Be A Voice

With 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 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.