Archive for month: March, 2022

Corn seedling
,

From the Fields: Traditions and Transitions

By Amber Keller, Town Bank

I am looking forward to seeing many of you next week at the WBA Ag Bankers Conference. It will be great to reconnect, share stories and experiences, and learn about the latest trends and tips for navigating this agricultural super-cycle and these tenuous times in our world today. Whether you are new to farm lending or have been around the block a few times, there is still much to learn. Yet, some things do not change all that much- sound credit analysis and risk identification, assessment of farm management competencies, optimum use of technology and labor mix, as well as strategic planning for long-term success.

One of the strategic planning topics to be featured at our conference is farm succession and estate planning. Many of us are familiar with estate planning, as it relates to making plans for the business and assets when one passes on. However, farm succession planning also includes what happens to the business and our assets while one is still living. That’s just as important and even more so.

Think of farm succession planning as a way to build a road map for operations and enterprise growth, better defined job roles, knowledge and management transfer, and business decisions to be made by delegation, empowerment, or consensus as a team. Attorneys, accountants, lenders, and others can help farm families view their farms as dynamic businesses, respecting those long-standing traditions and embracing innovations with open minds. Indeed, that’s some powerful planning with purpose.

The legal professionals at Wilson Law Group will share with us some important concepts to consider when referring our clients for farm succession and estate planning services. They help farmers, business owners, and farm land owners plan and protect the assets and legacies they have built and transition them to the next generation and beyond. Hope you can join us next week! I’ll see you in the Dells!

Amber Keller is the current vice chair of the WBA Agricultural Bankers Section Board of Directors and is the senior vice president, director of ag banking with Town Bank in Clinton.

/by
,

Act Now to Oppose Recent OCU Rulemaking Related to Authorized Incidental Powers

Rose Oswald PoelsBy Rose Oswald Poels

While the Wisconsin Legislature’s 2021–22 regular session has concluded, our work to oppose the expansion of credit union powers continues. On February 15, the Wisconsin Office of Credit Unions (OCU) filed a final rule to broaden which state-chartered credit unions can accept secondary capital.

Last week, WBA filed written comments with OCU expressing our concerns with this expansion and requesting specific limitations. This followed several phone conversations various WBA staff had with different individuals at DFI. Previous rules allowed only low-income designated state-chartered credit unions the authority to accept secondary capital. The revised rule would broaden this to allow nearly any credit union to issue subordinated debt, for among other things, pure asset growth purposes.

During this year’s legislative session, WBA and 87 banks strongly objected to credit union expansion legislation, AB 478/SB 451, which would have permitted, among other concerns, any credit union to issue supplemental capital. During negotiations with elected officials, the credit union industry stated that their interest in expanding a credit union’s ability to issue supplemental capital beyond only low-income designated credit unions was for the sole purpose of restoring a credit union to minimum capital levels. While the credit union legislation (which contained this broad supplemental capital provision) did not pass this session, it seems the industry is using the regulatory process to achieve this same outcome. As a result, WBA is very concerned with the expansion of powers presented by OCU’s recent rulemaking activity.

While there is no formal comment process for this type of rulemaking, I urge each of you to join WBA in emailing written comments to OCU in opposition of yet another example of credit union powers expansion in our state. I have included a template comment letter for your use in these efforts. Comments should be submitted before April 1 through email to Kim.Santos@wisconsin.gov. The rule issued by OCU will take effect on April 1 as originally published unless OCU agrees to make a change prior to this date. Thank you for your quick action on this important matter!

Submit a comment letter by April 1!

/by
,

Prepare to Navigate the Unknown in 2022

This year, the Wisconsin Bankers Association will offer the 2022 Bank Directors Summit in two locations: Stevens Point on May 18 and Madison on May 19. The event draws beginning and experienced inside and outside directors, bank CEOs, bank executive officers, and bank general counsel. This year’s Summit will take a look at the nuts and bolts that are essential to the role of bank directors, while preparing leaders for the kinds of unique opportunities and challenges that could potentially lie ahead of them in 2022.

One of the key topics addressed at the Summit will be directors’ responsibilities in the investment portfolio. Speaking on the topic will be Ricky Brillard, senior vice president in the Investment Strategies Group at Vining Sparks Associates. Brillard is a Certified Public Accountant who works with financial institutions on balance sheet strategies, the optimization of investment portfolio returns, and the evaluation of asset/liability exposure, while incorporating the entity’s liquidity needs, risk controls, and capital constraints.

A presentation titled ‘2022 — A Year of What Ifs’ will be given by Marc Gall, vice president and asset/liability strategist at BOK Financial. As bankers have come to expect uncertainty over the last two years, Gall will walk Summit attendees through various scenarios to help prepare for the coming months and into the future. Gall is a returning speaker to the WBA Directors Summit, and his areas of expertise include asset/liability modeling, interpreting output and communicating strategies to key management and boards of directors, understanding and complying with regulatory requirements, and fixed income portfolio management/trade execution.

Other sessions to look forward to include ‘Unlock and Inspire a Team That Spans Four Generations’ by Flynt Gallagher of Newcleus Compensation Advisors as well as ‘A Director’s Role in Today’s Changing Banking Environment.’ To learn more and to register for the Stevens Point or Madison event, please visit www.wisbank.com/directors.

/by

WBA Celebrates 130 Years of Service

Thank you for your continued support

By Hannah Flanders

2022 marks the 130-year anniversary of the Wisconsin Bankers Association (WBA). In celebration of another year assisting Wisconsin banks to better serve their communities, WBA looks back at its humble beginnings, the challenges and growth faced over the last 130 years, and each legacy WBA brings forth into the future.

The Dawn of a New Era

On March 24, 1892, 150 curious bankers met at the Plankinton House in Milwaukee for the first time in nearly 30 years. The meeting’s agenda — creating an organized group of bankers to promote the general welfare and usefulness of the banks in the state. Following many years of general distrust in the banking and money systems, Wisconsin joined 20 other states in establishing a bankers association.

A handful of banks from around the state paid $5 each to join the new organization. The first members of the newly formed Wisconsin Bankers Association wasted no time passing two resolutions urging action on current banking legislation. As is today, advocacy has always lied at the heart of WBA’s mission in supporting the banking industry.

Led by WBA’s first president, N.B. Van Slyke of First National Bank of Madison, the Association’s guidelines, goals, formal Constitution, and bylaws were created and ratified. And so began the next 130 years of overcoming obstacles and meeting new challenges in an ever-evolving industry, all with the goal of serving the consumers of Wisconsin.

Laying the Foundation

With nearly 30 years under its belt and an overall reassurance in the banking system, WBA set its roots down in Milwaukee in 1921. WBA was quickly evolving into the association it is today — from life insurance plans to encouraging bankers to involve themselves with the financial education of their community — several aspects of WBA’s early history developed into subsidiaries serving banks across the Midwest.

During this time, the Association also witnessed the darkest days of The Great Depression, waves of crime, and bank mergers throughout the state. By 1933, WBA membership dwindled from a high of over 1,000 banks to half that number.

In 1942, WBA’s Standard Forms Manual released 130 standard bank forms to members. The popular manual spearheaded the establishment of Financial Institution Products Corporation (FIPCO) in 1987–1988. Today, this WBA subsidiary offers industry leading products — from forms and booklets to consulting services and software — to financial institutions across the Midwest.

Additionally, demands for more employee benefits rose in the late 1900s. WBA’s Employee Benefits Corporation (EBC) was formed in 1982 to provide WBA-member bankers with the highest quality health, life, and disability coverage.

In the late 1950s, the WBA headquarters relocated to Madison. Through the end of the twentieth century to the present, WBA maintained its strong membership base and today represents nearly 98 percent of all banks in the state. The Association helped establish various opportunities ranging from schooling at the University of Wisconsin to general educational conventions and assistance developing advertising for the benefit of its members.

A Legacy to Live On

Following one last headquarters relocation to 4721 South Biltmore Lane in Madison in 1999, the 2000s marked moments of growth for the Association. Between naming its first female president and CEO, Rose Oswald Poels, in 2011 and the creation of the Wisconsin Bankers Foundation (WBF) in 2013 — WBA also underwent a merger with Wisconsin’s other banking association. In an effort to unite the voices of the state’s banking industry, WBA and the Community Bankers of Wisconsin merged in 2015. One year later, in 2016, current President of F&M Bank of Kendall Cynthia Erdman became the first woman to hold the position of WBA chair.

130 years after the founding of WBA, the Association continues to provide its members the valuable resources they need to stay relevant, educated, and aware of emerging trends in the industry. Evidenced by the support it has provided in recent years — be it through economic recession, the COVID-19 pandemic, or the highest inflation rate Americans have seen in 40 years — WBA is dedicated to serving Wisconsin banks.

WBA’s legacy in Wisconsin is far from over. WBA staff are excited about helping member banks navigate future challenges to ensure a vibrant banking sector in the state. Advocacy and professional development for the benefit of Wisconsin bankers will remain fundamental values of the Association as they have been since its inception.

WBA is humbled to represent such an important sector of the economy and looks forward to evolving and adapting with its member banks — as we have for 130 years.

Historical events compiled from “Good as Gold — A History of Banking in Wisconsin,” Copyright © 1992 by Wisconsin Bankers Association.

/by
Triangle Background
,

U.S. Supreme Court Tosses Recently Adopted Wisconsin Redistricting Plan

By John Cronin

In a 7–2 decision released Wednesday afternoon, the U.S. Supreme Court reversed the decision the Wisconsin Supreme Court delivered three weeks ago on new state legislative district maps. The U.S. Supreme Court denied a similar request to overturn congressional boundaries set by the Wisconsin Supreme Court. A brief timeline:

  • November 11, 2021 – GOP-controlled Legislature passes new legislative and congressional maps
  • November 18, 2021 – Dem. Governor Tony Evers vetoes those maps
  • November 30, 2021 – Wisconsin Supreme Court sets “least change” approach to analyzing proposed maps parties submit to the Court
  • January 19, 2022 – Wisconsin Supreme Court oral arguments on redistricting case, proposed maps submitted by interested parties (Legislature, Governor, Wisconsin members of Congress, etc.)
  • March 3, 2022 – Wisconsin Supreme Court delivers a 4–3 ruling in favor of maps Gov. Evers submitted to the Court (Ziegler, R. Bradley, and Roggensack dissent)
  • March 7, 2022 – GOP-controlled Legislature appeals the Wisconsin Supreme Court ruling to the U.S. Supreme Court, arguing the Governor’s maps adopted by the Court were inconsistent with the Equal Protection Clause in the 14th Amendment of the U.S. Constitution. In question were seven districts fully or partially located in the City of Milwaukee.
  • March 23, 2022 – U.S. Supreme Court rules the Wisconsin Supreme Court erred in their application of Court decisions on the guarantee of equal protection and the Voting Rights Act. (7–2 decision, Justices Sotomayor and Kagan dissent)
What’s next?

The U.S. Supreme Court remanded the case back to the Wisconsin Supreme Court to either select a different map submission or reconsider the Governor’s maps in a manner consistent with the Court’s opinion today.

An April 15 deadline looms: this will be the first day legislative candidates may circulate nomination papers to get on the ballot for the Fall election.

/by
,

Thompson Kane & Company, Inc. to Acquire Benton State Bank

Thompson Kane & Company, Inc., a Madison, Wis. based mortgage banking company, announced on March 23, 2022 that is has entered into a definitive agreement to acquire Benton State Bank, a community bank located in Benton, Wis. with assets of $76.6 million. This transaction is subject to regulatory approval and is expected to close by the fourth quarter of 2022.

Benton State Bank will continue to provide banking products and services through its existing locations, and the entire management team of the bank will remain in place. As a result of this transaction, Benton State Bank will be able to utilize Thompson Kane’s mortgage origination platform to grow and expand its lending operations.

“Benton State Bank is over 125 years old and we are thrilled that it will remain a community based, independent financial institution serving local businesses, farmers, homeowners, and consumers. We will lead the bank into the future with additional growth avenues and plenty of capital to finance our plan,” said Steve Malone, president and CEO of Benton State Bank.

“We look forward to expanding the product offerings for both of our customer bases,” said John C. Thompson, president and CEO of Thompson Kane. “Through additional capabilities provided by this transaction, we expect to be able to grow the combined entity significantly.” Thompson Kane will inject additional equity into Benton State Bank to enable it to expand its lending operations.

Scott Freiburger, currently the executive vice president, will become the president of Benton State Bank upon the closing of the transaction. “This transaction provides tremendous opportunity for our company, our customers, and the markets we serve. I am excited to help lead this bank as we expand credit availability in our communities. We believe adding the mortgage expertise and capabilities of Thompson Kane with Benton State Bank’s community focus will set us apart in mortgage lending. We are hopeful that the transition will create additional employment opportunities over time,” said Mr. Freiburger

/by
, ,

Executive Letter: New Attempts by California Law Firm Allege Accessibility Violation of Bank Websites

Rose Oswald PoelsBy Rose Oswald Poels

I have learned of recent activity by a California law firm contacting Wisconsin banks alleging the bank’s website is in violation of the California Unruh Act. The law firm, Pacific Trial Attorneys, engaged in similar activity in Wisconsin back in 2018.

The letter alleges the firm has been retained by a blind consumer to file suit against the bank, claiming the bank’s website is not fully accessible to blind users. The letter cites a California court case which held “disability access laws apply to commercial websites, including online-only businesses.”

If your bank receives such a letter, it is important to contact your legal counsel immediately. This law firm has a history of sending these letters to banks and other businesses and then promptly filing lawsuits against the bank/business, as is threatened in the letter. I suggest you not treat these letters as a “fishing expedition” but, rather, take them very seriously and work to respond with the advice of your counsel, promptly.

The letter references a violation of California law. Bank’s counsel need be in review of bank’s products and activities to identify whether the California law is applicable to the bank. While in review of bank’s website, I recommend you also consider whether bank’s website is in violation of the Web Content Accessibility Guidelines (Guidelines) as the California claim could potentially change from a violation of California law to a claim regarding violation of the Americans with Disabilities Act (ADA).

I also suggest you work with your website vendor to be sure your bank’s website complies with any relevant law, including the Guidelines and, if not, how quickly it can be changed to comply.

I further suggest that if it is not already in your legal contract with your website vendor, you should add provisions to your contract to put the burden of ensuring your bank’s compliance with the Guidelines on the vendor. And, if any legal demand or litigation is initiated against the bank claiming a violation of ADA or the Guidelines, that the vendor is wholly responsible.

I understand that receiving these kinds of letters from plaintiffs’ law firms is not only frustrating but can be a significant distraction from normal operations. However, as more commerce is done electronically including through bank websites, it is important to not lose sight of relevant law, including ADA-related guidelines, to the same degree you follow applicable requirements for physical access to your bank. There is not going to be any legislative change that would wholly exempt bank websites from any compliance with guidelines around providing access to the public including persons with disabilities. Consequently, it is very important for you to promptly respond to any such letter you receive.

Both the ICBA and ABA have materials on their respective websites available for members on the topic of ADA digital accessibility. WBA first wrote on the topic of ADA digital accessibility in the January 2017 issue of Wisconsin Banker.

Finally, WBA is collecting letters received by its member banks. If you have received a letter, we would appreciate your sending a copy to WBA’s Scott Birrenkott at sbirrenkott@wisbank.com. If you have any questions or would like to discuss this further, please contact Scott, Heather MacKinnon, or me.

/by
WBA logo

questions@wisbank.com

608-441-1200

4721 S Biltmore Ln.
Madison, WI 53718

Get our Newsletter!
Subscribe