Pub.16 2021-22 Issue 2

NEBRASKA BANKERS ASSOCIATION 5 JULY/AUGUST 2021 EDITORIAL: Nebraska Banker seeks to provide news and information relevant to Nebraska and other news and information of direct interest to members of the Nebraska Bankers Association. Statement of fact and opinion are made on the responsibility of the authors alone and do not represent the opinion or endorsement of the NBA. Articles may be reproduced with written permission only. ADVERTISEMENTS: The publication of advertisements does not necessarily represent endorsement of those products or services by the NBA. The editor reserves the right to refuse any advertisement. SUBSCRIPTION: Subscription to the magazine, which began bimonthly publication in May 2006, is included in membership fees to the NBA. CONTENTS ©2021 NBA | The newsLINK Group, LLC. All rights reserved. Nebraska Banker is published six times each year by The newsLINK Group, LLC for the NBA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publ ication are those of the individual authors and do not necessari ly represent the views of the NBA, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Nebraska Banker is a collective work, and as such, some articles are submitted by authors who are independent of the NBA. While Nebraska Banker encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprintedwithout prior written permission. For further information, please contact the publisher at 855.747.4003. 16 8 PRESIDENT’S MESSAGE One of the challenges for the NBA team is to synthesize the input we receive from our members with relevant statistical analysis. Richard Baier, President and CEO, Nebraska Bankers Association 10 WASHINGTON UPDATE: TIME’S UP: CONGRESS MUST STOP CREDIT UNION PURCHASES OF TAXPAYING BANKS After tapering off during the pandemic, the trend of credit unions buying taxpaying community banks is back – and credit unions are becoming more aggressive than ever in their pursuit of acquisition targets. Rob Nichols, President and CEO, American Bankers Association 12 COUNSELOR'S CORNER: WHAT DOES THE NEBRASKA FINANCIAL INNOVATION ACT MEAN FOR BANKS? On May 25, 2021, Governor Ricketts signed the Nebraska Financial Innovation Act (“NFIA” or the “Act”) into law, making Nebraska the second state, following Wyoming, to establish digital asset depositories. Gray Derrick and J. Scott Searl, Baird Holm, LLP 16 TECH TALK: THE RISK VALUE OF EGRESS FILTERING Monitoring firewall traffic is a fundamental part of cybersecurity. It is well known that ingress filtering is crucial to business operations, but what about egress filtering? Kelley Hesse, Information Security Consultant, DFIR Analyst, SBS Cybersecurity, LLC 18 COMPLIANCE ALLIANCE: MORTGAGE BORROWERS AMID THE COVID-19 PANDEMIC 2021 AND ONWARD At the beginning of the year, Acting Director Dave Ujieo of the Consumer Financial Protection Bureau (CFPB) stated the agency would shift its focus to a more assertive role regarding enforcing regulations protecting consumers. Tim Dominguez, Associate General Counsel, Compliance Alliance 20 MUNICIPAL CREDIT UPDATE: 2020 FINANCIAL PERFORMANCE BETTER THAN EXPECTED At the onset of the COVID-19 pandemic in the United States, strict shutdowns and stay-at-home orders created concern for the economy and municipal finances. Dana Sparkman, CFA, Senior Vice President/Municipal Analyst, The Baker Group’s Financial Strategies Group 22 HOW COMMUNITY BANKS CAN PREPARE FOR CECL CHANGES The FASB’s new credit loss model is one of the most significant accounting changes in recent history. The time to act is now – here is how you can prepare and comply. Risk Management Solutions Group 24 EDUCATION CALENDAR