Author: Press Room

Chase Bank Names Duncan Market Director

22 June 2021
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Chase has named veteran banker Claudius Duncan as its market director of banking in Montana and Wyoming where the bank recently announced its market expansion.

Duncan and his family recently relocated to Cheyenne from Buena Park, where he led a team of bankers serving Chase customers in California. He brings nearly 15 years of banking leadership to his new role, and has been with Chase since 2007.

A graduate of Johnson & Wales University, Duncan earned his associate degree in Science Business Administration in 2004. He also holds a Bachelor of Science degree in Business Operations Management.

“Claudius’s experience working as a New Build & In-Store Sales & Strategy Support Manager, coupled with his proven leadership skills, position him well to lead our market expansion teams in Montana and Wyoming,” said Dan Deegan,  head of market expansion for JPMorgan Chase.

Duncan is an active member of the community. He currently enjoys serving on the Boys and Girls Club of America, Diversity & Inclusion Council and the JPMorgan Chase Black Organization for Leadership Development. Most recently, while still in CA, he also coached his children’s soccer and basketball teams at the local YMCA.

THE FINANCIAL FOCUS – Father’s Day Gifts…for your kids.

21 June 2021
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By Michael A Vondra, Certified Financial Planner Practitioner Edward Jones

If you’re a dad, you may be in line to get some nice gifts on Father’s Day. But your greatest gift may be your ability to help your children. One way of doing that is to get them started in the world of investing – and making a few investments on their behalf.

Here are three possibilities:

— 529 plan – If you invest in a 529 education savings plan, your earnings can grow federally tax-free, provided the money is used for qualified educational expenses. (Withdrawals not used for these expenses will generally incur taxes and penalties on investment earnings.) If you invest in your own state’s 529 plan, you might receive some state tax benefits, too, depending on how your state’s tax laws apply to 529 plans. State-by-state tax treatment may vary, so you’ll need to consult with your tax professional about your situation.

Provided you stay within certain limits, you can also use a 529 plan to pay for qualified K-12 expenses and registered apprenticeship programs. And you can even use it to repay certain qualified student loans, within limits.

A 529 plan can affect financial aid, but its effect is generally lower than that of other assets. And as the account owner, you have control of your 529, so, if one child decides not to go to college or pursue further education, you can switch beneficiaries. 

—UGMA/ UTMA account – When you establish a special type of custodial account known as either UGMA (Uniform Gift to Minors Act) or UTMA (Uniform Transfers to Minors Act), you are providing financial resources that can be used for education or another purpose that benefits your child, such as summer programs.

One potential benefit of an UGMA or UTMA is that some of the earnings will be taxed at the child’s rate, which is likely lower than your own. Plus, UGMA/UTMA accounts typically allow a wide range of investment choices. However, once children reach the age of majority (typically 18 or 21) they gain complete access to the money and can do whatever they want with it. 

— IRA – A child with any taxable compensation, such as money from an after-school job, is eligible to fund an IRA. You may want to open one on your child’s behalf – and you can “sweeten” the offer by matching some of their contributions. You can’t directly invest in the IRA, but you can give your child money for that purpose. Keep in mind, though, that the total amount contributed can’t exceed your child’s taxable compensation for the year.

An IRA is a great introduction to the world of investing. For one thing, your child can make small contributions throughout the year, so investing in an IRA doesn’t seem burdensome. Also, since an IRA can be invested in different types of securities, your child can learn about various investment vehicles – stocks, bonds, mutual funds and so on. Plus, you can point out that, with a traditional IRA, taxes won’t be due on the earnings until your child starts taking withdrawals decades from now. (And with a Roth IRA, withdrawals are tax-free, provided certain conditions are met.)

On Father’s Day, you can show your appreciation for whatever gifts you receive from your children. But by investing in their future, you can gain some longer-term contentment.  

Red States Have Lowest Unemployment Rates

21 June 2021
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The Center Square

Republican-led states and Vermont reported the lowest unemployment rates in April, according to a new report by the U.S. Commerce Department. States led by Democratic governors recorded the highest jobless rates, according to the report.

Unemployment rates were lower in April in 12 states and the District of Columbia and stable in 38 states, according to the U.S. Bureau of Labor Statistics.

States with the highest unemployment rates in April were Hawaii (8.5%), California (8.3%), New Mexico and New York (both at 8.2%), and Connecticut (8.1%). All five states with the highest unemployment are run by Democratic trifectas, meaning Democrats control the governor’s office and both houses of the state legislature.

The four states with the lowest jobless rates in April were all run by Republican trifectas: Nebraska, New Hampshire, South Dakota and Utah, with 2.8% each. Vermont, with a Republican governor and a Democratic-controlled state House and Senate, ranked fifth-best with an unemployment rate of 2.9%.

Overall, 31 states had unemployment rates lower than the U.S. national average of 6.1%. The majority – 26 – are Republican-led states. Of the 19 states and the District of Columbia with jobless rates higher than the national average, 14 are led by Democrats.

However, the three largest unemployment rate decreases year-over-year from April 2020 to April 2021 occurred in blue states: Nevada, (down 21.5%), Michigan (down 18.7%), and Hawaii (down 13.4%). Ten other states also saw declines of 10% or more.

The report came out as the Dallas Federal Reserve reported lowered expectations for May job growth.

Dallas Federal Reserve President Robert Kaplan said that hiring difficulties have continued through May and will likely lead to another weak jobs report following the lower-than-expected 266,000 positions added in April. The next jobs report is expected to be published June 4.

According to a Dallas Fed survey, weakening job growth is attributed to several factors, including extended additional federal unemployment payments and a lack of childcare options for working parents.

“These structural issues, which we saw in the report for April … all those tensions are not going to go away” immediately, Kaplan said at a Dallas Fed conference on technology. “We think you are going to see another odd or unusual report. … Businesses are telling us they got plenty of demand, but they cannot find workers either skilled or unskilled.”

Republican governors in at least 22 states moved to drop the additional federal payment in response to businesses having difficulty finding people to hire because they were making more or enough money receiving unemployment checks than working. Texas was among the last to do so last week.

MPA Expresses Concerns Over President’s BLM Nominee

21 June 2021
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A Montanan, Tracy Stone-Manning of Missoula has been nominated by President Biden to be Director of the Bureau of Land Management (BLM). The appointment has stirred concern by the Montana Petroleum Association (MPA) which points to Stone-Manning’s recent testimony before a natural resources committee about the way the BLM manages public lands regarding oil and gas leasing.

She erroneously told the committee that BLM-managed lands leased for oil and gas development, force the Interior Department to manage those lands predominantly for oil and gas development rather than addressing the needs of people and wildlife, claims Alan Olson, Executive Director of the MPA, in a recent release.

Only 3.7% of the 700 million acres of BLM managed Federal minerals are under lease. Lands under active production amounted to only 1.8% at the end of FY 2018. Even the lands that are under lease are not managed predominantly for oil and gas development in Montana, stated Olson. As a matter of fact, these lands are still open for recreation as well as grazing and timber unless those activities too are tied up in litigation. As for wildlife issues, many Federal oil and gas leases contain stipulations to accommodate wildlife from seasonal use restrictions to going as far as to prohibit surface occupancy. So, there is management outside and over the mineral lease itself for recreation and wildlife, said Olson.

Stone-Manning is Senior Advisor for Conservation Policy and the National Wildlife Federation. She has been described as a “longtime environmental advocate and Democratic aide”, having served as chief of staff for former Gov. Steve Bullock and as an aide to Democratic Sen. Jon Tester. She was also formerly a  spokesperson for the environmental group Earth First.

The BLM functions within the Interior Department and has jurisdiction over about a quarter-billion acres and one-third of the nation’s underground minerals, including oil, natural gas and coal reserves. The agency regulates drilling, mining, grazing and other activities.

In her testimony, Stone-Manning lamented that there are already 7,600 unused drilling permits issued, why lease more federal minerals? Olson responded, “Many of those permits are sitting in suspension. Some are suspended due to litigation by organizations such as the National Wildlife Federation and other environmental groups. Other permits are sitting due to the current economics of the industry. But at the end of the day those permits still brought in over $82 million in just permit fees not counting lease bonus fees and annual rental payments. In contrast, BLM permit fees are 72 to 400 times the cost of a comparable State of Montana permit for the same depth of well on State or private minerals.”

Prior to the COVID pandemic, in 2018 BLM lease sales generated over $1.1 billion in revenue from oil and gas lease bonus bids, first-year rental fees, and administrative fees while costing the BLM about $165 million appropriated from Congress in FY 2018 for a return of 85%. In 2020 the royalty payments to the Federal Government brought in $4.6 billion additionally over leasing and permitting revenue. Annual revenues provided to the U.S. Treasury through Federal mineral development is second only to that provided by the Internal Revenue Service, pointed out Olson.

Lands managed by the BLM are for the most part, to be managed for multiple use. Multiple use means just that, multiple, many, numerous, various, uses. Not just for one segment of the population but within reason, all uses. Oil and gas leases on less than 4% of the Federal mineral estate do not prevent other uses for the same lands. We are hoping Ms. Stone-Manning will see the positive impacts from the BLM’s minerals management.

Experience Proving Green Mandates Undermine Affordability, Reliability of Electricity

21 June 2021
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The Center Square

Recent experiences in three states provide an insight into how problematic President Joe Biden’s push for renewable energy could be for electric customers nationwide, according to a new report from Power the Future.

The report, titled “Lights Out: How Green Mandates are Undermining the Affordability and Reliability of Electricity,” was written by Larry Behrens, western states director for Power the Future, a nonprofit trade group that speaks for oil and gas workers.

“One thing is clear. The Biden Administration is misleading the American people to impose the Green Agenda,” Behrens said. “Biden can’t achieve his pledge with stifling bureaucratic manipulation in every sector of the market.”

To examine the impact Biden’s policies could have on the country, Behrens looked at scenarios in Texas, California and New Mexico, where more dependence on renewable energy has failed customers.

Texas in mid-February experienced winter storms and record low temperatures that left millions without power and claimed more than 100 lives.

“One factor stood out among the rest,” Behrens said. “The state’s heavy reliance on and subsidization of wind power came up empty at a critical time.”

According to data from the Electric Reliability Corporation of Texas, wind provided 42% of the state’s electricity on Feb. 7. By Feb. 11, when the storms first hit, that fell to 8% as turbines froze. Coal and natural gas plants increased output by 47% and 450%, respectively, to meet increased demand.

In California, state law requires utilities to purchase 50% of their electricity from renewables by 2026. As a result, over the past decade electric bills there increased 30%, seven times more than the national average.

New Mexico’s Energy Transition Act, signed in 2019, required utilities to have 20% of all electricity sales from renewables by 2020. The Public Service Company of New Mexico, the state’s largest utility, missed the mark, and plans to close the state’s largest coal plant next year, costing the local economy hundreds of jobs and millions of dollars in tax revenue.

PNM has also said 75% of customers’ electricity needs will come from renewables by 2025.

“This claim strains credulity coming from a company that failed to meet the state’s 2020 renewable target,” Behrens said.

According to the Associated Press, last August, days after New Mexico Gov. Michelle Lujan Grisham stood by a solar panel installation in Albuquerque praising renewables, PNM took to social media to ask customers to cut back on air conditioning while temperatures increased due to concerns about cloud cover leading to reduced solar generation.

“The lessons learned from these states’ experiences with renewable energy should be pushing policymakers across the country to reject top-down green central planning of the electrical grid,” Behrens said. “But that doesn’t appear to be happening.”

Beartooth to Become Bravera Bank

21 June 2021
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After 100 years serving the families and businesses of North Dakota and Montana with a full range of banking, trust, investment and insurance services, Beartooth Bank, a division of American Bank Center, is changing its name to Bravera Bank. The new name, along with a new logo, tagline and visual identity, will launch this Fall. The change in brand does not reflect a change in ownership, as Bravera Bank is still employee- and director-owned. 

 In recent years, American Bank Center has grown, expanding its network of branches across North Dakota and Montana. Its growth represents a continued investment in the region’s strong future, competitively positioning the bank to serve customers with more resources, a greater geographic reach and a broader promise to new people moving into the area. The new name unifies the current network and creates a consistent banking experience all under one brand: Bravera Bank.

 “We are so proud to unite our banks under a new name and brand experience that reflects our bank’s strong future,” says Cill Skabo, American’s Chief Marketing Officer. “Bravera is a distinct and unforgettable name that captures our spirit and helps us stand out and connect with our customers and communities.”

 The word Bravera combines “Bravery” and “Truth” for a new name with strong ties to the pioneer spirit and honest values that define the northern plains. The new name will be accompanied by a new logo, look and feel that will touch every part of the bank’s experience, from signage in the branches and the bank’s website to brand communications and advertising.

 “The move to the Bravera Bank name is exciting and delivers on our mission of embodying a financial institution that supports the growth of the region’s future. From Bismarck to Billings, Dickinson to Devils Lake, we see tremendous opportunity in helping our customers forge success, under a single, powerful brand name,” says David Ehlis, American Bancor President and CEO.

Vogel Joins Wealth Management

11 June 2021
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John Vogel recently joined Stockman Wealth Management as a Junior Portfolio Manager in Billings. His responsibilities include financial planning, investment account management, economic analysis, and business development.

Vogel brings over three years of financial industry experience to the position, which includes portfolio management and analysis. He holds his Series 7, Series 66 and Life and Health Insurance licenses and will be working towards the designation of Certified Financial Planner certification as well.

Vogel earned his Bachelor of Science degree in finance from Montana State University in Bozeman in the fall of 2018. He is located at 402 N Broadway and can be reached at 406-896-4853.

 Stockman Wealth Management is a SEC Registered Investment Adviser and a wholly owned subsidiary of Stockman Financial Corp., a family owned bank holding company serving the banking and investment needs of customers throughout the region.

Remote Workers Expand Options

11 June 2021
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In a recent study, 47% of employees who worked from home moved during the pandemic. Sky-high rent in cities like San Francisco and New York have driven remote workers to other parts of country – and business owners have to decide if hiring across time zones is worth it.

One small business owner shared his reasoning for hiring employees outside of his city: 

“In the field of digital marketing, I hire people outside of my city, and around the world all the time, depending on the skills I need. Challenges include aligning work hours across time zones, and communications.” -Dennis Consorte, Small Business Consultant & Expert at Digital.com. 

Another business expert shared the pros and cons of businesses hiring from different locations: 

“The pros are you are not limiting the talent pool to your geographic location, which means you can find a talented team member from virtually anywhere. The main con is that you physically can’t sit in a room to brainstorm and work through issues that you may have with a particular client. Zoom video calls are great, but there’s nothing that beats in-person meetings.

A business should definitely consider hiring people that can work remotely. Often, those people can be more efficient and effective (no water cooler gossip, no distractions from coworkers, etc.) If their home office is set up properly, I’ve found that team members that work from home actually get more done in less time.” -Sherry Bonelli, Marketing Professional & Expert at Digital.com. 

Partnership Plans Meat Processing Plant Near Livingston

11 June 2021
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From Northern  Ag Network

The Producer Partnership has announced plans to open the first non-profit, federally inspected livestock processing facility in Montana.  It will be located 12 miles east of Livingston and able to process up to 300 animals per month when operating at full capacity.  The Producer Partnership was organized in April 2020 with the mission of farmers and ranchers working to end hunger in Montana.

To date, the Partnership has donated more than 80,000 pounds of hamburger to the Montana Food Bank Network (MFBN) to support individuals and families facing food insecurity across the state.

“We could have done twice that number if we could have booked more slots with one of the five federal processing facilities in the state.  From day one, it has been an uphill battle processing donated cull animals,” Producer Partnership Founder and President Matt Pierson said. “You know, every step of the way that we’ve taken, this whole project has been a milestone and the first of its kind. This is just the next step in the evolution of being able to control our own destiny.”

In March, Friesla (a Washington-state-based company) was contracted to build the modular processing facility.  These units operate at half the cost of the traditional brick and mortar facilities and are significantly less expensive to build.

“We’re honored to support Producer Partnership’s mission of working to end hunger in Montana,” Friesla Founder and President Bob Lodder said.

The total investment when the Partnership’s doors open is projected to be around $2.5 million.

“Last year, we turned away more live animals than I’d like to admit because we couldn’t find and kill and process date, so we were forced to go out of state and work with Yellowstone River Beef in North Dakota,” Pierson said. “I knew we needed something of our own to reduce processing fees, insure we could process animals on demand, and if we truly want to end hunger in Montana, at least with hamburger, we needed our own processing plant.”

Lodder added to Pierson’s statement, and explained the basics of the unit to be constructed for the Producer Partnership.

“Their modular Meat Processing System — proudly designed and built in the USA by our Friesla family — will allow them to take full control of their meat processing operations: from donation to harvest to distribution,” Lodder said.

Lodder said processing onsite will help the Partnership ensure meat quality and traceability, minimize transportation costs, and use less power and water than a traditional brick and mortar facility — ultimately saving time and money that can instead be invested in helping feed people in need.

The first service goal of the partnership will be to process at least 7 animals per week or a total of 140,000 pounds of hamburger for the MFNB.  Concurrently, to help offset costs and pay for the facilities’ operation, retail processing services will be made available to producers who are part of the Producer Partnership family.

Producers wanting to tap into the direct pasture to plate market are centralized to process, package, and distribute their products will be enrolled as partners.  While the program partnership is evolving daily, Pierson’s vision is to provide a fair priced retail processing facility to donors of cull animals and hamburger while serving the local farm to table meat business. Not only will the unit benefit the Producer Partnership for their own processing of donated animals for hamburger, but other producers eager to sell their own products as well.

“We hope to provide the MFBN with all its hamburger annually, support local producers with local processing of animals, and pay for the operation through donations and retail sales.  It truly is a meaningful and beneficial partnership at all levels,” Pierson added. “There’s multiple benefits to the entire Producer Partnership mission.  It started by soliciting cull animals for local producers, lining up processing of the animals and paying for the service, then facilitating the donation of hamburger by the producer to the MFBN and other qualified community centers.  A producer that donates animals may receive a tax donation benefit for the value of the hamburger.”

Other benefits of the Producer Partnership’s processing unit are employment and volunteer opportunities.

“We’ll need meat cutters, people to package the meat, a supervisor to run the plant…the whole nine yards,” Pierson said. “We’re looking for the right kind of people who want to learn while helping the community.”

Although the construction of a processing unit is a large step for the organization, Pierson said he’s already looking on to the Producer Partnership’s next steps.  During their Quiet Phase of a fund-raising campaign, the partnership has already raised $1,250,000 toward their goal.

Pierson went on to discuss other goals, hopes, and plans for the Producer Partnership.

“The goal, to start, is to be able to make it so that the MFBN will never have to buy any hamburger. After that, we want to go after every school in the state and continue to grow,” Pierson said with anticipation in his eyes.

With the opening of the Producer Partnership’s processing facility so quickly after the organization’s birth, it’s easy to say the sky is the limit.

“I’m excited…that’s the only way to describe it,” Pierson concluded. “I mean, we sent over the deposit for our own processing unit within a year of dropping off our first donation of beef. This organization has grown from just a simple spreadsheet on my computer to 501(c) status, and soon enough, our own processing facility – it’s crazy, overwhelming, and flat-out incredible. I cannot wait to see what’s in store for the Producer Partnership and how we will continue to end hunger in Montana.”

MSU and MDT Develop Specialized Concrete

11 June 2021
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Montana State University and Montana Department of Transportation are collaborating in the development of a specialized concrete that is 20 times stronger than regular concrete. It will be used for the first time this summer to form parts of two 60-foot long bridges over Trail Creek near Wisdom.

MSU has been developing this unique concrete for over five years. It is special because it can carry up to 20,000 pounds per square inch.

Due to a specialized mixture that includes conventional concrete materials in addition to steel fibers, fly ash — a byproduct of coal-fired power plants — and chemicals that reduce the amount of added water, the material is roughly five times stronger than normal concrete, according to Mike Berry, associate professor in the Department of Civil Engineering in MSU’s Norm Asbjornson College of Engineering. It also cures rapidly, potentially reducing construction time, and resists corrosion, which will extend the lifetime of the structure, he said.

“It’s like normal concrete on steroids,” said Berry, who is leading the MSU research project. “If we could make all our bridges out of this stuff, it would be magnificent.”

The concrete is not new, Berry added, but until now its use has been limited due to high costs charged by companies that treat the mixture as proprietary, meaning only they can install it. The concrete developed at MSU uses the same principles but is non-proprietary and is designed to use locally available materials to further reduce costs.

According to Lenci Kappes, innovations and complex structures engineer in MDT’s bridge bureau, the MSU project could potentially cut the cost of the material in half. That would mean significant savings for the state not only with construction costs but also with reduced long-term maintenance due to the material’s durability.

The future cost savings are anticipated as MDT and contractors become more familiar with procuring, mixing and installing the material with MSU’s support, according to Kappes.

The MSU collaboration with MDT is part of a federal initiative to encourage states to adopt ultra-high performance concrete, according to Berry. Montana isn’t alone in its efforts, but “you can count on one hand the number of states that have actually developed and used this material, so we’re kind of unique in that way.”

According to Kappes, Montana has lots of bridges in need of replacement or repair, so the money-saving MSU mixture is a particularly relevant material coming at an opportune time. “This is really a learning experience,” he said. “We’re excited to take what we learn and apply it around the state.”