The Arkansas Banker Summer 2023

SUMMER 2023

VOLUME CVI, NO. 2

ARKANSAS BANKERS ASSOCIATION STAFF

President/CEO

Lorrie Trogden

VP/Controller

Carla Brinkley

VP/Professional Development

Kami T. Coleman

Office Manager

Peggy Cecere

Fundraising and Member Services Associate

Whitney Horton

Administrative Support Specialist

Abi Johnson

EDITORIAL STAFF

Editor

Roby Brock

Creative Director

Ashlee Nobel Lee Lee Arts + Design

Contributing Writers

Justin Allen, Duncan Bellingrath, Ryan Jackson, George Jared, Susannah Marshall, Richard Meneghello, Rob Nichols, Brett Taylor, and Jim Taylor

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 2022, it is estimated that 9.08% 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.

Banking

The good, the bad and the ugly from the legislative session.

Over-sharing

Why your company may need a TikTok and BeReal policy.

16

The Millennial Minute: Allison Williamson

Five Minutes With ... Kenya G. Davenport, Esq.

17

18 20 30 32 38 42

Noncompete Provisions

Changes make noncompetes trickier.

2023-24 Leadership

Our new Executive Committee and Board of Directors.

New Disability Forms

More conditions have been added to Disability Self-Identification Form.

Mark Lowery

On the recovery.

ChatGPT

Are you ready for a Brave New World?

2023 Convention sent attendees home with plenty of content for the year.

PRESIDENT’S MESSAGE

How many of you read that quote and then asked who is MacGyver? Google him. No matter your age, I think you will find it entertaining. I would like to use this quarter’s column to talk about the news and resources that make up the ABA’s “map.” Legend has it that all MacGyver needed was a paperclip, his swiss knife and duct tape – then boom! Anything could be accomplished! We are a small association doing mighty things; sometimes with anything we can find, like paperclips and duct tape. We utilize every resource we have to meet your needs and provide long-lasting value for our members.

"Mostly I like to see how the world works. Meet people. Learn how they're different - and the same." – MacGyver. This is a great quote to sum up our first-class professional development department. This summer is full of opportunities to learn and network with your peers. Our upcoming conferences include our MEGA Conference in September and our Emerging Leaders Leadership Conference in October. We took a survey for hot topic ideas, so take a look at the brochures when you get them, and you might see the topic you submitted! ChatGPT is everywhere, and we have several opportunities for education with webinars, MEGA Conference, and an article in this issue. Our goal is to provide the education you need when you need it. If you have a topic you would like to see included in a conference, school, or seminar, call us and let us know! We can also arrange speakers for you if you would like to hold in-house training.

"Well, when it comes down to me against a situation, I don't like the situation to win." –MacGyver. Spot on when it comes to legislation and regulation. The state legislative session is over, and we played A LOT of defense this session; fighting hard against bad bills. There is an article in this issue outlining the main bills that passed and affect banking, as well as a list of bills that we opposed that did not pass. If you have questions about any of those, don’t hesitate to give me a call. We will be offering education on new pertinent laws and continue publishing articles about them. When the Bureau of Legislative Research completes its summary of all new Arkansas laws, we will link to that in our eNews and on our website.

Congress remains in full swing, and I hope you have responded to the three advocacy alerts that have been in eNews over the last several weeks. (If you are not receiving eNews on Tuesdays, please let us know!)

· SAFE Act – We are in the best position on this issue than we have been in for several years. Members from both sides of the aisle have indicated that there is a willingness and commitment to move SAFE forward. A markup could come this summer before the August recess. Please utilize the link in eNews or on our website to let your Congressman and Senators know that you support the bill. The letter is pre-populated, but please add any customer stories and change the wording to your preference.

· Durbin 2.0 – Senators Marshall and Durbin recently introduced S. 4764 and Representatives Gooden and Welch introduced H.R. 8874. These bills expand government routing mandates to the credit card market. As we all know, the original Durbin amendment on debit cards did nothing to save customers money, nor will this new amendment. This legislation will force banks to do business with networks that may be less safe and reliable. Please utilize the link in eNews or on our website to let your Congressmen and Senators know that you do not support this bill, and this bad legislation that will negatively affect your customers and their constituents. Retailers are going all in on this issue, and we must counter those voices.

· 1071 Reform – Ask members of Congress to support H.J. Res. 66. The final 1071 rule is unnecessarily far-reaching and will significantly increase the compliance burden on community banks and potentially put small businesses’ privacy at risk. This is a Congressional Review Act resolution that will express Congress’ disapproval with the CFPB’s rule. Please utilize the link in eNews or on our website to voice your support.

"You don't go to people with your problems. You come to your friends."- MacGyver. When it comes to the issues we face, we want our friends that understand and support banking at the table when our industry’s fate is being decided. To do that, we must support them and help get them elected. The biggest investment you can make in our government relations program is a contribution to ABA BankPAC. We have both a federal and a state PAC, and both need your support. A reminder, the federal PAC can only take individual contributions, and the state PAC can take both individual and corporate contributions; this includes holding companies. I would love to talk with you more about holding a 13th Board meeting to support ABA BankPAC, and you should have received a letter recently detailing that effort. You will see a thank you ad in this issue recognizing those that have made contributions, and we thank you!!

In closing, "A good relationship is a lot like a car. If you want it to work smoothly, you gotta put a lot of work into it, and have the right tools." – MacGyver. The ABA team, our Board, and other volunteers work every day to find the right tools and work our relationships to ensure your “car” performs at maximum capacity to allow you to serve your community, your employees, and your customers. Never hesitate to give me a call, send a text, or email if there is a tool you need, and I hope to see you at your bank or one of our conferences this summer!

Lorrie Trogden, President & CEO

“The great thing about a map: it gets you in and out of places in a lot of different ways.” - MacGyver

Lorrie Trogden | President & CEO | Arkansas Bankers Association

CONGRATULATIONS

LEADERSHIP ARKANSAS Graduates

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

The following bankers graduated from Leadership Arkansas on May 19

SVP/Commercial Lending at Citizens Bank - Batesville

Samantha Robertson Business Development Officer at Simmons Bank - Pine Bluff

Don Gooch

Regional Director of Community Banks at Arvest Bank - Hot Springs

Ryan Moore

Market President at Signature Bank of Arkansas - Jonesboro

Elizabeth Anderson

SVP at Farmers Bank and Trust - Little Rock

Lori Walker

Chief Marketing and Communications Officer at Chambers Bank - Rogers

SVP Lending at Signature Bank of Arkansas - Springdale

Matuschka Lindo Briggs

SVP of Federal Reserve Bank of St Louis - Little Rock

John Thomas SVP/Senior Credit Officer at Citizens Bank - Little Rock

Jeremy Woody

EVP/Chief Lending Officer at Legacy National BankBentonville

Carl Kirtley

VP/Relationship Manager-Market Development at Farm Credit of Western Arkansas - Russellville

CONGRATULATIONS TO THE GSB SCHOLARSHIP WINNER

SUSAN THARP

AVP/Employment & Compensation Manager / Human Resources

FARMERS & MERCHANTS BANK / THE BANK OF FAYETTEVILLE Fayetteville

2023 HUMAN RESOURCE MANAGEMENT SCHOOL SCHOLARSHIP

Graduate School of Banking at the University of Wisconsin-Madison

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

Jerrod Sandefur

Russ Greenlee

The ABA has Unlimited Opportunities for You

Jim Taylor | Chairman | Arkansas Bankers Association

Iam humbled beyond words to serve your association this coming year. I was taught at an early age to leave everything better than you found it, so in this critical moment for our industry and our economy, I am excited for the challenge.

Some see the Arkansas Bankers Association as a provider of education and training, and yes, it is that! We provide in-person and online training classes for every aspect of banking and professional development. I just recently looked and we currently have 253 events on the 2023 ABA calendar.

Also, the Arkansas Bankers Association, along with some of the top graduate banking schools in the United States, provides an array of scholarships annually to deserving bankers in our state.

Some see the association as an advocate for Arkansas banks in Washington D.C., and yes, it is that! In D.C., we build relationships with our members of Congress, their staff, and our regulators. We nourish those relationships to have our voice heard and to be a trusted advisor on banking issues.

We have several major issues in this Congress. One at the top of that list is the SAFE Act, which will legalize the banking of the cannabis industry. Another is ACRE, which will make interest from Agricultural and Rural Housing loans exempt from federal income tax. We are constantly advocating for Arkansas banks on the federal level as well as here in Arkansas.

Some see the Arkansas Bankers Association as an advocate for Arkansas banks at the state capitol, and yes, it is that! This session has been the most challenging in memory. This session, we actively worked on, amended, defeated, or supported over 50 bills that will or could have impacted banking in Arkansas.

Some see the association as developers of young bankers, and yes, it is that! Through our Emerging Leaders Section, we foster and develop the next generation of banking leaders in Arkansas. While partnering with the UA Walton College, this year we will graduate the first class from the Arkansas Bankers Association Leadership Academy. Additionally, as you have recently heard, we are thrilled about the new internship possibilities through Bank Talent HQ!

Some see the association as a trusted source of Endorsed Vendors, and yes, it is that! We currently have over 100 associate members and endorsed vendors that we have vetted, negotiated better pricing, or just helped with your due diligence.

But we are so much more.

ABA is currently coordinating disaster assistance to help bank employees who have been affected by the tornadoes. As of this

writing, we have pledges of $319,926 and have made gifts to 32 bankers across the state. A special thank you to the Federal Home Loan Bank of Dallas for their $250,000 contribution. This will give ABA the ability to make the difference in the lives of bankers who were affected by the tornadoes. If you know of a fellow bank employee who was affected by the recent tornadoes in Arkansas, please encourage them to apply.

We support and empower Women in Banking. Recently, over 200 attended the Women in Banking Summit at the Clinton Presidential Library. Plus, you may have noticed we have a 100% female staff.

We led the PPP charge with daily/weekly calls to filter through the PPP puzzle. Frequent participants were the Governor, Congressman French Hill, SBA officials, and every bank in Arkansas as we pulled together as one.

We have a state and federal political action committee (PAC). A fact you may not know is through our affiliation with AmBA they match our federal PAC dollars effectively doubling your contributions. I know Lorrie would love to visit with you about a 13th Board Meeting at your bank to raise dollars for our PAC.

We support financial literacy through our involvement with:

• Economics Arkansas

• Get Smart About Credit

• Teach Children to Save, and

• Smart Money.

I encourage you to reach out to your local school and teach a financial literacy class. I promise you the school will be thrilled and you might even receive some CRA credits.

There are also opportunities to be involved in your local markets. ABA has three groups geographically dispersed across the state that give you the opportunity to serve ABA in your home area.

As you can see there are many ways the Arkansas Bankers Association impacts banking, far too many to mention here. To learn how ABA can benefit you, I encourage you to go to our website www.ARKBANKERS.org or pick up the phone and give the association a call.

As with most things in life, you harvest what you plant. But to reach that maximum yield, you must plow, water, and fertilize your crop. I challenge you to maximize your “ABA Yield” and take advantage of all that we have to offer.

Only with your cultivation, hydration, and nourishment can we make the association the best it can be.

Calendar of Events

JULY - SEPT 2023

July

August

THURSDAY 10 A.M. –12 P.M. UNDERSTANDING

BANK PERFORMANCE

The ABA, in partnership with other bank associations around the country, is proud to offer our members this exciting training opportunity! Participants will learn how to assess and analyze a bank’s financial performance by working with data from real institutions…and much more! In the final session of this course, participants will put what they have learned into practice. Participants will analyze a new data set, rate the bank’s performance and suggest strategic adjustments that might benefit the bank.

INSTRUCTOR: Duncan Taylor

LOCATION: Virtual

26

WEDNESDAY 9 A.M.–4 P.M.

LOAN ASSISTANTS & PROCESSORS WORKSHOP

This seminar is designed to provide lending knowledge and administrative effectiveness of one of the most important positions in a community bank’s lending staff – the loan assistant/loan processor. All of the objectives of this program are directed at increasing the performance effectiveness of these individuals. This session is perfect for loan assistants and loan processors, credit administration supervisors, and other members of the bank’s loan support staff with credit administration responsibilities.

INSTRUCTOR: Ron Rushing

LOCATION: Arkansas Bankers Association

THURSDAY 9 A.M.–4 P.M.

01 06

FOUNDATIONS FOR COMMERCIAL LENDING

This event is designed to provide an overview of commercial lending t. You will learn the necessary skills to analyze, and if required, approve a business loan. The program is organized by first evaluating a credit through financial analysis to assess the risk reward relationship. Following the financial assessment portion of the program, participants will dive into the elements of managing business relationships profitably and under approved risk guidelines. Participants will have exposure to assessing loan suitability, structuring a loan and developing a sound lending understanding upon which to build comprehensive commercial and business relationships.

INSTRUCTOR: Ron Rushing

LOCATION: Arkansas Bankers Association

27 31

TUESDAY 10 A.M. –12 P.M.

BI-MONTHLY COMPLIANCE BRIEFING – AUGUST

Keeping up with changes and deadlines in the compliance area gets more complex every year. This series includes bi-monthly (6), two-hour webinars focused on the most recent changes to the compliance landscape. Carl Pry, a well-known and highly respected compliance expert and recipient of the 2015 ABA Distinguished Service Award will address new items to be aware of, deadlines, and what’s on the horizon. In a simple language webinar format that you can view from your office, Carl will make sure you have the information you need to keep your financial institution in compliance.

INSTRUCTOR: Carl Pry LOCATION: Virtual

THURSDAY 9 A.M.–4 P.M.

HAVE

A GREAT

Summer!

BANK DIRECTORS WORKSHOP: BANK BOARDS THAT MAKE A DIFFERENCE

Board education and training are essential best practices in the new era of community banking. This session will take a look at the primary responsibilities of today’s bank board members. We will cover the current performance of Arkansas banks, with a comparison to banks nationally and the individual banks in attendance. Directors are increasingly asked to be knowledgeable of the regulatory requirements of the industry.

INSTRUCTOR: David Kemp

LOCATION: Arkansas Bankers Association

07

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

THURSDAY 8:30 A.M.–4 P.M. BREAKING INTO BANKING 201: ANALYZING REPAY SOURCES

This is a sequel to the Breaking into Banking 101 course. This course includes a case study and dives deeper into topics including: analyzing a borrower’s balance sheet, income statement, collateral, and risk ratings. Most appropriate for credit analysts, lenders, portfolio managers, and others who need skills in financial statement analysis and writing credit documents.

INSTRUCTOR: Andy Keusal

LOCATION: Virtual

18 22

MONDAY 8 A.M. –

FRIDAY 8:30 A.M.

2023 GSB FINANCIAL MANAGERS SCHOOL

Designed by experienced CFOs especially for financial mangers, this prestigious school goes beyond the basics to present best practices and provide community financial institution financial managers the tools to build a solid foundation in asset/ liability management. Learn the unique concepts and terminology of bank finance and asset/ liability management along with the practical implementation tools to profitably manage a financial institution’s balance sheet, develop effective strategies, and communicate strategies to the board and senior management that ensure effective decision-making.

INSTRUCTOR: Graduate School of Banking

LOCATION: Fluno Center for Executive Education, Madison, WI

25 29

MONDAY 8 A.M. –FRIDAY 5 P.M.

2023 GSB SALES AND MARKETING SCHOOL

There are schools and conferences focused on marketing. Others target sales. GSB’s innovative School of Sales and Marketing integrates these two vital disciplines into one practical dynamic week. Designed by bankers and those with in depth knowledge of our industry, this program pinpoints key marketing and sales activities from the customer experience and branding to prospecting, sales management and the ROI of marketing and sales action plans.

INSTRUCTOR: Graduate School of Banking

LOCATION: Fluno Center for Executive Education, Madison, WI

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.

AMERICA’S BANKS ARE Stronger Together

The U.S. banking system has long been the envy of the world. The reasons for this are many, but at the core, it’s because our nation has cultivated a vibrant, thriving financial services sector made up of banks of all sizes, charters, business models and risk profiles.

Each one of these institutions has an important role to play in the overall economic ecosystem: from the community bank guiding a family through the purchase of a first home, to the midsize bank helping a small business manage its cashflows, to the regional bank providing commercial loans to promote the building of new retail centers and office spaces, to the large, globally active institution that supplies credit to multinational firms that provide thousands of jobs in the U.S.

The breadth and diversity of our financial services sector is something no one should ever take for granted.

That’s why ABA joined forces with the nation’s 51 state bankers associations to deliver a powerful message to members of Congress in the aftermath of the Silicon

Valley Bank and Signature Bank failures in March: the U.S. banking system remains the deepest and most resilient in the world, and policymakers in Washington need to keep it that way for the good of the country. That message continues to hold true in the wake of the unfortunate failure of First Republic Bank in early May.

The sudden and swift collapse of these institutions is something that both banks and bank policymakers can and must learn from. But in recent days, there have been some in Washington who have seized this opportunity to advance misguided policy proposals—many of which have nothing to do with the failures of these banks. These include proposals that would make it significantly harder for community banks to compete, and new capital requirements for larger banks that would limit their ability to lend at a time of economic uncertainty.

The policy response to these failures should not place America’s competitive, thriving banking system at risk. Rather, we must seek solutions that preserve that competitive landscape and ensure that banks of all sizes with diverse business models are

allowed to compete and succeed in serving the needs of their communities.

To achieve that goal, we all must stand together as an industry, and resist efforts to divide us.

Past experience has taught us that we are stronger and most effective in our advocacy when we speak with one voice, and that there can be harmful consequences when we don’t.

In the days to come, there will be many conversations about the future of banking regulation, about potential changes to the deposit insurance system and what we can do to preserve the depth and diversity of our banking system.

By speaking with a united voice on these and other issues, we can move our industry forward and work with policymakers to understand what happened at SVB, Signature and First Republic, but, even more importantly, we can reinforce the overwhelming strength and resilience of the U.S. banking sector and lift up the work our nation's banks do every day to make our communities better.

Email Rob at nichols@aba.com.

Rob Nichols | President and CEO | American Bankers Association

“ABA joined forces with the nation’s 51 state bankers associations to deliver a powerful message to members of Congress in the aftermath of the Silicon Valley Bank and Signature Bank failures in March.”

The RegulatoryLandscape

In today’s economic environment, the regulatory landscape may once again be at the forefront in Arkansas bankers’ minds. I appreciate that overall, Arkansas bankers always have the regulatory landscape top of mind, but I am hearing more commentary (I could say “concerns”) lately about how recent changes may impact the landscape of our financial institutions. It is fair to say that the banking industry is subject to robust regulatory oversight and engagement, both at the state and federal levels. However, when the economy is strong, consumer confidence is good, and businesses are operating at a high level, the banking industry’s performance is reflective of these conditions.

The recent changes in the economy, which include rapid interest rate increases and an elevated level of inflation, have begun to place pressure on certain financial metrics within the banking industry. Banks have experienced a lengthy period of asset growth and strong financial performance. This includes favorable earnings coupled with capital formation and appropriate levels of liquidity. As a result, we have witnessed a period of sound asset quality, overall positive supervisory findings, and exceptional regulatory ratings. However, we are beginning to witness a different trend in bank performance and the need for additional regulatory oversight because of the negative impact on the economy and changes in bank performance.

Through the first quarter of 2023, earnings pressures continue to increase, which indicates a heightened concern about prospects in the coming months for the industry. As such, an analysis of earnings during

upcoming supervisory events may be elevated for some financial institutions, particularly those experiencing a decline in financial performance. In addition, concentration risk can be significant and impactful to some institutions, and this is a concern that I have expressed in previous correspondence.

continue to evaluate changes within primary and secondary funding sources and bank management’s response to those changes. Lastly, areas such as consumer compliance, cybersecurity preparedness, Bank Secrecy Act compliance and third party or vendor risk will remain priorities during future examinations.

One area of concentration risk is commercial real estate (CRE) which is one of the most common types of concentration risk within Arkansas financial institutions. Although we are not identifying deterioration within asset markets or asset classes at this point, there will be continued regulatory focus on institutions that maintain above average CRE levels or report rapid growth in a particular asset class. On the opposite side of the balance sheet, funding concentrations or reliance on non-core or wholesale funding sources, or a notable shift in funding elements will remain a concentrated area of focus for regulatory oversight. It is especially important that financial institutions fully assess liquidity needs, available funding sources and contingency funding plans, and employ risk-focused actions and appropriate testing.

Regulators are identifying, and banks are reporting, declining trends of on-balance sheet liquidity. As a result, examiners will

Although this list appears long, I am confident that overall our Arkansas banks will work to ensure that these and other risks receive the appropriate amount of attention and oversight. One of the key responses that board members and management can take now is to internally identify and prioritize known weaknesses, variances to budgeted data versus actual performance, and any areas of diminished operations.

Being prepared to engage in robust discussions with your examiners so they can gain insight and understand changes in your financial conditions will be impactful to a regulatory evaluation. Examiner outreach and enhanced communications may occur more frequently and outside of the typical examination cycle as changes occur. As always, the Arkansas State Bank Department is available and willing to engage with you and your staff for opportunities to share dialogue and engagement on all regulatory matters.

“An analysis of earnings during upcoming supervisory events may be elevated for some financial institutions, particularly those experiencing a decline in financial performance.”

Susannah Marshall | Commissioner | Arkansas State Bank Department

THE MILLENNIAL MINUTE with Allison Williamson

Financial Center Manager III

Simmons Bank, Marshall

CAN YOU TELL US A LITTLE BIT ABOUT YOURSELF?

I’m Allison Williamson, and I’m the Financial Center Manager in Marshall, Arkansas. I was born and raised in Marshall where I went to school in the Searcy County School District and I’m a proud Marshall Bobcat. After high school, I went to the University of Central Arkansas for a year and finished my bachelor’s degree in Business Administration at Arkansas Tech University. After graduation, I returned to my roots of Searcy County. I’m grateful to my parents Lynda and Jackie Hensley for providing for my sister and me and paving our future with opportunities and knowledge of what hard work can help you achieve. My mother was a banker for many years and her experience gave me the chance to see banking from a different outlook than most. As a result, I had an opportunity at 18 years old to work as a part-time teller while in college. After about three months in banking, I changed my college major to Business Administration knowing this was what I wanted to do as a career. I never looked back and am fully committed to banking as my career choice. I now have two children, Whitley and Walker, who I hope I can show the same qualities my parents showed me through my banking knowledge and career and the great core values Simmons helps me represent in this community.

WHAT’S YOUR FAVORITE THING ABOUT WORKING AT A BANK IN A SMALL TOWN?

My favorite thing about working at a bank in a small town is waking up every day knowing that I am going to make a difference for either the town I love or the residents that make this town what it is. Simmons is giving me the opportunity to invest in the town my children are being raised and helping the community continue to grow.

WHY ARE YOU INVOLVED IN THE EMERGING LEADERS SECTION?

I chose to be involved in Emerging Leaders because I believe providing young leaders with resources that help them advance the industry and themselves makes for a brighter future. This year, Simmons Bank celebrated 120 years of serving our customers. We’ve built a foundation on great customer service and giving back to the community.

HOW WOULD YOU DESCRIBE YOURSELF AS A CHILD?

If you were to ask my peers and parents how they described me as a child, I believe you would likely hear the word “bossy.” They wouldn’t be wrong, but I like to think I have turned that trait into a strength and would now say “I’m a leader,” who is focused and passionate.

WHAT IS SOMETHING YOU REGRET NOT HAVING STARTED SOONER?

If I could start anything in my life sooner, it would be letting go of the need to be understood and liked by everyone. My character is who I am and it belongs to me and me alone. I spend my efforts towards becoming the best version of myself and letting my light shine authentically.

WHAT IS THE BEST ADVICE YOU HAVE EVER BEEN GIVEN?

The greatest advice I have ever been given was by my great-grandfather, Bob Lamb. He told me, “The only thing you have control over in any room is your effort, so you need to make sure that you are working the hardest out of everyone in the room.” I make this a priority and strive to set an example for my team.

HOW DO YOU CONTINUE TO DEVELOP AS A BANKER AND LEADER?

I try to take any opportunity to learn a new skill or job when the opportunity presents itself, even if it’s a job no one wants to do. I have learned throughout my career when you do the work no one wants to do, at some point you get the opportunities everyone wants. Growth comes through consistently following through on tasks that some people pass over. I have spent a lot of my career doing the work no one wants because consistency and being a lifelong learner helps you grow and hopefully provides a steppingstone to a greater opportunity in my career.

The views and opinions expressed in this article are those of Allison Williamson and are not endorsed by, and do not necessarily reflect the views of Simmons Bank. Simmons Bank does not provide tax, accounting or legal advice.

Emerging Leaders Experience Capitol in Session

The Emerging Leaders Section of the Arkansas Bankers Association offers several events throughout the year. Since our State Legislature was in session earlier this year, we thought what better time to organize a day at the state capitol? A large group of Emerging Leaders spent the day touring the Capitol to actively observe enlightening committee meetings, engage in meaningful conversations with our state representatives and senators, and had the privilege of witnessing a legislative session firsthand.

Each of us likely visited the Capitol at some point in our lives. For some, it was during a junior high field trip, where the day's highlight typically revolved around escaping the confines of the classroom or finding a pleasant spot for lunch. However, revisiting the Capitol as an adult provided a whole new perspective on the legislative process. During our visit, we gained a better understanding of how a bill is conceived, developed, and ultimately presented on the floor. It granted us a profound appreciation and

deeper understanding of our state senators and representatives pivotal roles.

In the 2023 session alone, 1,660 bills were introduced with 890 of them reaching completion. These figures emphasize the immense responsibility shouldered by our state's 35 Senators and 100 House Representatives. Understanding our elected leaders’ roles and political advocacy’s importance is crucial. Their duty involves careful consideration, debates, weighing the potential consequences—both positive and negative—casting informed votes, and much more for each bill presented.

Education and promotion of political advocacy are key areas of emphasis for the Emerging Leaders Section this year. To actively engage in these efforts, it's important to familiarize yourself with your local senators and representatives and their roles. I highly encourage you to directly connect with them or reach out to your local chamber for opportunities to meet them. Rest assured, they genuinely value meeting and listening to their constituents.

Duncan Bellingrath | President | Emerging Leaders Section

“In the 2023 session alone, 1,660 bills were introduced with 890 of them reaching completion. These figures emphasize the immense responsibility shouldered by our state's 35 Senators and 100 House Representatives.”

LEADERS

The views and opinions expressed in this article are those of Duncan Bellingrath and are not endorsed by, and do not necessarily reflect the views of, Simmons Bank. Simmons Bank does not provide tax, accounting, or legal advice.

ELS EXECUTIVE COMMITTEE

DUNCAN BELLINGRATH PRESIDENT

SIMMONS BANK

Hot Springs Group 3

IAN BRYAN SECRETARY/ TREASURER

SIMMONS BANK

Russellville Group 2

ELS COUNCIL MEMBERS

AARON BELL AT LARGE

FIRST SECURITY BANK

Jonesboro Group 1

TAMMY ENGLE

ARVEST BANK

Siloam Springs

Group 2

AMBER MURPHY AT LARGE

FIRST FINANCIAL BANK

El Dorado Group 3

BRANDI RAY

FARMERS BANK AND TRUST COMPANY

Malvern Group 3

LATRECIA BRANCH

VICE PRESIDENT

STONE BANK

Little Rock Group 1

CHANCE ROBBINS

CS BANK

Eureka Springs

Group 2

RHETT SHEPARD

CENTENNIAL BANK

Little Rock

Group 1

LAUREN STATON

RELYANCE BANK

White Hall Group 3

ALLISON WILLIAMSON AT LARGE

SIMMONS BANK

Marshall Group 2

EMERGING LEADERS

minutes with...

VE

FIVE

Kenya G. Davenport, Esq. Chief of Staff / SVP of Stakeholder Engagement Southern Bancorp, Little Rock

Q. HOW DID YOU GET STARTED IN BANKING?

A. I had an unconventional path into banking. I started in Finance as a Financial Planner with Edward Jones in Houston, Texas. Of course, to obtain the appropriate licensure for being a Financial Planner you have to study a large body of regulatory laws. I found that I had a higher interest in the law that governed the financial industry, so I went to law school and focused on Business and Finance Law. After passing the bar exam, I worked with Carney Williams law firm that specialized in consumer class action against banks and other financial institutions. So, I was on the other side of the table for a while. The managing partner for that law firm left to become the CEO of Southern Bancorp, Inc. Years later, I joined him at Southern Bancorp.

Q. WHAT’S SOMETHING YOU’VE LEARNED OVER YOUR CAREER THAT YOU’VE CARRIED WITH YOU?

A. Every experience, good or bad, great or small, is an opportunity to learn and sharpen your skills. We are well advised to take advantage of those opportunities.

Q. WHAT PIECE OF ADVICE DO YOU WISH YOU HAD KNOWN WHEN YOU STARTED YOUR CAREER?

A. That the path is not straight and doesn’t always have nice scenery.

Q. YOU’VE SERVED ON THE ABA BOARD OF DIRECTORS, WHY DO YOU FEEL SERVICE TO THIS ORGANIZATION IS IMPORTANT?

A. I One of the best things about our state is the number of community banks serving our communities. Consequently, Arkansas banks and bankers have their hand on the pulse of the people. Simultaneously, they have seats at the largest and most influential tables in the state. Being effective as a bridge, I believe is our charge and the guidepost for that work is through the ABA. It has been my honor to participate at the board level.

Q. WHAT IS THE BEST ADVICE YOU EVER RECEIVED?

A. Always make the ask. You can be told yes or no. If you are told no, ask to speak to someone else. This was my mother’s way of explaining that I should not be afraid to ask and to never take no for an answer.

Q. HOW WOULD YOU SPEND ONE MILLION DOLLARS?

A. I would donate it.

Q. IF YOU COULD HOST A TALK SHOW, WHO WOULD BE YOUR FIRST GUEST?

A. Michelle Obama. “ Always make the ask. You can be told yes or no. If you are told no, ask to speak to someone else.”

NONCOMPETE PROVISIONS AGAINST

Wages On THE War

by Justin Allen

The topic of noncompete provisions in employment agreements has been at the forefront recently. The Federal Trade Commission recently proposed a rule to outright prohibit such provisions with final action pending as of the date of publication. Additionally, legislation was filed in the recent legislative session in Arkansas to effectively prohibit noncompete agreements in the employment context. (HB1628). That bill failed in House committee.

Now, the National Labor Relations Board (NLRB) has entered the fray. General Counsel for the NLRB issued a memo on May 30th asserting the position that many, if not most, noncompete provisions in employment agreements violate the National Labor Relations Act.

The memorandum states that noncompete agreements violate the law as follows:

• They chill employees from concertedly threatening to resign to demand better working conditions;

• They chill employees from carrying out concerted threats to resign or otherwise concertedly resigning to secure improved working conditions;

• They chill employees from concertedly seeking or accepting employment with a local competitor to obtain better working conditions;

• They chill employees from soliciting their co-workers to go work for a local competitor as part of a broader course of protected concerted activity; and

• They chill employees from seeking employment, at least in part, to specifically engage in protected activity with other workers at an employer’s workplace.

While the memo is fairly brief and general in nature, it does contain some language that provides a small amount of guidance. For instance, it states that provisions may be lawful if they “clearly restrict only individuals’ managerial or ownership interests in a competing business, or true independent-contractor relationships.”

Additionally, non-compete agreements protecting an employers’ proprietary information or trade secrets may be considered a legitimate business interest if supported by narrowly tailored provisions. The seniority of the worker and his compensation are to be considered. For instance, noncompete agreements for low-to-middle wage workers who are not privy to trade secrets or other protected interests are invalid.

The memo directs NLRB regional to submit cases concerning “arguably unlawful” non-compete agreements to the NLRB Division of Advice. Those cases will then be submitted to the members of the NLRB Board for consideration.

To the extent a bank, or any other business, utilizes noncompete provisions in employment agreements, this memo must be considered. It would seem that provisions applied to high ranking individuals with access to trade secrets or proprietary information may be safe.

On the other hand, such provisions applied to low and middle wage individuals with no access to such information are likely not. But, each situation will turn on its own facts. Every employer that utilizes noncompete provisions should consult with counsel about the NLRB memo and its potential impact on existing and future agreements with employees.

“General Counsel for the NLRB issued a memo asserting the position that many, if not most, noncompete provisions in employment agreements violate the National Labor Relations Act.”

EXECUTIVE

CHAIRMAN JIM TAYLOR

COMMITTEE

Jim Taylor is Senior Vice President at First Security Bancorp in Rogers. Prior to transitioning to the holding company, Taylor was the Regional President of First Security Bank with management oversight of all operations in Northwest Arkansas, including retail and commercial banking activities at 16 full-service banking centers. He started with First Security Bank in April 1998 opening a Loan Production Office in Fayetteville and oversaw First Security’s expansion into Northwest Arkansas.

Taylor attended Arkansas Tech University, where he earned his BS in Agricultural Business.

Taylor is a member of the Government Relations Advisory Committee for Arkansas Bankers Association, Advisory Board for Arkansas Tech University School of Business, the American Bankers Association Membership Council and Commercial Real Estate Committee, Law Enforcement Assistance Program, and serves as the General Volunteer Chairman for the LPGA NWA Championship.

CHAIRMAN-ELECT BRAD CHAMBLESS

Brad Chambless is Chief Executive Officer and President of Farmers and Merchants Bank and the Bank of Fayetteville. Chambless joined Farmers and Merchants Bank in 2006 where his roles there included Executive Vice President and member of the Board of Directors. He is a graduate of Dumas High School and received his undergraduate degree from the University of Arkansas at Monticello. He went on to earn a law degree from the University of Arkansas at Fayetteville, practicing law in Arkansas for 10 years before entering the banking industry.

Chambless is active throughout the regional community as a board director of Acres of Help, Inc., the Arkansas County Imagination Library, the Stuttgart Rotary Club and the Arkansas Bar Association. Chambless also formerly served as a foundation board member for the Phillips County Community College of the University of Arkansas, member of the Arkansas Bankers Association agricultural sub-committee and director and vice chairman of Arkansas Capital Corporation.

VICE CHAIRMAN CHRIS GOSNELL

Chris Gosnell joined Farmers Bank & Trust in 2010 and was elected President and CEO on January 16, 2017. Chris brought with him 6 years of banking experience from Northwest Arkansas when he joined the Bank and previously served as President and Chief Banking Officer for Farmers Bank & Trust.

Gosnell received his Bachelor of Arts in Administrative Management from the University of Arkansas in 2003, as well as his Master of Science in Operations Management in 2005. He graduated from the Graduate School of Banking at Colorado and serves on the Arkansas Bankers Association Board of Directors. In addition, Gosnell was named in Arkansas Business’s 40 Under 40 list for 2015.

Involved in numerous community activities and organizations which include: Leadership Fayetteville Graduate, 2009, Ducks Unlimited Local Board Member, Fayetteville Chapter, 2007 to 2010, Leadership Saline County Class XI, 2011, Arkansas Business 40 under 40, Arkansas Bankers Association Director, Texas Bankers Association Government Relations Committee, Southwest Arkansas Water District Director, Rotary Club of Magnolia, AR, Finance Committee – First United Methodist Church, Magnolia, AR, Southwest Arkansas Water District in Texarkana; Board Member, FBI 2018 Citizens Academy, Arkansas Game & Fish Foundation; Board Member and Arkansas State Police Foundation; Board Member.

TREASURER SCOTT SAFFOLD

Scott Saffold serves as the EVP/Chief Lending Officer at Union Bank & Trust Company, Monticello. He is a member of the executive management team responsible for the implementation and development of strategic initiatives for the bank, for eighteen years. He also serves on the Trust and ALCO committees and is a Certified Public Accountant, graduate of the Southwestern Graduate School of Banking as SMU, ABA Commercial Lending School, and numerous other banking courses.

Graduate of Leadership Arkansas Class V and graduate from University of Arkansas at Monticello, BS Accounting, a Monticello native, Scott is actively involved in the local community, and currently serves on the following: Vice Chairman of the University of Arkansas Foundation Fund Board and a member of the Executive and Audit Committee, Vice Chairman of the UAM Board of Visitors, and UAM Foundation Fund Board.

PAST CHAIRMAN RANDY SCOTT

Randy Scott is President and CEO of Farmers Bank and Trust in Blytheville. He has been in banking for 34 years, including the last 23 years with Farmers Bank and Trust. Scott, a Southeast Missouri State University graduate with a major in finance and minor in accounting, is also a graduate of the Graduate School of Banking of the University of Colorado. Randy Scott served as Chairman of the State Bank Board in 2019, where he continues to serve on the board. In addition, he serves on the Board of Trustees at Arkansas Northeastern College, a two-year institution whose main campus is in Blytheville.

His previous community involvement includes being a member of the Board of Directors of the Greater Blytheville Area Chamber of Commerce. He served on the Chamber Executive Committee and then as President of the organization. Scott has also served on the Board of Directors of the Blytheville Baseball Boosters Club, on the Board of Directors of the Great River Medical Center, Chairman of the Board of Directors of Great River Economic Development, and President of Blytheville Unlimited.

2023-24 ABA

BOARD OF

HEATHER ALBRIGHT

SVP/Sr. Relationship Manager/ President, Bank of America Arkansas

GLOBAL COMMERCIAL BANKING, BANK OF AMERICA

Little Rock | Group 1

DUNCAN BELLINGRATH President

SIMMONS BANK

Hot Springs | Group 3

ASA COTTRELL

SVP/Sales Manager

ARVEST BANK

Little Rock | Group 1

JOE DUNN

SVP & Sr. Lending Officer

STONE BANK

Little Rock | Group 1

ROBERT HUSONG President

FIRST NATIONAL BANK OF NWA Rogers | Group 2

KATHERINE MITCHELL

SVP – Bank Services

RELYANCE BANK

White Hall | Group 3

BRANDI RAY

AVP/Commercial Loan Officer

FARMERS BANK & TRUST COMPANY

Malvern | Group 3

GABE ROBERTS

VP/Loan Officer

FIRST COMMUNITY BANK

Jonesboro | Group 1

DIRECTORS

LORI ROSS

City President

CITIZENS BANK

Arkadelphia | Group 3

JOE RUDDELL President

GENERATIONS BANK

Rogers | Group 2

LOREN SHACKELFORD

President/

Chief Lending Officer

CHAMBERS BANK

Fayetteville | Group 2

JASON TENNANT

President/Chief Lending Officer

CS BANK

Eureka Springs | Group 2

ROB S. TIFFEE

Senior Vice President

REGIONS BANK- PRIVATE WEALTH MANAGEMENT

Little Rock | Group 1

SCOTT WALKER

Market President

FIRST FINANCIAL BANK

El Dorado | Group 3

JAY WISENER

President/Arkansas Region

FIRST NATIONAL BANKERS BANK

Little Rock | Group 1

New Disability Forms Required for Contractors

by Brett Taylor

This summer, federal contractors and subcontractors must begin using a revised Disability Self-Identification Form CC-305 (the revised form) for applicants and current employees to self-identify as an individual with a disability. The revised form replaces the current

version of the form that expired on May 31, 2023. The changes include several straightforward plain language edits, but also an expanded list of conditions that qualify as disabilities.

For background, Section 503 of the Rehabilitation Act of 1973, which is enforced by the U.S. Office of Federal Contract Compliance Programs (OFCCP), prohibits federal contractors and subcontractors from discriminating against individuals with disabilities and requires employers take affirmative action to recruit, hire, promote, and retain these individuals. As

part of that aim, Section 503 requires contractors to offer job applicants, during both the pre-offer and post-offer phases of the hiring process, the opportunity to self-identify as an individual with a disability using the OFCCP’s official invitation, Form CC-305. Contractors are further required to resurvey their workforces at least once every five years, as well as issue at least one reminder between invitations. Importantly, federally-insured financial institutions are considered federal contractors for purposes of Section 503.

On April 25, 2023, the Office of Management and Budget approved the OFCCP’s revised form which replaces the current version of the form that expired on May 31, 2023. According to the OFCCP, the revisions have been made to “update the preferred language for disabilities and to include additional examples of disabilities.” More specifically, the revised form adds the following conditions as disabilities:

• Alcohol or other substance use disorder (not currently using drugs illegally)

• Mobility impairment benefiting from the use of a wheelchair, scooter, walker, leg brace(s) and/ or other supports

• Neurodivergence (i.e., attentiondeficit/hyperactivity disorder (ADHD), autism spectrum disorder, dyslexia, dyspraxia, other learning disabilities)

• Partial/complete paralysis

• Pulmonary/Respiratory conditions, such as tuberculosis, asthma, emphysema

• Short stature (dwarfism)

• Traumatic brain injury

The OFCCP also amended previously listed disabilities of cancer, deaf/hard of hearing, epilepsy, and intellectual disability as follows:

• Cancer (past or present)

• Deaf or serious difficulty hearing

• Epilepsy or other seizure disorder

• Intellectual or developmental disability

Because the revised form provides additional and expanded disabilities that employees may not have considered when completing earlier versions of Form CC-305, an increase in the number of employees who identify as disabled is expected. For those larger federal contractors, the increase could help them in meeting the OFCCP’s 7% utilization goal, which is the aspirational goal used to measure the success of a contractor’s efforts in outreach to and recruitment of individuals with disabilities.

As to less substantive changes, the OFCCP revised Form CC-305 to make it clear that completing the form is voluntary, whereas previous versions stated identifying as a person with a disability was voluntary. The OFCCP also made slight plain language revisions to the check-box at the end of the form.

Financial institutions subject to Section 503 should move quickly to implement the revised form and incorporate it into their existing systems and processes, which could include updating any references to the form in employee handbooks, manuals, and the like. Of course, all information received regarding self-identification should be kept confidential and maintained in a data analysis file, separate from personnel and medical files. The revision also serves as a good reminder for federally-insured financial institutions to be diligent in conducting their 5-year resurveys and, in the interim, remind their employees that they may voluntarily update their disability status at any time.

Contractors have until July 25, 2023 to implement the updated Form CC-305 into their hiring and retention processes. The revised form expires on April 30, 2026.

Section 503 requires contractors to offer job applicants, during both the pre-offer and post-offer phases of the hiring process, the opportunity to self-identify as an individual with a disability using the OFCCP’s official invitation, Form CC-305.

The revision also serves as a good reminder for federally-insured financial institutions to be diligent in conducting their 5-year resurveys and, in the interim, remind their employees that they may voluntarily update their disability status at any time.

Editor’s note: Attorney Brett W. Taylor is a director with the Little Rock-based law firm of Cross, Gunter, Witherspoon & Galchus, P.C.

GOV. SARAH

HUCKABEE SANDERS

Photography by Amy Bell

Southern

GOV. SARAH HUCKABEE SANDERS IS HAPPY TO BE HOME IN ARKANSAS

by Roby Brock

Ask Arkansas’ 46th governor the best part of being back in state and you’ll get a laundry list of responses regarding family, friends and familiarity with the Natural State.

Sarah Huckabee Sanders, who was elected in November as the state’s first female governor, is happy to be home, happy for her kids, and happy to have a job where she feels she can make a difference.

“Arkansas is home, so it just feels different. My family is here, my long-time friends are here, and there's a different comfort level that comes with being at home. I also love that people are nice in Arkansas. I say all the time, we have amazing things here in the state, but the people here are our greatest asset,” Sanders said in a recent interview in the governor’s suite at the Arkansas state capitol.

Though the experience of serving as White House Press Secretary in the Trump administration was a privilege, everyday life and raising a family with her husband, Bryan, was a challenge in the nation’s capital.

“While D.C. can be a great place and I loved my time there, I couldn't get out of there quick enough. We joke in our family, everybody refers to D.C. as ‘the swamp,’ and that's kind of insulting to the swamp, because it's so unbelievably politically polarized that you can forget anything meaningful really taking place there,” she said.

In Arkansas and as governor, it’s different.

“We get to see things. You can see a problem, address a problem, come up with a solution, and actually see it enacted very quickly at the state level. So I feel like the things that we were able to do, even

during this first session, are going to really impact people's lives for the better. And knowing that you get to be part of that every day is pretty amazing.

“I also get to go home on a regular basis and see my kids and have dinner with them at night and breakfast with them in the morning before they head off to school. I get to be at their basketball and football and baseball and tennis. We play a lot of sports. I get to be at all their activities and things like that, which is important to me for my kids to know that no matter what work I'm doing, they're still a priority and still going to be the top priority for me. At the same time, they also get to see the work I'm doing up close and personal and be part of it in a way that was harder to do in D.C.” Sanders added.

Sanders campaigned across the state for two years before she was elected. The daughter of former Arkansas Gov. Mike Huckabee, Sarah Sanders had the benefit of seeing the state in her youth and now in adulthood on the campaign trail. Those years of travels ingrained the importance of big cities and small towns to every community in the state. She says that local banks are a critical backbone to communities of every size.

“You have so many small towns, so many communities that probably every football field in the state, any little league field in the state, you're going to see the scoreboard or the field was probably sponsored by the local bank. Bank employees are investing into those communities, and people recognize them. Those are the people who are helping support a lot of community activity,” she said. “They also help support the financial sector of our entire state. I mean, we've got over 25,000 people who work in the banking industry. We have over

PREVIOUS SPREAD: (from left) Governor Sanders welcomes kids back to school in Wynne, Arkansas, on Wednesday, April 12, 2023 for their first day back since the March 31 tornadoes.

Governor Sanders, First Gentleman Bryan Sanders, and Arkansas State Park Rangers at Pinnacle Mountain State Park.

Governor Sanders cuts the ribbon to officially inaugurate The Orthopedic and Spine Hospital (TOSH) at UAMS.

Photography by Randall Lee

ABOVE PHOTO: Governor Sanders signs legislation to lower the state income tax and phase out the throwback rule.

Photography by Randall Lee

80 banks, community banks, that are based here in the state. It's a booming and strong sector for us. So not only the investment they're making locally, but collectively the investment that they make for the state is a big deal and a big impact.”

While this legislative session dealt with high-profile issues such as education, public safety and tax cuts, there were scores of bills affecting the financial industry. Sanders said it’s important to her to have the input of the banking sector on legislation impacting the industry before making decisions.

“I feel like anytime you're making a decision that impacts an industry like that, that has such a pivotal role in your state, you obviously want to bring the stakeholders to the table. And I'm thankful we have

“ the things that we were able to do, even during this first session, are going to really impact people's lives for the better. ”

great relationships with a lot of the banking leadership across the state of Arkansas,” said Sanders. “I think we have a fantastic commissioner, Susannah Marshall, who does an amazing job, has great relationships. I’m able to rely and lean on them for good feedback and honest, candid feedback. I have a handful of bankers that I can call that I know are going to shoot me straight. And that's another great thing about Arkansas. You can call one banker and they're going to lay it down for you real quick. And I actually appreciate that.”

Candor is appreciated with this governor and she is not shy to express her support for financial leaders in her administration, notably the aforementioned Commissioner Marshall and Secretary of Commerce Hugh McDonald, whose agency houses the state Bank Department.

"I think they both have kind of a unique background and compliment each other well. I love the fact that Hugh spent so much time in the private sector, and he's able to bring that private sector experience into state government. He can pick up the phone and call the CEO of a major company, and they see each other as peers. And that is, I think, really important for our state. And it's, I think, critical for the role that he's playing," she said.

"And Susannah Marshall has been engaged in public service and state government for awhile, so that balances out, I think, pretty well... I sound like a broken record, but she has outstanding relationships across the state and in the banking industry. I was teasing her, I saw her a couple weeks ago at an event, and I said you know, it's interesting that the banking community has so many opinions on so many things, and so many times they're vastly different. However, one thing they all had in common was every single one of them came and said, 'Do not mess with Susannah Marshall.' I was like, 'Okay, fair enough. I got it. I heard you guys loud and clear.' She's just so highly respected and, again, has great relationships," Sanders said.

To emphasize the pace of life in Arkansas, Sanders was leaving this interview and headed into a meeting with a group of lawyers to discuss state business, but she managed to make time for her sister-in-law and young nephew, who happened to be in the neighborhood, to show them around her capitol office and the governor’s conference room. Before departing, she added one more comment about banks that highlight her recognition of the industry and its impact on the state.

“I’m proud of the fact that we have so many people that are engaged in this space and that they continue to stay in Arkansas,” she said. “There are a number of our banks that are based here that, frankly, could be other places, and they aren't. They’ve stayed right here. And even our bigger banking leaders, they have branches in other places, but this is home and this is where they invest heavily. We're appreciative of that and all that they do to impact communities across the state.”

ABOVE PHOTO: Governor Sanders awards the first Arkansas Business of the Month Award to Fort Thompson in Sherwood, Arkansas.

Photography by Randall Lee

“

[ Bank employees ] are the people who are helping support a lot of community activity. They also help support the financial sector of our entire state. ”

Legislative

Session ACTIVE ON BANK-RELATED ISSUES

by Justin Allen and Susannah Marshall

The 94th General Assembly kicked things off on January 9th and, 1,149 bills, 889 Acts and 89 days later, it concluded. There were lots of new faces, including 25 new members in the House and 13 in the Senate. The new Governor, Sarah Huckabee Sanders, was quite active during the session and successfully ushered through major reforms to our public education and criminal justice systems, as well as additional cuts to the state income tax.

While these headline-grabbing efforts were ongoing, there was other meaningful work being done in the background. This included issues impacting the banking and financial industries that kept the ABA government relations team quite busy during the session. This article will summarize some of the most notable pieces of legislation impacting banks.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

ESG generally refers to corporate consideration of environmental and social factors in making business decisions. As ESG has found its way into the financial industry, many are concerned that such considerations run contrary to pecuniary goals and could constitute a breach of an investor’s fiduciary duty. That has led to legislation in many states that prohibits government from utilizing financial institutions and investors that consider ESG in setting business and investment strategies. Generally, much of this legislation precludes financial institutions that discriminate against certain industries, such as firearms and fossil fuels, from doing business with the state and local governments.

During 2022, ABA watched as this type of legislation was considered across the country. It was expected that similar legislation

In sum, Act 411 creates an “ESG Oversight Committee” that will be comprised of one appointment each from the Governor, President Pro Tempore of the Senate, Speaker of the House of Representatives and the Attorney General. The State Treasurer, or his representative, will also serve on the committee.

Act 596 of 2023 prohibits the use of a digital currency tracker to track an individual's purchases or location based on the use of digital currency unless a warrant has been issued expressly authorizing such tracking or a person consents.

would be introduced in the 2023 session in Arkansas. As a result, discussions were held between stakeholders and elected officials before and during the recent session. While many of those interests, on both sides of the issue, weren’t totally happy with the resulting legislation, I think most would agree that the collaborative approach resulted in a better product than not.

The primary legislation on the topic was HB1307, which became Act 411 of 2023. In sum, Act 411 creates an “ESG Oversight Committee” that will be comprised of one appointment each from the Governor, President Pro Tempore of the Senate, Speaker of the House of Representatives and the Attorney General. The State Treasurer, or his representative, will also serve on the committee.

Once appointed, the committee will determine whether there are financial services providers that discriminate against energy, fossil fuel, firearms, or ammunition companies. Upon an initial determination by the committee of discrimination, the committee will notify the financial services provider of that decision so that the financial services provider can attempt to convince the committee otherwise. If it fails, that financial services provider will be placed on a list that is circulated to all government entities and maintained by the Treasurer. With some limited exceptions, government entities are not to place funds with any of the listed entities and are to divest any investments previously made with those entities.

This is a very general overview of Act 411. I encourage all financial institutions seeking to do business with state and local government in Arkansas to review Act 411 with legal counsel to determine the extent of its impact on the institution’s policies, procedures and practices.

The other ESG legislation of note was SB62, which is now Act 611 of 2023. Act 611 requires any business that enters into a contract with a government entity to certify that the business is NOT engaged in a boycott of the energy, fossil fuel, firearms, and/ or ammunition industries. If the business refuses to make that certification, it will not be allowed to contract with the government entity. Act 611 is modeled after a 2017 Arkansas law that requires a contracting entity to make such a certification with regard to any boycotts of Israel.

It is important to note that banks are exempt from Act 611. Act 411 is the ESG law applicable to banks and other financial services providers.

RULE AGAINST PERPETUITIES AND DECANTING OF TRUSTS

HB 1339, now Act 719 of 2023, amends the “rule against perpetuities.” Under current Arkansas law, a person can restrict the transfer of real estate assets in a trust for no longer than 90 years. Act 719 extends that period to 365 years. Other states have made similar extensions in recent time, and some states have eliminated the rule altogether. Such legislation is designed to promote investment as it provides certain advantages with regard to taxes and estate planning.

Complimentary to Act 719 was HB1431, now Act 293 of 2023. Act 293 allows a trustee to transfer assets of an existing trust to another trust under certain conditions. Many states that have extended the time period for the rule against perpetuities have likewise adopted laws allowing such a transfer of trust assets. Again, these changes are intended to provide tax and estate planning benefits to the individuals involved.

COMMISSIONER EMERGENCY POWERS AND BRANCH CLOSURES

Act 298 amends the law concerning the operation of bank facilities. A.C.A. § 23-46-212 grants the Bank Commissioner emergency powers to respond to various events or conditions resulting in a state of emergency and actions the Bank Commissioner may take to assist banks impacted by a state of emergency. Act 298 further clarifies the procedure for evoking emergency powers for an Arkansas state bank’s branch office in another state which is affected by an emergency condition. Additionally, Act 298 amends A.C.A. § 23-48-103 to identify circumstances in which a state bank may close a branch office on a temporary basis due to an interruption of service. Lastly, Act 298 more specifically defines the term “business day”.

SALE OF TAX DELINQUENT LAND BY THE COMMISSIONER OF STATE LANDS

SB 418, now Act 241 of 2023, modifies the process for the sale of tax delinquent land. Most significantly, there is no longer a post-sale opportunity for a debtor, or its lender, to redeem the property.

Under Act 241, at least 30 days prior to the sale, the Land Commissioner is to notify the owner and interested parties of the date of sale and the right to redeem no later than 4:00 p.m. the last business day before the sale. The same 30-day notice is required in the event of an on-line sale.

INFO BITE

Act 241 of 2023, modifies the process for the sale of tax delinquent land. Most significantly, there is no longer a post-sale opportunity for a debtor, or its lender, to redeem the property.

Again, property can no longer be redeemed the day of the sale or any time after the sale. To the extent banks have utilized a practice of redeeming after a sale, that is no longer an option. Act 241 contains an emergency clause and therefore became effective on March 10, 2023.

SECURITIES COMMISSION

Act 475 transfers the administrative functions of the State Securities Department to the State Bank Department and further amends the organization of the State Securities Department. The legislation was enacted to enhance efficiencies within the agencies and within state government. The State Securities Department oversees and regulates non-depository mortgage activities, money services businesses and the securities industry. The integration of the State Securities Department with the State Bank Department is consistent with the regulatory structure in most states. Act 475 provides that the Bank Commissioner may act as the Securities Commissioner and the State Securities Department will be housed within the State Bank Department upon implementation of the legislation. Act 475 does not have an emergency clause and will become effective July 31, 2023.

DIGITAL CURRENCY

Act 596 of 2023 prohibits the use of a digital currency tracker to track an individual's purchases or location based on the use of digital currency unless a warrant has been issued expressly authorizing such tracking or a person consents.

The original bill contained no exceptions for, or references to, relevant federal law. ABA reached out to the sponsor during the session to raise the banking concerns in that regard and the bill was amended accordingly. In short, Act 596, as amended, makes clear that it does not excuse a financial institution, or an officer, employee, or agent of a financial institution, from compliance with the Right to Financial Privacy Act of 1978, Bank Secrecy Act and the Federal Financial Institutions Examination Council regulations. Finally, it states that a financial institution, or officer, employee, or agent thereof, refusing a request for disclosure of protected nonpublic information under the Act in good faith shall not be liable to any government authority.

HEALTHCARE DECISIONS LAW

Under current law, an incapacitated person with no family or guardian may be appointed a surrogate by a treating physician. That surrogate is then empowered to make decisions and take certain actions on behalf of the incapacitated person.

Act 49 of 2023 expands the surrogate’s authority to obtain financial information on behalf of the incapacitated person so as to allow application for Medicare and/or Medicaid benefits. Since the surrogate is not a legal guardian and does not have a power of attorney, this could create an uneasy situation for a bank that receives a request for financial information by a surrogate. ABA has initiated a discussion with the Bank Commission and the Department of Health about appropriate forms and necessary documentation for a surrogate’s request to a bank. Updates will be provided as that process proceeds and additional legislation is likely at the appropriate time. Banks should consult with counsel in responding to any such requests.

OPPOSED BILLS THAT DID NOT PASS

AR - HB1049 - To establish the Fair Access to Financial Services Act; and to protect the financial freedom of Arkansas citizens and businesses.

AR - HB1588 - To amend the uniform commercial code.

AR - HB1620 - To create the Second Amendment Financial Privacy Act; to prohibit financial institutions from using certain discriminatory practices; and to provide for enforcement of violations.

AR - HB1628 - To prohibit covenant not to compete agreements; and to amend the law concerning a covenant not to compete agreement.

AR - SB41 - To regulate environmental, social justice, or governance scores or metrics; and to allow the Treasurer of State to divest the state of stocks, securities, or other obligations.

AR - SB56 - To regulate the use of social credit scores based on environmental, social justice, or governance scores or metrics; and to prohibit a state agency from engaging in discrimination based on the use of a social credit system.

CRIMINAL BACKGROUND CHECKS

Act 297 amends the law concerning retention of criminal background checks for the State Bank Department. A.C.A § 2346-205(f) permits the Bank Commissioner to perform criminal background checks in certain circumstances. Currently, state law requires the Bank Commissioner to destroy criminal background check documentation within six (6) months of receipt of such records. During the annual State Bank Department’s audit, the Arkansas Crime Information Center recommended an extension of the record retention period for background checks. Act 297 provides that a criminal background check obtained under this section shall be retained by the Bank Commissioner for at least three (3) years from the Bank Commissioner's receipt of the background check. Act 297 does not have an emergency clause and will become effective July 31, 2023.

Editor’s note: Susannah Marshall is the Arkansas State Bank Commissioner. Justin Allen is an attorney with Wright Lindsey Jennings and represents the Arkansas Bankers Association.

Treasurer Returns to Office After Stroke

Treasurer of State Mark Lowery has returned to the office after a stroke earlier this year resulted in weeks of rehabilitation.

Lowery, who was elected to the statewide office in November 2022, said he's happy to be back and is thankful for his staff who kept the office operating during his recovery.

“I’m thrilled to be back in Arkansas and soon to be back in the office full-time. It was great to be able to come back to the Capitol and personally thank the staff for the amazing work they have done while I’ve been gone. I am very proud of the team we’ve assembled and the level of pride they have taken in accomplishing the goals of the Treasury in my absence," he said.

Lowery’s office announced in March that he had a “health-related concern” that later was confirmed as a stroke. He spent time in Maryland with his daughter and family members recovering from an “ischemic stroke,” which can occur when the blood supply to part of the brain is interrupted, reduced or blocked, preventing brain tissue from getting oxygen and nutrients.

“I can’t tell you all how much I appreciate the encouraging words, cards, and prayers I have received from friends and residents from around the state,” Lowery said in a statement his office released this Spring.

As he returns to the office, where will his priorities be?

"In the coming months, I look forward to continuing our work on The Arkansas Brighter Future 529 Plan, financial literacy and education for all Arkansans, and the critical issue of cybersecurity. We will be presenting our new cybersecurity initiative at the next State Board of Finance meeting and displaying my office’s continuing commitment to decreasing cybersecurity threats and protecting Arkansan’s money and data. This new program will put Arkansas at the forefront of cybersecurity technology, and I look forward to sharing our advances in this area soon,” he said.

Lowery, a Republican from Maumelle, served for over a decade in the Arkansas Legislature as a State Representative.

“I’m thrilled to be back in Arkansas and soon to be back in the office full-time. It was great to be able to come back to the Capitol and personally thank the staff for the amazing work they have done while I’ve been gone.”

“We will be presenting our new cybersecurity initiative at the next State Board of Finance meeting and displaying my office’s continuing commitment to decreasing cybersecurity threats and protecting Arkansan’s money and data.”

Understanding (and Using) ChatGPT in Banking

by Ryan Jackson

Anyone paying attention to tech headlines over the past few months likely has been unable to avoid one topic: ChatGPT. Going within two months from zero to 100 million users should tell you all you need to know in terms of its buzz. Not surprisingly, headlines ranged from questioning whether ChatGPT should be banned or used at schools to how it allows anyone to write code to predicting the demise of Google. Though there is some truth to all these headlines, like most new technologies, the reality lies somewhere in the middle.

So what is ChatGPT? Released in November 2022 by artificial intelligence research laboratory OpenAI, ChatGPT is a chatbot that leverages machine learning on large language models to mimic conversational answers to complex questions. To simplify even more, a user asks ChatGPT a question and receives an answer based on what the technology has “learned” as if a human were answering it.

There are two unique features to highlight regarding ChatGPT. First, ChatGPT is a large language model, or LLM, meaning it is trained on massive amounts of data — in this case primarily text — which it uses to predict what word should come next in a sentence. According to Stanford University, GPT-3, which ChatGPT is built on, “has 175 billion parameters and was trained on 570 gigabytes of text. For comparison, its predecessor, GPT-2, was over 100 times smaller, at 1.5 billion parameters.” Second, it was trained using supervised learning and reinforcement learning. In both approaches, humans improve the model’s performance by providing feedback on the outputs. For the reinforcement approach, human trainers rank ChatGPT’s responses to questions and create reward models for better responses. Both of the factors enable ChatGPT to better understand meaning behind questions and to recognize mistakes.

AI-based chatbots have been leveraged for years in the customer service context, but the speed and clarity with which ChatGPT provides content in a relatively simplified user interface has been eye opening. For example, most users can use Google to research a given topic by searching via keywords, clicking on any number of links, reading articles, and then formulating an outline — ChatGPT does all this based on a natural language question and generates a summary within seconds.

For all the initial hype surrounding this technology, it is not all positive news. First, some of ChatGPT’s responses to questions are factually incorrect. This problem seems to

be exacerbated by the fact the answers to queries are returned as if a real-life human were responding, which can give the user a false sense of security or accuracy. Second, early testers of Microsoft’s search engine Bing, which has integrated OpenAI’s product, have reported some bizarre interactions with the technology. Third, and probably most troubling, yet not surprising, is the opportunity for criminals to leverage ChatGPT. A highly referenced article by Check Point Research walks through how this technology could generate a phishing email and code in order to instigate a malicious attack.

ChatGPT has implications for the banking industry, and banks should start to familiarize themselves with it and similar chatbot technologies. Banks should begin with reviewing how these technologies fit within their current controls and review of third-party software. Due to this reason, several large banks — such as JPMorgan, Bank of America, Citigroup and Goldman Sachs — have restricted employees’ use of ChatGPT. In addition, banks should continue to monitor regulatory guidance as the technology has attracted the attention of a number of different government agencies. Banks should also be vigilant on the cybersecurity front and monitor for any

Banks could explore include research and summation (for example, understanding emerging technologies), idea formulation (developing an outline of topics), and building customer personas for marketing campaigns.

increase in phishing attempts that could be exacerbated by the use of this technology.

Once banks are comfortable with leveraging these technologies, they can easily experiment with the products and evaluate potential future use. Early use cases banks could explore include research and summation (for example, understanding emerging technologies), idea formulation (developing an outline of topics), and building customer personas for marketing campaigns.

Of course, even with all the promise of ChatGPT, and similar conversational AI technologies, humans should be part of the loop and review the outputs that are produced. Not only is this technology becoming more robust by the day, but with news that Microsoft plans to build OpenAI and ChatGPT features into all its products, more people are likely to access and use these technologies. In the meantime though, let’s see directly from ChatGPT what it could do for banks:

in the OVER-S HARING WORKPLACE?

Why your company may need a TikTok and BeReal policy.

by Richard Meneghello

By now, many of us have seen a TikTok video filmed at someone’s workplace – a “day in the life” video, someone complaining about their co-workers, supervisors, or customers, or someone talking about an unrelated subject while at the office. And a relatively new platform, BeReal, goes a step further by encouraging users to provide an unfiltered view into their “real” everyday life at random moments throughout the day.

Of course, such organic social media clips can be a valuable tool that helps market your brand and build stronger employee relationships – but where do you draw the line? These posts might include an employee during a meeting with co-workers or at a workstation

performing their duties – which raises privacy and confidentiality concerns. Moreover, employees flocking to social media to discuss their bosses and general work experiences — whether positive or negative — could lead to other troubles. When these videos go viral, employees may become unofficial spokespersons for your organizations, influencing the conversation about work norms and creating trends that impact employers globally.

With these changing dynamics, you may want to set new guidelines for social media use while still ensuring your policies don’t run afoul of employment and labor laws. Here are four tips for updating your social media policies to reflect this modern era and stay on top of the latest developments.

1. ENSURE POLICIES REFLECT RECENT TRENDS

In the early days of widespread social media use, your policies may have simply prohibited employees from using company equipment to post non-work-related content online and required work posts to be business appropriate. But social media use is rapidly evolving in new ways that you may not have anticipated when your policies were first drafted.

What should you know about current trends as you consider policy changes? For one thing, TikTok has quickly grown in popularity over the past two years with more than a billion monthly active users — which means your employees are likely using the platform and are probably doing so during work hours. The app allows users to upload videos ranging from five seconds to 10 minutes. TikTok then filters videos through their feed using an algorithm and shares them with other users. These videos may receive millions of views, comments, likes, and shares.

While TikTok is popular, it’s obviously not the only platform that may feature employees on the job. Unlike TikTok — where users are hoping to go viral — the BeReal app takes a less sensational approach. BeReal doesn’t have filters, hashtags, or even followers. In order to view someone’s BeReal, you have to request to be their friend.

The app encourages users to provide an unfiltered view into their “real” everyday life. Each day at a different time, the app simultaneously notifies all users to “BeReal” and share a photo within two minutes, regardless of their location. The camera on the app will then take a photo of the user with the front-facing camera, while also taking a photo on the back camera, creating a BeReal snapshot to share with friends.

This app can be potentially problematic for employers. Many times, BeReal alerts occur during work hours, so users end up taking pictures of their workplace or work area. Because BeReal is shared among friends, the app may create a sense of safety and users might forget to censor confidential information. Moreover, while BeReal doesn’t have the same ‘viral’ nature as TikTok, that doesn’t stop users from sharing their posts beyond the app on other platforms.

This trend illustrates that the new generation of workers values the transparency these apps provide, with many not considering that their candid photos may also reveal company information.

2. STRIKE A BALANCE

Before you decide to curb all TikTok and BeReal posts from the workplace, you should recognize that such posts can pay dividends. Employees who are active on social media may be more equipped to understand the social pulse of the company’s customer base. Additionally, allowing employees to contribute to company-sponsored social media posts shows that the company trusts them, which can increase confidence and make employees feel valued.

Furthermore, social media networking may help employees collaborate, share ideas, and solve problems. This can lead to better employee engagement and retention. Moreover, utilizing social media in the workplace can make the company more desirable to potential applicants, particularly Gen Z and Millennial job seekers.

Social media is here to stay, and employers should recognize that policies barring all forms of social media use in the workplace may be unrealistic. In fact, about 72% of respondents to a 2021 Pew Research Center survey said they use some form of social media and 77% of respondents to an earlier survey reported using social media regardless of whether their employer had a policy in place.

While not every company can allow on-the-job posts, those with flexibility might want to dedicate resources to creating a mutually beneficial, collaborative policy around social media use in the workplace. For example, allowing employees to share their experiences with your company through social media may promote transparency and provide job seekers with credible information on what it’s really like to work for your business.

TikTok has quickly grown in popularity over the past two years with more than a billion monthly active users — which means your employees are likely using the platform and are probably doing so during work hours.

Those with flexibility might want to dedicate resources to creating a mutually beneficial, collaborative policy around social media use in the workplace.

3.

ADDRESS THE POTENTIAL PITFALLS

While employers may benefit from employees’ on-the-job social media posts, you should also address the potential dangers, including legal and business concerns.

Of the many legal concerns, the most glaring are privacy protections and confidentiality. As employees capture authentic moments during the workday for BeReal or post TikTok “day in the life” videos, they frequently walk around the workplace recording offices, conference rooms, common spaces, the cafeteria, and more. The videos may inadvertently capture confidential information, such as audio of an internal meeting, the image of a client’s name, or a trade secret.

Confidentiality issues also arise with employees who work remotely. For example, an employee may take a video of their innovative at-home workspace while a Zoom meeting is in progress or while their computer screen displays proprietary information.

You should also be cognizant of how allowing employees to post on the job can potentially harm your organization’s reputation. TikTok and BeReal attract users who want to be authentic rather than staged, heavily filtered, or otherwise unauthentic. Thus, employees who choose to post on these platforms do not shy away from capturing the “realness” of their job. This, in turn, can lead to your employees sharing information that negatively affects the company, such as human resources concerns (including allegations of unprofessional comments made by colleagues), complaints about working conditions, and product liability issues. All of these discussions raise both reputational and legal concerns that you should take into account.

4. SET REALISTIC PARAMETERS

With these benefits, risks, and (pop) cultural considerations in mind, what should your modern social media policy include?

If you already have a solid employee handbook, a good place to start is by reminding employees that your existing policies still apply when using social media platforms. For example, an equal employment and harassment-prevention policy would cover discriminatory or bullying behavior towards colleagues whether online or in person. You should remind employees who they should contact when they have a workplace concern. Additionally, let employees know that confidentiality policies apply when they share content, so their computer screens and documents should not be visible in the background.

Depending on the nature of your business and your employees’ roles, however, you may want to create a more targeted policy on social media use. For instance, you may have different risks to manage if you encourage employees to engage with your brand, employ a younger workforce, or otherwise have a strong social media presence.

As you likely know, your policy should be in writing and followed consistently. Where to go from there is more complicated. The explosion in social media use has only highlighted how regulating employee speech is difficult, nuanced, and occasionally backfires. But, of course, there are still some best practices.

Consider taking these five steps:

Develop policies in collaboration with legal counsel, HR, technology, communications, and diversity, equity, and inclusion (DEI) teams. Be sure the policy matches the company’s voice and recognize that this is not a one-template-fits-all exercise. Use plain language and examples. “Do not share patient x-rays, even if their name is covered” is more helpful than “Posting patient

information will subject employees to discipline up to and including termination.”

Keep up with guidance from the National Labor Relations Board (NLRB) – which is subject to change. Note that blanket bans on discussing wages or complaining about supervisors or working conditions are not permissible under federal labor law. The Trump administration issued an employer-friendly rule to evaluate whether a policy interferes with employees’ rights to organize and engage in protected concerted activity. However, that ruling is potentially on the chopping block in a pending NLRB case. If the NLRB reverts to the prior, more restrictive evaluation, policies that are currently compliant could suddenly run afoul of the National Labor Relations Act (even in non-unionized work settings). This includes seemingly benign provisions about “respectful” content and limits on who is authorized to speak to the media.

Confirm applicable state laws. There is a legislative trend to prohibit employers from requiring employees to engage with social media as a condition of employment or even to ask for their social media usernames as part of a job application.

Develop a plan for consistently responding to policy violations. Two employees violating the same rule in the same way should not be treated differently based on whether they tripped the algorithm and went viral. Relatedly, consider the reputational risk of a too-harsh response – someone who is fired for social media content may likely use the same platforms to discuss their termination.

Conclusion

If you have questions regarding your social media policy, contact your Fisher Phillips attorney, the authors of this Insight, or any attorney on our Data Security and Workplace Privacy Team. We will continue to monitor developments in this area, so make sure you are subscribed to Fisher Phillips’ Insight System to get the most up-to-date information.

Editor’s note: Richard Meneghello is the Chief Content Officer from Fisher & Phillips LLP. He was assisted by law clerks Taric Mansour and Jazmin Luna for this article. It is reprinted with permission.

2023 ANNUAL

CONVENTION

The 2023 Annual Convention was a huge success. Over 340 bankers came together for a great speaker lineup and networking event! From learning about digital transformation to cybersecurity to innovative ways of thinking in a workplace and the Annual Day with Commissioner, this year's Convention sent attendees home with plenty of content for the year. We were even able to celebrate the FORVIS Milestones in Banking Award recipients during lunch.

photography by Michael Pirnique

PHOTOS: (this page, left to right from top) ABA 2023-24 Executive Committee (l to r): Randy Scott, Farmers Bank & Trust Company, Blytheville; Lorrie Trogden, ABA; Chris Gosnell, Farmers Bank & Trust Company, Magnolia; Brad Chambless, Farmers & Merchants Bank; Jim Taylor, First Security Bank; Scott Saffold, Union Bank & Trust | Rick Windes, Southern Bank; Chris Roberts, Southern Bank; Kevin Bishop, Southern Bank | Lorrie Trogden, ABA | (middle) Marcus Guinn, Arvest Bank, enjoying listening to Convention speakers with fellow Convention attendees | Simmons Bank employees kicked off Day with the Commissioner with their Annual Strawberry Breakfast | Randy Scott, Farmers Bank & Trust Company, Blytheville | Kenya Davenport, Southern Bancorp; Lori Ross, Citizens Bank | Jim Taylor, First Security Bank; Arkansas Bankers Association team.

PHOTOS: (this page, left to right from top) Cliff Prowse with Willy D’s Dueling Pianos Road Show | Lorrie Trogden spoke to Convention attendees about the Arkansas Bankers Relief Fund started for the March 31 tornadoes | Randy Scott, Farmers Bank & Trust Company, Blytheville; Jim Poole and Cody Knight, Piggott State Bank | Jim Taylor, First Security Bank; Randy Scott, Farmers Bank & Trust Company, Blytheville | Speaker Dan Robb, Chairman, AmBA | Lorrie Trogden, ABA; Rob Robinson, Simmons Bank; Chuck Hunt, Capstar Bank | Speaker Etay Maor, Cato Networks | Cathy Owen, Eagle Bank & Trust Company along with other Convention attendees enjoying breakfast on Day 1 of Convention | Jim Taylor, First Security Bank | Joe Dunn, Stone Bank; Keith Jones, First National Bankers Bank | Arkansas Bank Commissioner Susannah Marshall; Jennifer Carlisle, Data Driven Partners; Loren Shackelford, Chambers Bank; Mallory Van Dover, Data Driven Partners | Speaker Jim Perry, Marketing Insights.

PHOTOS:

Convention attendees enjoying the Milestones in Banking Award Luncheon | Peggy Cecere and Kami Coleman, ABA; Randy Scott, Farmers Bank & Trust Company, Blytheville | Brandy Tuft, FORVIS; Shaun Harms, FORVIS; Chad Hudson, FNBC Bank; Meagan Clark, FORVIS; Alex Harrod, FORVIS; Ryan Howard, FNBC Bank | Bruce Maloch, Farmers Bank & Trust Company, Magnolia; Eric Roberts, Jack Powell, and Frank Fields, Arkansas State Bank Department | Jay Wisener, First National Bankers Bank; Mark Wilson, First Arkansas Bank & Trust | John Curlin, Performance Trust Capital Partners, LLC, enjoying great conversation with fellow Convention attendees | Herbert Thomas, First National Bankers Bank; Delvan Irwin, FNBB Insurance Agency | Lori Ross, Citizens Bank; Katherine Mitchell, Relyance Bank | Speaker David Peterson, First National Bankers Bank | Courtney Calderwood, BHG Financial; Chris Gosnell, Michael Boyd, and Drew Chandler, Farmers Bank & Trust Company, Magnolia | Michael Delancey, Greg Connell, and Alex Maynard, Farmers & Merchants Bank | Arkansas Bank Commissioner Susannah Marshall | Cody Knight, Piggott State Bank; Delvan Irwin, FNBB Insurance Agency | Freddie Black, Simmons Bank; Lorrie Trogden, ABA; Bob Fehlman, and Jay Brogdon, Simmons Bank

(this page, left to right from top)

During the Annual Convention we recognized 27 people who have served their communities and the banking industry for 40-, 50-, and 60-years. We also recognized 3 banks who are celebrating 25- and 120- anniversaries this year.

Honored for 40 years of service were Carla Anglen | First National Bank of Fort Smith; Vicki Barnhill | First State Bank of DeQueen; Brenda Belcher | Generations Bank; Greg Connell | Farmers & Merchants Bank/The Bank of Fayetteville; Carolyn Day | Farmers & Merchants Bank/The Bank of Fayetteville; Michael Delancey | Farmers & Merchants Bank/The Bank of Fayetteville; Gina Epperson | Chambers Bank; Susan Hinshaw | First National Bank of Fort Smith; Charlie Holt | Farmers & Merchants Bank/The Bank of Fayetteville; Brenda Lewis | Farmers & Merchants Bank/The Bank of Fayetteville; Rebecca Liles | Chambers Bank; Wilson Moore | Bank of America; Paige Mulhollan | United Bank; Donna Parchman | Farmers & Merchants Bank/The Bank of Fayetteville; Linda Pipkin | Bodcaw Bank; Terri Revels | First State Bank of DeQueen; Vickie Rounsaville | Chambers Bank; Georgette Strickland | Arvest Bank; Thomas Sutton | Generations Bank; Edward Wilkinson | Farmers Bank.

Honored for 50 years of service were John Ed Chambers, III | Chambers Bank; Tresa Lowe | Farmers Bank; Jim Poole | Piggott State Bank; James Wagley, III | First National Bank of Fort Smith; Reynie Rutledge | First Security Bank.

Honored for 60 years of service were Paula O’Dell Blackwell | Farmers Bank & Trust Company (Blytheville) & Piggott State Bank; Sharron Whitlock | Central National Bank/Poteau a division of First National Bank of Fort Smith

Additionally, three banks were recognized for celebrating milestones: Priority Bank | 25 years; Bodcaw Bank | 120 years; Simmons Bank | 120 years

Brenda Belcher

Georgette Strickland

Paige Mulhollan

Carolyn Day

Jim Poole

Ray StidhamPriority Bank

Charlie Holt

Linda Pipkin

Reynie Rutledge

Donna Parchman

Michael Delancey

Rob RobinsonSimmons Bank

Jenny Marie WhiteheadBodcaw Bank

Brenda Lewis accepted by Sally Gilbert

Greg Connell

Paula O’Dell Blackwell

The Arkansas Bankers Association is pleased to recognize the people who have – and continue to – serve Arkansas’s banking industry.

Andrew Brink Rogers Market President

ARMOR BANK HIRES ANDREW BRINK TO LEAD ROGERS MARKET

Armor Bank has announced the hiring of Andrew Brink as the Rogers market president. Brink will lead the bank’s Northwest Arkansas team for consumer and commercial needs.

“We are excited to enter the Rogers market with full-service banking this fall. The hiring of northwest Arkansas native Andrew Brink as the market president will bring a focused combination of experience, enthusiasm, and leadership,” said Chad May, Armor Bank CEO.

“Armor Bank is dedicated to simplifying banking for our customers and bringing positive outcomes to Rogers and the surrounding communities,” May added.

Brink has seven years of experience operating as a commercial lender in Northwest Arkansas serving a variety of clients in both size and industry.

He is currently on the Fayetteville Planning Commission, Fayetteville Parks and Recreation Advisory Board, and Fayetteville Youth Baseball Board of Directors. He resides in Fayetteville with his wife, Kaitlin, and his son, Banks.

“WE ARE EXCITED TO ENTER THE ROGERS MARKET WITH FULLSERVICE BANKING THIS FALL.”

FNBC HIRES KYLE DAVIDSON TO RUN ITS MOUNTAIN HOME OPERATIONS

FNBC has hired Kyle Davidson as its community president in Mountain Home. He succeeds Chad Hudson, who has held the role since 2010, and will continue to serve FNBC as regional president and chief lending officer as a member of the bank’s executive leadership team.

In his new role, Davidson will lead both of FNBC’s Mountain Home offices.

“I am honored to have the opportunity to step in and work alongside such a great team of community bankers,” said Davidson. “FNBC has a strong reputation as a true community bank. They represent the values of the communities and customers they serve, and I am excited to be a part of their continued growth in Mountain Home and surrounding communities.”

In 2021, Davidson became the first director of the Arkansas Small Business Technology & Development Center at ASU-Mountain Home. Prior to that, he had over 20 years of banking experience, 13 of which

were in Mountain Home where he served as market president and commercial banker at other financial institutions. He was able to bring his financial industry knowledge into his role at ASBTDC to help small businesses launch and expand.

“Having served as the Community President for the Mountain Home market for more than a decade, I can tell you I feel very passionately about our customers and our community,” said Hudson. “Kyle is someone I have trusted and respected for many years, and he is the right person to pick up the torch and lead the Mountain Home team into the future.”

Davidson received a bachelor of science in agricultural business with a finance emphasis from Arkansas State University in Jonesboro and completed the graduate school of banking at Louisiana State University in Baton Rouge. He has earned multiple top producer awards in banking and is former President of the Emerging Leaders Section of the Arkansas Bankers Association.

“KYLE IS SOMEONE I HAVE TRUSTED AND RESPECTED FOR MANY YEARS, AND HE IS THE RIGHT PERSON TO PICK UP THE TORCH AND LEAD THE MOUNTAIN HOME TEAM INTO THE FUTURE.”

FIRST COMMUNITY BANK NAMES FIRST NWA BUSINESS BOARD

Batesville-chartered First Community Bank announced four members of its inaugural business board of directors for the Northwest Arkansas market.

Ashley Harris is vice president of marketing and communications at Ozarks Electric Cooperative in Fayetteville. Before that, she worked with Mitchell Communications Group as a congressional liaison on Capitol Hill and with the University of Arkansas in community outreach, student recruitment and alumni relations.

Harris is a board member for several groups, including the Northwest Arkansas chapter of the Public Relations Society of America, Arkansas Children’s Hospital Foundation and Fayetteville and Springdale chambers of commerce.

Meredith Lowry is a patent attorney for Wright Lindsey Jennings in Rogers. She has assisted various companies in their efforts to obtain patent, trademark and copyright protections and has also worked with clients to protect those assets through online and instore infringement.

Since 2019, Lowry has spearheaded WLJ’s initiative Woman-Run, a group dedicated to creating a network for women running businesses.

Nathan Ogden is the owner and president of Pick-It Construction of Fayetteville, a residential construction company. His work in the commercial,

subcontracting and multifamily division has enabled him to take on projects not only in his home state but also in 15 others as well. Ogden grew up on a cattle farm in Hogeye, where he attended Prairie Grove High School. He graduated from the University of Arkansas with a degree in criminal justice in 2001 and then started Pick-It Construction in 2002.

He and his family own and operate Ogden Ranch, which raises Angus cattle and PBR bucking bulls.

Dr. Wesley Cox, section chief for UAMS Orthopaedics and Sports Medicine in Northwest Arkansas, is a Fayetteville native and Fayetteville High School alumnus. He received his bachelor’s degree in microbiology at Auburn University. Cox is a team physician for the Arkansas Razorbacks and is an orthopedic consultant for the LPGA Tour. He has operated on current members of the MLB, NFL, PGA, LPGA, USTA, Bassmasters/FLW, and USA Track and Field.

Cox holds 11 patents and has developed products for shoulder and elbow bracing and surgical implants and published a book on little league baseball injuries. Additionally, he is a consultant, advisor, and instructor for multiple orthopedic companies.

“On behalf of First Community Bank, I am thrilled to welcome our new business board members who bring a wealth of experience in diverse areas of expertise as we expand our footprint into the Northwest Arkansas region,” said Natalie Bartholomew, the bank’s Northwest Arkansas community president. “Each of their backgrounds and skillsets will help support our growth as a leading community bank.”

First Community Bank opened its first regional office late last year at 5100 W. Park Ave. in Rogers’ Pinnacle Heights development. The bank has 33 locations in Arkansas and Missouri and in 33 locations across Arkansas and Missouri and had assets of $2.56 billion as of March 31, 2023.

MISSOURI BANK OPENS 2ND ARKANSAS BRANCH

Missouri-based Sterling Bank, a $1.37 billion-asset lender headquartered in Poplar Bluff, opened a new, 16,000-square-foot facility in Rogers at 1101 S. 52nd St. earlier this year.

Sterling Bank is a wholly-owned subsidiary of Sterling Bancshares Inc. The company entered the Arkansas market in 2020 by opening a loan production office at 1607 N. College Ave. in Fayetteville. On Oct. 15 that year, the office started taking deposits

and became a full-service branch. The company built a full-service branch at 3453 N. Steele Blvd. in Fayetteville that opened in February 2022.

Arkansas native Johnathon Welch of Fayetteville oversees the bank’s Northwest Arkansas market. Vice president Jordan Patterson manages the Rogers location with support from Phillip Roller (vice president) and Erica Goins (assistant vice president).

Sterling Bank has purchased land on Walton Boulevard in Bentonville for a third regional location. There are also plans for a branch in Little Rock at the intersection of Rahling and Kirk roads.

FARMERS AND MERCHANTS BANK PROMOTES TWO

The board of directors of Farmers and Merchants Bank and The Bank of Fayetteville announced the promotion of two employees to key leadership roles. Blake Holzhauer will serve as Chief Credit Officer and Sammie Smith will serve as the organization’s Chief Analytics Officer.

“As our institution continues to grow and expand into new markets, we remain focused on ensuring that our team has the experience and skill set to provide customers with the best products and services”, said Farmers and Merchants Bank President and CEO Brad Chambless. “Blake and Sammie are truly elite bankers with incredible work ethics, and their leadership has directly impacted our institution’s success. I am honored to announce these well-deserved promotions.”

Holzhauer joined Farmers and Merchants Bank in 2018 and has served as the Northwest Arkansas Market President and SVP, Chief Commercial Lending Officer before being named as the financial institution’s Chief Credit Officer. In his new role, he will oversee lending for 26 branches across the state. Holzhauer comes to his new position with 20 years of banking industry experience.

Smith started her career with Farmers and Merchants Bank, previously known as Integrity First Bank, of Mountain Home in 1998 in the Trust and Wealth Management Division. The majority of her tenure has been spent in Accounting and Finance where she has focused on budgeting, forecasting, and other bank management responsibilities. Before being named Chief Analytics Officer, Smith worked as the Vice President, Financial Planning and Analysis Manager.

FIVE BANKERS FROM ARKANSAS GRADUATE FROM LSU BANKING SCHOOL

Five Arkansas bankers graduated with diplomas from the Graduate School of Banking at Louisiana State University this spring. The three-year program provides courses covering all aspects of banking, economics and related subjects. Students traveled from 19 states, the District of Columbia, and Mexico to participate in this session.

The five bankers receiving diplomas from Arkansas include:

Nicholas Lee Austin - Century Next Bank in Crossett;

Derek Bowman - Simmons Bank in Jonesboro;

Ian Scott Bryan - Simmons Bank in Russellville;

Carl E. Kirtley - Farm Credit in Pottsville; and

Matthew D. Pledger - FBT Bank & Mortgage in Fordyce.

The Graduate School of Banking at Louisiana State University is sponsored by 15 southern-state bankers associations in cooperation with the Division of Continuing Education at LSU. The Graduate School of Banking at LSU requires attendance on campus for three years, with extensive bank study assignments between sessions.

The faculty is comprised of more than 50 bankers, business and professional leaders, and educators from all parts of the U.S. During their three summer sessions at the Graduate School of Banking, students receive 210 hours of classroom instruction, planned evening study, and final examinations at the end of each session.

Blake Holzhauer Chief Credit Officer

Sammie Smith Chief Analytics Officer

“BLAKE AND SAMMIE ARE TRULY ELITE BANKERS WITH INCREDIBLE WORK ETHICS, AND THEIR LEADERSHIP HAS DIRECTLY IMPACTED OUR INSTITUTION’S SUCCESS.”

SIGNATURE BANK OF ARKANSAS NAMES WARD NEW PRESIDENT

Fayetteville-based Signature Bank of Arkansas has a new president and several leadership changes. Brant Ward, previously the chief operating officer, has assumed the new role. Gary Head remains chairman and CEO.

Ward has worked for the bank since August 2005, first as a banker trainee, then loan coordinator and commercial loan officer. The bank promoted him to funding officer in October 2008, in charge of managing the bank’s liquidity, bond portfolio, internet deposits, and forecasting models and reports.

The company named him chief administrative officer and treasurer in October 2016. He’s been COO and treasurer since early 2021.

Ward’s recent promotion is one of several involving the bank’s leadership team. They include:

• Crandall Streett has been promoted from EVP Loan Manager (Fayetteville) to Chief Administrative Officer.

• Alexandria Gladden has been promoted from president of the Springdale market to Chief Operating Officer.

NEW TO THE ARKANSAS BANKERS ASSOCIATION STAFF

• Ryan Dagley has been promoted from EVP Loan Manager (Bentonville) to president of the Rogers market.

• Russ Greenlee has been promoted from SVP Loan Officer to SVP Loan Manager (Springdale).

• Clinton Ryan has been promoted from SVP Loan Manager to EVP Loan Manager (Rogers).

• Knight Weis is transitioning from Rogers Market President to Springdale Market President.

• Jason Orlicek has been promoted from SVP Loan Manager (Springdale) as SVP Loan Manager (Bentonville).

“2022 was a year of tremendous growth for our bank,” Gary Head said in a statement. “We have not only expanded to new markets, we have also grown our holding company team to support our customer-facing staff. The individuals promoted this month have been long-time bankers in our organization and will continue the spirit of Community Banking at its Best as our bank continues to grow.”

The bank has locations in Fayetteville, Springdale, Bentonville, Brinkley, Rogers and Harrison. As of Dec. 31, the bank had $982.4 million in assets, a 15.3% yearover-year increase.

Signature Bank of Arkansas has also signed a lease for a second location for its bilingual division, Banco Sí. The company will open an office later this year at 103 Emma Ave. in downtown Springdale. The first location opened this past fall in downtown Rogers.

Abigail Johnson Administrative Support Specialist

Whitney Horton Fundraising and Member Services Associate

ARMOR BANK HIRES MELISSA POWELL AS DIRECTOR OF MARKETING

Armor Bank has hired Melissa Powell as its new Director of Marketing and Human Resources. With a career spanning more than three decades in marketing, advertising, and graphic design, she has worked with many successful brands.

“Melissa is the perfect addition to the Armor Bank team,” said Chad May, Armor Bank CEO. “She will play a pivotal role in working with all of our markets and the communities we serve throughout the state.”

Most recently serving as the Marketing and Communications Director at a regional agricultural and rural lending business, her experience enabled her to work with agricultural organizations, cooperatives, and producers across Arkansas and the United States.

Powell previously ran her own marketing firm where she served a broad range of businesses and individuals within the healthcare, agriculture, retail, technology, and manufacturing industries.

After leaving her marketing firm, Powell led a team as Marketing Manager for Armor Seed that marketed the Armor Seed brand which would become one of the largest seed companies in the country. The branding model, along with the strong financial growth of Armor Seed, caught the eye of the national brand

STATE BANK DEPARTMENT ANNOUNCES PERSONNEL CHANGES

The Arkansas State Bank Department announced the retirement of William (Bill) Milum effective February 28, 2023. Milum worked for the Arkansas State Bank Department for 45 years. He began his career with the department in 1978 as an examiner trainee and achieved the level of Senior Examiner, serving in this capacity for more than 40 years.

The department promoted Aaron Lockwood to Bank Senior Examiner effective March 19, 2023. Lockwood received a Bachelor of Finance and Economics from the University of Arkansas in

Land O’Lakes, which ultimately acquired Armor Seed in 2017.

A native of Lynn, Arkansas, Powell is a graduate of both Williams Baptist University and Arkansas State University.

In other bank business, Elise Hunter has been promoted to vice president of Deposit Operations. Hunter has held various roles within the organization over her tenure

“Elise has been a trusted and valued member of the Armor Bank team for over fifteen years,” said May said. “Her dedication to east Arkansas is a reflection of her exceptional work ethic and commitment to customer service.”

Angela Turpen was hired as the Forrest City branch manager. She will oversee day to day operations for the branch. Turpen has worked in the banking industry for almost two decades.

Fayetteville, Arkansas, and serves as a Bank Senior Examiner in the Little Rock office.

The Arkansas State Bank Department has rehired Scott Lambert as a Certified Bank Senior Examiner effective April 11, 2023. Lambert received a Bachelor of Business Administration in Accounting and Marketing Management from the University of Arkansas Sam M. Walton College of Business in Fayetteville, Arkansas. Lambert worked for the Bank Department as a Certified Bank Senior Examiner from 2013 to 2022 before leaving to take a position as a Senior Vice President and Commercial Lender for Southern Bancorp Bank in Stuttgart. Lambert will be working as a Certified Bank Senior Examiner in the Little Rock office.

Melissa Powell Director of Marketing

Elise Hunter Vice President of Deposit Operations

Angela Turpen Forrest City Branch Manager

UMB BANK HIRES JEFFREY HENRICKS AS VICE PRESIDENT, RELATIONSHIP MANAGER

UMB Bank hired Jeffrey Hendricks as vice president, relationship manager in the Corporate Trust division. Hendricks is responsible for day-to-day administration of a complex book of trustee and escrow agent appointments and negotiating document provisions of new accounts by working with in-house and outside counsel, financial advisors and underwriters. He will also promote UMB in the trustee and escrow agent market with a focus in Arkansas and southern Missouri.

“I am honored to join UMB’s corporate trust team,“ said Hendricks. “The bank is a leader in the

trust space and I’m excited about the opportunity to grow UMB’s presence in the Arkansas market.”

Prior to joining UMB Bank, Hendricks was vice president, corporate trust administrator at Bank OZK for 16 years.

“With over a decade of industry experience under his belt, Jeff was a natural addition to our division,” said Douglas Hare, senior vice president and regional manager at UMB Bank. “We welcome his expertise as we continue to expand to new regions.”

Hendricks earned his Bachelor of Arts in business administration and finance from Ouachita Baptist University and his Bachelor of Business Administration in accounting from the University of Arkansas at Little Rock.

TROY BLACKSTON JR. JOINS TODAY’S BANK AS EVP & CHIEF LENDING OFFICER

Today’s Bank, a Northwest Arkansas regional community bank, announced the appointment of Troy Blackston Jr. as executive vice president and chief lending officer. In his new role, Blackston will utilize his extensive experience to oversee banking operations and manage the bank’s lending program and portfolio to ensure personalized service and excellence within the bank’s lending division.

“Troy brings an immense amount of expertise in bank management, lending and leadership,” Today’s Bank President and CEO David Scruggs said. “Not only is Troy highly skilled, but he understands people, making him a huge asset to our already talented team as we work to exceed expectations.”

Blackston joins the Today’s Bank team from First Western Bank, where he worked for more than a decade as a senior vice president and chief credit officer

CHAMBERS BANK PROMOTES CURTIS SPATZ

and managed a loan portfolio totaling more than $525 million. His previous experience includes working at Legacy National Bank as a vice president and commercial loan officer and at Arvest Bank, where he worked as a consumer loan manager and commercial loan officer.

Blackston’s background includes direct loan production, portfolio management, sales management, credit underwriting and risk management. Blackston is a graduate of John Brown University with a degree in organizational management.

TO CHIEF STRATEGY OFFICER

Danville-based Chambers Bank has promoted Curtis Spatz of Prairie Grove to the newly created chief strategy officer position. With the new job, Spatz joins the bank’s executive committee as a member of senior management.

Spatz has 23 years of banking experience and has worked at Chambers Bank since 2015, most recently as a regional retail manager and senior vice president of digital banking.

“Throughout his time at Chambers Bank, Curtis has shown great initiative and strategic vision,” Chambers Bank President Mike Donnell said. “He is

forward thinking and is always looking for ways to position our bank for a successful future. But more importantly, he truly cares about our customer experience and understands the mission of community banking.”

Spatz holds a bachelor’s degree in organizational management and ethics from Oklahoma Wesleyan University and recently earned his CTP (certified treasury professional) certification.

“Having spent time at a larger, regional bank, I love that we are a family-owned bank with a long history of serving the people, businesses and communities within our footprint,” Spatz said. “I am excited to take on the role of chief strategy officer to build on the success of Chambers Bank and to continue to look for opportunities to position the bank well for years to come through our customer experience, digital transformation journey, growth and efficiency initiatives.”

STONE BANK PURCHASES FORMER BANK OZK HEADQUARTERS BUILDING

Stone Bank has acquired the building at the corner of Chenal Parkway and Markham in west Little Rock for $9.5 million.

The building was originally built as the headquarters for Bank OZK, formerly Bank of the Ozarks, which has moved twice since construction.

Nick Roach, President of Stone Bank, announced Friday (June 16) that the west Little Rock location will expand the bank’s management offices and allow operations of a retail banking facility in the building.

“The purchase of this great property will not only give us space to expand our bank management operations but also provide an expanded retail banking presence at one of the most dynamic intersections in the state of Arkansas,” Roach said. “This new space will allow us to continue our rapid pace of growth and some of the dynamic plans we have for the future.”

“The visibility alone makes it a fantastic location with a daily traffic count of more than 36,000 vehicles daily on one side and 23,000 per day on the other,” he added.

The property, located at the corner of Chenal Parkway and West Markham, has 38,000 square feet, including a full-service retail bank with five drive-through lanes and a 24-hour automated teller.

Originally constructed in 1998 as a bank headquarters, Stone Bank will occupy the first two floors of the building, with an insurance company tenant leasing the top floor.

Stone Bank has $700 million in total assets and 115 employees in five states. The bank operates retail locations in six communities in Arkansas and has a nationwide presence in the field of government-guaranteed loans (SBA, USDA, FSA). Stone Bank is chartered in Mountain View, where it operates a full-service bank and an Agri Lending Center which primarily services FSA-guaranteed loans for poultry farmers.

ARVEST LAUNCHES PRODUCT FOR FIRST-TIME HOMEBUYERS

Arvest Bank has launched the Arvest Homebuyer Advantage, a product aimed at helping first-time homebuyers with insufficient down payment funds. The new tool is a joint venture with the Arvest Opportunity Fund, a non-bank subsidiary of Arvest.

Qualified first-time homebuyers can secure financing with no down payment or private mortgage insurance fee.

The product combines an Arvest mortgage with an Arvest Opportunity Fund second mortgage, both collateralized by the same property.

The Arvest Opportunity Fund second mortgage allows customers to pay off up to 20% of their mortgage commitment in 15 years.

Arvest’s mortgage division will service both mortgages.

“We couldn’t be more excited to expand our offerings and help

more people achieve homeownership, especially as headwinds have increased with affordability and low-inventory concerns,” said Matt Kendall, Arvest mortgage division president and CEO. “Additionally, thanks to our partners at the Arvest Opportunity Fund, this product gives customers the potential to build equity faster.”

The Arvest Homebuyer Advantage requires customers to complete a homebuyer education program and credit review session before closing.

The educational component is aimed at helping customers understand payments and costs and improve their financial health.

The Arvest Opportunity Fund provides loans and lines of credit to small business customers. Despite affordability and low-inventory concerns, Arvest aims to expand offerings and help more people achieve homeownership.

New location of Stone Bank

PEOPLES BANK TO OPEN IN BENTON

Peoples Bank of Sheridan announced it will open a new branch office in Benton and has hired Chris Diaz as Benton Market President and Don Tackett as Executive Vice President for Lending.

The Benton office will be located at 1800 Military Road, at the intersection of Military Road and Congo Road. The office will feature a full-service 5,300 square foot branch, with an expansive lobby area, six offices, safe deposit boxes, three drive-through lanes, a drive-up 24-hour ATM, a night deposit and ample parking.

It is expected to open in the summer of 2023.

“Peoples Bank is delighted to be expanding our services with an all-star team and a highly visible and convenient bank office in Benton. As a true community bank, we believe our values, relationship-based banking philosophy and local decision making will be

welcomed by businesses and families that call Benton home,” said Craig Manatt, Peoples Bank President and CEO.

Diaz has 12 years of banking experience and joins Peoples Bank from First Security Bank in Benton where he was a commercial lender. Diaz is active on the Saline Home Builders board, serving the needs of the rapidly growing housing industry in Saline County.

Tackett has over four decades of banking experience, including serving as bank president for 20 years in Benton, Malvern, Sheridan and Hot Springs. A graduate of Ouachita Baptist University, Tackett and his wife are Benton residents where they are members of First United Methodist Church.

Peoples Bank was formed in Sheridan, Arkansas in 2000 and is the only locally owned bank in Grant County.

SOUTHERN BANCORP RECEIVES $9.8 MILLION IN CDFI GRANT FUNDS

The U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund has awarded more than $1.73 billion in grants to 603 CDFIs through the CDFI Equitable Recovery Program. Southern Bancorp, Inc., a bank holding company, and Southern Bancorp Community Partners, a nonprofit loan fund that works alongside Southern Bancorp, Inc., announced that each has been awarded $4.9 million, which will be put to work in its Arkansas and Mississippi markets.

“We are grateful to the U.S. Treasury for appropriating this pandemic recovery funding and distributing it to CDFIs like Southern Bancorp, Inc. and Southern Bancorp Community Partners, who can put it to work supporting the people and places who are hurting most in this economic climate,” said Darrin Williams, CEO of Southern Bancorp, Inc.

“Southern Bancorp has a proven track record of putting such resources to work in communities that need it, and this funding will allow us to increase access to financial opportunities in and around our markets, while supporting small businesses and working families,” he added.

The CDFI Equitable Recovery Program was created to help low- and moderate-income (LMI) communities recover from the COVID-19 pandemic, navigate

this “post-pandemic” economy, and invest in long-term prosperity. By distributing this funding through mission-driven CDFIs like Southern Bancorp, institutions that primarily serve historically under-resourced and LMI communities, the U.S. Treasury is investing directly into areas where the need is greatest.

This funding, a product of the Consolidated Appropriations Act of 2021, was created with the purpose of expanding lending, grant making, and investment activities to LMI communities and borrowers, particularly minorities, who otherwise may not have access to capital or financial services, and who were disproportionately impacted by the COVID-19 pandemic.

According to the U.S. Treasury, eligibility was determined by being a certified CDFI, displaying a proven track record of serving eligible communities, and meeting certain financial criteria.

“SOUTHERN BANCORP HAS A PROVEN TRACK RECORD OF PUTTING SUCH RESOURCES TO WORK IN COMMUNITIES THAT NEED IT, AND THIS FUNDING WILL ALLOW US TO INCREASE ACCESS TO FINANCIAL OPPORTUNITIES IN AND AROUND OUR MARKETS, WHILE SUPPORTING SMALL BUSINESSES AND WORKING FAMILIES.”