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BANKERS WISCONSIN 2019 DECEMBER ASSOCIATION FOUNDED 1892 FOUNDED 2 DECEMBER 2019 Think Different, Act Different, Be Different Bank Executives Conference | Feb. 3-5, 2020 | Kalahari Convention Center | WI Dells By Mark Meloy leaders to take innovative I would like to officially approaches to old and new Schedule At-A-Glance: invite all Wisconsin banking Message from obstacles that are specific to Monday, February 3 executives and industry leaders the Chair your institution. » 2:30 - 4 p.m. to join me at the upcoming Mark Topics covered by the Bankers-Only Peer annual Bank Executives Meloy expert speakers will include Group Discussions the future of payments, » 4 - 6 p.m. Conference (or “Bank Execs” Welcome Reception as many of us call it). This transforming your product is our association’s premier centric culture to a consumer Tuesday, February 4 event, featuring invaluable our normal conference in centric one, leading your » 8:30 a.m. - 5 p.m. Conference Sessions networking opportunities a “different” way is that business to right fintech products and services to stay » 6 -10 p.m. and hours of education and this setting is perfect for Chairman’s Dinner Program development from nationally a more casual networking relevant, accelerating value and Banker of the Year recognized speakers and environment. Networking creation through analytics, Celebration and more. thought leaders. is always one of the most Wednesday, February 5 I’m also looking forward In the spirit of our valuable parts of this event, and » 8:30 a.m. - Noon conference theme of “Think we are confident this approach to the dinner and reception Conference Sessions on Tuesday evening, where Different, Act Different, Be will only enhance your » See the article on p. 11 for Different,” for the first time conversations and interaction we will celebrate with more details. Register at: we’ll be hosting our event with others. the Banker of the Year and www.wisbank.com/BankExecs. at the Kalahari Convention An advisory group of our enjoy the always-popular Center in Wisconsin Dells on peers has designed an agenda Euchre Tournament. February 3-5, 2020 (Monday that will provide a unique Meloy is CEO of First Business Think | Act | Be – Wednesday). One of the set of tools, techniques, and Bank, Madison and the 2019- DIFFERENT. advantages of approaching tactics for you and your bank’s 2020 WBA Chair.

JANUARY 9, 2020 JANUARY 10, 2020 Alliant Energy Center The Florian Gardens Conference Center 1919 Alliant Energy Center Way, MadisonSponsored by2340 the Lorch FDIC Avenue, Eau Claire 608-267-3976 715-832-8836

JANUARY 9, 2020 – Madison JANUARY 10, 2020 – Eau Claire 11:30 a.m. to 2 p.m. 11:30 a.m. to 2 p.m. (Includes lunch at noon) (Includes lunch at noon) Welcome: Welcome: JEFF MAYERS PAUL D. KOHLER WisPolitics.com and Wisbusiness.com Charter Bank, Eau Claire Register online at: Topics • Regulatory Panel Speakers: www.wisbank.com Speakers:Include: • Emerging Issues – JAMES BULLARD, President and CEO /EconomicForecast. DENNIS WINTERS,Funds Chief ManagementEconomist Federal Reserve Bank of St. Louis Wisconsin Departmentand Third of Workforce Party Risk Development Wisconsin Governor MADISON DAVE ARMSTRONG, Executive Director• We’ve Been Hacked! TONY EVERS (invited) Barron County Economic Development Corporation• Urban Myths and Legends

$75 per person I $400 for a table of 8 CLAIRE EAU • We’re Growing the Bank $50 per person I $350 for a table of 8 • Risk Focused Supervision Questions: Contact [email protected] or 608-441-1252. DECEMBER 2019 3 4 DECEMBER 2019 There’s Still Time to Get Your Donations In The banking industry coalition partners to craft  BIGG Award pro-business public policy This award represents needs your support Advocacy messages to the general public, the highest achievement and participation Update opinion leaders, and elected level for bank involvement and By Jon Turke Jon Turke officials. No individual or bank advocacy. Awards are We are now less than one year is listed on those donations. objectively based on meeting away from the 2020 General five of seven criteria: Election. Thanks to your  Gold Triangle Club 1. Be a WBA Gold Triangle support, WBA was able to GOLD TRIANGLE CLUB LEVELS Gold Triangle Club banks Award Winner; disburse over $400,000 to Total Bank are at the forefront of the 2. Bank staff contacting Bank Assets candidates and campaign Contributions banking industry’s political state and federal legislators committees over the course $0-25 M...... $500 action effort. To qualify for through grassroots e-mails; of the 2018 election cycle. $25-100 M...... $1,000 membership in the Club, bank 3. Hosting a “Take Your As we turn the calendar to $100-250 M...... $1,500 employees and directors must Legislator to Work Day” by $250-500 M...... $2,000 contribute a minimum amount bringing in an elected official the election year, candidates $500-750 M...... $2,500 into your bank; are already building their $750M-$1 Billion...... $3,500 to WBA’s political action campaign war chests. $1 Billion+...... $4,500 funds (the Alliance of Bankers 4. Attending the WBA And before we look too for Wisconsin political conduit Capitol Day; far ahead to November, let’s and WBA’s political action 5. Attending either an ABA not forget Spring Elections for Advocacy Fund. ABW committee, Wisbankpac) or ICBA Washington Summit; State Supreme Court and many is like your own political apportioned by bank asset size 6. Contributing to the WBA other local races will be on the bank account that you deposit (see chart, above). Issues Advocacy Fund; or ballot in April. The industry funds into and then direct Individual contributors qual- 7. Other activities, such as must be well-positioned to WBA where to disburse it. ify for the Silver Triangle Club testifying before Congress or support pro-banking candidates Donations to the PAC allow after donating at least $500. the Wisconsin Legislature, at every level of government. individuals to support the Gold Triangle Banks and hosting a fundraiser, or The WBA Board of industry without needing to Silver Triangle Individuals analyzing legislation for WBA, Directors set a goal of having authorize where the funds go. are honored annually at the to name a few. 70% of member banks donate The WBA Issue Advocacy Bank Executives Conference. If you have any questions, at least $1 to our political Fund is an opportunity for Additionally, qualifying for contact Jon Turke at 608-441- funds. Those include the your bank to contribute these clubs helps your bank 1215 or [email protected]. Alliance of Bankers for corporate dollars that are achieve the Bankers Involved Wisconsin (ABW) conduit, pooled with those from in Grassroots and Government Turke is WBA director Wisbankpac, and the Issue other Wisconsin business (BIGG) Award. –government relations.

The following list of banks have gone above and beyond by increasing their 2018 level contributions for » Above and use in defense of the banking industry. Thank you! » American National Bank-Fox Cities, Appleton » Forward Bank, Marshfield Beyond the » Bank of Deerfield » Investors Community Bank, Manitowoc Call of Duty! » Bank of Sun Prairie » Ixonia Bank » Bank of Wisconsin Dells » KeySavings Bank, Wisconsin Rapids » Bankers’ Bank, Madison » Mound City Bank, Platteville » Capitol Bank, Madison » Nekoosa Port Edwards State Bank » Charter Bank, Eau Claire » North Shore Bank, SSB, Brookfield » Citizens Bank, Mukwonago » The Northwestern Bank, Chippewa Falls » Citizens State Bank of Loyal » Partnership Bank, Tomah » Commerce State Bank, West Bend » Port Washington State Bank » Community State Bank, Union Grove » Premier Community Bank, Marion » Coulee Bank, La Crosse » State Bank of Cross Plains » Dairy State Bank, Rice Lake » Wells Fargo, Milwaukee » The Equitable Bank, SSB, Wauwatosa » Farmers & Merchants State Bank, Waterloo »Farmers State Bank of Waupaca » First Bank of Baldwin » First National Bank, River Falls Thank you! DECEMBER 2019 5

CAN WE HELP OUR CLIENTS BECOME EXPORTING EXPERTS?

In Wisconsin®, we can. By connecting with the Wisconsin Economic Development Corporation and our network of international business development partners, you can increase the value you bring to your clients. We act as an extension of your team to help businesses enter new markets by providing subject matter expertise and facilitated introductions to qualified distributors and/or buyers. We even offer a variety of low to no-cost programs and services to help companies launch and maintain successful exporting strategies. Learn more at WEDC.org/psp.

7811-01_PSP-Export_PrintAd_9x12_NoBleed_v1.indd 2 10/31/19 10:01 AM 6 DECEMBER 2019 Status of USDA Regulations on Hemp Production USDA publishes interim final rule on Oct. 31, 2019

Has USDA Published a Rule for the 2020 hemp season, Visit www.wisbank.com to learn Establishing Regulations to and is waiting for the State Compliance more about this topic and other Produce Hemp? Legislature to approve Q&A compliance-related issues. QAnswer: Yes. legislation to align Wisconsin The United States Scott law with the 2018 Farm Bill. Birrenkott Department of Agriculture provisions to approve plans At this time, DATCP expects to (USDA) published an interim submitted by States for the begin the new program under Afinal rule (rule) on Oct. 31, domestic production of hemp. the 2018 Farm Bill in 2021. 2019 specifying rules and It is WBA’s understanding Birrenkott is WBA assistant director that the Wisconsin Department regulations to produce hemp. own USDA-approved plan. The – legal. For legal questions, please The rule is directed by the program includes provisions of Agriculture, Trade and Con- email [email protected]. Agriculture Improvement for maintaining information sumer Protection (DATCP) will Note: The above information is not Act of 2018 and is effective on the land where hemp is submit a Hemp Program Plan intended to provide legal advice; Oct. 31, 2019 through produced, testing of THC to USDA. However, DATCP rather, it is intended to provide Nov. 1, 2021. levels, disposing of plants not will continue under the 2014 general information about banking The rule establishes a meeting certain requirements, Farm Bill provisions in 2020. issues. Consult your institution’s Federal plan for producers in and licensing requirements. DATCP has begun its hemp attorney for specific legal advice States that do not have their USDA has also outlined licensing as of Nov. 1, 2019, or assistance.

WBA Bankers Meet with Four Regulatory Agencies

Bankers meet with Left: WBA and Wisconsin bankers met CFPB, FDIC, FHFA, with FDIC Director Martin Gruenberg regarding cannabis banking, national FinCEN senior staff rate caps, CECL, and consolidation Recently, WBA’s Rose Oswald of the banking industry among other topics. Poels led a delegation of 11 Wisconsin bankers to meet Below: SARs and CTRs (raising with the senior staff at FHFA, thresholds) were two of the topics FinCEN, FDIC, and CFPB in brought up during the FinCEN meeting. Washington D.C. The meetings informed and educated the senior staff of these agencies about the dynamics of Wisconsin’s banks and the local economy and how new FinCEN staff made a point regulations are impacting of sharing that all SARs are community banks. reviewed either by a human All the regulators said or AI within 24-48 hours more than once how much they of receipt, and they view SARs appreciated hearing directly as incredibly valuable to from the bankers the impact law enforcement’s ability to the rules have on their banks’ catch criminals. ability to serve customers. A big “Thank You” goes Topics tackled during these out to the bankers who » Gary Kuter, Capitol » Dan Shepard, Waukesha meetings included BSA/AML accompanied Oswald Poels Bank, Madison State Bank (CTR, Beneficial Ownership, on the trip: » David McCoy, First » Glen Stiteley, Investors etc.), QM/ATR, brokered » Heidi Conde, Commu- National Bank & Trust Co., Community Bank, Manitowoc deposits, cannabis banking, nity State Bank, Union Grove Beloit » Scot Thompson, CECL, CRA, GSE Reform, » Dave Feldhaus, Federal » Dan Peterson, The Denmark State Bank the importance of FHLBC, Home Loan Bank–Chicago Stephenson National Bank & » Mark Wierman, Ixonia knox box security concerns, » Corey Hoze, Associated Trust, Marinette Bank and HMDA. Bank, Milwaukee » Tom Reil, Waldo State Bank DECEMBER 2019 7

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Celebrating 125 years of providing the Silver Lining to our valued customers. 8 DECEMBER 2019 2020 Economic Forecast Luncheon Held in Two Locations Again Local business clients, bankers to gain economic insights Last year marked the first regional and national economic their views and information on time WBA held its annual trends so you are better prepared trends affecting Wisconsin’s Wisconsin Economic Forecast for the possible impact on the economy and the nation. Luncheon in two locations, Badger State’s economy. Don’t miss this unique Eau Claire and Madison. Both Presented by the Wisconsin opportunity to gain valuable events were such a success that » January 9 I Madison Bankers Association, this insight into the economy and WBA is hosting its luncheon in » January 10 I Eau Claire premier event draws more than network with the business, both locations again. » Register at www.wisbank.com/ 500 business, government, and government, and community The Wisconsin Economic Economic-Forecast-Luncheon community leaders. For over leaders who attend this event Forecast Luncheon is a local store for Wisconsin’s economy 13 years, this event has featured each year. opportunity for business pro- in 2020! The nationally recog- nationally recognized economists Details about each location fessionals to know what’s in nized speakers will focus on both and thought leaders who share are below.

JANUARY 9, 2020 I MADISON JANUARY 10, 2020 I EAU CLAIRE Alliant Energy Center, 1919 Alliant Energy Center Way The Florian Gardens Conference Center, 2340 Lorch Avenue 11:30 a.m. to 2 p.m. (includes lunch at noon) 11:30 a.m. to 2 p.m. (includes lunch at noon) Speakers: Speakers: JAMES BULLARD, President and CEO DENNIS WINTERS, Chief Economist – Federal Reserve Bank of St. Louis Wisconsin Department of Workforce Development TONY EVERS, Wisconsin Governor (Invited) DAVE ARMSTRONG, Executive Director Bullard is the president and CEO of the Federal Reserve Barron County Economic Development Corporation Bank of St. Louis. In that role, he is a participant on the Federal Winters is a nationally recognized expert on human resource Reserve’s Federal Open Market Committee (FOMC), which meets challenges in the competitive global economic environment. regularly to set the direction of U.S. monetary policy. He also He has expertise in economic analysis, modeling and fore- oversees the Federal Reserve’s Eighth District, including activities casting; encompassing everything from designing commodity at the St. Louis headquarters and its branches in Little Rock, Ark., derivative strategies to long-term policy initiative scenario assess- Louisville, Ky., and Memphis, Tenn. ments. His areas of focus include regional and national macro- A noted economist and scholar, his positions are founded economics, energy and labor markets, and economic impact on research-based thinking and an intellectual openness to new analysis. He has served as an advisor to private industry, govern- theories and explanations. He is often an early voice for change. ment agencies, and elected federal, state, and local officials. Evers is the 46th governor of Wisconsin. Prior to his election, Armstrong is the Executive Director of Barron County he served as the Wisconsin State Superintendent of Public Economic Development Corporation, which has three areas of Instruction winning statewide elections in 2009, 2013, and focus: business services, community development, and tourism. 2017. With over three decades of public education experience, He is a serial entrepreneur starting two successful companies. Governor Evers has dedicated his life to fighting for Wisconsin’s In 1996 he sold the assets of Med-Works Inc., and relocated to kids and serving the people of Wisconsin. Sarasota, Florida where he was vice president of Screening and He began his career in 1976 and has served Wisconsin Collection Services and directed the Mergers and Acquisition students, parents, and citizens all over Wisconsin in Tomah, efforts of HealthComp Evaluation Services Corporation and later Oakfield, Verona, and Oshkosh. ClinNet Services LLC, purchasing 14 businesses. Registration Options: Registration Options: » Table Registration – includes 8 seats: $400 » Table Registration – includes 8 seats: $350 » Individual Registration: $75 » Individual Registration: $50 » Student Table Registration – includes 8 seats for your bank » Student Table Registration – includes 8 seats for your bank to sponsor and host a local school: $250 to sponsor and host a local school: $250 Sponsorship Opportunities: Sponsorship Opportunities: » General Luncheon Sponsor – includes one table of 8 seats General Luncheon Sponsor – includes one table of 8 seats and and sponsorship recognition: $2,500 sponsorship recognition: $1,000

Register at: www.wisbank.com/Economic-Forecast-Luncheon I Questions: Patty Rogers at 608-441-1209 or [email protected]. DECEMBER 2019 9 10 DECEMBER 2019

Together, let’s make it happen. Callie Schlieman Call me at 701.433.7430

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Member FDIC 24140 DECEMBER 2019 11 A “Different” Take on The Annual Bank Execs Conference Join your fellow bankers for the largest networking banking event in Wisconsin Join the largest gathering of Wisconsin bank executives for Think | Act | Be a celebration of our industry from Feb. 3-5, 2020 in DIFFERENT. Wisconsin Dells. Attendees Bank Executives Conference Take advantage will continue to benefit from February 3 - 5, 2020 l Wisconsin Dells informative speakers, invaluable of early bird pricing networking opportunities, and and register for entertainment although there the conference will be new and “different” by Dec. 27, 2019. approaches throughout the Register online at event, all designed to enhance www.wisbank.com/ Wisconsin’s biggest banking event of the year. BankExecs. “Think Different. Act Different. Be Different.” is the theme for the conference. The event will offer a unique set of tools, techniques, and A “different” option of the The afternoon general This year’s Bank tactics for you and your bank’s day is our first-ever Innovation sessions will dive into the Executives Conference will leaders to take innovative Alley. This is a part of our future of payment systems conclude on Wednesday with approaches to old and new exhibit hall and was created to as well as accelerating your economist Anirban Basu obstacles alike that are specific allow technology companies bank’s value creation through providing his to your institution. to demonstrate the latest and analytics. The last session take on the In the spirit of the greatest in the FinTech space, of day will feature former current state conference theme, the event where customer experience, Wisconsin Badger Jake Wood, of the economy. will be hosted at the newly data and analytics, regulation Cofounder Attendees will expanded Kalahari Convention technology, and security are and CEO of Basu also hear the Center in Wisconsin Dells. some of the technologies that Team Rubicon. amazing story of Richard will be on display. Attendees will Montañez. Montañez, On Tuesday, the very first benefit from a janitor for PepsiCo’s Rancho session encourages attendees Wood hearing Wood’s Cucamonga plant, Visit Innovation Alley to “Think journey from college foot- took notice of Different” as ball’s largest stadiums, to in the Exhibit Hall… a mistake on Duncan the battlefields of Iraq and the Cheetos this “different” option Wardle, a 25- Afghanistan, to the founding production line lets technology year veteran and development of America’s in 1976 and Montañez Wardle companies demonstrate of Disney, fastest growing disaster turned it into a life-changing the latest and greatest focuses on how to think more response organization, the snack idea. Today, Flamin’ highly acclaimed Team Rubicon. in the FinTech space. audaciously to solve big and Hot Cheetos is a billion- small challenges that lead to After sessions wrap up dollar business, a cultural extraordinary results. Following for the day, attendees will phenomenon, and proof Featuring state-of-the-art event this presentation, enjoy the Chairman’s Dinner, that—no matter how different technology, larger meeting and Lee Wethering- showcasing the Banker of you appear—anyone can exhibiting rooms, and a more ton, Jack Henry & the Year Celebration, and a casual atmosphere conducive Associates, Inc., reception featuring a casino make a difference and to networking, the Kalahari tackles the topic and (back by popular demand) accomplish their dreams. embodies the idea of changing of fintech in Wetherington the WBA Euchre Tournament. His amazing journey captures things up to enjoy greater results. a completely different way… Additionally, dinner speaker how developing a solid Back by popular demand, Everyone has heard a lot Charlie Cook, foundation of diversity and the conference will kick off the about fintech. What is it? Why The Cook Political inclusion in today’s business afternoon of Monday, Feb. 3 have it? The truly unanswered Report, will share environment can ultimately with networking peer group question is ‘How do I lead my his take on the drive external success. meetings for c-suite bankers community bank to the right politics of the To find out more about the (CEO, CFO, CIO/CTO, products and services to stay day including Cook 2020 WBA Bank Executives CERO, COO), followed by relevant?” That’s the practical reporting on the Iowa Caucus Conference or to register opportunities for dinner with insight Wetherington will which is being held at the online, please visit www. WBA Associate Members. offer attendees. same time as our conference. wisbank.com/BankExecs. 12 DECEMBER 2019

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Forbin.com/WBA (877) 595-4944 fi[email protected] DECEMBER 2019 13 Bankers, the Final Overtime Rules are Finally Here Final overtime rule exemption, and therefore, scheduled to go into Banks should review their because banks must generally effect Jan. 1, 2020 pay practices to ensure they comply with both state and » www.boardmanclark.com understand which positions federal law, banks in Wisconsin By Douglas E. Witte and /business/banking in their workforce must be cannot rely on the highly comp- Jennifer S. Mirus paid overtime, whether they ensated employee exemption. For the last three years we are paying overtime in a » Action Plan for Banks have been writing about the » Salary Threshold Increased compliant manner, and which Banks should review their new overtime rule under the The most significant positions may qualify for pay practices to ensure they Fair Labor Standards Act change in the new rule is an an overtime exemption. understand which positions (FLSA). The rule, primarily increase to the minimum salary in their workforce must be aimed at increasing the threshold that is needed to paid overtime, whether they outdated salary thresholds for qualify for exempt status. The anniversary year). If, by the are paying overtime in a the “white collar” overtime new minimum salary threshold last pay period of the 52-week compliant manner, and which exemptions, was first will be $684 per week period, the employee’s total positions may qualify for an proposed under the Obama (annualized to $35,568 per compensation (salary plus overtime exemption. Administration. On the eve year). This is a slight increase non-discretionary bonuses, Banks should evaluate of taking effect it was blocked from the March proposed rule incentive compensation, and not only whether changes by the courts. The overtime of $679 per week (equivalent commissions) is less than to exempt status will be rule has been revised and now to $35,308 per year). Payment $35,568, the bank may make necessary, but should explore reissued by the Department can also be made bi-weekly one final payment to meet this options to address the new of Labor (DOL) under the at $1,368; semi-monthly at threshold no later than the next rules. For example, banks with Trump Administration. The $1,482; or monthly at $2,964. pay period following the end exempt workers who currently “final” rule has been issued The final rule does not contain of the year. This payment may earn more than $455 per week and will go into effect on an automatic indexing or only be counted toward the prior but less than $684 per week, Jan. 1, 2020. schedule to increase the salary year’s salary threshold and may and who satisfy the duties Given the tortured history level over time. However, DOL not also count toward the current requirements, may comply of the overtime rule, a logical has stated it is committed to year’s threshold. If a bank fails with the new rules by either question is whether this periodically reviewing and to make this catch-up payment, increasing employees’ salaries rule will really go into effect updating the salary threshold the overtime exemption will to the new level, limiting hours on January 1, 2020. Despite more regularly. Banks can be lost for the 52-week period to preclude overtime work, the prolonged court battles employ an exempt employee for that employee. and/or by reclassifying the over the previous version on a part-time basis, but there employees as non-exempt. of the rule, and the fact that » Highly Compensated is no pro-rated level of the If banks adjust salary levels worker advocacy groups Employees salary threshold for part- to meet the new requirement, are threatening litigation In addition to the white time employees. Part-time they should consider the impact over the current version, collar exemptions, the FLSA employees must be paid at on other employees who also banks should be preparing also recognizes an overtime least $684 per week in order to may request a pay increase. as if the overtime rule will exemption for highly compen- be treated as exempt. While many banks have go into effect as planned sated individuals. The final rule begun making changes to on Jan. 1, 2020. » Non-Discretionary increases the minimum annual address changes to exempt As a reminder, three Bonuses May Be Included compensation level needed to status over the last few years, primary exemptions from Under the final FLSA qualify for the highly compen- those banks who have “kicked the FLSA’s overtime rule are rule, banks will be able to sated exemption from the the can down the road” on this the executive, administrative, count certain bonuses and current $100,000 per year to issue should take action now. and professional exemptions, incentive compensation $107,432 per year. The proposed known as the “white collar” toward meeting 10% of the rule in March included a Witte and Mirus are attorneys minimum salary thresholds $147,414 per year threshold. exemptions. In order to be at Boardman & Clark LLP, a exempt under a white collar for executive, administrative, To qualify as a highly compen- WBA Gold Associate Member. exemption, an employee computer, and professional sated employee, an employee Visit www.boardmanclark.com/ must by paid a minimum employees. Specifically, banks must also receive at least business/banking for more salary threshold, must be may count non-discretionary $684 per week on a salary or banking insights. paid on a salary basis, and bonuses, incentives, and fee basis without regard to the Note: The above information is not must meet specific job duties commissions that are paid payment of non-discretionary intended to provide legal advice; annually or more frequently. bonuses and incentive tests. The final rule does rather, it is intended to provide not make any changes to A bank may designate and payments. It is important general information about banking the “job duties” tests for the utilize any 52-week period it to note that Wisconsin law issues. Consult your institution’s executive, administrative, or chooses for this purpose (e.g., does not include a highly attorney for specific legal advice professional exemptions. calendar year, fiscal year, compensated employee or assistance. 14 DECEMBER 2019 Bulletin Board News about people working in Wisconsin’s financial institutions

Promotions and New Hires Oconomowoc Fond du Lac Prairie Trust, a division of National Exchange Bank Waukesha State Bank, has & Trust announces the hired Lori Hert (pictured) election of Christopher D. as personal trust associate. Drees (pictured), president Drees Keleher Schonscheck Sweeney Hert of Mercury Marine, to the Superior Board of Directors. National Bank of Commerce (NBC), continues its Fort Atkinson growth and expansion with Badger Bank is pleased to the addition of two announce and welcome Zenner Conley Knuth Schmitt Smith new associates, hiring Blaze Craig Keleher (pictured) as Zenner (pictured) and chief financial officer and John Conley (pictured) as senior vice president. Fossen, J.D., to senior vice of research; and Nancy commercial bankers. president, trust advisor Johnshoy, CFA, to vice Madison and director of fiduciary president – portfolio manager Waterloo State Bank of Cross Plains risk; Brad Howe, CFA, CFP, and market strategist. Farmers & Merchants State welcomes Christa Schon- to vice president – portfolio Bank is proud to announce scheck (pictured) as an manager and investment team Milwaukee that Kasondra (KC) in-house investment portfolio lead; Tony Nichols to assistant PNC Bank has appointed Knuth (pictured) has joined manager and trust officer. vice president – investments/ Daniel Sweeney (pictured) as their new F&M Mortgage First Business Financial trading and portfolio vice president and relationship Office in Oconomowoc as a Services is pleased to manager; Bryan Minogue, manager for Community mortgage loan originator. announce the following CFA, CFP, to vice president – Development Banking promotions: Cymbre Van portfolio manager and director in Wisconsin. (continued on p. 15)

Oregon Community Bank Donates Two Central Wisconsin Banks Help $100,000 for Jaycee Park Renovation Support Fight Against Breast Cancer

Oregon Community Bank recently announced a $100,000 donation, the largest gift the organization has ever made, to the Jaycee Park Bank of Wisconsin Dells and Community Bank of Portage donated Renovation Project in the heart of Oregon, Wisconsin. “We have a $2,800 to Divine Savior Healthcare’s Cancer Fund to support the long history of supporting community facilities that benefit all members fight against breast cancer. Pictured: (left to right) Heather Meyer, of society. We see the Jaycee Park renovation as an inclusive destina- Rodnie Miller, Barb Marz, Bob Wachuta, Divine Savior’s tion that will be enjoyed for decades to come,” stated Steve Peotter, Dr. Jill Pogorelec, Jon Bernander, Crystal Sampson, Anastasia Oregon Community Bank president and chief executive officer. Kinney, and Lisa Weaver.

Have good news? To submit a notice, please email [email protected]. Or mail entries to WBA Bulletin Board, 4721 South Biltmore Lane, Madison, WI 53718. Send photos as JPEG files. Questions? Contact WBA’s Amber Seitz at 608-441-1237 or [email protected]. DECEMBER 2019 15 Bulletin Board News about people working in Wisconsin’s financial institutions

Promotions and New Hires (pictured) to operations officer (continued from p. 14) based at the main office.

Waukesha Wisconsin Dells Waukesha State Bank of Wisconsin Dells Bank has hired Strandt Rafenstein Fera Garwood Kinney announced the recent promo- Jasmine Medina tions of Amanda Garwood (pictured) as community president of the of WaterStone Bank’s West (pictured) to controller and a commercial bank’s West Allis branch, Allis branch, Gina Rafenstein Anastasia Kinney (pictured) to Medina banker. Sharron Smith (pictured) is (pictured), will be relocating to business development officer. community president of serve as community president Wauwatosa the Pewaukee branch, and of the bank’s Greenfield branch. Congratulations WaterStone Bank has hired Morgan Strandt (pictured) Marinette three new community presi- is community president of the Whitewater The Stephenson National Bank dents: Curtis L. Schmitt Oconomowoc branch. The First Citizens State Bank has & Trust celebrated 145 years Jr. (pictured) now serves as former community president promoted Michelle Fera in business in October.

First Bank Financial Centre Partners with Family Sharing of Ozaukee County First Bank Financial Centre (FBFC) is pleased to announce a partnership with Family Sharing of Ozaukee County. Family Sharing provides food, at no charge, to people in need in Ozaukee County. All donations of food are distributed directly to those who need it. The partnership kicked off with an appearance on The Morning Blend on WTMJ-TV. As part of the bank’s year-long “The Blend Gives Back” initiative, FBFC hosted Family Sharing in studio and presented them with a check for $1,000. Pictured: Kris Barger, FBFC Mequon Branch manager; Becky Miller, FBFC marketing manager; Kimberly Bikulcius, Community Outreach manager, Family Sharing; and Molly Fay and Tiffany Ogle, Morning Blend co-hosts.

First State Bank Pledges $100,000 Wausau Organization Receives $1,000 for New London Public Library Donation from The Abbotsford Story

First State Bank has pledged $100,000 to the New London Public Library’s Heart of Our Community Campaign. It is the first pledge received at a Benefactor level by an area business for the new mix- The Abbotsford Story, Inc. is pleased to announce the donation of $1,000 use development at the site of the former Wolf River Lumber property. to Middle Grounds in Wausau for a new computer and printer. Middle “The new library and other development efforts slated for the south Grounds is a coffee shop for young adults. Their mission is to reach side of the Wolf River are a tremendous first step to what we envision young teens where they are at, in a judgement free environment. Every leading to additional revitalization efforts in our downtown,” said March and September, AbbyBank’s charitable foundation, The Abbotsford First State Bank President, Bob Van Asten. “We hope other businesses Story, Inc. strives to provide continued support to its area communities. and individuals will join us and the other donors who have already Pictured: (left to right) Phil Pesanka, AbbyBank; Sheila Stark, Middle committed their support to make the new library a reality.” Grounds; and Tracy Engman, AbbyBank. 16 DECEMBER 2019

Your EDUCATION Calendar Conferences I Summits Schools I Boot Camps Seminars I Workshops WBA Webinars Other Events

JANUARY 2020 APRIL 2020 • Wisconsin Economic Forecast Luncheons • Human Resources Conference 9 Madison; $400/table of 8; $75/individual 7 Wisconsin Dells; $225/attendee 10 Eau Claire; $350/table of 8; $50/individual • Health Savings Account (HSA) Workshop • Community Bankers for Compliance 8 Madison; $245/attendee (CBC) – Session I • Branch Manager Boot Camp, Sessions 1 & 2 28 Stevens Point (pricing options vary) 14-15 Madison (pricing options vary) 29 Madison (pricing options vary) • Agricultural Bankers Conference; Wisconsin Dells 15-16 $300/ag section member; $350/attendee* FEBRUARY 2020 • Power of Community Week 20-24 www.wisbank.com/BanksPowerWI • Bank Executives Conference; Wisconsin Dells 3-5 $495/each first two bank attendees ($450 early bird • Women in Banking Conference; Wisconsin Dells pricing through 12/27); $450/each additional attendee 21 $245/each first two bank attendees; $195/each additional attendee* • Residential Mortgage Lending School 17-20 Madison; $1,045/attendee* • Trust Conference; Madison 23 $220/Trust Section member; $245/attendee • Compliance Forum: Session 3 18 Stevens Point (pricing options vary) 24 • National Teach Children to Save Day 19 Wisconsin Dells (pricing options vary) • Community Bankers for Compliance 20 Pewaukee (pricing options vary) (CBC) – Session II • Commercial Lending School; Madison 28 Stevens Point (pricing options vary) 24-28 $1,395/attendee* (Register by 12/20 for $100 off) 29 Madison (pricing options vary) 4/28- • WBA/ICBA Capital Summit 5/1 Washington, D.C. (complimentary) MARCH 2020 • Cash Management Workshop 29 Madison; $245/attendee • Credit Analysis Boot Camp 5-6 Madison; $495/attendee • Enterprise Risk Management Workshop 19-20 Green Bay; $495/attendee 30 Madison; $245/attendee • Loan Compliance School • Principles of Banking Course 9-13 Madison; $1,295/attendee TBD Location TBD; $500/attendee • Ag Problem Loans Workshops 10 Madison; $225/attendee MAY 2020 • Real Estate Compliance School 11-13 Madison; $795/attendee • American Mortgage Conference 4-6 Charleston, S.C. • Advanced IRA Workshops 17 Wausau; $245/attendee • Lending Boot Camp; Madison 18 Madison; $245/attendee 5-6 $535/attendee (two-day); $795/attendee (three-day) • WBA/ABA Washington Summit • Compliance Management School 22-25 Washington, D.C. (complimentary) 6-7 Madison; $795/attendee • Call Report Workshops 24 Madison; $245/attendee » Visit www.wisbank.com/education for more information and online registration. • Security Officer Workshops 24 Neenah; $175/attendee » Or email WBA Education at wbaeducation@ 25 Eau Claire; $175/attendee wisbank.com or call 608-441-1252. 26 Wisconsin Dells; $175/attendee DECEMBER 2019 17 Your Operational Efficiency in Eight Words or Less Explore continuous improvement and operational efficiency with ShareFI Can you describe your operational processes? I bet we can… in eight words or FIPCO’s less. It goes something like ShareFI JOIN FIPCO ON… this: “Because that’s the Jeff Schmid Contact Jeff Schmid at 608-441-1220 way we’ve always done it.” or [email protected] to learn Sound familiar? Does this how ShareFI can help you. describe your bank? In today’s competitive improve your bottom line. market, tight margins, and ”If you can’t describe Our team of operational low interest rate environment, what you are doing as a professionals are prepared it becomes increasingly process, you don’t know to find waste within your important to look at the what you are doing.” operations, explore solutions other side of the income — W. Edwards Deming that promote efficiency, statement. Banks of all American statistician, create a better customer sizes, especially those with educator, and consultant experience, and will train a high number of FTE’s or your staff on a new way multiple sub-departments > Follow Us > Join Us of thinking. within a department, should to run the same old processes For more information or to be exploring continuous with the same old staff, schedule a presentation, please improvement and process saying the same old thing... contact me at 608-441-1220 https://twitter.com/ https://www.linkedin. efficiency. Today’s community “Because that’s the way fipcoservices com/company/ or [email protected]. fipcoservices banker has invested a great we’ve always done it.” deal of money in new Let ShareFI help you Schmid is FIPCO director – com- technology, yet they continue identify these areas and pliance and management services.

Oostburg’s Rachel Weavers Awarded Lifetime Service Award

IT AUDIT & SECURITY SERVICES

• IT Auditing • Managed Social Engineering with • Cyber Security Consulting Integrated Learning Management WBA’s Daryll Lund attended a celebration at Oostburg State System • Vulnerability & Penetration Testing Bank for Rachel Weavers and presented her with a WBA Lifetime • Facilitated DRP/BCP Tabletop and • Board Cyber Security Awareness Service Award. Weavers has been in banking for 30 years and IRP Testing • GLBA Compliance & IT Risk is currently an assistant vice president, customer service • Threat Intelligence Briefings Assessment representative at the bank. The Lifetime Service Award recognizes and thanks bankers for their 30 or 40 years of service to the Contact FIPCO’s Ken Shaurette to get started. banking industry. Congratulations, Rachel! Pictured: (left to right) Eric Veldhorst, CFO, Oostburg State [email protected] Bank; Lund; Weavers; and Eric Glewen, president/CEO, Oostburg 800-722-3498 x 251 State Bank. www.FIPCO.com 18 DECEMBER 2019

Strategic Connections Optimizing Your Busiest Office By Lauren Olson Understand Your Users the Campaigns acquisition sec- How many people come into Once your analytics code tion. This feature is perfect for your bank offices every day? Strategic has been set up for a few measuring ROI and comparing How did they find you? When Connections weeks, start by reviewing the online advertising channel they walk inside, what do they Lauren Olson visitor audience data. New vs. effectiveness. Instead of only see and do? Returning Users identifies how knowing how much traffic Now, consider how many many visitors are new to your increased, you can see which people come to your website website—and are potential channel brought in the highest every day. Can you answer the new customers, versus those quantity and quality of traffic. same questions of your website website visitor as they arrive, who are repeat visitors—likely You can also set up Events visitors as branch visitors? use, and leave your website. already customers. (If you set Tracking and Goal Tracking Your website may very well be Once you have website ana- up Google Analytics recently, to measure specific activities your busiest office. By applying lytics set up, you can review all visitors will appear as on your website. Events data analytics, you can enhance the data to find actionable in- “new” the first time they come Tracking can measure clicks your understanding of website sights for optimizing your web- to your site.) to visit external websites, such visitors and optimize your site. If you are new to Google Under Technology, view as mortgage applications or online office. Analytics, take a look at their the type of device used to online banking. Goal Tracking free training available online at access your site. If your mobile measures when visitors Start with Data https://analytics.google.com/ users have shorter visits or complete a meaningful activity Google Analytics is a free analytics/academy/course/6. fewer goal completions, it may on your website. Set up goals tool that gathers data on your Consider adding an IP be due to your website not to measure when people visit website visitors through a exclusion in your analytics being mobile-friendly. your rates page, or when they small line of code. The code program to exclude your office complete an Event of going to does not gather personal infor- IP address, so your data is not Measure Results your mortgage application. mation, it simply tracks each skewed by staff. Next, review how they came to your website and their Improve the Journey landing page. The Acquisition Review your visitors’ overview section breaks down Behavior Flow. Paying attention traffic by a few main categories to the user page flow can make such as direct, search engine, you aware of any needed paid, and social media. Look- changes to website content and ing at the Source/Medium for navigation. For example, if a all of your traffic will tell you lot of visitors are going from whether they came from an your CDs page to your online organic search engine result account opening for CDs, but or a paid online ad. Check no applications are coming the Landing Pages section to through, they may instead be see which page they saw first. looking for rates. Adding a Determine if there are changes link to your CD rates page will you can make to that page to improve their user flow. better feature your products or You can also see if a lot help your customers. of visitors are leaving a To create a custom Source/ certain webpage and make Medium within Google Analyt- improvements to that page to Digital Marketing is: ics, use the Google Campaign help them stay. A. the most powerful form of marketing URL Builder at https://ga-dev- Making these changes to B. the most cost-effective way to market your business tools.appspot.com/campaign- optimize your website will result in happier customers C. the most measurable form of marketing url-builder/ to create a unique link. Start with the URL you and more conversions to new D. all of the above would like linked from your customers and accounts. ad, then add in the details of Because your website is more the campaign source, medium, than an online brochure, it is Contact Jen to get started today. and name. When someone likely your busiest branch. 608-441-1249 l [email protected] clicks your Facebook ad for Olson is the marketing director Checking accounts on Social at Bank of Prairie du Sac in Media, their visit using that Sauk Prairie and a member of custom URL can be tracked in the WBA Marketing Committee. DECEMBER 2019 19

First DATCP Data Privacy and Security Advisory Committee Meeting Creates Sweet and Sour Ideas This Wisconsin Department Notable Findings of Agriculture, Trade and » Read The 2019 Riskiest States Report at… Americans in every state Consumer Protection (DATCP) https://www.securitymagazine.com/articles/ are overconfident advisory committee on Data 90196-the-2019-riskiest-states-report » 88% feel they take Privacy held its first meeting ----where-does-your-state-rank the right steps to protect in October to help facilitate themselves from cyberattacks. gathering public input for » Only 10% are A students recommendations on future 2019 Report From Webroot in cyber hygiene, scoring 90% legislation and rules. The nearly 30 members Ranks State by Risk* or higher. The Advisory Committee of the DATCP Advisory Mississippi, Louisiana, » The highest scoring state, will include state government Committee on Data Privacy California, Alaska, and New Hampshire, only scored representatives, business include representatives Connecticut are the riskiest a 65%. interests, data stakeholders, from a variety of consumer states in the USA based on and advocacy groups. The groups and a small number consumer preparedness for Americans have a surface Department plans to facilitate of business groups that cyberattacks, according to a level understanding of communication across include: Wisconsin Bankers new report from Webroot. common cyber threats stakeholders and to develop Association; Wisconsin The report examines the » 79% of Americans have legislation that will address Manufacturers & Commerce; cyber hygiene habits of heard of malware, but only data security and data breach Wisconsin Hospital Associa- 10,000 Americans, 200 in 28% could explain what it is. challenges facing consumers tion; AARP; League of each state, to determine what » 70% of Americans have and businesses in Wisconsin. Wisconsin Municipalities; behaviors and practices they heard of phishing, but only Special thanks to Marco Consumer Law Clinic; Better have in place to protect their 33% could explain what it is. Martinez of Associated Bank, Business Bureau; Sentry information or identity from » 49% of Americans have who is representing WBA Insurance, and others. cybercriminals. While the five heard of ransomware, but only and the banking industry on The committee took previously mentioned states 21% could explain what it is. the Committee. Thanks, in time to list individual goals scored the lowest on the cyber advance, for your efforts! for the Advisory Committee hygiene test, the average Less than half of that looked a bit scary from respondent’s grade wasn’t good Americans adopt cyber Advisory Commitee Objectives a banking/business perspective. either: 60% (or a “D”). hygiene best practices » To identify and research The 20 self-defined goals Despite the low scores » 64% of participants possible changes to Wisconsin ranged from establishing a on general cybersecurity don’t keep their social media state law. fund for consumer restitution knowledge and best practices, accounts private. » To determine the efficacy in the event of a loss as a consumers reported a high » 63% of participants reuse of consumer data privacy result of a breach to (and false) sense of confidence passwords across multiple initiatives. harmonization of privacy about their cybersecurity accounts. » To consider how best to laws in Wisconsin to help in behaviors. The majority (88%) » 62% of participants rely protect and secure information educating consumers. of survey participants believe on a free antivirus software. received by public and private The Advisory Committee they are taking the appropriate will be making a series of steps to protect themselves entities in Wisconsin. A small group (5%) of recommendations that will from cybercriminals; however, » To determine the business cyber hygiene “superstars” go be considered by DATCP in the high fail rate suggests community’s readiness to above and beyond in every state late spring 2020. a major opportunity for adopt potential regulatory » These superstars tak improvement. e enhancements. additional steps to protect » The 5 Riskiest States: themselves, including: 1. Mississippi » Backing up data using 2, Louisiana multiple methods (online 3. California and offline) Did You Know? 4, Alaska » Investing in a reliable, Wisconsin Banker occasionally prints informative articles 5. Connecticut modern-antivirus solution, submitted by Gold, Silver, and Bronze WBA Associate » The 5 Least Risky and keeping it up to date Members. Interested in sharing your expertise? Please contact (Safest) States: » Using a secure pass- WBA’s Nick Loppnow at 608-441-1208 or nloppnow@ 1. Kentucky word manager wisbank.com or email [email protected] for more 2. Idaho * Source: http://www.security information about purchasing Sponsored Content space in 3. Ohio magazine.com/articles/90196- WBA’s electronic publications. 4. North Dakota the-2019-riskiest-states-report 5. New Hampshire ----where-does-your-state-rank 20 DECEMBER 2019

2010s | The Decade of Resiliency n Meloy, CEO of First Business Bank, Madison and current (continued from p. 1) “The [2010] recession was all-encompassing: WBA Chair. “I always felt like housing, land development, agriculture, and 2010-2012 were some of the the future may hold. The commercial real estate… there were no safe havens. fastest moving, most exciting Wisconsin banking industry What banks did to survive was remarkable; times that we had because we is no exception. In the past were able to take advantage of decade, Wisconsin banks we closed ranks and fought for our good names.” some recovery moments and evolved from standing —Robert J. Just Jr., retired president and CEO, deliver products and services shoulder-to-shoulder, ready for Mound City Bank, Platteville, and 2010 WBA Chair that clients and prospects were battle against a crumbled asking for, and doing it in a economy and a misinformed n way that was faster and better reputation, to a thriving for them.” industry that embraces the ever-changing technological core competency: supporting themselves. It wasn’t » Today’s banking world. However, what has not their communities. Wisconsin necessarily a bad thing, but it environment. banks hold traditional values was challenging.” changed over the years is the As the calendar approaches of conservativism and put As if banks did not have thing that will make Wisconsin 2020, the Wisconsin banking their customers first. They enough on their plates, they banks strong going into the industry looks quite different fought to uphold their com- were also faced with a full- next decade: resiliency. than it did entering 2010. munities even in a turbulent frontal attack from the media Community banking has been » Thinking back to 2010. economic environment. and others from outside the at the center of the economic There’s no denying that “Wisconsin banks have banking industry. It is no secret recovery, and it has seen 2010 brought challenges to the historically been prudent that risky moves made by certain major payoff for this effort, Wisconsin banking industry. in their underwriting and Wall Street investment mort- especially in the last five With the world still reeling conservative in how they gage brokers and firms caused years. Bank capital is much from the impacts of the Great manage their balance the severity of the recession. larger and Wisconsin banks Recession and increased sheets,” said Rose Oswald However, commercial and have developed sound lending federal regulatory pressure, Poels, president and CEO community banks bore the markets, which has contributed Wisconsin banks were faced of the Wisconsin Bankers impact and were unjustly to a flourishing economy. It with a difficult task: they had Association. “I think that blamed for the actions of the seems like a long time coming to fight to deliver a healthy helped them be able to weather bad apples in the industry. for many bankers in Wisconsin. banking environment to their the challenging times in 2010.” “We suffered because of this, However, the industry also customers. No aspect of finan- Weathering the storm but it wasn’t the community faces a dramatic shift in the cial services was untouched by was certainly no easy task. banks that caused this… It was way that individuals engage the recession, yet commercial In addition to the overall hard to get that message out,” with their bank. There is no and community banks were left impact of the recession on the said Jeff Niesen, senior vice denying that the mobile phone to pick up the pieces. economy, the crisis triggered president of Bankers’ Bank. “I explosion now encompassing “The recession was all- a domino chain reaction of remember back in the time, if all aspect of human interaction encompassing: housing, land regulations that all but crippled you said you worked at a bank, has revolutionized the way development, agriculture, some banks. Prior to 2008, people would say ‘oh, you’re Americans bank. and commercial real estate… regulators did not express one of them’ and I would say “Mobile banking has there were no safe havens,” many concerns during bank ‘yes, I am, but this wasn’t changed everything from the said Robert Just Jr., retired evaluations. However, the caused by us.’” client’s ability to authorize president and CEO of Mound recession changed everything. Despite this misrepresented wire transfers to simply City Bank, Platteville and Panic electroshocked regulators perception from those outside looking up account balances,” WBA Chair in 2010. “What into a reactive mode and banks the industry, Wisconsin banks said Meloy. “That client or banks did to survive was found themselves whiplashed continued to grind through potential client now looks at remarkable; we closed ranks from the new scrutiny imposed the tough economy with an the entire financial landscape and fought for our good names.” upon them. And then, of eye for the future and for the on a 360-degree basis entirely This resiliency was indeed course, Dodd Frank hit. communities they served in. with their phone these days.” remarkable, but unsurprising. “Dodd Frank was approved That ability to see the glass Further, the culture shock Wisconsin banks never in 2010 and it just unleashed half-full during economic of mobile phones also devel- saw the magnitude of bank a waterfall of change in hardship distinguished them oped new competition that closures or failures to the the regulatory and risk from other financial servicers community banks in Wisconsin same degree as other parts of management piece of banking,” in the industry and helped them had never faced before. the country, including some said Matt Sitkwoski, executive thrive later into the decade. “I think there was always from neighboring states. They vice president and chief “If there are challenges, increased competition had fewer causalities than financial officer of Bankers’ that means that there are into the new millennium others in the industry because Bank, Madison. “A lot of opportunities to differentiate they stuck to their bankers had to re-educate and succeed,” said Mark (continued on p. 21) DECEMBER 2019 21

2010s | The Decade of Resiliency This concept is no under- » Thinking of the future. just the vibrancy of the overall statement and differentiates local economy,” she said. “We (continued from p. 20) It is nearly impossible to Wisconsin community banks predict the future of the Wis- really need local banks.” from their online and national consin banking industry. The Local banks will only survive n competitors. Throughout his industry metamorphosizes if they are able to be as adaptable “Wisconsin banks [today] travels, Niesen has found a itself to economic, political, as they were during the early have a nimbleness and are direct correlation between and cultural factors. However, 2010 years, yet strategic with a vibrant community and a experts in the field unanimously their decision-making into the able to adjust to whatever strong community bank at predict that the trend of consolida- future. Oswald Poels believes environment they’ve the center of it. tion is here to stay in the short that this means going into the found themselves in. “They’ll treat their future, and banks need to adapt. new decade, banks need to I think that's the hallmark customers how they should “I think it’s inevitable that develop a strong succession be treated. I’m not going to plan for the future and also peer of the Wisconsin banking we’ll continue to see some imply that regional banks and consolidation in the banking network with other banks to industry for a very long national banks aren’t doing industry, not only in Wisconsin share ideas about how to best time and continues to be.” so, but at the community but nationwide,” said Meloy. “I serve their communities. banks you’re more than just a also strongly believe that the Niesen adds that community —Mark Meloy, CEO number,” he said. “They haven’t competitive environment really banks need to develop and CEO, First Business extended beyond their capabil- goes far beyond what we’ve nurture partnerships with techno- Bank, Madison and ities within their communities always considered competition, logical firms with aligned goals Current WBA Chair and that’s something they and I think that’s going to grow that best service their customers. n continue to do well.” and with it provide oppor- However, whether it is 2010 Sticking to their core tunities for us to succeed.” or 2029, Wisconsin banks will competency has helped many Oswald Poels agrees that succeed so long as they stick for bank customers. This community banks, especially mergers and acquisitions to the values that make them disintermediation has been family-owned banks, remain are unlikely to disappear in vibrant, dependable, and unique. going on for many years, but independent in an environment the next decade. However, “I think community banks I think it’s really intensified,” that has seen an increase in she is hopeful that this trend need to get past this perception said Sitkwoski. “The new mergers and acquisitions in the will begin to plateau because that the community bank cannot players, whether they be past few years According to community banks are often survive, regardless of the size,” fintech or online lenders Sitkowski, the quality of more than just financial said Sitkowski. “Community or whatever the case may capital is significantly stronger servicers; they breathe life into banks have a viable role going be, challenge the ability for than it was in the early the towns they serve. forward and they will survive community banks to defend 2010s. While this is good “Communities really need with the right partnerships their customers and defend from a safety and soundness local banks, and their presence and relationships.” themselves, and there are standpoint, the return on equity is really important, not just Kallien is a content creation is lower and a bank needs to because of the traditional aspects of the marketplace associate/editor at WBA. that are reaching to grab their earn more to be successful. banking services that are needed customers to take them away.” He attributes the increasing in the community, but also for Bankers’ Bank is a WBA Gold The expectations of number of consolidations to the philanthropical support and Associate Member. customers have also shifted. this new challenge. But, Millennials in particular focus as seen during the early more on the experience of their post-recession years, business in a different way Wisconsin’s commu- than older generations. They nity banks are resilient want their banking to be as and able to take on fast-paced as their lifestyles. whatever challenge is This shift has changed the thrown their way. way that community banks “I think Wisconsin need to evolve, as these new banks have a nimble- products have subtly given ness and are able to The Decade of consumers reasons not to come adjust to whatever into the bank. However, some- environment they’ve | Bank Resiliency thing that has not changed over found themselves in,” s the years is that community said Meloy. “I think banks are very good at that’s the hallmark 2010 engaging with the communities of the Wisconsin they serve in. As Just said, banking industry for “face-to-face interaction will a very long time and never go out of style.” continues to be.” 22 DECEMBER 2019 Bankers Recognized for Dedication to Financial Education On Thursday, Nov. 21, bankers Award was given to not one, For the past few years, and Wisconsin banks from but two banks! This award SNBT bankers have been across the state received recognizes a bank or individual providing a six-week financial awards or certificates from the banker who contributed a literacy class to inmates at the Wisconsin Bankers Foundation new or innovative approach Marinette jail. These classes are (WBF) in recognition of to financial education, or has held weekly, in a classroom their efforts to educate the budgeting, how to use credit exhibited exemplary dedication right at the jail. Each session customers and community responsibly, the ins and outs to expanding financial focuses on a particular topic; during the 2018-2019 fiscal of obtaining a home mortgage education in their community. checking accounts, savings year. The awards were or car loan, and many more The Bank of Prairie du Sac accounts, budgeting, credit and presented during a special financial topics. and The Stephenson National lending. Other topics may be breakfast held in conjunction This year’s top winners Bank & Trust (SNBT), covered as well, depending on with the WBA LEAD360 include: Marinette, both were honored questions the students bring Conference in Wisconsin Dells. » Banker of the Year Award for their efforts. up. The program has received The WBF Excellence in Monica Walk, FVSBank, The Bank of Prairie du Sac, such positive feedback that the Financial Education awards Fond du Lac in conjunction with local high bank is considering extending honor banks and individual school teacher Joel Chrisler, it beyond six weeks or adding » Financial Literacy bankers for their dedication to created a series of personal another session later in the year. Banker Award promoting financial education finance classes. Classes Thank you to all the bankers Cynthia Roeck, in Wisconsin. This year, a covered money resolutions, who dedicate their time and Cleveland State Bank total of over 460 bankers managing credit, buying a talents to promoting consumer from across the state reported » Wisconsin Teach Children home, investing basics, and education in Wisconsin. nearly 1,850 personal finance to Save Day Award paying for college. The bank Visit www.wisbank.com/ presentations. Those volunteer Sarah K. Rogers, also offered video recordings EFEawards to see the winners. bankers educated nearly 33,500 Mound City Bank, Platteville of the classes which were Contact WBA’s Amber Seitz consumers of all ages about For the first time ever, the available on their website at 608/441-1237 or aseitz@ the importance of saving and Financial Education Innovation and YouTube page. wisbank.com for any questions. DECEMBER 2019 23 Who is the 2019 WBA Banker of the Year? You Tell Us! Nominations are due The award will be presented for the nomination forms. The by Friday, Dec. 13 at the WBA Bank Executives forms must be returned by A History of Service Conference on Feb. 4, 2020 Dec. 13, 2019. Questions about WBA is now accepting at the recently-expanded the award or the nomination Commemorating Our nominations for the 2019 Kalahari Convention Center and selection process may be Past Award Winners Banker of the Year Award! in Wisconsin Dells. directed to WBA’s Patty WBA would like to take the This award recognizes Contact WBA’s Debbie Nab- Rogers at progers@wisbank. opportunity to recognize someone who has made an holz ([email protected]) com or 608-441-1209 some of the individual outstanding effort in service bankers who have to his or her bank, to their contributed to the success community, and to the of Wisconsin’s banking banking profession. Steve Eager, president and CEO industry in an extraordinary To qualify, nominees of the former Union Bank & way: the recipients of the Trust Company in Evansville must be an employee of a Wisconsin Community (now a branch of the State Bank Wisconsin bank and a member of Cross Plains), was honored Banker of the Year award. of the WBA. In addition, the as the Wisconsin Bankers These individuals have individual should be a bank Association Community Banker dedicated countless hours president/CEO, or have held of the Year for 2018. Eager of their time to serving their this role in the recent past. (pictured, left) was recognized communities and are true Nominations may be submitted as being respected by his fellow examples of the best of bankers and his community as a leader who is caring and involved both our industry. by any person who can inside and outside the bank. The award was presented at the Tuesday describe the banker’s civic and evening program during the 2019 Bank Executives Conference. Congratulations! professional accomplishments. Wisconsin Community Bankers of the Year: 1986 – Jess Levin 1987 – Ron Isaacson Comment Letters Submitted 1988 – Gil Homstad 1989 – Lee Swanson on HMDA Data Collection and HUD 1990 – Robert Gorsuch Summary of recent 1991 – Richard Pamperin The WBA Legal Department 1992 – David Ballweg comment letters below advocates for the industry by 1993 – Michael Murry Earlier this year, the Bureau writing comment letters to 1994 – Steve Hamilton federal and state regulators published in the Federal 1995 – Merlin Zitzner on proposals affecting the Register the ANPR soliciting 1996 – Howard Turk industry and by filing friend- 1997 – A. Tom Wittkopf comments relating to the data of-the-court briefs at the 1998 – Gary Weirauch points the Bureau’s October request of WBA members 1999 – John G. Thomson 2015 final rule implementing and per approval by the WBA 2000 – Thomas J. Sheehan the Home Mortgage Disclosure Board of Directors. Act (HMDA) added to Comment Letters: 2001 – Earle R. Edwards 2002 – Dirk L. Gasterland Regulation C. Many of the • www.wisbank.com/ which amends its current 2003 – Paul C. Adamski data points were added at CommentLetters the Bureau’s discretion rather rule implementing the FHA’s 2004 – Philip Holland than by statutory mandate. discriminatory effects standard 2005 – Charles L. Saeman The ANPR also solicited WBA asked the Bureau to at 24 CFR part 100. WBA 2006 – E. David Locke comments relating to the eliminate all discretionary data voiced its support of the 2007 – Karl J. Ostby requirement that institutions points the Bureau added to proposed rule’s alignment of 2008 – H. B. Pomeroy 2009 – Carl M. Axness report certain business- or HMDA data collection and HUD’s implementation of 2010 – Toby J. Steivang commercial-purpose trans- reporting; however, if the the FHA with the Supreme 2011 – Robert L. Fait actions under Regulation C. Bureau is unwilling to do so, Court’s 2015 decision in 2012 – James K. Caldwell WBA appreciated the WBA asked that certain specific Texas Dept. of Housing and 2013 – Richard G. Busch Bureau’s decision to open data points be eliminated. Community Affairs v. Inclusive 2014 – Frederick F. the discussion concerning More recently, WBA Communities Project , Inc., 135 S. Ct. 2507 (2015). Schwertfeger ongoing challenges financial commented on a Department 2015 – Steve Schowalter institutions have experienced of Housing and Urban For copies of this or other WBA 2016 – Randy Bobholz in attempting to fulfill the Development (HUD) proposed comment letters, please contact 2017 – Peter Knitt requirements implemented rule implementing the the WBA Legal Department 2018 – Steve Eager under Regulations C pursuant Fair Housing Act’s (FHA) at 608-441-1200 or visit www. 2019 – TBD to the 2015 HMDA Rule. Disparate Impact Standard wisbank.com/CommentLetters. 24 DECEMBER 2019

Leading Through Change (continued from p. 1) “Intentional” is really a key honest feedback, perspective, Tubbs echoed a similar As a part of this, the term in leadership develop- and experiences. sentiment. “We use the term State Bank of Cross Plains ment. According to the “The second thing, if you’ve ‘Strength of Bench’ a lot when incorporated leadership Harvard Business Review,** identified people for leadership, talking about succession plan- development into their strategic over half of senior corporate have them put together a per- ning,” he shared. “We want to planning. “We started with leaders believe that their talent sonal development plan” Kraai make sure that if there is a defining what leadership development efforts are not continued. “Third, those people vacancy—be it retirement, qualities and characteristics adequately building the critical who do lead or are identified as personal leave, or something are expected, instead of just skills and organizational future leaders need to be open else—we are not only preparing asking people for intangible capabilities they want. So, like to 360 degree feedback, includ- our current leaders but also the concepts” explained Tubbs. Tubbs mentioned, getting away ing self-assessments—self- future leaders that will step up.” “We then could tell staff ‘to from the intangible buzzwords assessments are so important.” There was a lot of help your career path, here and defining the wants and “And finally,” Kraai said, “to “stepping up” for the State are the expectations we have needs of the bank can create be a successful leader, you need Bank of Cross Plains recently for leaders,’ and give them a more focused development. to have what I call ‘empathy,’ as everyone got a taste of one document to reference.” “There are four things but it’s really humility. A of the biggest things changing Making sure leadership needed for successful leader- sincere interest in the success within banking: consolidation. development is continuous is ship development,” Kraai of your team over your own On June 1, UB&T merged into key, according to Vicki Kraai, discussed. “You need to be individual accomplishments.” State Bank of Cross Plains owner/founder, VK Solutions. intentional about coaching Identification and training and throughout the process of “Leadership development is the people who have been of future leaders also needs to combining the two companies, not a one and done thing,” identified as leaders or future begin sooner, says Kraai. “We each staff member was she explains. “You can’t send leaders, they need a mentor.” need to identify and develop assigned a merger partner. All someone to a leadership class A mentor is not simply a people at a very early level, the staff new to State Bank and then say ‘ok, they’re supervisor or manager, but the younger generation is our of Cross Plains were paired with developed’ – it needs to be someone who is going to be up and coming future banking a more seasoned staff member ongoing and intentional.” a coach and able to provide leaders. We need to embrace who they could turn to as a this and do what we can to set reliable source of information them up for success.” (continued on p. 25) Bank ANNIVERSARIES Commemorating Service to Generations of Customers

WBA member banks 2019 Anniversaries 2020 Anniversaries Is Your Bank Celebrating a celebrate milestone Congratulations to the Congratulations to the Milestone Anniversary Soon? anniversaries following banks, which following four Wisconsin banks If you’re still looking for celebrated milestone that will celebrate milestone ideas on how to commemorate The banking industry has a anniversaries in 2019: anniversaries in 2020: your institution’s achievement, long and storied history in you may want to look to the 100-Year Anniversaries: 100-Year Anniversaries: Wisconsin. From being an past for inspiration as you turn KeySavings Bank, outlawed practice in the 1840s » First National Community » toward your bank’s future. Wisconsin Rapids to today’s diverse industry, Bank, New Richmond Wisconsin banks have shown banks have always helped » Forward Bank, Marshfield » Oakwood Bank, Pigeon Falls no shortage of creativity when Tomahawk Community Bank Wisconsin consumers buy 125-Year Anniversaries: » it comes to commemorating their first homes, finance their landmark anniversaries, » Bank First, N.A., 125-Year Anniversary: vehicles, and achieve their celebrating with everything Manitowoc » Home Savings Bank, from customer appreciation business dreams. Remarkably, Madison nearly half of Wisconsin’s » The Benton State Bank picnics to special CD rates banks have been serving » Partnership Bank, Tomah Congratulations to all! to autograph sessions with their communities for over professional athletes. a century! However you choose to celebrate, make sure both bank » Let WBA know how you plan to commemorate your bank’s success! Email photos and press releases of your employees and customers have institution’s events to [email protected] and let the industry join in the celebration! a fun and memorable event! DECEMBER 2019 25 Will Banks Be Dragged Into the PFAS Fight? Spoiler alert: yes, most likely What’s a PFAS? Perfluoroalkyl have some amount of PFAS produced or heavily relied health and the environment and Polyfluoroalkyl substances in their blood. Some research on products containing PFAS from PFAS contamination; (PFAS) are a group of several suggests that high levels of through imported goods. » modify the Voluntary thousand human-made chemi- certain PFAS may increase risk The DNR conducted Party Liability Exemption Law, cals that have been in use since of cancer, increase cholesterol, three rounds of sampling this which provides future liability the 1940s and have become decrease response to vaccines, summer at sites that were near exemptions after successful the center of a debate before increase risk of thyroid disease, known or likely sources of completion of hazardous the Wisconsin Department of decrease fertility in women, PFAS chemicals, including substance cleanup, to protect Natural Resources (DNR). increase risk of high blood portions of the Menominee, Wisconsin taxpayers from PFAS create a grease-, water-, pressure or pre-eclampsia in Mississippi, and Wisconsin uncertain and costly liability or stain-resistant barrier when pregnant women, and lower Rivers. The first round of associated with PFAS; and applied to a product. They infant birth weights. sampling for chemicals known » access opportunities are most commonly found PFAS have been detected as PFAS in surface waters has for using natural resources in paints and fire-fighting in groundwater across revealed elevated levels in damages claims under state foams, carpets and upholstery, Wisconsin. Sites in the Wisconsin rivers and creeks. or federal law to address food packaging, cookware, Peshtigo and Marinette On July 22, 2019, the compensation for PFAS and cleaning products. While areas have undergone or will DNR initiated a new voluntary impacts to natural resources. PFAS have been phased out of undergo investigation by PFAS testing program The Order also creates the production in the United States the DNR. Madison’s well for WPDES permittees. PFAS Coordinating Council, over the past two decades, they number 15 was shut down as Specifically, the DNR pursuant to Wisconsin Statute still enter the country. a precaution after readings requested 1,256 “municipal section 14.019. Among other PFAS have been referred to showed a PFAS concentration wastewater treatment facilities tasks, the Council will develop a as “forever chemicals” due to of 20-21 parts per trillion. In with industrial pretreatment multi-agency PFAS action plan, strong chemical bonds which July, Rhinelander shut down programs or contributing identify and prioritize known make them incredibly stable. a well with a reading that industries expected to be PFAS sources, develop best PFAS take decades or longer they described as higher than sources of PFAS to sample practices and protocols for to degrade in the environment what health agencies suggest. their influent and effluent for and accumulate in the human This contamination is linked identifying PFAS sources to PFAS compounds.” ensure that the materials are body over time. Almost all to military bases, airports, However, in addition to people in the United States and facilities that previously managed in a way that protects contacting 125 WPDES permit- natural resources and human tees, the DNR contacted private health, and explore avenues sector entities for purposes of Leading Through Change of funding for the state, local requesting voluntary sampling governments, and private (continued from p. 24) is important to ensure that of PFAS compounds. parties to aid their efforts to throughout the merger process, your bank has strong leaders, On Aug. 22, 2019, Gov. address PFAS. and the more seasoned staff and is also key to retaining Tony Evers issued Executive In addition to the PFAS knew they had the responsibility talent that could be future Order #40, which orders the Coordinating Council, DNR to be a resource and connection leaders. Actively and regularly DNR, DHS, and DATCP to: has created a PFAS Technical for the new staff. investing in employees with » establish a public Advisory Group. Among A lot of leading through a leadership potential can make a information website to properly other things, the purpose of period of change is ensuring big difference in whether they inform the public on PFAS and the group is to share regulatory everyone is clear on what is stay with your bank, it is a the risk these chemicals pose to updates associated with changing. “After the merger strong message to your employ- public health and Wisconsin’s Wisconsin’s development of announcement I started sending ees that they are important natural resources; programs to manage PFAS. out a merger update email to and valued. Ensuring your » collaborate with munici- Any interested party may the whole staff,” Tubbs dis- employees feel valued is good palities and wastewater attend the meetings, which are cussed. “It was just a ‘Hey leadership, and in turn it builds treatment plants on screening held at the DNR headquarters What’s Going On?’ sort of them into good leaders as well. programs to identify potential in Madison, and are open to email, because it was important sources of PFAS into the public. to have consistent communi- Bates is WBA administrative/ the environment; The big questions is what cation. Even now, after the communications assistant. » expand monitoring and happens when the bank, a merger has been complete, I’m * https://gbr.pepperdine.edu/2017 consideration of PFAS in the client’s property, or a client’s maintaining that discipline just /04/trends-in-leadership-and- development of fish and other product is over the PFAS limit? to give staff a bigger picture of leadership-development/ wildlife consumption advi- Special thanks to Jacob Curtis what’s going on at the bank.” **https://hbr.org/2019/03/ sories to protect human health; at von Briesen & Roper, s.c., a Investing in leadership educating-the-next-generation- » develop regulatory WBA Bronze Associate Member, development for employees of-leaders standards to protect public who contributed to this article. 26 DECEMBER 2019

Executive Update International Trade Opportunities More Attainable for Wisconsin Banks with Help of SBA Export Loan Programs By Rose Oswald Poels the benefit of an SBA export Contact SBA’s Mike Fazio at program,” Glaccum stated. Our economy is becoming [email protected], or Executive In addition to the loan more global, and the value Update 202-322-3352 to learn more proposition is strong for about the SBA Export Loan programs, SBA has local staff Wisconsin bankers to get more Rose M. programs or to be added to a in Wisconsin who are ready to Oswald Poels involved in international trade. referral list of export businesses help lenders not only become Nationally, the Small Business that have financing needs. more educated on these Administration (SBA) estimates guaranty programs, but are also that a total of 287,314 compa- opportunity for SBA lenders,” these loan numbers over the willing to jointly call on bank nies exported goods from the said Michael Fazio, SBA next year or so. Not only small customers and prospects to United States in 2016. Of these, export finance manager for the businesses that export, but provide the expertise needed 280,229, or 97.5%, were small Office of International Finance, also those that sell goods and to effectively talk with firms; they generated 33.3% to the lenders in the audience. services to others that export, small business exporters. (or nearly $433 billion) of the And the numbers prove that can use SBA’s export loan With more businesses United States’ $1.3 trillion to be true. Of the four key programs, thereby expanding exporting their products and in total exports. services, there is a In Wisconsin growing underserved alone, a total of market opportunity 8,485 companies for banks to tap exported goods in into, in industries 2016. Of these, commonly targeted 7,337 (or 86.5%) by the banking were small firms; industry. Nearly 35% they generated of small business 26.8% of Wiscon- exporters surveyed sin’s $19 billion in stated that they find total exports. Senior it more difficult to SBA staff recently finance foreign sales. conducted a local “Indeed, as banks roundtable for begin to look deeper lenders in southeast into their existing Wisconsin to discuss customer base, many the various ways are surprised to find SBA can play a role existing customers in helping banks already exporting grow their portfolio products or services,” to include inter- Fazio shared. More- national finance. over, diversifying a bank’s loan portfolio “Our job is to miti- » Of the four key export sectors (manufacturing, wholesale trade, retail trade, and ag) identified gate your risk,” said by SBA, there are nearly 1.7 million small businesses operating in these sectors, with over 172,000 to include some inter- David Glaccum, SBA of those exporting products or services in 2018. Of those small business exporters, SBA provided national loans helps associate administrator only 165 export loans. SBA’s goal is to grow these loan numbers over the next year or so. strengthen a bank’s for the Office of International balance sheet with Trade, at the meeting to lenders. export sectors (manufacturing, the pool of potential borrowers. customers who will be SBA has three different export wholesale trade, retail trade, Part of the explanation for sticky to the bank. loan programs designed to and ag) identified by SBA, the disconnect in the numbers For more information about provide bank customers, notably there are nearly 1.7 million is because many small business the SBA Export Loan programs, small businesses, with solid small businesses operating exporters are using cash in or to be added to a referral financing options through their in these sectors, with over advance terms to finance their list of export businesses SBA local bank while also providing 172,000 of those exporting export business rather than encounters that have financing the bank with as much as a products or services in 2018. obtain a loan. “Cash in advance needs, contact Mike Fazio 90% guaranty depending on Of those small business terms are really not the best at [email protected], the program used. exporters, only 165 SBA export solution for businesses to get or 202-322-3352. “Small business customers loans were provided in 2018. better margins compared to Oswald Poels is WBA president are an untapped market It is a goal of the SBA to grow financing through a bank with and CEO. DECEMBER 2019 27

WISCONSIN BANKER Remodeling for You: Association Officers: Mark Meloy (Chair), CEO, First Business Bank, Madison Paul Kohler (Chair-Elect), President/CEO, Charter Bank, Eau Claire Please Excuse Our Dust…The Ken Thompson, (Vice Chair), President/CEO, Capitol Bank, Madison David Werner (Past Chair), President/CEO, Park Bank, Milwaukee WBA Office is Being Remodeled Rose Oswald Poels, President/CEO, Wisconsin Bankers Association, Madison As part of WBA’s ongoing Association Board of Directors: Alvaro Araque Timothy J. Kotnour, President/CEO efforts to serve our member Executive Director – Market Director Banking State Bank Financial, La Crosse JPMorgan Chase Bank, New Berlin Daniel J. Peterson, President/CEO banks, the association James R. Chatterton, President The Stephenson National Bank & Trust is committed to staying National Exchange Bank & Trust, Fond du Lac Marinette Christopher Del Moral-Niles, EVP/CFO Thomas A. Reil, President up-to-date on industry Associated Banc-Corp, Green Bay Waldo State Bank and business trends. The Mark Erickson, Regional President Scot Thompson, President/CEO MidWestOne Bank, Osceola Denmark State Bank WBA office is currently Donna J. Hoppenjan, President/CEO Tom Van Pelt, President/CEO undergoing an extensive remodel to help us continue Mound City Bank, Platteville Citizens State Bank, Hudson Gerald H. Jacobson, President Mark Wierman, President that mission of service. When completed, the updated Northwestern Bank, Chippewa Falls Ixonia Bank

building will offer additional technology-enabled meeting Wisconsin Banker is published by Wisconsin Bankers Association, 4721 South Biltmore Lane, rooms and training spaces, as well as areas for member Madison, WI 53718; Telephone: 608-441-1200; Fax: 608-661-9381; www.wisbank.com. Eric Skrum, Editor Advertising: bankers to interact with staff, and a special Honor Wall 608-441-1216 [email protected] recognizing the past achievements and dedication of [email protected] Wisconsin bankers. To report a change of address, email us at [email protected]. The publication of advertisements does not necessarily represent endorsement of those products If you plan to visit the WBA office in the coming or services by the Wisconsin Bankers Association. The editor reserves the right to reject any advertising or editorial copy deemed unsuitable for publication for any reason. Copy deadline is months for training or for a committee meeting, please eight business days before publication date. watch your step as we move forward with this exciting Disclaimer: With the exception of official announcements, the Wisconsin Bankers Association disclaims all responsibility for opinions expressed and statements made in printed articles and update. Construction will continue after the opening of advertisements in the Wisconsin Banker. This publication is designed to provide accurate and the Engagement Center and the full office will be ready authoritative information in regard to the subject matter covered. It is distributed with the under- standing that the publisher is not engaged in rendering legal, accounting or other professional in the spring of 2020. services. If legal or accounting advice or expert assistance is required, the services of a qualified professional should be sought.

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