2013 Outstanding Women in Banking: Dawn Zimmer

Dawn Zimmer has long been a member of the Spirit Lake, Iowa-based Bank Midwest team, but what impresses Chairman/CEO Steve Goodenow most about his compliance officer is the respect she has from the bank's regulator..Flood insurance is a hot topic for regulators. The bank's regulator recently praised Zimmer's oversight of that element of the bank's lending process, Goodenow said. "The regulator really praised Dawn," he added. "That's something I have rarely seen through the years.".Zimmer is one of NorthWestern Financial Review's 2013 Outstanding Women in Banking..A native of Windom, Minn., Zimmer obtained an associate's degree in accounting from Minnesota West Community College, Jackson, Minn., in 1996. She worked as a junior auditor for United Prairie Bank until 1999, when she joined Bank Midwest as the bank's only internal auditor. In 2001, she added the duties of compliance..The responsibility has grown as the bank has grown. In the last 14 years, Bank Midwest has grown to $701 million in assets from $233 million. The number of branches also has doubled to 10 throughout Iowa and southern Minnesota. When Zimmer started, a bank affiliate sold insurance. The bank's trust department was so small that it was not audited and the bank was not yet active in equipment financing. Today, all insurance has become a part of the bank and all three divisions have grown. Zimmer oversees these departments in addition to running compliance for the rest of the bank.."The scope of compliance changes over the last few years isn't decreasing either," said Zimmer, who manages a department with three team members. "The changes are coming harder and faster," she added..Most recently, Zimmer's time has been disproportionately parsed to the mortgage rules of the Consumer Financial Protection Bureau and the Bank Secrecy Act rules. "The gathering of information and the huge emphasis put on monitoring suspicious activity requires a huge amount of effort," she said. "It went from an ancillary thing you did in the morning for 10 minutes, to something you do for a couple of hours. The Qualified Mortgage rules have come on top of that.".Zimmer was complimented by the bank's regulator for the controls in place surrounding flood insurance. "We took an active role in making sure the requirements are fulfilled before the loan is closed," she said. "They liked that the documents for a loan literally cannot be generated until I, as the compliance officer, have ensured insurance is in place.".But that's not all the regulator liked about Zimmer's efforts. "The changes coming for properties in a flood plain present a serious public-relations issue for the bank," she said, noting that the Des Moines River valley runs right through the bank's footprint..Bank customers who own real estate on a flood plain can expect insurance premiums to increase in the coming years as the Federal Emergency Management Agency seeks to phase out subsidies for flood insurance premiums. "We are going to see some real push-back from customers on the increases; the customer's loan from the bank is the only reason they must have the insurance," she explained..Zimmer has focused on training staff for these tough exchanges with customers. "Customers will be caught off guard by the increases," she said. "Educating our staff is all we can do. We will probably be on the receiving end of some disgruntled customers. The worst thing would be for staff to be blindsided by the conversation.".Goodenow said Bank Midwest's compliance responsibilities are being very well managed. "Years ago, Dawn started with us when she was very green," he said. "She has grown into an important player on our team."Other 2013 Outstanding Women in Banking honorees include:Kim Schroll, NebraskaLand National Bank, North Platte, Neb.Lori Allan, Beacon Bank, Duluth, Minn.Emily Hofer, Merchants State Bank, Freeman, S.D.Rose Wageman, First Eagle Bank, Chicago