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NEBRASKA

INDEPENDENT BANKER

Official publication of the Nebraska Independent Community Bankers

FALL 2013

65339_Settells_NICB Magazine_r1.qxp_Layout 1 10/25/13 11:47 AM

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2012 - 14 Officers & Directors

Chairman – Jon SchmadererTri-County Bank, Stuart 402-924-3861

Chairman Elect – Korey SchowBank of Keystone 308-726-2171

Vice Chairman – Chris TwibellBrunswick State Bank 402-842-2435

President/CEO – Kurt T. YostNICB, Lincoln 402-474-4662

Secretary – Mark HesserPinnacle Bank, Omaha 402-697-5991

Treasurer –Arnold LowellCerescoBank, Ceresco 402-665-3431

Immed. Past Chairman – Scott Selko*Bank of Mead 402-624-2255

Bill Anderson*First State Bank, Hordville 402-757-3231

Mark BarattaFirst National Bank, Omaha 402-602-3512

Brad ClarkFirst Nebraska Bank, Weeping Water 402-267-6355

Don Eberly*Stanton State Bank 402-439-2164

Kirk EnevoldsenThe Potter State Bank of Potter 308-879-4451

Nadine HagedornCitizens State Bank, West Point 402-372-1998

Greg Hohl*Wahoo State Bank 402-443-3207

Chad JohnstonFarmers State Bank, Maywood 308-362-4226

Patrick KennerThayer County Bank, Hebron 402-768-6027

Lance MarshallElkhorn Valley Bank, Norfolk 402-371-0722

Cameron MathisThe Tilden Bank, Creighton 402-358-3726

William L. McQuillan*First National Bank-Ord, Greeley 308-428-3925

John Nelsen*FirsTier Bank, Holdrege 308-995-9595

David Norton*First State Bank Nebraska, Filley 402-662-3555

David A. OchsnerCommercial Bank, Nelson 402-225-3381

Paul StanosheckState Bank of Odell 402-766-3720

David SteffensmeierFirst Community Bank, Beemer 402-528-3223

Allen ThorbergPetersburg State Bank 402-386-5297

Joel WiensFirsTier Bank, Kimball 308-673-5251

*denotes Past Chairman

Nebraska Independent Banker Magazine FALL 2013

2 Management Conference Schedule

November 13-15, 2013

3 Guest Editorial

Max WakeDirector, Federal Reserve Bank – Kansas City

5 From the Top

Bill LovingICBA Chairman

7 Member FeaturePotter State Bank

10 Insurance

Diana PoquetteUNICO Group

11 Employment LawJack L. Shultz and Robert B. TruheHarding & Shultz

14 Registration Form for Conference

15 Educational Training

17 Resource Guide

Featured on the cover The Potter State Bank (left to right) Brothers: Jett, Hal, and Kirk Enevoldsen(front) Jane Enevoldsen (Vice President/Operations/Kirk’s wife)photos on the wall are of parents & grandparents

Nebraska IndependentCommunity Bankers1320 Lincoln Mall, Suite 100PO Box 83073Lincoln, NE 68501-3073phone 402.474.4662www.nicbonline.comemail: [email protected]

Editor/PublisherKurt T. Yost

Address changes send to:[email protected] postal box listed Advertising Requests/Articles to:tracy@nicbonline

Nebraska Independent Banker Magazine Page 1


WEDNESDAY, NOVEMBER 13, 2013

6:30 pm-8:30 pm Kick-Off ReceptionPinnacle Bank Arena

THURSDAY, NOVEMBER 14, 2013

8:30 am-10:30 am Exhibitor Set-Up

10:00 am Conference Tip-OffTim MilesHead Coach, Men’s BasketballUniversity of Nebraska

11:00 am Speed Exhibiting

12:00 Noon Lunch with Exhibitors

1:30 pm Legal Update Slam DunkJohn Guthery, AttorneyPerry, Guthery Hasse &Gessford PC LLO

2:45 pm “Cyber Security Regulator Expectations”Denise Mainquist CISA,CPHITITPAC Consulting LLC

4:00 pm How to the Stay in the GameMortgage Compliance 2014Donna Clayton, Sr. Vice PresidentCompliance & Risk ManagementLenderLive

5:00 pm-7:30 pm Half-Time Reception

7:30 pm Evening Open

FRIDAY, NOVEMBER 15, 2013

9:30 am-10:45 am Winning With Analytics - What Banks Can Learn from Moneyball

Ted Triplett, Chief Marketing OfficerInsight Ecosystems

10:00 am-3:00 pm Spouse/Guest Program“Tournament of Shopping”

Spouses will start the day at a trunk showfrom an LA Designer who is originally fromNebraska followed by lunch and stops atsome of our local boutiques.

11:00 am ICBA UpdateJohn Buhrmaster, ICBA Chair-ElectFirst National Bank, Scotia, NY

11:30 am Annual NICB Membership MeetingJon Schmaderer, NICB ChairmanTri-County Bank, Stuart, NE

Noon-2:00 pm Federal Reserve Update

Esther George, PresidentFederal Reserve Bank Kansas City

2:30 pm-4:00 pm NICB Directors Meeting

6:30 pm-7:00 pm Receptionsponsored by –First National Bank, Omaha

7:00 pm-9:00 pm Chairman’s Banquet Jon & Jennifer SchmadererNICB Chairman

8:00 pm U.S. Senator Deb FischerGuest Speaker

8:30 pm Heads & Tails Game

We conclude the NICB “Game On” Conference

with a challenging twist to “Heads or Tails.”

Purchase your game card during the banquet ata chance to win cash. Proceeds will go to theNICB PAC.

Nebraska Independent Community BankersAnnual Management Conference & Trade Show

November 13-15, 2013SCHEDULE

GAME ONPage 2 Nebraska Independent Banker Magazine



GUEST ED ITORIAL

Idid not fully understand the role of Federal Reserve

Bank directors until I served, so it is my hope that this

will help describe the role in some detail. The Federal

Reserve System is unique among our nation’s institutions in

that it represents a balance of public and private interests. The

12 individual Reserve Banks across the country are quasi-

governmental with boards of directors that act in an oversight

capacity, while the Board of Governors in Washington, D.C.,

is a governmental body. This creates a system of checks and

balances and also provides a broad base of input on national

policy.

The authority of a Reserve Bank’s board of directors is

established in the Federal Reserve Act. In particular, the act

provides that the Reserve Bank “shall be conducted under the

supervision and control of a board of directors” and that

directors “shall perform the duties usually appertaining to the

office of directors of banking associations and all such duties

as are prescribed by law.”

As a director of the Federal Reserve Bank of Kansas City, I

am one of nine individuals who provides a Main Street

perspective to the decisions of the nation’s central bank and

who also oversees the operations of the Bank. Serving as a

Fed director is a responsibility I take seriously as a

community banker.

The Kansas City Fed, along

with its Branch offices in

Denver, Oklahoma City, and

Omaha, is responsible for

Federal Reserve activities in

the Tenth District. This is a

large and diverse area that

includes western Missouri,

Kansas, Nebraska, Okla-

homa, Colorado, Wyoming

and northern New Mexico.

The Kansas City Fed

supports the Federal Reserve’s three mission areas:

conducting monetary policy, providing financial services

such as cash and payments processing to depository

institutions, and supervising state member banks, bank

holding companies and thrift holding companies located in

its district.

I was elected to a three-year term as a director of the Kansas

City Fed in late 2011 by banks that are members of the

Federal Reserve System. As a Class

A director, I am one of three

bankers on the board who serves in

such a role. Each Class A director is

elected by a group of banks in the

district that represent large, medium

and small member banks,

respectively. I was elected by

Group 3 member banks, which, at

the time of my election, had a

combined capital and surplus of less

than $3.25 million.

The Kansas City Fed’s Class B and Class C directors

represent the general public. The three Class B directors are

elected by member banks but cannot be bankers or hold stock

in a bank, while the three Class C directors are non-bankers

who are appointed by the Federal Reserve’s Board of

Governors in Washington, D.C. This structure is repeated in

the 12 regional Reserve Banks located across the country, and

each Bank’s board consists of business and community

leaders who are able to provide a wide range of perspectives

on the issues facing the Fed today.

Our nine-person board in Kansas City typically meets

monthly at the Kansas City Fed’s headquarters. Board

members are tasked with ensuring the Bank is well run and

providing real-time information on current economic

conditions. During meetings, directors are asked to draw on

their own judgment, experience, and expertise, and to serve

as a sounding board and a source of guidance for Bank

management on operational and budget matters.

In addition to oversight, directors provide real-time economic

intelligence and insight into conditions in our respective

regions and sectors, including consumer spending, labor,

banking, agriculture and other businesses. The Bank’s

president, Esther George, uses the information we provide as

she considers options for monetary policy at the regular

meetings of the Federal Open Market Committee in

Washington, D.C. In addition to discussing current

conditions, another important responsibility, required by law,

is establishing the Bank’s discount rate, which is the rate

institutions must pay on loans from the Fed. We recommend

this rate be set at a specific level, but the Board of Governors

is ultimately responsible for setting the final rate after hearing

from the boards of each of the 12 Reserve Banks.

Max Wake

Observations from the Tenth District


During the most recent financial crisis, I was often asked if

bankers who serve as directors are conflicted because of the

Fed’s role in regulating financial institutions. I should note

that while I am a banker and provide oversight to the Kansas

City Fed on issues involving their budget and operations, by

law, I am completely separated from any decisions about the

Fed’s supervisory responsibilities. There is a long-established

and respected firewall between the Bank’s supervision

responsibilities and my work as a director, and this division

is something I respect.

Another important legal

separation of duties is the Bank’s

independent audit function, which

reports directly to the Reserve

Bank’s Board of Directors. I

currently serve as chair of the

Bank’s Audit Committee. In this

role, I ensure the integrity of the

Reserve Bank’s financial

statements, evaluate the

independent auditor, assess the

effectiveness and independence of

the Reserve Bank’s internal audit

function, and ensure the Reserve

Bank’s compliance with its Code

of Conduct, and risk management policies and practices.

As audit chair, I meet annually with other Reserve Bank audit

chairs and leadership at the Board of Governors to discuss

current issues related to the work of the Reserve Banks. The

composition of the Reserve Bank Boards and the role

directors serve is a critical part of the system of checks and

balances that we rely on for our most important institutions

in the country.

My service as a director has shaped my thinking about the

important need for bankers, business and community leaders

to protect the structure and governance of the Federal Reserve

System. Without this unique, decentralized structure, regions

across America would not have the proper mechanisms in

place to ensure appropriate access and involvement in

national policy deliberations.

The Federal Reserve faces many important issues as the

economy continues in its recovery. Of particular interest and

importance is the issue of leadership at the Fed. Beyond the

chairman’s seat, currently held by Ben Bernanke, there is a

larger leadership transition occurring as a number of seats on

the Board of Governors are open, or are expected to be open.

Section 10 of the Federal Reserve Act requires that, in regard

to members of the Board, not more than one of whom shall

be selected from any one Federal Reserve district, the

president’s selections “shall have due regard to a fair

representation of the financial, agricultural, industrial, and

commercial interests, and geographical divisions of the

country.” The majority of current governors largely represent

areas east of the Mississippi and most were previously

involved in academics or served at other government

agencies.

As the issue of filling vacancies on the Board of Governors

is considered, I believe diverse geographic and industry

representation must be a priority. Of particular interest to me

is having a leader with expertise in community banking. One

of the seats that recently became vacant was held by a

governor who had experience as a community banker, and

another soon-to-be vacancy was held by someone who

previously served as a community bank supervisor. These

departures have left a gap in how community banks are

represented in decisions that affect us directly.

It’s important that community bankers continue to be

represented in the Federal Reserve System, which was

designed to include the input of numerous institutions,

regardless of their size and

geographic location. Esther

George said it well when she

told the publication Bank

News recently that “It is vital

that the Federal Reserve

continues to maintain its

connection to community

banks, which play a key role in our economy.” She added that

“it will be important to fill this gap [on the Board of

Governors] with experienced and knowledgeable individuals

who can bring perspective to the issues faced by the entire

range of financial institutions in this country.”

Regional and community banks serve local markets, and in

turn, support local economic growth. As a community banker,

I value the opportunity to connect my community to the

central bank of the United States through a structure that

appropriately balances the power of one of our most

important institutions.

Max WakeDirector, Federal Reserve Bank of Kansas CityPresident, Jones National Bank, Seward, NE

402-643-3602

Editors Note: Editors Note: Federal Reserve Bank President Esther George will

be our Noon speaker on Friday, November 15, at our upcoming

conference. We invite Members and Non-members to attend the

conference or register for the just the luncheon.

Page 4 Nebraska Independent Banker Magazine

There is a long-

established and

respected firewall

between the Bank’s

supervision

responsibilities and

my work as a director,

and this division is

something I respect.

Esther George, President



FROM THE TOP

Facts Stacked Against TBTF

In my travels, I’ve confirmed that regardless of where you

live, the lifeblood of each and every community is its

community banker and his or her desire to make their

community a better place to live and work. This means that,

as community bankers, we want to stand up for what is right,

and we determine what is right based on a host of criteria—

core values, beliefs, facts, common sense, morals and a

higher purpose. Our conscience is with our community, plain

and simple.

Community bankers by their very nature are evaluators,

taking in all perspectives of a situation to come to a final

conclusion. That’s how we make loans. We look at the facts

surrounding the request and determine if a loan makes sense

for us and the borrower. We don’t simply rely on a formula.

This same strategy is employed when we are analyzing

important policy issues, such as too-big-to-fail.

That’s why I am dismayed when others say that my fury

against too-big-to-fail simply comes out of emotion—nothing

could be further from the truth. Community bankers’ plates

are full, and mine is no exception, so I don’t have time to

simply get emotional over a topic. I need clear and hard facts

to help me determine if it’s a case worth fighting for. And

guess what—it is!

So here are some facts for anyone out there who might want

to know more about how ending too-big-to-fail will support

free markets

and help our

economy. I en-

courage you to

share these

facts with

members of

Congress, your

regulators and

the media so

you can con-

tinue to

e n l i g h t e n

stakeholders

and average

citizens about

how too-big-

to-fail affects

them and their

c o m m u n i t y.

• Too-big-to-fail distorts free

markets, incentivizes risky

behavior, leaves taxpayers on

the hook for bailouts and creates

unfair competitive advantages

for the largest banks.

• Many studies show that too-big-

to-fail financial firms do enjoy a

funding advantage over the

smaller institutions that do not

have a government guarantee against failure. Both a

study by two economists at the International Monetary

Fund and a Bloomberg View analysis estimated their

funding subsidy at approximately $83 billion a year. To

bring the point closer home, the competitive advantage

has been estimated at 20 to 80 basis points by another

study. That’s clearly an advantage.

• FDIC data show that while megabanks have the lowest

credit quality in the banking industry, they also have the

lowest cost of funding.

• Large or interconnected institutions are too-big-to-

prosecute for fear of destabilizing the economy, and their

executives are too-big-to-jail. The very firms that have

inflicted the most abuse on consumers and the most

damage to our financial system and economy are

effectively immune from being held responsible for their

actions.

• But there is perhaps no greater reminder of the too-big-

to-fail impact than the constant, oppressive regulatory

burdens that community banks face on a daily basis.

For more facts and clarity, I encourage everyone to read the

ICBA study on ending too-big-to-fail. You can find it at

www.icba.org/tbtf.

With all of these facts stacked against too-big-to-fail, it’s hard

for anyone not to see the clear direction we must take for the

sake of our economy and the communities we proudly serve.

William A. Loving, Jr., ICBA Chairman

[email protected]

Bill Loving


Nebraska Independent Banker Magazine

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M E M B E R F E AT U R E

President Kirk Enevoldsen

Exec Vice President/ Jett Enevoldsen (brother)

Cashier

Vice President/IT Officer/ Hal Enevoldsen (brother)

Landscape Architect

Exec Vice President Jo Kinsey (sister)

Director, Retail Banking

Country Club Bank, Kansas City

Vice President/Operation Jane Enevoldsen (Kirk’s wife)

Established 1908

Branch Kimball

Community size 400

Employees 9 full time / 1 part time

Asset Size $35 Million


Observations from the Editor:

When you pull into Potter, population 400, some 18

miles West of Sidney on I-80 and Highway 30, the

first thing you notice is how tidy main street sits.

The Enevoldsen family and the pride they take in

their community is evident everywhere you look.

There are no empty buildings and all are well kept,

with main street featuring an outdoor reading

gazebo in a small park adjacent to the library. The

“Tin Roof” sundae found at the local ice cream

parlor across from the bank capped off a great visit.

We salute the Enevoldsen family and their 105

years of service to the Western Nebraska

community of Potter.

Potter State Bank



Kirk, where did you grow up and how long have you been

in banking?

(In banking) 40

years – started

in Junior High

as a teller/

bookkeeper

running a

posting machine

and filing

checks.

Grew up in

Potter then went

to Hastings

College for four

years.

What other family members are involved in the bank?

Almost everyone in my family is in banking in one form or

another – except my youngest son, Jade, who is a pharmacist

in Salt Lake City. My son, Joey, works for FiServe in Lincoln.

My oldest son, Joshua, moved back to Kimball from a bank

in Cheyenne, WY to manage our Kimball branch along with

my nephew, Drew, who is (brother) Hal’s oldest son.

What Service or

Product are you

offering to stay

competitive?

Debit cards, Online

banking and bill pay.

How do you meet

the educational

needs of your

Directors and

Employees?

NICB webinars, Conferences, educational events and other

bank seminars.

What are you offering your customers in the form of

technology?

Online banking

Are you looking at any new Technology products to offer?

Mobile banking

What’s your biggest challenge in the area of Internet

Banking and/or Technology Compliance?

Providing a totally secure banking environment while cyber

crime seems to be on the rise

How is your bank addressing Succession and Strategic

Planning?

We’re hoping we can continue to attract our children back to

the area. A couple have indicated interest.

Does the bank do a Customer Appreciation Event?

We host a customer appreciation day in December of each

year.

Besides Banking what are your other Interests?

Boating, Music, Gardening, Community Development and

spoiling the grandchildren.

If you could have lunch with someone connected to

banking who would it be and what would you discuss?

I’d take a step back in time and have lunch with my Dad and

Kirk Enevoldsen, President

Jett Enevoldsen, EVP


Grandfather (both are now deceased) and I’d first thank them

for the awesome opportunity they provided us at the bank in

Potter. I’d also thank them for a great job of counseling our

customers through the years. We are really blessed with a

financially solid customer base. It’s made my job here easy.

Finally we’d spend some time talking about the good old

days in banking, before Dodd/Frank and the rest of the

compliance legislation over the last 25 years.

If you weren’t a Community Banker what would you be

doing?

In my dreams and

assuming I had the

talent I would be

playing my trum-

pet in a band with

my sister who also

enjoys music; or I

would be land-

scaping with my

brother Hal; or I

would be coaching

basketball some-

where with my

brother Jett. (In my

dreams this brother duo would be hugely successful.)

Finally, if I wasn’t a “community banker” that would mean

I would actually have some extra time on my hands and my

real dream would be to travel to some distant and exotic

places with my beautiful wife, Jane!!


Jane Enevoldsen, VP/Operations

In 2002 Independent Community Bankersof America (ICBA) presented The PotterState Bank with ICBA’s NationalCommunity Service Award.

The Potter State Bank was selected as thegrand-national winner of ICBA NationalCommunity Bank Service Award amongseveral other community banks across thenation.

The bank received the award for their callto service in the 1990s by sponsoring aseminar that showcased the “Survival ofSmall Towns in Rural America,” and fromthat one meeting, the Potter CommunityDevelopment Group was born. The groupwas challenged with losing Potter’s residentsto bigger cities nearby that had moreservices to offer. Not only for the youngergeneration but the senior citizenspopulation was moving for the medicalfacilities.

A medical clinic was established inside anold fire station, the bank raised money andrecruited volunteers to staff it.

The medical clinic was the start and nowthe town of Potter also has a nine-hole golfcourse and 2,000 trees were planted toshade the city.

“Our main focus is to make sure that Potterstays a vibrant town. Unless you develop apride in your community, disrepair canhappen quicker than you think,”commented Kirk Enevoldsen in an interviewfollowing receiving the award at the ICBAConvention.


Ahot button issue lately is Regulatory Lawsuits and

whether you have insurance coverage. In recent

months we have read the articles being written

regarding Regulatory Suits. From the Wall Street Journal to

local articles by CPAs and consultants, the topic is getting

more attention – deservedly. The need for broad language in

Directors & Officers Liability Policies should be a concern,

not just for a distressed bank, but also for the healthy

institution. And not just in regard to suits filed by the

regulators. If you haven’t felt the pain of a lawsuit, you may

think this is of no concern to you. However, in a struggling

economy and with the current banking climate, claims under

the Directors & Officers Policy (D&O) and the Financial

Institution Crime Bond are dramatically on the rise. Recently

I filed many different claims with insurance companies in

regard to lawsuits my bank clients received. You may not

have committed a wrongful act, but you will need to defend

yourself.

As an independent agent, all of the companies I represent

provide Regulatory Coverage under the D&O Policy. I want

my bank clients to have this coverage for claims brought by

regulatory or supervisory bodies. If we see more regulatory

actions as a result of Dodd-Frank,

having this coverage excluded will

become even more punitive. If a

bank has a Cease & Desist Order,

it does NOT mean your policy will

be canceled. I have a bank client

that has a C&D and he still has

Regulatory Coverage included in

the D&O Policy. As many of you

know, I was previously a bank

insurance underwriter and I

understand why the concern. In

their defense, the insurance

companies have been hit hard with

bank closings. We see FDIC

lawsuits on the rise. However, the

company underwriters are looking

at each insured bank on its own

merit. If a bank has a Memorandum of Understanding we can

obtain renewal terms without major premium increases or

large retentions. If a bank has a high percentage of

nonperforming loans, it is a concern

to the underwriter. We will then

provide more detail in regard to the

loans. If a particular bank has other

issues as well, including net losses

and the Tier 1 Leverage ratio is

eroding; we may be facing an

increase in deductibles and/or an

increase in premium.

Whether your bank is in a challenging position or you are

enjoying excellent results and profitability, there are other

coverage issues to consider. One of my bank clients had an

unfavorable experience with their previous insurance

company. The lawsuit was entirely handled by the insurance

company’s legal people and the directors felt they were left

in the dark as to how the claim was being handled. The

prudent thing to do is have a discussion about duty of the

Insurer to defend or duty of the Insured to defend in the

policy language. Most companies will provide an option and

the choice is yours. You do not want to be in a position where

a director ends up paying their own legal fees because your

claim was mishandled. It appears that the majority of bankers

would prefer to have their own legal counsel involved from

the first notice of a suit. Some may request the insurance

company legal staff handle the claim entirely or recommend

Page 10 Nebraska Independent Banker Magazine

I N S U R A N C E

Directors’ and Officers’ Liability Policies - Are you really covered?

Diana Poquette

If we seemore

regulatoryactions as a

result ofDodd-Frank,

having thiscoverageexcluded

willbecome

even morepunitive.

If a bank has a Cease & Desist Order, itdoes NOT mean your policy will becanceled.

continued on page 12



EMPLOYMENT LAW

Same-Sex Couples’ RightsAND CHANGES TO FEDERAL LAW: STATE OF…CONFUSION?

On the heels of major United States Supreme Court

decisions this year, many federal agencies like the

Internal Revenue Service (“IRS”) and Department

of Labor (“DOL”) have been addressing the issue of same-

sex couples and their rights and privileges under federal law.

These changes will undoubtedly affect employers of all types,

and as an employer, you may need to act now!

THE STANDARDS AT PLAYTHE STANDARDS AT PLAY

In the arena of state and federal rights for same-sex couples,

there are a few standards which must be discussed and

understood. First is the “state of celebration” standard.

Under this standard, rights of opposite-sex married couples

flow to same-sex married couples so long as they were

“married” in a state which recognizes same-sex marriage. In

these circumstances, the same-sex couple is entitled to certain

rights even if they live in a state like Nebraska which does not

recognize same-sex marriage. This is the standard adopted

by the IRS.

Second is the “state of residence” standard. Under this

standard, a same-sex couple is entitled to the affected federal

rights so long as their state of residence recognizes same-sex

marriage. So, a same-sex couple legally married in

Massachusetts and living in Massachusetts would receive

rights that the same couple would not receive if they moved

to Nebraska after being married in Massachusetts. This is the

standard adopted by the DOL in at least one area of law.

Third, there are other arrangements such as “civil unions”

and “domestic partnerships.” While these are legally

recognized in some instances, such as health insurance

coverage provided by some employers and public

institutions, the major changes from the IRS and DOL

involve “marriage.”

IRS DETERMINATIONSIRS DETERMINATIONS

On August 30, 2013, the IRS issued “Revenue Ruling 2013-

17.” The ruling determined that same-sex couples are deemed

“married” for federal taxation

purposes so long as they were

married in a state that recognizes

same-sex marriage. In other words,

the IRS uses the “state of celebration”

standard for federal tax purposes.

This means a same-sex couple living

in Nebraska but married in

Massachusetts receives the same tax

treatment as a married couple

consisting of a man and a woman.

For example, retirement plans are now required to offer

same-sex couples several of the same spousal benefits that

have been available to all married couples as previously

defined under federal law. A same-sex spouse, for example,

is now the assumed beneficiary unless the other spouse (i.e.

your employee) elects a different beneficiary. If an employer

fails to comply with these new IRS rules, the employer’s

benefit plans may lose advantageous tax treatment.

Many insurance companies already offer the option to enroll

domestic partners and same-sex spouses. Be sure to check

with your benefit providers on other potential changes to your

plan offerings. In addition, if you currently treat health

insurance premiums for opposite-sex married couples

differently than same-sex married couples, you must make a

change. An employer may no longer treat the employer-paid

portion of insurance premiums differently for same-sex

couples.

FAMILY MEDICAL LEAVE ACT (FMLA)FAMILY MEDICAL LEAVE ACT (FMLA)

As a law designed to benefit family members, the FMLA is

also affected by these changes. According to the DOL, it will

use the “state of residence” standard in determining which

same-sex couples receive FMLA protection. Aside from

having to qualify for FMLA leave in the first place, a same-

sex couple must also live in a state which recognizes

same-sex marriage.

Jack Schultz

continued on page 12



Because Nebraska does not recognize same-sex marriage,

Nebraska employers are not legally required to provide

FMLA married status protection to employees in same-sex

marriages, even if the employee got married in a state that

recognizes same-sex marriage. However, employers

should continue to monitor changes in the federal law with

respect to the FMLA. The DOL could change its mind and

follow the IRS rule by using the “state of celebration”

standard instead.

CONCLUSIONCONCLUSION

Employers should not assume that these changes do not

affect them because they live in Nebraska where same-sex

marriage is not legally recognized. The IRS Ruling made

same-sex couples’ tax treatment changes effective on

September 16, 2013. That means you may have to change

some withholding and tax treatment for benefits provided

to same-sex couples even though Nebraska does not

recognize same-sex marriage. In addition to immediate

changes required by the IRS determinations discussed

above, employers should also contact their benefits

providers or third-party administrators and review their

policies and handbooks with respect to these issues.

Jack L. Shultz

Robert B. Truhe

HARDING & SHULTZ, P.C., L.L.O.

Lincoln, NE

402-434-3000

[email protected]

[email protected]

Editor’s Note: This article is not intended to provide legal advice

to our readers. Rather, this article is intended to alert our readers

to new and developing issues and to provide some common

sense answers to complex legal questions. Readers are urged to

consult their own legal counsel or the author of this article if the

reader wishes to obtain a specific legal opinion regarding how

these legal standards may apply to their particular circumstances.

The authors of this article, Jack L. Shultz and Robert B. Truhe,

can be contacted at 402/434-3000, or at Harding & Shultz, P.C.,

L.L.O., P.O. Box 82028, Lincoln, NE 68501-2028,

[email protected] or [email protected]. The authors

of this article, Jack L. Shultz and Robert B. Truhe, can be

contacted at 402/434-3000, or at Harding & Shultz, P.C., L.L.O.,

P.O. Box 82028, Lincoln, NE 68501-2028,

[email protected] or [email protected].

Same-Sex Couples’ Rights, continued

a law firm. This might be the case in regard to Employment

Practices Liability claims since the companies employ

specialists who handle these types of suits on a daily basis. If

you choose Insured’s Duty to Defend, you do not have to

wait until final adjudication to be reimbursed for your legal

expenses. It has been my experience, the companies move

quickly on a claims notice.

Another topic to discuss with your agent is Bankers

Professional Liability as part of your D&O Policy. Do you

have coverage for officers and employees providing services

to your customers? Would the policy respond to a suit naming

the bank itself along with individuals performing that

service? My question to you would then be – why would

you not want this? So many banks today are providing other

services such as insurance, brokerage, title services,

investment advisors, tax preparation, wire transfers, etc. And

not all insurance policies include Professional Liability.

I have written about this before and I can’t stress the

importance enough regarding this coverage – Broad Form

Entity for the bank itself. When Directors’ & Officers’

Policies were written back in the ’60s the purpose was to

defend the individual D’s and O’s. In today’s world the entire

board, holding company, and bank can be named in a lawsuit.

And I have seen multiple suits where just the bank is named

as the sole defendant. The allegations can consist of many

different types of wrongful acts. Just because the policy

declarations page names the holding company, doesn’t mean

it is actually covered. If you look closely at the policy

language it may just state the directors and officers of the

entity are covered. The Insuring Agreements should include

Directors and Officers Individual Coverage, Company

Indemnification Coverage, AND Company Liability

Coverage.

Diana Poquette

Financial Institution Specialist

UNICO Group, Inc.

402-499-1011

[email protected]

Directors’ and Officers’ Liability Policies, continued


Nebraska Independent Community Bankers

Annual Management Conference & Trade Show


GAME ON



MAIL OR REGISTER ONLINEBEFORE NOVEMBER 1

NICBPO Box 83073Lincoln NE 68501-3073 E-mail: [email protected] www.nicbonline.com

check payable to:Nebr. Independent Community Bankers

First Registrant Name (for name badge) Title E-mail

Spouse Name (for name badge) Bank Title - if any E-mail or Postal Addressfor Spouse’s Program Information

Additional Registrant Name (for name badge) Title E-Mail

Additional Spouse Name (for name badge) E-mail or Postal Addressfor Spouse’s Program Information

Bank/Company

Address City/State/Zip


November 13 - 15, 2013

IRS NOTICE: The IRS requires a notice on all registration forms, which informs theattendee of the amount of the registration fee representing food and beverage. Weestimate the food cost portion for a full registrant fee is $234.70. Consult your taxprofessional for any tax advice.SPECIAL NEEDS: persons with disabilities who plan to attend these meetings andwho may need auxiliary aids or services please contact NICB so arrangements canbe made. CANCELLATION POLICY: If received 7 business days before the conference fullrefund; Less than 7 days, partial refunds are considered.QUESTIONS? Contact NICB 402-474-4662 or [email protected]

FULL REGISTRANT FEESFee includes all conference functions, receptions on Wednesday/Thursday, and Friday Banquet

Rate For Meal Count # Attending Banquet

First Full Registrant ______@ $295 = $

Each Additional Registrant same Bank/Company ______@ $225 = $

Spouse/Guest of Registrant ______@ $225 = $

Non Member of NICB ______@ $400 = $

Member who has not attended in the last 5 years ______@ $230 = $

Total Full Registrant Fees = $

PARTIAL REGISTRATION FEESNICB Member

RateNon Member

Rate Totals

Wed. Nov. 13 Kick Off Reception at Pinnacle Bank Arena ____@ $ 40 ____@ $ 75

Thurs. Nov. 14 Opening & Educational Sessions, Lunch, Reception ____@ $ 150 ____@ $ 200Trade Show Events Only - Thurs, Nov. 14, incl. Lunch/Reception ____@ $ 125 ____@ $ 200Thurs. Nov. 14 Reception Only ____@ $ 15 ____@ $ 40

Fri. Nov. 15 General Sessions, Lunch ____@ $ 175 ____@ $ 275Spouse/Guest Program “Tournament of Shopping” Fri. Nov. 15 ____@ $ 20 ____@ $ 40

Fri. Nov. 15 Lunch only ____@ $ 30 ____@ $ 50

Chairman’s Banquet on Friday Nov. 15 ____@ $ 65 ____@ $ 75

Total Partial Registration Fees





EDUCATION

AUDITING & ACCOUNTING

8/27 Tax & Accounting Strategies for Health Care Reform

10/10 Recent Accounting Developments & a Look Ahead

11/26 Form 1099 Reporting: Third-Party Vendors, Foreclosures,Debt Forgiveness & More

12/17 12 Steps to Effective Expense Control: Practical Techniquesfor Cutting Costs & Increasing Profits

SECURITy & FRAUD9/24 Security Officer Reports to the Board: Fulfilling Your Annual

Requirement

LENDING6/10 GFE & HUD 1: Current Issues, Current Challenges

6/13 Call Report Preparation: RC-R Risk-Based Capital

6/19 Regulator Issues & Update for the Credit Analyst

6/20 Ability to Repay Part 1 - New Rules that Impact Your Policies& Products: deadline Jan 10, 2014

6/26 Pricing Consumer & Commercial Loans for Profitability

6/27 Bank Opportunities with Small Businesses: GrowingDeposits, Loans & Fee Income

7/2 Using the APRWin Calculator Effectively to Avoid & CorrectViolations

7/19 New Appraisal Requirements for Consumer Access & Higher-Priced Mortgages: deadline Jan 18, 2014

7/23 Determining Cash Flow from C Corporation Tax Returns &Financial Statements

7/25 Business Writing Boot Camp, Including Submission & Critiqueof Your Own Writing Sample

8/2 Ability to Repay Part 2 - What Your Lending Staff Needs toDo to Comply

8/13 Home Equity/Second Lien Risk Management

8/14 Interagency Appraisal & Evaluation Guidelines: incl newrequirements effect Jan 18, 2014

8/15 Call Report Preparation: RC-C & Related Lending Schedules

9/4 Protecting the SBA Guarantee Start to Finish

9/5 CFPB Examination Procedures for Mortgage Loan Originators

9/12 From Prospect to Customer: Skills & Tools for SuccessfulBusiness Development

9/25 Underwriting Basics: Interviewing, Credit Reports, DebtRatios & Regulation B

9/26 Advanced Commercial Loan Documentation

10/2 Handling Customer Credit Report Disputes

10/8 Debt Service Coverage Calculations in Underwriting

10/16 Critical Risk Factors in Loan Portfolio Management

10/17 New CFPB Mortgage Servicing Rules effect. Jan 10, 2014

10/22 Dealing with Adverse Action: What to Do & When to Do It

10/24 Perfection of Security Interest in Non-Real Estate Collateral& Proper Foreclosure Procedures After Default

10/31 HMDA Solutions: Achieving Data Integrity for Effective FairLending Analysis

11/13 Commercial Loan Annual Credit Review

11/15 25 Most Important Things to Know about the NewMortgage Loan Origination Rule Changes Before 1-10-14

11/19 What You Need to Know about Guarantors, Co-Signers,Personal Guarantees & Joint Applications

11/22 5 Definitions of a Qualified Mortgage under CFPBRules effec. Jan. 10, 2014 incl. Sept 2013 rule changes

11/25 New CFPB Mortgage Servicing Rules effect Jan 10, 2014

12/4 Introduction to Call Reports

12/6 SBA Lending Update: Revised SOP 50 10 5(F):effective Jan. 1, 2014

IRA8/21 Managing IRA Beneficiary Designations & Distributions12/11 Handling IRA Required Minimum Distributions & Roth

Distributions

INFORMATION TECHNOLOGy7/9 Internet Fraud Claims: Who is Liable?

8/8 Compliance in Websites, Mobile Banking & Social Media

8/29 FFIEC Guidance on IT Security Awareness: Employee,Customer & Community Programs

continued

Register for the LIVE Webinar or Archived Link. All Webinars listed are available as an ARCHIVED Link which includes a free

CD Rom, for up to 6 months from the Live date listed. For complete descriptions about the webinar go to our website

www.nicbonline.com click on Education & Training then Webinars. Upcoming and Previous webinars are listed. You can also call

NICB to receive brochure copy by email or postal mail.

Recently

added

webinars in B

old



10/29 Technology Strategies & Compliance Series: AdvancedFacebook Strategies for Community Banks

11/7 Mobile Payments for Community Banks: Impacts, Choices &What to Do Next

12/12 Documenting Your Required Information Security Program

HUMAN RESOURCES11/21 Fair Labor Standards Act: Dos & Don’ts of Exempt & Non

Exempt Pay Issues

COLLECTIONS 6/6 Real Estate Loan Workouts, Foreclosures, Short Sales &

Deficiency Judgments

6/11 Collecting Decedents’ Accounts

8/20 Modifications, Workouts & Rescue Options: Working withTroubled Customers

10/3 Advanced Bankruptcy Issues

12/5 Avoiding Liability in the Collection Process

COMPLIANCE6/4 Compliance Rules Lenders Must Know

7/30 Compliance Rules All Staff Must Know: Red Flags for IDTheft, Bribery & Privacy

8/7 BSA Compliance Hotspots: From Regulators, Litigation, Policies & Procedures

9/9 Trust Operations: Overview, Compliance & Examiner Issues

9/17 Compliance Rules Deposit Operations Must Know

11/20 Simplifying the Compliance Function: Tools, Checklists & Reporting to Keep You on Track

12/3 A Fresh Look at Robbery Preparedness

DIRECTORS

7/10 Duties of the Board Secretary: Fundamentals, Best Practices

& E-Package Delivery

7/16 Directors & Enterprise Risk Management

8/22 Recognizing Red Flags in Board Reports

9/10 Technology “Crash Course” for Directors

11/14 Documenting Your Strategic Plan Years 1, 3 & 5: MeetingExaminer Expectations

FRONTLINE & NEW ACCOUNTS

6/18 Accepting Powers-of-Attorney on Deposit Accounts

6/25 Detecting Counterfeit Items & Fraudulent ID for the Frontline

7/24 Your Depositor Has Died: Actions to Take, Mistakes to Avoid

11/5 Business Signature Cards & Resolutions: Entities, Authority &Documentation

12/10 Compliance Update on Nonresident Alien Accounts

SENIOR MANAGEMENT

6/5 Investment Due Diligence: The New Banking Requirements

7/26 Basel III Final Rule: Impact on Community Banks Effect. Jan. 1,2014

7/31 Assessing E-Banking Services & Delivery Channels: StrategicDeployment & Risk Assessment

8/6 Mergers & Acquisitions are Back: Don’t Miss Your NextOpportunity

9/19 The Future of Branch Banking: The New Definition ofConvenience

OPERATIONS6/21 Complying with the Final Rule for Garnishment Procedures

Involving Federal Benefit Payments: Effect 6/28/13

7/11 RDFIs & ACH Healthcare Payments: Is Your Bank Preparedfor the Sept 20 Deadline?

7/18 IAT Suspect Transactions: What’s an RDFI to Do?

8/12 Reg E: Complying with the Final 1073 InternationalRemittance Rule: deadline Oct 28, 2013

9/18 Garnishment Rules: Including Accounts Receiving FederalBenefit Payments

11/6 FDIC Records & Related Email Retention Rules

12/19 Regulation E Versus ACH Rules: Which One Prevails?

Most webinars are scheduled from 2:00-3:30 PM

Central Time unless otherwise indicated.

TO REGISTER Call NICB 402.474.4662 or Online

at www.nicbonline.com/registration-form.htm no

credit card needed, NICB will bill institution.


Accounting

BKD, LLP ............................402-473-7600

Hocking & Reid, LLC...........402-441-0140

John Cederberg, CPA .........402-475-8155

Labenz & Associates...........402-437-8383

McDermott & Miller, PC

Grand Island ................308-382-7850

Hastings .......................402-462-4154

Kearney........................308-234-5565

Omaha .........................402-391-1207

MIB Banc Services, LLC .....888-818-7206

Appraisers

Ritchie Bros Auctioneers .....402-709-6903

Taylor and Martin.................402-941-1072

Architects

Kirk Gross Co. .....................319-234-6641

Attorneys

Baird Holm LLP...................402-334-0500

Perry Guthery Haase Gessford PC LLO

.....................................402-476-9200

Woods & Aitken LLP ...........402-437-8500

Card Services

ICBA Bancard/TCM ...........800-242-4770

NETS, Inc............................800-735-6833

PowerPay, Inc. ....................402-850-0989

SHAZAM .............................515-288-2828

Checks

Harland Clarke...................800-382-0818

Collections

Credit Management

Services, Inc........................308-382-3000

Consulting

ITPAC Consulting LLC ........402-420-1556

John Cederberg, CPA .........402-475-8155

Ritchie Bros. Auctioneers ........402-709-6903

WRK Systems, Inc. .............402-592-8999

Core Processing

CSI .....................................800-545-4274

IBT ......................................512-616-1115

Modern Banking Systems.......402-592-5500

Correspondent Banks

Bankers’ Bank of the West ......888-467-5544

Federal Reserve Bank ........800-257-6701

FHLBank Topeka.................402-399-2002

First National Bank, Omaha.....800-642-9907

Midwest Independent Bank .402-476-1131

UMB Bank, NA ....................800-821-2171

United Bankers’ Bank..........402-932-3329

US Bank, NA.......................402-434-1285

Crop/Mult-Peril

UNICO Group.....................800-755-0048

Document Imaging

Modern Banking Systems.......402-592-5500

Education

ICBA Online .......................800-422-7285

Electronic Banking

NETS, Inc............................800-735-6833

PowerPay Inc. .....................402-850-0989

SHAZAM .............................515-288-2828

Electronic Liens-Software

Decision Dynamics..............803-808-0117

Employee Benefits/Plans

Bank Financial Services Group

.....................................800-931-7782

Equias Alliance LLC ............913-433-8645

First National Life of the USA

Lincoln..........................402-483-1776

Equipment/Office Supplies

Eakes Office Plus................888-329-1344

Money Handling Machines......402-571-5577

SPC.....................................402-397-8890

Equipment Auctioneers

Ritchie Bros. Auctioneers ........402-709-6903

Fee Income

ICBA Services Network ............800-422-8439

Financial Products/Services

Bank Financial Services Group

.....................................800-931-7782

Federated Investors ............800-245-5000

Furniture

Eakes Office Plus................888-329-1344

Identity Theft

Spectrum Financial Services

.....................................402-993-4699

Information Security/Technology

Infogressive.........................402-261-0123

ITPAC Consulting LLC ........402-420-1556

SPC.....................................402-397-8890

WRK Systems, Inc ..............402-592-8999

Insurance

First National Life of the USA

.....................................402-483-1776

Kansas Bankers Surety.......785-228-0000

Spectrum Financial Services ...402-933-4699

Travelers Companies, Inc. ....651-310-5112

UNICO.................................800-755-0048

Investments/Brokerage

Ameritas Investment ............800-355-1314

D A Davidson

Lincoln..........................402-420-8201

Omaha .........................800-268-6451

Federated Investors ............412-288-6501

FHLBank Topeka.................402-399-2002

First National Capital Markets

.....................................800-989-2999

RBC Wealth Management ......402-465-3833

ICBA Securities .................800-422-6442

UMB Bank, NA ....................800-821-2171

United Bankers’ Bank..........402-933-1644

Wells Fargo Securities

.....................................800-228-9225

Loan Origination/Mortgage Lending

ICBA Mortgage ....................877-516-8665

National Affiliate

ICBA ...................................800-422-8439

Recovery ServiceDouble Eagle Collateral ......402-571-9726

Credit Management Srv ......308-382-3000

Website Development/Hosting

ProfitStars ..........................615-250-2111


MEMBER RESOURCE GUIDE


Nebraska Independent Community BankersPO Box 83073Lincoln NE 68501-3073

CHANGE SERVICE REQUESTED

PRESORT STANDARDU.S. POSTAGE

PAIDLINCOLN, NE

PERMIT NO 1147


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