Bank Of Rockies Aims To Change Lenders' View On Water

Online water rights mapping program strengthens transparency and lending standards

Ponderosa Advisors, LLC announced recently that Bank of the Rockies N.A. is the first lending institution to fully utilize a new partnership designed to help Montana banks access crucial water rights and land information through its online water rights mapping program, Water Sage. Although water rights are critical to land value, they are sometimes missed when lenders take security on land, exposing banks to risks in the event of foreclosure.

“As the oldest bank in Montana our roots are planted firmly in agriculture. We are committed to helping our customers succeed, and with Water Sage in hand, our team of lenders is now in a league of its own.  We will yet again raise the bar and quality of service associated with the loans we guarantee,” said Michael E. Grove, President & CEO of bank of the Rockies.  “This program is a game changer and will set a new standard in both transparency and how bankers provide loans when water is involved in Montana. It is also an added benefit to our customers, as we can help them access more information about their water rights.”

Through a new partnership, Water Sage is available to Montana Bankers Association (MBA) members and Bank of the Rockies is the first member to tap the program’s power. Water Sage, as well as access to customized content, is helping to bolster best practices when writing loans for agricultural and development land. Since water often underpins the value of land, addressing water rights in the security process can help mitigate risks of lost value if water is severed from land.

Grove was joined by Steve Turkiewicz, President and CEO of MBA in praising the capabilities Water Sage is bringing to bankers.  BANCSERVE, Inc, MBA’s product and services subsidiary, worked closely with Ponderosa Advisors to create an association-based membership plan offering Water Sage to all MBA member banks.

“With the increased public, regulatory and political focus on water, water rights and ag and rural development, the Water Sage web platform gives lenders access to information for water rights for every parcel of land in Montana. Bankers now can enhance their lending due diligence process with ‘fingertip’ access to documentation for water rights on a parcel-by-parcel basis for the entire state of Montana,” said Turkiewicz.

Water Sage was developed to research water rights and is a valuable risk mitigation tool. Efficient access to water rights data allows bankers to understand and address the relationship between the land involved in an agricultural or recreational ranch lending transaction and the water that supports production or development, and even address the relevant aspects of water rights that may make a land parcel particularly valuable.

“The long history between farmers, ranchers and banks—and how water intersects every industry in the West – is a key reason this partnership between Water Sage and MBA began,” said Colleen Coyle, a Director at Ponderosa who has over 15 years’ experience as a water rights attorney and served as a water master in the Montana Water Court. “Agricultural borrowers have significant water rights and bankers need to understand what water rights are available to a farm or ranch, and ensure that these rights are secured as part of the collateral,” said Coyle.  “We’re thrilled to see Water Sage benefitting these industries simultaneously.”

About Water Sage
Water Sage is a web-based mapping and research platform that integrates water rights, well, and land data, with diverse analytical capabilities. Water Sage provides simple, efficient access to this data, helping users understand and evaluate water rights and their relationship to land. The platform is the brainchild of the team at Denver-based Ponderosa Advisors, LLC, a firm of analysts, lawyers, technical experts and developers, that believe access to information and transparency facilitates better decision-making, which benefits everyone. The firm has locations in Colorado, Montana, and Texas.