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A publication for members of the North Dakota Bankers Association.
Volume 19 • Issue 7 June 20, 2019
New Officers Elected
at Annual Convention
Also in this issue:
Live Well: Work Well - Fuel Your
Workout the Right Way
Vendor Management: How
Should I Categorize My Vendors?
Much To Do About Private Flood
Class of 2019 Graduates from
Dakota School of Banking
NDBA • PO Box 1438, Bismarck, ND 58502-1438 • Ph: 701.223.5303 • Fax: 701.258.0218 • Email: ndba@ndba.com • www.ndba.com
CHaiRMaN’S CORNER
It is hard to believe that my term as Chair of NDBA is over. The year went by quickly and NDBA
was very active.
This past year NDBA finalized its strategic plan and NDBA Services Board held a planning retreat
and identified some key areas that would increase services to member banks through the development
Todd Steinwand of four task forces. These task forces are working to develop a curriculum specific to community
NDBA Chairman
Chief Business
banking, develop leadership opportunities for future banking leaders, focus on appraisal review and
Development Officer credit review and stream-line vendor management. The task forces will be reviewing their work,
Bank of North Dakota
Bismarck
discussing business providers and determining outcomes this fall. I want to thank all members of
the task forces and I look forward to the results and benefits they will provide to our industry. A big
thank you to the NDBA staff who are coordinating these efforts.
My congratulations to new NDBA Chair Judd Graham. Judd will be a great leader. I want to
thank you all for allowing me to serve as your chair this past year. Shelly and I have enjoyed the
opportunity to get to know many of you better. I am so thankful to work with great people in a
great industry.
Upcoming NDBA Events
JUNE 2019 JULY 2019 AUGUST 2019 June 2019
S M T W T F S S M T W T F S S M T W T F S 24-27 National School for Beginning Ag Bankers
1 1 2 3 4 5 6 1 2 3 Spearfish, SD
2 3 4 5 6 7 8 7 8 9 10 11 12 13 4 5 6 7 8 9 10 July/August 2019
14 15 16 17 18 19 20 14-26 Graduate School of Banking at Colorado
9 10 11 12 13 14 15 11 12 13 14 15 16 17
28-Aug 9 Graduate Banking at the
16 17 18 19 20 21 22 21 22 23 24 25 26 27 18 19 20 21 22 23 24 University of Wisconsin-Madison
23 24 25 26 27 28 29 28 29 30 31 25 26 27 28 29 30 31 September 2019
30 9-12 NDBA Group Meetings
Grand Forks, Fargo, Bismarck & Minot
SEPTEMBER 2019 OCTOBER 2019 NOVEMBER 2019 26-27 NDBA Ag Credit Conference - Bismarck
S M T W T F S S M T W T F S S M T W T F S
October 2019
1 2 3 4 5 6 7 1 2 3 4 5 1 2
3 Peer Group Consortium - Bismarck
8 9 10 11 12 13 14 6 7 8 9 10 11 12 3 4 5 6 7 8 9 17 Get Smart About Credit (GSAC) Day
31 Bank Security Workshop -
15 16 17 18 19 20 21 13 14 15 16 17 18 19 10 11 12 13 14 15 16 Courtyard by Marriott, Bismarck
22 23 24 25 26 27 28 20 21 22 23 24 25 26 17 18 19 20 21 22 23 February 2020
29 30 27 28 29 30 31 24 25 26 27 28 29 30 14-15 NDBA Bank Management Conference
Westin Kierland Resort - Scottsdale, AZ
DECEMBER 2019 JANUARY 2020 FEBRUARY 2020
S M T W T F S S M T W T F S S M T W T F S
1 2 3 4 5 6 7 1 2 3 4 1
8 9 10 11 12 13 14 5 6 7 8 9 10 11 2 3 4 5 6 7 8
15 16 17 18 19 20 21 12 13 14 15 16 17 18 9 10 11 12 13 14 15
22 23 24 25 26 27 28 19 20 21 22 23 24 25 16 17 18 19 20 21 22
29 30 26 27 28 29 30 31 23 24 25 26 27 28
2
CoNTeNTS
EXECUTIVE COMMITTEE
16
CHAIRMAN CHAIRMAN-ELECT TREASURER
26 Todd Steinwand
Bank of North Dakota
Judd Graham
Bremer Bank
Jolene Muscha
Bank of Glen Ullin
Bismarck Fargo Glen Ullin
NDBA BOARD OF DIRECTORS
Deneen Axtman Christie Obenauer Ernie Strube
Cornerstone Bank Union State Bank Goose River Bank
Fargo Hazen Mayville
Todd Heilman Kelly Rachel Kathy Torske
22 Western State Bank Unison Bank American Trust Center
Devils Lake Jamestown Bismarck
FEATURES Craig Johnson Steve Rehovsky Dan Vollmer
Merchants Bank First United Bank Dacotah Bank
16 2019 SDBA/NDBA Annual Convention: Focus Rugby Park River Minot
Forward
Jay Lies Deb Schouweiler Lee Weisbeck
22 Live Well: Work Well - Fuel Your Workout Wells Fargo Peoples State Bank Starion Bank
Fargo Fairmount Mandan
the Right Way
24 Financial Live Well: Buying Your Retirement Kim Meyer
Gate City Bank
Tom Stennes
Harwood State Bank
25 Making Sense of Your Prescription Drug Plan Fargo Harwood
26 Class of 2019 Graduates from Dakota School of
Banking NDBA SERVICES, INC. BOARD OF DIRECTORS
30 Thoughts on Investment Management: Seven CHAIR
Jeff Leuthold Duane Bowman Bernie Sinner
Points to Ponder American State Bank & Trust Co Dakota Western Bank BankNorth
Williston Bowman Casselton
32 Vendor Management: How Should I Categorize
My Vendors? VICE-CHAIR Gary Inman Jeremy Skoglund
Darren Haugen Bell Bank First Western Bank
34 SEP Plans: Another Connection to Small Starion Bank
Mandan
Fargo Bismarck
Employer Jamie Nelson Jeff Weiler
Lois Bednar Bank of North Dakota
36 Much To Do About Private Flood Bank Forward
Farmers Security Bank
Washburn Bismarck
Fargo
IN EVERY ISSUE
2 Calendar of Events
3 NDBA Directors & Staff NDBA STAFF
4 Articles Rick Clayburgh Lisa Dolajak Ann Reich
President and CEO Communications and SVP of Strategic Partnerships
12 NDBA Education Events & Webinars rick@ndba.com Marketing Coordinator ann@ndba.com
lisa@ndba.com
38 Happenings Jackie Bauer
Business and Database Jolene German NDBA GENERAL
42 Banker Classifieds Coordinator Administrative Assistant COUNSEL
jackie@ndba.com jolene@ndba.com
Tracy Kennedy
Angi Day tracy@ndba.com
Mission Statement Benefits Coordinator
angi@ndba.com
Dorothy Lick
SVP of Education
dorothy@ndba.com
Extraordinary Leadership for North Dakota Banks
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Fed Report Reveals Banker, could include, among other things, an explicit guarantee. Should
Congress create an explicit guarantee, he emphasized that “it
Community Group Feedback on should be limited, clearly defined and paid for.”
CRA Modernization To read the remarks visit: https://www.fhfa.gov/Media/
Bankers and community groups agree PublicAffairs/Pages/Prepared-Remarks-of-Dr-Mark-A-Calabria-
on several areas of possible Community Director-of-FHFA-at-2019-Ginnie-Mae-Summit.aspx
Reinvestment Act regulatory reforms,
according to a summary of several Congress Extends NFIP through
roundtable meetings released by the
Federal Reserve.
September 30 - House Committee
The summary, based 29 roundtables
Approves NFIP and Beneficial
nationwide that included more than Ownership Bills
400 participants, showed agreement that: CRA assessment areas President Trump has signed H.R. 2157,
need to reflect community needs; rural communities have unique a disaster aid relief bill that included a
characteristics under CRA evaluations; the CRA performance test provision to extend the National Flood
structure needs reform and should include different evaluation Insurance Program (NFIP) through
methods rather than a single metric or ratio; CRA examinations September 30, 2019.
need more clarity, consistency and timeliness; and definitions of
eligible community development activities need to be clearer. The House Financial Services
Committee has voted unanimously
The summary covered additional banker and community group to approve a bill that would extend the National Flood Insurance
feedback on assessment areas, CRA in underserved communities, Program (NFIP) through September 30, 2024 and make several
the CRA performance test structure, evaluation of performance reforms to the program. Specifically, the bill addresses affordability
and defining community development activities. issues, improves flood mapping, flood plain management and
To read the reportvisit: https://www.federalreserve.gov/ mitigation. It also includes the introduction of a “continuous
publications/files/stakeholder-feedback-on-modernizing-the- coverage” provision that allows borrowers who leave the program
community-reinvestment-act-201906.pdf to purchase private flood insurance to return to the NFIP without
penalty. The bill is the result of a compromise reached between
Chairwoman Maxine Waters (D-CA) and Ranking Member
FHFA Director Flags Risk from Patrick McHenry (R-NC).
Nonbank Mortgage Lenders
The committee also unanimously passed H.R. 3111; legislation
Almost 50% of all mortgage originations sponsored by Rep. Nydia Velasquez (D-NY) that makes changes
sold to Fannie Mae or Freddie Mac to the NFIP claims process, including requiring the reinstatement
last year came from non-depository of the prudential regulators’ Question and Answer on NFIP
institutions, FHFA Director Mark compliance and requires regular updates to the guidance.
Calabria said at an industry event in
Washington, D.C. Noting that “there The Committee also passed H.R. 2513, the Corporate
are some key differences between banks Transparency Act of 2019, by a vote of 43 to 16. The legislation,
and non-banks that we need to address which is sponsored by Rep. Carolyn Maloney (D-NY), establishes
in a responsible way,” Calabria said that a national database of beneficial ownership information to
under his leadership, FHFA will work to counter the use of shell corporations to move illicit funds. The bill
Mark Calabria
improve counterparty risk standards at directs the Financial Crimes Enforcement Network (FinCEN)
Fannie and Freddie. “Our goal is to ensure that originators have to create a national database of beneficial ownership information.
the financial strength to continue lending through any market Corporations and limited liability companies would be required to
weakness or stressed environment,” he said. self-report beneficial owners to FinCEN.
Calabria also outlined his plan for removing the GSEs from These bills now proceed to the full House for a vote.
conservatorship. A critical step in that process will be building
capital at Fannie and Freddie, a process he expects to be underway
by next year. He added that he will continue to work with
Congress on a legislative solution to housing finance reform, which
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NDBA Joins State Bankers balance method, any transaction authorized against a positive
available balance does not incur an overdraft fee, even if the
Associations in Support of transaction later settles against a negative available balance.
Beneficial Ownership Bill The FDIC also flagged recurrent issues related to RESPA Section
NDBA joined more than 50 state 8; Regulation E; loan programs that allow customers to skip a
bankers associations in a letter to House payment; and the calculation of finance charges and disclosures
Financial Services Committee leaders in related to lines of credit.
support of Maloney's bill calling for the To read more visit: https://www.fdic.gov/regulations/examinations/
Financial Crimes Enforcement Network consumercomplsupervisoryhighlights.pdf
to create a database of beneficial
ownership information. The bipartisan
bill – which would require corporations NDBA Joins State Associations
and limited liability companies to self-report beneficial owners to in Urging Cannabis Hearings in
FinCEN at the time of formation – is expected to be considered by
the committee this week.
Senate
NDBA has joined more than 50 state bankers associations in
“While financial institutions go to great lengths to know their
urging the Senate Banking Committee to hold hearings on
customer and follow all requirements to know the beneficial
legislative solutions to the conundrum faced by banks in states
owner, there is no formal system in place to ensure that shell
where marijuana has been legalized. While the SAFE Banking
companies are not hiding money to facilitate illegal activities,” the
Act passed the House Financial Services Committee in March, no
associations wrote. They added that “while this legislation may
action has been taken on the companion bill in the Senate.
be transformative for the United States, it would simply bring the
U.S. in line with other developed countries.” To read the letter visit: https://www.aba.com/Advocacy/
LetterstoCongress/Documents/STEX-Joint-letter-re-Support-for-
To read the letter visit: https://www.aba.com/Advocacy/
Cannabis-hearing.pdf
LetterstoCongress/Documents/stex-hr2513-061019.pdf
FDIC Flags Overdraft Issues Report: GOP Senators Give
in Consumer Compliance Positive Signals on SAFE Banking
Supervisory Highlights Act
Two Republican
The FDIC has released its first
senators expressed
edition of Consumer Compliance
optimism that the
Supervisory Highlights, a new
Senate Banking
publication intended to provide
Committee will take up
institutions with information
the SAFE Banking Act,
and observations related to the
which would provide
agency’s consumer compliance
a framework under
supervision activities. This issue
federal law for banks to
highlights findings from the
serve legitimate cannabis businesses in states that have legalized the
approximately 1,200 consumer
drug, according to a recent news report.
compliance examinations
conducted by the FDIC in 2018. Senate Banking Committee member Kevin Cramer (R-N.D.) and
Sen. Rand Paul (R-Ky.) recently met with committee Chairman
Among the key issues flagged by the FDIC was improper
Mike Crapo (R-Idaho) to discuss bringing the SAFE Banking Act
disclosure of overdraft programs, which can lead to potential
up for consideration, the news outlet Marijuana Moment reported.
unfair or deceptive practices violations. The FDIC noted that
“He didn’t say ‘hell no,’” Cramer told the outlet. “I thought he
these issues can arise particularly with processing systems that
was quite open-minded to it.” Meanwhile, Paul said that “I think
use an “available balance” method to assess overdraft fees. To
there’s a good chance they’re going to bring it up.”
help mitigate overdraft-related risks, institutions can provide clear
disclosures detailing how overdraft fees are assessed, the FDIC To read more visit: https://www.marijuanamoment.net/marijuana-
noted. Additionally, they can ensure that when using an available banking-bill-has-a-chance-in-the-senate-republican-lawmakers-say/
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CBO Estimates SAFE Act Would Citing Economic Risk, Senators
Save Government Money Call for CECL Delay, Study
The Congressional Budget Office has released its cost estimate for Senator Kevin Cramer has
H.R. 1595, the SAFE Banking Act that would allow banks to serve joined a bipartisan group of
legitimate cannabis businesses in states that have legalized the drug. 15 senators in a letter to the
According to the CBO, the bill would save the federal government Federal Reserve and FDIC
$4 million over a ten-year period. urging a delay in the implementation of the Current Expected
Credit Loss model for loan loss accounting until after the agencies
To read the CBO report visit: https://www.cbo.gov/system/
can study CECL’s economic effects. The senators highlighted
files/2019-05/hr1595.pdf
concerns raised by banks that CECL may reduce credit availability
and exacerbate economic cycles, arguing that the “potential
McWilliams: Bank-Made Small- economic disruptions of the new standard mandate careful study
Dollar Loans Critical for Financial before it goes into effect for any bank.”
Inclusion “Bankers with deep knowledge of the local communities they
serve should make lending decisions based on their judgments
The FDIC is actively looking for and supported by sound risk management practices,” the group
ways to enable banks to offer small- of seven Republicans and eight Democrats wrote. “They should
dollar loans, FDIC Chairman Jelena not be artificially constrained by sophisticated, yet imprecise,
McWilliams said at a Cato Institute forward-looking models that cannot accurately predict the future.”
event, drawing an important link The letter follows a similar bipartisan letter to the Securities and
between the availability of these Exchange Commission from House members last week.
products and financial inclusion.
NDBA thanks Senator Cramer for his leadership on this important
“If banks do not offer small-dollar issue for North Dakota banks.
products, consumers who need
small-dollar loans do not even have To read the letter visit: https://www.aba.com/Advocacy/Grassroots/
Jelena McWilliams WINNDocs/Tillis-Jones-CECL-Letter-05102019.pdf
an opportunity to become banked
and start building credit histories,” McWilliams explained. She
added that the agency is working to revise its policy framework “to House Lawmakers Introduce Bill to
encourage banks to offer small-dollar loan products to customers
in need.”
Stop and Study CECL
In related news, a bipartisan group of House lawmakers
To read McWilliams speech visit: https://www.fdic.gov/news/
have introduced H.R. 3182, a bill calling for a halt to the
news/speeches/spjun1219.html
implementation of the current expected credit loss standard until
a quantitative impact study can be completed. A companion bill
FDIC Chair Says CRA Reform (S.1564) was previously introduced in the Senate by Sen. Thom
Will Clarify Qualifying Activities, Tillis (R-N.C.) and co-sponsored by Senator Kevin Cramer.
Lending Assessment To read more visit: https://www.congress.gov/bill/116th-congress/
house-bill/3182?q=%7B%22search%22%3A%5B%22hr3182%22%
In a speech to community bankers, FDIC Chairman Jelena 5D%7D&r=1&s=4
McWilliams said that the regulators’ initiative to modernize the
Community Reinvestment Act (CRA) will focus on clarifying
exactly what bank activities qualify for CRA credit as well as the Senators Introduce Draft of
lending offered beyond a bank’s brick-and-mortar market area. In Bipartisan AML Reform Bill
addition, she noted that the rules will ensure that CRA investments
A bipartisan group of senators have released draft legislation aimed
target those most in need within the community.
at reforming several existing anti-money laundering rules. The
To read McWilliam’s speech visit: https://www.fdic.gov/news/ lawmakers – Sens. Mark Warner (D-Va.), Tom Cotton (R-Ark.),
news/speeches/spjun0419.html Doug Jones (D-Ala.) and Mike Rounds (R-S.D.) – are seeking
public feedback on the bill by July 19.
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Among other things, the bill would facilitate the use of transaction asset stability relative to the
monitoring software, encourage information sharing and ensure broader industry – even
that current and future payment systems are included in the AML/ during the Great Recession.
CFT supervisory regime. In addition, it directs the Financial
Farm banks – defined by
Crimes Enforcement Network to establish a beneficial ownership
ABA as the 1,772 banks
database – something ABA has previously advocated for.
whose ratio of domestic farm loans to total domestic loans is greater
The Senate bill is the latest development in an ongoing effort to than or equal to the industry average – tend to make high-quality
modernize and strengthen the current AML/CFT framework farmland loans, Dante wrote. In addition, they have demonstrated
in the U.S. On the House side, ABA is currently supporting a remarkable resilience during turbulent financial conditions. “With
beneficial ownership database bill introduced by Rep. Carolyn farm bank health and profitability strong in the first quarter of
Maloney (D-N.Y.) that is expected to be considered by the 2019, farm banks are well positioned to face potential volatility.”
Financial Services Committee this week.
To read the article visit: https://bankingjournal.aba.com/2019/06/
To read a summary created by Sen. Warner visit: https://www. farm-banks-remain-strong-despite-recent-loan-weakness/
scribd.com/document/412943793/ILLICIT-CASH-Act-Summary-
and-Section-By-Section-060719
Quarles to Banks: Begin Transition
Farm Banks Show Resilience, from LIBOR Now
In the clearest terms expressed by any regulator to date, Federal
Strength Reserve Vice Chairman for Supervision Randal Quarles
Despite widespread concerns that farmland values are headed emphasized that banks need to begin transitioning away from
downward, farm banks on the whole appear to be healthy and the London Interbank Offered Rate as a benchmark. “Regardless
resilient. In an ABA Data Bank post, ABA’s Hugo Dante looked of how you choose to transition, beginning that transition now
at the performance of farm banks over the past decade, finding would be consistent with prudent risk management and the duty
that farm banks have enjoyed lower delinquency rates and greater that you owe to your shareholders and clients,” he said in prepared
YOU’RE INVITED
100TH ANNIVERSARY CELEBRATION
Celebrate 100 years with us. There will be BND Museum Tours, Speakers,
Pride of Dakota Booths and more.
MONDAY, JULY 29
11 a.m. - 4 p.m. | 1200 Memorial Hwy | Bismarck, ND
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remarks for a roundtable hosted by the not result in lower projections of net interest income under stress in
Alternative Reference Rates Committee the stress-test calculations of the Federal Reserve,” he said.
in New York.
The event hosted by the ARRC – a group of market participants
Quarles noted that the ARRC has convened by the Fed – also included presentations on how to use
developed Libor fallback language for SOFR, the development of fallback language and transition steps
a variety of financial instruments, and firms should be taking now.
he encouraged market participants
To read the speech visit: https://www.federalreserve.gov/
to implement this language. He
newsevents/speech/quarles20190603a.htm
added that an “easier path... is simply
to stop using Libor.” Relying on
fallback language “brings a number Randal Quarles GSEs Launch Uniform Security
of operational risks and economic risks,” he explained. “Firms Fannie Mae and Freddie Mac have
should be incorporating these factors into their projected cost officially launched the Uniform
of continuing to use Libor, and investors and borrowers should Mortgage-Backed Security, which
consider them when they are offered Libor instruments.” will replace the current TBA-eligible
Quarles provided additional details on the Fed’s supervisory MBS issued by the two GSEs. The
approach to the reference rate transition, including that the agency UMBS will be issued by Common
will expect to see “an appropriate level of preparedness at the Securitization Solutions, Fannie and
banks we supervise... and that level must increase as the end of Freddie’s joint venture. The launch is
2021 grows closer.” He also responded to concerns that the Fed’s the latest step in a years-long effort to
supervisory stress tests might penalize banks that replace Libor issue a common security.
with the ARRC’s recommended alternative, the Secure Overnight Robert Fishman
FHFA Deputy Director Robert
Financing Rate. “Choosing to lend at SOFR rather than Libor will Fishman noted that the launch is “a significant milestone that
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combines the separate Fannie Mae and Freddie Mac to-be- Regulators Update Host-State
announced markets into one, bringing additional liquidity and
efficiency to the market. By addressing structural issues and trading Loan-to-Deposit Ratios
disparities, the UMBS will benefit taxpayers and the nation's The federal banking agencies have issued updated host-state loan-
housing finance system.” to-deposit ratios that they will use to determine compliance with
To read more visit: https://bankingjournal.aba.com/2018/02/ Section 109 of the Riegle-Neal Interstate Banking and Branching
change-is-coming-to-the-tba-market-an-update-on-the-single-security/ Efficiency Act.
Section 109 prohibits banks from establishing or acquiring
FDIC Votes to Approve Joint branches outside their home states primarily for the purpose of
deposit production. Congress enacted Section 109 to ensure that
Agency Capital Simplification interstate branches would not take deposits from a community
Proposal without helping to meet its credit needs.
The FDIC has voted to approve a final To read more visit: https://www.fdic.gov/news/news/press/2019/
interagency rule that would simplify pr19041a.pdf
the complex Basel III regulatory capital
calculations for all but the very largest S. 2155 Rule Changes to Be Done
banks. The final rule would simplify the treatment of assets
subject to common equity tier 1 capital threshold deductions by Year-End, Regulators Say
and limitations on minority interest with a more straightforward The heads of the banking agencies told lawmakers that they expect
measure. to have regulatory changes from the S. 2155 regulatory reform law
The final rule would simplify regulatory capital requirements implemented by year-end. Testifying before the House Financial
for mortgage servicing assets, certain deferred tax assets arising Services Committee recently, Federal Reserve Vice Chairman for
from temporary differences and investments in the capital of Supervision Randal Quarles said that the agencies are “on track to
unconsolidated financial institutions (such as investments in complete the implementing actions for S. 2155,” adding that they
trust preferred securities) by effectively raising the deduction would “have the bulk of the implementing actions completed by
threshold for each of these to 25%. The final rule also simplifies the third quarter of this year, and all of them completed by the end
the calculation for capital issued by a consolidated subsidiary of a of this year.”
banking organization and held by third parties (sometimes referred Items still outstanding include a final rule on the treatment of
to a minority interest) that is includable in regulatory capital. high-volatility commercial real estate, a framework for applying
The key changes in the final rule are limited to banks not using the enhanced prudential standards to banks with more than $100
Basel advanced approaches. In addition, banks do not have the billion in assets, an appraisal exemption for certain rural real-estate
option to early-adopt the relief provisions, which do not take effect transactions and the finalization of the community bank leverage
until April 2020. ratio.
To read more visit: https://www.fdic.gov/news/board/2019/2019- Regulators also faced questions from several lawmakers who raised
05-28-notational-mem-a.pdf concerns about the current expected credit loss standard and its
effect on credit availability. When asked about the extent to which
To read the final rule visit: https://www.fdic.gov/news/ the agencies themselves have evaluated the implications of CECL,
board/2019/2019-05-28-notational-fr-a.pdf FDIC Chairman Jelena McWilliams acknowledged that “it’s
difficult, because there are so many different ways of implementing
CFPB Issues TRID FAQs CECL.” As implementation moves forward, “our hope is that . .
. we will be able to get the information from the first tranche of
The CFPB has issued a set of FAQs on the TILA-RESPA
banks that are complying,” she said.
Integrated Disclosures. The FAQs address corrected closing
disclosures and the three business-day waiting period before Comptroller of the Currency Joseph Otting added that regulators
consummation; model forms; and construction loans. will be closely monitoring the regulatory capital effects of CECL
over the three-year phase-in period, noting that “there’s no magic
To read more visit: https://www.consumerfinance.gov/policy-
to that number – if there are other issues, we’ll be happy to
compliance/guidance/tila-respa-disclosure-rule/tila-respa-integrated-
consider that.” Added Quarles: “As we see the consequences of
disclosure-faqs/
CECL during the phase-in period, we have the tools to respond on
the capital side.”
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OCC Issues Final HOLA Rule version of the Call Report,
as directed by regulatory
The OCC has issued a final rule reform law S. 2155. Under
implementing the Home Owners’ Loan the final rule, non-complex
Act (HOLA) flexibility provisions in S. institutions with less than $5 billion in assets would be permitted
2155. The rule allows certain federal stock to file the most streamlined version of the FFIEC 051 Call Report.
and mutual savings associations to elect Banks filing the FFIEC 051 Call Report will also see a reduction of
the rights and duties of national banks. the number of data items required in their first- and third-quarter
Under the final rule, federal savings filings.
associations with total consolidated assets of $20 billion or less as To read more visit: https://www.federalreserve.gov/newsevents/
of December 31, 2017, may elect to become “covered associations,” pressreleases/files/bcreg20190617a1.pdf
which eliminates the HOLA portfolio asset restrictions and
subjects them to the same duties, restrictions, penalties, liabilities,
conditions and limitations that apply to national banks without Agencies Release List of Areas
requiring a charter conversion. The final HOLA rule is effective on Eligible for CRA Credit
July 1, 2019
The federal banking agencies yesterday released the 2019 list of
To read more visit: https://occ.treas.gov/news-issuances/news- distressed or underserved nonmetropolitan middle-income areas in
releases/2019/nr-occ-2019-54.html which banks participating in revitalization or stabilization activities
will be considered for Community Reinvestment Act credit.
Agencies Issue Final Rule To read more and view the list visit: https://www.federalreserve.
Reducing Call Report Burden on gov/newsevents/pressreleases/bcreg20190617b.htm
Small Banks
The financial regulatory agencies have finalized changes that would
expand the number of banks eligible to file a more streamlined
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20174 AD North Dakota Bankers Association 2019_Callie_V3.indd 1 2/6/19 10:35 AM
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11North Dakota Bankers Association
Education Events
For more information regarding these educational opportunities, visit
www.ndba.com or contact Dorothy Lick, SVP of Education, North
Dakota Bankers Association, 701.223.5303.
EVENT DATE LOCATION WHO SHOULD ATTEND?
National School June 24-25 Black Hills State University, Ag bankers with a strong knowledge of financial
Spearfish SD analysis in ag banking who desire further training in
for Experienced Ag analyzing and troubleshooting more complex and
Bankers problem credits.
NDBA Group September 9-12 Grand Forks, Fargo, Bismarck All NDBA Members!
Meetings and Minot
NDBA Ag Credit September 26-27 Bismarck Both entry-level and experienced ag lenders will
gain valuable information.
Conference
HSA Workshop September 30 Delta by Marriott, Fargo Attend the HSA Seminar for practical understanding
of critical rules and operational issues of a
successful HSA program.
IRA Seminars October 1 Courtyard by Marriott, Bismarck IRA Essentials gives attendees a solid foundation
October 2 Courtyard by Marriott, Bismarck of IRA knowledge. Advanced IRAs builds on the
October 3 Delta by Marriott, Fargo attendees’ knowledge of IRA basics to address
some of the more complex IRA issues their banks
October 4 Delta by Marriott, Fargo
may handle.
Bank Security October 31 Courtyard by Marriott, Bismarck Security officers or directors, operations managers,
auditors, HR Directors, legal staff, loan officers,
Workshop disaster recover managers, collection staff and
fraud investigators.
NDBA Bank February 14-15, Westin Kierland Resort Presidents, CEOs, senior management and
2020 Scottsdale, AZ directors.
Management
Conference
NDBA/SDBA Annual June 7-9, 2020 Ramkota Hotel, Bismarck Presidents, CEOs, senior management staff,
lenders, marketing team members and sales
Convention managers.
Dakota School of June 14-19, 2020 University of Jamestown, Attendees are generally first-or mid-level managers
Jamestown seeking advancement in their banks and careers.
Banking However, others who would benefit from exposure
to the banking industry and increased familiarity
with the individual components that make up a bank
are also encouraged to attend.
12Upcoming
Bank Webinars NDBA offers convenient bank training and access
to timely topics through a variety of webinars.
EVENT DATE EVENT DATE
Residential Construction Lending June 21 Flood Insurance: Compliance July 11
Issues
Business, Industry and June 24
Management Risk Assessment UDAAP: An Acronym You NEED July 12
To Know!
15 Reasons Training Doesn’t Stick June 25
ATM Jackpotting and Unlimited July 15
Signature Card Danger Zones June 25
Operations
Common Pitfalls of ARM June 26
Dealing with Subpoenas, July 16
Disclosures
Summonses, Garnishments, Tax
Do’s and Don’ts on Checks June 26 Levies, Etc.
Records Management and June 27 New BSA Officer Training July 16
Retention
Implementing the Revised July 17
Human Trafficking and Human June 27 Uniform Residential Mortgage
Smuggling Loan Application
Role of the Information Security June 28 Introduction to Commercial July 17
Officer Lending
Troubled Debt Restructuring July 1 State of HMDA in 2019 July 18
6 Steps of an IT Audit Program July 8 Limited Liability Companies: Do's July 18
Dealing with Dysfunctional Teams July 9 and Don'ts
CRE Appraisals: Appraisal July 9 Closing Accounts July 19
Components, Approaches to Uniform Commercial Code Rules: July 22
Value and Cap Rates How to Comply to Attach and
Executive Total Compensation – July 10 Perfect Secured Transactions
Strategies to Motivate and Incent CRA Nuts & Bolts - Five Steps to July 23
Best-Ever Compliance Checklists July 10 Pass the Exam
for Consumer Loans
Lending to Local Government July 11 For more information, visit www.ndba.com and
Units click on “Education” and then “Web Seminars.”
13First Far Your Success
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from the Pacific Northwest to the Great Lakes. We can't wait to share
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For more information,
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406.281.2625
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First for Your Success'"
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800. 752.8140
14We Protect YOU
from the Unexpected
Property & Casualty Lines Lending Related Lines
• Property & Casualty • MasterPropert (Force Placed)
• Foreclosed Property • Mortgage Protection
• Workers Compensation • Lenders Single Interest Jeff Otteson
• Umbrella Liability • Flood Compliance Solutions Vice President of Sales
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Professional/Specialty Lines 608.217.5219
• Financial Institution Bond
• Directors & Officers Liability
• D&O Civil Money Penalties
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NETWORK SECURITY nick@sbscyber.com
IT AUDIT Rick Olivier
605-270-3321
EDUCATION rick@sbscyber.com
Visit www.sbscyber.com to learn more!
152019
SDBA/NDBA
Annual
Convention
More than 350 bankers, family
members and business partners
gathered to “Focus Forward,” at the
2019 SDBA/NDBA Convention held
June 2-4 in Sioux Falls, SD
The convention kicked off on Sunday, June 2, Then digital strategist Eric Cook moderated a social
with a welcome party in the exhibit hall. Attendees media panel discussion exploring how banks have
visited with business partners from 67 exhibiting successfully incorporated social media. Robert
companies and took part in the exhibit hall game. Kleinhenz from Beacon Economics provided a
Monday morning, attendees were invited to a timely look at the U.S. economy and credit market
fellowship breakfast to hear speaker Dr. Richard risk. To wrap up the morning, six bankers from
Deming, medical director at Mercy Cancer North and South Dakota presented Ignite talks,
Center. V.J. Smith and Susan Kalsow provided personal five-minute stories. After the separate
keynote messages on leadership principles and state association business luncheons, participants
understanding personality characteristics and gathered for a dessert social. Special events for
how to maximize the benefits of diversity. Many spouses included a session on organizing saved
attendees then headed out to golf tournaments at belongings and a breakfast session on the “Ripple
The Country Club of Sioux Falls and Elmwood Golf Notes” movement. The convention concluded
Course. Others took part in an afternoon tour to Tuesday night in the Sioux Falls Convention Center
Falls Park and downtown Sioux Falls. For Monday with a reception, dinner and entertainment by Time
night’s party in the exhibit hall, bankers, guests and Machine.
business partners enjoyed a futuristic party and
photo booth. Thank you to all the bankers, family members,
exhibitors, sponsors and business partners who
Back at the Convention Center Tuesday morning, took part in this year’s convention. Mark your
Lee Wetherington shared a technology-focused calendars for next year’s convention which will be
keynote on what matters for community banks. held June 7-9 in Bismarck.
1617
THANK YOU TO THE
CONVENTION SPONSORS
DIAMOND SPONSORS SILVER SPONSORS
Eide Bailly LLP Allied Solutions LLC
First PREMIER Bank/PREMIER Bankcard American Bankers Association
Bankers’ Bank of the West
PLATINUM SPONSORS Bank of North Dakota
BankTalentHQ
Ascensus Convergint Technologies/Axis Communiations
The Baker Group Dakota BUSINESS Finance
Bell Bank DCN (Dakota Carrier Network)
Cain Ellsworth & Company, LLP Farmer Mac
Citibank, N.A. First Bankers' Banc Securities, Inc.
Dougherty & Company LLC Great Western Bank
Federal Home Loan Bank of Des Moines Guaranty & Title Co.
Midwest Bankers Insurance Services HTG Architects
NuSource Financial LLC May Adam
Promontory Interfinancial Network, LLC Middaugh Benefits Consulting
SBS CyberSecurity NDBA Services, Inc.
SDN Communications Network Center, Inc.
U.S. Bank NFP Executive Benefits
Wells Fargo Bank Raymond James
Serkland Law Firm
GOLD SPONSORS South Dakota Bankers Insurance & Services, Inc.
BKD CPAs & Advisors South Dakota Development Corporation
Brady, Martz & Associates, P.C. South Dakota Housing Development Authority
CliftonLarsonAllen LLP Sycorr
Dacotah Bank The Advantage Network
Fiserv UMB Bank, n.a.
Kinetic Leasing, Inc. United Bankers’ Bank
Piper Jaffray & Co. Widmer Roel PC
BRONZE SPONSORS
CapFirst Equipment Finance, Inc.
Office Depot
Purple Wave Auction
wild | crg
Windsor Mortgage Solutions
18THANK YOU TO THE CONVENTION EXHIBITORS
THANK YOU TO THE
CONVENTION EXHIBITORS
Abrigo Epicosity Pifers Auction & Realty
The Advantage Network Farmer Mac Purple Wave Auction
Allied Solutions LLC FINPACK Reich & Tang
AmTrust First District Development Company Rochester Armored Car
Ascensus Fiserv RSM US LLP
AUI Systems FPS Gold Core Processing & SBS CyberSecurity
Automated Systems, Inc. eBanking SD Bankers Insurance & Services
Bankers’ Bank of the West Graduate School of Banking SDN Communications
Bankers Equipment Service at Colorado South Dakota Development
Business Essentials Harland Clarke Corporation
CapFirst Equipment Finance, Inc HTG Architects Strategic Resource Management
Central States Health & iSolved Sycorr
Life Co. of Omaha JOHO ONESOURCE Tuscan Club Consulting
CliftonLarsonAllen LLP Journey Technology Solutions United Bankers’ Bank
Complete Compliance, Inc. Kinetic Leasing USDA Rural Development &
Compliance Alliance Kirk Gross Company Small Business Administration
Computer Services, Inc. Marco Technologies Vantage Point Solutions
Convergint Technologies Midco West Gate Bank Correspondent
CRA Partners Money Handling Machines The Weston Group
Crescent Mortgage Company Network Center Inc Wild | Crg
Datrue Process Automation NFP Executive Benefits Windsor Mortgage Solutions
DCI (Data Center Inc.) NuSource Financial LLC Windsor Mortgage Solutions
DCN (Dakota Carrier Network) Office Depot Xigent Solutions
Eide Bailly OneBeacon Financial Services
19NDBA LEADERSHIP
NDBA LEADERSHIP
The North Dakota Bankers Association (NDBA) elected new officers for its 2019-2020 Board of Directors
at the Annual Convention Business Luncheon in Sioux Falls, SD, on June 2. These newly elected officers
officially begin service July 1. NDBA is honored to have the following highly-talented bankers leading the
association this year.
Chairman Judd Graham
Judd Graham, group president of Bremer Bank in Fargo, will serve as NDBA chairman. Judd
is a graduate of Minnesota State University Moorhead with a bachelor’s degree in finance and
has worked in the banking industry for more than two decades. Prior to his transition to Bremer
Bank in 2016, he was with Wells Fargo, serving as the Fargo/Moorhead Market President. Judd
has been active with the Greater Fargo Moorhead Economic Development Corporation, Lake
Agassiz Habitat for Humanity, Fargo Moorhead West Fargo Chamber of Commerce and the
MSUM Paseka School of Business Advisory Council. Judd resides in Fargo with his wife, Idette.
They have two children.
Chairman-Elect Jolene Muscha
Jolene Muscha, president of the Bank of Glen Ullin, is now NDBA chair-elect. Raised in
Fargo, Jolene graduated with a degree in finance from Minnesota State University Moorhead.
Jolene started in the banking industry as a commissioned bank examiner with the FDIC. She is in
her thirteenth year at the Bank of Glen Ullin and has been president for four years. Jolene is on the
Board of Directors for both the Bank of Glen Ullin and Trinity Investments, Inc., the bank’s holding
company. She has been active with the Glen Ullin Job Development Authority and the Glen Ullin
People Promotion Interest and Events committee and is a past NDBA Services Board chairman.
Jolene resides in Beulah with her husband, Vern. They have four grown children, Kaydie, Kelly,
Megan and Mark.
Treasurer Christie Obenauer
Christie Obenauer, CEO of Union State Bank in Hazen, was elected treasurer of NDBA. Christie is
a graduate of St. Olaf College in Northfield, MN, with degrees in economics and political science.
In 2002, she moved back to her hometown of Hazen, where she continued her banking career at
her family’s community bank, Union State Bank. Christie represents the fourth generation in her
family to lead their over 100-year-old institution. Christie is active in many local, regional and state-
level boards involving banking and community development, including Sakakawea Medical Center
and the Energy Capital Cooperative Child Care. She is passionate about community banking, her
community and her state. She firmly believes in “blooming where planted,” and strives to set an
example of that philosophy in everything she does. Christie resides in Hazen with her husband,
Jerry, and children, Isaak, Kordon and Elle.
20THANK YOU TO THE CONVENTION EXHIBITORS
THANK YOU
FOR YOUR SERVICE
Outgoing NDBA Board Directors, Tom Stennes and Deb Schouweiler were recognized for their years of service to
the NDBA Board during the Annual Convention Business Luncheon in Sioux Falls, SD, on June 2. We look forward to
presenting additional service awards at the 2019 NDBA Group Meetings this fall.
Outgoing NDBA Board Directors
Tom Stennes Deb Schouweiler
Harwood State Bank, Harwood Peoples State Bank, Fairmount
NDBA Board Met Prior to the 2019 Convention
Back: Rick Clayburgh, Jay Lies, Craig Johnson, Deb Schouweiler,
Ernie Strube, Kathy Torske, Tom Stennes, Christie Obenauer,
Todd Heilman and Dan Vollmer
Front: Darren Haugen, Judd Graham, Todd Steinwand
and Jolene Muscha
Not Pictured: Kelly Rachel
21122 East Main Ave., Suite 201 | Bismarck, ND 58501 | p 701.223.5303 | e angi@ndba.com
BENEFIT TRUST
Fuel Your Workout
the Right Way
Live Well, Work Well Health and Wellness tips for your work, home and life
brought to you by ND BANKS Benefit Trust.
Superbug Fungus Poses You have to put gas in your car to make it go, right? The same concept can be
applied to your body and working out. Just like you can’t expect your car to
Serious Global Health
get you from point A to point B without fuel, you can’t expect your body to
Threat get you through a workout if it’s not properly fueled. Here’s what you should
The Centers for Disease Control and be eating before, during and after a workout for optimal results.
Prevention (CDC) is warning that
an emerging fungus called Candida Before Your Workout
auris (C. auris) presents a serious
global health threat. This superbug
Nutritionists agree that the best way to fuel your workout is to eat 1-4 grams
fungus is resistant to antifungal of carbs per every 2.2 pounds of your weight about an hour before your
medications and can survive on workout. Some examples of a good pre-workout snack include a piece of
surfaces even after they’ve been whole-grain toast with peanut butter and banana slices, fruit and Greek
cleaned. C. auris can cause serious yogurt, or a peanut butter and banana protein smoothie. You should also
and potentially fatal infections and make sure you’re hydrated before you start your workout.
has infected over 600 people in the
United States. The CDC reports that During Your Workout
between 30% and 60% of infected
patients die. If your workout lasts less than 45 minutes, you really only need to focus on
replenishing the fluids you’re sweating out. If your workout is focused on
C. auris often affects those who are
endurance, like an extended run or lengthy lifting session, consume 30-60
in the hospital, live in nursing homes
or have weakened immune systems. grams of carbs per hour to fuel your workout.
The CDC states that healthy people After Your Workout
usually don’t get C. auris infections.
Unfortunately, it’s difficult to identify What you eat after your workout is just as important as what you eat before.
C. auris infections with standard Make sure to consume 15-25 grams of protein within one hour of finishing
lab methods. Because of the risks it your workout to replenish the muscle glycogen you exerted during your
presents, the CDC is urging health
sweat session. Continue to hydrate and consume protein to help keep
care facilities and professionals to
be on the lookout for C. auris cases muscle soreness at bay. If you had a particularly intense workout, consider
and to notify the CDC of confirmed drinking water or sports drinks enriched with electrolytes to fully replenish
122 East Main Ave., Suite 201 | Bismarck, ND 58501 | p 701.223.5303 | e angi@ndba.com
or suspected cases. your body. n
22122 East Main Ave., Suite 201 | Bismarck, ND 58501 | p 701.223.5303 | e angi@ndba.com
Summer Picnic Safety Tips
At some point throughout the summer, most B E of
N usE will
F I spend
T TR time
U outside
S T with family and friends at a picnic or
backyard barbecue. If you aren’t careful about handling foods during these cookouts, you’re putting yourself and
others at risk for potential food-related illnesses.
Stay safe with these simple tips:
• Wash cooking equipment, dishes and utensils
between uses. Be sure to clean the grill’s surface
after each use and to wash cutting boards after
cutting raw meat.
• Store all perishables in a cooler with ice on top, not
just underneath. Use one cooler for drinks and one
for food. Never eat anything that has been left out
of a refrigerator or cooler for more than two hours.
• Invest in a meat thermometer so you can make
sure all meat is cooked to the proper internal
temperature. n
Contact Angi Day at (701) 223-5303 or
angi@ndba.com for more information on
ND BANKS Benefit Trust.
Preparations:
1. Put a skillet on the stove on medium-high heat.
When the skillet is hot, add oil.
2. Add onion, garlic, celery and carrot and cook about
15 minutes until the mixture is soft and the onions
Chickpeas are lightly browned.
and 3. Raise the heat to high, add the tomatoes, chickpeas
Spinach and water, and cook for 5 minutes. Lower the heat
Saute to low and top the mixture with the spinach (don’t
worry about stirring). Cover and cook until the
Ingredients:
spinach has thawed and heated throughout, about
• 1 Tbsp. vegetable oil 10 minutes. Stir well.
• 1 yellow onion (chopped)
4. Add the lemon juice and red pepper flakes and stir
• 1 clove garlic (minced)
thoroughly. Makes 4 servings.
• 1 celery stalk (chopped)
• 1 carrot (chopped) Nutritional Information (per serving)
• 1 14.5-ounce can low-sodium diced tomatoes Total Calories 193
• 1 16-ounce can low-sodium chickpeas (drained and Total Fat 7g
rinsed with cold water) Protein 10 g
Carbohydrates 28 g
• ¼ cup water
Dietary Fiber 10 g
• 1 10-ounce package frozen spinach Saturated Fat 1g
• 1 tsp. fresh lemon juice Sodium 256 mg
• ¼ tsp. crushed red122 East Main Ave., Suite 201 | Bismarck, ND 58501 | p 701.223.5303 | e angi@ndba.com
pepper flakes Total Sugars 8g
23122 East Main Ave., Suite 201 | Bismarck, ND 58501 | p 701.223.5303 | e angi@ndba.com
BENEFIT TRUST
Live Well, Work Well
Financial tips for your work, home and life brought to you by ND BANKS Benefit Trust.
Buying Your Retirement
Most of us know it is smart to save money for those big- In short, paying for the retirement you desire is ultimately
ticket items we really want to buy, such as a new television, your responsibility. You must take charge. You are the
car or home. But you may not realize that probably the architect of your financial future.
most expensive thing you will ever buy in your lifetime That may seem like an impossible task. Many of us live
is your retirement. paycheck to paycheck, barely making ends meet. You may
have more pressing financial needs and goals than “buying”
Perhaps you’ve never thought of “buying” your retirement. something so far in the future. Or perhaps you’ve waited until
Yet that is exactly what you do when you put money into close to retirement before starting to save. You still may be able
a retirement nest egg. You are paying today for the cost of to afford to buy the kind of retirement you want. Whether
your retirement tomorrow. you are 18 or 58, you can take steps toward a better, more
Cost of Retirement secure future.
The cost of those future years is getting more expensive for Planning Ahead
most Americans, for two reasons. First, we live longer after Financial planning is the key to making a secure retirement
we retire – with many of us spending 15, 25, even 30 years in a reality. It will help you clarify your retirement goals as well
retirement – and we are more active. Second, you may have to as other financial goals you want to “buy” along the way. It
shoulder a greater chunk of the cost of your retirement because will show you how to manage your money so you can afford
fewer companies are providing traditional pension plans and today’s needs and still fund tomorrow’s goals. It will help you
are contributing less to those plans. Many retirement plans make saving for retirement and other goals a habit. There is
today, such as the popular 401(k), are paid for primarily by the no such thing as starting to save too early or too late—only
employee, not the employer. You may not have a retirement not starting at all! Learn how to save your money to make it
plan available at work or you may be self-employed. This puts work for you, and how to protect it so it will be there when
the responsibility of choosing retirement investments squarely you need it for retirement. Take advantage of retirement
on your shoulders. plans at work.
Unfortunately, only about half of all Americans are earning Yes, retirement is a big purchase—the biggest one you may
retirement benefits at work, and many are not familiar with the ever make. But you can afford it with determination and
basics of investing. Many people mistakenly believe that Social hard work, a sound savings habit, the right knowledge and a
Security will pay for all or most of their retirement needs. The fact well-designed financial plan. n
is, since its inception, Social Security has provided a minimum Article adapted from the U.S. Department of Labor publication of the same
foundation of protection. A 122
comfortable
East Main retirement usually
Ave., Suite 201 requires ND title
| Bismarck, 58501 | p 701.223.5303 | e angi@ndba.com
https://www.dol.gov/sites/default/files/ebsa/about-ebsa/our-activities/
Social Security, pensions, personal savings and investments. resource-center/publications/savings-fitness.pdf
24Making Sense of Your Prescription Drug Plan
Your employer offers a prescription drug plan, but do you know how Follow Directions Completely
to use it? Do you understand the benefits the plan provides, and how Nearly half of all dispensed prescriptions are taken inappropriately.
the prescription drug choices you and your doctor make can affect These “non-compliant” patients are doing one or more of the
you, your family and your employer? following:
Understanding your drug plan and prescriptions can help you save • Taking medications at the wrong time of day
money, stay healthier and receive greater satisfaction from your
• Under-dosing or stopping too soon
health plan.
• Sharing prescriptions with others
Prescription Drugs and Your Employer
• Mixing medicines with alcohol, tobacco, certain foods or
Employees who understand their benefit plans make more informed other drugs
choices about the medical services they receive, and can reduce the
• Failing to fill or refill prescriptions altogether
amounts they are required to pay out their own pockets by choosing
less expensive alternatives. Making cost-effective choices also helps Not taking your prescription in accordance with your doctor’s
keep employer costs down. orders can result in serious health complications. Taking the
Prescription drugs are one of the most costly elements of employer- incorrect dosage, or not completing a full course of antibiotics,
sponsored health plans. Helping reduce costs for your employer can for example, can worsen your condition. Poor patient compliance
lead to lower premium increases in the future and the continued has historically cost billions of dollars in medical bills, resulted in
availability of your health and prescription drug plans. lower quality patient health and even caused unnecessary deaths.
Generic vs. Brand Name Drugs Talk to Your Doctor
Choosing generic drugs over the brand name is generally less The best way to ensure that you know all you can about a drug
expensive. However, many people question whether generic drugs you have been prescribed, and its generic equivalents, is to talk
are as good, effective or safe as their brand name counterparts. The openly with your doctor. Below are some suggested questions that
perception is that since many generic items found in grocery stores you may want to ask.
tend to be of lesser quality, the same must be true for medications. • Is there a generic substitute for this drug available?
Fortunately, in the case of prescription and over-the-counter (OTC) • Are there any drug interactions that I should be aware of?
medications, generic substitutes are the equivalent of brand name • Does this medication cause any side effects?
drugs. The U.S. Food and Drug Administration (FDA) regulates the • If I forget to take a dose, what should I do?
chemical equivalency of generic drugs to ensure they are just as safe
and effective as the brand name drugs they mimic. Also, make sure your doctor knows about any previous reactions
you have had to medications. In addition, be sure to call your doctor
Not all medications have generic equivalents, particularly newer drugs immediately if you have any problems or adverse side effects from
with patent protection. After the patent expires on a brand name a new prescription.
drug, other pharmaceutical companies can manufacture that drug
under a generic name. Generic drugs are usually less expensive than Choosing generic drugs when available, following your doctor’s and
the brand name versions, due to lower development and marketing pharmacist’s instructions fully, and talking openly with your doctor
costs. Consistently choosing generics over brand name drugs, when will help you make the most of our prescription drug plan. These
available, is one of the best strategies for saving money on your strategies can help you not only save money on the prescription
prescription drugs. itself, but also avoid future health problems that could be costly.
25You can also read
