Justin Allen, Latrecia Carroll, Paul Gatling, Dr. Kuan Liu, Susannah Marshall, Megan McGovern, Rob Nichols, Timothy Schenk, Mickey Belle Shields-Manley, Jim Taylor, and Dr. Timothy J. Yeager
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 2023, it is estimated that 9.32% 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.
Insurance Concerns
Rapidly rising insurance premiums are adding stress to businesses, homeowners.
New Rules For Beneficial Ownership
FinCEN issues new guidance.
of
Elections What could be on your ballot in November? Evolution of Passport
A scheme to monitor.
Credit Bureau Triggers
An explanation for those unsolicited calls.
Bank Entry Decline
A Dodd-Frank fallout.
Banking Legal
Updates
Pending litigation could impact the financial system.
Women in Banking
Women bankers convene for annual session.
ABA Goes to D.C. Bankers meet with Cotton, Womack, and Hill.
PRESIDENT’S MESSAGE
Lorrie Trogden | President & CEO | Arkansas Bankers Association
Elections are upon us, the state legislative session starts soon, and regulatory issues abound – what do we do in the face of all that? Advocate, advocate, advocate! We work every day to change “what is” into “what should be.” The “what should be” has a direct impact on our communities and our customers, and we are on the right side of fighting the good fight for them and for our industry.
Let’s start with the state. On April 10th Arkansas will begin its fiscal legislative session. Because it is a fiscal only session, no substantive bills can be voted on without a 2/3rd majority vote of the House and Senate. Does that mean nothing is happening? Short answer, No. We will be monitoring the session for anything that might affect banking or the budget of the State Bank Department. As you know, they are a cash agency funded by your assessments and anything affecting the department typically affects us. In addition, legislators are already contemplating ideas and bills for the 2025 substantive session. It will be here before you know it. I have already been contacted a couple of times about different subject matter being considered.
The southern states around us are also a good precursor to what is likely to head our way in 2025. These are the active issues in other states right now:
• Merchant Category Code (MCC): This did not pass in AR in 2023. As of March 2024, 27 bills are active in addition to 8 that passed.
• ESG: There are 32 active general ESG bills, along with 16 that are fiduciary only, 19 divestment bills, 5 firearm specific bills and 4 fossil fuel specific bills.
• Social Credit Score: There are 17 active credit score bills.
• Payments: There are 7 of these state level interchange bills.
• Crypto and Central Bank Digital Currency: There are 15 active bills in this arena.
As you can see, there is still a hotbed of anti-bank legislation out there and most of it will be heading in our direction. We are being proactive and on the lookout before filing starts for 2025.
Continuing the state-side of things, the ABA was a guest at several legislative committee hearing tables over the last several months. First, Senator Bryan King, Chairman of the Senate Children and Youth committee, asked the State Bank Department and the ABA to testify at a hearing. My focus was on scamming and fraud with examples of what is happening across the industry and its impact on customers. Members were very interested in the educational resources the ABA offers, and a couple of have shared some of our #banksneveraskthat content on their social media. I also accompanied incoming Vice Chairman Jason Tennant to a joint Insurance and Commerce committee meeting, where Jason focused on the effect rising insurance rates and deductibles are having on our customers’ mortgage and escrow accounts. He did a great job, and we are thankful for his participation and his advocacy!
Moving on to federal, we once again descended on the Hill during the Washington Summit in March to visit with our congressional delegation. Advocacy, Advocacy, Advocacy! We focused on several hot topics:
• 1071 – Despite the current injunction (you can read more about that in our legal update article), we advocated for passage of the Small LENDER Act and continued pressure on CFPB oversight. Big thanks to Congressman Hill for his work on LENDER!
• ACRE – We continue to push for the passage of ACRE and are thankful it has the support of our delegation. It is gaining bipartisan support, but once spending bills are passed, I don’t know if anything else will move before elections.
• Credit Unions – The credit unions were on the Hill a week before us and apparently were spreading a false narrative about why they deserve a tax exemption. An Arkansas credit union claimed that CUs are serving rural areas that banks are not. Fact Check: bankers in the room from Eureka Springs quickly pointed out that there were no credit unions in their entire footprint of small towns, and that was also true of other bankers in attendance. Busted!
• Durbin 2.0 – We have been in constant contact with our delegation about this bill since it was introduced and have lobbied hard for our delegation not to join as co-sponsors or allow it to be attached to a must-pass spending bill. The bill is not scheduled for a committee markup, but we cannot take our foot off the gas! Retailers are contacting them regularly and we must do the same!
• Beneficial Ownership Database – As you all know, the rule making and implementation of the database fell flat on its face, causing nothing but customer confusion and blame on banks. A federal judge in Alabama issued an injunction, so there will be more to come here. Our ask was that FinCEN take a step back and delay compliance until there is a chance for further education, implementation processes are worked out, and privacy concerns are addressed.
We will continue our Advocacy, Advocacy, Advocacy efforts to bring home wins for our industry, your customers, and your communities! I also encourage you to participate in campaigns reminding your bankers to vote. Regardless of who they vote for, it is so important to take part in the process. We want people who understand our industry at the table so that we stay off the menu! Thank you for everything that you do, and I look forward to visiting your bank in 2024!
“We have three priorities: Advocacy, Advocacy, Advocacy!”
Lorrie Trogden, President & CEO
ABA OFFICERS
Jim Taylor, Chairman First Security Bancorp, Rogers
Brad Chambless, Chairman-Elect Farmers and Merchants Bank, Stuttgart
Chris Gosnell, Vice Chairman Farmers Bank & Trust Company, Magnolia
Scott Saffold, Treasurer Union Bank & Trust Co., Monticello
Randy Scott, Past Chairman Farmers Bank and Trust, Blytheville
Lorrie Trogden, President & CEO Arkansas Bankers Association, Little Rock
BOARD OF DIRECTORS
Heather Albright, Little Rock
Duncan Bellingrath, Hot Springs
Asa Cottrell, Little Rock
Joe Dunn, Little Rock
Robert Husong, Rogers
Katherine Mitchell, White Hall
Brandi Ray, Malvern
Gabe Roberts, Jonesboro
Lori Ross, Arkadelphia
Joe Ruddell, Rogers
Loren Shackelford, Fayetteville
Jason Tennant, Eureka Springs
Rob S. Tiffee, Little Rock
Scott Walker, El Dorado
Jay Wisener, Little Rock
Corporate Transparency Act Beneficial for Banks
The Corporate Transparency Act (CTA) represents a significant legislative milestone aimed at promoting corporate transparency, combating illicit financial activities, and enhancing accountability in the financial system. This article provides a comprehensive analysis of the
CTA and its implications for banks, exploring key provisions, compliance challenges, and opportunities for fostering a more transparent and secure financial environment.
In an era marked by increasing scrutiny of corporate structures and financial transactions, the Corporate Transparency Act (CTA) stands as a landmark piece of legislation designed to address longstanding concerns regarding the misuse of anonymous shell companies for illicit purposes. Effective in 2024, the CTA represents a bipartisan effort to enhance transparency
and accountability in corporate ownership, with profound implications for banks and financial institutions tasked with ensuring compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
The CTA mandates the establishment of a beneficial ownership registry, requiring corporations and limited liability companies (LLCs) to disclose information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Beneficial owners are individuals who directly or
indirectly own or control 25% or more of the ownership interests in the entity or exercise substantial control over its operations.
The implementation of the CTA has significant implications for banks, particularly in the realm of customer due diligence (CDD) and AML compliance. Banks are now required to verify the identity of beneficial owners of corporate customers and maintain accurate records of such information. This entails conducting thorough background checks and risk assessments to ensure compliance with regulatory requirements and mitigate the risk of facilitating illicit financial activities. However, banks cannot access the CTA database without the customer’s consent.
While the CTA represents a critical step towards enhancing transparency and
“Effective in 2024, the CTA represents a bipartisan effort to enhance transparency and accountability in corporate ownership, with profound implications for banks and financial institutions tasked with ensuring compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.”
Jim Taylor | Chairman | Arkansas Bankers Association
“The CTA mandates the establishment of a beneficial ownership registry, requiring corporations and limited liability companies (LLCs) to disclose information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).”
combating financial crime, its implementation poses several challenges for banks. Identifying and verifying beneficial owners can be a complex and resource-intensive process, particularly for entities with intricate ownership structures or offshore holdings. Banks must also navigate privacy concerns and data protection regulations while adhering to strict AML/CFT requirements, striking a delicate balance between transparency and customer confidentiality.
Despite the challenges posed by the CTA, it also presents opportunities for collaboration and innovation within the banking industry. Banks can leverage technology and data analytics to streamline the customer onboarding process, enhance risk assessment capabilities, and improve compliance efficiency. Collaborative initiatives between banks, regulators, and law enforcement agencies can facilitate information sharing and strengthen the effectiveness of AML/CFT efforts, ultimately promoting a more transparent and secure financial ecosystem.
By promoting greater transparency and accountability in corporate ownership structures, the CTA serves as a critical tool in the fight against money laundering, terrorist financing, and other illicit financial
activities. Banks play a pivotal role in this endeavor, serving as gatekeepers of the financial system and frontline defenders against financial crime. Through robust compliance measures, proactive risk management, and ongoing vigilance, banks can uphold the integrity of the financial system and safeguard against abuses of corporate entities for illicit purposes.
It is a common misconception that banks were the impetus for the creation of the CTA, I can assure you we were not. However, we could be the benefactor of the beneficial ownership registry database. The Corporate Transparency Act represents a significant step towards fostering greater transparency, accountability, and integrity in the financial system. While its implementation poses challenges for banks, it also presents opportunities for collaboration, innovation, and strengthening AML/ CFT efforts. By embracing the principles of transparency and accountability, banks can fulfill their role as responsible stewards of the financial system and contribute to a safer and more secure environment for businesses, consumers, and society as a whole. I encourage you to seek further knowledge of the CTA to ensure proper compliance with the act.
Calendar of Events
- JUNE 2024
April
15 19
MONDAY 8 A.M. – FRIDAY 5 P.M.
GSB HUMAN RESOURCE MANAGEMENT SCHOOL
From recruitment to selection, performance management to career development, the human resource function has a direct impact on a financial institution’s productivity and bottomline results. That’s why GSB offers the Human Resource Management School, a respected one-week school that provides the foundation for new or veteran human resource professionals to tie together important issues in human resource management with an understanding of the business of banking. A scholarship is offered through the ABA -- please contact Kami at kami.coleman@arkbankers.org for an application!
LOCATION: University of Wisconsin – Madison
22
MONDAY 1:30 P.M. – 3 P.M.
CASH FLOW ANALYSIS
In this webinar, you'll learn the fundamentals of constructing and analyzing direct and indirect cash flow statements in order to enhance the quality and effectiveness of the entire credit decision process.
INSTRUCTOR: Tom Carlin
LOCATION: Virtual
22 26
MONDAY 8 A.M. – FRIDAY 5 P.M.
BANK TECHNOLOGY MANAGEMENT SCHOOL
Don’t miss this innovative school that’s designed by, and especially for, IT professionals and information security officers in the financial industry. This state-of-the-art program will broaden your understanding of the business of banking including key drivers of bank profitability, along with an in depth and interactive study of information technology management. The school will share practical insights for disaster response and business continuity, IT exam preparation, technology risk assessment, vendor management, IT strategic planning, project management and more. Designed to help improve your productivity and value at your bank, you’ll also establish a network of professional colleagues with whom to collaborate and exchange ideas for years to come. Apply today to take advantage of this opportunity to learn from experts in the banking industry about today’s key issues in information technology management and how those critical issues relate to the bank’s goals and bottom line.
LOCATION: University of Wisconsin – Madison
23 24
TUESDAY 9 A.M. –WEDNESDAY 4 P.M.
2024 COMPLIANCE SCHOOL
Join us and sharpen your compliance expertise to develop a basic foundation to maintain an effective compliance program! This school is intended for those with less than five years of experience in the compliance field, or for those wanting knowledge in overall compliance rules and requirements. These sessions will provide an overview of concentration in the consumer compliance areas, including deposit/ operations, lending, and overall strategies for an effective Compliance Management System (CMS).
INSTRUCTOR: Shaun Harms
LOCATION: Arkansas Bankers Association, Little Rock
25
THURSDAY 9 A.M. – 4 P.M.
IRAS:
ADVANCED ISSUES
In this session, we’ll get into the nitty gritty of the new distribution regulations, exploring—in depth—how these new rules affect both IRA owners and IRA beneficiaries. After thoroughly dissecting the new rules and their impact on IRA owners and beneficiaries, we’ll discuss concrete steps your financial organization can take to help ensure ongoing compliance, while also providing top-notch customer service.
INSTRUCTOR: Johnathan Yahn
LOCATION: Arkansas Bankers Association, Little Rock
29
MONDAY 10 A.M. – 12 P.M.
THIRD-PARTY MANAGEMENT
ESSENTIALS
Financial institutions have had specific vendor management guidance to follow for decades. Each primary financial institution regulatory body has issued specific requirements for working with third parties. To avoid costly fines, reputation risk, and consumer harm, vendor management must be embedded in all lines of business. Siloed approaches to vendor management are outdated. This program provides a thorough review of the basic requirements and guidance for sustaining a compliant and risk-based program.
INSTRUCTOR: Kimberly Boatwright, CAMS, CRCM
LOCATION: Virtual
TUESDAY 9 A.M. – 4 P.M. 2024 CONSUMER LENDING
SCHOOL
This informative, intensive three-day school is designed to educate and prepare consumer lenders. This educational program provides essential knowledge and skills and establishes a network of lenders for continued support by sharing experiences with fellow lending professionals. Newly appointed loan officers and bankers in the credit administration and loan processing areas will especially benefit.
INSTRUCTOR: David Kemp
LOCATION: Arkansas Bankers Association, Little Rock
May
30 03 30
TUESDAY
This webinar series will encompass opening personal, business, trust, minor, power of attorney, estate accounts, and much more! Although not customized to specific state law, it will answer the more complicated and challenging questions customers and employees ask. Whether you are new to new accounts or have decades of experience, you will gain more confidence and be prepared to handle even the most complicated scenario!
INSTRUCTOR: Matthew Dickson LOCATION: Virtual
FRIDAY 10 A.M. – 12 P.M.
CALL REPORT FOR BEGINNERS5 PART SERIES
This course is designed for bankers new to Call Report preparation, as well as those seeking a refresher course. This webinar series will primarily follow the structure of the Call Report, progressing through the schedules in order. However, to enhance the learning experience and better convey related reporting content, certain schedules will be grouped together within the curriculum. This approach ensures that attendees can grasp both the individual schedules and their interconnections, facilitating a comprehensive understanding of the reporting process.
INSTRUCTOR: Andrea Lambert
LOCATION: Virtual
AT A GLANCE
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.
Against a Rising Tide of Regulation, BANKS MUST ROW TOGETHER
Rob Nichols | President and CEO | American Bankers Association
Whenever a new election cycle comes along, it’s not uncommon to hear pundits make mention of “red waves” or “blue waves,” denoting potential power swings in Congress. But as bankers contemplate the future of our country and the policy environment that will shape the future of our industry, there’s another wave that we need to talk about: a tsunami of complex regulation that’s hitting the banking sector as we speak.
To be sure, the tide turned quickly: last year’s turbulent spring ignited a rulemaking frenzy at the banking agencies. Suddenly, new proposals sprang up to increase bank capital levels, impose a new long-term debt requirement and make the resolution planning process more complex.
Simultaneously, the CFPB imposed long-awaited small business reporting requirements under Section 1071 of the Dodd-Frank Act—which went far above and beyond what was outlined in the statute. The Federal Reserve issued a proposal to cap interchange fees under Regulation II, and the FDIC is now pursuing significant changes to its corporate governance guidelines.
Against all that, the agencies finalized a long-awaited update to the Community Reinvestment Act framework—a staggeringly complex, 1,500-page final rule that creates significant new requirements that have the potential to fundamentally alter banks’ business strategies.
Meanwhile, in Congress, banks are facing the resurgent threat of the so-called “Credit Card Competition Act,” which would apply Durbin Amendment-like provisions to credit cards—the equivalent of lawmakers taking money from banks and putting it into the cash registers of mega retailers.
“We need to make sure policymakers in Washington ... understand that regulatory burden has a realworld cost, not just for banks, but for consumers, small businesses and the American economy... If you’re reading this, I urge you to help us tell that story.”
Taken together, these policies place a tremendous cost and compliance burden on banks of all sizes—at a time when they are already facing a tough operating environment due to a protracted period of high interest rates and ongoing geopolitical tensions.
These policies will also have devastating effects for consumers. Banking is, after all, a business—and in order for banks to offer the full range of financial products and services to meet the needs of communities, they need to be profitable, and have an operating environment that supports growth.
The current regulatory landscape will do the opposite. Banks that are already considered well-capitalized by regulators’ own admission will be forced to hold even more capital in reserve—which means less capital will be available to lend to the local small business looking to expand, or to the young family looking to buy their first home. Simultaneously, changes to the fee income streams upon which banks have long depended could spell the end of free or low-cost checking products, and popular rewards programs that consumers value.
What’s perhaps most concerning, however, is the fact that regulators don’t seem to understand the full impact of their actions. As we observed with the Reg II rulemaking and the so-called “Basel III endgame”
proposal, regulators are failing to adequately assess the potential costs of the individual regulations on banks and consumers—let alone contemplate what the cumulative impact of all these rules would be.
ABA is sounding the alarm. We need to make sure policymakers in Washington— from members of the administration to lawmakers in Congress to the regulators holding the rule-writing pens—understand that regulatory burden has a real-world cost, not just for banks, but for consumers, small businesses and the American economy.
If you’re reading this, I urge you to help us tell that story. Join our Bank Ambassador program to rekindle relationships with your congressional delegation and help educate policymakers about banking. Stay informed and send a letter about an issue that will affect your bank through ABA’s grassroots platform, SecureAmericanOpportunity.com. Make a plan to come to the nation’s capital in March for the ABA Washington Summit, and tap a colleague or two to come along.
The sobering reality for banks right now is that rougher seas are likely ahead—but our best hope is to row together.
Email Rob at nichols@aba.com.
To learn more about the Bank Ambassador program, email ABA’s Laura Lily at llily@aba.com.
Director Training Part 2 –Education is the Key
Susannah Marshall | Commissioner | Arkansas State Bank Department
In my previous article, I briefly touched on the topic of director training. In the past few months, there have been several issues that have arisen during both routine examinations and outside of the on-site examination process which align with the topic of director training, and I would like to use this issue to expand on the following topics. Although one session of director training, within the first twelve months of Board membership, is all that is required by the Arkansas State Bank Department, I can’t express enough how important it is to evaluate opportunities for further training for Board members, both internal and external members.
The Directorate is tasked with significant responsibility, and they accept enormous responsibility and liability including financial, fiduciary and legal risk in exchange for their service to the institution and our industry. Although, it is important to note that the vast majority of time, Board members execute their duties and serve the institution with normal and routine processes and oversight. However, circumstances and situations do arise where the institution and the Board face considerable challenges. One key to success for both the institution and the Directorate, is the execution of sound principles, knowledge of regulations and implementation of appropriate corrective measures when necessary.
With the sheer volume of both state and federal rules and regulations, as well as the basic tenets of Capital Adequacy, Asset Quality, Earnings Performance, Liquidity and Funds Management and Sensitivity to Market Risk, it can be overwhelming for any director to feel knowledgeable and prepared to appropriately lead and direct the affairs of the institution. But the following major rules and regulations warrant an increased understanding and awareness in order to diminish some of the risk to individual Board members and the bank itself. As I previously stated, our team has engaged in many recent discussions around these supervisory requirements.
Each Board member and each management team should possess a strong understanding of both Regulation O and Regulation W. Specifically, these two regulations point to the limitations and requirements which Board members must adhere to and can present significant risk if the institution is found in violation of either federal regulation. Also, we are seeing an increase in violations or supervisory findings pertaining to the Bank Secrecy Act. The breadth and complexity of the Bank Secrecy Act requires a much deeper understanding hence the annual training requirements for this regulation. The impact of failing to maintain a strong Bank Secrecy Act program can lead to the highest level of regulatory oversight and potential for financial obligations and penalties against the bank. Further, we continue to work with management teams to ensure proper oversight and application of the Legal Lending Limit. Although most banks rarely have issues regarding compliance with the Legal Lending Limit, violations can
create issues both individually and collectively for the Directorate hence requiring a high level of diligence and oversight.
Although a bank’s management team is charged with leading the institution on a daily basis and implementing strong compliance programs for the adoption and adherence for all applicable laws and regulations, it is of utmost importance that Board members maintain an individual understanding and competency for certain regulations. I fully appreciate that this objective can be especially challenging for external directors. As we are starting a new year and Board members are being selected and reappointed, I encourage each bank to consider an assessment of your Board’s training and consider if now is the time to identify ways to enhance or supplement the training and education of your Board. If the assessment proves that the Board has not had an opportunity to be exposed to external training or industry presentations or speakers in the past few years, perhaps consider options to provide or implement even a small session for the Directorate of the bank.
“Each Board member and each management team should possess a strong understanding of both Regulation O and Regulation W.”
Many director education programs exist. Whether it is an offering by one of the many Graduate Banking Schools, or the Arkansas Bankers Association or American Bankers Association, an in-house session or a consultant facilitated program or even the upcoming annual Day with the Commissioner event held in conjunction with the Arkansas Bankers Association Annual Convention, I propose you consider taking advantage of the multitude of resources to provide your Board members with a new opportunity for training and support. I bet they would be interested in furthering their knowledge and awareness and enhancing their ability to better serve the institution, our industry, and their communities!
THE FACES OF ARKANSAS BANKING with Dwayne Dickey
SVP/IT Director
First Community Bank, Batesville, AR
Dwayne Dickey is the senior vice president and information technology director at First Community Bank. This year marks his 35th year in banking. Dickey, who is married to Suzanne, has two children, Kyler and Brendan. Outside of work, he enjoys running and spending time with his family.
In his role, Dickey oversees all information technology operations as well as the management, strategy, and execution of the IT infrastructure for the bank. He also oversees technical projects and directs the effective delivery of networks, development, and disaster recovery systems and processes. Additionally, he organized an IT in Banking group.
WHAT’S THE DIFFERENCE BETWEEN A BOSS AND A LEADER?
A boss is typically focused on getting the job done, often through instruction and oversight. A leader, on the other hand, inspires and guides their team by setting a vision, empowering them, and fostering a sense of ownership and pride in the work. Leaders often prioritize the growth and development of their team members, creating a more engaged and motivated workforce.
WHY IS IT IMPORTANT FOR THE YOUNGER GENERATION OF BANKERS TO GET INVOLVED IN THE GOINGS ON IN OUR INDUSTRY?
It's crucial for the younger generation of bankers to stay involved and informed about the industry for several reasons. Firstly, staying abreast of the latest developments and trends in banking ensures that they remain competitive and relevant in their careers. This includes staying informed about changes in regulations, technology, and cybersecurity.
Secondly, the banking industry is rapidly evolving, especially with the emergence of new technologies like AI. Understanding these technologies and how they can be leveraged in banking operations is essential for future success. Additionally, as cyber threats become
“Leaders
often prioritize the growth and development of their team members, creating a more engaged and motivated workforce.”
more sophisticated, staying informed about cybersecurity is crucial to protect both the bank and its customers.
Finally, getting involved in the industry allows younger bankers to network with professionals, exchange ideas, and gain insights from experienced leaders. This not only helps them stay informed but also provides opportunities for career advancement and personal growth.
WHAT IS THE BEST ADVICE YOU EVER RECEIVED?
One of the best pieces of advice I've received is from Karl Kemp, the former IT Director for First Community Bank. He once said, "Don't procrastinate; the situation almost never improves by waiting." This advice has stuck with me because it reminds me of the importance of taking action and addressing issues promptly. Waiting often only allows problems to worsen, so it's crucial to tackle challenges head-on and not delay in finding solutions.
WHAT SUBJECT COULD YOU GIVE A ONE-HOUR IMPROMPTU LECTURE ON?
I could easily talk for an hour about running! I've been at it since 2006, and as I always say, "The only thing that runners like more than running is talking about running." In my impromptu lecture, I'd cover everything from establishing solid running routines to helping beginners get started on the right foot. I'd dive into the joy and benefits of running, share tips on staying motivated, and discuss the mental and physical aspects of the sport. It's a passion of mine, and I love sharing that enthusiasm with others!
Mastering Hard Conversations
Latrecia Carroll | President | Emerging Leaders Section
Let’s face it, tackling hard conversations is not for the faint of heart. Experts agree that we are wired to avoid confrontation. I will be the first to admit that I often dread confrontation, but it is crucial for success as a leader. Even with a rockstar team, difficult conversations are sometimes necessary. You might hesitate to approach because you’re unsure of the employee’s reaction. While your fear is valid, avoiding them sends a message that current actions are acceptable. These challenging conversations also prevent issues from growing and affecting other team members. There are approaches we can use to make hard conversations a little easier.
If you need to address a challenging issue, check your mental state. Don’t jump headfirst into the height of emotions; it only makes issues worse. Spend time sorting through your feelings, then pushing them aside. Ensure your concerns don’t arise from an exhaustive mental state.
Prepare yourself for the conversation; the more you prepare, the better it should go. Write down your concerns and propose solutions. Vent about the issue to a trusted friend or colleague, sharing the good, bad, and ugly. Take feedback to help prepare your words. Talking through it with others allows you to see an objective perspective, turning it into a compassionate and connecting conversation instead of accusations and defensiveness.
Be open-minded to different points of view during difficult conversations. Try to understand the other person’s perspective by imagining yourself in their shoes. Walk through the experience through their eyes, attempting to understand their emotions, triggers, and desires. This triggers empathy and self-awareness. At the same time, don’t let the issues fester. Take heart and go. It might not be pleasant, but the goal is to deliver in an honest, fair way.
When you decide to carry out the conversation, make room for the person to talk. Always be willing to listen more than you talk. The worst thing you can do is speak over them
and refuse to hear them out. People want to know they’re being heard. You don’t have to agree with them, but at least acknowledge their point of view. There should be a sense of respect in your tone. Be specific with the issue and clarify that it’s not with the person, but a certain behavior.
The conclusion to any hard conversation is follow-up. Set ground rules for moving forward. Make your intentions clear and get acknowledgment from the other person. Offer resources that could help them improve or correct the issue at hand. Always recognize their efforts to make progress. Emphasize your willingness to help them succeed and reach their goals. Failure to follow up could cause the behavior to creep back over time.
Difficult conversations promote positive change and strengthen team culture. Remember, everyone is battling their own problems. People aren’t always aware of the impact their behavior has on the entire team or organization. Take a deep breath, prepare, and approach the conversation with empathy to find a resolution. Always look at the bigger picture.
“Difficult conversations promote positive change and strengthen team culture... Take a deep breath, prepare, and approach the conversation with empathy to find a resolution.”
ELS EXECUTIVE COMMITTEE
LATRECIA CARROLL PRESIDENT
STONE BANK
Little Rock
Group 1
AMBER MURPHY SECRETARY/ TREASURER
FIRST FINANCIAL BANK
El Dorado
Group 3
ELS COUNCIL MEMBERS
IAN BRYAN VICE PRESIDENT
SIMMONS BANK
Russellville
Group 2
BRITT BURRIS
CONNECT BANK
Star City
Group 3
CHANCE ROBBINS
CS BANK
Eureka Springs
Group 2
JAKE EARNEY
CHAMBERS BANK
Fayetteville
Group 2
GABE ROBERTS
FIRST COMMUNITY BANK
Jonesboro
Group 1
BRITTANY HELMS
SIMMONS BANK
Little Rock
Group 1
RHETT SHEPARD
CENTENNIAL BANK
Little Rock
Group 1
BRANDON KNOWLTON
SOUTHERN BANCORP
Arkadelphia
Group 3
SARAH LYNCH
GENERATIONS BANK
Fayetteville
Group 2
LAUREN STATON
RELYANCE BANK
White Hall
Group 3
EMERGING LEADERS
minutes with...
FIVE Brittany Little
Q.
A.
VE
Market President | Today’s Bank, Huntsville, AR
HOW DID YOU GET STARTED IN BANKING?
I have always loved small businesses, how they work, and how your community benefits from them. I knew I wanted to do something with small businesses and fell in love with banking while working at the bank in college. Without your community bank, you have no one supporting your community and small businesses.
Q. WHAT ADVICE DO YOU HAVE FOR YOUNG BANKERS STARTING THEIR CAREERS?
A.
Never be afraid to learn something. Dig in and learn all you can about a topic. I wouldn’t be where I was today if I hadn’t dug in and tried to learn at an early age. When I first started, the bank was going through key management changes, a core conversion, and making some other major software changes, and I was able to be there on the ground floor learning the new products. Because I was able to learn a lot about how they all worked together, it served me in my various roles throughout my career more than I could ever imagine. Whether it be a trick on our banking system, or where to find some information, looking at a new report for trends, or just learning what something means, everyone enjoys knowing more information about what they work with daily. I have been fortunate to have some great teachers during my career and hope to pass on the knowledge. Knowledge is power, and when you are able to do your job better then we can serve our customers better with the more we all know.
Q. WHAT IS THE MOST INTERESTING THING ABOUT WORKING AT A SMALL BANK?
A. I love working at a small community bank. I love that over the years the bank has grown and I have grown with it. Every single day is different and I didn’t get pigeonholed working on the same thing each day. I was able to grow in my knowledge. Every day presents itself with new challenges, and there isn’t a lot of red tape on making change happen when things aren’t working. Don’t be afraid to change or look at how things are being done, and how they can be better. Things are always evolving, and sometimes there could be better ways to do it.
Q. HOW HAS YOUR LIFE EXPERIENCE MADE YOU THE LEADER YOU ARE TODAY?
A.
Parenting children has helped my leadership. We have a set of twin girls, Ava and Emma (age 8), and Barrett (age 3). By having the girls and raising them in the exact same environment, it has helped me realize not everyone learns the same under the same conditions. They are as different as day and night. It also has helped me focus. I know that my time is valuable. I only get so many waking hours with my family and at work. When I get home at night, and we are doing dinner as a family, baths, and homework, I try my best to be focused on them. After we get them to bed, and we get the house reset for another day, then I will focus on my work. My kids know I love my job, but I always want them to know they come first.
“ Never be afraid to learn something. Dig in and learn all you can about a topic.”
Q. WHERE WOULD YOU LIKE TO TRAVEL?
A. Italy is definitely on my bucket list. I hope in the next couple of years, my husband and I can go over there and stay for a couple of weeks wandering the countryside. I really would like to avoid touristy places and spend time on the off-beat path discovering all the gems!
Fall Candidate ELECTIONS SET
But Still Waiting on Issue Campaigns
by Roby Brock
While the presidential election will suck much of the political oxygen out of the room in 2024, Arkansas’ November ballot will be unusually lower profile.
Arkansas won’t have a governor or U.S. Senate race this cycle, but we will have four contested Congressional elections.
In Arkansas’ 1st Congressional District, U.S. Rep. Rick Crawford, R-Jonesboro, will face Democrat Rodney Govens, a 40year year old Operation Iraqi Freedom veteran from Cabot, and Libertarian Steve Parsons in the November general election.
U.S. Rep. French Hill, R-Little Rock, will square off against Democrat Marcus Jones, a retired U.S. Army Lt. Col., in the general election for the 2nd Congressional District job.
In the 3rd Congressional District, U.S. Rep. Steve Womack, faces Democrat Caitlin Draper in the general election. Draper is a licensed clinical social worker (LCSW), small business owner and community advocate. The Libertarian Party nominated Bobby Wilson in the Third District.
U.S. Rep. Bruce Westerman, R-Hot Springs, will have two general election opponents in the 4th Congressional District race. Democrat Risie Howard, a lawyer from Pine Bluff and daughter of former U.S. District Court Judge George Howard Jr., and Independent John White, who ran and lost as a Democrat in the 2022 election, filed Tuesday to enter the race.
There will also be the run-off election for Arkansas Supreme Court’s Chief Justice position between Justice Karen Baker and Justice Rhonda Wood. Whoever loses the race, will still serve on
the state’s high court. Gov. Sarah Sanders will get to appoint a replacement for the vacancy that will be created by the winner.
In November, Arkansas will see a rare off-year special election for Treasurer of State due to the untimely death of former Treasurer Mark Lowery in 2023. The special election this year will be to fill the remaining two years of the four-year term. Republican Secretary of State John Thurston, Democrat John Pagan, and Libertarian Dr. Michael Pakko are all seeking the treasurer’s post.
Of course, local races for legislature, county and municipal seats will also draw attention. For bankers, electing state representatives and senators who understand financial and banking issues will be key.
What may be the most high-profile elections this fall will center around ballot issues, assuming some of the potential amendments and acts qualify and stay on the ballot. There are seven proposals that must gather anywhere from 72,000 (initiated acts) to 93,000 (constitutional amendments) valid voter signatures to qualify. After that, they must be certified by the Secretary of State’s office and survive probable legal challenges. If all of those thresholds are met, then voters will get a chance to cast ballots on them this Fall.
The General Assembly only referred one proposal to voters, and it simply allows lottery scholarship money to be used for vocational and technical school scholarships. It will be known as Issue 1.
The rest must overcome their largest hurdle: your signature. In the coming weeks, you’ll be asked to sign a petition when you come out of the grocery store, attend a Spring festival, or any other gathering such as a reunion, concert, or baseball game.
To help you decide now if you want to have a chance to vote for any of these measures, here is a handy overview of each one of the proposals that has garnered approval by the Attorney General to seek signatures to qualify.
AN ACT TO EXEMPT FEMININE HYGIENE PRODUCTS AND DIAPERS FROM SALES AND USE TAX
This one does what it says. It would eliminate the sales tax on items like tampons as well as diapers. The thought originally was feminine hygiene products are an extra sales tax burden on women, not men. The diaper clause was added to broaden its appeal to help younger families who are in their child-bearing years and could use the tax break.
ABSENTEE VOTING AMENDMENT OF 2024
Supporters of this proposal claim there needs to be more oversight and restrictions for the absentee voter process. It sets a time and procedures for obtaining a ballot; spells out rules for who can qualify to obtain a ballot; and sets forth the process for counting
those ballots as well as stipulates “elections cannot be conducted in this state using an internet, Bluetooth, or wireless connection.”
ARKANSAS MEDICAL MARIJUANA AMENDMENT OF 2024
This measure is supported by the medical marijuana industry, which contends there are improvements that need to be made to the constitutional amendment passed in 2016. It allows for telemedicine assessments; extends registry cards from one year to three years; broadens the requirements for a "qualifying medical condition"; and allows qualifying patients or caregivers at least 21 years old to keep and to plant marijuana plants in limited quantities and sizes at their domicile. The main reason for the last provision, according to supporters, is to help provide medical marijuana to those who must travel a great distance to a retail store.
ARKANSAS EDUCATIONAL RIGHTS AMENDMENT OF 2024
The proposed amendment would require private schools that receive local and state funds to comply with state academic and accreditation standards, including student and school assessments. Failure to do so would result in a loss of state funds. The amendment also says the state will provide universal access to early childhood education from age 3 until a student qualifies for kindergarten; universal access to afterschool and summer programs; services for students with disabilities; and assistance to children within 200% of the federal poverty line to deal with circumstances that contribute to poor learning outcomes.
ARKANSAS GOVERNMENT DISCLOSURE AMENDMENT (AND ACT) OF 2024
This proposal is a double-feature. Sprouted from the controversy of last year’s special session to restrict the state’s Freedom of Information Act (FOIA), the bipartisan group supporting this amendment change want to enshrine FOIA into the constitution. They are also offering a complimentary initiated act with details normally enacted by legislators. The amendment defines "government transparency," and the act goes further in prescribing penalties for bad actors who knowingly violate the FOIA. It also creates a state commission for records requests.
ARKANSAS HISTORIC OR SPECIAL INTEREST VEHICLE ACT OF 2024
Last, but not least, a proposal has qualified to collect signatures to amend the law at which certain vehicles can be registered as historic or special interest. Current law puts that historic registration for vehicles that are 45 years or older, but this initiated act would lower the minimum age requirement of the vehicle to 25 years.
To summarize, these potential changes to the Constitution and state law are citizen-led initiatives. Arkansas is one of only 15 states with this type of referendum process where a group of citizens can propose laws. The Secretary of State will make a determination on the validity of the signatures in late July, so it won’t be until this Summer before the final issues are determined.
There
are seven proposals that must gather anywhere from 72,000 (initiated acts) to 93,000 (constitutional amendments) valid voter signatures to qualify.
According to the state’s top banking official, the uncertain interest rate environment is the most significant conversation topic entering the year.
Marshall said banks with strong mortgage divisions bore the brunt of the interest rate volatility in 2023 and will remain impacted until a downward movement emerges.
“I don’t want to attempt to predict what will happen with interest rates in 2024 or the timeframe of any potential rate decreases,” she said. “Regardless of whether we will see any additional increases or rates remain flat for the foreseeable future, I believe any potential declines could be further out in 2024.”
82 FEDERALLY INSURED LENDERS DOING BUSINESS IN ARKANSAS HAD A CUMULATIVE NET INCOME OF
THE BANKS GREW THEIR COMBINED ASSETS ROBUSTLY TO
THROUGH THE THIRD QUARTER OF 2023, UP 7.3% YEAR-OVER-YEAR. $1.49 BILLION $165.6 BILLION FROM THE PREVIOUS YEAR. UP 4.1%
Marshall and other Arkansas banking leaders offered various thoughts on the industry entering 2024. According to the latest data from the Federal Deposit Insurance Corp. (FDIC), 82 federally insured lenders doing business in Arkansas had a cumulative net income of $1.49 billion through the third quarter of 2023, up 4.1% from the previous year. The banks grew their combined assets robustly to $165.6 billion, up 7.3% year-over-year. Loan growth was even stronger at 13.8%. Construction loans accounted for a third of that growth, reflecting the vibrant economy.
Tim Yeager expects banks to remain strong — Arkansas’ average return on assets (ROA) of 1.23% is well above the benchmark ratio of 1% — but they are unlikely to match their 2023 performance.
“The lagged effect from high interest rates will lead to slower loan growth, an increase in problem loans, and a shortage of core [stable] deposits,” said Yeager, a finance professor who holds the Arkansas Bankers Association Chair in Banking at the University of Arkansas. His responsibilities include teaching, research and outreach to Arkansas bankers. “Loan demand will slow as businesses and consumers adjust to higher interest rates. In addition, borrowers will struggle to repay the higher interest payments on their debts, leading to more problem loans.”
Like many analysts, Yeager said he expects the Federal Reserve to lower interest rates in the coming months, which will somewhat reduce the pressure on loan demand and funding costs. He said Arkansas bankers are most concerned about a longer-term issue: the ability to hire and maintain qualified workers. He noted that many top students in finance want careers in investment banking, primarily because they think they can make more money on Wall Street.
That might be true, but he tries to explain that there are other advantages of working for a bank.
“We need to get the message across that this is a soul-fulfilling career,” Yeager said. “You’re going to do well, but will you be a millionaire or a billionaire? It’s less likely. But you will have a much more balanced, satisfactory life by doing this.”
According to the American Bankers Association, Arkansas banks employ around 16,000 people at over 1,000 offices and branch locations and have around 5 million customers.
‘ARTIFICIAL’
ECONOMY
Simmons First National Corp. (Simmons Bank) of Pine Bluff is one of the state’s largest banks, with $27.5 billion in assets. It’s one of four Arkansas-based lenders with assets greater than $21 billion at the end of last
year’s third quarter. Bank OZK of Little Rock ($32.7 billion), Arvest Bank of Fayetteville ($27.3 billion) and Centennial Bank of Conway ($21.8 billion) were the others.
George Makris Jr. is the bank’s president and CEO. He said that after a decade marked by growth through acquisition, Simmons Bank is focused on organic growth and efficiency in 2024.
“We acquired 13 banks [in five states] in the past 10 years, which has given us access to some of the best markets,” he said. “We are improving our delivery channels and standardizing many internal functions. That combination should produce favorable financial results leading to capital growth and additional capacity to offer to our customers.”
Makris said the uncertainty around interest rates coupled with government spending and its upward pressure on inflation makes for an “artificial” economy, and that environment will trickle down to consumers.
“Banks are in the risk management business and will shift as much of the risk to the borrower as possible under uncertain times, which will restrict credit access,” he said. “That is more severe for the least credit-worthy borrowers. Loan funding costs and the cost of capital are also negative drivers of access to credit. That said, access to credit is still there for solid projects. Speculative projects will sit on the sidelines.”
ARKANSAS BANKERS ARE MOST CONCERNED ABOUT A LONGER-TERM ISSUE: THE ABILITY TO HIRE AND MAINTAIN QUALIFIED WORKERS.
“We need to get the message across that this is a soul-fulfilling career.”
Makris joked that his crystal ball has a crack in it, but he predicted that if inflation remains steady for the first half of the year – the current U.S. inflation rate is 3.4% for the 12-month period leading up to December 2023, according to the Bureau of Labor Statistics – a modest rate reduction could come in late 2024.
“However, this is an election year, and whether we like it or not, politics plays a role in many governmental decisions,” he said.
Makris also offered an opinion on artificial intelligence (AI) in banking.
“Banks are certainly aware of the proliferation of AI discussion,” he said. “That has driven much of the buzz for tech stocks.
However, I believe we need to be very cautious and deliberate in advancing AI. It will be used for nefarious purposes well before we have maturity and risk protocols to mitigate bad actors.
“The other element not discussed much is who is teaching AI to deploy its logic. Banks have been using variations of AI to determine probability, relationships and other integrated data sets.”
Marshall also alluded to the increasing threat landscape regarding cyber risks and their impact on the industry.
“This increasing risk also translates into increased costs and pressure on resources,” she said. “Unfortunately, many comments I
have received lately center around bankers’ concerns about the increases in fraud attacks on their customers and the impact it is having on the industry.”
“The rate environment is posing headwinds for many institutions, but tailwinds for others,” said Susannah Marshall, Arkansas State Bank Department commissioner. “Especially those that have structured their balance sheets to be in an asset sensitive position and to take advantage of repricing assets at higher interest rates.”
Editor’s note: This article appears courtesy of Talk Business & Politics as part of its "State of the State" series.
LAWMAKERS & INDUSTRY OFFICIALS CONCERNED ABOUT
INSURANCE
Affordability Availability &
by Roby Brock
Rapidly rising premiums and reliable carriers to issue insurance are of growing concern to Arkansas lawmakers, bankers, industry officials, business owners and consumers of all walks of life.
At a March legislative hearing at the Arkansas state capitol, legislators quizzed the state’s Insurance Commissioner as well as national and state insurance representatives, and CS Bank President and Chief Lending Officer Jason Tennant.
Describing current insurance conditions as a “hard market,” Arkansas Insurance Commissioner Alan McClain told lawmakers that rising premiums and carrier reliability is a national problem.
“IT REALLY HASN’T AFFECTED THE MARKET TOO BADLY YET BECAUSE IT’S PRETTY NEW, BUT IT’S A HEADWIND THAT I THINK HAS GOT OUR INDUSTRY VERY CONCERNED AND I THINK IT’S SOMETHING THAT’S GOING TO BE IMPACTFUL COMING DOWN THE LINE.”
“As you’re likely aware, property insurance premiums have been increasing significantly and anytime this happens, there’s a burden on almost every Arkansan and we’re sensitive to that at the insurance department,” McClain said. “A review of insurance news would quickly illustrate that Arkansas is not alone as we face these unprecedented conditions in market behavior.”
There are a number of contributing factors to rising insurance premiums. For starters, catastrophic weather conditions have hammered insurance payouts. Compounding the number of claims due to weather-related incidents is the inflationary costs of materials and labor to replace lost property. Construction materials have risen as much as 42% over the past three years, wages have accelerated, and supply chain kinks have slowed repairs to a crawl in some instances.
In short, there have been more losses than calculated, and premiums – which are normally adjusted annually – haven’t been able to keep up. The situation is likely to get worse before it gets better.
In early March, the largest insurance credit rating agency in the world AM Best downgraded their outlooks on personal lines, auto insurance and homeowner insurance to “negative” and noted that “underwriting profitability over the near term appears highly unlikely.”
McClain said that the Arkansas insurance companies he regulates saw average loss ratios in homeowners insurance hit 121% in 2022 and 131% in 2023. As of December 31, 2023, insurers had paid over $489 million from claims just related to the March 31, 2023 tornado events in central and eastern Arkansas. That calamity was followed up with additional severe weather and hailstorms in the spring and summer.
$ $ $
“On the average, our insurance carriers are paying out more than they’re bringing in. So it’s just kind of simple math,” McClain said.
Tennant brought to the attention of lawmakers how the insurance disaster is impacting banks, especially the mortgage business.
Homeowners often have their home insurance collected in escrow and pay through their mortgage payment. That’s a fixed amount, in most instances, but spiraling insurance costs are going to complicate this process.
“We’re seeing the deductibles become a real factor in a lot of the insurance that’s there because they are primarily going to the percentage of the value of those buildings and those properties,” Tennant told lawmakers. “Our concerns are the impact and the suddenness of this impact, especially to the homeowners that are out
AVERAGE LOSS RATIOS IN HOMEOWNERS INSURANCE HIT AND 121% in 2022 131% in 2023
INSURERS HAD PAID OVER $489 MILLION
FROM CLAIMS JUST RELATED TO THE MARCH 31, 2023 TORNADO EVENTS IN CENTRAL AND EASTERN ARKANSAS
IN SHORT, THERE HAVE BEEN MORE LOSSES THAN CALCULATED, AND PREMIUMS –WHICH ARE NORMALLY ADJUSTED ANNUALLY – HAVEN’T BEEN ABLE TO KEEP UP. THE SITUATION IS LIKELY TO GET WORSE BEFORE IT GETS BETTER.
there because so many of these people escrow their taxes and insurance, which as you all know, that ties into your monthly mortgage payment.”
He highlighted another area where the insurance crisis is proving difficult. For agricultural clients, insurance carriers are adapting policies to spread risks and increase premiums in order to strengthen underwriting. But that comes with a consequence.
“We’re a big ag lender. We are big in the poultry business in Northwest Arkansas. The changes to insurance for the farmer has poultry houses where the deductible is now per house instead of just one big blanket policy,” Tennant said. “So if you’re a farmer that’s raising chickens or turkeys and you’ve got six houses and you have damage to five of them, suddenly there’s a $5,000 deductible on each house.”
Tennant warned that while these examples are happening in real-time, he fears the worst is yet to come.
“It really hasn’t affected the market too badly yet because it’s pretty new, but it’s a headwind that I think has got our industry very concerned and I think it’s something that’s going to be impactful coming down the line,” he said.
It’s unclear what can be done at the state level. For now, lawmakers are responding to constituent concerns over the rising premiums and are awaiting more data and national direction.
Commissioner McClain said the National Association of Insurance Commissioners has launched a 90-day data collection effort from more than 300 property insurers across the U.S.
“We’re asking for 70 data points for our insurers to report to us. So ultimately, we hope to answer what’s driving affordability and availability,” McClain said.
Evolution of the PASSPORT CARD FRAUD SCHEME
The U.S. passport card is a REAL ID compliant identity and travel document issued by the U.S. Department of State. It can be used for purposes of identity, proof of U.S. citizenship, domestic air travel, and land and sea border crossings from Canada, Mexico, the Caribbean, and Bermuda.
U.S. passports are well known, however their cousin, the passport card is not. This makes the card a great document for counterfeiters, since most people have never seen one. This allows organized criminal groups an open door to schemes targeting financial institutions. The following are some of those schemes:
DIRECT WITHDRAWAL AND WIRE TRANSFERS
Early in the evolution, the fraudsters simply used the counterfeit passport cards and other identity documents to impersonate a known bank customer and withdraw cash directly from the victim’s account or conduct a wire transfer to a money-mule’s account. Low success rates and transaction limits reduced profits. Recently, however there has been an uptick in this scheme. Mules will enter a bank, present a passport card and request a copy of their bank account information. After reviewing the account, they will then attempt to withdraw from the same account.
JOINT SAVINGS ACCOUNT (AKA ACCOUNT TAKEOVER)
The same fraudsters began using money-mules to open joint savings accounts with the imposter. Mid-level facilitators began recruiting mules from social media and personal referrals. These recruiters collected approximately 10 percent of the proceeds. The mules only needed to have a legitimate bank account in their true name at the targeted financial institution. The mid-level facilitator would transport the mule and the imposter to the targeted bank and direct the two to open a joint savings account. The mule rarely knew the true name of
the imposter and would be told they weren’t doing anything illegal since they were using their true name. The mule’s connection to the conspiracy was limited to the person who recruited them – they either knew them personally or knew them through social media. Once a mule is attached to a victim’s account, they could not be used again. Mules were well paid if successful and usually collected between $5,000 and $10,000, or 10 to 20 percent for the use of their true identity.
Once the joint account was established a co-conspirator would call the bank impersonating the customer and request to transfer funds to the newly opened joint account. A typical amount is between $20,000 and $35,000; however, losses have reached as high as $99,100 per victim.
As soon as the joint account was funded from the victim’s account, the mules would be directed to log into their accounts, transfer funds from the joint account to their previously established personal account. The mid-level facilitators/recruiter would
AUTHENTIC
U.S. PASSPORT CARD
✓ The photo is crisp, square, and blends into the card.
✓ The microprinting in the background artwork reads “UNITED STATES OF
✓ The optically variable device (OVD) on the lower right of the photo reads “Department of State” and “United States of America” (in a circular formation) with a rectangular shape on the right that reads “USA” vertically.
✓ On the front of the card, the date of birth, serial number, and some letters in “USA” on the right side of photo should feel raised; on the back of the card, the card number should feel raised.
✓ Under UV light, the front of the passport card shows a red eagle surrounded by blue stars and text that reads “FROM SEA TO SHINING SEA”
✓ When dropped on a non nonmetallic surface, striking an edge, it will make a metallic sound.
then drive them to other bank branches and direct the mules to withdraw less than $10,000 cash from the teller windows. This repeats at as many local branches as needed until the funds were depleted or frozen by the bank.
WHERE DOES IT END?
These are just a couple of ways the fraudsters are creating havoc, but some of this can be prevented. If the tellers are aware of some of the security features on the passport cards,
COUNTERFEIT
U.S. PASSPORT CARD
X The photo often has a white blurry border or a dark gray square surrounding the photo.
X Under magnification counterfeit biodata will have distinguishable cyan, magenta, yellow, and black (CMYK) dots instead of pure colors.
X If there is an optically variable device (OVD) it may contain incorrect language or images (e.g. “U.S. Supreme Court” laminate).
X The counterfeit may lack light reflecting, closely set, vertical lines that are placed behind the OVD.
X Under UV light there will be no images or text, or incorrect images and/or text.
X The date of birth, serial number, and other data fields on the card are printed rather than laser etched / raised.
X When dropped on a non non-metallic surface, striking an edge, it will not make a metallic sound.
it can be fairly easy to know if they are handling a real document or a counterfeit card. Here in Arkansas, there are no land borders with foreign countries. Most people do not have a passport card, especially in a state that is not near a border. This is not to say people do not have them, but more are in states bordering Mexico and Canada. The other people who utilize the cards are people who like to go on cruises. With this in mind, that eliminates the frequent use of the document in our region.
Another telltale in the feel of the document, there are raised areas, which resemble the numbers on a credit card, there are colorful holograms, tiny, tiny print, and NO layers. The cards are not laminated so there are no layers. Another tell tale is the sound of the card. When it is dropped on a counter, the card “clinks” with the sound of metal. If you drop a credit card on a counter it doesn’t clink, but the passport card, if genuine, will make the metallic clinking sound. The colors on the card are pure colors, not little dots of ink.
“U.S. passports are well known, however their cousin, the passport card is not. This makes the card a great document for counterfeiters, since most people have never seen one. ”
THE NEW RULES FOR BENEFICIAL OWNERSHIP IN 2024
by Megan McGovern
The Financial Crimes Enforcement Network (FinCEN) continues to issue rules and guidance relating to beneficial ownership following the enactment of the Corporate Transparency Act (CTA) in 2021. Many banks continue to anticipate the release of the third and final rule which will arguably contain the biggest changes for impacted institutions under the CTA. Overall, 2024 may prove to be a pivotal year for potential changes to Customer Due Diligence (CDD) programs and policies.
In the first final rule, FinCEN established the beneficial ownership information (BOI) database per 31 CFR 1010.380. This rule released in September 2022 is often referred to as the “Reporting Rule.” The Reporting Rule compiles information provided by business entities into a main database to assist in anti-money laundering (AML) efforts by financial institutions and government agencies. Starting January 1, 2024, most entities created in or registered to do business in the United States are now required to report BOI to FinCEN. The FinCEN website also allows individuals and reporting companies to request a FinCEN identifier, although FinCEN identifiers are not required to be obtained. Generally, this Reporting Rule did not contain specific changes for financial institutions to make. While some banks may now be choosing to include reference to FinCEN’s website and the BOI filing information requirements or E-Filing system as part of general resources offered to commercial customers, this is not explicitly required under the final Reporting Rule.
The second final rule, known as the “Access Rule” was released in December 2023, with FinCEN setting forth the protocols for disclosure of BOI. The Access Rule dictates which “authorized recipients” have access to the information from the filed BOI reports which are maintained in the nonpublic database, named “Beneficial Ownership Technology System.” Perhaps the most important part of the Access Rule for banks is that financial institutions subject to CDD requirements are deemed “authorized recipients” under these provisions.
Despite the final Access Rule taking effect on February 20, 2024, FinCEN stated that authorized recipients will be given access to the database in different phases over the course of 2024. The first group granted access is limited to certain key authorized
THIS THIRD RULE IS EXPECTED TO REVISE THE EXISTING CDD REGULATIONS AS PART OF A CONFORMING RULE TO ALIGN WITH THE GOALS OF THE CTA.
comply with FinCEN’s existing Customer Due Diligence rule (the “current CDD Rule”) at this time. For now, banks may continue to rely on the current CDD rule, and once access to the new database is granted, authorized banks will have the ability to take this information into consideration, pending the release of the third rule.
Under the Access Rule, authorized banks will need to take certain steps to receive permission to view information in the BOI database and maintain the information received in a confidential manner. In order to receive access to a reporting company’s information in the Beneficial Ownership Technology System, the bank must first receive a reporting company’s consent and “develop and implement administrative, technical, and physical safeguards reasonably designed to protect the information” obtained. FinCEN notes that consent is not required specifically to be in writing but requires consent to be documented, leaving this to the financial institution’s discretion to determine the method of obtaining and documenting each customer’s consent. Further, if a bank is granted access to the BOI system, then the bank’s regulators will also have access to beneficial ownership information when they supervise the financial institutions. It is likely that further guidance will be released in this area once access is granted to financial institutions as authorized recipients and banks begin requesting consent from companies to obtain the BOI information from the database.
Authorized financial institutions continue to await the proposal of the third rule, which will be the final implementing rule of the CTA. This third rule is expected to revise the existing CDD regulations as part of a conforming rule to align with the goals of the CTA. These revisions are projected to ensure the CDD rules follow along with the new BOI database. At this time, it appears unlikely that this third rule containing the CDD changes will be made effective within 2024. As such, aspects of this third rule are expected to carry over into 2025.
FinCEN recently issued Version 1.0 of the “Small Entity Compliance Guide for Beneficial Ownership Information Access and Safeguards Requirements”, which provides useful interpretations for banks to take into consideration relating to the Access Rule. FinCEN notes that this Small Entity Compliance Guide will be updated in the future to include the final requirements from the third rule, referred to in the Guide as the revised CDD Rule. FinCEN plans to further update the Guide to provide direction on how financial institutions can access BOI from FinCEN. FinCEN has been actively providing insights through updated BOI FAQs to address common issues and questions following the implementation of the two final rules. While the FAQs may assist in guiding determinations absent clarity in the rules, the FAQs do not replace or fulfill what may be missing from the regulation itself. FinCEN is expected to continue to release further guidance throughout the year.
=Overall, 2024 has been an active year for the CTA’s two finalized rules, as the BOI database goes live and access is granted in phases to the defined authorized recipients. As banks await the release of the third and final rule containing the conforming changes to the current CDD rules, it remains to be seen how a bank’s current BSA/AML compliance program and practice will be altered by the third rule once finalized.
government agencies, while the second group granted access includes Treasury offices and certain Federal agencies engaged in law enforcement and national security activities. Subsequent stages of the rollout are expected to extend access to additional Federal agencies engaged in law enforcement, national security, and intelligence activities, as well as to State, local, and Tribal law enforcement partners; and finally, to financial institutions that meet the requirements of the final Access Rule.
It is important to distinguish that the Access Rule itself does not create a different regulatory requirement for banks to access BOI from the database. Further, the Access Rule does not require changes to Bank Secrecy Act (BSA)/anti-money laundering (AML) compliance programs designed to
NOTE: On March 1, 2024, shortly after the writing of this article, a Federal judge in Alabama issued a judgment concluding that the Corporate Transparency Act (CTA) exceeded Congress’s authority and enjoined the Department of the Treasury and FinCEN from enforcing the CTA as to the plaintiffs in the case. It’s important to note that as of publication of this article, the lawsuit does not directly affect bank obligations under the current Customer Due Diligence rules and further, an appeal of the decision has since been filed by the government. FinCEN has published the following on its website while the litigation continues:
ABOUT THE AUTHOR
Megan McGovern, JD, serves as Associate General Counsel for Compliance Alliance; bringing over a decade of diverse legal experience to the role. Megan is a graduate of the State University of New York at Albany and Albany Law School.
TRIGGERED!
HOW FEDERAL AGENCIES AND CREDIT BUREAUS ARE WORKING AGAINST YOU
by Timothy Schenk General Counsel, Kentucky Bankers Association
Have you heard customers complain about receiving junk phone calls from other lenders after applying for credit? Based on what we’re hearing from banks, it’s an issue happening across the board. The cause for these unwanted solicitations? Trigger leads.
Trigger leads are leads that come from mortgage trigger products offered by the three major credit bureaus. When a lender requests a credit report, that inquiry automatically “triggers” lenders that a customer is looking for credit. Lenders of all sorts purchase that information and then begin calling your customer, tens, if not hundreds, of times.
The nature of these calls is concerning. One bank president who recently asked what we are doing to combat trigger leads told a shocking, but not unique, story of harassment.
His credit report was pulled on a Tuesday at 9:30 a.m. His first call from a lender came just ten minutes later. By Friday, he had received fifty-one harassing calls.
Lenders refused to stop calling, would not provide their full names, offered unrealistic loan terms (often the source of bait and switch), and knew personal details that he could not trace. It all began when the credit bureau sold his personal information. He asked the same thing that many bankers ask: How is this legal?
Trigger leads are not only legal, but are encouraged by some regulators. The Federal Trade Commission and Consumer Financial Protection Bureau believe these triggers are valuable because they offer more options for customers. While the regulatory compliance side of me wonders how any of this passes the ever-obscure standards of UDAAP, I’ll digress for purposes of this article.
So what is being done? The good news is that we are taking the fight to the credit bureaus.
On the federal level, bipartisan legislation has been introduced – the Homebuyers Protection Act (S.3502/H.R. 7297). These bills would not only enhance consumer protection and strengthen trust in the financial system, but would significantly limit the ability of credit bureaus to share your customers’ information with third parties.
On the state level, several other states that are currently in legislative session are running bills around trigger leads. The ABA is actively watching these bills and is considering running the same type of legislation in the 2025 substantive Arkansas legislative session. This will depend on what happens at the federal level.
While legislative action is in process, you can educate customers to minimize the impact of trigger leads. Optoutprescreen.com will take your customers’ name off of the “trigger lists” from the credit reporting agencies for five (5) years or permanently.
The site will ask your customers for personal information, including their name, address, social security number and address and may take several weeks to process, but it
When a lender requests a credit report, that inquiry automatically “triggers” lenders that a customer is looking for credit. Lenders of all sorts purchase that information and then begin calling your customer, tens, if not hundreds, of times.
“His credit report was pulled on a Tuesday at 9:30 a.m. His first call from a lender came just ten minutes later. By Friday, he had received fifty-one harassing calls.”
has proven to be effective. The customer can even selectively choose which portions of “trigger leads” they would like to screen (calls, but not mail, for example).
OptOutPrescreen.com is the only internet website authorized by Equifax, Experian, Innovis and TransUnion for consumers to opt-out of firm offers of credit or insurance.
Another option is for customers to register their number on DoNotCall.gov. The process takes a minute or two but can prevent unsolicited phone calls. It can take up to thirty-one (31) days to process, but it can prevent many unwanted calls.
The other means of protecting your customers is education. You are likely the first person to discuss trigger leads with your customer. By bringing their attention to the issue, you may prevent them from falling prey to scams and fraud while also protecting your institution from losing that customer.
While we cannot promise an overnight fix to these issues, we are fighting for you on every front to stop trigger leads. In the meantime, please make your customers aware of the options they do have to fight trigger leads to avoid potential harassment, confusion and deception.
THE COLLAPSE OF BANK ENTRY
SINCE THE DODD-FRANK ACT and Prospects
for Recovery
by Dr. Kuan Liu & Dr. Timothy J. Yeager
Before the enactment of the Dodd-Frank Act in 2010, new bank entries averaged about 150 per year. Since then, bank entry has largely collapsed. As shown in Figure 1, bank entries averaged less than seven between 2011 and 2022, though they have increased slightly since 2017. What caused this collapse, and what are the prospects for recovery?
A research study by Dr. Kuan Liu on the impact of the Dodd-Frank Act on community banks finds that additional compliance burdens and higher capital requirements explain about 80% of the collapse of bank entry.1 While both burdens contribute to the decline, they work through distinct economic channels and have different longterm effects. Together, these factors suggest that bank entries will continue to increase slowly over time, but the annual number of entries will remain well below the number in the pre-Dodd-Frank era.
COMPLIANCE COSTS
To understand entry dynamics in the banking industry, one must focus on community banks because they account for nearly all new entrants. The Dodd-Frank Act imposed additional regulatory burdens on banks through heightened compliance costs. For example, the Consumer Finance Protection Bureau (CFPB) put forth regulations that require banks to conduct ability-to-repay tests before they can originate most residential mortgages. The CFPB also
imposed more disclosure requirements on banks to increase transparency to consumers and the public. Large banks can more easily absorb the additional compliance costs because of their large economies of scale. Community banks, on the other hand, have much less capacity to absorb fixed costs so higher compliance costs have a greater adverse effect on profitability. Lower profits, in turn, reduce bank charter values (discounted future profits), which reduces the attractiveness of starting de novo banks.
The adverse impact of higher compliance costs on new bank entry is temporary. Although this result may seem counterintuitive, banking markets adjust over time to recover the charter value decline. Reduced profitability drives weak banks to exit the industry while healthier banks reduce average costs by increasing their scale via organic expansion or acquisitions. A consequence of this growth and consolidation is that loan supply decreases with the number of banks, which puts upward pressure on loan rates and enhances the profitability of surviving banks. Consequently, higher compliance costs depress profitability only until
1. Dr. Liu’s research paper is titled “The Impact of the Dodd-Frank Act on Small U.S. Banks” and is available at https://ssrn.com/abstract=4653325.
these market adjustments are completed. If higher compliance costs were the only regulatory burden imposed, charter values of surviving banks would fully recover, which would also lead to a full recovery of bank entry in the medium-to-long run.
TIGHTER CAPITAL REQUIREMENTS
The Dodd-Frank Act also laid the foundation for higher capital requirements. In 2013, federal bank regulators issued rules to align with the Basel III capital standards, and community bank implementation began in 2015. Among other things, Basel III stresses the importance of common equity, strengthens minimum capital ratios, and establishes a conservation buffer of 2.5%. Relative to Basel I, the minimum Tier 1 risk-based capital ratio (plus the conservation buffer) for an adequately capitalized bank rose from 4% to 8.5%.
Community banks hold large capital spreads above regulatory thresholds, in part to ensure survival. Although most community banks could have met the higher Basel III requirements by reducing their spread and leaving capital unchanged, they chose to boost their capital ratios anyway. Figure 2 shows that the average bank with assets between $100 million and $1 billion increased its average Tier 1 risk-based ratio from 13.7% in the years 2000-2006 to 15.7% in the years 2013-2019. In other words, in response to the 4.5 percentage point effective increase in the minimum Tier 1 risk-based capital ratio, the average community bank in 2019 increased its ratio by 2.0 percentage points and decreased its spread by 2.5 percentage points.
“Unlike higher compliance costs, the adverse impact of higher capital requirements from Basel III on new entry is permanent because a bank start-up must raise more seed capital than it raised under Basel I.”
Higher capital requirements, therefore, have increased an important component of entry costs. Consistent with this observation, Dr. Liu’s research findings show that the increase in capital requirements postDodd-Frank is the primary contributor to the persistent lack of bank entry.
PROSPECTS FOR THE FUTURE
Notes: The solid black lines represent the mean Tier 1 risk-based capital ratio from 2000-2006 and from 2013-2019.
Source: FDIC call reports and authors’ calculations.
Unlike higher compliance costs, the adverse impact of higher capital requirements from Basel III on new entry is permanent because a bank start-up must raise more seed capital than it raised under Basel I. De novo banks in the post-Dodd-Frank era recognize that if they begin with relatively small amounts of capital, they are less likely to survive, just as established banks raised capital with the implementation of Basel III. Indeed, as shown in Table 1, the average (inflation-adjusted) initial capital injection of the 954 de novo banks between 2000 and 2006 was $14.7 million, but the capital injection of the 63 de novo banks between 2011 and the first half of 2023 was $38.1 million. (The median capital injection rose from $11.4 million to $23.6 million.) Raising equity in the financial market is a costly process.
TABLE 1: INITIAL ENTRY CAPITAL BY DE NOVO BANKS
Notes: Capital amounts are inflation-adjusted. Data include only the 1st half of 2023.
Dr. Liu’s research of the effects from increases in compliance costs and capital requirements on bank entry estimates that these factors jointly account for about 80% of the decline in de novo banks since 2010. The compliance burden, however, dissipates over time while the burden from higher capital requirements is persistent. The combination of these factors predicts that new bank entries will gradually rise as banks grow and adjust to the compliance burdens. The annual number of new entries, however, will remain much lower than entries in the pre-Dodd-Frank era due to the higher capital required to start a bank. Indeed, this is the pattern observed thus far in the postDodd-Frank decade. The research model estimates that there will be an average of about 30 new bank entries per year once the banking industry fully incorporates the effects from higher compliance costs and capital requirements.
ABOUT THE AUTHORS
Dr. Kuan Liu is an Assistant Professor of Finance at the University of Arkansas. Dr. Timothy J. Yeager is a Professor of Finance at the University of Arkansas and holds the Arkansas Bankers Association Chair in Banking.
A LegalUPDATE
by Justin Allen and Adrienne L. Baker
Previous issues of the Arkansas Banker have provided summaries of significant lawsuits that impact the financial industry. Two of them are pending before the U.S. Supreme Court, with rulings expected this year. Below are reminders of those cases, status updates and potential consequences for all.
SCOTUS WILL SOON WEIGH IN ON THE FUTURE OF CHEVRON DEFERENCE
In January of this year, the Supreme Court heard oral arguments in Loper Bright Enterprises v. Raimondo. The lawsuit was brought by a group of herring fishermen from New Jersey objecting to a federal rule requiring them not only to host government monitors on their boats, but to pay the cost of those monitors. At issue in the case is the future of Chevron deference.
Since 1984, Chevron deference has given federal agencies broad discretion to interpret ambiguous laws. It has been a cornerstone of how federal agencies exercise their authority. If the Supreme Court moves away from or expressly eliminates Chevron deference, it could limit the government’s regulatory authority and reach. Courts may well find that regulators’ initiatives are not permitted if they do not arise from clear congressional authorization.
In the banking context, this could prove problematic for both the regulators and the regulated, as many of the statutes that create the framework of the banking industry have not been congressionally updated in decades or longer. For example, the National Bank Act enacted in the 1860s has no provision allowing for national fintech bank charters. The sting to the banking industry may be blunted compared to others because there is such a detailed statutory framework surrounding the industry, and many of the existing statutes grant broad “safety and soundness” powers to bank regulators. But, again, the framework has not necessarily been updated to keep with the times.
Based on oral arguments, legal pundits largely agree the votes are there to eliminate Chevron deference, as least as we have come to know it. What would replace Chevron deference? We can’t be certain, but it will likely be far more restrictive in terms of agency authority.
Some on the bank side may welcome such a ruling. Without Chevron deference, it will be easier for all regulated industries to challenge government attempts to expand its authority or impose requirements not expressly contemplated by Congress. Others, though, worry a change could hamper basic housekeeping functions of regulators, such as the day-to-day guidance on which some banks rely. And there is no question the end of Chevron deference would limit regulators’ abilities to respond to novel threats to the industry.
UPDATES ON CFPB LAWSUITS
One case challenging CFPB action stems from the CFPB announcement in
March of 2022 that it would “scrutinize discriminatory conduct” including close examination of financial institutions’ decision-making in advertising, pricing, and other areas “to ensure that companies are appropriately testing for and eliminating illegal discrimination.” CFPB sought to examine documentation of customer demographics and the impact of products and fees on different demographic groups, among other things. In March 2022, CFPB published an updated exam manual outlining these changes, all of which were implemented pursuant to CFPB’s authority to examine for UDAAPs (unfair, deceptive, or abusive acts or practices).
In September 2022, the American Bankers Association and six other trade groups sued CFPB and its director, Rohit Chopra, for exceeding the agency’s legal authority with the update to the UDAAP exam manual. On September 8, 2023, the court granted judgment to the plaintiffs and set aside manual updates, finding CFPB exceeded its statutory authority under the Dodd-Frank Act.
Since 1984, Chevron deference has given federal agencies broad discretion to interpret ambiguous laws. It has been a cornerstone of how federal agencies exercise their authority.
On November 6, 2023, the CFPB appealed that ruling to the 5th Circuit Court of Appeals. Legal observers don’t expect the agency to prevail on appeal given the current legal precedent.
Another case involves a May 2023 Texas lawsuit seeking to invalidate CFPB’s Final Rule regarding data collection by commercial lenders. The Final Rule was issued under section 1071 of the Dodd-Frank Act, which amended the Equal Credit Opportunity Act to require commercial lenders to collect data from loan applications to facilitate enforcement of fair-lending laws. The Act required lenders to determine if the business is woman-owned, minority-owned, or a small business, and to compile and report 13 data points to CFPB. CFPB’s Final Rule significantly expanded the reporting requirement to 81 data points.
In October 2023, the district court enjoined enforcement of the rule. In March of this year, the plaintiffs filed a motion for summary judgment.
THE FUTURE OF THE CFPB
The 800 lb. gorilla in the CFPB’s room remains the lawsuit filed against it by the Community Financial Services Association of America challenging the constitutionality of the agency. The argument is that Congress violated Article I, Section 9 of the Constitution, known as the appropriations clause, when it provided for CFPB funding through the Federal Reserve rather than an annual appropriation by Congress.
The 5th Circuit found the agency’s funding mechanism unconstitutional and the case is on appeal to the United States Supreme Court, which heard oral arguments in October 2023. A ruling is expected by June of this year.
What happens if the Court upholds the 5th Circuit and effectively eliminates the CFPB? Nothing is certain, but many financial experts and business interests are concerned about the impact it could have on financial markets and the economy. Others suggest that, in that event, Congress could act quickly to restore most of the law and ensure the agency is properly funded. We will know soon.
The 800 lb. gorilla in the CFPB’s room remains the lawsuit filed against it by the Community Financial Services Association of America challenging the constitutionality of the agency.
ABOUT THE AUTHORS
Justin Allen leads the Government Relations practice group of Wright Lindsey Jennings and assists clients in working with state and local government on matters of policy, regulation and legislation. Adrienne Baker’s practice centers on commercial litigation, including banking and commercial lending, creditors’ rights and collections, contract disputes and surety law. She also regularly provides contract drafting and review services to a variety of businesses.
Women in Banking
by Mickey Belle Shields-Manley
March is women’s history month, a month to look back and reflect on those that paved the way for us, be present in the moment, and actively create a future where women in all industries become the leaders, the achievers, and the motivators we so often read about in the history books. Over the last five decades women have made large strides in the banking and financial industries, in what once was a very male dominated practice we are now seeing women rising to the occasion and growing within their ranks!
Recently, the Arkansas Bankers Association held their 9th annual Women in Banking Conference. What started as an idea by former ABA President and CEO Bill Holmes has snowballed into one
of our country’s largest Women in Banking Conference’s with over 200 women across the state of Arkansas traveling in to attend.
So, what makes this conference so special you ask?
Simple. The Arkansas Bankers Association, who might I add is led by women, works tirelessly for women everywhere to provide an interesting, captivating, and ground shaking experience. As someone who has attended in the past and plans to continue to attend for many years to come, I have seen and experienced first hand what happens when you bring like-minded, ambitious, and willing-to learn women under one roof.
In just one day, women leave transformed, whether it be that they’ve gained confidence, influence, ideas to take home, or simply the courage to ask for what they want. Women leave knowing not only that they are empowered, but, by their bank sending them to attend, their bank believes in empowering them as well.
While topics may range and the speakers may vary year to year, one thing remains true. The experience and takeaways remain the same and can be not only career-changing, but life-altering.
In closing, I once read a quote that impacted me greatly: “And when you get to where you’re going, turn around and help her too. For there was a time, not long ago when she was you.”
While March may be women’s history month, we should be empowering ALL people, daily. We will always rise by lifting those around us.
PHOTOS: Left to Right: Our ABA Chairman, Jim Taylor helping ABA staff with WIB registrations; Latrecia Carroll.
Mickey Belle Shields-Manley Assistant Vice President/Director of Marketing at CS Bank
The 9th Annual Women In Banking Conference
WAS HELD ON MARCH 7 TH AT THE CLINTON PRESIDENTIAL CENTER IN LITTLE ROCK
photography by Michael Pirnique
PHOTOS: Left to Right from Top: Stacey Marlar; First Service Bank attendees; Panelists: Adrienne Baker, Matuschka Lindo Briggs, Esperanza Massana Crane, and Jessica Kearney; Natalie Bartholomew and Shamim Okolloh; ABA President & CEO, Lorrie Trogden; Maria Weyrens and Rhea Williams; LaTasha Randle, Kimberly Lee, and Andrea Hogan Lewis; Santana Campbell and Kendall Stubbs
Over 200 women across the state of Arkansas traveled in to attend the Women In Banking Conference.
photography by Michael Pirnique
PHOTOS: Left to Right from Top: Attendees gathered at the Clinton Presidential Center; attendees from Farmers & Merchants Bank; Esperanza Massana-Crane, Faviola Alba, and Maria Monservat Aguilar; Lorrie Trogden with Power Woman in Banking award winner, Andrea Hogan Lewis; Power Woman in Banking award winner, Andrea Hogan Lewis; Susannah Marshall, Commissioner Arkansas State Bank Department; attendees from First Security bank; Stacy Rosales, Lauren Miller, and Jamie Vaughn.
ABA BANKERS
MEET WITH...
SEN. TOM COTTON
U.S. Senator – Arkansas
REP. STEVE WOMACK
U.S. Representative for Arkansas's 3rd Congressional District
REP. FRENCH HILL
U.S. Representative for Arkansas's 2nd Congressional District
Left to right: Scott Saffold, Kerry Hartness, Katherine Mitchell, Rachel Graham, Latrecia Carroll, Mickey Belle Shields-Manley, Lorrie Trogden, Senator Tom Cotton, Jim Taylor, Cathy Owen, John Ahlen, Susannah Marshall, Lenwood Brooks, and Randy Rawls.
Left to right: Jeff Lynch, Susannah Marshall, Randy Rawls, Jim Taylor, Latrecia Carroll, Scott Saffold, Mickey Belle Shields-Manley, Katherine Mitchell, Kerry Hartness, Latriana Robertson, Rachel Graham, Congressman French Hill, Cathy Owen, Brad Chambless, Lorrie Trogden, and John Ahlen.
Left to right: Jim Taylor, Latrecia Carroll, Rachel Graham, Mickey Belle Shields-Manley, Randy Rawls, Brad Chambless, Katherine Mitchell, and John Ahlen.
NEWS & MOVES
LOGAN JOINS STONE BANK, CAMPBELL AND COOPER PROMOTED
Austin Logan has joined Stone Bank in White Hall as a Vice President and Commercial Lending Officer. He held similar positions with Arkansas Capital Corporation and Relyance Bank in Pine Bluff. He is a graduate of Woodlawn High School and the University of Arkansas at Monticello with a degree in Agricultural Business.
Stone Bank also announced the promotion of two of its key employees at its Harrison location. Tammy Cooper has been promoted to Vice President and Commercial Loan Officer and Santana Campbell to Assistant Vice President and Branch Manager.
Cooper joined Stone Bank in 2022 and has over 24 years of banking experience and has served as the branch manager. She is a graduate of Western Grove High School and attended North Arkansas College. She currently is
the Treasurer of both the Boone County and the Northwest Arkansas District Fair Boards and is a Boone County Chamber of Commerce Ambassador. She also serves as an ambassador of the Harrison Regional Chamber of Commerce.
Campbell also joined the bank in 2022 and served as the assistant branch manager. She graduated from the Bergman School District attended North Arkansas College. She is a graduate of the Boone County Leadership Institute and currently serves as an ambassador of the Harrison Regional Chamber of Commerce.
ARVEST BANK ELEVATES KEVIN SABIN TO CHAIRMAN MATT
MACHEN APPOINTED PRESIDENT AND COO
Jim Walton, board chairman of Walton family-owned Arvest Bank of Bentonville and Fayetteville-based Arvest Bank Group Inc., the holding company for the bank and several related entities, is taking on a new role.
An Arvest spokesman confirmed that Walton had appointed Kevin Sabin as the bank’s new board chairman. Sabin, based in Tulsa and the bank’s president and CEO since 2002, will continue as CEO and an Arvest Bank Group board member.
“As chairman and CEO of Arvest Bank, Kevin will lead and coordinate the activities of the bank’s board of directors and the company’s overall strategic direction and management,” the company said
in a statement.
The bank indicated that Walton, 75, will be “active and involved” as a board member and remain chairman of Arvest Bank Group.
The bank also confirmed that Matt Machen, based in central Arkansas, is the bank’s new president and COO. He will oversee the technology and operations groups and direct the company’s daily business activities.
Machen was previously the bank’s regional executive of enhanced banking services. He joined Arvest in 2018 following its acquisition of Bear State Financial Inc., the publicly traded holding company of Bear State Bank.
“AS CHAIRMAN AND CEO OF ARVEST BANK, KEVIN WILL LEAD AND COORDINATE THE ACTIVITIES OF THE BANK’S BOARD OF DIRECTORS AND THE COMPANY’S OVERALL STRATEGIC DIRECTION AND MANAGEMENT.”
Tammy Cooper Vice President and Commercial Loan Officer
Santana Campbell Assistant Vice President and Branch Manager
FIRST FINANCIAL BANK ANNOUNCES PROMOTIONS FOR LOCAL TEAM MEMBERS
First Financial Bank announces promotions for Rebekah Biernacki, Bart Greene, Stewart Chandler, and Alan Meadows.
Rebekah Biernacki has been promoted to Senior Vice President of Corporate Compliance. She joined First Financial Bank in January 2020 and has been responsible for overseeing compliance with all relevant laws, regulations, and internal policies. She has played a key role in developing and implementing the bank's compliance programs and has a deep understanding of the regulatory environment.
Bart Greene has been promoted to Senior Vice President of Operations/IT Director. He has played a vital role in streamlining the bank's operations and enhancing its IT capabilities.
Stewart Chandler has been promoted to Managing Director of Small Business Administration Operations. First Financial Bank is one of the nation's leading SBA lenders. Stewart has been instrumental in growing the bank's SBA lending business, ensuring compliance with all SBA regulations and guidelines.
Alan Meadows has been promoted to Vice President/Commercial Loan Officer. Through his relationship-based service, he has become a trusted advisor for his customers.
CS BANK ANNOUNCES PERSONNEL MOVES
Eureka Springs-chartered CS Bank announced multiple promotions and a pair of new market presidents this week.
Matt Cleaver is now senior vice president and Madison County market president. The bank also appointed Cleaver to its advisory board of directors. Cleaver was previously vice president at CS Bank’s Huntsville office and has worked for the bank for seven years.
Tammy Bullock is now senior vice president. She joins the bank’s senior management team and will continue as a loan officer in Eureka Springs.
Mickey Belle Shields-Manley, previously the
bank’s marketing director, has been promoted to assistant vice president. She will continue to lead the company’s marketing efforts.
CS Bank also announced the hiring of longtime banker Mark Davis as market president of its Cassville/southwest Missouri market. Davis was previously market president of Equity Bank in Clinton, Mo. Before that, he was the market president for Arvest Bank in Cassville and Shell Knob (2008-2018) and has 30 years of banking experience.
Davis joins the bank’s corporate senior management team. He started the job the first week of January as the bank begins to add staff members prior to its upcoming move to a new facility being built in Cassville.
CS Bank had assets of $529.1 million as of Sept. 30, according to the FDIC. The company has seven locations in Northwest Arkansas and southwest Missouri, with plans for continued expansion.
Rebekah Biernacki Senior Vice President of Corporate Compliance
Bart Greene Senior Vice President of Operations/IT Director
Stewart Chandler Managing Director of Small Business Administration Operations
Alan Meadows Vice President and Commercial Loan Officer
NEWS & MOVES
FIRST SECURITY’S JOHN DAVIS TO RETIRE AT END OF MARCH
John Davis, president of First Security Bank
North Little Rock since 2013, has announced his retirement, effective at the end of March.
Though he spent a total of 42 years in banking, Davis began his career with First Security in 2004 as Fayetteville market president after working for a publicly-traded bank.
“First Security is a true community bank,” Davis said. “The management truly cares about the employees as well as our customer base.”
Davis has been very active in the community, spending more than 42 years on bank boards or other organizations, which include Boy Scouts, Rotary, The Salvation Army of both Hot Springs and Fayetteville, hospital boards across Arkansas and Missouri such as White River Regional Medical Center (Batesville), chambers of commerce, CareLink, and several industrial development corporations. He has been a Rotarian for 42 years, and he has been involved with Shriners for 12.
“John brought a wide range of experience to his role, and we have benefitted from it in Northwest Arkansas, as well as Central Arkansas,” said John Rutledge, regional president and CEO of First Security Bank, Little Rock.
RIGGLES, PHILLIPS TAKE LENDING ROLES AT BANK OF FAYETTEVILLE
Farmers & Merchants Bank and The Bank of Fayetteville announced Jenny Riggles, a long-time employee with the bank, as a new Consumer Loan Officer for the Fayetteville region.
"I’m thrilled to advance my career here at The Bank of Fayetteville,” Riggles said. “Northwest Arkansas is incredibly special to me, and I feel grateful to work with a group of people who value the community as much as I do. I started with the bank about nine years ago as a teller at our West Fork location. That season of learning taught me the core values of being a community banker and provided me with the skills to move forward into management and eventually into lending. I’m thankful for the journey thus far and am very excited for what’s to come.”
Bringing two decades of experience, Phil Phillips is taking on a new role as a Mortgage Loan Officer. Phillips has also spent a number of years with The Bank of Fayetteville.
"Banking is in my blood and so is Northwest Arkansas,” said Phillips. “I am beyond excited about the opportunity to help the people in our community with all their home loan needs. I have worked at The Bank of Fayetteville for a few years and in the banking industry for more than 20 years. I believe that The Bank of Fayetteville is a vital link in the chain of the community. I am thrilled to be a part of the growth of the bank, and am really looking forward to helping people find their forever homes.”
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.
“NORTHWEST ARKANSAS IS INCREDIBLY SPECIAL TO ME, AND I FEEL GRATEFUL TO WORK WITH A GROUP OF PEOPLE WHO VALUE THE COMMUNITY AS MUCH AS I DO.”
Jenny Riggles Consumer Loan Officer
Phil Phillips Mortgage Loan Officer
Russell President
FAYETTEVILLE LEADER DAVID RUSSELL TO RETIRE FROM FIRST SECURITY BANK
David Russell, president of First Security Bank Fayetteville since 2008, has announced his retirement effective March 14, 2024. A reception is planned in Fayetteville to honor his service with the Searcy-based statewide bank.
Russell, 69, began his career with First Security in 2002 as a lender and retail bank manager when there were six branches in Northwest Arkansas. The market has grown to 17 branches. He began his banking career in Texas and spent his early years working for a gas utility.
Hired by First Security Bank Market President Jim Taylor, Russell played a key role in obtaining the only bank branch on the University of Arkansas
campus and in the construction of two new branches in Fayetteville. He says the Rutledge family, owners of First Security Bank, made the transition from big banking to family, community banking a joy.
Russell has been active in the Northwest Arkansas community through volunteer service. During his tenure at First Security Bank, he served on the Fayetteville Public Education Foundation board, Fayetteville Chamber of Commerce board and Leadership Chair for Class 20, the local board and national committees for the American Diabetes Association, Fayetteville Public Library Foundation board, and Washington Regional Hospital Foundation board, for which he is incoming chair.
CHAD HUDSON NAMED
FNBC PRESIDENT
Chad Hudson has been promoted to president at FNBC Bank becoming the bank’s fourth president during the last 50 years.
Hudson has been with Ash Flat-based FNBC since 2011, serving in numerous roles such as community president for Mountain Home, executive vice president, chief lending officer, and regional president. He has been with the bank over the past decade, while the bank has doubled its asset size and expanded its footprint into new growth markets such as Jonesboro and West Plains.
As president, Hudson will oversee the bank’s daily operations with direct oversight over innovation and technology, human resources, marketing and operations.
“FNBC has a strong legacy of leadership, and I am honored to serve as its next President,” said Hudson. “In my career, I’ve worked with very strong leaders but none more impactful than Martin Carpenter and Marty Sellars. They’ve modeled impeccable work ethics and have shown true leadership
through challenges and opportunities. It’s truly an honor to be selected for this incredible opportunity to continue to lead and build FNBC into the future and to serve with such a strong management team and talented group of community bankers.”
Hudson succeeds Marty Sellars, who will continue to serve as chief executive officer and on the board of directors. Sellars, a 40-year employee of FNBC, served as president since 2003 and has been CEO since 2016.
Hudson, who served as regional president and chief lending officer, is succeeded by Trent Brown, who is now executive vice president and chief lending officer. Brown will continue to serve as community president for the Jonesboro market, a position he’s held since early 2023.
Brown brings more than 20 years of banking experience to his role. He is now a member of the bank’s executive management team and is responsible for continued oversight of strategic growth and management of the loan portfolio.
“IN
MY CAREER, I’VE WORKED WITH VERY STRONG LEADERS BUT NONE MORE IMPACTFUL THAN MARTIN CARPENTER AND MARTY SELLARS. THEY’VE MODELED IMPECCABLE WORK ETHICS AND HAVE SHOWN TRUE LEADERSHIP...”
David
NEWS & MOVES
FIRST NATIONAL BANKERS BANKSHARES, INC. HIRES REID
LYNCH FOR FNBB CAPITAL MARKETS DIVISION
First National Bankers Bankshares, Inc. hired Reid Lynch to the position of Senior Vice President, FNBB Capital Markets. Lynch will be covering financial institutions in the state of Arkansas and assisting them with their needs as it relates to the investment portfolio and related services.
“We are thrilled to announce that Reid Lynch has joined our talented and capable team in Arkansas. While Reid’s 19-year track record in the Capital Markets business speaks for itself, being a native of Arkansas, he is the ideal candidate to represent First National Bankers Bank in that market,” said Chris Corts, President of FNBB Capital Markets.
Lynch obtained his Bachelor of Sciences degree from the University of Arkansas at Little Rock in Corporate Finance. He holds the Series 7 and 63 Securities licenses.
MARTY
SELLARS
NAMED TO BOARD OF INDEPENDENT COMMUNITY BANKERS OF AMERICA
The Independent Community Bankers of America (ICBA) has elected FNBC Bank CEO Marty Sellars to the ICBA Federal Delegate Board. ICBA is a national advocacy organization for community banks.
“It’s an honor to be elected to represent the community banking industry and shine a light on the invaluable work community banks across the nation do to strengthen and build more resilient communities,” Sellars said. “I look forward to leveraging my experience as a local community banker to ensure advocacy in Washington reflects the needs of our local economy and community and engaging with my fellow community bankers from across the country to create and promote an environment where community banks flourish.”
In addition to helping shape and advocate ICBA’s national policy positions and programs, Sellars’ duties include engaging in grassroots activities in Arkansas and serving as a liaison between independent community bankers and ICBA staff and leadership in Washington, D.C.
Sellars, a native of Izard County, began his career in community banking when he was only 18 years old at a local bank in Horseshoe Bend. In January 1983, he joined FNBC in the loan department as a loan collector, and quickly advanced to vice president and loan officer. In 1990, he was promoted to vice president and branch manager to grow and expand FNBC’s footprint in the Hardy market. Eventually, he was named chief executive officer in 2016.
He is a graduate of Southern Methodist University Graduate School of Banking in Dallas. He sits on the Board of Directors for FNBC Bank, serves on the Board of Directors for the Network of Community Options, a position he has held for over 20 years, and is on the Board of Directors for the Northeast Arkansas Regional Intermodal Authority.
MARK RYAN, LONGTIME ARVEST BANK EXECUTIVE SET TO RETIRE IN MARCH
Mark Ryan, loan manager and executive vice president for Arvest Bank’s Benton County market, will retire after a three-decade career with the company.
Ryan’s retirement is effective March 31, 2024, to assist with transitioning to a new loan manager. After that, Ryan is expected to support the bank’s commercial and credit projects part-time.
Ryan started his Arvest career in October 1993 as a commercial loan officer in Fayetteville. Arvest promoted him in 2016 from commercial banking manager to loan manager in Benton County.
Ryan, who lives with his family in Rogers, has a bachelor’s degree in finance from the University of Arkansas and is a 1988 graduate of the Southwestern School of Banking at Southern Methodist University.
RYAN IS EXPECTED TO SUPPORT THE BANK’S COMMERCIAL AND CREDIT PROJECTS PART-TIME.
Reid Lynch Senior Vice President, FNBB Capital Markets
Gary Edwards Vice President and Chief Financial Officer
Mike Jacimore President, Fort Smith Region
CROSS BANK NAMES GARY
WEDWARDS AS CFO
ynne-based Cross Bank has hired Gary Edwards as vice president and chief financial officer. Edwards assumes the role after the retirement of longtime CFO Beth Dildine.
Edwards brings more than 20 years of experience in the financial industry to his role at Cross Bank. A Certified Public Accountant, Edwards worked at BKD, LLP for more than 20 years upon his graduation from Arkansas Tech University in Russellville, and most recently worked as chief audit officer of Encore Bank in Little Rock.
“We are delighted to have Gary join our team at Cross Bank,” said President and CEO David
Dowd. “He will bring a wealth of knowledge and industry expertise to the role of CFO, and we are confident in his ability to lead and drive results as we continue to grow.”
An active member of the Little Rock community where he resides, Edwards has served on the Board of Directors for Junior Deputy Baseball for eight years. He previously served on the Board of Directors for First Tee of Central Arkansas and the Juvenile Diabetes Research Foundation’s Arkansas Chapter.
A native of Northwest Arkansas, Edwards also holds a bachelor’s degree in accounting from Arkansas Tech University.
JACIMORE NAMED PRESIDENT OF ARVEST’S FORT SMITH MARKET
Mike Jacimore is president of Arvest Bank’s Fort Smith region, and replaces Roger Holroyd who has been with the bank for more than 30 years and is retiring April 2 after leading the Fort Smith region since 2018. Prior to Fort Smith, Holyrod was president of Arvest’s Siloam Springs region.
“Roger has been a highly respected and trusted leader throughout his many years with Arvest and we are happy for this next stage in his life,” Craig Rivaldo, Arvest regional executive for the Southeast Region, said in a statement. “I am confident Mike will continue the great work Roger has done during his tenure.”
Jacimore joined Arvest in 2007 as community president for the River Valley region before becoming sales manager in 2011, representing the entire Fort Smith and River Valley region. Prior to Arvest, he held executive positions with banks in the Fort Smith metro.
Jacimore has a bachelor’s degree in business administration from the University of Arkansas and has attended various banking and lending schools at Arkansas State University, Southern Methodist University, Louisiana State University and University of Colorado-Boulder.
RYAN HOWARD, KYLE DAVIDSON PROMOTED TO
F
REGIONAL PRESIDENTS FOR FNBC BANK
NBC Bank has promoted Ryan Howard and Kyle Davidson to regional market presidents. Howard, previously community president for Melbourne, now has oversight over Izard, Independence and Sharp counties. Davidson, previously community president for Mountain Home, will now oversee Baxter and Fulton counties, as well as the bank’s newest locations in South Central Missouri. Trent Brown will continue to lead FNBC’s Jonesboro market.
As regional market presidents, Howard and Davidson will work directly with
their market community presidents to lead strategic loan and deposit growth initiatives.
“Ryan and Kyle are seasoned, trusted bankers with a tremendous amount of leadership experience,” said FNBC President Chad Hudson. “I am grateful to have them on our team and am confident in their ability to lead our markets forward.”
NEWS & MOVES
Nick Roach CEO and President
STONE BANK NAMES NICK ROACH CEO AND PRESIDENT
Stone Bank announced the appointment of Nick Roach as its chief executive officer on Thursday (Jan. 4). Roach, 43, was serving as the bank’s president and has been part of Stone Bank since 2010, also serving as a director.
He succeeds Marnie Oldner as CEO, who retired in December of 2023.
Roach holds a bachelor’s degree in economics and finance from Arkansas Tech University and is a graduate of the Southwestern Graduate School of Banking at Southern Methodist University.
“We are delighted to announce Nick Roach as our new CEO. His track record of accomplishments and leadership within Stone Bank has been remarkable,
and we look forward to the continued success of the bank under his guidance,” said Board Chairman Kendall Combs.
Roach has played a role in transforming the institution into a major player in the government-guaranteed loan sector. Under his leadership, the bank achieved the status of being a Top 100 SBA Lender and Top 5 U.S. Department of Agriculture lender.
He has served as the president of the National Rural Lenders Roundtable of the USDA in Washington, D.C. for the past two years. Additionally, he serves on the Arkansas Capital Corporation board.
Stone Bank has locations in Little Rock, White Hall, Harrison, Mountain View, DeWitt, and Gillett.
ST. LOUIS FED SELECTS ALBERTO MUSALEM AS
NEXT PRESIDENT AND CEO
Reid Lynch Senior Vice President, FNBB Capital Markets
The Federal Reserve Bank of St. Louis announced in January that Alberto G. Musalem will be its next president and chief executive officer. In this role, Musalem will represent the Eighth Federal Reserve District in national monetary policymaking on the Federal Open Market Committee and will lead the 1,500 employees of the St. Louis Fed.
He will begin his role on April 2, 2024, and replace James Bullard, who left the post to take a job in academia.
Musalem has a background as an economist and executive with public and private sector experience in economic policy, finance and markets.
Musalem was CEO and co-chief investment officer of Evince Asset Management LP (2018-’22), a quantitative investment technology company that he co-founded in 2018. From 2014 to 2017, he was executive vice president of the Federal Reserve Bank of New York and senior advisor to the president.
Musalem also was managing director, partner and global head of Research of Tudor Investment Corporation (2000-’13), where he was a member of the firm’s Management, Capital Allocation and Strategy committees and worked with diverse groups of portfolio managers, globally and across asset classes,
on investment strategies grounded on the relation between economic policy, macroeconomic performance and markets.
Earlier in his career, Musalem was an economist at the International Monetary Fund.
He is an adjunct professor of finance at Georgetown University’s McDonough School of Business and serves on the boards of the Federal Home Loan Mortgage Corp. (Freddie Mac) and Man Group. He will step down from these positions before taking office.
Musalem earned a Ph.D. in economics from the University of Pennsylvania. He also holds master’s and bachelor’s degrees in economics from the London School of Economics and Political Science. He was born in Bogota, Colombia, and lived in Brazil and Argentina before emigrating to the U.S. and graduating from the public school system in Maryland.
Headquartered in St. Louis, with branches in Little Rock, Louisville and Memphis, the Federal Reserve Bank of St. Louis serves the states that comprise the Federal Reserve’s Eighth District, which includes all of Arkansas, eastern Missouri, southern Indiana, southern Illinois, western Kentucky, western Tennessee and northern Mississippi.
ARVEST OPPORTUNITY FUND DISTRIBUTED
OVER $7 MILLION IN LOANS IN 2023
Arvest Opportunity Fund, a subsidiary of Fayettevillechartered Arvest Bank, assisted 245 small business customers with $7.16 million in loans in 2023. The company shared the details in a recent news release.
Launched in August 2022 across four states, the program provides loans, lines of credit and financial education to small businesses that don’t meet traditional bank credit requirements.
The program acts as a bridge for customers to eventually access traditional bank products and services.
FNBC
Of the applicants who went through the full 12-month small business loan program with the Arvest Opportunity Fund, 70% had an average increase of 41 points in their credit score.
“In order for our customers to be successful, we have to have equal focus on lending and education,” said Hillis Schild, Arvest Opportunity Fund executive director. “Although we’re still relatively early in our journey, our customers who take full advantage of the educational programming are seeing promising results. We are very proud of them as they move forward in reaching their financial goals.”
HIRES NELSON LIVELY IN SBA
LENDING DIVISION
Nelson Lively has been hired by FNBC Bank as its Business Development Officer for its SBA lending division.
“I am excited to have Nelson join our growing team of SBA lending experts,” said Edward Haddock, Senior Vice President for Small Business Lending. “I have known and worked with Nelson in the past and am confident his immense SBA knowledge will serve FNBC and its clients well.”
Lively brings more than 20 years of banking and business
development experience, most recently working as an SBA broker. In this new role, he will be responsible for developing growth strategies that increase FNBC’s production of government guaranteed SBA 7(a) loans, as well as actively prospecting and cultivating a network of strategic partnerships that generate new business opportunities for FNBC’s SBA lending division.
He will serve prospects and clients throughout Ash Flat-based FNBC’s Arkansas and Missouri footprint and beyond.
ST. LOUIS FED LITTLE ROCK BRANCH ANNOUNCES CHANGES
TO BOARD OF DIRECTORS
The Federal Reserve Bank of St. Louis has announced the following changes to its Little Rock Branch board of directors, effective Jan. 1:
Jamie J. Henry, vice president of finance, emerging payments at Walmart Inc. in Bentonville, has been elected board chair for 2024 by the Branch board of directors. He has served on the board since 2019.
Jennifer J. Anglin, senior site director of Pernod Ricard in Fort Smith, has been appointed by the Federal Reserve Board of Governors to a three-year term.
Denise Thomas, CEO of World Trade Center Arkansas, University of Arkansas, in Rogers, has been reappointed by the St. Louis Fed board of directors to a three-year term. She has served on the board since 2022.
Darrin Williams, CEO of Southern Bancorp Inc. in Little Rock, has been reappointed by the St. Louis Fed board of directors to a three-year term. He has served on the board since 2021.
Also serving on the board are:
Christopher B. Hegi, president and CEO of First Financial Bank in El Dorado; Jeff Lynch, president and CEO of Eagle Bank & Trust Co. in Little Rock; and Allison J. H. Thompson, president and CEO of the Economic Development Alliance for Jefferson County, Arkansas in Pine Bluff.
Members of the St. Louis Fed’s board of directors and those of its branch boards in Little Rock, Louisville, Ky., and Memphis, Tenn., are familiar with the economic and credit conditions of their respective regions.
Their observations — along with the economic data and information gathered and analyzed by St. Louis Fed staff — help ensure that local conditions are represented in Federal Open Market Committee deliberations in Washington, D.C.
