Pub. 14 2019-2020 Issue 4

NEBRASKA BANKERS ASSOCIATION 5 NOVEMBER/DECEMBER 2019 EDITORIAL: TheNebraska Banker (NBA) seeks to reflect news and information relevant to Nebraska and other news and information of direct interest to members of the NBA. Statement of fact and opinion are made on the responsibility of the authors alone and do not represent the opinion or endorsement of the NBA. Articles may be reproduced with written permission only. ADVERTISEMENTS: The publication of advertisements does not necessarily represent endorsement of those products or services by the NBA. The editor reserves the right to refuse any advertisement. SUBSCRIPTION: Subscription to the magazine, which began bi-monthly publication in May 2006, is included in membership fees to the NBA. CONTENTS ©2019 NBA | The newsLINK Group, LLC. All rights reserved. The Nebraska Bankers Association bi-monthly is published six times each year by The newsLINK Group, LLC for the and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the NBA, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constituteanendorsementor recommendationofanyproductorserviceadvertised. The Nebraska Bankers Association bi-monthly is a collective work and as such some articles are submitted by authors who are independent of NBA. While the Nebraska Bankers Association bi-monthly encourages a first-print policy, in cases where this is notpossible,everyefforthasbeenmadetocomplywithanyknown reprintguidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at 855.747.4003. 28 7 PRESIDENT’S MESSAGE: LEGISLATIVE PROGRESS MADE, ENGAGEMENT REMAINS NECESSARY Congress has made some significant progress on recent legislation important to Nebraska’s banking industry. Nebraska bankers must remain engaged in the process. Richard J. Baier, President & CEO, Nebraska Bankers Association 10 WASHINGTON UPDATE: BUILDING SUCCESS IN WASHINGTON Washington is producing some smart, common-sense banking policy. View the new ABA grassroots platform, “Secure American Opportunity,” for information on actionable policy issues. Rob Nichols, President & CEO, American Bankers Association 12 EDUCATION CALENDAR 14 COUNSELOR'S CORNER: COMMUNITY BANK LEVERAGE RATIO: FINALLY, SOMETHING SIMPLE (?) Over the years, banking has changed. Some of these changes are benign: economies of scale, technological innovation and the removal of branching restrictions since the late 1970s. Jeff Makovicka, Kutak Rock LLP 18 TECH TALK: WHAT DOES THE AVERAGE FINANCIAL INSTITUTION SPEND ON CYBERSECURITY? Understand your security risk and impact potential to build a stronger information security culture throughout your organization. Shane Daniel, Sr. Information Security Consultant, SBS CyberSecurity, LLC 22 REGULATION CC UPDATES — ACTION PLAN AND Q&As The Consumer Financial Protection Bureau and Federal Reserve Board (collectively, the Agencies) issued a final rule regarding inflation-based adjustments to the dollar amounts required by the Expedited Funds Availability Act (EFA Act), which is implemented by Regulation CC. Jennifer Kirby, CRCM, Virtual Compliance Officer 26 LETTER OF CREDIT SCAMS The FBI issued a warning recently on a new version of an advance fee scheme, which involves a letter of credit.The scam could have a substantial impact on banks, especially smaller banks. Bob Kardell, JD, MBA, CISSP, CPA, CFE, CFF, Baird Holm LLP 28 THOUGHTS ON INVESTMENT MANAGEMENT: SIX POINTS TO PONDER When determining investment strategy, some banks simply react to changes in their liquidity position. If loan growth slows and liquidity rises, they’ll commit more to the securities portfolio. Jeffrey F. Caughron, Managing Director, The Baker Group