Pub. 15 2020-2021 Issue 1

NEBRASKA BANKERS ASSOCIATION 5 MAY/JUNE 2020 EDITORIAL: Nebraska Banker seeks to provide news and information relevant to Nebraska and other news and information of direct interest to members of the Nebraska Bankers Association. 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 ©2020 NBA | The newsLINK Group, LLC. All rights reserved. Nebraska Banker is published six times each year by The newsLINK Group, LLC for the NBA 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 constitute an endorsement or recommendation of any product or service advertised. Nebraska Banker is a collective work and as such some articles are submitted by authors who are independent of the NBA. While Nebraska Banker encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprintedwithout prior written permission. For further information, please contact the publisher at 855.747.4003. 22 8 PRESIDENT’S MESSAGE: A TESTAMENT OF COMMITMENT The rise and spread of the coronavirus has undoubtedly brought significant, unplanned hardships and continued change to the Nebraska banking industry. Every aspect of our personal and professional lives has been directly impacted in one way or another. Richard J. Baier, President and CEO, Nebraska Bankers Association 10 WASHINGTON UPDATE: CORONAVIRUS STRIKES. AMERICA’S BANKS STEP UP. The world is grateful for all who have served on the front lines battling the COVID-19 crisis — the doctors and nurses who have put their lives at risk to care for the sick and dying as well as those who have kept our grocery stores and pharmacies stocked. These essential service providers are the pandemic’s heroes, putting the needs of others ahead of their own. Rob Nichols, President & CEO, American Bankers Association 12 EDUCATION CALENDAR 14 PPP ALTERS INTERNSHIP In a normal year, many bank interns begin their summer working at the teller line. This year is certainly not normal, and Callie Dethlefs’ first banking experience was a little unique. Kara Heideman, Director of Communications and Marketing, Nebraska Bankers Association 18 COUNSELOR'S CORNER: FRAUD AND THE ECONOMY The Association of Certified Fraud Examiners released their biannual survey this year on occupation fraud; the survey again shows the average organization loses 5% of their annual gross revenue to fraud. Bob Kardell, Baird Holm LLP 20 DISTRESSED LENDING BEYOND THE BANK LOAN PORTFOLIO Bankers undoubtedly spent the better part of March to May 2020 dealing with stressed, scared and frustrated clients while trying to play mind reader with the SBA. Covid-19 is sure to stress the bank’s loan portfolio as businesses face varying impacts of the health crisis. Gary Grote, Managing Director, Bridgepoint Investment Banking 22 TECH TALK: VIRTUAL IT AUDIT — NOT A NOVEL IDEA Security and IT professionals across the world have invested a large amount of time and effort transitioning to a remote workforce. Nick Podhradsky, EVP — Sales, SBS CyberSecurity and Clinton Watkins, CISA, CCBSP — Senior IT Auditor, SBS CyberSecurity 25 COMPLIANCE ALLIANCE: A SOLEMN FAREWELL TO REG. D’S CONVENIENT TRANSFER RESTRICTIONS Effective April 24th, 2020 the Federal Reserve Board (FRB) did away with a longstanding, and, in the opinion of some, outdated rule in Regulation D. The Interim Final Rule amended Reg. D by deleting the six convenient transfers and withdrawals restriction that has become synonymous with savings accounts. Michael Perez, Associate General Counsel