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NEBRASKA

INDEPENDENT BANKER

WINTER 2014

Official publication of the Nebraska Independent Community Bankers

NICB BOARD OF DIRECTORS

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2014 Officers & Directors

Chairman – Jon SchmadererThe Tri-County Bank, Stuart 402-924-3861

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

Vice Chairman – Chris TwilbellBrunswick 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 AndersonFirst 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 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

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

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

David 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 WINTER 2014

3 Chairman’s Message

Jon Schmaderer, NICB ChairmanPresident/CFO, The Tri-County Bank, Stuart

5 Letter to the Editor

Sid Dinsdale, Chairman, Pinnacle BankCandidate for U.S. Senate

6 ICBA “Fine Points”

Cam Fine, President/CEO

7 Editorial Feature

Jeff Buettner, Public Relations CoordinatorCentral Nebraska Public Power District

10 Snapshots

2013 Management Conference & Trade Show

12 Insurance

Joe Reynolds, ID Theft Product ManagerTravelers

Featured on the cover – NICB Board of DirectorsFront row, left-right: Dave Norton (Filley), Chad Johnston (Maywood), Mark Baratta(Omaha), Joel Wiens (Kimball), Jon Schmaderer (Stuart), Greg Hohl (Wahoo),Second row, left-right: Arnold Lowell (Ceresco), Nadine Hagedorn (West Point), Cameron Mathis (Creighton)Third row, left-right: Bill Anderson (Hordville), Allen Thorberg (Petersburg), Pat Kenner (Hebron), Don Eberly (Stanton), David Ochsner (Nelson)Back row, left-right: Scott Selko (Mead), Mark Hesser(Omaha), Lance Marshall (Norfolk), Chris Twibell(Brunswick), Kurt Yost (Lincoln)

not pictured: Brad Clark (Weeping Water), Kirk Enevoldsen(Potter), John Nelsen (Holdrege), Paul Stanosheck (Odell),Korey Schow (Keystone), David Steffensmeier (Beemer)

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

2 Calendar

14 Educational Training

17 Associate Member

Resource Guide

Nebraska Independent Banker Magazine

UPCOMING EVENTS

Stay in Touch with NICB

Have you been getting the Capitol Comments? Newsletter with our

Legislative Updates? Meeting and Event Notices or Education Notices?

Email is the quickest, most economical way for the association to communicate with

members! Check to make sure we are one of your ACCEPTED Contacts. NICB uses

Constant Contact to send out most of our correspondence.

Emails come from: [email protected] and [email protected]

You will find it most helpful to “whitelist” the sender, or add the sender to your email contacts as an “approved” or

preferred sender. Check your SPAM filter.

If you are a G-mail user, you’ll want to drag one of the messages from your “Promotions” tab to your “inbox” so

you’re sure to receive our message next time!

Want to start receiving correspondence by email: send us an email and we will add you to the growing list of

members already receiving information by electronic mail.

March 2-6, 2014ICBA Convention Honolulu, HawaiiHilton Hawaiian Village

www.icba.org/convention

March 7-9, 2014NICB Post-Gathering

Kauai

Sheraton Kauai Resort

AprilCommunity Banking Month

June 9, 2014Area MeetingFriend Country Club

July 15, 2014ICBA/NICB Community Banker DayIron Horse Golf Club

Ashland, Nebraska

tbaArea Meeting

Stanton, Nebraska

November 20-21, 2014Annual Management Conference

& Trade ShowMarriott Courtyard808 R Street, Lincoln, NE

Hotel reservations 402-904-4800/1-800-699-3214

Room block expires Oct 22 or when block is full. Room rate

is $199 single/double.

This is before the Minnesota vs Nebraska game in Lincoln.

We encourage you to make your hotel reservations now.


CHAIRMAN’S MESSAGE

2014brings us to yet another critical

election year that impacts us on

a local, state, and national level.

As Chairman of the Nebraska Independent Community

Bankers, I encourage all members to play a leadership

role within your communities when it comes to helping

build political involvement.

This year’s State election appears to pose the most

direct challenge to what was recently re-affirmed to

identify Nebraska as “The Good Life.” Nebraska has

24 open legislative races, 17 by term limits alone. Our

state leadership will look much different beginning in

2015. It is critical for NICB members to expand our

relationships with those who will remain in office, and

play an active role developing and supporting new and

capable leadership. This is the only way we can turn

this “Challenge” into an “Opportunity.” We are pleased

to note that fellow bankers John Stinner (District 48),

and Matt Williams (District 36) are stepping up and

running for this leadership opportunity, seeking to join

NICB member Kate Sullivan (District 41) in the

legislature.

NICB has recently dedicated more leadership and

resources by developing the NICB-PAC. Seventeen

banks took the challenge at our November, 2013

convention in an effort to assist quality leaders’

campaign for their respective causes in this election

cycle and beyond. We need your financial resources in

the NICB-PAC to help make a difference. There are

many resources working against independent

community banking in our State today. The success of

NICB-PAC is critical to supporting our cause and the

communities we serve.

The Federal election also gives NICB membership an

incredible opportunity. NICB member Sid Dinsdale

enters the race for Nebraska’s open Senate seat, to

replace long-time friend of community banking, Mike

Johanns. NICB recently endorsed Sid’s campaign and

we ask community bankers across

the State to recognize the great

opportunity we have for outstanding

leadership in business, banking and

agriculture.

We ask that you remain committed

to your support of local elections that

have huge implications for your community and region.

Strong local politics are often taken for granted, but

once you have experienced a dysfunctional school,

town, or county board, you’ll understand its relevance.

Nothing can limit progress faster than poor leadership

at the local level. I urge you to personally participate in

this process, and bring other

good people with you.

The NICB looks forward to

continuing our leadership

role in 2014 as we support

the essence of independent

community banking and the

communities we serve. We

have a great responsibility

this election cycle to

participate in what makes

America the strongest nation

in the world. We invite you to join NICB in

strengthening this process, it truly does make a

difference!

Thank you for your support.

Jon Schmaderer, NICB Chairman

President/CFO

The Tri-County Bank, Stuart, NE

[email protected]

402.924.3861

Jon Schmaderer

NICB’s “Call to Action”

“Strong

local politics

are often taken

for

granted”

Press Release

Dinsdale Receives Community Bankers’ Endorsement

Elkhorn, NE, January 22, 2014: Sid Dinsdale has been endorsed in the U.S.

Senate race by the Nebraska Independent Community Bankers (NICB).

The trade group represents more than 90 member community banks with some

190 locations across Nebraska. Community banks are locally focused, channeling

loans to the families, businesses, and agriculture in the same neighborhoods and

markets where their depositors live and work.

NICB’s Chairman Jon Schmaderer, President/CEO of family-owned Tri-County

Bank based in Stuart, said the Dinsdale endorsement is a natural, not only because

Dinsdale is Chairman of Pinnacle Bancorp, Inc. which operates in the community

bank business model, but also his history in Nebraska.

Schmaderer said, “Sid and his family have long been actively involved in

community banking across Nebraska, as well as the agricultural industry. They are

successful business people on several fronts. Sid is well grounded and thoughtful. He

will serve main street, agriculture, and the citizens of Nebraska very well.”

Dinsdale said he accepted the endorsement with pride. “These are small

business people who have a payroll in the local community, and help their

communities create jobs and obtain capital for businesses to expand and farmers and

ranchers to do what they do best, feed us, so I’m proud to be associated with them.”

Dinsdale’s other endorsements include Nebraska football legend, Tom

Osborne, and former Governor Charley Thone.


GUEST EDITORIAL

An Open Letter to the NICB

IIam so deeply humbled and encouraged by your

support as I focus on the goal of winning the May

13 primary in Nebraska’s U.S. Senate race. The

banking profession, as represented by the NICB and the

ICBA, reflects what is best about America and the

principles we hold dear.

As one of your own and one of only two bankers in

the US Congress, I will fight for fiscal self-control

and limited government in Washington, D.C. I will

also fight against government overreach in every

facet of our lives and businesses. As community

bankers, we know all too well how government

regulations have impacted our businesses as well

as the businesses of those we serve.

I will put my 37 years of banking experience to work by

relentlessly seeking accountability and fiscal self-

control from the federal bureaucracy. I will campaign

hard against overspending and will work diligently to

pay down the debt. I will insist on entitlement reform

and tax policies that will spur job creation. You and I

both know that this country has a spending problem,

not a revenue problem.

From policies such as Obamacare and

Dodd-Frank, to agencies like the EPA,

OSHA, and NSA, I will push back

against the government overreaches

that are eroding our liberties and

interfering with our progress.

I have traveled far and wide across the state, sharing

my vision of limited spending and less government

overreach. I have met with many of you personally and

plan to be back in your community soon. The support

of my peers means the world to me. I hope you will

share my vision for our country with your friends,

neighbors and colleagues.

Using business principles I’ve practiced throughout my

career in community banking, I feel confident that I can

help push Washington, D.C., to be more of a servant

than a taskmaster. Less “them,” more “us”!

Thank you so very much.

Sincerely,

Sid Dinsdale

Candidate, U.S. Senate

Chairman and President, Pinnacle Bancorp, Inc

402-905-9412

Using business principals I’ve practiced

throughout my career in community banking, I

feel confident that I can help push

Washington, D.C., to be a servant than a

taskmaster.

Sid Dinsdale

I C B A “ F I N E P O I N T S ”

Dodging Stray Bullets

Grab your Kevlar vests, and keep your powder

dry. Washington, long notorious as the gun-

slinging Wild West of policymaking, has

become a more dangerously volatile place for

community banks.

Once again, ricochets from regulatory fire aimed at Wall

Street megabanks continue to endanger community

banks on Main Street. Recent rulemaking shootouts—

first over the Basel III capital guidelines, then the final

Volker Rule on megabank proprietary trading—illustrate

this chronic policymaking problem.

From their inceptions, Basel III and the Volker Rule

were never intended to affect community banks, let

alone ambush them in the night. All the focus on these

rules spotlighted megabank risks and practices (Basel

III, named after a Swiss city after all, was widely known

as the international capital standards). In both cases, the

bipartisan intentions of lawmakers have been clear. After

months of open debate and various draft proposals,

those policy objectives hadn’t changed for either rule—

until the last step in the rulemaking process. When the

final details of these rules surfaced, the once-benign

regulations became a menace overnight. (The final

Volker Rule, for goodness sake, arrived while everyone

was celebrating the Christmas holiday!)

If community banks hadn’t fired back so quickly and

forcefully in self defense, the repercussions from these

regulations would have been disastrous. Which,

ultimately, leaves everyone wondering: Why can’t the

regulatory agencies shoot straighter, without inflicting

serious collateral damage on community banks? Aren’t

megabanks a big enough target to hit?

What’s clear is that the current unpredictable, overly

complex policymaking process for community banks—

both on Capitol Hill and within the regulatory

agencies—needs to end. Yes, community banks dodged

these deadly Basel III and Volker Rule bullets. But these

kinds of high-stakes dramas should never happen in the

first place. Community banks,

ironically the world’s best risk

managers, simply cannot operate

properly under such unrelenting and

arbitrary risks. No business,

organization or human being could.

No doubt, finance and banking serve

an especially important economic purpose that requires

effective regulatory oversight. But that is not what’s

happening here. On public policies dealing with too-big-

to-fail, you and your community bank should simply be

left alone to do your important work on Main Street.

That’s common sense. But, unfortunately, old habits of

one-size-fits-all policy making die hard.

ICBA has made major regulatory relief and tiered

regulation for community banks its top priority, on

which we’re making real short- and long-term progress.

But, as ICBA has said for many years, the underlying

cause of today’s unwieldy, overly complex financial

regulation for community banks stems from too-big-to-

fail, too-big-to-regulate financial firms. Until excessive

financial concentration is truly and fully addressed,

America’s diversified financial system will remain

perpetually vulnerable to unpredictable policymaking.

So ICBA and community bankers will remain ready for

new skirmishes sure to erupt suddenly over bad and

destructive regulation. But, ultimately, we must remain

simultaneously focused on winning the broader war of

ending too-big-to-fail. That is the long-term fight we and

the American people can and must win. But, as you

know, it’s a fight that simply won’t happen without

community bankers and ICBA leading the way.

Let’s keep our eyes on the prize and our hearts in the

cause. We can do this. Stay with us.Cam Fine

President/CEO

Independent Community Bankers of America

[email protected]

@cam_fine

Page 6 Nebraska Independent Banker Magazine

Cam Fine

It is the water which will make this land rich,

It is irrigation which will turn our dry

lives around.

In the mouths of water are so

many silent green songs.

From “The Irrigator,” by Don Welch

The people of Nebraska have long known that

water was the key to successful farms and cities,

at least since settlers began to populate the state

in the 19th century.

Nebraska novelist/essayist Wright Morris wrote: “In

the dry places, men begin to dream. Where the rivers

run sand, there is something in man that begins to flow.

West of the 98th Meridian—where it sometimes rains

and sometimes doesn’t—towns, like weeds, spring up

when it rains, dry up when it stops.”

While Nebraska’s climate is generally categorized as

semi-arid, there is typically a significant variation in

rainfall across the state—average annual precipitation

varies as much between Plattsmouth (32 to 34 in./yr.)

and Scottsbluff (10 to 12 in./yr.) as it does between

Omaha and Boston. To offset this lack of reliable

precipitation in the western part of the

state, farmers began building

irrigation projects in the 1880s to

divert water from many rivers and

streams. Additional irrigation canals

were constructed through the 1930s,

including the “New Deal” projects in

the Loup River and central Platte

Valley. A few more projects were added in the

Republican River watershed in the 1940s and ’50s, and

the most recent project was completed in the Loup

River watershed in 1992. By that time, there were

approximately one million acres being served by

surface water projects, but none further west than

Nance County.

Groundwater irrigation can be traced to the early part of

the 20th century, but development didn’t begin to

expand until the late 1940s when there were

approximately 7,000 irrigation wells serving about

450,000 acres. The invention of the center pivot and

better pump technology in the 1950s led to an explosion

of groundwater development that continued at various

paces into the first decade of the 21st century. As of

2013, there were about 100,000 active irrigation wells

in the state providing water to more than 7.5 million

acres. The growth in groundwater development—as

well as reductions in the number of irrigated acres in

California and Texas—recently allowed Nebraska to

surpass those two states to become the state with the

most irrigated acres in the nation.

Nebraska owes much of this ranking to good fortune in

terms of geography, geology, and hydrology. While

early irrigation development relied primarily on flows

in the state’s many rivers and creeks, a vast, virtually

unknown and untapped source of water—the High

Plains Aquifer—lay beneath the feet of early irrigation

pioneers. The United States Geological Survey (USGS)

estimates that the aquifer, which stretches from Texas to

southern South Dakota, contains about 2.9 billion acre-


E D I TO R I A L F E AT U R E

Nebraska’s Vital Resource

Jeff Buettner


feet of water; more than 65 percent of that water lies

within Nebraska’s borders.

However, while studies have shown that Nebraska has

depleted its portion of

groundwater in the

aquifer by only 1

percent (the same

USGS report indicates

that groundwater

storage in Kansas,

Texas, and New

Mexico have declined

by more than 20

percent since 1950),

the effects of groundwater withdrawals are clearly

evident in many parts of the state. Those effects have

manifested themselves in localized instances of

declining water tables, conflicts between neighboring

irrigation wells, or interference by irrigation wells with

domestic and municipal wells. Other studies (Scanlon

et. al., 2012) show that irrigation pumping has reduced

the base flow in the Platte and other rivers by as much

as 15 percent.

These studies raised

questions about the

sustainability of Nebraska’s

water resources, resources

on which the state’s

agricultural economy,

domestic and industrial

water supplies, recreational

opportunities, and fish and

wildlife habitat depend.

How does Nebraska – given

the disparate challenges and

variable conditions across

the state – address the issue

of ensuring that the entire state has enough water to

meet the demands of future generations?

Sen. Tom Carlson of Holdrege (Dist. 38), the chairman

of the Nebraska Legislature’s Natural Resources

Committee, has long recognized the importance of

water to Nebraska’s economy and way of life. He

introduced and successfully shepherded LB517 to

passage by the Nebraska Legislature in 2013. The bill

created the Water Funding Task Force, consisting of 16

members of the Natural Resources Commission and 11

members representing diverse water-related interests

appointed by the governor. Six state senators (Carlson,

Mark Christensen, Al Davis, Rick Kolowski, Ken

Schilz and Dan Watermeier) were also part of the Task

Force in an advisory capacity, as was Brian Dunnigan,

director of the Nebraska Department of Natural

Resources.

The goal of the Task Force was to develop water

funding legislation for the 2014 session that would

facilitate efforts to achieve sustainable water use and

management in Nebraska.

“Water is life to every citizen in Nebraska,” Carlson

said. “On average, a person can live 33 years without

medical care and 33 days without food, but only three

days without water. Too little water is, at times, a

challenge for portions of Nebraska, but at the same

time, too much water can pose problems in other parts

of the state. A sustainable water policy must be able to

address both circumstances, whenever and wherever

they occur, and is essential for the future well-being of

the state’s citizens.”

The Task Force’s efforts resulted in a series of

recommendations for the Legislature, including a

strategic plan that prioritizes programs, projects and

activities (PPAs) in need of funding; ranking criteria for

evaluating proposed PPAs; establishment of a

permanent structure and process through which PPAs

would gain funding; annual funding to achieve

objectives; and statutory changes necessary to

implement the recommendations.

The Task Force conducted meetings across the state

during the summer of 2013, gathering information

about water sustainability needs, learning about local

water-related issues, and taking input from the public.

After more than 20 meetings, the Task Force developed

a set of criteria for evaluating proposed PPAs and

identified a number of “high” and “medium” priority

objectives to meet when ranking PPAs.

“A sustainable waterpolicy must be able to

address bothcircumstances, wheneverand wherever they occur,and is essential for thefuture well-being of the

state’s citizens.”

Sen. Carlson in the legislativechamber at the State Capitol.


While space precludes listing all of these priorities, a

sampling of the criteria used to rank PPAs illustrates

the diverse and critical nature of the Task Force’s goals.

The criteria include determination of the extent to

which the PPA contributes to the goals of water

sustainability for the State of Nebraska by protecting

the ability of future generations to meet their needs,

including the following:

• Remediating or mitigating threats to drinking

water;

• Meeting the goals and objectives of an

approved Integrated Management Plan or

Groundwater Management Plan;

• Increasing aquifer recharge;

• Reducing aquifer depletion; and

• Increasing stream flow

Other criteria seek to evaluate how proposed PPAs can

address water management issues related to flood

control, agricultural, municipal and industrial use,

recreational benefits, and wildlife habitat.

The Task Force compiled a lengthy list of proposed

PPAs adding up to almost $1 billion that could help

improve water management and sustainability in

Nebraska, or about $50 million per year over the next

20 years. The projects would all be evaluated, ranked,

and prioritized for funding and local entities would

share the cost of the projects. It would take many years

for the projects to yield results and not all of them

would likely pass muster. But evidence of the need for

investment in water sustainability projects is well

documented: declining water tables in many parts of

Nebraska, a lawsuit by Kansas over allocation of water

in the Republican River Basin, declining inflows to

Lake McConaughy, water quality issues in parts of the

state, mandatory water

conservation measures in

Lincoln and other communities

in 2012 as a result of drought,

and impacts of groundwater

pumping on municipal and

domestic wells, to list a few.

Nebraska has long struggled

with water issues, including

finding sufficient funding to

implement projects that would

improve management and

conservation of water

resources, but other priorities

always pushed the water issues

to the bottom of the funding

ladder. As a result, Nebraska

has seemingly moved from one water conflict or crisis

to another. For example, LB962, passed in 2004, was

an attempt to address long-standing conflicts between

surface and ground water uses in certain areas of the

state, to prevent conflicts from occurring in other parts

of the state, and provide an alternative to court

involvement. While it was a step in the right direction,

necessary funding to fully implement the law was not

provided by the state, the interests of some water users

were virtually ignored during subsequent integrated

management planning processes, and the law’s

objectives have not been fully realized.

Nebraska, through the work of the Water Sustainability

Task Force, now has an opportunity to take a

tremendous step toward achieving the goal of water

resources sustainability. It comes down to whether

water and its importance to Nebraska is able to climb

the ladder high enough to gain the necessary funds to

invest in Nebraska’s future.

Jeff Buettner

Public Relations Coordinator

Central Nebraska Public Power District

Holdrege, NE

[email protected]

The Task Forcecompiled alengthy list ofproposed PPAsadding up to

almost$1 billion thatcould help

improve watermanagement

andsustainability in

Nebraska


S N A P S H OT S

Nebraska Independent Banker Magazine Page11

2 0 1 3 M A N AG E M E N T C O N F E R E N C E


I N S U R A N C E

Identity Fraud: Addressing Client Challengesand Creating Bank Opportunities

Banks are no stranger to the real danger posed by

identity fraud. Anyone from bank directors to

employees to clients can fall victim to identity

fraud. Perhaps more so than other institutions, banks

are sensitive to the damage that can be done by an

identity thief and take proper actions to manage risk by

securing specialized insurance policies that cover their

accrued costs, from complying with laws and

regulations to addressing notification expenses, if

breaches occur.

How a bank handles and responds to identity fraud can

be a pivotal factor for potential clients and employees.

Helping clients and employees understand and manage

their risk can turn the threat of identity fraud into an

opportunity. Providing your customers with insurance

such as Identity Fraud Expense Reimbursement

coverage can set a bank apart from its competitors as a

business that goes the extra mile for its customers and

employees.

Despite awareness of fraud and the precautions taken

to protect personal data, identity fraud’s financial

impact on consumers is growing. Javelin Strategy and

Research’s 2013 Identity Fraud Survey Report noted an

incidence rate of 5.26 percent, or 12.6 million new

victims in 2012. In other words, 1 in 19 of a bank’s

customers is susceptible to identity fraud every year.

While the out-of-

pocket expenses to

individuals averaged

$365, the total fraud losses affecting financial

institutions, merchants and other businesses increased

nearly 14 percent from prior year to $20.9 billion.

Acting on Opportunity

Managing identity fraud can be a costly endeavor for

financial institutions. To protect against the occurrence

of identify fraud and comply with federally mandated

Red Flag Rules, many banks invest in comprehensive

security measures and mitigation programs such as

building technology firewalls, data management

protocols or offering credit monitoring for potential

victims in the event the customer information is

compromised. They employ fraud centers and other

loss recovery techniques to minimize their own losses.

These investments can help reduce the likelihood of

identity fraud while increasing customer confidence

and protect their bottom line.

Banks can instill further confidence and loyalty in

clients and employees by employing other risk

management solutions. Identity Fraud Expense

Reimbursement coverage can give employees and

clients another layer of protection and secure the bank’s

role as risk manager and customer advocate. Some

advantages of touting these offerings include:

• Inspiring Loyalty and Exhibiting

Differentiation. Customers expect a bank to

cover the costs of losses that are connected to

bank activities but may not expect coverage

for fraud that occurs outside the “walls” of the

bank. However, when a financial institution

provides expansive Identity Fraud Expense

Reimbursement coverage as a no-cost account

holder benefit, customers know they are

getting a valuable benefit that will respond no


matter where the crime originates.

• Proactive Loss Mitigation: By quickly

identifying and resolving an identity fraud

incident, banks will not only provide superior

customer service but also may reduce the

possibility of further additional fraud costs to

the consumer and the bank itself. A customer

who is a better identity fraud risk is good for

the customer and potentially more profitable

for the bank!

• Maintaining Productivity. Resolving identity

fraud incidents often requires the

victim to contact organizations

and creditors during normal

business hours— distracting them

from their job. Offering

employees identity fraud

resolution services can relieve

stress and save them time,

ultimately allowing an employee

to be productive on the job.

Shopping for Coverage

Banks should turn to a trusted insurance

agent or broker to sort through

offerings and determine strategic

solutions. Identity Fraud Expense Reimbursement

policies generally cover lost wages from taking time off

to clear records, attorney fees when legal services are

needed and child or elder care costs. For many banks,

insurance policies that include coverage for travel

expenses, ID replacement costs, medical ID fraud

expenses and other incidental expenses that can quickly

add up when resolving a fraud are going to be more

impactful for the business, employees and clients.

The best insurance policies also provide resolution

services, giving victims access to experts who can

guide their efforts to correct financial records and clear

their credit reports of fraudulent information. Clear

recommendations from an experienced professional can

make an impact on both a victim’s time and expenses.

Top notch resolution services should engage the

customer and include comprehensive educational

websites where bank customers can request free credit

reports, opt out of marketing mailing lists, and access

cutting edge diagnostic tools that help a consumer

gauge their risk to identity fraud. Credible providers

of Identity Fraud Expense Reimbursement insurance

also maintain an experienced claims staff dedicated to

quickly and thoroughly handle claims, which enhances

the overall customer experience.

In Travelers’ experience, while the needs of

policyholders vary, customers typically find value in

Identity Fraud Expense Reimbursement policies with

limits between $1,000 and $25,000.

Additionally, agents can help banks find

a policy that works hand-in-hand with

educational and marketing resources for

the bank, its employees and customers.

In a highly competitive financial

services market, banks will continue to

look for ways to set themselves apart

from competitors in order to attract and

retain customers and employees.

Providing Identity Fraud Expense

Reimbursement insurance to customers

offers value beyond traditional or

legally required services. Providing

similar coverage to employees pays off

in productivity and adds to a bank’s

reputation as a preferred employer. By working closely

with an insurance agent or broker, banks can identify

the best coverage at the most efficient cost, and turn the

risks posed by identity fraud into an opportunity to be

a proactive and service-oriented business partner.

Joe Reynolds

ID Theft Product Manager

Travelers

[email protected]

SOURCES

Stats are taken from Travelers Identity Theft brochure which cites

the Javelin 2013 Identity Fraud Survey Report

https://www.javelinstrategy.com/brochure/276

Providing Identity

Fraud Expense

Reimbursement

insurance to

customers offers value

beyond traditional or

legally required

services.


EDUCATION

AUDITING & ACCOUNTING

5/15 Auditing Your Loan Portfolio5/29 IT Audit for Community Banks

COLLECTIONS

1/15 Real Estate Collections Under the New CFPB MortgageServicing Rules

COMPLIANCE

1/28 Req. Compliance Series for Board & Sr Mgmt, incl. BSA1/29 CFPB Exam Procedures for Int’l Remittance Transfers2/11 Imaged Documents: What to Keep, What to Destroy,

What Holds Up in Court2/25 Trust Compliance in Opening Accounts & Lending3/07 Interagency Guidance for Reporting Elder Financial

Exploitation3/18 Flood Insurance Compliance Update: incl. New Biggert-

Waters Rules Effective 7/6/14 & FEMA Mapping Changes3/19 Regulatory Compliance for Lenders, Including BSA –

Required Compliance Series4/23 CRA Compliance, Update & FAQs6/19 Regulatory Compliance for the Frontline, Incl. BSA –

Required Compliance Series6/26 Compliance Officer Training: Will Your AML/BSA/OFAC

Program Satisfy Examiner Scrutiny?

DIRECTORS

Director’s Series broadcasts are from 10:00-11:30 AM Central Time1/9 Director Series: UBPR Peer Group Analysis for Directors3/11 Director Series: Fiduciary Responsibilities for New

Directors5/13 Director Series: 10 Commandments for Dealing with

Regulators

FRONTLINE & NEW ACCOUNTS

2/13 Opening Accounts for Minors: Compl.Ownership, Access 4/29 Risks & Precautions for Endorsements & Other

Negotiable Instruments5/28 Business Accounts: Who is Authorized to Open, Close,

Transact?6/5 Head Teller Development: Improving Teller Performance6/10 Completing the CTR Report Line by Line

HUMAN RESOURCES

3/4 Essential HR Recordkeeping from Hiring to Firing

IRA

1/14 IRA & HSA Review & Update, Incl. DOMA Implications6/12 Processing IRA Rollovers & Transfers

IT2/19 Risk Management Series: Expanding Your Required IT

Risk Assessment Program2/24 New FFIEC Social Media Guidance: Reg. Compliance, Risk

Assessment & Examiner Expectations2/26 Email Archiving & Encryption4/30 Patch Management – The Art & Science of Keeping

Software Current6/24 Mainstreaming Mobile Remote Deposit Capture:

Adoption, Deployment, Operations & Risks

LENDING

1/22 Commercial Appraisal Review: Income Versus SalesComparison Approach

1/23 What is That Personal Tax Return Telling Me? Part 1: Form 1040, Schedules B, C & D

2/6 Construction to Permanent Lending Under the NewCFPB Mortgage Rules

2/12 Escrow Account Compliance: Rules, Best Practices &Examiner Hot Buttons

2/20 The ALLL in Troubled Debt & Foreclosed AssetRestructuring

2/21 Dissecting the New CFPB Mortgage Rule ExamProcedures for TILA & RESPA

2/27 What is That Personal Tax Return Telling Me? Part 2: Schedules E & F

3/13 Emerging Leader Education: Understanding Asset/LiabilityManagement Concepts

3/25 Loan Origination in the Current RegulatoryEnvironment:Improving Compliance, Costs & Turnaround

3/26 Call Report Revisions & Updates4/9 Managing Loan Risk Using FICO Score Monitoring &

Credit Mitigation Models4/10 Basic Commercial Loan Underwriting: Analysis, Qualifying

Applicants & Decision Making4/22 Ability to Repay – Are You in Compliance with the New

CFPB Rules? 4/24 Interpreting Economic Indicators in Agricultural Loan

Portfolio Management

Live Webinar & Archived Webinar Link with free CD Rom

Calendar shows January–June. For the full year and to review those webinars offered in our Series Package go

to www.nicbonline.com, click on Education then Webinars.


LENDING, cont.

5/6 Appraisals & Evaluations for Consumer Real EstateLending: Interagency Guidance, Regulator Issues & FAQs

5/8 Introduction to SBA Lending5/14 Emerging Leader Education: How to Avoid Lender

Liability Claims: Compliance, Regulatory Issues & BestPractices

5/22 Reporting Your Customers’ Credit: Understanding theIncreasing Regulatory Requirements

6/17 Call Report Prep: Basic Lending Sched: RC-C & RC-K6/25 Self-Employed Borrower Tax Implications under the New

CFPB Income Verification Rules

OPERATIONS

1/7 Handling Dormant Accounts & Unclaimed Property1/16 Managing E-Sign, E-Statements & E-Disclosures2/4 ACH Specialist Series: Tax Refunds: ACH Postings,

Exceptions & Bank Liability4/3 ACH Specialist Series: ACH Rules Update 20144/15 Responding to Official Demands for Customer Funds:

Subpoenas, Garnishments, Summonses, Levies5/21 Implementing the New ACH Security Framework

Requirements by December 31, 20146/3 ACH Specialist Series: How to Legally Recover

Unauthorized ACH Withdrawals After the NACHA Return Deadlines

SECURITY & FRAUD

1/30 Your Assets Have Gone Mobile – Have Your Security PlansKept Up?

3/27 Conducting the Annual Physical Security Review

SENIOR MANAGEMENT

1/8 Fee Income 2014: Challenges, Issues & What’s on theHorizon

3/6 Creating a Social Media Policy & Strategy That EveryoneCan “Like”

3/20 Subchapter S Conversion in Community Banks: Issues &Answers

4/17 Risk Management Series: Mobile Device Risks &Compliance Rules: Managing Your Bank’s BYOD & COPE Policies

5/20 Risk Management Series: Regulator Issues in InterestRate Risk: Current Trends, Shock Analysis & Best Practices

6/11 Loan Pricing Strategies for Community Banks

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

otherwise indicated. Please check the brochure copy to confirm the time.

WAYS TO REGISTERCall NICB 402.474.4662 or

Online at www.nicbonline.com/registration-form.htm

no credit card needed, NICB will bill institution.

TRAINING OPTIONS

1. LIVE WEBINAR ($195 NICB Member | $325 Non Member)

LIVE WEBINAR option allows you to have one telephone connection for

the audio portion and one internet connection (from a single computer

terminal) to view online visuals as the presentation is delivered.

Unlimited number of people can listen from your office speaker phone.

Registrants are emailed a link to access speaker handouts, hookup

instructions, and pin number to log into the webinar.

2. ON-DEMAND WEB LINK & FREE CD ROM* ($195 NICB Member |

$325 Non Member)

WEB LINK is a recording of the live webinar with audio, visuals and

hand-outs accessed at the Link site. You can order any time before or up

to 6 months after the date of the Live webinar. Presenter’s email

address provided for any questions. Web link is sent to your email

address when it is accessible, which is approximately 6 days after Live

webinar. The Archived Link can be viewed anytime 24/7 for 6 months

after the live webinar date. You also receive free the webinar on CD

Rom.* You can also access the On-Demand Link through an iPad, iPhone

or Android. The ARCHIVED LINK & CD Rom is a convenient way to do

training with others in your institution. Limited availability – The link or

CD will not be available after the 6 months expires. *CD Rom for PC &

MAC use only

3. BOTH LIVE WEBINAR and ON-DEMAND WEB LINK (includes FREE

CD ROM*)

Includes options 1 and 2 above. ($225 NICB Member | $350 Non

Member)

Grow your bank with us.

ICBA Bancard/TCM Bank | ICBA Securities | ICBA Mortgage

ICBA Reinsurance | ICBA Consulting | ICBA Strategic Technology Solutions

"I began using ICBA Securities early in my banking career, and have profited from the

relationship. Whether it’s finding the perfect muni for my portfolio or attending their

bond academy, we thrive because they take the time to develop a strategy that works.”

Erik Thompson

Chairman

Prairie Sun Bank, Milan, Minnesota

WE BELONG.....

www.icbasecurities.com

(800) 422-6442

AccountingBKD, LLP ...........................................402-473-7600Hocking & Reid, LLC ......................402-441-0140John Cederberg, CPA .....................402-475-8155Labenz & Associates .......................402-437-8383McDermott & Miller, PC

Grand Island ............................308-382-7850Hastings ....................................402-462-4154Kearney ....................................308-234-5565Omaha ......................................402-391-1207

AppraisersRitchie Bros Auctioneers...............402-709-6903Taylor and Martin ............................402-941-1072

ArchitectsKirk Gross Co. ................................319-234-6641

AttorneysBaird Holm LLP ...............................402-334-0500Perry Guthery Haase Gessford PC LLO.............................................................402-476-9200Woods & Aitken LLP......................402-437-8500

AuctioneersRitchie Bros. Auctioneers ..............402-709-6903

Brokerage/Investments/SecuritiesAmeritas Investment .......................800-355-1314D A Davidson

Lincoln .........................................402-420-8201Omaha.........................................800-268-6451

Federated Investors ........................412-288-6501FHLBank Topeka

Eastern Nebraska......................402-740-9911Western Nebraska....................308-893-3452

First National Capital Markets .....800-989-2999RBC Wealth Management .............402-465-3833ICBA Securities...........................800-422-6442UMB Bank, NA.................................800-821-2171United Bankers’ Bank.....................402-933-1644Wells Fargo Securities....................800-422-3465

Card ServicesICBA Bancard/TCM ..................800-242-4770NETS, Inc...........................................800-735-6833SHAZAM...........................................515-288-2828

ChecksHarland Clarke ............................800-382-0818

CollectionsCredit Management Services, Inc..............................................................308-382-3000Double Eagle Collateral Services.............................................................402-517-9726

ConsultingITPAC Consulting LLC...................402-420-1556John Cederberg, CPA .....................402-475-8155Ritchie Bros. Auctioneers ..............402-709-6903WRK Systems, Inc...........................402-592-8999

Core Processing/SoftwareComputer Services Inc ..................800-545-4274D&H...................................................800-989-9009IBT ......................................................512-616-1115Modern Banking Systems ..............402-592-5500

Correspondent BanksBankers’ Bank of the West ............402-476-0400Federal Reserve Bank.....................816-881-2498FHLBank Topeka

Eastern Nebraska......................402-740-9911Western Nebraska....................308-893-3452

First National Bank, Omaha................800-642-9907Midwest Independent Bank ..........402-476-1131UMB Bank, NA.................................800-821-2171United Bankers’ Bank.....................402-932-3329US Bank, NA.....................................402-434-1285Wells Fargo Global .........................800-934-2657

Crop/Mult-PerilUNICO Group Inc .....................800-755-0048

Disaster RecoveryComputer Services Inc ..................800-545-4274WRK Systems ..................................402-592-8999

Document ImagingIBT ......................................................512-616-1115Modern Banking Systems ..............402-592-5500

EducationICBA Online .................................800-422-7285

Electronic BankingNETS, Inc...........................................800-735-6833SHAZAM...........................................515-288-2828

Electronic Liens-SoftwareDecision Dynamics .........................803-808-0117

Employee Benefits/PlansBank Financial Services Group.....800-931-7782Equias Alliance LLC.........................913-433-8645First National Life of the USA......402-483-1776

Equipment/Office SuppliesEakes Office Plus .............................888-329-1344Money Handling Machines ............402-571-5577

Fee IncomeICBA Services Network ................800-422-8439

Financial Products/ServicesBank Financial Services Group.....800-931-7782Federated Investors ........................800-245-5000

FurnitureEakes Office Plus .............................888-329-1344

Identity TheftSpectrum Financial Services ........402-993-4699

Information Security/TechnologyInfogressive .......................................402-261-0123ITPAC Consulting LLC...................402-420-1556SPC .....................................................402-505-0379WRK Systems, Inc ...........................402-592-8999

InsuranceFirst National Life of the USA......402-483-1776Kansas Bankers Surety ...................785-228-0000Spectrum Financial Services ................402-933-4699Travelers Companies, Inc. ......651-310-5946UNICO Group Inc..........................800-755-0048

Loan Origination/Mortgage LendingICBA Mortgage .............................877-516-8665

National AffiliateICBA .................................................800-422-8439

Overdraft ServicesSpectrum Financial Services.......402-933-4699

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

Website Development/HostingProfitStars......................................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