The Arkansas Banker Fall 2021

FALL 2021

T H E T I M E I S N OW

Banks, HBCUs Collaborate to Address Workforce Diversity THE ARKANSAS BANKER

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A PUBLICATION OF THE ARKANSAS BANKERS ASSOCIATION

CONTENTS

FALL 2021

VOLUME CIV, NO. 3

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ARKANSAS BANKERS ASSOCIATION STAFF

President/CEO Lorrie Trogden

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VP/Controller Carla Brinkley VP/Professional Development Kami T. Coleman Technology & Design Director Jessica Sahene Business Development Director Anna Squire Executive Administrative Assistant Peggy Cecere Marketing & PR Director Josh Hartman EDITORIAL STAFF

Editor Roby Brock Creative Director Ashlee Nobel

Lee Lee Arts + Design

Contributing Writers

Paul Benda, Jim Cargill, Nicole Gore, Michael K. Goswami, Ginsie Higgs, Daveante Jones, Jane Kim, Karen McCurdy, Rob Nichols, Hunter Windle

Contributing Photographer Michael Pirnique The Arkansas Banker (ISSN 004-1726) is published quarterly by the Arkansas Bankers Association, 1220 West Third Street, Little Rock, AR 72201. Phone: 501.376.3741.

Periodical postage paid at Little Rock, AR. Postmaster: Send address changes to Arkansas Bankers Association, 1220 West Third Street, Little Rock, AR 72201. Subscription to The Arkansas Banker magazine is included in the membership fees to the Arkansas Bankers Association. Cover price is $5.95 each. Annual subscription rates are $40.00 for members and $60.00 for non-members.

Federal tax law prohibits the deduction of lobbying expenses for federal incomes tax purposes. Organizations like ABA, which assess member dues, are required by law to notify their members of the portion of their dues attributable to lobbing/and therefore non-deductible on your federal tax return. For the year 2021, it is estimated that 13.32% of your dues will be attributable to lobbing as defined by the IRS. Contributions to ABA are not charitable contributions, however, they may be deductible as a legitimate business expense.

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President’s Message Professional Development

Columns 04 08

Chairman’s Column Washington Update

Features 32

Coping With COVID-19

As the pandemic wears on, bank leaders grapple with mental health challenges for workers.

COVER STORY

22 DEI Recruiting

Banks and Black colleges are finding ways to address the demographic realities of the workforce.

ON THE COVER

The faces of banking are changing and financial institutions are leading on diversity.

Departments BANKER Q&As

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The Millennial Minute: Marliz Murguia Five Minutes With ...

LaTricia Hill-Chandler

INDUSTRY UPDATES

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New LLC Tax Laws

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Bank Secrecy Act

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Has Wide-Ranging Effects Reform and Modernization of BSA/AML

Ransomware Ramps Up

It’s critical for banks to be prepared

Non-Compete Agreements

Can you bank on yours to do the job?

Credit Unions

National Defense Authorization Act

Safe Deposit Boxes

Optional vs. mandatory in terms of law

Environmental Due Diligence

Reduce risk with commercial real estate

InvestWrite™ Competition Two Arkansas students win big

Consumer Lending School Meet the 2021 graduates

ELS Day at the Capitol

NEWS & MOVES THE ARKANSAS BANKER

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PRESIDENT’S MESSAGE Lorrie Trogden

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President & CEO

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Arkansas Bankers Association

wear my politics on my sleeve. Politics are too serious a matter to hide your discontent

about bad policy. Advocacy is the ABA’s number one benefit, and for 130 years, we have worked alongside you to shape the issues that impact the success of the banking industry. I have been the ABA President/CEO for three years now, and we have fought more bad policy since January of this year than the total of my first two years here. The Biden administration seems to carry a real grudge against the banking industry and shows no interest in the fact that the many ill-thought-through policies they seek to implement will ultimately hurt consumers.

Arkansas banks stepped up to the call of getting more unbanked and underbanked into the financial system. We now have 15 financial institutions that offer certified Bank On Arkansas+ accounts, which is more than any other states’ Bank On programs. In addition, there are banks that offer similar special accounts outside of the Bank On system aimed at reaching this population. As of this writing, we are currently engaged in a battle to stop reconciliation budget bill language requiring banks to report bank account inflows/outflows of over $600 to the IRS. This is a serious government overreach of customer privacy and will come at a truly massive cost to the banking industry, individuals, and small businesses in increased tax preparation fees. Underbanked or unbanked customers who do not trust the government with their data, or its ability to protect their data, might leave the financial system in droves. Within one day of posting our opposition, I had three people tell me if it passes, they will pull their money out of the bank. Concern for getting more people into the financial system seems to have gone out the window with this policy. Members of our Arkansas congressional delegation are all opposed to this language, so please be sure and thank them for their support.

Additional campaigns have been waged on overdraft fee limitations, mandated DEI initiatives, postal banking, Fed Now bank accounts, taxing mega credit unions, farm loan payoffs without making banks whole, and nonbanks' requests to join the payments system. These are just the most recent, there are and have been many others. Banks are well-equipped to handle these issues without further overburdensome and overreaching federal regulation. I must also mention AmBA’s new credit union consumer education website: reformcreditunions.com. You can follow it on Twitter at @reform_cu or Facebook.

As we hurtle towards the 2022 mid-term elections, political fundraisers are going strong, which means a lot of PAC check requests. We need your help to ensure that we have healthy state and federal BankPAC account balances to support candidates who understand bankers’ concerns. Our combined state and federal goal for the year is $50,000. Thus far, contributions equal $7,650; fundraising is much more difficult when holding mostly virtual conferences. Your bank or bank PAC can contribute to our state PAC and you, your board, and employees can write individual checks to our federal PAC. Payroll deduction is also an option. Before conducting any type of federal campaign, please make sure we have your signed authorization card on file.

A special shout out to Larry Wilson for being the first to have his 13th board meeting. Please contact me or Chairman Jim Cargill to schedule yours. We are happy to attend in person or virtually.

Also, a reminder, the choice to support BankPAC is yours alone and is completely voluntary. The most productive industries effectively combine a strong trade association and a solid grassroots program with a well-financed and carefully directed PAC. Leaving politics for a moment, I want to mention a few upcoming events and other items of importance. Due to rising Delta COVID cases, the MEGA Conference has been rescheduled to January/February 2022, and the October Emerging Leaders Section Leadership Conference will be virtual. Currently, our January Women in Banking Conference is still slated to be in person, and I

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“I would rather wear my heart on my sleeve and suffer beautifully than to bury it beneath my ribcage and cut off its breathing.”

- Kaitlin Foster am excited to announce we will be presenting our first Arkansas Bankers Association Power Woman in Banking award. Be on the lookout for nomination information hitting your inbox in late October. Invitations for February/ March Group meetings along with ABA Board of Directors, ELS, and Group Vice Chairman nomination forms will be out soon. Thank you for participating in our Lobby•Mask•Vaccine surveys. They are very helpful to your peers, and we will continue to survey while COVID numbers are still rising. We have compiled a list of stress management and mental health resources that can be found on the ABA COVID Resources webpage.

Always remember, if there are other resources the Association can provide, do not hesitate to call me. We are here to help in any way we can.

I am fully vaccinated and ready for a road trip – invite me to come by for a visit. In closing, we will always wear our politics on our sleeve and will never stop fighting for you or beside you!

Lorrie Trogden, President & CEO

ABA

OFFICERS Jim Cargill, Chairman Arvest Bank, Little Rock

Randy Scott, Chairman-Elect Farmers Bank & Trust, Blytheville

Jim Taylor, Vice Chairman First Security Bancorp, Rogers

Lori Ross, Treasurer

Citizens Bank, Arkadelphia

Jon Harrell, Past Chairman Generations Bank, Rogers

Lorrie Trogden, President & CEO

Arkansas Bankers Association, Little Rock

BOARD OF DIRECTORS

Nathan Gairhan, Springdale Brandon Gentry, Wynne LaTricia Hill-Chandler, Little Rock

Robert Husong, Rogers Gary Kleck, Springdale Cody Knight, Piggott Wilson Moore, Little Rock Marnie Oldner, Little Rock Todd Smith, Magnolia Rob S. Tiffee, Little Rock Jamie Waller, Magnolia Scott Walker, El Dorado Jay Wisener, Little Rock

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CHAIRMAN’S C O LU M N

Embracing Fintech

Opportunities Jim Cargill

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Chairman

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Arkansas Bankers Association

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hen the fintech boom began about a decade ago, the prediction was that these startups might have been sounding the death knell for traditional banks.

While a few of those fintech companies did appear to have that goal in mind, what has emerged is a clear need for innovation on the traditional banking side and a clear opportunity for collaborations that would leverage the best of both worlds and lead to powerful partnerships.

Banks have a broad base of loyal customers with long-standing relationships. Banks have earned trust by investing in local communities, but consumer preferences are evolving as technological advances impact everything from shopping to entertainment to banking.

So, while customers largely trust and rely on community banks, they also yearn for the digital capabilities that fintechs can offer.

I think most banks realize the most valuable assets of any organization are its people. Partnerships between banks and fintechs grant access to the other’s expert staff without the expense of hiring more people. This is a universally shared benefit.

However, there are benefits that favor one entity more than the other.

For banks, the top benefits include: • Access to tech talent that can otherwise be difficult to recruit and retain • The ability to offer digital banking features to customers quickly • Lowered capital expenditures • Enhanced brand reputation • Increased access to younger customers 4

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“I think most banks realize the most valuable assets of any organization are its people.

Partnerships between banks and fintechs grant access to the other’s expert staff without the expense of hiring more people.”

For fintechs, the top benefits include: • Exposure to the large number of bank customers • The ability to scale quickly to reach new markets and customer segments where banks already operate • Access to the deep knowledge of banking partners and their experience navigating the complex regulatory environment of the industry Many community banks gain access to fintech talent and solutions indirectly through their core processing partners.

Others entertain multiple fintech presentations and opportunities in order to partner directly with those who can offer the solutions most needed.

Regardless of the journey, the result is that banks are making rapid advancements in meeting their customers’ desire for digital banking conveniences and this is one way that

we will continue to be the most preferred and trusted providers of financial services.

Through the ABA’s Endorsed Vendor Program, we all have access to the resources and expertise we need to adapt to the rapidly changing landscape of digital transformation and consumer behaviors and preferences.

Whether it’s embracing interactive teller machines as a lower-cost, convenient way to offer face-to-face service, feature-rich mobile banking apps, digital delivery of mortgage loans, or advanced online treasury management capabilities, all of us in the “traditional” banking field need to understand that rapid change is happening. Instead of being worried about how fintechs might disrupt our industry, we need to embrace how we can work together with them to succeed in the new digital age.

Being prepared and having strong partnerships will insure the long-term viability for us all.

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PROFESSIONAL D E V E LO P M E N T

Calendar of Events OCTOBER - DECEMBER 2021

October 25

MO NDAY 9 : 00 A M T H URS DAY 4:30 PM

COMPLIANCE SCHOOL

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November 02 TU E S DAY 8 : 30 AM

BREAKING INTO BANKING 201: A N A LY Z I N G R E PAY M E N T SOURCES

While COVID-19 may have brought about a “new normal” that is far from it, one thing that remains constant is the need for a strong commitment to compliance.

This comprehensive school will cover lending, deposits, operations and BSA/AML topics to give a well-rounded view of the compliance landscape, and what to look for in the future.

This course dives deeper into topics covered from the previous 101 course: analyzing a borrower’s balance sheet, income statement, collateral, and risk ratings. This course is most appropriate for credit analysts, lenders, portfolio managers, and others who need skills in financial statement analysis and writing credit documents.

INSTRUCTOR:

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T UES DAY 8: 30 A M

EMERGING LEADERS LEADERSHIP CONFERENCE

This event offers a unique educational experience focused on banking industry trends and leadership development skills. Gain insight to help you influence positive change within your organization. The Emerging Leaders Section works to engage, connect, and empower banking professionals from across the state to shape and lead the future of the financial industry.

INSTRUCTOR: ABA LOCATION: Virtual Learning

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LOCATION: Virtual Learning

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W E D N E S DAY 9: 0 0 AM THU RS DAY 4 : 0 0 PM

BSA WRAP-UP

This program will focus on the latest changes above as well as other BSA/AML priorities, while offering tips and tools to develop and manage an effective BSA program. This timely session which will provide in-depth coverage of current trends and tools for today's BSA officers and team members!

INSTRUCTOR: Dianne Barton LOCATION: Virtual Learning

Don’t Forget!

Emerging Leaders Leadership Conference October 26th

COMMERCIAL L OA N W R I T E - U P / L OA N C O M M I T T E E P R E S E N TAT I O N SKILLS

This program will cover a plethora of topics, including the basics of how to craft an effective commercial loan write-up, financial analysis components, loan committee presentation skill building techniques, understanding the difference between negotiation skill building, communications, and personal marketing. The presentation concepts will be reinforced through case studies.

INSTRUCTOR: Andy Keusal

Compliance Alliance LOCATION: Hybrid Event Arkansas Bankers Association, Little Rock OR Virtual Learning

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INSTRUCTOR: David Osburn LOCATION: Virtual Learning

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MO N DAY 9: 0 0 A M TU E S DAY 12 : 0 0 P M

CALL REPORT P R E PA R AT I O N

The Call Report has been subject to many changes over the course of the past 18 months and continues to be impacted by economic, accounting and regulatory changes. Our recent challenges related to the economic crisis under COVID-19 have added to the reporting burden with changes impacting all financial institutions that will continue into 2021. This webinar will be presented in two parts over two days, and will provide information and comprehensive training on new, proposed, and revised changes to the Call Report with identification of specific Call Report line items impacted.

INSTRUCTOR: Cynthia Dopjera LOCATION: Virtual Learning

FOR MORE INFORMATION ABOUT ABA TRAINING & EVENTS, AND TO REGISTER, LOG ON TO WWW.ARKBANKERS.ORG.

December 01 08 WEDNES DAY 9:00 A M

CONSTRUCTION LOAN ADMINISTRATION

The current surge of construction projects brings with it a renewed responsibility to correctly administer the many facets that compose each loan. This seminar will help give you the tools and education you need to competently and efficiently manage this type of loan. We will focus on the proper administration of construction loans and will analyze two very different borrowers - the operative builder and the owner occupant. We will also cover Arkansas lien law and discuss the elements which most particularly apply to construction loan administration.

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HOT TOPICS FOR B A N K B OA R D S

Demands arise from customers, stakeholders, regulators and staff. The current regulatory and economic environments have conspired to create potential hazards for directors. This session is extremely popular as it broaches Compensation, CEO Performance Evaluations, and Strategic Planning. Attendees will be better equipped to contribute to the financial security, marketing efforts and solvency of their institution.

INSTRUCTOR: David Kemp LOCATION: Hybrid Event Arkansas Bankers Association, Little Rock OR Virtual Learning

W E D N E S DAY 1: 30 PM

IRS INFORMATION REPORTING: RULES AND FORMS

It's that time of the year again - when thoughts turn to IRS reporting issues and the myriad rules to follow and forms to complete. Learn about the many forms financial institutions must report, with an emphasis on when and exactly what to report.

We'll include easy-to-follow charts to complete each form.

Anyone in your institution with responsibility for collecting tax information, filing various IRS forms, or someone who must be aware of TIN requirements, should attend this webinar.

INSTRUCTOR: Carl Pry

INSTRUCTOR: David Kemp & Patrick Wilson LOCATION: Hybrid Event Arkansas Bankers Association, Little Rock OR Virtual Learning

AT A GLANCE

LOCATION: Virtual Learning

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EXCEL EXPLAINED: INTRODUCTION TO SPREADSHEETS

If you’ve never worked with Excel spreadsheets or haven’t in several years, this webcast is designed just for you. Excel expert David Ringstrom, CPA, walks you through the basics of Excel spreadsheets, providing the knowledge needed to create functional spreadsheets and manipulate large lists of data. David presents an overview of the different types of files you can create, explains Excel’s rows and columns grid, demonstrates how to remove duplicates from a list, shares keyboard shortcuts to simplify repetitive tasks, and more.

INSTRUCTOR: David Ringstrom

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Live events are subject to a virtual learning environment. For more information, contact the ABA at (501) 376-3741 or Kami Coleman at kami.coleman@arkbankers.org.

LOCATION: Virtual Learning THE ARKANSAS BANKER

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WASHINGTON U P DAT E

BANKING ON INCLUSION: America’s Banks Embrace Bank On Movement Rob Nichols

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President and CEO

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merica’s banks have a longstanding commitment to helping reduce the number of unbanked and underbanked individuals and families in the U.S. July marked a major milestone in that

endeavor, with an announcement from the Cities for Financial Empowerment Fund that the number of Bank On-certified deposit accounts now available has surpassed 100. At the time this column was written, it was up to 114.

As you may recall, nearly a year ago I challenged banks of all sizes to offer Bank

American Bankers Association

number of community banks offering Bank On-certified accounts. This is due in part to ABA’s efforts to engage with 20 of the nation’s core technology providers—including Fiserv, FIS, Jack Henry and Associates and Finastra—and encourage them to simplify the process for their bank clients to create and offer these important products.

Today, Bank On accounts are available in more than 32,500 branches, in 99 out of the 100 largest metropolitan markets and in all 50 states. They have received plaudits from bank regulators and policymakers alike—and for good reason. Research suggests that the initiative is working as

“According to the Federal Reserve Bank of St. Louis, 75% of consumers opening Bank On certified accounts were new customers for that bank. [And] CFE Fund reports that close to 60% of Bank On certified accounts were opened by customers in communities with 50% or more people of color.”

On-certified products, which are designed to promote access to financial services to the roughly 5% of U.S. households that remain unbanked. To receive Bank On certification, the account must meet certain standards, including low costs, no overdraft fees, robust transaction capabilities via a debit or prepaid card and free online bill pay. The certification is free and the process is simple.

When I issued that challenge in October 2020, there were 43 banks offering accounts that were Bank On-certified. Today, there are more than 90, with plenty more in the process of obtaining certification. In particular, we’ve seen a significant uptick in the 8

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intended: according to the Federal Reserve Bank of St. Louis, 75% of consumers opening Bank On certified accounts were new customers for that bank. Additionally, while these accounts have widespread appeal, CFE Fund reports that close to 60% of Bank On certified accounts were opened by customers in communities with 50% or more people of color.

The importance of having a banking relationship has never been more apparent than during the COVID-19 pandemic. From obtaining Paycheck Protection Program loans to receiving economic impact payments quickly, there are countless stories that speak

to the benefit of having a trusted banking partner—and to the disadvantages of not having one.

“For a long time, we’d known that we have consumers that don’t have bank accounts in our market. It could be for cost, it could be for convenience, there could be a lot of reasons. The stimulus checks brought the issue to light a little more,” says Gary Kleer, CEO of First Bank Richmond in eastern Indiana, whose bank recently had its Easy Fit Checking Account Bank On-certified.

“When we saw this initiative being offered, we decided to get on board so that we could offer our consumers a more safe and affordable way to handle their money.”

As we strive for a more equitable and inclusive society, one of the most constructive ways banks can help move the needle is to ensure that every American has the opportunity to access the banking system. That’s why the Bank On certification is so important—it signals to those who may be hesitant to come in the door and start that banking relationship that the bank offers a product they can trust to meet their needs.

Many banks are already offering checking account options meet Bank On standards— but it’s time to go the extra step and get them certified – for free – with the Bank On seal of approval. If you haven’t yet, I encourage you to visit aba.com/BankOn to learn more about the Bank On movement, how to certify an account product and why other banks were motivated to get involved. ABA staff is available to meet with your bank about the Bank On process and to answer your questions; reach out anytime through our dedicated inbox: bankon@aba.com.

Together, we can bring more Americans into the banking system—a crucial step toward ensuring economic prosperity for all.

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INDUSTRY U P DAT E S

N E W S TAT E L AW O V E R S E E I N G L LC S

Has Wide-Ranging

Effects

by Michael K. Goswami and Nicole Gore

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n September 1, 2021, Arkansas’ Uniform Limited Liability Company Act, § 4-38-101 et seq. (ULLCA) took effect. The enactment of

the ULLCA, which is intended to prospectively govern Arkansas LLCs, is significant as it repeals and replaces the state’s longstanding Small Business Entity Tax Pass Through Act (the Old Act). Critics welcome the adoption of the ULLCA because it simplifies and provides guidance on both entity processes and ambiguities in the Old Act. While some changes under the ULLCA are relatively minor, such as changing the name of the formation document from “Articles of Organization” to “Certificate of Organization,” others are quite significant, such as disposing of the requirement of a written operating agreement. Although this article is not a comprehensive overview, below are various ways in which the ULLCA differs from the Old Act.

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FORMATION In addition to the implementation of a “Certificate of Organization,” practitioners should note the following three provisions regarding formation. First, the ULLCA does not require that the Certificate of Organization to include a statement defining the LLC as member-managed or manager-managed. Such designation is now included in the operating agreement. If no designation is made, the LLC is de facto a member-managed LLC. A second formation difference is that ULLCA does require that the LLC’s principal address be listed in the Certificate of Organization.

Third, the ULLCA provides that an LLC is legally formed when the Certificate of Organization is effective and at least one person has become a member or manager.

This change deviates from the Old Act, which provided that an LLC was formed by the mere delivery of the Articles of Organization to the Secretary of State, a fact that caused issues in instances when

While some changes under the ULLCA are relatively minor, such as changing the name of the formation document from “Articles of Organization” to “Certificate of Organization,” others are quite significant, such as disposing of the requirement of a written operating agreement.

MANAGEMENT Under the ULLCA, members of member-managed LLCs and managers of a manager-managed LLCs are not automatically agents of the LLC (i.e. they cannot automatically bind the LLC) merely because of their position. Rather, the ability to bind the LLC is determined under general principles of agency law.

FIDUCIARY DUTIES Fiduciary duties were not clearly defined in the Old Act. However, the ULLCA contains a non-exhaustive list of express fiduciary duties for both LLC managers and members, including a duty of care, a duty of loyalty, and a duty of good faith and fair dealing.

REMOVAL

the Articles of Organization contained incomplete or incorrect information.

OPERATING AGREEMENTS A written operating agreement signed by all members is no longer required under the ULLCA. Rather, operating agreements, which do not even need to be referred to as an operating agreement under the ULLCA, may be formed at the discretion of the members and can be written, oral, implied by conduct, or any combination thereof. This change may present difficulties for businesses in conducting due diligence or confirming entity authority to transact business.

The ULLCA permits the removal of a member from the LLC upon the affirmative vote or consent of all other members in certain circumstances, including if (a) it is unlawful to carry on the LLC activities and affairs with the person as a member; (b) there has been a transfer of all of the person’s transferrable interest in the LLC (with certain exceptions); or (c) in certain situations, a person is an entity and the entity has dissolved. Further, an LLC, or any member of an LLC, may petition the court for removal of a member if the member engaged in wrongful conduct, committed willfully or persistently a material breach, or engaged in conduct that makes it impracticable to carry on the activities and affairs of the LLC with the person as a

member. These changes will be welcome in highly-regulated industries, but increases the potential for significant litigation in the instance of oral operating agreements.

This brief overview is not an exhaustive list of all of the provisions in the newly-enacted ULLCA. Ultimately, it is good practice for those considering forming an LLC, or transacting business with an LLC governed by the ULLCA, to consult with an advisor and inform them of the new status quo for LLCs in Arkansas.

ABOUT THE AUTHOR Michael K. Goswami is a member of the business section at Rose Law Firm. He focuses his practice on corporate governance and business planning, navigating business disputes, and counseling on contractual relations.

ABOUT THE AUTHOR Nicole Gore is a business associate at Rose Law Firm and advises clients primarily on state, local, individual and corporate taxation as well as various tax backed and revenue bond issues.

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INDUSTRY U P DAT E S

THE

Reform &

Modernization OF BSA/AML

by Julia A. Gutierrez

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ith technology changing and growing at what seems like the speed of light, banking laws and regulations can struggle to keep up. All too often we skim

across various regulations that revolve around paper transactions or technology that barely exists. One area of banking that can be especially impacted by an inability to keep up with the ever-changing world of technology or modernization is the Bank Secrecy Act. The Bank Secrecy Act has been around since 1970 when it was passed by Congress as the first set of laws to combat money laundering in the U.S. With the exception of the amendment to incorporate the provisions of the USA PATRIOT Act, there haven’t been many significant changes to the Act until recent years. In order to fulfill its purpose of fighting money laundering and financial crimes as effectively today as it did 50 years ago, the Act must be revised and revamped to meet the challenges and technological advances of the time.

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BACKGROUND Over the past several years, the Financial Crimes Enforcement Network (FinCEN) has placed a great deal of focus on reforming and modernizing the BSA. The objective really began years earlier when the Bank Secrecy Act Information Technology (IT) Modernization Program was developed in 2010 to provide a modernized IT foundation to collect, store, safeguard, analyze, and share data collected pursuant to the expectation of the BSA. Modernization remains a critical component of government efforts to ensure transparency among U.S. financial systems to detect and deter crime, to strengthen national security, and to achieve economic stability and growth. More recently, the call for modernization returns to the forefront as FinCEN sets out to “re-examine the BSA regulatory framework and the broader AML regime”.

In 2019, the House Financial Services Committee issued proposed bills related the Bank Secrecy Act and Anti-Money

Laundering and Combating the Financing of Terrorism (CFT) laws. One of the proposed bills set to reform the BSA/AML in an effort to strengthen and modernize the program by focusing on information sharing, resource sharing, and technological innovation. Congress has also considered various proposals which could restructure and modernize the BSA/AML. The U.S. Department of Treasury issued its 2020 National Strategy for Combating Terrorist and Other Illicit Financing which called for AML modernization by leveraging new technologies coupled with innovative compliance approaches.

Just a couple days later, on September 16, 2020, FinCEN issued an Advanced Notice of Proposed Rulemaking (ANPR).

This was one of the first major efforts in broadening and modernizing the regulatory framework of the BSA and the broader national AML regime. The intent is to provide greater flexibility in the allocation of resources and a greater alignment of priorities across the financial industry and government with a goal of an enhanced effectiveness and efficiency of anti-money launder (AML) programs. It would require financial institutions to have an AML compliance program, including a risk assessment as part of their program.

The [Corporate Transparency Act] establishes a new framework for reporting and disclosing beneficial ownership information and really shifts the collection of information from financial institutions to reporting companies, modernizing, and streamlining much of the BSA/AML expectations.

MODERNIZING THE BSA Modernization seems to be the frequent theme when it comes to the Bank Secrecy Act. Much of this theme can be credited to the former director of FinCEN, Kenneth Blanco and his focus on the reform and modernization of the BSA/AML. The reform and modernization of the Bank Secrecy Act revolves around a collection of Advanced Notice of Proposed Rulemaking (ANPR), Final Rules, and new or amended laws.

As part of the reform efforts, FinCEN issued a Final Rule on September 14, 2020, which extended BSA/AML requirements to financial institutions lacking a federal functional regulator. The Final Rule required these institutions to develop and implement an Anti-Money Laundering program, to establish a written Customer Identification Program, and to verify the identity of beneficial owners. The final rule closed a regulatory gap between financial institutions and brought about consistency in reporting requirements and decreased the vulnerability of exploitation.

In addition, the ANPR clearly outlines the expectation that financial institutions must meet when developing an “effective and reasonably designed” program. Such programs should: (1) assess and manage risk as informed by a financial institution’s own risk assessment process, including consideration of AML priorities to be issued

by FinCEN consistent with the proposed amendments; (2) provide for compliance with BSA requirements, and (3) provide for the reporting of information with a high degree of usefulness to government authorities. The overall goal of the 2020 Final Rule is to enhance the effectiveness of anti-money laundering programs as it seeks to modernize the current BSA/ AML. As most financial institutions already have risk assessments in place as part of their BSA/AML program, the ANPR may not necessarily add any new expectations, but rather make an industry best practice a regulatory requirement.

BSA/AML Reform continued January 1, 2021, when the Senate voted to override

President Trump’s veto of the National Defense Authorization Act (NDAA) which had been previously overridden by the House on December 28, 2020. The NDAA may provide the most significant and comprehensive set of reforms to the BSA/AML since the USA PATRIOT Act of 2001. Some of the most significant reforms include expanding the ability to share Suspicious Activity Report (SAR), streamlined SAR and Currency Transaction Report (CTR), and modifying the BSA/AML program. It also reincorporates an emphasis on risk-based approaches to AML program requirements The Anti-Money Laundering Act of 2020, part of the NDAA 2021, included the Corporate Transparency Act (CTA) and was effective as law with Congress’ override of President Trump’s veto of the NDAA on January 1, 2021. The CTA has been many years in the making and is intended to be fully implemented by 2023, including the creation of a database of beneficial ownership information with FinCEN. The CTA establishes a new framework for reporting and disclosing beneficial ownership information and really shifts the collection of information from financial institutions to reporting companies, modernizing, and streamlining much of the BSA/AML expectations.

The focus on reform and modernization seems to be everywhere we turn as it becomes intertwined in new laws. The efforts and purpose of the Bank Secrecy Act and Anti-Money Laundering remain unchanged. What is changing is the world and technology around us demanding that modernization and reform become priority.

It is critical that financial institutions remain knowledgeable of the regulatory and legal changes and embrace the modernization and reform which impacts their programs.

ABOUT THE AUTHOR Julia A. Gutierrez currently serves as Compliance Alliance's Director of Education, developing curricula and presentations. She is a 17-year veteran of the financial industry.

THE ARKANSAS BANKER

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INDUSTRY U P DAT E S

RANSOMWARE

ATTACKS RAMP UP WITH RANSOMWARE ATTACKS INCREASINGLY TARGETING CRITICAL INFRASTRUCTURE PROVIDERS, IT’S URGENT FOR BANKS TO BE PREPARED.

by Paul Benda

I

n March 2021, CNA Financial Corp.—one of the nation’s largest insurance companies—paid $40 million in the wake of a ransomware attack that crippled its network, according to a Bloomberg report. A few months later, cybercriminals targeted the Colonial

Pipeline, which supplies fuel to much of the East Coast, with a ransomware attack that led to Colonial paying out almost $5 million.

These instances are just two high-profile examples of a growing problem: the proliferation of ransomware and extortion-ware.

These types of cyberattacks occur when cyber criminals use malware to encrypt files on a device or information on a network, rendering them unusable. Criminals then demand payment in exchange for decryption.

Over the past several years, ransomware attacks have grown in scope and scale, and are now targeting critical infrastructure entities, including financial services providers. In fact, it’s estimated that a new ransomware attack is detected every 11 seconds.

According to an eWeek security analysis, more than half of companies faced ransomware attacks and of those, 26% paid the

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requested ransom. Even if companies choose not to pay, ransomware attacks can still be costly and devastating. For example, after the University of Vermont Health Network was compromised by ransomware in June 2021, it lost an estimated $63 million in the process of rebuilding its network infrastructure and restoring compromised hard drives.

Unfortunately, even for those that do pay, obtaining a decryption key is not a panacea—firms must still conduct testing on every machine and network endpoint to ensure that the malware has been successfully removed. One global survey of 5,400 IT decision makers found that around half of those who paid ransom recovered just 65 percent of the encrypted data compromised in the attack.

Another 29 percent said they only recovered half of the data.

The staggering cost and increasing frequency of ransomware attacks would seemingly make the case for cyber insurance—but, surprisingly, anecdotal evidence suggests that a majority of financial institutions are not cyber-insured. And with cyberattacks on the rise, the cost of cyber insurance is also increasing, and ransom payments as an insurable risk may not be sustainable in the long run.

Over the past several years, ransomware attacks have grown in scope and scale, and are now targeting critical infrastructure entities, including financial services providers. In fact, it’s estimated that a new ransomware attack is detected every 11 seconds.

The federal government has taken several steps to address the growing problem of ransomware, including establishing a new Department of Justice task force that centralizes the DOJ’s efforts to track cyberattacks and digital extortion schemes. FBI Director Christopher Wray even went so far as to compare the threat of ransomware to the terror threat that followed in the wake of 9/11.

“There are a lot of parallels, there’s a lot of importance, and a lot of focus by us on disruption and prevention,” Wray told the Wall Street Journal. “There’s a shared responsibility, not just across government agencies but across the private sector and even the average American.”

Banks can find information on ransomware by visiting a new, dedicated website created by the Cybersecurity and Infrastructure Security Agency, cisa.gov/stopransomware. The site provides resources to help evaluate risk and harden systems against potential attacks. It also includes a reporting portal that banks and other companies can use to report cyber incidents to the appropriate authorities.

In addition to these efforts, bank regulators have issued a notice of proposed rulemaking that would direct banks to notify their federal regulator within 36 hours after developing a good-faith belief of a “computer security incident” that will materially disrupt, degrade or impair banking operations. Importantly, this would not replace Gramm-Leach-Bliley consumer data breach notice requirements.

Additionally, the rule places a burden on a bank’s third-party providers to provide immediate notice to a bank of a disruptive incident.

While this proposal is a step toward ensuring clarity and consistency around the reporting of cyber incidents, ABA raised concerns that as written the definition of “computer security incident” is overly broad and recommended targeted changes before the rule is finalized—which is not expected until the end of the year. ABA also continues to monitor legislative activity around ransomware and the prevention of cyberattacks and will continue to update members as new developments arise.

Government efforts aside, now is the time for banks to take steps to ensure their cyber preparedness and review best practices for securing their data infrastructure. Extra vigilance today can help prevent a costly incident tomorrow.

Editor's note: Paul Benda is Senior Vice President of Operational Risk and Cybersecurity for the American Bankers Association.

THE ARKANSAS BANKER

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BANKER Q&A

THE

MILLENNIAL MINUTE with Marliz Murguia Loan Officer Southern Bancorp Bank, Glenwood, AR

WHEN DID YOU DECIDE TO BECOME A BANKER? This decision was one that, in a way, fell in my lap. I studied accounting at Henderson State University intending to use my degree to become an accountant/CPA. However, days before graduating, a banker from my hometown called me and explained the need for a banker that would see to the specific needs of our community. This piqued my interest and appealed to my love for my hometown community. I grew up, attended kindergarten through high school, and became who I am, in this community. At first, I was skeptical as to how I could apply my recently acquired accounting knowledge to the world of banking, but that is when this banker explained to me that banking was not only a necessity in a town’s economy, but it is also a way to serve the community. Banks are needed to help community members achieve their financial dreams and goals. Knowing that I was going to be able to serve and give back to the town that had given me so much, made me realize and accept that this was the career for me.

WHAT CAN BANKS DO TO BETTER APPEAL TO MILLENNIALS – IN THE WORKFORCE AND AS CUSTOMERS? In terms of the workforce and millennials, I believe efficiency should be a priority. Although the idea that millennials like things fast (fast Wi-Fi, fast food, etc.) has become a sort of cliché, the fact remains that millennials enjoy when things work the way they are meant to without too many hindrances. In this day and age, when millennials are flooding the workforce, banks have a responsibility to take on this new generation of people that demand quality while at the same time expecting efficiency, and apply their strengths and characteristics for the good of the company and our customers.

Regarding millennial customers, there is the obvious observation that millennials enjoy a strong media presence from the services they use. This generation enjoys some of the aforementioned efficiency to also be reflected in the mobile apps they use. If we go beyond these frequently mentioned suggestions, I believe that millennials most respond to an experience. Millennials are interested in aesthetics and appreciate when a bank not only provides a service but works hard to create an experience for them.

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WHAT CIVIC PROJECT HAS YOUR BANK PARTICIPATED IN THAT TOUCHED YOU THE MOST? Southern Bancorp thinks differently than most banks. We offer a variety of projects and services that help equip individuals, families and communities to grow financially stronger. It is this ideal that first attracted me to Southern Bancorp and has allowed me the opportunity, time and again, to serve my community. Southern goes beyond only being a bank and strives to develop the region in which they serve, “regardless of zip code.” One of my favorite community projects is the School Savings Project. This project consists of Southern Bancorp visiting schools throughout our community once a week to educate students concerning the importance of savings. Having learned this lesson at an early age myself, I remember practicing this principle as a young girl and I believe that it set the foundation for my financial habits now as an adult. This project, besides serving our area in the present, has the potential to influence and affect our area's citizens well into the future.

WHAT MOVIE CHARACTER ARE YOU MOST SIMILAR TO? I would say I most relate to Anne Hathaway’s character Andrea Sachs in the Devil Wears Prada. Besides the obvious fashion elements in this movie and my love for the same, it also features many similarities to my own life. In this film her character enters a field for which she is not perfectly equipped, however through hard work and excellent mentoring from Stanley Tucci’s character “Nigel,” she rises to the occasion and assumes the role. Taking on the responsibility of being a loan officer for Southern Bancorp was daunting at first and required a great deal of effort to learn the role and attempt to fulfill it at the highest level. However, just as Andrea, through hard work and mentoring from other Southern Bancorp loan officers such as Ki Hartsfield, I feel as though I am taking on the role and making it my own. Southern Bancorp has an amazing pool of talented and passionate people and it is my privilege to be among them.

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INDUSTRY U P DAT E S

CAN YOU BANK ON YOUR

Non-Competition

Agreement TO DO THE JOB?

by Jane Kim and Daveante Jones

N

on-competition agreements are critical in protecting information unique to businesses that help them compete in the marketplace.

However, this business need may clash with people’s needs and their ability to make a living.

Most courts, including in Arkansas, generally look upon non-competition agreements with disfavor when the agreements are ancillary to an employment relationship. In a time where a pandemic has caused thousands of layoffs and furloughs and stretched businesses’ systems and servers from the office building to employees’ homes with increased remote work, any obstacle put in place to making a living is placed under an even bigger microscope.

An effective non-competition agreement can be vital in an industry like banking, which experiences extreme competition in the markets the industry serves. Now is a good time to check the legal trends, re-evaluate and revamp any agreements, and develop a plan on handling potential violations.

LEGAL TRENDS Under Arkansas law, non-competition agreements entered into on or after July 22, 2015, are valid and enforceable if “the employer 18

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has a protectable business interest” and the agreement “is limited with respect to time and scope in a manner that is not greater than necessary to defend the protectable business interest of the employer.” Ark. Code Ann. § 4-75-101(a). Unlike in the past, courts are now able to reform any unreasonable restrictions and enforce the reformed agreement.

At the federal level, President Joe Biden recently issued an “Executive Order on Promoting Competition in the American Economy.” Among other things, it encourages the Federal Trade Commission to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.” While the Executive Order did not make any immediate changes to the law on non-competition agreements, it has raised a lot of questions, especially for multi-state employers.

Across the country, several states (and Washington D.C.) have recently instituted or plan to institute some sort of ban on non-competition agreements. Illinois, Maine, Maryland, Massachusetts, New Hampshire, Virginia, and Washington currently prohibit non-competition restraints on low-wage workers.

The definition of low-wage work between these states ranges anywhere from 200% of the federal minimum wage ($14.50/hour) up to $100,000 a year. Rhode Island prohibits non-competition

At the federal level, President Joe Biden recently issued an “Executive Order on Promoting Competition in the American Economy.” Among other things, it encourages the Federal Trade Commission to “curtail the unfair use of noncompete clauses and other clauses or agreements that may unfairly limit worker mobility.”

restraints on non-exempt employees under the FLSA, while D.C. plans to institute an effectively total ban on non-competition agreements. And, many courts have been reluctant to find non-compete agreements reasonable and enforceable during the COVID-19 pandemic.

REEVALUATING, REVAMPING YOUR AGREEMENTS Although states like Arkansas allow courts to reform agreements that may overreach, a reasonable non-competition agreement helps avoid litigation and the costs that come with it. The three areas of focus in drafting a non-competition agreement are (1) the legitimate business interests to be protected, (2) the time required to protect those interests, and (3) the geographic area where those interests should be protected.

The business interest being protected has to be legitimate or there is no valid agreement. Ultimately, courts examine whether the protected information can be used to gain an unfair competitive advantage. The information being protected has to be truly treated as proprietary or confidential. That may be accomplished through a confidentiality agreement or workplace policies on confidentiality, proper data storage practices, immediate termination of administrative access and collection of work-issued devices upon separation of employment, as well as having necessary information security systems in place (e.g., secure logins with multifactor

authentication and password-protected servers). Access to the protected information should be limited on a need-to-know basis. The employees who fall under the need-to-know basis are those who most likely need to enter into an agreement.

Two years is normally considered to be reasonable, but business context matters.

In other words, what is the lifespan of the information (e.g., pricing, customer/client relationships, trade secrets, etc.) being protected? For instance, the time needed to protect customer/client relationships should include the considerations of how long it takes (a) to replace the former employee, (b) train a new employee, and (c) for the new employee to develop relationships with the customers/clients.

And if a company’s pricing information or trade secrets change or update regularly, a longer time restriction will likely be unreasonable. Given the typical length of litigation, a tolling provision pausing the time restriction upon a violation may be worth considering to avoid the expiration of the time restriction before action can be taken in response to a violation.

The target geographic area is where the former employee’s work spanned. Courts typically will not enforce restrictions prohibiting former employees from working in areas or states they have never worked. In some circumstances, when an agreement is otherwise reasonably limited with respect to time and scope, a geographic restriction is not needed. For example, restricting a former employee from soliciting customers

or clients with whom he or she has worked during the past two years, for a one-year period upon separation of employment, would likely be reasonable.

DEVELOPING A PLAN The correct response to a potential violation is essential. This typically means immediately sending a demand letter detailing the portions of the agreement being violated and including a deadline in which to cease and desist any prohibited actions.

If the demand letter is unsuccessful, litigation is likely the next step. Litigation provides critical injunctive relief in the form of a court order prohibiting the former employee from violating the agreement in place. Damaged customer/client relationships and goodwill lost from a business’s name are not easily repaired with money damages and may cause irreparable harm.

Prompt action is crucial when it comes to litigation because not asking for injunctive relief before the expiration of the time restriction in the agreement could eliminate a meaningful remedy.

In short, enlighten, reevaluate, revamp, and plan for scenarios involving non-competition agreements. Doing so helps businesses prepare for the worst.

ABOUT THE AUTHOR Jane Kim is a partner attorney with Wright Lindsey Jennings. She maintains an active litigation practice, primarily defending a wide range of clients in state and federal court actions involving claims under the various civil rights laws and the wage and hour laws, and claims related to employment agreements, covenants not to compete, and trade secrets.

ABOUT THE AUTHOR Daveante Jones is an associate attorney with Wright Lindsey Jennings.

He works in the areas of labor and employment issues representing employers and professionals in a variety of matters.

THE ARKANSAS BANKER

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BANKER Q&A

FIVE VE minutes with...

LaTricia Hill-Chandler MSM, CDE Diversity, Equity and Inclusion Officer Arvest , Lowell, AR

Q. WHAT’S ONE OF YOUR

Q. WHO IS LATRICIA HILL-CHANDLER,

MOST HEARTFELT GOALS?

GIVE US A BRIEF BACKGROUND:

A.

I’m a first-generation college graduate from Magnolia, Arkansas. I received my undergraduate degree from an HBCU in Memphis, Tennessee and my graduate degree from a Christian liberal arts school in Indiana. I’ve been in diversity work for the past 28 years in multiple industries, including manufacturing, environmental, consulting, higher education, K-12, retail, and now banking. I am passionate and intentional about being inclusive. I love live music, good movies, and great conversation. I am 100% a traveling volleyball mom to my only child, Dyllan.

Q. WHAT PIECE OF ADVICE

DO YOU WISH YOU HAD KNOWN WHEN YOU STARTED YOUR CAREER?

A.

I wish I would have known that mistakes are also known as “spectacular failures." And, with each mistake comes experiential learning; so, try not to be so hard on myself when I made mistakes, but use it as an opportunity to continue to grow in my career. And, respect is required…being liked is optional.

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A.

One of my most heartfelt goals is to create opportunities and provide diverse exposures and experiences to my daughter. It is very important for her to see people for who they are, not who she is. The more representation she’s privy to, the more she is aware of the diversity of people and cultures, which then allows her the opportunity to comfortably interact with anyone.

Q. WHAT’S SOMETHING

Q. WHAT TRAIT DOES THE

A.

A.

PEOPLE DON’T KNOW ABOUT YOU?

I am one of the world’s pickiest eaters! My food can’t touch (unless it goes together), it must be served piping hot, and yes, I need condiments with almost everything!

MODERN BANKER NEED TO HAVE TO BE SUCCESSFUL?

The modern banker needs at least 2 things: 1) Self-awareness to understand the ever-evolving demographics as it relates to peers, associates, customers, and the community; and what they all will need for good business; and 2) a good friend who is not a banker. Specifically, someone who looks different, with different experiences,

banker needs “atTheleastmodern 2 things: 1) Self-

awareness to understand the ever-evolving demographics as it relates to peers, associates, customers, and the community; and what they all will need for good business; and 2) a good friend who is not a banker.

”

preferably different in age, and maybe even a different gender. Multiple perspectives, albeit personally and/or professionally are always good to have around.

First Lady of the United States. I’d want to talk about everything- from music to fashion to her favorite movie- I’m sure additional random things, too!

Q. IF YOU COULD HOST A

Q. WHAT’S YOUR BIGGEST

TALK SHOW, WHO WOULD BE YOUR FIRST GUEST?

A.

My first guest would be Michelle Obama. She’s an amazing woman, mother, wife, daughter, professional and scholar who just happened to be the former

GUILTY PLEASURE?

A.

Oh my- I have 2. Shoes and cupcakes! No matter how much weight I gain, or lose, my shoes will always fit, and cute shoes make the plainest outfit look like a Fashion Runway! And cupcakes, period.

“One of my most heartfelt goals is to create opportunities and provide diverse exposures and experiences to my daughter. It is very important for her to see people for who they are, not who she is.”

THE ARKANSAS BANKER

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A DISCUSSION ON

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THE BANKING COMMUNITY

IS LOOKING TO

LEARN AND LEAD

I

n the last 18 months, the national push for racial diversity, equity and inclusion (DEI) in the corporate workforce has been a visible, tangible, and intentional effort. Arkansas is no exception, and the banking industry has been at the forefront of the conversation – and actions – to change the business culture.

“We are having more of those conversations than we used to have. They're much more plentiful,” says Dr. Laurence Alexander, chancellor of the University of Arkansas at Pine Bluff, the nearly 150-year old historically black college and university (HBCU).

“I'm glad that others are recognizing that the time has come. Some of us who've been working at this for many years are applauding that it's high time that we give attention to this because diversity enhances the workforce in some very profound ways.”

The George Floyd killing in Minneapolis that was caught on video was an inflection point for some of this change. The seminal event provided undeniable proof of the disparities that many people of color claimed existed in America. Calls for action combined with statistical demographics of a growing multi-ethnic younger generation left little room for the business community to do nothing in response.

“After the George Floyd killing in Minnesota, I think it caused a number of people to look at this whole issue differently,” Alexander said, “I can't directly connect it to this activity other than the timing… And let me be clear: it's welcomed. This kind of attention to

students who attend HBCUs. It's a welcome sight to get a call or to get a visit or to get an email from a banker or an executive who is interested in diversifying their workforce and recognizing that, ‘Hey, I've got a real opportunity here to connect with a land grant HBCU that's right here in the state of Arkansas who's educating a number of our students and who's educating the Arkansans, who's educating residents of Arkansas.’ These are good students and they'll be good employees and they'll probably not have a hard time retaining them because they are from Arkansas and they love the state.”

Alexander said his school has a great longtime relationship with two Pine Bluff-based banks: Relyance Bank and Simmons Bank.

Not only have those banks provided internships and scholarships over the years, they absorb a number of quality graduates from UAPB. Alexander hopes a newly-launched MBA program will further the pipeline of talent his school can provide to the banking and business communities.

Nationally, there have been controversial debates on a variety of tangents related to the whole issue of DEI. How deep is the talent pool to recruit minorities to a company? Once recruited, are there THE ARKANSAS BANKER

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Dr. Laurence Alexander

Chancellor of the University of Arkansas at Pine Bluff photo courtesy of UAPB

“It's a welcome sight to get a call or to get a visit or to get an email from a banker or an executive who is interested in diversifying their workforce and recognizing that, ‘Hey, I've got a real opportunity here to connect with a land grant HBCU that's right here in the state of Arkansas who's educating a number of our students and who's educating the Arkansans, who's educating residents of Arkansas.’”

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enough opportunities for advancement? Are the efforts being made a permanent corporate culture change or part of a to-do checklist?

Scott Hamilton, Urban League of the State of Arkansas CEO, says a commitment to diversity must come from the top leadership.

“It's got to come from the C-suite. It has to be resonating from the CEO throughout the company. Without it, it's not going to work,” he said.

Hamilton, 55, serves on a business advisory board at Philander Smith College, another one of Arkansas’ four HBCUs. He’s worked in the utility business for years in Little Rock, Kansas City and Detroit. Currently, Hamilton is involved in a number of entrepreneurial efforts in addition to his Arkansas Urban League role. All of those experiences have led to mentoring roles for younger people of color.

“I think a lot of companies now are very active in terms of recruiting and seeking diverse candidates. They’re recruiting at that entry-level space. That's not a bad thing, but that's not the problem,” he said. “In fact, you will see in a lot of corporations that there's almost a revolving door. You see a lot of folks come in and a pretty good mix of young diverse candidates, but they're rotating right out.

And what they're rotating to is one of two things. They're rotating to companies that show that they've got a good positive track to get up into the senior ranks of those corporations in expeditious time and there are young folks that really want to be engaged. So I think companies have to think about that.”

The impatience of youth aside, Hamilton contends that young people wanting to move into banking and other corporate jobs have to put in effort too. He advises students to think about how they are presenting themselves to older recruiters.

“We meet and talk with students to get them some input on things that they might want to do: communication skills, how to put together a resume – a quality resume that gets the attention of a recruiter – interview tips in terms of how to engage and communicate and share things that are important. A lot of times, kids may have a lot of non-curriculum work, volunteer work, but they don't talk about it. Those are the things that can make a difference, whether or not they can get into a company at the entry-level or not,” he said.

Mike Richardson, President of U.S. Bank’s Arkansas region, says as diversity efforts expand, local banks are lucky to have four HBCUs in state. In addition to UAPB and Philander Smith, central Arkansas is home to Shorter College and Arkansas Baptist College, where Richardson serves on the board of trustees.

“We're making a deliberate attempt to change our recruiting strategies. We're looking at working with our community outreach champions here in Arkansas that we formed in the last six to eight months,” Richardson said. “It’s a priority focus, working with HBCUs, through job fairs that historically we haven't participated in as much as we would like to and need to.”

Richardson said a big challenge for bankers is communicating the passion for making a difference to a younger, more diverse recruit. While numbers are a big part of the job, so is serving the community, and that can appeal to college graduates.

Richardson believes his input on the Arkansas Baptist board is important, but his takeaways from that service may be more meaningful.

“Some things I've done to try to get in and start understanding and share my own input. More importantly, I learn myself what I need to do to bring it back to the bank. Altogether, we just lift each other with that knowledge,” he said.

His bank has a number of major initiatives it is implementing, including several pilot programs to find better ways to recruit and retain more employees who are representative of the communities U.S. Bank serves. Richardson said a light bulb moment for him centered around industry statistics involving mortgage loan officers. Nationally, fewer than 5% of mortgage lenders were people of color.

“When you look at the number of the mortgage loan officers in the industry, it's just greatly underserved from the ones that need to be there. It just struck a nerve,” he recalled. “At the end of the day, we need to do a better job – particularly in the Black community, but in our BIPOC communities – of recruitment so that we can have that connection.”

Hamilton said that urban areas see the changing face of young workers more quickly than in smaller towns and cities, but he said all corners of the state have to be ready for the societal changes that are coming.

“We’re seeing across the state of Arkansas that small communities are diversifying. We're also seeing people that are moving from larger cities, other states, that are coming to Arkansas, and why are they coming here? A lot of times they want a small town. They want a small town feel. They want a quality of life where they could maybe raise their kids in a quieter environment… And with that, they're bringing their businesses, their ideas, they're bringing their money, and their expectation is that they're going to see a society that they may be more used to in a larger community,” he said.

“If communities expect to grow and are simply sustained, you've got to have some understanding and appreciation for how the world really works. You can't operate in just a small environment: ‘this is the way it's been, this is the way it's always going to be.’ I can guarantee you, it won’t always be the way it’s been,” Hamilton said.

DEI action has serious momentum right now, and Dr. Alexander is hopeful that a foundation is being built that will sustain this effort in perpetuity.

“We don't want this to be a one-time event. We don't want this to be where we have had some conversations for a year or so and then everything ends and it goes away. No one-offs here,” Alexander said. “We wanted to see a continual conversation. We want to have that conversation with business executives and leaders and continue that on into the future so that when we look back in two or three years or five years, we can actually identify and we can see the progress that we made.”

“We're making a deliberate attempt to change our recruiting strategies. We're looking at working with our community outreach champions here in Arkansas that we formed in the last six to eight months. It’s a priority focus, working with HBCUs, through job fairs that historically we haven't participated in as much as we would like to and need to.”

Mike Richardson

President of U.S. Bank’s Arkansas region photo courtesy of U.S. Bank

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INDUSTRY U P DAT E S

Another

N AT I O N A L D E F E N S E A U T H O R I Z AT I O N A C T

and Another

L AND GR AB BY CREDIT UNIONS

I

t's that time of year again in Washington: The annual Congressional negotiation over the National Defense Authorization Act. And as sure as the sun rises in

the east and sets in the west, tax exempt credit unions are yet again trying to limit the financial services options for our women and men in uniform.

We have written about this previously, but given the harm this causes servicemembers, now is the time for Congress to take a far harder look at why credit unions, which pay no rent to operate on military installations, are fighting so hard to keep this unfair and counterproductive advantage.

Servicemembers deserve access to a wide range of regulated banking services, and it’s common sense that lawmakers should want our troops to have as many options as possible. This is easily achieved by making sure regulated banks and credit unions are on the same footing when it comes to serving military families on base.

Credit unions – including industry giants such as Navy Federal Credit Union ($112 billion in assets) and Pen Fed ($25 billion) – effectively argue that only credit unions can or should be able to provide financial services on military bases. Or are

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they afraid of competition – and once again looking to the government to give them an unfair market advantage, this time at the expense of their customers?

Congress needs to prioritize the needs of servicemembers by ensuring they have a choice about where they bank. Banks have a long and proud history of serving our armed forces. Today banks of all sizes provide financial services to military families both on post and off. Unfortunately, because credit unions have a competitive advantage due to not being required to pay their fair share for rent on bases, the number of military installations with bank locations continues to fall, from 129 in 2004 to 67 today.

You read that right – banks that decide to operate on base effectively are taxed twice: once for rent, and once again by the IRS, while credit unions pay nothing.

Who loses out when competition disappears? Servicemembers. Who fills the gap when banks are forced to leave bases?

Look outside the gates and ask the payday lenders and pawn shops how their businesses are faring.

Competition and financial choice are essential for all Americans, and the women and men of our armed forces should be no exception. And yet, they pay the price

when it comes to credit unions fighting to preserve their unlevel playing field.

It can be frustrating to bankers when credit unions claim the moral high ground over banks, invoking their original purpose dating to the Federal Credit Union Act of 1934 to serve people of modest means. But it is a moral outrage when large credit unions use this argument to reduce choice for servicemembers.

Many of the larger credit unions are nothing more than banks operating under unfair regulatory advantages. Attempting to corner the military installation market has nothing to do with doing right by servicemembers; it is about credit unions yet again attempting to perpetuate an unlevel playing field and grow their business at the expense of taxpayers.

Congress must address this inequity by offering the same rent incentives to all regulated financial institutions. The NDAA provides an opportunity to do just that – which will ensure that our servicemembers will get to choose the financial products and services that best meet their needs. The NDAA is about ensuring a capable, equipped and prepared armed services, which begins with the physical and financial health of our women and men in uniform. Congress has the power to pick winners and losers: they should pick servicemembers.

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INDUSTRY U P DAT E S

SAFE DEPOSIT

BOXES

O P T I O N A L V S . M A N D AT O R Y

by Hunter Windle

T

he Arkansas Auditor of State recently sent banks a “Directive for Holders of Safe Deposit Boxes”, dated June 17, 2021, in order to remind banks of existing law. While the directive did

not technically misstate law, it initially confused and concerned many bankers because it seemed to suggest that banks had obligations concerning safe deposit boxes that extended beyond the scope of existing law. Subsequent conversations with the state resolved some of these concerns but, in light of the directive, it seems a good time for a more banker-friendly reminder of existing law regarding unpaid and unclaimed safe deposit boxes.

There are two main sections of the Arkansas Code that involve safe deposit boxes. The first section, A.C.A. § 18-27-102, describes, among other things, the auction process banks and other box holders may take to recover rental fees and costs for unpaid safe deposit boxes. The

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second section, the Unclaimed Property Act, A.C.A. § 18-28-201, et seq., describes the process banks and other box holders must take to remit the contents of unclaimed safe deposit boxes to the state.

Under § 18-27-102, banks may sell the contents of unpaid safe deposit boxes at public auction. Despite language in the directive directing banks to sell box contents, the auction process is entirely optional under existing law. If a box is unpaid for at least six months, a bank may open the box after providing at least thirty days’ notice by certified, return receipt mail to the lessee’s last known address.

The box must be opened in the presence of two bank employees, one of whom should be an officer or manager, and a notary public. The bank must then inventory the box and place the contents in a sealed container to be stored subject to its lien for the unpaid rental fees, costs of opening the box, and any damages connected therewith. If the amount owed is not paid within two years, the bank may then

... Banks may sell the contents of unpaid safe deposit boxes at public auction. Despite language in the directive directing banks to sell box contents, the auction process is entirely optional under existing law. If a box is unpaid for at least six months, a bank may open the box after providing at least thirty days’ notice by certified, return receipt mail to the lessee’s last known address.

sell any part or all of the contents at public auction, which must be administered and noticed by the same means real property is sold under a mortgage or deed of trust. After the auction, unauctioned contents and excess proceeds should be remitted to the state under the procedures described in § 18-28-201, et seq.

Under § 18-28-201, et seq., banks must remit unclaimed safe deposit box contents to the state. Safe deposit boxes and their contents are presumed abandoned if they remain unclaimed by the owner for more than five years after the expiration of the lease or rental agreement. § 18-28-203. Unclaimed safe deposit box contents should be listed in the bank’s unclaimed property report which must be received by the auditor prior to November 1st of each year. § 18-28207(d). The contents must then be remitted to the auditor between March 1st and April 30th of the following year that the report was filed. § 18-28-208(a).

These two sections of code are related – unclaimed safe deposit boxes are almost always unpaid safe deposit boxes – but it is clear that one code section is optional and the other is mandatory.

There are many reasons why a bank might decide not to exercise its right to sell the contents of unpaid safe deposit boxes. The public auction process requires time and effort, raises potential legal and compliance concerns, and – by publicly selling the personal property of former customers – might even create reputational risk. There is also little financial incentive. Unpaid boxes either will be paid by the owners or their heirs, without the necessity of a public auction, or they will become unclaimed boxes. Unclaimed safe deposit box contents are remitted to the auditor subject to the bank’s lien for unpaid rental fees and costs of opening the box, less the cost of any sale. § 18-28-210(g). Unlike banks, the auditor is required to auction the contents of unclaimed safe deposit boxes within three years of receipt unless the auditor considers the probable costs of the auction to exceed the proceeds of the auction. § 18-28-212 (a)(1).

For the same reasons, some banks might decide to err on the side of caution when complying with the directive’s instruction that banks dispose of valueless contents of unclaimed safe deposit boxes, and omit those items on their unclaimed property reports. The auditor has the right to decline to receive property that it considers to have value less than the cost of notice and sale. § 18-28-217(a).

Banks, however, might create potential legal and compliance risk if they make the same determination. It might be prudent to continue to defer to the state to make the determination of value, only disposing of property once it has been returned by the auditor.

Editor’s note: Hunter Windle is Vice President and Legal Counsel for Malvern National Bank.

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INDUSTRY U P DAT E S

REDUCING RISK WITH

Environmental

Due Diligence

by Karen McCurdy

W

hat is environmental due diligence and why would someone spend time and money to do it? Broadly, environmental due diligence

is the process of assessing commercial real estate to identify possible risk of environmental contamination, either past or potential. This is important to a lender for several reasons.

Environmental liabilities can decrease a property’s collateral value in a real estate loan. A borrower’s ability to repay a loan can be impacted by unforeseen costs of cleaning up contamination or complying with environmental regulations. And, if a property is foreclosed upon, the lender may find itself holding title to a contaminated property and the responsibilities that go with it.

Numerous federal, state and local environmental laws affect commercial real estate. The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), also commonly referred to as Superfund, established liability provisions that drive the need for environmental due diligence. The Resource Conservation and Recovery Act (RCRA), the Superfund Amendments and Reauthorization Act (SARA), and the Small Business Liability Relief and Brownfields Revitalization Act each provide additional complexity and considerations.

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The United States Environmental Protection Agency established the Standards and Practices for All Appropriate Inquiries (AAI Rule), which provides the specific regulatory requirements for conducting “all appropriate inquiries” for property acquisitions and qualifying for landowner liability protections under CERCLA. This is an important risk reduction tool. Without liability protection, landowners can be liable for the costs associated with environmental contamination and site remediation regardless of whether they were responsible for the contamination. Lenders are shielded from these potential substantial costs as long as they are careful to properly manage their activities and relationship to property management. This requires attention, especially when taking control of a foreclosed property.

Limiting liability under CERCLA and other laws is the strongest driver of environmental due diligence efforts.

Many people who work with commercial real estate transactions are familiar with the Phase I Environmental Site Assessment (Phase I ESA), arguably the most recognized form of environmental due diligence. By conducting a Phase I ESA, potential purchasers can satisfy the requirements for “all appropriate inquiries” and benefit from landowner liability protection under CERCLA law. Phase I ESAs are conducted in accordance with ASTM Standard E1527-13 or, less commonly, per ASTM Standard E2247-16 for Forestland or

Rural Property. Proper timing of the inquiry is crucial. A Phase I ESA is only valid for 180 days and must be completed in advance of transfer of title.

A Phase I ESA seeks to review the comprehensive use of a property going back to its initial development or to 1940, whichever is earlier. This review attempts to determine whether there are, or ever have been, any possible releases or threat of releases of hazardous substances or petroleum products on the property. The primary goal of a Phase I ESA is to assess a piece of commercial property to determine the presence of any “recognized environmental conditions.” A recognized environmental condition (REC) is defined as “the presence or likely presence of any hazardous substances or petroleum products in, on, or at a property: (1) due to any release to the environment; (2) under conditions that are indicative of a release to the environment; or (3) under conditions that pose a material threat of a future release to the environment.” Finding RECs does not mean a property is contaminated, but it does mean there are potential environmental issues to evaluate as risks.

A good Phase I ESA will go a long way toward providing valuable information on a piece of property. It will provide CERCLA landowner liability protection, which may be enough for one purchaser but not for another, depending upon the individual’s needs. It is important to understand the benefit of conducting a Phase I ESA, but it is equally important to understand what a Phase I does not provide. A Phase I ESA includes a visual inspection of the property, interviews with property owners, and a records review, but it does not include testing

A Phase I ESA includes a visual inspection of the property, interviews with property owners, and a records review, but it does not include testing of soils or any other materials found at the site.

of soils or any other materials found at the site. In addition, a Phase I ESA only addresses hazardous substances and petroleum products. Other potentially important environmental considerations are not included in the standard scope of a Phase I ESA. For example, asbestos-containing building materials, lead-based paints, operational environmental regulatory compliance, mold, radon, endangered species, and wetlands are out-of-scope for Phase I ESAs. A Phase I ESA will satisfy environmental due diligence needs in many cases, but it is wise to consider in advance what the effort seeks to achieve. If less in-depth analyses are appropriate for a particular property, the Transaction Screen (ASTM E1528-14) and/ or the Records Search with Risk Assessment (SBA SOP 50 10 6) are available. These desktop review tools may provide adequate information to support a transaction moving forward. However, they do not satisfy the EPA’s AAI Rule and, therefore, do not enjoy the liability protections afforded by conducting the Phase I ESA. Likewise, a Phase I ESA may not provide enough information for certain properties. Suppose particular concerns about possible contamination or suitability for future redevelopment use exist. In that case, additional investigation beyond the scope of the Phase I is likely warranted to adequately evaluate business environmental risk. Asbestos and/or lead-based paint inspections for structures and environmental compliance audits for manufacturing facilities can be important inquiries. Wetland studies can be critical to understanding the development potential of a specific site. A Phase II Environmental Site Assessment,

which consists of actual sampling and analysis to evaluate whether contaminants are present and at what levels, may be necessary to support a transaction proceeding.

Environmental due diligence produces findings that are valuable resources for lenders to use in crafting informed and risk-limited transactions. Lenders can gain significant liability protections through these tools, but they must navigate actions carefully to avoid inadvertently losing those protections. Maintaining good environmental counsel, training employees well, and conducting proper due diligence are all practices that will reduce risk.

Environmental legal counsel and/or environmental consultants can help evaluate the breadth and depth of scope and investigation needed on a project-by-project basis.

These items work together to build a due diligence package that protects liability, helps manage risk, and eases the minds of both purchaser and lender alike.

ABOUT THE AUTHOR Karen McCurdy is leads Crafton Tull's Environmental Division and is an experienced environmental professional with specialized expertise in industrial air pollution permitting and regulatory compliance.

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Coping with

COVID-19 AS THE PANDEMIC WEARS ON, BANK LEADERS GRAPPLE WITH MENTAL HEALTH CHALLENGES FOR WORKERS.

B

ruce Maloch has faced a lot of challenges through his professional career. A former state legis-

lator and attorney, he has worked for Farmers Bank and Trust Co. since 1986 and now serves as its chief operating officer and general legal counsel.

Throughout his years in the banking industry, Maloch has experienced the ups and downs in the industry. Recessions, terrorist attacks, weather-related disasters and many other events have had direct and long-lasting consequences for the industry. But none of those could have prepared him or his colleagues for the challenges that would begin in March 2020, he said.

That month, the novel coronavirus COVID-19 swept through Asia and Europe and finally landed in the U.S. On the outset of the pandemic, businesses were shuttered nationwide and it resulted in a recession that caused a record quarterly drop in GDP – nearly 34%.

Maloch said a lot of the damage done to the economy at the time was stymied by the repeated stimulus packages doled by the federal government to businesses and individuals. His concerns were not related to the economy when it started; his concerns were for the safety of his employees and customers.

“There was a lot of uncertainty ... we worked to ensure the safety of our employees and customers,” he said. “I would say this has been the most unique challenge we've faced since I've been here.”

The impact to employees in all industries has been dramatic, Little Rock-based Southwest Employees Assistance Program (EAP) President Maggie Young said. The constant quarantines, changes at workplaces, and even working remotely have created the greatest paradigm shift many workers will face in their lifetimes, she added.

“I would say first and foremost that mental health is critical ... People are really exhausted from the constant change. It's really wearing people down,” Young said.

When Maloch began his banking career in 1986, the bank had about $75 million in assets and that has ballooned to more than $1.9 billion. The bank employs about 300 workers.

Many businesses were shuttered during the first eight weeks after a state of emergency was declared by Gov. Asa Hutchinson. Many banks, including Farmers Bank and Trust, had to shut down their lobbies. Employees with underlying conditions or those who could work from home were instructed to do so.

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“There has been a 30% increase in overdose cases as people try to deal with these newfound stresses, while 59% of workers report that overwork, stress, and burnout are their top concerns.”

When the lobbies did open back up, a lot of appointments for customers were set up ahead of time to limit the number of people in contact. Sneeze guards were erected and all Center for Disease Control guidelines, including social distancing and masking, were enforced. During the first couple of COVID-19 waves, there were scattered employees that were infected.

Eventually, the mask mandate relaxed and employees only had to put them on if a customer was wearing one. Now, that's changed with the Delta variant of the disease, he said. Many more employees have been infected during this most recent wave and more have had to be quarantined, he said. The masks are once again mandatory.

Employees who have to miss work due to quarantine are paid their normal wages, Maloch said.

The impacts to employees are still evolving, but one change that was on the horizon for the banking industry was accelerated by the pandemic. For years, customers have been utilizing online banking through website use and applications. That trend has gained tremendous momentum and likely won't change, he said.

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This will lead to less of a need for brick-andmortar spaces and will likely lead to fewer tellers, Maloch said. Those who work those jobs could be reassigned to other jobs or the parameters of that particular job could be modified, he said.

Jonesboro Regional President for Centennial Bank Davy Carter said his organization faced similar problems as the pandemic unfolded.

“Early on, it was difficult. It was difficult to determine what we needed to do. We were scrambling for information,” he said.

One problem they had in physical banks was that many employees work in close proximity and the work they do is harder when they are spaced out, but space had to be created, he said.

Before the pandemic, Carter said the company had a group of tellers that would rove from the branch, but that had to be shut down as the pandemic deepened.

Lobbies were shuttered and there was a surge of customers using online banking tools, he added.

Centennial was able to identify employees who could work from home or just remotely, but that brought on several problems as well.

Security is always a concern in the banking industry and they had to be certain that sensitive information remained protected.

“We had to ask ourselves. Can they work from home and should they work from home? Those are some of the questions we dealt with,” he said.

Maintaining adequate staff levels had been a challenge and earlier in the year finding workers was an issue, Carter said. That problem has subsided, but the quarantines and employees who become ill and miss work continue to put stress on the systems. Centennial hasn't mandated employees get vaccinated, but it has been encouraged, he said.

“That's been our quest and our encouragement to the staff,” he said.

“This new work environment has been tough on workers,” Young said. “There has been a 30% increase in overdose cases as people try to deal with these newfound stresses, while 59% of workers report that overwork, stress, and burnout are their top concerns,” she added.

Successful companies in this new era will have to provide mental health tools for employees and remove stigmas that are attached to seeking those types of help, she said. Working remotely can be good for employees who are trying to strike the right balance between work and life, but it comes with its own unique issues as well.

Structure, boundaries, routines, and other norms have been upended by this remote work trend. Companies will have to spend more time and resources communicating with employees and providing the right types of technology to ease the transition, she said.

One thing is for certain in Young's estimation.

“We learned there is flexibility in jobs that we never knew was there,” she said.

“We already had the technology, but we didn't have the acceptability. I don't think we are going back. A hybrid workforce some remote, some in office - is here to stay.

This is what the future looks like.”

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INDUSTRY U P DAT E S

Writers Today INVESTORS TOMORROW

by Ginsie Higgs Economics Arkansas

O

n Monday, April 19, 2021, Riley Becker, age 12, received some pretty exciting news during what he thought was just a quick visit to the Jacksonville City Hall with his mother. Instead

of running an errand, he found out that an essay he had written during the Fall 2020 semester won 1st Place in the National InvestWrite™ Competition.

InvestWrite™ is offered as a complimentary writing component to the Stock Market Game™, an investment simulation for 4-12 grade students. Both programs are owned by the Securities Industry Financial Markets Association (SIFMA) Foundation; the Stock Market Game™ has been franchised to Economics Arkansas since 1999.

Becker received the news he had won 1st Place in both the State and National competitions via Zoom from SIFMA Foundation President Melanie Mortimer. He was joined by his family, former and current teachers from Bobby G. Lester Elementary and Flightline Upper Academy, and Jacksonville Mayor Bob Johnson.

SIFMA Foundation's InvestWrite™ national essay competition bridges classroom learning in math, social studies, and language arts with the practical research and knowledge required for saving, investing, and long-term planning. The 2020 essay prompt asked students to write about overcoming change or obstacles and relate their personal experience to a publicly traded company that has also had to adapt to change.

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Becker developed a plan that would have an impact today and into the future and wowed the team of judges with his essay, beating out thousands of other students around the country in the middle school division.

Becker wasn't the only winner from Jacksonville this year.

Addyson Turner, age 11, also a student at Bobby G. Lester Elementary, won 2nd Place in the national elementary division for the Spring 2021 semester competition. Turner wrote about her short-term and long-term goals and how they will help her own her own business someday.

Not only do these winners get to take home a big trophy, they also receive medallions and certificates, cash prizes, and even a new laptop. Not to mention bragging rights; this is only the third and fourth time Arkansas has produced national winners in the competition.

InvestWrite™ offers an opportunity for students to apply their investment experience during the Stock Market Game™ and showcase their financial literacy. Both programs help students improve their math, business, language, social studies, economics, technology, and critical-thinking skills. Since the competition began in 2004, more than 92,000 essays have been submitted at the national level and read by over 44,000 volunteer judges. Once sent to the national level, each essay is read and scored four times.

Marsha Masters, Associate Director of Economics Arkansas, says, "Helping Arkansas students better understand our economy, our markets, the role of investors, and how to make good

InvestWrite™ national essay competition bridges classroom learning in math, social studies, and language arts with the practical research and knowledge required for saving, investing, and long-term planning.

investment choices will pay dividends for the students, their education, and the Arkansas economy."

Economics Arkansas, a nonprofit educational organization that trains teachers to integrate economics and personal finance concepts into their classroom curriculum, hosts the Stock Market Game™ each school year. The investment competition allows students to grow a virtual $100,000 stock portfolio over a semester or school year. The average annual participation in Arkansas is more than 15,000 students.

Essays written by each state and national winner can be found on Economics Arkansas' website: www.economicsarkansas. org/for_teachers/stock_market_game.

HOW YOU CAN MAKE AN IMPACT TODAY Invest It Forward™, another program of the SIFMA Foundation, brings industry experts into the classroom setting to enhance students' experience playing the Stock Market Game™. Bankers can add real-life experience, investment tips, and words of wisdom, although – fair warning – you may learn something from the students as well.

One student from the Arkansas School for Mathematics, Sciences, and the Arts

PHOTOS: (from top) Riley Becker, age 12, won 1st Place in the National InvestWrite™ Competition during the Fall 2020 semester.

Addyson Turner, age 11, won 2nd Place in the national elementary division for the Spring 2021 semester competition.

became the overall winner of the 2021 spring SMG competition with his net balance of $1,151,345.44, an amount unheard of since the game's start in 1999 in Arkansas.

Volunteer firms can act as classroom guest speakers, field trip hosts, and sign-up to be an InvestWrite™ judges. Presenters have access to SIFMA Foundation's stepby-step curriculum and can work as a team or individually. For more information and to be matched with a local teacher, visit www.investitforward.sifma.org.

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2 0 2 1 C O N S U M E R L E N D I N G S C H O O L

Graduates

This informative, intensive school is designed to prepare consumer lenders to originate loans to qualified consumer and residential borrowers and minimize collection problems and loan losses, and to be in compliance at all times with ever-changing fair lending regulations.

Congratulations to the Graduates!

LEVI RUSS

Grand Savings Bank BENTONVILLE

JADE BEER

MCCALL GROVES

TOM SAWYER

EL DORADO

STAMPS

MAGNOLIA

First Financial Bank

RYAN CUTLER

DREW PERSON

RUSSELLVILLE

FORT SMITH

First State Bank

OMAR PORTILLO

ARKADELPHIA

FORT SMITH

Bodcaw Bank

CLARA WEATHERLEY

First Arkansas Bank & Trust GREENBRIER

ANDI WHITMAN

Firstar Bank

Farmers Bank & Trust Company

KIMBERLY GRADDY

AUSTIN REEVES

PENNY WOLFE

EVENING SHADE

JONESBORO

CAVE CITY

Bank of Cave City

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Firstar Bank

LESLEY GALBRAITH Southern Bancorp

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Bodcaw Bank

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Centennial Bank

MALVERN

Bank of Cave City

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INDUSTRY U P DAT E S

EMERGING LEADERS SECTION

DAY AT THE

CAPITOL photography by Michael Pirnique

PHOTO: (Above) Back Row Left to Right: Max Harrell, Generations Bank; Derek Eckelhoff, First Security Bank; Easton Cowart, First State Bank of DeQueen; Ian Bryan, Simmons Bank; Zac Price, First Financial Bank; Justin McCarty, Simmons Bank; Barry Hickmon, First Service Bank.

2nd Row: Lorrie Trogden, Arkansas Bankers Association; Maret Cahill Wicks, Arvest Bank; Jeremy Orman, Peoples Bank; Chance Robbins, CS Bank; Alex Batres, CS Bank; Ty Teague, First National Bank.

Front Row: Tammy Roper, Arvest Bank; Beth Presley, Arvest Bank; Brandon Gentry, Cross County Bank; Cheryl Werner, First Arkansas Bank and Trust; Julie Chambers, First Service Bank.

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PHOTOS: (this spread) Emerging Leaders heard from the House of Representatives panel, the Senate panel, and Senate Chamber and Game and Fish/State Police Subcommittee during the Emerging Leaders Day at the Capitol.

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NEWS & MOVES FLORA SISEMORE

RETIRES AFTER 60 YEARS WITH BANK

A

Flora Sisemore

fter 60 years of service to the DeWitt community and Arkansas County Bank (now Southern Bancorp), Flora Sisemore retired. The bank held a retirement ceremony on May 24. Flora Sisemore’s career began at First National Bank (then Arkansas County Bank and now Southern Bancorp) of DeWitt in June of 1961, in the Bookkeeping Department.

Since she began working at the bank right after high school, Flora has worked under five Chief Executive Officers, and has received promotions from Assistant Cashier to Senior Vice President.

Senior Vice President (middle)

JEFF TEAGUE NAMED CHAIRMAN AND CEO OF CITIZENS BANCSHARES AFTER SALE OF AUTO DEALERSHIPS TO NBA LEGEND KARL MALONE

J

eff Teague has been appointed Citizens Bancshares chairman and CEO. Citizens Bancshares of Batesville, Inc. is the holding company for Citizens Bank of Batesville.

In his role with the holding company, Teague will help guide the policies of Citizens Bank, which recently announced leadership changes with Adam Mitchell stepping into the bank’s CEO role in April 2021.

In late June, Teague finalized the sale of his El Dorado-based auto dealership company, Teague Auto Group, to former NBA legend Karl Malone.

Teague’s involvement in Citizens Bank goes beyond the official position. The bank was founded by the grandfather of his wife, Sarah, more than 60 years ago.

“Jeff has been a dedicated teammate for years. We look forward to his increased attention to our community-focused bank,” said Adam Mitchell, CEO of Citizens

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Bank. “He is a trusted community partner and committed to enhancing our ‘Beyond Banking’ solutions.”

Teague is a graduate of Dumas High School and went on to earn a degree in math from Ouachita Baptist University in 1978.

According to a biography provided by the National Automobile Dealers Association, he worked in auto sales and for Arkansas Power & Light Co. until 1981, when he and his father bought a ChevroletOldsmobile dealership in Walnut Ridge.

Teague was named Time magazine’s national Dealer of the Year for 2014. Teague has served the community in many capacities through various organizations including Rotary International, chairman of the South Arkansas Regional Airport Commission, El Dorado Economic Development Board, member of the Arkansas State Police Commission, and two local chambers of commerce

TEAGUE’S INVOLVEMENT IN CITIZENS BANK GOES BEYOND THE OFFICIAL POSITION. THE BANK WAS FOUNDED BY THE GRANDFATHER OF HIS WIFE, SARAH, MORE THAN 60 YEARS AGO.

SOUTHERN BANCORP COMMUNITY PARTNERS

NAMES SEWARD NEW DIRECTOR OF LENDING

S

Charlton Seward Director of Lending

outhern Bancorp Community Partners (SBCP), a 501(c)(3) loan fund and Community Development Financial Institution (CDFI), recently announced the hiring of Charlton Seward as Director of Lending. In this role, Seward will lead SBCP’s lending activities throughout the Southern Bancorp footprint, deploying targeted capital aimed at helping financially underserved communities build wealth.

“After an extensive search, we are excited to welcome Charlton to the Southern team and back home to Arkansas,” said Darrin Williams, Southern Bancorp, Inc. CEO. “His expertise will significantly increase SBCP’s lending capacity, and his passion for development finance will be an asset to the people, families, and small businesses we serve.”

Seward brings to SBCP more than 30 years of experience in lending, small business development, and personal financial development services. After the 2008 financial crisis, Seward started his own financial consulting business serving clients like Capital One throughout the U.S. and Mexico. He has held

management roles for several large financial institutions across the country, including most recently in Wells Fargo’s Chicago market.

“I am honored to join a mission-driven organization like SBCP that welcomes change and innovative thinking, as my personal mantra is ‘getting comfortable with the uncomfortable’,” said Seward. “I believe integrating new ideas and new technologies into the traditional lending space is needed in order to best deploy capital to those for whom it has traditionally been inaccessible. I am excited to now do this important work in my hometown.”

An Arkansas native, Seward received his bachelor’s degree from Hendrix College in Conway in 1993 and did his graduate work at the University of Houston.

In 2014, he graduated from compliance school.

SBCP works in tandem with Southern Bancorp, Inc. and Southern Bancorp Bank to increase access to capital in underserved markets through financial development services, public policy advocacy, and flexible lending.

ARVEST BANK

PROMOTES MATT KENDALL TO FULL-TIME CEO OF MORTGAGE DIVISION

A

rvest Bank named Matt Kendall president and CEO of the bank’s mortgage division and Arvest Central Mortgage Co. Kendal filled the role on an interim basis since February, following the resignation of Steven Plaisance.

Kendall has 28 years of industry experience, including serving as president and CEO of Waco Title Co.— owned by Arvest Bank Group since 2000 — and as executive director of administrative operations for Arvest’s mortgage division. Kendall is accountable for directing management teams and

processes for Arvest’s mortgage division and Arvest Central Mortgage Co. in his new role.

Arvest’s mortgage division is on pace to originate more than $3 billion in mortgages for the second consecutive year and currently services more than 77,000 loans for $10-plus billion. Arvest Central Mortgage Co. services and subservices $56-plus billion in mortgages for more than 270,000 customers.

Kendall earned a bachelor’s degree in economics and business, emphasizing accounting, at Hendrix College.

ARVEST’S MORTGAGE DIVISION IS ON PACE TO ORIGINATE MORE THAN $3 BILLION IN MORTGAGES FOR THE SECOND CONSECUTIVE YEAR.

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NEWS & MOVES STONE BANK

SELECTS KYLE COWLES AS VICE PRESIDENT AND CONTROLLER

S

Kyle Cowles, CPA Vice President and Controller

tone Bank has named Kyle Cowles, CPA, Vice President and Controller. Cowles formerly held management positions with the BKD and PricewaterhouseCoopers accounting firms and is a graduate of George Washington University. He will have principal responsibilities in the areas of regulatory reporting and oversight of the general ledger.

Patrick Hum was promoted to financial planner and analyst at Stone Bank. Hum formerly held management positions with the bank including SBA Servicing and Relationship Manager. He is a graduate of the University of Central Arkansas with degrees in accounting and a Master of Business Administration in finance.

He will have principal responsibilities to provide senior management with analysis of historical financial performance, and forecasting future performance based on the goals and strategic plans of the bank.

Stone Bank also added Adam Mizda as a USDA Financial Analyst. He served in a similar position with Citizens Bank in Little Rock. He is a graduate of Kent State University with a BBA degree in accounting and finance. His responsibilities include credit analysis and underwriting.

Stone Bank has offices in Little Rock, Mountain View, Harrison, White Hall, DeWitt and Gillett.

SIMMONS BANK

ADDS 11 TO COMMERCIAL FINANCE TEAM

S

immons Bank announced the addition of an experienced 11-member commercial finance team led by industry veterans Lee Palm, Brian Shapiro and Phil Mulder.

Palm will lead the group as president of Simmons’ new Commercial Finance business unit. Shapiro will serve as managing director heading up the transportation and marine business, while Mulder will oversee the credit function as the division’s head of credit and risk.

The trio will lead Simmons new equipment finance team that will primarily focus on business aviation, OTR trucking, franchise finance, marine financing, and a specialized buy/sell desk function.

“Lee brings extensive industry experience building and leading successful commercial finance businesses and the relationships he’s developed will benefit Simmons as we look to further expand and diversify our commercial banking capabilities,” said Matt Reddin, executive vice president and chief banking officer at Simmons.

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“BEING ABLE TO ADD AN ENTIRE TEAM WITH THE EXPERTISE AND SKILLSET THAT ENCOMPASSES ALL OF THE BUSINESS VERTICALS NECESSARY TO BEGIN OPERATIONS REPRESENTS A UNIQUE ‘PLUG AND PLAY’ OPPORTUNITY THAT WILL ALLOW US TO IMMEDIATELY HIT THE GROUND RUNNING,” “Being able to add an entire team with the expertise and skillset that encompasses all of the business verticals necessary to begin operations represents a unique ‘plug and play’ opportunity that will allow us to immediately hit the ground running,” added Reddin. “Equally important, we’ll be able to offer our commercial finance customers a deeper banking relationship with access to our full array of complementary commercial banking and wealth management products and services.”

Palm most recently served as president of commercial finance at TCF Bank, a $50 billion asset bank formed through the merger of Chemical Bank and TCF Bank. In this role, he developed a successful de novo business plan to establish a commercial lending business targeting corporate aviation, inland marine and rail, trucking, healthcare finance and franchise finance.

The other team members include: Tom Vasilakos, Rick Riecker, Chuck Fletcher, Cabel Finch, Andy Chiarenzelli, Jim Lewis, Larry Roegner, and David Lyle.

ARVEST BANK

HIRES JPMORGAN EXEC FOR NEW DIGITAL BANKING ROLE

F Melanie Fuller

President of Digital Banking Solutions

ayetteville-chartered Arvest Bank announced the hiring of Melanie Fuller as president of digital banking solutions. Fuller spent the past decade working in Ohio in various leadership roles for JPMorgan Chase, including head of experience and technology for customer service and as the executive director of strategy and operations.

An Arvest spokesman said Fuller would eventually relocate to the state and office in Northwest Arkansas.

Fuller’s position is new at Arvest. According to a news release, the new division is part of the bank’s multi-year transformation strategy, which

includes adopting a next-generation core banking platform and enhancing digital payments and services capabilities.

Fuller has experience at driving large-scale, strategic transformations across functions, lines of business and channels. According to the release, that experience makes her an ideal fit to lead the company’s digital banking strategy.

Fuller has a bachelor’s degree from Ohio Wesleyan University and a master’s degree in business administration from Ohio State University’s Fisher College of Business.

LEVI RUSS AND LANCE CLARK

JOIN GRAND SAVINGS BANK; OTHERS PROMOTED

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evi Russ joined the staff of Grand Savings Bank (GSB) in Bentonville in the position of community banker. Russ comes from his most recent role as the director and co-owner of ARK Trading based in Windhoek, Namibia.

At ARK Trading, Russ worked to rebuild a deteriorating supply chain with the goal of addressing the housing shortage in Namibia. ARK Trading tripled in size during his five years of leadership. Before ARK Trading, Russ was based in the Maldives establishing marine agriculture farms.

With this unique background of finance and community development, Russ is expected to be an asset to GSB’s Bentonville community. He is a graduate of Bentonville High School and holds both a Bachelors of Science in Business Administration, Finance and Masters of Business Administration from the Walton College of Business at the University of Arkansas.

Lance Clark has also joined Grand Savings Bank in the position of loan officer. Clark is a veteran of the industry with over 29 years of banking

experience. Continuing his career as a commercial lender, Clark will bring a wealth of knowledge to his new position at GSB. Clark is an alumnus of Missouri State University. He is engaged in supporting his community in various roles. He was a volunteer with Watch Dog Dads in Springdale and served as a board member with United Way, Boys and Girls Club, YMCA and Rogers Little Theater.

Other Grand Savings Bank promotions include: Jared Gabriele of Rogers, Ark. has been promoted to senior vice president/ Lending after serving as vice president/Lending for four years. He has 18 years of banking experience.

Steve Odle of Grove, Okla. has been promoted to senior vice president/ Lending after serving as vice president/Lending. Odle has been with GSB for the entirety of his 19-year banking career.

Heather Wagner of GSB’s Jay, Okla. branch has been promoted to vice president/Lending and previously served as assistant vice president/Lending. Wagner has been with GSB for 16 years.

Jackie Serrano is now assistant vice president/training after serving as the retail training coordinator. Serrano has 10 years of banking experience.

Kelsey Rhine of Grove, Okla. is now assistant vice president/human resources director after previously serving as human resources officer. Rhine has been with GSB since 2016.

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NEWS & MOVES CITIZENS BANK

PROMOTES BAILEY, HERNDON, EXPANDS CREDIT DEPARTMENT LEADERSHIP

C John Thomas SVP Senior Credit Officer

Trish Morrow

AVP Credit Analysis Manager

itizens Bank promoted Michael Bailey to assistant vice president portfolio manager and Aaron Herndon to assistant vice president retail manager and consumer loan officer.

Bailey, previously a loan portfolio analyst for Citizens Bank, will take on more responsibility in this new role with an increased focus on new loan production and management of individual loans in the central Arkansas region.

He attended University of North Carolina Wilmington and received a bachelors in mathematics with a focus on statistics.

Herndon, previously a retail manager for Citizens Bank, will serve the north central Arkansas region in his new role as assistant vice president retail manager and consumer loan officer at the Citizens Bank headquarters location in Batesville. Herndon will take on more responsibility for retail service and operations in his new role.

Herndon graduated from Barrett Banking School and received his associates of applied science with a focus in business services banking and finance.

Citizens Bank also announced two additions to

its credit department leadership team with the addition of John Thomas as SVP senior credit officer and the promotion of Trish Morrow to AVP credit analysis manager.

Thomas, previously serving Simmons Bank as a credit analysis manager, will be responsible for all credit functions of the bank and portfolio management. He will be based in the Little Rock branch.

Thomas earned a Bachelor of Science in Business Administration from the University of Arkansas and a Master of Business Administration from the University of Arkansas at Little Rock.

Morrow, previously serving as an AVP credit analysis supervisor at Citizens Bank, will take on new responsibility in this role to lead a team of credit analysts and work with lending officers on the structures of various credits. She will ensure loan policy compliance and manage underwriting procedures while based in the Rogers branch.

Morrow previously held multiple roles at Bank OZK. She graduated from Henderson State University where she earned a bachelor’s degree in business administration.

BANCORPSOUTH

HIRES CAROLYN RAMSEY AS BRANCH MANAGER IN MAGNOLIA

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ancorpSouth Bank hired Carolyn Ramsey as a branch manager at its main location in Magnolia. Ramsey will be working with BancorpSouth Community Bank President Jeff Venable to promote community involvement and business development efforts.

Ramsey has nine years of banking experience, previously serving as a branch manager at both national and regional banks. She has completed courses at Northeastern State University in Tahlequah, Oklahoma.

Ramsey is a member of the Rotary Club of Magnolia, a board member of United Way Board of Columbia County and a supporter of the Columbia County

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Animal Protection Society. She previously served as a board member for Habitat for Humanity and Harvest Regional Food Bank.

RAMSEY HAS NINE YEARS OF BANKING EXPERIENCE, PREVIOUSLY SERVING AS A BRANCH MANAGER AT BOTH NATIONAL AND REGIONAL BANKS.

CS BANK

APPOINTS MICKEY BELLE SHIELDS AS MARKETING DIRECTOR

M Mickey Shields

Marketing Director

ickey Belle Shields has been named Marketing Director for CS Bank.

Shields, who currently attends Arkansas Tech University online, will oversee all aspects of CS Bank’s marketing, advertising, social and digital media, public relations and brand development functions. She will coordinate these initiatives along with community and philanthropic endeavors for the company.

“It is always rewarding to promote deserving young professionals to positions of leadership within our institution. Mickey Belle has proved to be an

outstanding individual who brings not only a strong aptitude but tremendous energy and passion for the local communities we serve. We are blessed to have her as part of our bank family and have every confidence she will excel in this new role moving forward,” said Jason F. Tennant, CS Bank President and Chief Lending Officer.

CS Bank, formerly Cornerstone Bank, a 109-yearold rapidly growing local financial institution, has six locations throughout Northwest Arkansas and one location in Southwest Missouri.

FARMERS & MERCHANTS BANK

ADDS THREE TO BOARD OF DIRECTORS

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armers & Merchants Bank announced that Meg Johnston, Sam Tarkington, and Kirk Vansandt have been named to the bank’s board of directors.

Farmers & Merchants Bank, headquartered in Stuttgart, is a locally-owned community bank with 26 locations across the state of Arkansas, including eight operating as The Bank of Fayetteville.

With assets in excess of $1.6 billion, Farmers & Merchants is the 10th largest bank chartered in Arkansas.

Johnston is a Stuttgart native and now works as a business and regulatory attorney with the Mitchell Williams Law Firm in Little Rock. Her clients include Fortune 500, bank and insurance companies along with small businesses and agricultural landowners navigating mergers and acquisitions, commercial and agricultural loans and commercial, corporate and real estate transactions.

Tarkington is a life-long resident of Arkansas County and a fifth-generation farmer. His family, which has owned an agricultural operation in the region for more than a century, currently farms 5,600 acres of rice, corn and soybeans outside of Stuttgart.

Vansandt is a longtime employee of Farmers & Merchants Bank and currently serves as the Chief Agriculture Lending Officer for the organization. Prior to being named CLO in 2019, Vansandt worked as the Senior Vice President, Eastern Market President and Loan Officer. A native of Dewitt, Vansandt graduated from the University of Central Arkansas in 1992 with a bachelor’s degree in Business Administration.

“I am thrilled to announce and welcome Ms. Johnston, Mr. Tarkington, and Mr. Vansandt as directors to our bank board,” said Farmers & Merchants Bank President and CEO Brad Chambless. “Our institution has been fortunate to see substantial growth over the past five years. With that growth comes the responsibility of diversifying and enhancing the subject matter expertise of our bank directors.”

“I AM THRILLED TO ANNOUNCE AND WELCOME MS. JOHNSTON, MR. TARKINGTON, AND MR. VANSANDT AS DIRECTORS TO OUR BANK BOARD. OUR INSTITUTION HAS BEEN FORTUNATE TO SEE SUBSTANTIAL GROWTH OVER THE PAST FIVE YEARS. WITH THAT GROWTH COMES THE RESPONSIBILITY OF DIVERSIFYING AND ENHANCING THE SUBJECT MATTER EXPERTISE OF OUR BANK DIRECTORS.” THE ARKANSAS BANKER

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NEWS & MOVES HOME BANCSHARES

NAMES AUDRA FOSTER DIRECTOR OF CORPORATE SOCIAL RESPONSIBILITY

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ome BancShares, Inc. and its wholly-owned subsidiary, Centennial Bank, announced Tuesday ( July 13) the appointment of Audra Foster as Director of Corporate Social Responsibility.

“We are proud to announce our intention to enhance the development of strategic initiatives supporting Centennial Bank’s focus on environmental, social and governance (“ESG”) topics,” said Tracy French, Centennial Bank President and Chief Executive Officer.

“The corporate social responsibility program already

Bryant Bowles Jr. Arvest Bank

Jodi Hopper Arvest Bank

has a solid foundation at Centennial, and I am honored for the opportunity to help the bank expand on what is already in place,” said Foster. “I am looking forward to partnering with both internal and external stakeholders on these important initiatives,” Foster continued.

Foster has been with Centennial Bank for 20 years.

During her tenure with Centennial, she has served in roles including Teller, Senior Trainer, Operations Analyst and most recently, Assistant Director of Deposit Operations.

Ryan Dagley

Signature Bank of Arkansas

Daniel Kelsey FDIC

ARKANSAS FINANCIAL PROFESSIONALS RECEIVE PRESTIGIOUS BANKING DIPLOMA

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he Graduate School of Banking at Colorado (GSBC) is proud to announce the graduation of four Arkansas financial professionals who have completed the school’s state-of-the-art graduate school of banking program.

The graduates are Bryant Bowles Jr., Arvest Bank, Siloam Springs; Ryan Dagley, Signature Bank of Arkansas, Bentonville; Jodi Hopper, Arvest Bank, Berryville; and Daniel Kelsey, FDIC, Little Rock.

Graduates receive their GSBC diplomas upon successfully completing three annual two-week sessions of classroom training on the University of Colorado Boulder campus in Boulder, Colo. The

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WE ARE PROUD TO ANNOUNCE OUR INTENTION TO ENHANCE THE DEVELOPMENT OF STRATEGIC INITIATIVES SUPPORTING CENTENNIAL BANK’S FOCUS ON ENVIRONMENTAL, SOCIAL AND GOVERNANCE (“ESG”) TOPICS.

above individuals were among 141 students honored in a ceremony on July 29, 2021.

GSBC’s curriculum is community banking-focused, delivered by expert faculty which covers four tracks: financial management, general management & technology, leadership & human resources, and lending.

The students also complete six immersive intersession research projects throughout their time in the program.

The program’s capstone course is an in-depth bank management simulation, where students assume the roles of senior management of a commercial bank, involving themselves in the group dynamics and managerial skills of managing a bank in a competitive environment with changing economic conditions.

GSBC’S CURRICULUM IS COMMUNITY BANKINGFOCUSED, DELIVERED BY EXPERT FACULTY WHICH COVERS FOUR TRACKS: FINANCIAL MANAGEMENT, GENERAL MANAGEMENT & TECHNOLOGY, LEADERSHIP & HUMAN RESOURCES, AND LENDING.

SOUTHWESTERN GRADUATE SCHOOL OF BANKING FOUNDATION NAMES JEFF SCHMID AS PRESIDENT AND CEO

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Jeff Schmid

President and CEO

eff Schmid has joined the Southwestern Graduate School of Banking (SWGSB) Foundation, headquartered at SMU’s Cox School of Business, as president and CEO effective Sept. 1. Schmid’s move comes as current President and CEO S. Scott MacDonald, Ph.D., retires from the position after 24 years of service.

“In that time, Scott has helped strengthen ties between SWGSB and SMU Cox,” said Vic Pierson, chairman, president & CEO of Moody National Bank in Galveston and chairman of the SWGSB Board of Trustees. “He has contributed greatly to SWGSB’s role as a trusted educational source for banking education, bank leadership development and bank director training programs. We are grateful to Scott for his leadership even as we look ahead to Jeff taking the helm.”

With nearly 40 years of banking and regulatory experience, Schmid began his career at the Federal Deposit Insurance Corporation (FDIC) in 1981 and remained until 1989. He graduated from the SWGSB summer residence program at SMU Cox in 1990.

“My 35-year association with the Foundation’s schools changed the trajectory of my career,” says Schmid. “I look forward to offering that kind of career-changing experience to future SWGSB students.

The Foundation’s director programs also afford the opportunity to positively influence bank boards and their governance.”

After completing the SWGSB program, Schmid became president and CEO of two closely held banks in the Midwest. In 2007, he led the establishment of Mutual of Omaha Bank, a wholly owned investment of Mutual of Omaha, where he served as chairman and chief executive officer. He built the organization into a national franchise with assets of nearly $10 billion.

Schmid is a longtime member of the Cox School of Business Executive Board. He holds a bachelor’s degree from the University of Nebraska. His involvement with the SWGSB Foundation is long established, including service as past chairman of the SWGSB Foundation Board of Trustees. He has also been a SWGSB faculty member and was Dean for Bankers at SWGSB. The Southwestern Graduate School of Banking Foundation was established in 1957 at Southern Methodist University (SMU) in Dallas and has become one of the top banking educational institutions.

It is a professional school for bank officers, regulators and others holding management positions in the financial services industry.

THE PEOPLES BANK

PURCHASES MAGNOLIA BRANCH FROM BANK OZK

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he Peoples Bank in Magnolia announced it has entered into an agreement for Bank OZK to sell its branch in Magnolia, Arkansas.

Peoples Bank will assume certain deposit liabilities and acquire certain loans, as well as cash, real property, personal property and other fixed assets associated with Bank OZK’s Magnolia branch.

Subject to obtaining the necessary regulatory approvals, the pending sale is expected to close in the

fourth quarter of 2021. Until that time, customers of Bank OZK’s Magnolia branch will continue doing business with Bank OZK as usual and will receive additional information regarding the impact of the sale prior to the closing of the sale.

The Peoples Bank is a locally owned community bank headquartered in Magnolia. It was established in 1910 and operates two banking offices in Magnolia and one in Waldo.

THE PEOPLES BANK IS A LOCALLY OWNED COMMUNITY BANK HEADQUARTERED IN MAGNOLIA. IT WAS ESTABLISHED IN 1910 AND OPERATES TWO BANKING OFFICES IN MAGNOLIA AND ONE IN WALDO.

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