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Distressed Lending Beyond the Bank Loan Portfolio

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Distressed Lending Beyond the Bank Loan Portfolio MAY/JUNE 2020 Distressed Lending Beyond the Bank Loan Portfolio Page 20 Understand your cybersecurity risk. Gain a trusted cybersecurity advisor and ensure your ISP is well-managed with CONSULTING services. Receive personalized NETWORK SECURITY testing tailored to your size and complexity. Go beyond a checklist with a risk-based IT AUDIT, reviewing for compliance and adequacy. Participate in uniquely designed, role-based, industry- specific cybersecurity EDUCATION. Contact David Edwards 913-225-6382 | [email protected] www.sbscyber.com Solutions that work for you. LENDING SERVICES INVESTMENT PRODUCTS 1 Bank Stock Loans — Acquisition, Capital Injection, Municipal Bonds and Shareholder Buy Back/Treasury Stock Purchase Mortgage-Backed Securities Officer/Director/Shareholder Loans ( Reg-O) Govt. & Agency Bonds Participation Loans Purchased/Sold — Commercial, Corporate Bonds Commercial Real Estate, Agricultural, and Brokered CDs Special Purpose Loans Money Market Instruments Leases Structured Products Equities OPERATIONAL SERVICES Mutual Funds Midwest Image Exchange – MIE.net™ ETFs Electronic Check Clearing Products 1 Information Reporting – CONTROL FINANCIAL SERVICES 1 Electronic Funds – Wire Transfers/ACH Investment Portfolio Accounting Risk/Fraud/Anomaly Detection Tools Portfolio Analytics Cash Management and Settlement Interest Rate Risk Reporting Federal Funds and EBA Asset/Liability Management Reporting Certificates of Deposit Municipal Credit Reviews International Services/Foreign Exchange International Services/Foreign Exchange Balance Sheet Policy Development & Review Safekeeping 1 Investment Products and Financial Services offered thru AUDIT SERVICES 1 Investment Products and Financial Services offered thru First Bankers’ Banc Securities, Inc. MEMBER FINRA & SIPC Audit Services provided by MIB Banc Services, LLC, a subsidiary of our holding company. INVESTMENTS ARE NOT FDIC INSURED, NOT BANK GUARANTEED & MAY LOSE VALUE. FOR INSTITUTIONAL USE ONLY. MEMBER FDIC mibanc.com Contact Tim Burns: 402-480-0075 CONTENTS 8 PRESIDENT’S MESSAGE: A TESTAMENT OF COMMITMENT 22 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 MAY/JUNE 2020 MAY/JUNE 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 EDITORIAL: Nebraska Banker seeks to provide news and information relevant to Nebraska and other news and information of direct interest to members of the bank’s loan portfolio as businesses face varying impacts 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 health crisis. of the NBA. Articles may be reproduced with written permission only. Gary Grote, Managing Director, Bridgepoint Investment Banking 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. TECH TALK: VIRTUAL IT AUDIT — NOT A NOVEL IDEA 22 SUBSCRIPTION: Subscription to the magazine, which began bi-monthly publication Security and IT professionals across the world have invested in May 2006, is included in membership fees to the NBA. a large amount of time and effort transitioning to a remote workforce. Nick Podhradsky, EVP — Sales, SBS CyberSecurity and ©2020 NBA | The newsLINK Group, LLC. All rights reserved. Nebraska Banker is Clinton Watkins, CISA, CCBSP — Senior IT Auditor, SBS CyberSecurity 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 25 COMPLIANCE ALLIANCE: A SOLEMN FAREWELL an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily TO REG. D’S CONVENIENT TRANSFER RESTRICTIONS represent the views of the NBA, its board of directors, or the publisher. Likewise, Effective April 24th, 2020 the Federal Reserve Board (FRB) the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Nebraska did away with a longstanding, and, in the opinion of some, Banker is a collective work and as such some articles are submitted by authors outdated rule in Regulation D. The Interim Final Rule amended 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 Reg. D by deleting the six convenient transfers and withdrawals with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact restriction that has become synonymous with savings accounts. the publisher at 855.747.4003. Michael Perez, Associate General Counsel NEBRASKA BANKERS ASSOCIATION 5 FARMING, OPTIMIZED. NBA BOARD OF DIRECTORS The operating portion of a farming customer’s portfolio is the most turbulant to handle each year. At Ag Resource Management (ARM) we partner with all levels of capital providers to get CHRIS HOVE ZAC KARPF farmers the funding they need to keep them moving forward. By combining proprietary NBA Chairman (308) 632-7004 technology with a deep understanding of crop agriculture, we’re able to help you manage that (402) 423-2111 Platte Valley Bank risk without interferring with real estate or equipment relationships. Nebraska Bank of Commerce Scottsbluff Lincoln JOHN F. KOTOUC CONTACT OUR LOCATIONS IN HASTINGS AND FREMONT TO SEE HOW THEY KIRK RILEY (402) 399-5088 CAN PARTNER WITH YOU OR VISIT ARMLEND.COM NBA Chairman-Elect American National Bank (308) 784-2515 Omaha Waypoint Bank Cozad STEVE D. KUNZMAN KATHRYN M. BARKER (308) 382-4000 (402) 894-7001 Home Federal Bank Core Bank Omaha Grand Island NICHOLAS W. BAXTER BRANDON MASON (402) 602-1839 (402) 918-5434 First National Bank of Omaha Bank of the West Omaha Omaha Kevin Cunningham CORY A. BERGT RAYMOND M. MCKENNA 2727 W 2nd Street, Suite 320 | Hastings, NE 68901 (402) 434-4122 (402) 363-7411 (402) 902-4251 | [email protected] Wells Fargo Bank, Cornerstone Bank N.A. Lincoln York Hannah Rupprecht JOHN BOTHOF KAYE L. MONIE 2727 W 2nd Street, Suite 320, Hastings, NE 68901 (402) 334-0300 (308) 368-5555 (402) 902-4251 | [email protected] Northwest Bank Hershey State Bank Omaha Hershey Bill Burton JOHN T. DAUBERT STEPHEN E. STULL 1720 W 23rd Street | Fremont, NE 68025 (402) 323-8008 (308) 262-1500 (402) 512-5166 | [email protected] Security First Bank Farmers State Bank Lincoln Bridgeport USDA is an equal opportunity provider, employer, and lender. To file a complaint of discrimination, write: USDA, OOce of the Assistance Secretary for Civil Right, 1400 Independence JUSTIN H. DOUGLAS JOSEPH T. SULLIVAN III Avenue, SW, Washington, DC 20250-9410 or call (866) 632- 9992 (Toll free Customer Service), (800) 877-8339 (Local or Federal relay), (866) 377- 8642 (Relay voice users). (402) 864-4191 (402) 348-6000 Mainstreet Bank U.S. Bank, N.A. Cook Omaha DANIEL A. FULLNER CHRIS WIEDENFELD (402) 454-1000 (402) 952-6015 Madison County Bank Great Western Bank Madison Omaha KARL W. GRAMANN CHRISTINE WILCOX (402) 988-2255 (402) 323-1067 Adams State Bank Union Bank & Trust Co. Adams Lincoln REX R. HASKELL LYDELL L. WOODBURY (402) 687-2640 (402) 563-3659 First Northeast Bank of Nebraska First Nebraska Bank Lyons Columbus KRISTA K. HEISS SCOTT A. ZIMBELMAN (308) 534-2877 (308) 784-2000 NebraskaLand National Bank Homestead Bank North Platte Cozad DONALD A. JIVIDEN ALAN D. EMSHOFF (402) 759-8113 NBA Past Chairman Heartland Bank (402) 266-5931 Geneva Generations Bank Exeter NBA EDITORIAL STAFF RICHARD J. BAIER KARA HEIDEMAN NBA President and
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