the Graduate School of Banking at Colorado, Boulder.

Lise Kruse
Q: With seven years of experience as an examiner and then seven more as North Dakota’s chief examiner, how has your time in the DFI already prepared you for this new position?

Kruse: If I wouldn’t have had that experience, I don’t think I would have gone for this. I know the industry, I know the bankers and what is important to them. … [Continue]

A post-crisis view: Don’t let prosperity cause complacency

Similar to 2005 when I started at the FDIC, the U.S. economy is experiencing a period of prosperity. Growth in real GDP has averaged 2.2 percent in this expansion, and was right around 3 percent in the second and third quarters of 2017. Our stock market has reached new highs and real estate prices have been rising. Global economic growth appears to be picking up, with the IMF raising its growth forecasts for Japan, China and Europe. [Continue]