Archive for category: Advocacy

Tyler Foti
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Wisconsin Bankers Association Welcomes Tyler Foti as Director- Government Relations

Tyler Foti

Tyler Foti

The Wisconsin Bankers Association is pleased to announce the hire of Tyler Foti as the Association’s director – government relations. Foti will report to Lorenzo Cruz, vice president – government relations. Previously, Foti served as a legislative aide for then State Senator Scott Fitzgerald and in various positions navigating the legislative process and public policy, most recently at Michael Best Strategies. Sitting currently as Waukesha County Board Supervisor and serving on the Finance Committee, Foti enjoys collaborating with local leaders and providing solutions that produce immediate impact. He looks forward to working with state government officials and their staff on behalf of Wisconsin’s banking industry.

“We are very glad to have Tyler on board at WBA,” said Rose Oswald Poels, WBA president and CEO. “His talent and experience will help drive our mission to advocate for a healthy economic environment for Wisconsin communities.”

Outside of work, Foti enjoys sports and cooking — a unique combination that led him to Food Network’s “NFL Tailgate Takedown.” In this evening’s series finale, Foti and his teammate don their Packer jerseys and face off against tailgaters representing the Buffalo Bills. The winning duo — which will be announced tonight at 8 p.m. — takes home the “Yum-bardi Trophy.”

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High-Volume SBA-Approved Wisconsin Lenders to Receive FY22 Awards

The U.S. Small Business Administration’s (SBA) Wisconsin office is recognizing 14 lenders in 15 volume and specialty categories for FY2022, the twelve months ending Sept. 30, 2022. With total SBA-backed FY22 lending in Wisconsin reaching more than $789 million, community lenders again played a strong role with 12 of 15 awards going to Wisconsin-based lenders. For the first time, CAP Services, based in Stevens Point, made the most microloans of the six microlenders serving Wisconsin. The Wisconsin Women’s Business Initiative Corp (WWBIC), made the most SBA Community Advantage loans as one of five lenders statewide offering these loans at up to $350,000 to disadvantaged borrowers. WBD, Inc., made 297 SBA 504 loans for $255 million. U.S. Bank made the highest number of 7(a) loans, while Byline Bank loaned the highest dollar amount.

“SBA-backed lending in Wisconsin saw its second highest level in recent years with $789 million delivered to small business owners through SBA’s core lending programs in FY22. While a drop from the more than $1 billion in loans last year, lenders are still delivering much needed capital to Wisconsin’s startups and more seasoned entrepreneurs,” stated Eric Ness, SBA’s Wisconsin district director. “These high-volume lenders showcase the importance and continued availability of SBA-backed financing for small businesses at all stages of growth through Wisconsin’s many commercial and community banks, credit unions, CDC’s, CDFI’s, and other financing institutions.”

A complete list of Wisconsin’s SBA-approved lenders, along with daily updates and history on 7(a) and 504 SBA lending activity in Wisconsin, is available on the SBA Wisconsin website at sba.gov/wi under “Doing Business in our Area.”

The SBA will recognize its volume lenders at the 2023 Wisconsin Lenders Conference hosted by UW-Stevens Point on May 18. Find more information about the conference here.

Congratulations to several WBA members that will be receiving an award:

Wisconsin SBA Volume Lender Awards

  • Cleveland State Bank
  • First National Community Bank, New Richmond
  • Oostburg State Bank
  • Hiawatha National Bank, Hager City
  • Citizens Community Federal National Association, Altoona
  • Byline Bank, Brookfield

Wisconsin SBA Specialty Lender Awards

  • Ixonia Bank: Most Veteran 7(a) Loans Approved
  • Byline Bank, Brookfield: Most 7(a) Export Loans Approved
  • Nicolet National Bank: Most 504 Loan Participations
  • WBD, Inc., Madison: Most 504 Loans Approved
  • WWBIC, Milwaukee: Community Advantage Lender with Most Loans Approved
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Congratulations to the 2022 BIGG Award Winners

The Wisconsin Bankers Association is pleased to report that 35 institutions have been recognized with WBA’s BIGG (Bankers Involved in Grassroots and Government) for for their total involvement in advocacy in 2022. BIGG is the highest level of recognition for advocacy by our member banks.

To achieve BIGG status, institutions must meet at least five (5) of these seven criteria:

  • Have named an Advocacy Officer
  • Obtain Gold Triangle award
  • Contribute to WBA’s issue advocacy fund
  • Have at least one bank employee attend WBA Capitol Day
  • Have a member of the bank participate in a Federal delegation meeting or go on a D.C. regulatory trip
  • Have the bank hold a Take Your Legislator to Work Day
  • Other (e.g. testify on a bill, host a fundraiser, analyze legislation, etc.)

2022 BIGG Recipients

American National Bank Fox Cities, Associated Bank, Bank Five Nine, Bank of Brodhead, Bank of Sun Prairie, Bank of Wisconsin Dells, Bankers’ Bank, Bristol Morgan Bank, Capitol Bank, Charter Bank, Citizens First Bank, East Wisconsin Savings Bank, First Business Bank, Fortifi Bank, Greenwoods State Bank, Horicon Bank, Ladysmith Federal Savings and Loan Association, MidWest One Bank, Mound City Bank, National Exchange Bank & Trust, Nicolet National Bank, North Shore Bank, Oostburg State Bank, The Park Bank, The Peoples Community Bank, Premier Community Bank, Royal Bank, Security Financial Bank, State Bank of Cross Plains, The Equitable Bank, The Stephenson National Bank & Trust, Town Bank N.A., Unity Bank, Waldo State Bank, and Wolf River Community Bank.

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Banks Join in WBA Political Action Fundraising

We are happy to report that 46 institutions have now achieved Gold Triangle status for political fundraising in 2022. Gold Triangle is the highest level of fundraising recognition for banks and achieved through bank employee or director contributions to the Alliance of Bankers for Wisconsin (ABW) political conduit or Wisbankpac, or corporate contributions to WBA’s issue advocacy fund. ABW and Wisbankpac funds are utilized as part of our overall effort to support pro-banking candidates, regardless of whether they have an R or D next to their name. Issue advocacy dollars are used to in several capacities to shape public opinion on pro-banking, pro-business issues.

Demand on our political action funds is as high as it has ever been, and we are battling on numerous fronts in Madison. If you have not already done so, please consider contributing to WBA political action funds. You may contribute via credit card here.

2022 Gold Triangle Club Members

American National Bank Fox Cities, Associated Bank, Bank Five Nine, Bank of Brodhead, Bank of Sun Prairie, Bank of Wisconsin Dells, Bankers’ Bank, Bluff View Bank, Bristol Morgan Bank, Capitol Bank, Charter Bank, Citizens Bank, Citizens First Bank, Citizens State Bank of Loyal, East Wisconsin Savings Bank, The Equitable Bank, First Citizens State Bank, First National Community Bank, Fortifi Bank, Forward Bank, Greenwoods State Bank, Horicon Bank, Mound City Bank, National Bank of Commerce, National Exchange Bank & Trust, Nicolet National Bank, North Shore Bank, Northwestern Bank, Oak Bank, Old National Bank, Oostburg State Bank, Park Bank, The Peoples Community Bank, Peoples State Bank, Premier Community Bank, Security State Bank, Security Financial Bank, State Bank of Cross Plains, State Bank Financial, The Stephenson National Bank & Trust, Superior Savings Bank, Town Bank N.A., Unity Bank, Waldo State Bank, Wisconsin Bankers Association, and Wolf River Community Bank.

Gold Triangle Club Contribution Levels by Bank Asset Size

Bank Assets Total Banker Contributions
$0-100 Million $1,500
$100-250 M $2,000
$250-500 M $3,000
$500-750 M $4,000
$750 M – $1 Billion $5,000
$1 B+ $7,000

THANK YOU to all the banks, Gold Triangle or not, that have contributed to our advocacy efforts.

If you have questions or would like to make a contribution, please contact WBA’s Lorenzo Cruz, vice president – government relations.

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Executive Letter: Opportunities to Advocate This Spring

Rose Oswald PoelsBy Rose Oswald Poels

With the transition into the new year, so too begins the 2023–24 legislative session. As the Wisconsin Bankers Association (WBA) looks ahead to further engaging with our elected officials and acting on several key priorities including credit unions, regulatory modernization, and elder fraud in 2023, WBA members are also encouraged to make the most of the various opportunities offered by the Association to make their voices heard.

This spring, bankers from across the state are invited to join the WBA Government Relations team in Madison for the 2023 WBA Capitol Day as well as two WBA Washington Trips to meet with our congressional delegation — one in conjunction with the American Bankers Association (ABA) Washington Summit and the other in conjunction with the Independent Community Bankers of America (ICBA) Capital Summit.

Our 2023 Capitol Day, which will be held on Thursday, May 11, provides Wisconsin bankers with the invaluable opportunity to meet face-to-face with their representatives and demonstrate how public policy impacts a bank’s ability to aid in the economic growth and vitality of their community.

Annually, over 100 bankers and WBA Advocacy Officers are in attendance to receive updates from state Assembly and Senate leaders as well as assist the Association in conveying the role and value of our industry. Registration is open now, and more information will be provided for attendees as the event nears.

Additionally, the WBA will be in Washington, D.C. March 20–22 (bankers are encouraged to schedule late flights on the 22nd or stay until the 23rd given the House Republican schedule that week) for the WBA/ABA Washington Summit as well as May 14–17 for the WBA/ICBA Capital Summit. During these two trips, bankers can expect to hear from a variety of speakers as well as make trips to Capitol Hill to visit with those in our congressional delegation. Please note that during the WBA/ABA Washington Summit, Hill visits will likely occur both on March 21 and through mid-afternoon on Wednesday, March 22 given that the House Republicans will not be in office until Wednesday of that week.

All WBA members, regardless of their membership to either national trade group, are welcome and invited to join WBA’s Washington Trip on either date. Please let WBA know if you are interested in attending one of these two key summits at your earliest convenience. You may register now for the WBA/ABA Washington Summit.

Grassroots advocacy is a fundamental aspect of WBA’s efforts in supporting the industry, and your involvement is critical to the success of our advocacy priorities. Although very few legislators have experience in banking, bankers are looked upon as trusted members of the communities our elected officials represent and are essential in reinforcing the impact legislative proposals will have on your community, bank, and industry.

Thank you for your continued grassroots involvement for the betterment of the banking industry, and I hope to see you and/or other members of your team this spring either at the State Capitol in Madison or on the Hill in D.C.

2023 WBA Capitol Day WBA/ABA Washington Summit WBA/ICBA Capital Summit (Opening Soon!)
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Climate Risk Regulations Will Likely Target Community Banks

By Jeff Gruetzmacher

Community banks have generations of experience managing concentration risks and responding to extreme weather events and natural disasters in their communities. They have long weighed a broad range of risks involved with investing in businesses and asset classes and have employed a range of risk management strategies such as hedging and hazard, crop, flood, and life insurance.

Bankers know their communities and loan portfolios better than anyone else, as evidenced by the absence of community bank failures following severe weather events.

While several federal regulatory agencies are working to finalize proposals on climate-related financial risk management that target the nation’s largest financial institutions, the proposals would inevitably subject Wisconsin community banks and the communities they serve to new and expensive regulatory burdens. This new onerous framework is counterproductive and unnecessary.

Climate risk management frameworks proposed by the Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and the Federal Reserve Board (FRB) purportedly target banks over $100 billion in assets, but regulators have publicly signaled the policies will ultimately trickle down to community banks. Regulation creep is real, as evidenced by the Current and Expected Credit Loss (CECL) regulations.

The FDIC recently said in a speech at the American Bankers Association’s (ABA) Annual Convention in October that all financial institutions are subject to climate-related financial risks, while the OCC stated in March of 2022 that their examiners will conduct climate risk management examinations on community banks in the coming years. Regulators have made their intentions clear: community banks will not get a pass.

The largest conundrum is how community bankers can assess their risks of climate change, without customers first accounting for climate risks themselves? And what resources and costs will be necessary for customers to perform their own climate risk assessment and disclose required greenhouse gas emissions data as a condition of banking? These extra costs will also burden rural communities and citizens.

For example, will a dairy farmer need a methane gas emission report to obtain a loan? Will banking the local gas station be red flagged by regulators? And what about a trucking company using older diesel trucks and not enough electric ones? How risky is banking a manufacturer making artic boots when we might have milder winters?

Even consumers could be a target of additional oversight and reporting. Will homes financed need to have a renewable energy heating system or efficiency score? The practical questions are limitless.

An open-ended climate risk regulation may give birth to endless and costly rabbit holes that community banks will be forced to go down in an effort to play infinite what-if games.

Community banks could also be forced to pick favorites in industries that are disfavored but legal. Some question if this is a reintroduction of “Operation Choke Point” version 2.0, where the agencies use the financial system to pick winners and losers in industries that Congress itself continues to make legal.

And then let’s talk about costs. Community banks would have to pay a myriad of expenses to comply with climate risk management frameworks — including hiring subject matter and compliance experts to implement these complicated frameworks.

Finally, overlooked but problematic, is the Securities and Exchange Commission’s (SEC) proposal to institute climate-related investor disclosures, which contains no exemption for community banks. This threatens to impose unprecedented costs and potential liabilities that would drive local institutions out of the public capital markets.

Rather than impose new climate-related rules on community banks, regulators should continue to utilize existing and effective risk management supervision practices that have long been proven and sound.

The conversation shouldn’t be about introducing new regulations — the conversation should be about what community banks will continue to do, as they have for generations, to successfully mitigate all risks, including climate. Additional regulatory frameworks and burdens are simply not needed.

Gruetzmacher is senior vice president and director at Royal Bank, Elroy. He serves on ICBA’s Agriculture — Rural America Committee and is a past chair of the WBA Agricultural Bankers Section Board of Directors.

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Supporting WBA’s Advocacy Infrastructure, a Key to Success

By Lorenzo Cruz

With the fall elections finally behind us, the Wisconsin Bankers Association (WBA) can begin pivoting in preparation for the 2023 legislative session and another round of elections occurring this spring. The passage of a state budget that includes a $6.6B budget surplus will occupy the time of most legislators, the Governor, and state agency heads. A State Supreme Court race and a special election for the 8th State Senate District will keep the candidates busy and usher in another flood of campaign spending.

Last year, outside groups shattered the previous record and spent more than $93M on the Governor and other state races, according to the Wisconsin Democracy Campaign. The skyrocketing campaign costs and the increasing need to support pro-banking candidates requires WBA to double down on the financial equation of its advocacy infrastructure. With the start of the new year, our Association is kicking off two new initiatives — the WBA Leadership Circle and the Hall of Fame — and making changes to contribution levels for the Silver Triangle Club and Gold Triangle Club.

New Opportunities to Engage

WBA’s Leadership Circle is for major investors and passionate bankers who are committed to investing and creating a healthy future for member banks and the communities they serve. To join the Leadership Circle at the platinum level, a major investor would need to contribute $3,000 or more annually to Wisbankpac (PAC) and/or Alliance for Bankers Conduit (ABW).

To achieve Hall of Fame designation, a major investor would need an aggregate lifetime investment of $25,000 or more. Leadership Circle and Hall of Fame investors benefits could include: lapel pins, certificates, pens, online recognition, Wisconsin Banker picture recognition, Capitol Day/Conference recognition, and exclusive invitation to special events.

The personal contribution level has been increased from $500 to $1,000 for the Silver Triangle award. Individual bankers can earn the award by contributing $1,000 to any combination of the PAC, ABW, or WBA’s issue advocacy fund. Silver Triangle recipients are honored annually at WBA’s Bank Executives Conference.

To receive WBA’s Gold Triangle recognition, the total contribution amounts for banks based on assets have been increased to:

Gold Triangle is the highest level of bank fundraising recognition which can be achieved by employees contributing to the PAC or conduit or through corporate contributions to WBA’s issue advocacy fund.

Looking Ahead

As we transition into 2023, it is critical that bankers join forces with the Government Relations team to replenish the depleted coffers for the PAC, conduit, and issue funds. Growing the funds allows us to support pro-banking elected officials and provides a seat at the table for those able to positively shape and influence legislation and rules impacting the industry. WBA urges Advocacy Officers to meet with bank employees to encourage them to help us meet the year-end 2023 goal of raising $300,000 in political donations.

While WBA’s advocacy infrastructure is strong, it is important to build and expand upon it. Last year, our industry faced many legislative threats, from credit unions to credit card swipe fees. These challenges will likely return in 2023 as well as a wide range of other issues like elder fraud, taxation, banking modernization, fair access, trust code, and privacy. Our Association and its members cannot afford to be bystanders while other organized and well-financed groups push legislative solutions that are harmful to banks.

While WBA is taking a proactive lead to ensure that public policies adopted are beneficial to the industry, it is critical to enlist the help of bank leaders to expand the base by designating an Advocacy Officer if they have not already done so. Moreover, WBA’s Government Relations team calls upon all bank executives, Advocacy Officers, and bankers to step up and answer the call to support WBA’s advocacy infrastructure by joining the Leadership Circle, being a Hall of Fame member, becoming a Silver Triangle member, and achieving Gold Triangle and BIGG recognition.

Now more than ever is the time to unify behind strengthening and expanding WBA’s advocacy infrastructure. The political stakes are high, but together we can function as one united voice amplifying WBA’s priorities at the State Capitol while protecting the interests of member banks doing business in Wisconsin.

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Spring 2023 Washington, D.C. Summits

Each spring, the Wisconsin Bankers Association (WBA) travels to Washington, D.C. alongside both the American Bankers Association (ABA) and Independent Community Bankers of America (ICBA) to visit with those in our congressional delegation.

WBA members, regardless if their bank is a member of one of the national trade groups, are encouraged to join us and make their voice heard on the Hill during one of these two advocacy trips!

The first trip, the WBA/ABA Washington Summit, is scheduled for March 20–22, 2023*. A virtual option is also available. For more information and to register, please visit aba.com/summit.

The second trip, the WBA/ICBA Capital Summit, will take place May 14–17, 2023. More information and registration for the event will become available in early 2023. Please visit icba.org/capitalsummit to learn more.

The WBA spring summits prove themselves vital each year in providing bankers throughout Wisconsin with insights into policymaking and allow bankers to advocate on behalf of their industry. If you have any questions, please contact WBA.

*Hill visits will likely occur both on March 21 and mid-afternoon on Wednesday, March 22 since the House Republicans will not be in office until Wednesday that week. Attendees should schedule flights to leave later on March 22 or stay until March 23.

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ABA Update: How Bankers United to Play Defense Against Durbin Expansion

By Rob Nichols

There’s a saying that “everything old is new again,” and that’s certainly an adage you can bank on in Washington, D.C. — especially when it comes to poor public policy proposals.

A textbook example of this unfolded during the 117th Congress, when our industry found itself once again facing a bad idea that we thought had been soundly defeated: placing restrictive routing mandates on credit cards, like those imposed on debit cards by the Durbin Amendment over a decade ago. The idea came in the form of a bipartisan bill — the so-called Credit Card Competition Act — introduced in the Senate by Sens. Dick Durbin (D-Ill) and Roger Marshall (R-Kan.) and in the House by Reps. Peter Welch (D-Vt.) and Lance Gooden (R-Texas).

Bankers know all too well that the 2010 Durbin Amendment had disastrous consequences for banks and their customers: it increased the costs of checking accounts and debit cards and ultimately led to the elimination of popular debit card rewards programs. The Durbin Amendment’s most damaging provisions apply to banks of all sizes, causing a nearly 25% cut in the per-transaction debit card revenue earned by banks with under $10 billion in assets. At the same time, it helped line the pockets of large retailers who talked a big game about passing savings on to consumers — but 10 years’ worth of data tells us that simply isn’t what happened. In fact, the Federal Reserve published a study finding that only 1% of merchants lowered prices for consumers since the Durbin price controls took effect.

What’s more, the Credit Card Competition Act also goes several steps further than the Durbin amendment — not only would it require banks to add a second network to their customers’ cards, but it would limit them to options set by the Fed, unlike the Durbin Amendment, which allowed banks to choose between any two unaffiliated networks. The Credit Card Competition Act also requires banks to accept virtually any kind of transaction — functionally requiring them to onboard potentially many more than two networks, even networks that don’t meet basic data security standards.

Given the potentially catastrophic effect the bill could have on community banks and bank customers — while providing no tangible cost savings or benefits for consumers — the industry sprang into action to set the record straight.

Immediately following the bill’s introduction, ABA led a coalition of eight national financial services trade groups in issuing a statement of strong opposition to the bill. We then followed this up with numerous letters, op-eds, grassroots calls to action, and co-branded ads with the Texas and Kansas Bankers Associations that ran in their respective districts. The efforts were amplified by an op-ed from the Florida Bankers Association and a creative “Don’t Let Congress Steal Your Credit Card Rewards!” social media campaign from the Missouri Bankers Association. In early December, we then expanded that effort into an all-out media blitz to stave off any last-minute efforts to attach the bill to a must-pass piece of yearend legislation.

Every step of the way, our efforts at the national level were complemented by robust advocacy efforts by our partners at the state bankers associations, who stepped up to make calls, attend Washington fly-ins, pen letters and columns, and even appear on national TV to address our concerns about the bill.

Together, we blanketed Capitol Hill with a succinct, united message: the Credit Card Competition Act is terrible public policy that should not be enacted.

Our combined efforts proved the hollowness of this bill — it failed to attract a single cosponsor beyond the initial two in both the House and Senate or gain enough support to advance as a standalone measure and was successfully blocked from any other bills moving through Congress as the lame-duck session came to a close.

This win underscores the tremendous value of our state association alliance and demonstrates the power that our industry can have when we unite behind one message. It’s also an important reminder about vigilance.

We can’t say for certain whether and how these bad ideas will rear their heads again in Congresses to come. But what we can say is that if they do, our industry will be ready to respond.

Nichols is president and CEO of the American Bankers Association.

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