The Arkansas Banker Winter 2022

WINTER 2022

Veterans in Banking

Cathy Owen + Larry Wilson

A Tribute to Our Brave Soldiers

Longtime Leaders Honored with Awards

Power »»»» Shift »»»» pg 34

WHAT DIVIDED GOVERNMENT MEANS FOR THE BANKING INDUSTRY

THE ARKANSAS BANKER

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A PUBLICATION OF THE ARKANSAS BANKERS ASSOCIATION

CONTENTS

WINTER 2022

33 34

VOLUME CV, NO. 4

ARKANSAS BANKERS ASSOCIATION STAFF

President/CEO Lorrie Trogden VP/Controller Carla Brinkley VP/Professional Development Kami T. Coleman

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Executive Administrative Assistant Peggy Cecere

EDITORIAL STAFF

02 President’s Message 06 Professional Development

Editor Roby Brock Creative Director Ashlee Nobel

Lee Lee Arts + Design

Contributing Writers

Duncan Bellingrath, Tech. Sgt. Dana Cable, Johnathan D. Horton, George Jared, Susannah Marshall, Rob Nichols, and Randy Scott

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

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

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

Columns

04 Chairman’s Column 08 Washington Update 10 Commissioner's Column 14 Emerging Leaders

Features

18 Re-Presentment Fees

French Hill writes a letter to the FDIC

34 Veteran + Banker

We introduce you to three veterans who found careers in the field of banking

COVER STORY

22 Power Shift

What divided government means for the banking industry

Departments BANKER Q&As

12 The Millennial Minute: John Whisnant

16 Five Minutes With ...

Reggie Rose

INDUSTRY UPDATES

27 Cathy Owen Profile

Cathy Owen named to American Banker’s Power Watch List

28 Rise in Check Scams

The rise in scams also raises a lot of questions

30 Mega Conference

Bankers gathered in September in Little Rock for this two day event

31 Emerging Leaders Conference In October dozens of bankers came together in Rogers, AR

Bay Trophy 33 Tampa Larry Wilson awarded

prestigious Tampa Bay Trophy

43 NEWS & MOVES

THE ARKANSAS BANKER

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PRESIDENT’S MESSAGE

Lorrie Trogden | President & CEO | Arkansas Bankers Association

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et’s talk about pilots. We are all pilots in many ways and for different vehicles. For

instance, I hope you feel that the ABA team have been good pilots of the association “airplane,” and have met your needs while helping ease your pain points.

All of you are pilots with the association - your bank, your industry, your communities, and your personal lives. Let’s talk about your role in piloting the association and your industry, and what a great pilot so many of you have been for the Arkansas Bankers Association. The ABA plane flies for you, but could not fly without you.

A hugely important factor in your flying the association is participating in ABA leadership.

Nominations are open now for new Board members, Board Vice Chairman, Treasurer, Emerging Leaders Section Council, and Group Vice Chairman. You can nominate yourself or someone else, and you can make multiple nominations. Serving in an ABA leadership position not only allows you to give back to the profession that we care so much about, but also provides you with an outstanding leadership and professional development opportunity. This is an opportunity to function at a higher volunteer level and get involved in setting the future direction of the Association.

ABA leadership and the Board value and strive for inclusive representation of volunteer leaders that reflects our organization, membership, and profession. Our success today and into the future relies on our ability to capitalize on diverse perspectives and points of view resulting from a balance of race, gender, age, experience, industry, skill set, nationality, ethnicity, and other factors deemed relevant. The nomination process fully appreciates, considers, and is informed by the value derived from diverse representation. I encourage you to keep this in mind when making your nominations.

You can find the link to nominations in the main banner on our website (arkbankers.org) or in the banner at the top of the weekly eNews email.

You pilot our industry, which in turn helps you pilot your banks and communities. With our Women in Banking Conference coming up in January, we will recognize an outstanding female industry and community pilot with our Power Woman in Banking Award. Nominations are now open, and the link can be found in the main banner on our website or in the banner at the top of the weekly eNews email. (If you are not receiving the email each Tuesday, please let anyone at the office know and we will get you added.)

Another way you pilot our industry is government relations advocacy. 2022 has been a tough regulatory year. We are facing regulatory challenges from every federal regulator, most often coming through regulatory enforcement rather than the appropriate rule making process. The Texas Bankers Association along with the American Bankers Association have filed a lawsuit against the Consumer Financial Protection Bureau for not following the congressionally mandated rule making process. I will keep you informed of any movement in that case. Earlier in December, Congressman French Hill

“Your wings already exist; all you have to do is fly.”

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sent a letter to agency heads and also questioned them during a Financial Services Committee hearing about changing the exam manual for representment and penalizing banks without ever having gone through the rule making process, giving advance warning, or implementation time. We continue to lobby on this issue.

Our 2023 state legislative session starts the second week of January, and I won’t sugar coat it, it is going to be tough. Many of the ESG related issues at the federal level are rolling downhill and being picked up by the states.

When it comes to banking the firearm and fossil fuel industries, banks are being accused of intentionally withholding credit. We all know there are a myriad of reasons that banks may not extend credit, and we are already lobbying bills that are bringing the fight to Arkansas.

Our message is simple and straightforward: let banks be banks and do not tell us who we can and cannot bank. As we go through the session, I will continue to keep you updated on what bills are being filed. You may see advocacy alerts and calls to action from us, and I urge you to call your local legislators as hearing from their constituents makes all the difference.

I’ll leave you with one last piloting metaphor.

All of this seems daunting, but when everything seems to be going against you, remember that the airplane takes off against the wind, not with it. (I have shown great restraint in not quoting the “wind beneath your wings” song.)

Always remember, the ABA is here fighting for you and with you!

Lorrie Trogden, President & CEO

MEET THE 2022

CONSUMER LENDING SCHOOL

Graduates

ABA

OFFICERS Randy Scott, Chairman

Farmers Bank and Trust, Blytheville

Jim Taylor, Chairman-Elect First Security Bancorp, Rogers

Brad Chambless, Vice Chairman

Farmers and Merchants Bank, Fayetteville

Lori Ross, Treasurer

Citizens Bank, Arkadelphia

Jim Cargill, Past Chairman Arvest Bank, Little Rock

Lorrie Trogden, President & CEO

Arkansas Bankers Association, Little Rock

Consumer Lending School led by instructor and bank professional, David Kemp of Bankers Management, Inc.

Kassey Hart

ARVEST BANK - SHERWOOD

Seth Franklin Haney CHAMBERS BANK - ATKINS

Brett Lee Wilkins

CHAMBERS BANK - RUSSELLVILLE

Sheila Calvillo

CS BANK - BERRYVILLE

Jordyn A. McNally

BOARD OF

Karlea Newberry

Duncan Bellingrath, Hot Springs

SIGNATURE BANK OF ARKANSAS BENTONVILLE SIGNATURE BANK OF ARKANSAS HARRISON

Sarah Salsbury

SIGNATURE BANK OF ARKANSAS FAYETTEVILLE

Shawna French

Cam Coleman

Andrea Peterson

Abby Hardy

Kassandra Whorton

Scott Lambert

CS BANK - HARRISON CS BANK - EUREKA SPRINGS CS BANK - HUNTSVILLE

Clayton Livingston

FBT BANK & MORTGAGE - FORDYCE

Chad Selman

FIRST STATE BANK - RUSSELLVILLE

Sam Piche

SOUTHERN BANCORP - LITTLE ROCK SOUTHERN BANCORP - WEST HELENA

Robert Husong, Rogers Gary Kleck, Springdale Cody Knight, Piggott

PJ Harness

Scott Saffold, Monticello

Kathleen McClung

Loren Shackelford, Fayetteville

STONE BANK - MOUNTAIN VIEW STONE BANK - MOUNTAIN VIEW

Jessica Floyd

Jessica Reynolds

Justin Barrett

Brooke Alberson

Parker Cole

Ashley Jeffries

Allicen Long

PIGGOTT STATE BANK - PIGGOTT

Joe Dunn, Little Rock

Wilson Moore, Little Rock

THE FIRST NATIONAL BANK AT PARIS PARIS

PIGGOTT STATE BANK - PIGGOTT

Kenya Davenport, Little Rock

SOUTHERN BANCORP - STUTTGART

GENERATIONS BANK - ROGERS GENERATIONS BANK - CAMDEN

DIRECTORS

THE UNION BANK OF MENA - MENA

Rob S. Tiffee, Little Rock Jamie Waller, Magnolia Scott Walker, El Dorado Jay Wisener, Little Rock

UNITED BANK - SPRINGDALE UNITED BANK - SPRINGDALE THE ARKANSAS BANKER

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CHAIRMAN’S C O LU M N

Be A Voice Randy Scott | Chairman | Arkansas Bankers Association

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ith the election season finally behind us, we can focus on the future. In Arkansas, we saw

no real surprises in the election outcomes.

Our industry will be represented well in Washington, DC, and Little Rock. We have sent our checks and attended their fundraising events for the past year. More importantly, we can bend their ears on issues important to our banking industry, communities, and customers. We need to be a voice.

Our congressional delegates often lean on the banking industry as their “boots on the ground.” In northeast Arkansas, bankers know about the steel and row crop industries. In southwest Arkansas, bankers are experts in the timber and poultry industry, while in northwest Arkansas, our expertise may be in trucking or logistics.

Congress understands the scope of our knowledge. They know that the issues of these industries affect the banking industry and our communities. Please use our credibility and build on your relationships with elected officials. I can call on my local Representative, Joey Carr, or State Senator Dave Wallace to talk about banking or steel industry issues; Scott Saffold in Monticello can call on Representative Wardlaw and talk about gun bill issues. Robert Husong in Rogers may call on Senator Bart Hester or Representative Josh Bryant to talk about NW Arkansas issues. The operative phrase is “call on.” We need to stay in touch.

If you are an emerging leader, here is an excellent opportunity to use your influence: Twice a year, ABA takes a delegation of bankers to Washington to meet with federal regulators and our congressional 4 • WINTER 2022

“Please use our credibility and build on your relationships with elected officials... If you are an emerging leader, here is an excellent opportunity to use your influence: Twice a year, ABA takes a delegation of bankers to Washington to meet with federal regulators and our congressional delegation.” delegation. DC staffers, most of whom are the age of our emerging bankers, play essential policy roles. They relate better to you than to a 54-year-old bald man who has been a career banker for 31 years. We need you to communicate with them in the language they understand.

Right now, several hot topics in DC are crucial to our industry. The SAFE Act would give banks a safe harbor for banking cannabis-related businesses. Thirty-seven states have legalized cannabis for medical use.

While we are not saying we support the legalization of marijuana, leaving the cannabis industry unbanked is not a viable option.

Equal Credit Opportunity for Rural America (ECORA) is another critical program. This bill puts our industry on offense instead of always being on defense. This would allow banks not to pay federal income taxes on interest income earned on loans secured by farmland or loans secured by rural residential real estate. We would gain equal footing with Farm Credit, which does not pay federal income taxes on interest earned on these loans. The passage of

ECORA would allow us to lower our interest rates by 1.5-2.0%, making us more competitive with Farm Credit. In January, we are also introducing a similar bill on the state level. If you get the chance, talk to your local representatives about ECORA—another opportunity to use your voice.

Other federal issues are many, including new overdraft-representment fee guidance from the FDIC, small business data collection requirements from CFPB, the introduction of ESG legislation, and the list goes on and on. With so much at stake, we may call on you over the next few months to contact your representatives. Please be prepared to be the voice of our industry.

And on a separate note, I want to take an important moment to recognize Jim Cargill. He recently retired from Arvest Bank after 37 years. Jim has been a great role model for me over the past few years and a great role model for our industry. His service to the Little Rock community and the banking industry has been beyond measure. Congratulations, Jim and Kathleen!

Enjoy retirement.

THE ARKANSAS BANKER

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PROFESSIONAL D E V E LO P M E N T

Calendar of Events JA N UA R Y - M A R C H 2 0 2 3

Jan 12

THURSDAY 10:30 A.M.­– 12 P.M.

2023 MIDWEST ECONOMIC FORECAST FORUM

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LOCATION: Virtual Learning

Come join us for an exciting look back at 2022! This threehour virtual session will review compliance updates and hot topics that arose in 2022, as we discuss what has changed and what we may expect to see going forward for 2023.

INSTRUCTOR: Elizabeth Madlem LOCATION: Virtual Learning

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WEDNESDAY 9 A.M.­– 4 P.M.

WOMEN I N B AN K I NG C ONFERENCE

Back in person, don't miss this year's Women in Banking Conference, designed to bring together the unsung majority of Arkansas bankers for both networking and fellowship. Gain insights on visionary leadership and strategic thinking. Collaborate, discuss and network with your industry colleagues. Get fresh ideas and create lasting friendships – all in a fun and dynamic environment!.

LOCATION: Clinton Presidential Center, Little Rock

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IRAS: ADVANCED ISSUES

During this seminar, we’ll get into the nitty gritty of the new distribution regulations, exploring—in depth—how these new rules impact both IRA owners and IRA beneficiaries. After dissecting the new rules and their impact, we’ll discuss concrete steps your financial organization can take to help ensure ongoing compliance while also providing top-notch customer service.

INSTRUCTOR: Convergent

INSTRUCTOR: Christie Drexler

THURSDAY 9 A.M.­– 12 P.M.

COMPLIANCE REVIEW AND HOT TOPICS IN 2022

ESSENTIALS OF B A N K I N G : PA R T I

THU RS DAY 9 A. M .­– 4 P.M.

We are pleased to offer the Essentials of Banking Series, designed to provide a complete overview of banking principles and operations.

This four-part virtual series is a must for the new bank employee, bank veterans who are looking to deepen their banking knowledge, and all bank staff with up to five years’ experience in the industry.

Prepare for 2023 by joining an economic outlook with St. Louis Fed President James Bullard during this virtual event. Then listen to Augustine Faucher, Chief Economist with the PNC Financial Services Group, as he shares what he expects in 2023 and beyond.

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THU RS DAY 9 A. M. ­– 4 P. M.

Feb 09

Learning

LOCATION: Virtual Learning

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TU E S DAY 9 A. M. ­– WEDNESDAY 3: 30 P.M.

BSA / A M L F UN DA M E N TA LS S CHO O L

LOCATION: Arkansas Bankers Association

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THU RS DAY 9 A. M .­– 4 P.M.

ESSENTIALS OF BANKING: PART II

This school provides the framework for understanding the BSA team’s roles and responsibilities for BSA/AML and OFAC compliance. We will provide current, updated tools, techniques, and “real world” practice and examples for learning the critical components of a BSA/AML Program plus more!

We are pleased to offer the Essentials of Banking Series, designed to provide a complete overview of banking principles and operations. This four-part virtual series is a must for the new bank employee, bank veterans who are looking to deepen their banking knowledge, and all bank staff with up to five years’ experience in the industry.

INSTRUCTOR: Dianne Barton

INSTRUCTOR: Christie Drexler

LOCATION: Virtual Learning

LOCATION: Virtual Learning

Don’t Forget!

Women in Banking Conference JA N UA R Y 2 5 T H

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

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WEDNESDAY 9 A .M .­– T H URS DAY 4 P.M.

SUPERVISOR BOOT CAMP

Mar 23

THU RS DAY 9 A. M.­– 4 P.M.

ESSENTIALS OF BANKING: PART III

Designed to provide a complete overview of banking principles and operations, this four-part virtual series is a must for the new bank employee, bank veterans who are looking to deepen their banking knowledge, and all bank staff with up to five years’ experience in the industry.

Learn how to collaborate and coach your employees to excel on the job. Explore the coaching and leadership skills that lay out your plan for success as a highly effective supervisor in this results-oriented workshop!

INSTRUCTOR: Karen Butcher

INSTRUCTOR: Christie Drexler

LOCATION: Arkansas Bankers Association

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MO NDAY 9 A .M.­– F R I DAY 4 : 3 0 P.M.

COMMERCIAL LENDING SCHOOL

This school exposes students to the major issues commercial lenders face. Eleven different instructional modules along with group case study work will address multiple topics and are taught and led by top-notch banking veterans who will give you plenty of opportunity to ask questions, share concerns, and learn from the best!

LOCATION: Virtual Learning

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ADVANCED BSA/AML COMPLIANCE SCHOOL

This comprehensive school, including an advanced session, will cover lending, deposits, operations and BSA topics to give a well-rounded view of the compliance landscape. Attendees will have opportunities to connect with the speakers and network and discuss common issues with their community banking peers.

LOCATION: Arkansas Bankers Association

Mike Wasson

T UES DAY 9 A .M.­– WEDNES DAY 3:30 P.M.

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MO N DAY 8 A. M. ­– FRI DAY 5 P. M.

GSB HUMAN RESOURCE MANAGEMENT SCHOOL

INSTRUCTOR: Dianne Barton

GSB Wisconsin offers this respected one-week school that provides the foundation for new or veteran human resource professionals to tie together important issues in human resource management with an understanding of the business of banking.

LOCATION: Virtual Learning

LOCATION: GSB Wisconsin

This school focuses on the latest changing BSA arena and offers tips and tools to develop and manage an “adequate” and “an effective and reasonably designed” BSA program..

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INSTRUCTOR: Elizabeth Madlem

INSTRUCTOR: Ron Rushing & LOCATION: Arkansas Bankers Association

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

THE ARKANSAS BANKER

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WASHINGTON U P DAT E

Reining in a Regulator

GONE ROGUE

Rob Nichols | President and CEO | American Bankers Association

I

n an American Banker op-ed earlier this year, I called out the CFPB under the leadership of Rohit Chopra as a “regulator gone rogue.” I’m not alone in my

criticism: in September, 12 Republican lawmakers took the bureau to task over what they called a “radical and highly-politicized agenda unbounded by statutory limits.”

Unfortunately, the bureau has continued to push legal boundaries on several different fronts in recent months.

First, the bureau has waged an aggressive PR campaign against so-called “junk fees”—using a term it coined to demonize

Another alarming step by the Chopra bureau was its decision to update the UDAAP section of its exam manual in a way that fundamentally upends the regulatory approach to fair lending supervision and enforcement, without providing industry stakeholders or the public the opportunity to provide feedback through the notice and comment process under the Administrative Procedure Act. Instead, the CFPB chose to take a backdoor route to expand its authority—giving itself the ability to examine for alleged disparate treatment or impact across all areas of bank operations using the authorities granted by the Dodd-Frank Act

“Another alarming step by the Chopra bureau was its decision to update the UDAAP section of its exam manual in a way that fundamentally upends the regulatory approach to fair lending supervision and enforcement, without providing industry stakeholders or the public the opportunity to provide feedback through the notice and comment process under the Administrative Procedure Act.” the legitimate fees, including overdraft fees, that banks charge consumers for the products and services they offer. Throwing these fees in with things like concert ticket processing fees, resort fees and other surprise fees charged by retailers and hospitality businesses was a deliberate move to confuse the public about the well-disclosed fees they currently pay. (For the record, banks don’t charge resort or ticket fees, nor does the CFPB have authority to regulate those types of fees.)

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under its authority to prevent “unfair, deceptive or abusive acts or practices.”

In reality, the CFPB’s authority to enforce anti-discrimination laws is limited to credit products. It’s clear that this move is an attempt by the bureau to set itself up as a “super-regulator” of financial practices using authority Congress did not give it.

To be clear: ABA fully supports the fair enforcement of the nation’s anti-discrimination laws. We simply believe these laws should be enforced by regulators within the

boundaries set by Congress. This updated manual does not qualify.

Given that the bureau has not seen fit to rescind the manual—despite previous calls from ABA and other trade groups—we were left with no choice but to pursue legal action. ABA’s lawsuit, which was filed in late September jointly with the U.S. Chamber of Commerce, the Longview Chamber of Commerce, the Texas Bankers Association, the Independent Bankers Association of Texas, the Texas Association of Business and the Consumer Bankers Association, alleges violations of the APA in three ways.

First, the bureau is exceeding its statutory authority outlined in Dodd-Frank, which is clear that “unfairness” under UDAAP and discrimination are distinct concepts that should not be conflated. Second, the updated manual is “arbitrary and capricious,” in violation of the APA. Finally, it violates the APA’s procedural requirements because it constitutes a legislative rule that failed to go through notice and comment.

It’s never our preference to take legal action against a regulator. And this lawsuit doesn’t mean we’ve given up on finding common ground with the bureau. In fact, on issues like the need to protect consumer data, or the need to make sure nonbanks face the same regulatory requirements as banks for similar activities, or the importance of relationship banking, our goals are very much aligned.

But when a regulator—any regulator— takes a step like this to dramatically expand its regulatory reach without authorization from Congress or any opportunity for the public to weigh in, ABA will respond on behalf of our members and the industry we represent.

Email Rob at nichols@aba.com.

THE ARKANSAS BANKER

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COMMISSIONER'S C O LU M N

The Liquidity Spectrum Susannah Marshall | Commissioner | Arkansas State Bank Department

D

uring my career, I have always heard the following comment: “You only need Liquidity on

one day.” Certainly, that is not an accurate statement, banks need Liquidity every day to meet funding needs. However, that need looks different for each institution and changes within a day, week, month, quarter, etc. When 2020 started, Liquidity was on my list of top priorities and issues facing the banking sector. The pandemic arrived with a vengeance, changed the world and through economic conditions and monetary stimulus actions, banks across the country, and in Arkansas, instantly became flush with Liquidity. Reliance on secondary or noncore funding sources quickly diminished and many banks were suddenly faced with the unique issue of excess Liquidity.

Fast forward to mid-2022, we began to see and hear about sizable outflows of deposits which continue in today’s environment. With the rapid and significant increase in interest rates during the same timeframe, and the return to a more normal business cycle with increases in loan demand, the tables have quickly turned, and we once again find Liquidity on the list of significant risks facing the industry. I receive calls daily from bankers, and Liquidity and Funds Management is easily the most common topic of discussion. The rate environment has dramatically impacted the market value of banks’ investment portfolios, thus limiting their ability to serve as a source of Liquidity. To compound that impact, the unrealized losses on investment portfolios and the resulting effect on tangible equity capital is creating a potential issue for a bank’s borrowing authority with the Federal

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“... now is the time for all institutions to evaluate their Contingency Funding Plans and determine the suitability of those options in relation to today’s rate environment and highly competitive market.”

Home Loan Bank. Furthermore, the need to ensure your bond values adequately meet pledging requirements for public deposits should also be an area of focus in this current cycle. Lastly, as in years past, we are once again receiving inquiries about the regulatory posture on brokered deposits and other alternative funding sources. With that in mind, now is the time for all institutions to evaluate their Contingency Funding Plans and determine the suitability of those options in relation to today’s rate environment and highly competitive market.

From my perspective, you can summarize the conversation about Liquidity in two words: availability and affordability.

It is also a story of have and have not. In Arkansas, there has always been a number of banks that remain well supported by a strong deposit base with a lower level of loan demand while some institutions must continually manage and monitor their funding structure to meet needs and opportunities.

What will 2023 look like in relation to the availability of diversified funding sources?

In today’s highly competitive market, the number and type of firms competing for consumers’ deposits and investment dollars is significant. Banks are no longer simply competing for funds with other depository

institutions, but with a large contingent of financial service providers such as insurance companies, investment, and brokerage firms and fintech companies, just to name a few. As interest rates have risen, so has the ability for the consumer to identify and expect a larger return on their money.

Rising interest rates and the overall costs of obtaining adequate funding sources places a significant challenge on institutions to effectively manage costs and spread as it pertains to Liquidity, asset/liability management and earnings.

Examiners’ analysis and evaluation of a bank’s Liquidity and Funds Management position will be highlighted in examinations for the foreseeable future. Institutions that are operating at a higher level of loans-to-deposits, banks that are more reliant on secondary funding sources and banks that operate with a lower level of on-balance sheet Liquidity are encouraged to spend additional time reviewing, developing and updating plans and projections to address the availability and affordability of Liquidity now and in the future. Liquidity risk is at the forefront of concerns as we close out 2022 and I encourage each Board and management team to elevate this discussion within your institution in the near term.

THE ARKANSAS BANKER

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BANKER Q&A

THE

MILLENNIAL MINUTE with John Whisnant Commercial Lender Relyance Bank, Little Rock

CAN YOU TELL US A LITTLE BIT ABOUT YOURSELF? I grew up here in Little Rock where I went to Pulaski Academy from 1st grade through high school. I attended the University of Arkansas in Fayetteville and came right back home to Little Rock after graduating. My dad worked as the CFO for a company specializing in the billing of health clubs across the country. This piqued my interest in going into the finance world in some fashion. My mom stayed home and took care of me, my older brother, and younger sister. I have four kids (three boys, one girl) that occupy most (or all) of my time.

I met my wife in college and she is the best partner and spouse, and I don’t know where I would be without her.

HOW DID YOU FIND YOUR WAY INTO BANKING? WHAT MADE YOU DECIDE TO ENTER BANKING? After graduating with a major in Accounting and minor in Finance, all I knew was I did not want to be an accountant, although I thoroughly enjoy numbers. I wanted to get out more and interact with people and figured banking/commercial lending could help bridge the gap of interactions and number crunching.

NOW THAT YOU'VE SPENT SOME TIME IN BANKING, WHAT DO YOU LIKE BEST ABOUT IT AND WHY? I enjoy both sides of this business. The customer interaction is first, because the relationships are most important in this industry and by far the most fun. Second is the number crunching. With so many industries and businesses to work with, it keeps the job fresh as no two businesses or industries are alike. I have also loved the personal relationships I have devel-

oped with my coworkers. Working in an environment with good people makes life and work much more enjoyable, and I am lucky to say I have worked with great people for my whole career.

WHAT'S THE BEST ADVICE YOU'VE EVER BEEN GIVEN? My dad always told us to accept responsibility. Whenever you screw up or something doesn’t go the way you want, step up and take responsibility for your own actions.

WHAT'S SOMETHING THAT PEOPLE MAY NOT KNOW ABOUT YOU THAT YOU THINK WOULD SURPRISE THEM? I worked at a branch that was robbed at gunpoint during my first three months on the job as a teller! Luckily, no one was harmed and he was caught a few days later. I may have thought about a career change for a minute, but obviously that didn’t happen.

“With so many industries and businesses to work with, it keeps the job fresh as no two businesses or industries are alike. I have also loved the personal relationships I have developed with my coworkers.”

12 • WINTER 2022

THE ARKANSAS BANKER

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EMERGING LEADERS

Discovering

Leadership Duncan Bellingrath | President | Emerging Leaders Section

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am honored to be serving as the 2022-2023 President of the Emerging Leaders Section (ELS) of the ABA. I graduated from the University of Arkansas at Fayetteville with a degree in finance with a dual concentration in banking and financial management and investments. I remember dreaming of being a banker when I was in elementary school, so I can honestly say that I am living my dream! I began my banking career with Simmons Bank as a commercial lender in Pine Bluff. I transitioned to Hot Springs

in September of 2021 and now serve as the Community President for Simmons Bank for our Hot Springs market.

When I became involved in the Emerging Leaders Section following the ABA Fall Conference in 2018, I started thinking about what leadership means beyond its dictionary definition. I have learned that leadership can have many different meanings because it is a complex and multifaceted concept. Different people have different ideas about what leadership means and what it involves. Additionally, the meaning of leadership can vary depending on the context in which it is being discussed. For example, leadership in a business setting may have different connotations than leadership in a political or social context. All of these different perspectives and contexts contribute to the many different meanings of leadership.

To me, leadership means being a guiding force for others, whether that be within a team or organization, or within a community. It involves setting a clear vision and direction, and inspiring and motivating others to follow that vision.

Leadership also involves being a good listener and communicator, and being able

14 • WINTER 2022

to work effectively with others to achieve shared goals. As a leader, I believe it is important to continually learn and grow, and to be open to new ideas and perspectives which is one of the great things that I have been able to do as a member of the ELS.

new members, we can help to create a vibrant and engaged community of emerging leaders. This will not only benefit our members, but it will also benefit the banking industry as a whole. The three areas of focus in 2023 are: Promote banking

“As President of ELS, my goals for 2023 are to get more bankers involved and get active membership above our pre-pandemic levels. By getting our members more involved and recruiting new members, we can help to create a vibrant and engaged community of emerging leaders. ” I have been able to develop new skills and learn with and from other bankers and leaders from around the state.

As President of ELS, my goals for 2023 are to get more bankers involved and get active membership above our pre-pandemic levels. By getting our members more involved and recruiting

as a career with an emphasis on diversity and equity inclusion, education and political advocacy, and finally, promoting the Emerging Leaders Section.

We have a great group of diverse council members for the 2022-2023 year. I cannot wait to see what we will learn and accomplish together.

SIMMONS BANK Hot Springs Group 3

LATRECIA BRANCH VICE PRESIDENT STONE BANK Little Rock Group 1

IAN BRYAN SECRETARY/ TREASURER SIMMONS BANK Russellville Group 2

ELS COUNCIL MEMBERS AARON BELL

BRANDI RAY

FIRST SECURITY BANK Jonesboro Group 1

FARMERS BANKS AND TRUST COMPANY Malvern Group 3

TAMMY ENGLE

CHANCE ROBBINS

ARVEST BANK Siloam Springs Group 2

CS BANK Eureka Springs Group 2

STEVE HOLMES

LAUREN STATON

ARVEST BANK Little Rock Group 1

RELYANCE BANK White Hall Group 3

AMBER MURPHY AT LARGE

ALLISON WILLIAMSON AT LARGE

FIRST FINANCIAL BANK El Dorado Group 3

SIMMONS BANK Marshall Group 2

S E C T I O N

DUNCAN BELLINGRATH PRESIDENT

EMERGING LEADER

ELS EXECUTIVE COMMITTEE

THE ARKANSAS BANKER

• 15

BANKER Q&A

FIVE VE minutes with...

Reggie Rose

Regional Community President Simmons Bank, Pine Bluff

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

A.

We spend a lot of time talking about cultivating relationships and building our networks, etc. I like to take that a step farther, so I work very hard on cultivating and building relationships within our organization. Simmons Bank is full of talented individuals with a plethora of institutional and industry knowledge. I want to have incredibly strong relationships within the organization because those relationships and the

knowledge I glean from those individuals make me a better leader, a better banker and honestly a better person. One of our Cultural Cornerstones at Simmons Bank is “Better Together.” I believe in that.

Q. WHAT TRAIT DOES THE MODERN BANKER NEED TO HAVE TO BE SUCCESSFUL?

A.

Accessibility. No such thing as “bankers’ hours”. You must be willing and available whenever your customer needs you or the bank’s services.

“Communicate with your customers on a regular basis. It has never been easier to communicate than it is today. Phone calls should be returned and emails and texts should be replied to in a timely manner. If you are not being responsive to your customers, they will find a competitor of yours that is!”

16 • WINTER 2022

I want to have incredibly strong “ relationships within the organization because those relationships and the knowledge I glean from those individuals make me a better leader, a better banker and honestly a better person.

”

Q. WHAT ADVICE DO YOU HAVE FOR YOUNG BANKERS STARTING THEIR CAREERS?

A.

Communicate with your customers on a regular basis. It has never been easier to communicate than it is today.

Phone calls should be returned and emails and texts should be replied to in a timely manner. Even if the reply is “I need to get back to you on this”. If you are not being responsive to your customers, they will find a competitor of yours that is!

Q. HOW HAS YOUR LIFE

EXPERIENCE MADE YOU THE LEADER YOU ARE TODAY?

A.

Since I come from a non-banking background, my life experience is a

little different! For almost twenty years I was fortunate enough to work for some of the best business people and leaders in the state of Arkansas. My wife’s family has a longtime family business in Conway, so I’ve learned a lot from her and her business as well. Lastly, my parents are both retired educators, and that gives me a whole different perspective on a lot of societal issues. I’ve tried to take the best of all those relationships and experiences and mesh them into a leadership style that serves my customers and fellow co-workers well.

Q. WHAT DO YOU LISTEN

TO ON YOUR MORNING COMMUTE?

A.

Fox Sports or Fox Business, sometimes Bobby Bones!

THE ARKANSAS BANKER

• 17

How Will Re-Presentment

be Resolved?

by Roby Brock

A

rkansas bankers are well aware of the FDIC’s year-long increase in aggressiveness related to the issue of re-presentment.

This action happens when a debit card transaction is denied due to insufficient funds (NSF). When a retailer or business runs the transaction again, and the account is still in the negative, it is denied again by the bank. Banks don’t have control over when the transaction is “re-presented” for payment.

The Federal Deposit Insurance Corp. has been warning banks that it will consider enforcement actions if the banks it supervises are repeatedly charging NSF fees for the same transaction. In recent months, the FDIC has issued guidelines that these multiple NSF fees on the same unpaid transactions could be violating the Federal Trade Commission Act, which prohibits "unfair or deceptive acts or practices."

That spawned a letter from U.S. Rep. French Hill to the FDIC’s acting director and chairman Martin Gruenberg. Hill asked Gruenberg for clarification on how re-presentment is an “unfair or deceptive” act and he requested an explanation of how the agency could move forward with this interpretation without rulemaking, much less an act of Congress.

As of press time, Gruenberg had not responded to Hill’s request. You can read Hill’s initial letter on the following pages.

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18 • WINTER 2022

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F R E NC H H I LL'S LE T T E R TO TH E F DIC

THE ARKANSAS BANKER

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20 • WINTER 2022

F R E NC H H I LL'S LE T T E R TO TH E F DIC

THE ARKANSAS BANKER

• 21

Power

»»»»»»»»»» WHAT DIVIDED GOVERNMENT MEANS FOR THE BANKING INDUSTRY

by Roby Brock

22 • WINTER 2022

Shift

»»»»»»»»»» I

t took weeks for the dust to settle, but America finally knows who will be in charge of Congress come January.

Due to close races, runoffs, legal challenges, and meticulous vote counts and recounts, citizens in states like Arizona, California, Colorado, Georgia and Nevada had to wait for weeks after the Nov. 8th election to learn who would officially represent them in the U.S. House and Senate. With the final tallies in hand, Democrats will own a 51-49 majority in the Senate, despite three members being Independents, and Republicans will have a 222-213 majority in the House.

THE ARKANSAS BANKER

• 23

»»»»»»»»»» While Republicans were expected to win the House by a larger majority, their slim victory was welcomed and sets a showdown for real power struggles within the Republican caucus. Democrats will usher in new top leadership with Speaker of the House Nancy Pelosi relinquishing control to U.S. Rep. Hakeem Jeffries, D-New York, who will be the new House Minority Leader.

NEW WAY OF CONDUCTING BUSINESS

After your head stops spinning from all of the historical turmoil, it’s time to analyze what divided government will mean for any group pushing for legislative changes, especially the banking industry.

Kirsten Sutton, executive vice president of Congressional relations and legislative affairs for the American Bankers Association,

»»»»»»»»»»»»»»»»»»»»»»»»» “I think that this administration will be really looking to the regulatory agencies because Congress is no longer going to be able to deliver in the way that it was under united Democratic control.”

- Kirsten Sutton, executive vice president of Congressional relations and legislative affairs for the American Bankers Association

»»»»»»»»»»»»»»»»»»»»»»»»» Rep. Kevin McCarthy, R-Calif., is the favorite to be the new Speaker of the House, but there is contention within the GOP caucus that, for now, keeps his ascension likely, but not definite.

The Senate will remain in Democratic control. For the first time in over a century no incumbent senators lost and, uncharacteristically, President Joe Biden’s party kept control of the upper chamber in a midterm election. U.S. Senator Kyrsten Sinema, I-Arizona, dropped her Democratic party label right after the election and will be one of three Independents in the Senate. She plans to caucus with the Democrats like Sen. Bernie Sanders, I-Vermont, and Sen. Angus King, I-Maine, both do.

24 • WINTER 2022

said there was a bipartisan sense of being underwhelmed by the election results.

Democrats were disappointed to lose united government and Republicans were not satisfied with stronger gains.

"I think that folks are just feeling a little bit frustrated at what everyone knows and anticipates will be probably a lot of gridlock next Congress. Many suspected that Republicans would take the House in a more meaningful way, and that would mean some potentially, not huge changes, but more significant changes. The margin is so tight, it's going to be very challenging for this Congress to get anything accomplished legislatively," she said.

Sutton notes that tight margins in either chamber usually leads to bills being

attached to bigger “must-pass” legislation.

For instance, a bill that could affect the banking industry might find itself as one of several appendages to a major spending bill or a defense reauthorization package. It’s not the ideal way to legislate, but it often becomes the only way to get things done.

There is a greater chance that a divided Congress may result in more decisions defaulting to regulatory agencies, and Sutton warns that requires different lobbying strategies and a completely different approach to lawmaking.

“I think that this administration will be really looking to the regulatory agencies because Congress is no longer going to be able to deliver in the way that it was under united Democratic control,” she said. “I think that the agencies are going to be getting even more play than they did before. The one mitigating factor is that Republicans in the House and Senate are going to be very focused on oversight. They have said that, and they have a few more tools in their tool belt moving into the majority that they'll be able to use.

“I think you'll see heightened activity coming out of the regulators and heightened scrutiny from Congress, particularly House Republican gavels, in the actions taken by these regulatory agencies. Those are some things that I would be watching for,” Sutton added.

KEY ISSUES

ESG – Environmental, Social and Governance – will remain a political hot potato. The topic is ill-defined in the political lexicon and it carries a lot of different meanings to various constituencies and stakeholders.

Generally speaking, ESG refers to a set of standards for socially conscious investing.

That could mean a large bank’s stock investments in “green” companies that oppose

»»»»»»»»»» fossil fuels. It might define the types of companies a smaller bank will make loans to. It could also mean a community bank’s support for sponsoring Little League baseball or a local recycling program.

Sutton says the subject is a tough one to pin down.

“I will say that both sides of the aisle are incredibly interested in that term and what it means. And there's political pressure from both sides of the aisle, either for regulators to engage or to not engage. So, I think you could be seeing more ESG work out of some of the regulatory bodies,” she said.

While ESG is politically divisive, there may be more bipartisan support in the next Congress to address the banking industry’s push to change the tax treatment on mortgage loans made in agricultural and rural areas.

ECORA - Enhancing Credit Opportunities in Rural America – would alter the law for bankers providing credit to farmers. Sutton said the name of the proposal may change by the next Congress, but its support crosses party aisles.

“To me, it's a no-brainer. It's pro-ag, it's pro-farmer, pro-rancher, and there is bipartisan support for the bill,” she said.

“I'm hopeful that we will continue to see increasing bipartisan support for ECORA moving into next Congress.”

REGULATORY REACH

Sutton expects the CFPB – the Consumer Financial Protection Bureau – to stretch its boundaries in new directions.

That agency’s director, Rohit Chopra, has been aggressive in his stances to regulate financial activities, such as a credit card fees, lending practices, and bank standards.

With the division in Congress, she also expects other agencies – the OCC and FDIC, for instance – to increase regulatory scrutiny of banks.

“I think the regulators feel that they have more unilateral authority to regulate the industry or change what the industry looks like for them,” she said.

Although the regulatory activism sounds daunting, Sutton believes Republican oversight in the new Congress will be helpful to banks. There will be champions, such as for-

recreational marijuana. Federal law prohibits legal possession of marijuana and restricts financial institutions from providing banking services to these businesses.

The SAFE Act – the Secure and Fair Enforcement Banking Act - would allow banks to enter the service arena for the marijuana market.

»»»»»»»»»»»»»»»»»»»»»»»»» ESG – Environmental, Social and Governance – will remain a political hot potato. The topic is ill-defined in the political lexicon and it carries a lot of different meanings to various constituencies and stakeholders.

»»»»»»»»»»»»»»»»»»»»»»»»» mer banker and Arkansas Second District U.S. Rep. French Hill, R-Little Rock, in the middle of several financial services committees. Hill’s experience in private banking and as a former U.S. Treasury official has garnered a bipartisan reputation as a thought leader on financial issues. Sutton said he’s often looked to for guidance on complex banking issues.

“His understanding of these policy issues, his experience working at Treasury has really given him incredible insight into a lot of the legislative and regulatory issues that we have to deal with,” she said.

LAME DUCK, STATE LEGISLATIVE ACTIVITY

Sutton sees a potentially positive development happening in the lame duck session of Congress that will conclude before year’s end.

After November’s elections, there are 39 states that have legalized medical or

“As we talk today with the lame duck still underway, we remain hopeful that we can get SAFE across the finish line in this Congress. If not, we will try again next year because we know this bill enjoys strong bipartisan support, and every day we don’t pass the SAFE Banking Act is another day that places public safety at risk.”

That optimism for consensus on the SAFE Act is tempered with the challenges of monitoring activity in 50 state legislatures, who are now more commonly taking up federal issues.

ESG, for instance, which will get a workover at the federal level is also going to be a topic of interest in many state legislative sessions, including a good chance in Arkansas.

“I think we've seen 48 bills at the state level, and there are about 14 at the federal level around the concept of ESG, and many of them are conflicting. It's something that as an industry, I think we'll be spending a lot of time on,” Sutton said.

THE ARKANSAS BANKER

• 25

GSB 2023

SCHOLARSHIPS/ SCHOOL I N F O R M AT I O N In association with some of the top graduate banking schools in the United States, the Arkansas Bankers Association provides scholarships to deserving Arkansas bankers in order to encourage and promote excellence in the fields of banking and finance. Each school is comprised of face-to-face instruction by experienced and qualified instructors.

P R O C H N O W E D U C AT I O N A L F O U N DAT I O N A N D A R K A N S A S B A N K E R S A S S O C I AT I O N SCHOLARSHIP ( T WO S C H O L A R S H I P S AVA I L A B L E )

Graduate School of Banking at Wisconsin – Madison, WI Total Value: $4,500 ($1,500 for three years) Dates: July 30 – August 11, 2023 Deadline: May 2, 2023 GSB HUMAN RESOURCE MANAGEMENT SCHOOL SCHOLARSHIP

Graduate School of Banking at Wisconsin – Madison, WI Total Value: $1,050 Dates: March 27 – 31, 2023 Deadline: February 28, 2023

SWGSB MILLENNIUM SCHOLARSHIP

SMU Graduate School of Banking Southern Methodist University – Dallas, TX

Total Value: $1,500 for first year (up to three years) Dates: May 30 – June 9, 2023 Deadline: March 1, 2023

GSBC/ARKANSAS BANKERS A S S O C I AT I O N B O L D E R B A N K I N G SCHOLARSHIP

Graduate School of Banking at Colorado – Boulder, CO Total Value: $1,500 for first year (up to three years) Dates: July 16 – 28, 2023 Deadline: March 1, 2023 G R A D UAT E S C H O O L O F B A N K I N G AT L O U I S I A N A S TAT E U N I V E R S I T Y SCHOLARSHIP ( T WO S C H O L A R S H I P S AVA I L A B L E * )

Graduate School of Banking at LSU – Baton Rouge, LA Total Value: $4,445 for first year only (includes the $300 non-refundable application fee) Dates: May 22 – June 2, 2023 Deadline: March 1, 2023 *one scholarship available exclusively to women and minorities

JEFFREY AND DIANA OWEN SCHOLARSHIP FUND FOR EMERGING COMMUNITY BANK LEADERS

AmBA Stonier Graduate School of Banking University of Pennsylvania – Philadelphia, PA Total Value: $4,245 Dates: June 1 – 8, 2023 Deadline: March 1, 2023

Employees of ABA-member banking institutions who meet the admissions requirements of the graduate banking schools are eligible. These scholarships are specifically for first-year students of the programs.

To view more information and applications, go to www.arkbankers.org/ABA/Professional_Development/Banking_School_Scholarships.aspx

26 • WINTER 2022

INDUSTRY U P DAT E S

EAGLE BANK & TRUST’S CATHY OWEN NAMED TO AMERICAN BANKER’S POWER WATCH LIST

I

Cathy Owen has spent her decades-long professional career in banking capped by multiple awards and recognition, including the first and only female president of the Arkansas Bankers Association.

The Eagle Bank & Trust Co. Chairwoman was named to the American Banker’s Most Powerful Women to Watch list earlier this year. She is the only Arkansan on the list.

Owen has been a mentor and role model to many women over the years. She shared the changes she’s seen over the course of her career with American Banker, which profiled her in its October issue.

“Not many years ago,” said Owen, chair of Eagle Bank & Trust Co. in Little Rock, Arkansas. “I was often the only, or one of few, females attending bank leadership conferences. Nearly always, male bankers and vendors would introduce themselves to my husband and ask about his bank. He isn't in banking, so he would look at them and reply, 'I'm only the eye candy' and tell them they need to talk to his wife, the banker. It became a great way to get a chuckle, but also make a point.”

She added that this kind of interaction still happens on occasion today, even though it's a far rarer occurrence. In 2018, Owen became the first woman ever to lead the Arkansas Bankers Association, a position previously held by 127 men since its founding in 1891. “I hope the future brings a universal mindset, so that a female is always considered to be a possible peer,” she said.

Congratulations to Cathy Owen for well-deserved recognition and to a career that continues to impress.

THE ARKANSAS BANKER

• 27

INDUSTRY U P DAT E S

RISE IN CHECK SCAMS

Raises Lots of Questions Without Easy Answers

by Johnathan D. Horton

A

rkansas businesses have seen a dramatic rise in check scams. While taking various forms, these

transactions have real consequences for local banks and businesses because someone is ultimately responsible for the funds taken. However, determining who is ultimately responsible for the loss may be a complicated endeavor.

Most scams begin with stolen mail. Thieves have found creative ways to obtain mail, which they search for cash or checks. Thieves then either deposit the checks themselves, cash them, or sell them to other criminals in an illicit marketplace, often by simply uploading a photo of the check. Enabled by technology that lets them either alter a legitimate check to change the amount, payee, and other details, or that lets them create a counterfeit check containing legitimate account information, the various scams employed all work because the check looks real. Technology has made it easier for scammers to generate altered or counterfeit checks that are 28 • WINTER 2022

virtually indistinguishable from legitimate checks. Before a bank determines a check is altered or a fake, the scammer has usually disappeared with the money. Numerous variations on the schemes exist. Which scam is involved, however, may impact the rules that apply and may affect who is ultimately responsible. So, we look at the basic rules of liability.

Generally, the bad actor is liable for his or her acts. The UCC allocates losses among three different parties (1) the customer on whose account the check is drawn (the “drawer”), (2) the bank holding the account from which the funds are drawn (the “drawee bank”), and (3) the depository bank, i.e., the bank that accepts the check for payment. The UCC rules place responsibility on a party with the idea that they can then pursue remedies against the bad actor. Unfortunately, the reality is that the bad actors may be difficult to find, and may not have any assets that can be applied to satisfy a judgment, so recovery from a bad actor is far from ideal.

“Before a bank determines a check is altered or a fake, the scammer has usually disappeared with the money.

Numerous variations on the schemes exist. Which scam is involved, however, may impact the rules that apply and may affect who is ultimately responsible.”

Consider the issue of altered items. A common example is a “washed check,” where a bad actor uses a solvent to remove the ink from the check and rewrites it. An “alteration” is a change made to the check without the drawer’s authority that changes the obligations. So, if a scammer “washes” a check, writes in a new payee, and increases what was a $40.00 check to $400.00, each change is an alteration. Generally, a customer has one year from when their bank makes the account statement available to them to discover and report alterations.

For purposes of the UCC, a statement is “available” when the statement is sent to the customer. The one-year time limit, however, may be reduced by the agreement between the customer and his or her financial institution. Similarly, repeated wrongdoing by one bad actor may bar recovery. The UCC provides that if the customer receives a bank statement and should have identified an unauthorized signature or altered item, then the customer may be precluded from making a claim, if the drawee bank can show it suffered a loss and if it paid the item before it received notice from the customer, but after the customer had a reasonable opportunity-not more than 30-days- to review the statement and notify the bank.

Similarly, a customer’s negligence may preclude claims for an alteration. The UCC provides preclusion may not apply where a customer can show the bank paid an item without using ordinary care.

If none of the various defenses apply and the drawee bank is liable to its customer, the drawee bank may pursue a depository bank who accepted the proceeds of the check for deposit into the account of its customer—the bad actor--on a breach of warranty claim. Notice of such claims must be given within 30-days after the claimant has reason to know of the breach and the identity of the party making the warrantor. When an item is transferred the depository bank who

receives settlement makes warranties to the transferee including that all signatures are authentic and authorized, and the item was not altered. The theory is the depository bank is in the best position to uncover the alteration, so it should bear the loss.

For forged checks, the same analysis as for alterations applies to claims between the depository bank and its customer. This rule comes from past practice when a bank compared signatures to a signature card on file to identify forgeries. Today, electronic processing makes that logic inapplicable, but the rule has endured. This rule, however, has exceptions. Examples of exceptions include where the customer benefitted from the proceeds, failed to use ordinary care and that failure contributed to the loss, or where the customer failed to timely identify the loss on their bank statement and allowed it to be replicated. If the check clears through the Federal Reserve Bank, or through an entity that follows the Electronic Check Clearing House Organization (“ECCHO”) Rules, then the Fed’s regulations or the clearinghouse rules may grant additional warranties. These additional warranties may shift the liability that would otherwise apply under state law. Similarly, the UCC provides different rules of loss for a “remotely created item,” i.e. “an item drawn on an account which is not created by the payor bank and does not bear a handwritten or facsimile signature purporting to be the signature of the drawer,” but most forged checks are not remotely created items.

If a check is stolen and the bad actor forges the name of the payee and endorses the check, then a different set of rules applies. Where the endorsement is forged, the customer must make a timely claim after the bank statement is made available to it, or risk bearing the loss. A customer’s negligence may also preclude his or her recovery.

This preclusion, however will not apply if the customer can show the depository bank

failed to pay the item in good faith. If the customer was negligent in not reviewing statements and reporting, but the bank was also negligent in paying the item and its negligence substantially contributed to the loss, then the UCC says fault may be allocated between the parties. The drawee bank may recover any loss from the depository bank, provided it makes a timely claim, based on a claim under the transfer warranty that the signatures are authentic and authorized. The theory is again that the depository bank is in the best position to uncover a forged endorsement.

That brings us to counterfeit checks.

Counterfeit checks are a fairly new vintage of this fraud because technology has only recently permitted widespread creation of passable forgeries. Some jurisdictions treat counterfeit checks under the rules for forged drawee’s signatures. Those states make the drawee bank responsible. At least one state court has declined to apply the rules of altered items to counterfeit checks.

That court held that such instruments are not altered instruments because there is no original instrument, but rather the check is entirely a fake. Now pause for a moment and ask yourself: what criminal would put his or her own name in the blank, knowing the check is likely to be discovered as a counterfeit eventually? Similarly, what criminal will stick around to provide critical testimony over which signatures were forged? A counterfeit check likely involves both a forged endorsement by the purported payee, and a forged signature by the drawer.

As a result, one commentator suggested Arkansas ought to reconsider this rule because generally depository banks occupy a better position to avoid the fraud, and if both signatures are forged on a counterfeit, then the transfer warranties related to being a person entitled to enforce should also apply. No reported Arkansas cases appear to have addressed her argument at this time.

As the frequency of these crimes increase, they create complicated facts. Usually, they involve multiple parties and bad actors who are likely to be unavailable. The facts mean cases at are not easily reduced to a single reliable rule. Instead, each case is more likely to be resolved on a case by case inquiry based on how the fraud occurred in each specific instance and the specific conduct involved. As a result, some transactions may be large enough that lenders may find litigation of responsibility for the loss in their best interests.

THE ARKANSAS BANKER

• 29

MEGA CONFERENCE SE P T E M BE R 2 7 - 2 8 , 2 02 2 • LITTLE RO C K M ARRIOTT

PHOTOS: (From left to right) Randy Scott, chairman of the Arkansas Bankers Association; Tonya Gossage (right) plays the Cash Grab game put on by vendor (left) PCA Technology Solutions; Chad Russell, Brett Ausley, and Scott DeBoer; Dave Dickson, Brad Chambless, Kami Coleman, Lorrie Trogden, and Scott Saffold; Delvan Irwin, Alex Batres, and Jay Wisener; Rob Robinson, Yessica Marquez, Kirby Miragila, and Ali Williamson; Courtney Calderwood, Nick Roach, Steve Ragland, and Lorrie Trogden.

30 • WINTER 2022

photography by Michael Pirnique

EMERGING LEADERS CONFERENCE O CTO B ER 25 , 2022 • E M B AS SY S U I T E S , R O G E R S , A R

PHOTOS: (Clockwise from top left) 2021-2022 ELS president Derek Eckelhoff of First Security Bank, Springdale; Bill Oliva is joined by fellow coworkers for the award presentation and lunch. (L-R) Bill Oliva, Robb Roberts, Brenda Rivera, Bernie Barajas and Austin Simpson; A conversation with state legislators took place during the Leadership Conference. Legislative participants included (L-R) Representative Delia Haak, Centerton; Senator Scott Flippo, Bull Shoals, and Senator Bart Hester, Cave Springs; Dozens of state bankers attended the annual Leadership Conference in Rogers, AR; Bill Oliva (left) is presented with the fourth annual Bill Holmes Leadership Award by Derek Eckelhoff. Bill is VP of Commercial Lending and Diversity Outreach Officer with First Community Bank in Batesville.

photography by Kami Coleman

THE ARKANSAS BANKER

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32 • WINTER 2022

INDUSTRY U P DAT E S

Larry Wilson Awarded

P R E S T I G I O U S TA M PA B AY T R O P H Y

for Military Dedication

by Tech. Sgt. Dana Cable 19th Airlift Wing Public Affairs

L

arry Wilson, the Chairman, President & CEO of First Arkansas Bank & Trust in Jacksonville was recently awarded the prestigious Tampa Bay Trophy for his civic involvement with Air Mobility Command’s Little Rock Air Force Base.

The Tampa Bay Trophy recognizes a civic leader whose lifetime achievement and distinguished service to the United States Air Force Air Mobility Command epitomizes the cooperation between civilian and military communities.

“Larry Wilson has dedicated countless years to helping Little Rock Air Force Base,” said Col. Angela Ochoa, 19th Airlift Wing and installation commander. “I cannot think of a more deserving individual who exemplifies the partnership between our local community and base. His work has been vital to accomplishing our mission and cultivating resilient Airmen and families. We are extremely thankful and blessed to have Larry as part of our family.”

An acclaimed advocate for Jacksonville for over 40 years, Wilson’s leadership has strengthened the relationship between the base and the local community. He was appointed by Gov. Asa Hutchinson to the state’s Military Affairs Council where he assisted in the effort to

PHOTO: Larry Wilson (third from left) holds his honorary certificate while celebrating with family and friends.

Photo courtesy of Little Rock Air Force Base.

pass legislation that provides Active Duty and retired pay income tax exemptions for military personnel in Arkansas.

Wilson’s leadership helped the city of Jacksonville earn the 2009, 2011 and 2019 Abilene Trophies for Air Mobility Command’s best community support, Air Education and Training Command’s 2019 Altus Trophy, and the 2020 Great American Defense Community Award.

The Tampa Bay Trophy was created in 2016 by the Tampa Bay Defense Alliance and honors a civilian each year for their distinguished service and contributions to our nation’s Air Force servicemen and women.

THE ARKANSAS BANKER

• 33

Veteran + Banker

Duty.

SERVICE.

HONOR. Bankers in Arkansas know and appreciate the sacrifices made to provide for the freedoms we have in the United States. Our mothers and fathers, grandmothers and grandfathers, aunts, uncles, cousins and children have all offered their lives to protect America and the free world.

34 • WINTER 2022

Carl Barnett

Helen Shaw

ukheir

Rabih Abo

With this respect and admiration in mind, we especially salute Arkansas veterans this time of year. In this magazine, we introduce you to three veterans who dedicated a portion of their careers to military service before finding new careers in the field of banking.

WE THANK THEM FOR THEIR CONTRIBUTIONS TO COUNTRY AND WE’RE PROUD TO HAVE THEM REPRESENTING BANKERS ACROSS ARKANSAS.

by George Jared

THE ARKANSAS BANKER

• 35

Veteran + Banker

Carl

BARNETT U.S. ARMY

RANK: SERGEANT YEARS: 1966-1969 PLACE SERVED: VIETNAM COMMERCIAL BANK AND TRUST COMPANY Head of Maintenance MONTICELLO 36 • WINTER 2022

C

arl Barnett was on the verge of getting into trouble. He didn’t exactly know what he wanted to do with his life, but he knew he wanted to travel. He joined the Army in hopes that

he would get stationed in Germany, Japan or some other exotic place that many people who are born and raised in rural Arkansas never get to see.

He was sent to fight on the frontlines in Vietnam.

The conditions on the ground were brutal when he arrived.

Barnett was assigned to a mobile infantry unit. It constantly rained in the hostile country and everyday was a struggle to determine who was a friend or foe.

Hands on Experience He quickly rose to the rank of sergeant. Fire fights with insurgents were common, but one battle stood out. Once he was manning an ammo dump when Vietcong soldiers began firing mortar shots. Deadly projectiles hailed from the sky.

Barnett took cover, but it didn’t matter if the mortars struck him directly or not. If they hit an ammunition cache, everyone would have been blown to pieces, he said. A lot of prayers were answered that night, he added.

After three years of service Barnett was offered more money and a higher rank if he would agree to re-enlist. He decided he didn’t want to return.

When he got off the plane in Little Rock on his return trip home he patted the ground, he said.

“It was a scary situation. Let me tell you this. It was a turnaround event for me,” he said. “I learned a lot. I learned that life over here is fabulous compared to life in other countries.”

When his service ended, Barnett needed to find a job. He started doing carpentry work with his brother. That went well for a while, but then the economy took a turn for the worse and he had to find a new job.

He worked for a boat company for 18 years, and then worked for 15 years at Burlington Industries.

When that plant closed, he took a job with Commercial Bank and Trust Company in Monticello.

For the last 21 years he’s worked as their head of maintenance. His wife, Kathie, worked for the bank for more than 30 years. She passed away in June of 2021.

Barnett considers himself a “jack of all trades” that works on any maintenance-related issue at the bank. His military experience and training have provided him valuable tools in his civilian jobs.

“Well, I try to perform my job as best as I can.

I attained rank in the Army very quickly. I try to do my job the best that I can. Don’t ever slack. It will never pan out,” he said.

Carl Barnett was sent to the frontlines in Vietnam. He quickly rose to the rank of sergeant.

When he was younger, Barnett enjoyed deer hunting but he rarely does that anymore. He enjoys watching his grandchildren play sports as did his wife before she died.

He has several carpentry and mechanical projects that he works on around his house. He has a 1950 Ford model tractor he likes to “piddle with.”

“I like to use my hands. I like to do all kinds of work. I like carpentry work,” he added.

THE ARKANSAS BANKER

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Veteran + Banker

Helen

SHAW U.S. AIR FORCE

RANK: SENIOR AIRMAN YEARS: 1988-1992 PLACE SERVED: GULF WAR CITIZENS BANK Vice President of Corporate Security and Facilities Manager BATESVILLE 38 • WINTER 2022

H

elen Shaw had a decision to make when it came to her first career path. College was an option, but the free-spirited woman wanted to travel. One person that she greatly admired,

her father Ancel Burns, spent a lifetime in the Army and the Arkansas National Guard.

His dedication to the country inspired Shaw to join the Air Force. She served for four years and even did a combat tour during the first Gulf War. She rose to the rank of a senior airman before she was discharged.

“Basic training was tough,” she said. “But the real challenge began when I started in my career field weeks later. It was not fun.”

Shaw was stationed in Saudi Arabia about 50 miles from the border with Iraq. The culture in the country was very different,

Surviving & Thriving she said. Once, a man tried to kidnap her. She wanted to physically fight back, but if she injured him, she knew the police would arrest her. She managed to escape but the experience still haunts her, she added.

The four years she spent in active service, and the two years in the reserves provided her with a multitude of lessons that have served her throughout her different career paths. One obstacle that she had to conquer was the limited number of females who served in the Air Force at that time.

“I was working in a man’s world and it was an adjustment,” she said. “One thing I learned was to treat everyone as an equal and give everyone the chance to prove themselves.”

Shaw currently serves as the vice president of corporate security and facilities manager at Citizens Bank based in Batesville. She’s been in the banking industry for more than nine years. After her service and prior to her bank career, she spent nearly 21 years in manufacturing management.

She is responsible for implementing and administering all aspects of the bank’s security program, in addition to overseeing the general maintenance function for all bank properties and managing construction projects of the bank’s new branches.

Shaw said she is methodical in her approach to her job. She likes to develop policies and procedures to ensure that the banks are safe for employees and customers. One of her prouder moments was when she was able to start an active shooter training program for employees, she said.

Supreme organization and setting standards are among the other lessons she learned from her military service. Those lessons have come in handy during her tenure with the bank, she said.

In her spare time Shaw likes to kayak and take action sports photographs, Her son Logan is a student at the Cedar Ridge School District, where she was recently voted to serve on the school board.

She takes a lot of action pictures and she gives copies of the pictures to the student athletes and

Helen Shaw was stationed in Saudi Arabia about 50 miles from the border with Iraq.

their families. Several people have told her she needs to charge for the pictures, but for now she’s content to give them away for free, she said. After her son leaves high school, she might consider charging a small fee.

“I do it for fun – I really enjoy it,” she said. “I like photographing the emotion that comes with sports.”

THE ARKANSAS BANKER

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Veteran + Banker

Rabih

ABOUKHEIR U.S. ARMY

RANK: SERGEANT YEARS: 2009-2015 PLACE SERVED: MIDDLE EAST DEPLOYMENT EAGLE BANK Loan Officer LITTLE ROCK 40 • WINTER 2022

W

hen Rabih Aboukheir was at American University of Beirut he studied business management and dreamed of running his own companies. An internship led him

into the restaurant and bar business. He left Beirut and moved to Hilton Head, South Carolina.

He liked the U.S. so he decided to stay.

One of his regular bar patrons was a U.S. Army recruiter.

The two began a dialogue, and Aboukheir decided to take the plunge. He joined the Army as a gunman in a combat unit. He rose to the rank of sergeant.

“It seemed really interesting. I didn’t really think about it. It was the best experience of my life,” he said.

Deep Bonds & Brotherhood Aboukheir joined the Army in 2009 and served until 2015. The rigors of the Army didn’t surprise him, he said. In 2011 and 2012 he was deployed to multiple countries including Kuwait, Iraq, and Jordan. He often had to jump from airplanes and his job as a gunman required him to “blow a lot of things up,” he said.

One thing he learned earlier on was that soldiers form deep bonds. Those experiences and relationships are among the best he’s had during his life, he added.

When he left the Army, he did some real estate investing and he got back into restaurant and bar management. He worked at airports in a couple of large cities, such as Atlanta. He typically managed companies that took in $14 to $15 million per year and managed more than 200 employees.

His wife, Katy, is from Arkansas and several years ago they decided to return to the Natural State. There was only one problem. The large restaurants that he was used to running don’t exist on that scale in Arkansas, so he had to transition into another type of business – mortgage loan originator.

He currently works as a loan officer at Eagle Bank in Little Rock. The bank was started in 1919, and is one of the oldest banks in operation in the state.

There are many lessons he learned in the Army that apply in the banking industry, he said.

Hard work, honesty, and integrity are required to succeed in the Army and in the world of banking, he added.

Even as he dove into his newest business career, there was another problem that Aboukheir decided he needed to tackle. He loves lamb chops, and he couldn’t find any good ones at the local grocery stores.

His solution?

“I started a lamb farm,” he said with a laugh.

The challenges on the farm are very different from those in the Army or banking, he said.

Rabih Aboukheir was deployed in Kuwait, Iraq, and Jordan as a gunman.

“Oh man, it’s something new every day,” he said.

“You are dealing with nature. You are dealing with animals. There are things that you cannot control.

It’s an interesting challenge for sure,” he said.

What do you miss from your time in the Army?

“The brotherhood, no question about it. I'd do it all over again. It was the best experience of my life,” he said.

THE ARKANSAS BANKER

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42 • WINTER 2022

NEWS & MOVES AMERICAN BANKERS ASSOCIATION HONORS SANDY STARNES WITH INAUGURAL EMERGING LEADER AWARD

S

Sandy Starnes

Senior Vice President and Director of Marketing

andy Starnes, senior vice president and director of marketing at Citizens Bank in Batesville was honored by the American Bankers Association as a recipient of its inaugural ABA Emerging Leader Award. This new award recognizes the next generation of bank leaders who are committed to the highest standards of achievement and service to both their industry and their local communities. Starnes is one of 10 winners of the award.

“On behalf of Citizens Bank, we want to congratulate Sandy for this exceptional achievement on the national level,” said Adam Mitchell, president and CEO

of Citizens Bank. “Sandy is a dedicated and passionate leader who will continue to do great things for Citizens Bank, the banking industry and our community.”

The winners were selected by a diverse steering committee of industry professionals. The qualities and characteristics the committee evaluated as judging criteria included dedication to the profession, inventiveness, leadership skills, mentoring ability, personal integrity, tenure at the bank and broader commitment to a career in banking, sustained career progress, and academic training including advanced degrees and certificates/certifications.

ARVEST BANK HIRES CINTHYA ALLEN AS NEW DEI OFFICER

A

Cinthya Allen

Diversity, Equity and Inclusion (DE&I) Officer

rvest Bank has hired Cinthya Allen as its Diversity, Equity and Inclusion (DE&I) Officer, effective Nov. 1.

Allen has 20 years of relevant experience and most recently served as the Diversity, Equity and Inclusion Officer and Americans with Disabilities Act (ADA) coordinator for the City of Norman, Okla. She also serves an adjunct professor at the University of Oklahoma.

In her role at Arvest, Allen will lead the bank’s diversity, equity and inclusion efforts, building on its existing program. The bank earned a spot on Forbes magazine’s list of “Best Employers for Diversity 2022” earlier this year.

“I am thrilled that Cinthya is joining the Arvest family,” Arvest Chief People Officer Laura Andress said. “Her passion, drive and dedication to DE&I – both within the bank as well as in our communities

– makes her a perfect person to lead these efforts. The result will be a more respectful and inclusive workforce, workplaces and communities for us all to grow and celebrate for decades to come.”

Allen earned a bachelor’s degree in sociology from the University of Oklahoma and a graduate certificate in diversity and inclusion human resources policy from Cornell University. She also holds an ADA coordinator certificate from Great Plains ADA and the University of Missouri. She worked for years at AT&T where she led HACEMOS, AT&T’s Latinofocused employer resource group.

“I am excited to join the Arvest family,” Allen said.

“The people-centric commitment that runs throughout the organization is the lifeblood of our Diversity, Equity, and Inclusion principles. I look forward to partnering with our teams to learn, lead and build our workforce and communities in transformative ways.”

“HER PASSION, DRIVE AND DEDICATION TO DE&I – BOTH WITHIN THE BANK AS WELL AS IN OUR COMMUNITIES – MAKES HER A PERFECT PERSON TO LEAD THESE EFFORTS. THE RESULT WILL BE A MORE RESPECTFUL AND INCLUSIVE WORKFORCE, WORKPLACES AND COMMUNITIES FOR US ALL TO GROW AND CELEBRATE FOR DECADES TO COME.” THE ARKANSAS BANKER

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NEWS & MOVES FIRST COMMUNITY BANK’S BILL OLIVA WINS ABA BILL HOLMES LEADERSHIP AWARD

F

Bill Oliva

Vice President, Commercial Lending & Diversity Outreach

irst Community Bank’s Bill Oliva has been honored by the Arkansas Bankers Association with the Bill Holmes Leadership Award. This prestigious distinction recognizes outstanding leadership among the emerging leaders in Arkansas banking.

The award is in honor of former ABA President Bill Holmes (1949-2018) to recognize rising stars who contribute to team success, industry success, and to making an impact on their communities.

“Bill’s career is a reflection of his values that civic and community engagement go hand-in-hand with what he does every day as a commercial lender and as an integral part of our bank’s efforts in diversity outreach,” said Boris Dover, president and chief operating officer for First Community Bank. “Bill exemplifies the spirit of the Bill Holmes Leadership Award. Having personally known Mr. Bill Holmes and the tremendous legacy that he left behind, I think this particular award recipient would make him proud. We congratulate Bill and thank him for his continued service.”

“This is a huge award, and I’m flattered to receive such an accolade,” said Bill Oliva, vice president, commercial lending & diversity outreach. “For me, banking has been not only rewarding but also a challenging career path. To know that we can help serve the

communities that we’re in by helping underserved families buy their first homes, start successful businesses, or further their children’s education is a unique and powerful opportunity that we get to be a part of everyday.

I’m grateful to First Community Bank for taking an interest in me at a young age, and helping me to reach the milestones that I have achieved to date. Finally, I want to thank the Arkansas Bankers Association for presenting me with this tremendous honor.”

Oliva has served the bank in various roles including marketing, insurance, Hispanic outreach and lending. In his current role as vice president, commercial lender and diversity outreach officer, he focuses on commercial lending within Independence County and the surrounding areas, as well as works diligently to provide quality-banking services to the underbanked communities in the area.

Oliva is a graduate of Leadership Batesville and was named Ambassador of the Year in 2016 by the Batesville Area Chamber of Commerce. He serves on the North East Arkansas Hispanic Professionals Network (NEAHPN) and the adult education board of the NEAHPN which caters to non-traditional students. He is an emeritus ambassador with the Batesville Area Chamber of Commerce.

ARMOR BANK NAMES GREG GIBSON PRESIDENT OF FORREST CITY MARKET

A

Greg Gibson

Forrest City Market President

44 • WINTER 2022

rmor Bank has announced the hiring of Greg Gibson as the Forrest City Market President. Gibson will lead the bank’s Forrest City team in serving the consumer, commercial and agricultural needs of the market.

“We are very excited to add the lending, leadership, and agriculture experience that Greg will bring to the table,” said Chad May, Armor Bank CEO. “Greg will work closely with our Forrest City team members to enhance Armor Bank's presence in Forrest City and the East Arkansas agriculture community.”

Gibson joins Armor Bank with nine years of experience as an agricultural lender in Eastern Arkansas.

“GREG WILL WORK CLOSELY WITH OUR FORREST CITY TEAM MEMBERS TO ENHANCE ARMOR BANK'S PRESENCE IN FORREST CITY AND THE EAST ARKANSAS AGRICULTURE COMMUNITY.”

FIRST SECURITY ACQUIRES

PROPERTY NEAR I-430 FOR NEW LITTLE ROCK HQ

S

earcy-based First Security Bancorp has purchased property from Fidelity National Information Services Inc. (FIS) on Rodney Parham Road near I-430 in Little Rock, where it will establish its Little Rock headquarters.

The campus at 4001 Rodney Parham Road will include 275,000 square feet of office space on 31 acres of land in a prime Little Rock location. First Security is acquiring 31 acres and three of the four office buildings in the deal. FIS maintains the large seven-story building and approximately 15 acres of the property.

The new location for First Security will house administrative and sales offices for First Security Bank Little Rock and Crews & Associates, First Security Bancorp’s investment banking firm. Those offices are currently in downtown Little

Rock at First Security Center on President Clinton Avenue and in west Little Rock at The Ranch on Arkansas Highway 10.

“First Security Bancorp continues to invest in central Arkansas, and we are glad to find an existing building that meets our holding company’s needs,” First Security Bancorp chairman Reynie Rutledge said. “This new Little Rock home offers an opportunity for us to secure space for future growth, and we are very excited about the potential.”

TREASURER-ELECT MARK LOWERY

MAKES KEY STAFF POSITIONS

S

Mark Lowery

State Treasurer-elect

tate Treasurer-elect Mark Lowery announced several key positions for his incoming administration. He will be sworn into office on Jan. 10, 2023.

“I am extremely proud of the quality people we will be bringing into the Treasury but ecstatic at the great team that is being retained from the current administration,” Lowery said. “Treasurer Milligan has assembled an outstanding team of professionals who have expressed their desire to be retained and I am happy to report we have offered and received acceptance from over 20 of the 35 positions in the Treasurer’s office.”

Heading Lowery’s executive team will be: • Eric Munson, Deputy Treasurer. Munson is the former Commissioner of the Arkansas Securities Department as well a former Director of the Arkansas Governor’s Council on Developmental Disabilities and has previous service as a Senior Vice President of the Arkansas Bankers Association.

• William Cheatham, Chief of Staff and Legal Counsel. Cheatham is a graduate of the University of Arkansas Bowen School of Law and a former Staff Operations Specialist with the Federal Bureau of Investigation in Washington D.C. • Stephen Bright, Director of Governmental Affairs and Special Projects. Bright is a former

State Representative and currently Director of Marketing and Communications with the State of Arkansas’ Marketing and Redistribution (M&R). Bright is also a former Mayor and city director of Maumelle.

Key personnel being retained are: • Robert Romanik and Stephen Pulley, who will continue to serve as Senior Investment Managers.

• Autumn Sanson, who will continue as Chief Compliance Officer for the Treasury and the State Board of Finance.

• Steven Kilgore, who will remain as Director of Investment Accounting and work with Holly Beaver in a newly created internal investment audit function.

• Kathie Insalaco, who is being retained as Receiving Manager of the Receiving and Warrant Department.

• Rachel Garrett, who will continue as Manager of Local Government Services.

• Craig Johnson, who is continuing as Chief Technology Officer and Stephanie Clark, who is remaining as Division Director of IT. • Fran Jansen Webb, who will continue to serve along with Christopher Scott in the Educational 529 and Financial Education Division.

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NEWS & MOVES UNION BANK OF MENA ADDS

ALYVIA SELF AS LOAN OFFICER

U Alyvia Self Loan Officer

nion Bank of Mena has hired Alyvia Self as a loan officer. Self, who previously worked as a mortgage lender, holds a bachelor's degree in Business Administration from the University of Arkansas.

“We couldn't be more pleased that Alyvia has joined the Union Bank team.

We know she will be a great addition for our customers because of her knowledge and lending experience, especially mortgage lending. Taking care of the banking needs of our hometown customers is what we do, and Alyvia is on board to help us continue that tradition,” said Union Bank of Mena President Kevin Williams.

Union Bank of Mena was established in 1934 and has branches in Mena, Hatfield and Wickes.

“WE KNOW SHE WILL BE A GREAT ADDITION FOR OUR CUSTOMERS BECAUSE OF HER KNOWLEDGE AND LENDING EXPERIENCE, ESPECIALLY MORTGAGE LENDING. ”

STATE BANK DEPARTMENT

ANNOUNCES PROMOTIONS

T

he Arkansas State Bank Department has promoted Dustin Hill to Bank Junior Examiner effective October 30, 2022. The department has also promoted Peyton Tillman to Bank Senior Examiner, Adam Chase to Certified Bank Senior Examiner, and Wesley Mathis to Certified Bank Senior Examiner effective November 13, 2022.

Hill earned a Bachelor of Science in Finance from Walton College of Business at the University of Arkansas in Fayetteville and serves as a Bank Junior Examiner in the Little Rock office.

Tillman earned a Bachelor of Finance at the Arkansas State University in Jonesboro and serves as a Bank Senior Examiner in the Jonesboro office.

Chase earned a Bachelor of Science in Emergency Administration and Management and a Master of Business Administration from Arkansas Tech University in Russellville. He serves as a Certified Bank Senior Examiner in the department’s Springdale office.

Mathis earned a Bachelor of Business Administration in Finance from the University of Central Arkansas in Conway and serves as a Certified Bank Senior Examiner in the Little Rock office.

CITIZENS BANK RECOGNIZED

BY AMERICAN BANKER

B

atesville-based Citizens Bank was named one of the 2022 Best Banks to Work For. American Banker has partnered with Best Companies Group to identify banks that excel at creating positive and supportive workplaces for employees. Citizens Bank is the only Arkansas bank to be named on the list.

Citizens Bank earned the spot in the ranking of Best Banks to Work For based on an anonymous employee survey and a thorough review of the benefits and perks offered.

“We are honored to be recognized nationally for our ‘People First’ mission and culture,” said Adam Mitchell, President and CEO of Citizens Bank.

46 • WINTER 2022

“This year marks the first time Citizens has been recognized as one of the Best Banks to Work for

by American Banker. We are the only bank in Arkansas to make the list. We are proud of this accomplishment but even more proud that we continue to foster a culture that supports and advances our employees.”

The full 2022 Best Banks to Work For list is featured at www.americanbanker.com.

GREG ROTTER NAMED

CORPORATE CHIEF LENDING OFFICER FOR CHAMBERS BANK

C Greg Rotter

Corporate Chief Lending Officer

hambers Bank has announced the promotion of Greg Rotter as its Corporate Chief Lending Officer, a newly-created position that will oversee the lending operations of the bank’s 24 branches.

Rotter has been an executive officer at Chambers Bank since August 2017, serving as regional president for the western region, which includes branches in Fort Smith, Van Buren, Mansfield, Waldron and Mena. He has more than 25 years’ experience in banking, having served as a market president and commercial loan officer at two other Arkansas banks prior to joining the Chambers team.

“We are excited to have Greg in this position,” Chambers Bank President Mike Donnell said.

“Throughout his time at Chambers, he has continually demonstrated exemplary leadership and the ability

to work with multiple departments to achieve our strategic goals. His significant experience in lending and bank management will serve our lenders and our customers well.”

Rotter holds a BBA in management from Henderson State University and is a graduate of the LSU Graduate School of Banking in Baton Rouge, Louisiana.

“I am honored to take on the role of Corporate Chief Lending Officer for Chambers Bank,” Rotter said. “It is because of the hard work, dedication and success of the team around me that I have been afforded this opportunity. I am beyond grateful to work with such an outstanding group of people and I look forward to playing a small part in the continued success and growth of Chambers Bank.”

CROSS COUNTY BANK HIRES

WHITNEY ELDRIDGE AS MARKETING DIRECTOR

C

Whitney Eldridge Marketing Director

ross Bank has hired Whitney Eldridge as Marketing Director to ensure brand consistency and effectiveness through all advertising, internal and external communications, and marketing programs.

“Whitney joins us at an exciting time in our history, as we unite our two brands, Cross County Bank and First Commercial Bank, as Cross Bank. She will help us share our legacy in Eastern Arkansas and position the bank for the future as Eastern Arkansas’ premier community bank,” David Dowd, President and CEO of Cross Bank, said.

The bank adopted the name Cross Bank in all 10 offices beginning November 21, 2022. Cross Bank

operates four offices in Cross County six offices in Craighead, Monroe, and Mississippi counties.

Eldridge is a native and resident of Jonesboro. She holds a Bachelor of Arts in Mass Communications and double minors in Visual Arts and Christian Studies from Ouachita Baptist University. Previously, Eldridge served as Communications Director and Administrator at Christ Redeemer PCA in Jonesboro, and as Marketing Director for Gearhead Outfitters in Jonesboro.

Eldridge brings more than a decade of experience in marketing, PR, branding, advertising, communications, and marketing strategy to Cross Bank.

“WHITNEY JOINS US AT AN EXCITING TIME IN OUR HISTORY, AS WE UNITE OUR TWO BRANDS, CROSS COUNTY BANK AND FIRST COMMERCIAL BANK, AS CROSS BANK. SHE WILL HELP US SHARE OUR LEGACY IN EASTERN ARKANSAS AND POSITION THE BANK FOR THE FUTURE AS EASTERN ARKANSAS’ PREMIER COMMUNITY BANK.”

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NEWS & MOVES KRISTEN REEVES PROMOTED

TO CHIEF LENDING OFFICER AT PEOPLES BANK

K

Kristen Reeves

Chief Lending Officer

risten Reeves was recently promoted to Chief Lending Officer at Peoples Bank.

Reeves is a veteran banker with 18 years of service. She most recently served as Vice President Lending and Lakewood Branch Manager. Her office is now located at the Main branch on North Jackson Street. She has a wide range of banking experience including serving as teller, new accounts representative, loan assistant, loan officer and assistant branch manager.

“Kristen has been a valuable member of the Peoples Bank family for almost two decades. She has distinguished herself as one of those leaders who sets the example and goes above and beyond for the customer and her team members.

Her judgment, expertise and experience have proven that she is very deserving of this recognition and promotion. We look forward to her guiding our loan department through the coming years,” said Mary Fowler, Peoples Bank CEO. Reeves is a native of Magnolia and a graduate of Magnolia High School. She earned her Bachelor of Business Administration degree in finance from Southern Arkansas University.

Peoples Bank is a locally owned community bank established in 1910.

Headquartered in Magnolia, Arkansas, Peoples Bank operates three banking offices in Magnolia and one in Waldo.

“KRISTEN HAS BEEN A VALUABLE MEMBER OF THE PEOPLES BANK FAMILY FOR ALMOST TWO DECADES. SHE HAS DISTINGUISHED HERSELF AS ONE OF THOSE LEADERS WHO SETS THE EXAMPLE AND GOES ABOVE AND BEYOND FOR THE CUSTOMER AND HER TEAM MEMBERS.”

CRAIG SHY TO LEAD

ARVEST’S FAYETTEVILLE MARKET

A

Craig Shy

Local Bank President

48 • WINTER 2022

rvest Bank named Craig Shy as local bank president in Fayetteville, effective Nov. 1.

Shy has 33 years of industry experience, including the last 18 years at Arvest. He has served in a variety of lending and management roles and has been executive vice president and loan manager for Arvest in Fayetteville since 2013. Shy replaces Donny Story, who will retire at year-end.

“Craig has been an instrumental part of our success in Fayetteville and we are excited for him to step into this new role,” Arvest regional executive Craig Rivaldo said. “His experience working alongside Donny will no doubt serve him well, as will his leadership skills and deep knowledge of Fayetteville and all of Northwest Arkansas.”

Shy earned a bachelor’s degree in business administration from the University of Arkansas, majoring in finance and banking. He also graduated with honors and distinction for leadership from the Southwest Graduate School of Banking at Southern Methodist University.

“I am very excited about the opportunity to continue to work with my teammates in our Fayetteville region, including Elkins and the communities of west Washington County,” Shy said.

“We will continue to work to meet the financial needs of our customers in the communities we serve. Donny Story has done an outstanding job of leading our region for the past 18 years. I have been fortunate to be part of this team and I look forward to building on the great culture that we have created here.”

STONE BANK HIRES

MADISON PAGE, WES LONG

S

Madison Page Loan Assistant

tone Bank in DeWitt and Gillett has added Madison Page to its staff as a loan assistant. She was formerly an office manager with Ag Resource Management in Stuttgart.

She attended Phillips Community College and is pursuing a graduate degree from the University of Arkansas at Monticello.

Wes Long of Tichnor has joined Stone Bank as a loan officer at the bank’s DeWitt and Gillett locations. He most recently owned and operated

Ultimate Ag/SmartCrop Consulting, a private consulting firm. He was also associated with RiceTec, Inc. in Jonesboro.

Long is a graduate of Arkansas State University and received a Bachelor of Science degree in Agriculture Business with major in marketing and management. He currently serves as president of the Arkansas County Farm Bureau Board of Directors.

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

FIRST NATIONAL BANK AT PARIS

ANNOUNCES STAFF ADDITIONS

B Blake Tarpley

Senior Vice President

Garrett Shepherd Vice President

lake Tarpley has been hired as Senior Vice President and will serve as a loan officer. Garrett Shepherd has been hired as Vice President at the bank’s Ozark location, First National Bank at Ozark.

Blake Tarpley will office in the bank’s Clarksville location while cultivating customers in Russellville and Pope County. A graduate of Arkansas Tech University with a degree in Economics and Finance, Tarpley currently serves as Pope County Justice of the Peace, Treasurer of the Kiwanis Club of Russellville and the Arkansas River Valley Boys and Girls Board of Directors, of which he is also past President.

Additionally he is Chairman of the Russellville Board of Adjustments and is active with the Russellville Area Chamber of Commerce. Past community involvement includes Pope County Election Commissioner, member of the Russellville Regional Economic Development Alliance, Board Chairman of the Pope County Community Foundation, Ducks Unlimited State Treasurer and District, Zone and

Area Chairman. Tarpley is also past President and Board Member of the Russellville Country Club.

Garrett Shepherd is a graduate of Ozark High School, he was formerly a Sales Consultant at Greenway Equipment. Shepherd serves as Ozark School Board member and was 2011 Public Servant of the year for the Ozark Chamber of Commerce. Shepherd is also a former Franklin County Justice of the Peace.

According to Yarnell, "We couldn't be more thrilled to add these two outstanding gentlemen to our team. Their ties to the community and unparalleled record of public service are humbling and exciting at the same time. I am delighted that they have joined us, and the outstanding teams we already have in the communities we serve. We take ‘local people, local decisions’ to heart, and Blake and Garrett will only add to that philosophy, and enhance what our current team members are doing on a daily basis.

With their experience and lending expertise they will be tremendous assets to our customers."

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50 • WINTER 2022