The Arkansas Banker Winter 2023

WINTER 2023

A SALUTE TO

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Bank Directors

Plus

BANK ON ARKANSAS+ TURNS 5

IN THE DIGITAL AGE pg 18

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GUARDING AGAINST EMPLOYEE DATA THEFT

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Students

OF BANKING

THE ARKANSAS BANKER

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A PUBLICATION OF THE ARKANSAS BANKERS ASSOCIATION

CONTENTS

WINTER 2023 VOLUME CVI, NO. 4

42

ARKANSAS BANKERS ASSOCIATION STAFF

President/CEO Lorrie Trogden VP/Controller Carla Brinkley VP/Professional Development Kami T. Coleman Office Manager Peggy Hooper

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Fundraising and Member Services Associate Whitney Horton Administrative Support Specialist Abi Johnson

EDITORIAL STAFF

Editor Roby Brock Creative Director Ashlee Nobel

Lee Lee Arts + Design

Contributing Writers

Latrecia Carroll, Lizzi Esparza, Trent Fleming, Julia A. Gutierrez, Anton Janik, Casey Kines, Susannah Marshall, Rob Nichols, Jim Taylor, and Lindsay Torrico The Arkansas Banker (ISSN 004-1726) is published quarterly by the Arkansas Bankers Association, 1220 West Third Street, Little Rock, AR 72201. Phone: 501.376.3741.

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

Federal tax law prohibits the deduction of lobbying expenses for federal incomes tax purposes. Organizations like ABA, which assess member dues, are required by law to notify their members of the portion of their dues attributable to lobbing/and therefore non-deductible on your federal tax return. For the year 2022, it is estimated that 9.08% of your dues will be attributable to lobbing as defined by the IRS. Contributions to ABA are not charitable contributions, however, they may be deductible as a legitimate business expense.

02 President’s Message 06 Professional Development

Departments

Columns

12 Faces of Arkansas Banking:

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

Features 18 Directors of a Digital Age

BANKER Q&As

Jules Fletcher

16 Five Minutes With ...

Randy K. Torres

INDUSTRY UPDATES

26 Veteran Benefits

Banking Program

How the VBBP can help.

36 When Employees Take Confidential Data Steps to consider.

How to be a better leader for the bank you guide.

38 Third-Party Risk

22 Banking with Class

40 Win the Talent War

Developing future bankers.

Management

Interagency Guidance What benefits do you offer?

42 Emerging Leaders 28 COVER STORY Veteran + Banker Honoring bankers who served our country.

Conference

In October bankers gathered in Little Rock for this two day event.

43 MEGA Conference

An outstanding event in Little Rock.

44 NEWS & MOVES THE ARKANSAS BANKER

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PRESIDENT’S MESSAGE

Lorrie Trogden | President & CEO | Arkansas Bankers Association

been a fantastic year, and I want to thank you for traveling 2023 has with us on the journey!

Let’s recap at all we have accomplished together.

Government Relations. The ABA lobbying team, our members and the ABA Government Relations Advisory Council have worked tirelessly to support good legislation and defeat bad legislation at both the state and federal level. You have made hundreds of calls and sent hundreds of emails to your local legislators and federal delegation about legislation that matters to us – your voices moved the needle on major policy and you deserve to be proud about that! I have sincerely enjoyed traveling the state this year visiting with your bankers and boards to talk about our efforts in government relations. (and I’ve got the hats to prove it!) I’m ready to hit the road again in 2024!

“By popular demand, I’m thrilled to announce that we are bringing back our compliance conference and bank management seminar in 2024.

There are other big plans in the works for next year that we know you will be excited about!”

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Education. As the premiere provider in the state for banking education, we have offered, and you have joined us in thousands of hours of top-quality education. By popular demand, I’m thrilled to announce that we are bringing back our compliance conference and bank management seminar in 2024. There are other big plans in the works for next year that we know you will be excited about! Your investment in our education helps us to put that money to work for you, for our industry, and for your customers.

ABA

OFFICERS Jim Taylor, Chairman

First Security Bancorp, Rogers

Brad Chambless, Chairman-Elect Farmers and Merchants Bank, Stuttgart

Chris Gosnell, Vice Chairman

Farmers Bank & Trust Company, Magnolia

Scott Saffold, Treasurer

Union Bank & Trust Co., Monticello

Randy Scott, Past Chairman

Farmers Bank and Trust, Blytheville

Lorrie Trogden, President & CEO

Arkansas Bankers Association, Little Rock

BOARD OF DIRECTORS

Latrecia Carroll, Little Rock Recognition. Did you know that YOU won the American Society of Association Executives Summit Award?! Our Operation Vax Speed program received the Summit award, which is the highest award given by ASAE. Only six associations received them this year and all but us were large national associations. Vaccines were not a banking issue, but you knew that your communities needed help, and as always, you heeded the call. Congratulations on this much deserved recognition.

ABA BankPAC. Our PAC had a successful election year with 62 of the 73 candidates we supported winning their races. We raised $67,815 this year in state and federal PAC funds, which was a little shy of our $75,000 goal. Suggested state PAC contributions will be going out in January, and I urge you to help us hit our goal for 2024! We need our friends at the table when big policy decisions are being made…otherwise we are most likely going to be on the menu! Please give a thank you to everyone you see on the PAC contribution list in the magazine.

ABA Team. I want to give a HUGE shout out to our ABA team members! They are the cogs in the machine that make the association the success that it is. They allow me to be at the Capitol, to be in DC, and to travel the state visiting member banks and our bankers. We are here because of you and for you, always!

I leave you with my sincerest wish of happy holidays and a wonderful new year!

Asa Cottrell, Little Rock Joe Dunn, Little Rock Robert Husong, Rogers Heather Jones, Little Rock Katherine Mitchell, White Hall Brandi Ray, Malvern Gabe Roberts, Jonesboro Lori Ross, Arkadelphia Joe Ruddell, Rogers Loren Shackelford, Fayetteville Jason Tennant, Eureka Springs Rob S. Tiffee, Little Rock

Lorrie Trogden, President & CEO

Scott Walker, El Dorado Jay Wisener, Little Rock THE ARKANSAS BANKER

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CHAIRMAN’S C O LU M N

Bank On Arkansas+ A Beacon of Hope

Jim Taylor | Chairman | Arkansas Bankers Association

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n today's fast-paced world, financial inclusion and access to affordable banking services are essential for economic stability and prosperity. Unfortunately, many

individuals and families across our state are still excluded from the traditional banking system. They rely on expensive alternative financial services like payday loans and check-cashing stores, which can trap them in a cycle of debt.

This is where the Bank On Arkansas+ program steps in. This initiative, supported by the Arkansas Bankers Association and the Federal Reserve Bank of St. Louis and many others, aims to provide accessible and affordable banking solutions for the unbanked and underbanked residents of our state with Bank On accounts being offered by 28 banks in Arkansas.

Here are a few key points about the Bank On Arkansas+ program: 1. Access to Banking Services: The program partners with local banks to offer safe, low-cost accounts that are designed to meet the financial needs of people, who might otherwise not have access to traditional banking services.

2. No Minimum Balance Requirements: One of the primary features of these accounts is that they have no or minimal balance requirements. This means that anyone, regardless of their income level, can open and maintain an account without the fear of hefty fees.

3. Direct Deposit and Debit Cards: Account holders can set up direct deposit for their paychecks, providing a safer and more convenient way to access their earnings. They also receive debit cards, which make everyday transactions like shopping and bill payments hassle-free.

4. Financial Education: The program doesn't stop at providing bank accounts. It also offers financial education and resources to help individuals manage their money more effectively, save for the future, and build their credit.

5. Community Partnerships: The success of the program lies in its strong partnerships with local community organizations, churches, and government agencies that work together to reach and educate potential account holders.

As a result of these cumulative efforts the most recent information available indicates the number of unbanked Arkansans fell to 3.4%.

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So, why is the Bank On Arkansas+ program so important?

1. Economic Inclusion: By providing access to affordable banking services, this program helps Arkansans join the financial mainstream. It empowers individuals to save for the future, access credit, and build a stable financial foundation.

2. Reduction of Financial Vulnerability: People without bank accounts are often vulnerable to predatory lending practices.

With these accounts, they can avoid high fees associated with check cashing and payday loans.

3. Strengthening Communities: A financially stable community benefits everyone. When more people have access to banking services, it reduces the reliance on social safety nets, as individuals and families are better equipped to manage their own finances.

An often-missing tool in the financial literacy tool box is Broadband. Access to Broadband networks is critical in fostering digital financial literacy.

The Bank On Arkansas+ program is a beacon of hope for many residents who have struggled with financial exclusion. It is a powerful tool for fostering economic stability and prosperity across our great state. By offering accessible, affordable banking solutions and promoting financial literacy, this initiative contributes to the well-being of our communities and paves the way for a brighter financial future for all Arkansans.

If your bank offers Bank On Arkansas accounts, thank you! If you don’t offer Bank On Arkansas accounts I encourage you to consider it, so that more of our fellow Arkansans can enjoy the benefits of economic inclusion and financial empowerment.

“If you don’t offer Bank On Arkansas accounts I encourage you to consider it, so that more of our fellow Arkansans can enjoy the benefits of economic inclusion and financial empowerment.”

THE ARKANSAS BANKER

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PROFESSIONAL D E V E LO P M E N T

Calendar of Events JA N - M A R 2 0 2 4

January 10

WEDNES DAY 10 A.M.­– 12 P.M.

U N D E R S TA N D I N G B A N K PERFORMANCE

February 22

THU RS DAY 8:30 A.M.­– 4 P.M.

BREAKING INTO BANKING: 101 FUNDAMENTALS OF COMMERCIAL LENDING

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

Commercial banking can be intimidating because of its complexity and the risk-oriented nature of the work. This virtual course is a clear and thorough introduction to the key concepts, terminology, and processes involved in credit and lending.

It doesn’t assume much prior knowledge of the topic, so it’s ideal for those in their first year in the industry. Learners will walk away with a clear understanding of their job and how their specific role fits into the bank’s overall profitability goals.

INSTRUCTOR: Duncan Taylor

INSTRUCTOR: Andy Keusal

LOCATION: Virtual

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T UES DAY 9 A .M. ­– WED NESDAY 4:30 P.M.

BANK SUPERVISOR SCHOOL

This is an opportunity to fine tune and polish your leadership/supervision skills. Get the latest management tools. Learn best practices. Build a productive team through effective planning, coaching, and decision making. Succeed at managing and leading others. You will strengthen your ability to lead others!

This school offers a blend of critical management topics and a path to targeted professional development.

LOCATION: Virtual

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MO N DAY 9 A.M.­– 4 P.M.

FOUNDATIONS FOR COMMERCIAL LENDING 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!

INSTRUCTOR: Karen Butcher

INSTRUCTOR: Ron Rushing

LOCATION: Arkansas Bankers Association, Little Rock

LOCATION: Arkansas Bankers Association, Little Rock

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

BSA/ AML F UN DAM E N TAL S S C H OOL

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!

INSTRUCTOR: Dianne Barton LOCATION: Virtual

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TU E S DAY 9 A.M.­– 4 P.M.

LOAN ASSISTANTS AND PROCESSORS WORKSHOP

This program is designed to provide lending knowledge and administrative effectiveness of one of the most important positions in a community bank’s lending staff – the loan assistant/loan processor. All of the objectives of this program are directed at increasing the performance effectiveness of these individuals.

This session is perfect for loan assistants and loan processors, credit administration supervisors, and other members of the bank’s loan support staff with credit administration responsibilities.

INSTRUCTOR: Ron Rushing LOCATION: Arkansas Bankers Association, Little Rock

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

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T UES DAY 9 A .M. ­– WEDNES DAY 4 P.M.

ADVANCED BSA/ AML COMPLIANCE SCHOOL

In order to meet the ongoing regulatory requirements, we are pleased to offer this Advanced BSA/AML compliance program.

This two-day virtual event focuses on the latest changes in BSA and offers tips and tools to develop and manage an “adequate” and “an effective and reasonably designed” BSA program. Attendees will receive a Training Program Manual, an updated FFIEC BSA/ AML Examination Manual, a Resource Manual (packed with examples, forms, templates, handouts), and opportunities to network with peers on current challenges and trends.

INSTRUCTOR: Duncan Taylor LOCATION: Virtual

Don’t Forget!

Women in Banking Conference March 7th

March 07

THU RS DAY 9 A.M.­– 3:30 P.M.

WOMEN IN BANKING CONFERENCE

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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WEDNESDAY 8:30 A.M.­– 4 P.M.

BREAKING INTO BANKING: 201 ANALYZING REPAYMENT SOURCES

This is a sequel to the Breaking into Banking 101 course.

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

INSTRUCTOR: Andy Keusal LOCATION: Virtual

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THE ARKANSAS BANKER

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WASHINGTON U P DAT E

THE HIGH COST

of Too Much Capital Rob Nichols | President and CEO | American Bankers Association

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n early October, I sat down with Federal Reserve Vice Chairman for Supervision Michael Barr at ABA’s Annual Convention in Nashville. The topic of

our conversation was bank capital.

The failures of Silicon Valley Bank, Signature Bank and First Republic Bank have prompted regulators to begin clamoring for major capital increases at larger banks. My question to Vice Chairman Barr was: why?

Why, when the spring bank failures were attributed to a combination of idiosyncratic liquidity challenges, poor risk management practices, and oversight missteps, did regulators put capital in the crosshairs?

Why, when policymakers—including the vice chairman himself—have stated repeatedly that the banking system is strong, resilient, and well-capitalized, is a major change in capital levels suddenly warranted?

While I appreciated the vice chair’s willingness to engage in the conversation, I found the answers I received unsatisfying, to say the least.

He echoed a common argument among proponents of the so-called “Basel III endgame,” namely that the last set of capital changes—instituted after the 2008 financial crisis—did not lead to dramatic economic declines, and that the banking system continued to grow, even while holding higher amounts of capital in reserve.

While these statements aren’t false, they’re a poor justification for additional capital increases now. The truth is, the post-crisis capital changes did affect economic growth, and they succeeded in driving business outside of the regulated banking sector. Just look at bank mortgage

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“The proposed rules on the table would return our current framework to a one-size-fitsall approach that would put U.S. banks at a competitive disadvantage to their foreign peers.”

originations in the years since 2007. The share of mortgage originations by banks has declined steadily since the post-crisis rule changes, plummeting from around 80% to just under 30% in 2022. That’s just one example—there are others.

Here are the facts: We already have an effective framework in place that requires regulators to sensibly tailor rules based on a bank’s risk profile and business model.

Banks are already holding sufficient capital, as evidenced by the industry’s collective weathering of several significant events in recent years, from a global pandemic to a period of rapidly rising interest rates, to resiliency in the face of the isolated bank failures in the spring.

The proposed rules on the table would return our current framework to a onesize-fits-all approach that would put U.S. banks at a competitive disadvantage to their foreign peers. They have the potential to drive more business away from banks and into the less regulated shadow banking sector. They also fail to appropriately consider the potential economic consequences of forcing banks to hold even more capital in reserve.

Bankers know there is a cost to holding too much capital—and it’s paid by both consumers and businesses who need credit.

To ignore these realities would be a misstep, especially since history tells us that any capital increase for larger banks will eventually affect community banks as well. That’s why ABA has been so vocal in calling on regulators to conduct a thorough quantitative impact study to determine the full extent of potential economic consequences—which they agreed to do in mid-October, alongside an extension of the comment period.

However, simply collecting the data is not enough. Regulators and the public need ample time to review and evaluate the data to understand the full picture—and the current timeline, even with the comment deadline extension, does not allow for that.

Given the wide-ranging effect this rulemaking could have, the only appropriate course of action is for regulators to withdraw and repropose the rule after the data can be fully assessed. Changes to capital rules—even if they are only intended for the largest banks—will inevitably affect all parts of the banking system. This is too important to get wrong.

Email Rob at nichols@aba.com.

THE ARKANSAS BANKER

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COMMISSIONER'S C O LU M N

Director Training –

Knowledge is Power!

Susannah Marshall | Commissioner | Arkansas State Bank Department

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ecently, the federal regulators have issued several proposals aimed at enhancing practices and strengthening oversight of the nation’s largest institutions. Separately, in October of this year, the FDIC issued a notice of proposed rulemaking (FIL55-2023), that would amplify existing standards to promote strong corporate governance and risk management at FDICsupervised institutions with total assets of at least $10 Billion. Arkansas is fortunate to have a diverse banking landscape developed by long-standing, knowledgeable leadership at each institution. Arkansas is not currently home to an institution with total assets greater than $100 Billion, but we have several institutions at or near the $10 Billion mark and as many of us know, when proposals and guidance are issued for larger institutions, often there is a slow, but steady creep to apply those same standards to all institutions. Therefore, I am always attentive to any idea of additional requirements or expectations which would impact our banks and especially the Boards of Directors.

On the outset I want to share that the strength and success of our Arkansas banking industry is the product of the hardwork, focus and commitment by the Boards of Directors of all our Arkansas-based banks and bank holding companies. I have the opportunity to visit with bank Board members both individually and collectively and I am always pleased with the technical knowledge and engagement of our Board members. We are fortunate to have so many individuals who share their time and talents with our Arkansas banks in this capacity.

However, as with anything, we can always work to improve and enhance experience and exposure through training and engagement. Former Governor Frank White, a predecessor of mine, also held a keen interest in all things related to governance of financial institutions. In 2002, through conversations with internal and external bank Board members, he recognized that in some instances a bank director was not well-versed in various industry specifics.

With the desire to increase the strength and depth of practice of our Directorates and to establish minimum expectations, the

“The role of a bank Director is not static and the fiduciary, financial, reputational, and legal requirements that align with this duty are significant. Just as with many other professions, continuing education is key to executing these responsibilities in an effective manner.”

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Arkansas State Bank Department issued Administrative Policy #008 which requires an individual, who is elected to the board of an Arkansas state bank, to attend a training seminar within the first year of service. The training program’s content must receive prior approval by the Bank Commissioner.

To my knowledge, we may be the only state that has established this requirement and I feel that it has continued to pay dividends for the individual Board members, the bank as a whole and our industry.

Although the training must be completed within the first twelve months, I wholly believe this is a practice that Boards should consider employing on an ongoing or more routine basis. We are all aware how much change continually occurs within the industry but also within the larger economic and business communities. The role of a bank Director is not static and the fiduciary, financial, reputational, and legal requirements that align with this duty are significant. Just as with many other professions, continuing education is key to executing these responsibilities in an effective manner.

Many external director training opportunities exist, and the Arkansas Bankers Association is always a wonderful resource for training programs for all bank staff and Board members. As we enter the annual strategic planning and budgeting period, I strongly encourage each institution to evaluate if there are training needs for your Board, or how they might benefit from engaging with an external industry professional for updates and emerging issues related to your institution and the larger banking community.

THE ARKANSAS BANKER

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BANKER Q&A

THE

FACES OF ARKANSAS BANKING with Jules Fletcher

Marketing and Credit Analyst First National Bank of Eastern Arkansas, Collierville, TN

A MEMBER OF YOUR FAMILY HAS WORKED AT THIS BANK FOR FIVE GENERATIONS… WHAT’S IT LIKE CARRYING ON THAT LEGACY?

Whether you are a first or fifth generation employee of First National Bank of Eastern Arkansas, you can feel the bank’s deep-rooted history in St. Francis County and surrounding communities. Not only am I fortunate enough to be the fifth generation of my family to work for First National Bank of Eastern Arkansas, but I also have the rare opportunity of working with and learning from my father, Brice Fletcher! It has been a blessing serving this excellent organization that means so much to my family and me through marketing as well as learning a little bit of everything banking has to offer!

Following my graduation from University of Arkansas’ Walton College of Business in December 2020, I was approached by Denny Jarratt, whose family has been involved with the bank since its early years, to come work for FNBEA in the Memphis office. After further discussion about the career opportunity with FNBEA President Nick Sutton, I was thrilled to join the team! One other element really tugged my heart to the bank though. I knew my late best friend and grandmother, Ada Louise “Sita” Fletcher, who worked for the bank for 30 years, earning our Izard Street branch in Forrest City the temporary nickname “Sita’s Bank” would be so proud! It is honor and privilege to serve with such a talented, well-rounded group of individuals for a short time in First National Bank of Eastern Arkansas’ rich, 137-year-old history. I have the utmost respect, pride, and love for our “trusted hometown bank.”

WHAT ARE YOU MOST PROUD OF REGARDING YOUR LEADERSHIP AT FIRST NATIONAL BANK OF EASTERN ARKANSAS?

Although it doesn’t fall into the traditional “Marketing” category, I am most proud of the Financial Literacy Course Anna Davison, a friend and colleague, and I created for local schools. Over the last two years, we have visited schools throughout Northeast Arkansas to present the basics of bank accounts, budgeting, 12 • WINTER 2023

banking protocol, building and maintaining credit scores, fraud protection and of course, the benefits of choosing a community bank. It has been such a pleasure to get to know the local students and give them an insight into the importance of managing their finances throughout their life.

In addition to Financial Literacy, the internal monthly newsletter I created for our employees holds a special place in my heart. In October of 2021, I brought back The Monthly Statement and turned what was a single page print-out into a seven-page E-Newsletter sent to all employees every month. Each issue highlights advice from a Senior staff member, a seasonal recipe from an employee, an employee and branch of the month, a bank trivia and who’s who contest, an employee’s milestone work-anniversary, birthdays, new hires, retirements, a monthly calendar, and any community events or employee accomplishments that took place the previous month.

The positive feedback from employees and management about being able to put a face with a name of a team member at another branch and learning about each other’s career and lives has meant the world!

WHAT IS THE BEST ADVICE YOU EVER RECEIVED?

Two pieces of advice I have received from each of my parents will always serve as a way of life. First, my mother taught me to “never quit in the middle.” Throughout my childhood, if I ever wanted to quit anything such as piano lessons or cheerleading, my mother would tell me, “You can quit, but not until the end of the year/season.” By the end of recital or competition season, I was always so thankful I didn’t give up and was ready to start the next year! That piece of advice has honed my ability to set a goal for myself and see it through - to not quit when things get hard. With each goal I accomplish, I am so grateful I persevered.

The second piece of advice is from my father who told me, “Always take care of yourself.” By ensuring you are taken care of mentally and physically, you are not only solidifying your confidence to do anything you set your mind to, but you are also portraying your

“Although it doesn’t fall into the traditional “Marketing” category, I am most proud of the Financial Literacy Course Anna Davison, a friend and colleague, and I created for local schools.”

capabilities to those around you. Regardless of your race, gender, religion, etc., how you look and feel is a direct reflection of your work ethic and productivity. When you respect yourself, you respect your work and relationships. Just like the saying “look good, feel good,” when you’ve had a good night’s sleep, are dressed to impress and are mentally prepared for a job interview, loan application meeting, or business dinner, your chances for success are far more likely! *Disclaimer: Dressing for success doesn’t have to break the bank.

There are so many sources to purchase business casual clothing and accessories on a budget!

WHAT SUBJECT COULD YOU GIVE A ONE-HOUR IMPROMPTU LECTURE ON?

The lecture would be called: The Undeniable Genius of Insurance Company Marketing Campaigns. Insurance, like banking, isn’t the most exciting topic for the general public and insurance companies know that! Yet, when you think of television commercials, what are some of the most memorable ads you can recall? One if not all the following campaigns are probably on your list: Jake from State Farm, Flo from Progressive, Allstate’s Mayhem, the Aflac duck, the Geico gecko, Liberty Mutual’s LiMu Emu and Doug, Farmers Insurance’s “we know a thing or two because we’ve seen a thing or two” Unbelievable Claims, and the personal favorite of my fiancé and me, Progressive’s Dr. Rick “protecting young homeowners from becoming their parents.” My fiancé, Maddox, and I genuinely look forward to the next Dr. Rick commercial! Not only is the writing for these campaigns genius, but they flawlessly capture each company’s individual brand and voice all while delivering their intended message humorously to the target audience. This Halloween, I saw a viral video of a group of 11 to 13-year-old friends dressed up as each insurance company campaign’s character. What other industry’s television commercials inspire group Halloween costumes for any age let alone age groups that are not yet concerned with insurance? I could talk about this for an hour or more, but I believe the banking and finance industry could learn something from insurance companies’ marketing strategies.

THE ARKANSAS BANKER

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EMERGING LEADERS

BEING AN

Effective Leader Latrecia Carroll | President | Emerging Leaders Section

W

hat a privilege it is for me to hold the office of Emerging Leaders Council President for 2023–2024. I started working in banking when

I was seventeen years old through the Little Rock Central High School job program. The program prepared students for post-high school opportunities by ensuring students are equipped with a solid foundation of academic skills and the ability to apply those skills in advanced education training and employment. Unlike many others in the banking industry, I knew early on that I wanted to be a banker. After high school, I continued working in Banking and attended the University of Arkansas at Little Rock to receive a BA in Finance.

I have worked behind the scenes my entire career. I've always been proud of the work I do and the leadership abilities I possess. When I started working at Stone Bank in 2018, I attended an Emerging Leaders Conference. I was approached shortly after for the position on the Executive Committee. Despite my hesitation, I enthusiastically took up the challenge. I had to get out of my comfort zone as a leader behind the scenes and into the spotlight to accept this role. Throughout my career, I have been impacted by excellent leadership, which has prepared me for my Emerging Leaders position. I have been eager to collaborate with other exceptional Emerging Leaders to achieve our objectives.

Upon contemplating leadership, numerous attributes spring to mind. Some possess

integrity, influence, and inspiration. Other qualities that appeal to me are humility, empowerment, authenticity, and confidence.

Humility is a quality of effective leaders.

A humble leader is easier to get along with.

Leaders ought to promote cooperation and continuous improvement. Leaders that are humble lead from a place of kindness rather than conceit. Respecting people next to me and keeping an eye out for those under me are essential traits of a modest leader.

Humble leaders are aware that they aren't always the most gifted or knowledgeable person in the room. They give credit when credit is due and recognition to others for a job well done.

Strong leaders are able to empower their groups by giving their staff the tools they need to manage any circumstance.

Teams need to be given the freedom to

act without assigning blame. Empowered leaders understand that success does not happen overnight. Teams must be allowed to use their strengths daily in order to grow.

Authenticity is a prerequisite for effective leadership. You must be able to do your job without compromising your values and personality. People tend to trust leadership when they are true to themselves. Being phony is hard work. Authentic leaders have the integrity and skills necessary to make the right choices when necessary.

Confident leaders know their leadership strengths. They are confident in their knowledge and the fact that there is still a great deal to learn. They have a “can do” attitude that allows them to make progress consistently. Confident leaders also tend to lead by example. Avoid being that leader that breaks rules that have been put in place. Setting a good example for your team will encourage them to work together toward shared goals.

I believe execution counts more in leadership than thoughts or emotions. Show compassion, ask questions, and support new ideas. Be willing to go above and beyond. A great leader will guide you to places you deserve to be, even if they are places you don’t necessarily want to go. This is where great leadership begins.

“I believe execution counts more in leadership than thoughts or emotions. Show compassion, ask questions, and support new ideas. Be willing to go above and beyond.”

14 • WINTER 2023

IAN BRYAN VICE PRESIDENT

STONE BANK Little Rock Group 1

SIMMONS BANK Russellville Group 2

AMBER MURPHY SECRETARY/ TREASURER FIRST FINANCIAL BANK El Dorado Group 3

ELS COUNCIL MEMBERS BRITT BURRIS

CHANCE ROBBINS

CONNECT BANK Star City Group 3

CS BANK Eureka Springs Group 2

JAKE EARNEY

GABE ROBERTS

CHAMBERS BANK Fayetteville Group 2

FIRST COMMUNITY BANK Jonesboro Group 1

BRITTANY HELMS

RHETT SHEPARD

SIMMONS BANK Little Rock Group 1

CENTENNIAL BANK Little Rock Group 1

BRANDON KNOWLTON

LAUREN STATON

SOUTHERN BANCORP Arkadelphia Group 3

SARAH LYNCH GENERATIONS BANK Fayetteville Group 2

RELYANCE BANK White Hall Group 3

S E C T I O N

LATRECIA CARROLL PRESIDENT

EMERGING LEADER

ELS EXECUTIVE COMMITTEE

THE ARKANSAS BANKER

• 15

BANKER Q&A

FIVE VE minutes with...

Randy K. Torres

Market President | Generations Bank, Siloam Springs

Q. HOW DID YOU GET STARTED IN BANKING?

A.

A local bank approached me about transitioning into a banking career. After much thought, I realized that my financial success so early in life was because of my former banker who became my friend and mentor. His willingness to advise me on financial matters relating to my small business was something that, in turn, I now do for others. In 2006, I began that journey and have realized a lot of personal and professional fulfillment.

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

A.

I’ve learned that to have lasting impact, you need to incorporate 4 Cs into your culture: Competency, Care, Connecting, and Consistency. Competency, Care, and Connecting is what customers will value about you as a team member. Consistency is what the community recognizes and values about you and your bank!

Q. WHAT TRAIT DOES THE MODERN BANKER

Q. WHAT ADVICE DO YOU HAVE FOR YOUNG

A.

A.

NEED TO HAVE TO BE SUCCESSFUL?

A trait that hasn’t changed over the years is caring for your customers. Authentic concern for your customer goes a long way, especially in our modern culture where more of our customer experiences have become transactional in nature. Question: Is what you’re doing in the moment making someone’s day better, worse, or just the same?

BANKERS STARTING THEIR CAREERS?

Apply flesh to everything you do because everything you do impacts someone!

Q. WHAT’S YOUR FAVORITE THING ABOUT

WORKING AT A BANK IN A SMALL TOWN?

Q. WHAT ARE YOU MOST PROUD OF

A.

A.

Q. I ALWAYS START MY DAY WITH...

REGARDING YOUR LEADERSHIP AT GENERATIONS BANK?

It’s been gratifying to see how my personal principles of grace, respect and stewardship have brought about growth for our community bank. The unique culture we have at our bank not only impacts our team but also our customers and community at large.

“Authentic concern for your customer goes a long way, especially in our modern culture.”

16 • WINTER 2023

A.

The people behind the numbers!

Coffee, Prayer & Peloton!

Q. WHAT CAN YOU SIMPLY NOT RESIST?

A.

A breakfast burrito.

I’ve learned that to have “lasting impact, you need

to incorporate 4 Cs into your culture: Competency, Care, Connecting, and Consistency.

”

Q. WHO IS THE MOST FAMOUS PERSON

A.

YOU’VE EVER MET?

George H. Bush for lunch.

Q. WHERE WOULD YOU LIKE TO TRAVEL?

A.

Austria.

Q. WHICH DO YOU DO MORE OF ON YOUR

A.

PHONE – TALKING OR TEXTING?

Talking.

Q. WHAT’S THE MOST-USED APP ON

A.

YOUR PHONE?

Texas Instruments- BAII Plus.

Q. WHAT WEIRD FOOD COMBINATIONS DO

A.

YOU REALLY ENJOY?

Blue Bell Old Fashioned Vanilla Ice Cream and Lays Potato Chips- amazing!

Q. WHAT HABIT DO YOU HAVE NOW THAT

A.

YOU WISH YOU STARTED MUCH EARLIER?

Peloton.

THE ARKANSAS BANKER

• 17

Directors in a

W

HEN SPEAKING TO DIRECTORS, I REPEATEDLY USE A PHRASE TO SIMPLIFY HOW THEY CAN BE SUCCESSFUL: “ASK. CHALLENGE. UNDERSTAND.”

Easier said than done, right? But ultimately, these three simple words are the key to an effective director. Think about why you offer someone a directorate. I would submit there are two main reasons (of course I am talking primarily about outside directors here, rather than majority shareholders or bank management.) First, you bring someone on as a director because they have demonstrated business acumen in other areas that you believe will be of value to your institution. Second, you solicit directors based on the belief that as successful business folks, they can serve as a strong source of referrals for new business.

18 • WINTER 2023

Digital Age

by Trent Fleming

YOUR EXPECTATIONS OF YOUR DIRECTORS SHOULD BE HIGH, BUT THIS ALSO MEANS THAT YOU MUST WORK TO PROVIDE THEM WITH EDUCATION AND INFORMATION TO HELP THEM DO THEIR WORK AT THE HIGHEST POSSIBLE LEVEL. Like many industries, banking has seen an explosion of technology, permeating all areas of the bank. This introduces convenience, efficiency, and complexity into banks of all sizes. The complexity translates not only to more technical skill sets on the part of employees, but also to a better understanding of effective management of technology at both a management and a board level.

THE ARKANSAS BANKER

• 19

For a board of directors to provide adequate oversight to all areas of their financial institution, their knowledge and skills must keep up. This includes knowledge of technology and operations.

Following are five ways to support your board well as they strive to better understand and provide oversight to this important area.

OPERATIONAL STATISTICS Understanding the nature of the bank’s business is critical.

This includes the overall volume of activity (total loan and deposit accounts, new account activity by week or by month, and related information) and the type of transactions (paper transactions, in person transactions, online transactions, and third-party transactions) the bank is experiencing. Such information is key for directors to understand the actual usage of bank systems by customers and employees. I recommend you start small, and at a high level.

Present charts or graphs of key statistics, including both the current month and an historical component (last 6 months, year over year, or last 5 years, for example).

EXPOSURE TO OPERATIONAL MATTERS In the spring of 2023, the industry was given new guidance by the FFIEC for activities related to technology planning. Under the category of “Architecture, Infrastructure, and Operations” (AIO) the regulators are strongly suggesting that executive management be involved in all aspects of technology management and strategy development. Ideally, your IT steering committee is meeting monthly.

This committee should already include C level participation, including your COO and perhaps CFO. Develop an annual calendar of key areas of focus, by month, for this committee. Perhaps you will choose to visit most areas twice a year, including core system, networking, EFT, and digital banking. That being the case, you can rotate outside directors through 6 months of meetings and help them gain a much better understanding of your overall operations and technology area. This will not only build their knowledge, but it will improve the quality of discussion at the board level about such matters, since over time your directors will be more knowledgeable about matters brought to the board from operations and technology.

AWARENESS OF CONTRACTUAL OBLIGATIONS AND COMMITMENTS Especially for large technology and operations investments, the board must be made aware of all aspects of such an investment. The exposure and liability involved in a long-term contract for core processing or EFT, for example, can be significant and as such, should be presented to the board in advance for understanding and approval.

REGULATORS ARE STRONGLY SUGGESTING THAT EXECUTIVE MANAGEMENT BE INVOLVED IN ALL ASPECTS OF TECHNOLOGY MANAGEMENT AND STRATEGY DEVELOPMENT. 20 • WINTER 2023

ALONG WITH STRIVING TO EDUCATE ALL DIRECTORS REGARDING THE USE OF TECHNOLOGY WITHIN THE BANK, IT IS NECESSARY IN THE LONGER TERM TO ADD TECHNOLOGY EXPERTISE TO YOUR BOARD AS YOU NAVIGATE REPLACING RETIRING DIRECTORS OR EXPANDING THE NUMBER OF DIRECTORS ON YOUR BOARD.

Matters involving initial costs, the potential for ongoing cost increases, and costs associated with contract end of life issues (both at the natural end of the contract and in the event of early termination) are all relevant to board oversight.

CYBERSECURITY Cybersecurity is a business issue that will be with us forever.

For proper management and to meet regulatory expectations, Cybersecurity and related technology issues must be in front of the board consistently. Building the right flow of information to your board from the technical areas of the bank is critical. A more informed board makes better decisions, and better decisions result in a safer, more secure banking environment.

SUCCESSION PLANNING AND BOARD COMPOSITION Along with striving to educate all directors regarding the use of technology within the bank, it is necessary in the longer term to add technology expertise to your board as you navigate replacing retiring directors or expanding the number of directors on your board.

Banking technology is of course specialized to a certain extent, but directors and director candidates who understand the basics of managing technology will greatly improve your overall governance of operations and technology. In my experience it is helpful to begin now to establish criteria for your “next” director, including areas of expertise that would be a part of the ideal candidate’s resume.

ABOUT THE AUTHOR Trent Fleming, a native of Marked Tree, provides strategic planning and board education services to community banks around the country. He can be reached via trent@trentfleming.com.

THE ARKANSAS BANKER

• 21

“The initiative has opened student-run, operational bank branches inside two Batesville-area high schools.”

22 • WINTER 2023

WITH

CITIZENS BANK’S NEW 'BANK IN A SCHOOL' INITIATIVE TAKES FINANCIAL EDUCATION HANDS-ON.

Y

oung Americans have instant access to more information than any generation in history. But studies show many have a worrying blind spot that could impact

their lifelong financial independence and earning potential: a generally poor understanding of the basics of banking, economics and budgeting. In other words: financial literacy.

In a 2022 study by the George Washington University School of Business and the TIAA Institute, researchers found that Gen Z (those born between 1996 and 2010) was the worst of any American age group at correctly answering basic financial knowledge questions. In the study, members of Gen Z scored an average of 42% on a test covering common financial topics, putting them behind the Boomers and Silent Generation and dead last in every category tested, including borrowing, saving, income and investing.

These results aren't just academic. The same study notes that Americans with very low levels of financial literacy are six times more likely to have trouble making ends meet than those with a good understanding of economic concepts. They’re also three times more likely to be constrained by excessive debt.

With costs continuing to rise and some predicting storm clouds on the economic horizon, financial knowledge might be a pop quiz today's young people can't afford to fail. But a new program in northeast Arkansas aims to help educate young Arkansans about their finances by bringing basic banking operations and financial literacy training right into schools.

DAY TO DAY, THE IN-SCHOOL LOCATIONS OPERATE SIMILARLY TO ANY BANK BRANCH THE ARKANSAS BANKER

• 23

Student bankers can assist student and faculty customers at the school with opening a checking or savings account, depositing funds, withdrawing money or cashing checks up to $50, and other common banking functions.

BANKING BY STUDENTS, FOR STUDENTS

CAREER TRAINING + BANKING & BUDGETING 101

Created through a partnership between Batesvilleheadquartered Citizens Bank and two area school districts, the "Bank in a School" program was launched on Sept. 6. Since then, the initiative has opened student-run, operational bank branches inside two Batesville-area high schools: Southside High School and Batesville High School.

Known as Financial Education Centers, these innovative programs are the first of their kind in Arkansas, and among only a handful of similar initiatives nationwide. Officials hope the services and information provided at the centers will help students get a running start at a sound economic future, while providing a select few with training that can put them on the fast track to banking careers.

"Student-operated" means just that. The branches at Southside and Batesville High Schools are managed and run by specially-trained student bankers, with oversight from instructors and Citizens Bank mentors. To be selected, students had to submit a professional resume and application, and pass a pre-employment interview. Once chosen, they underwent training in banking operations and other relevant topics. Combined, the two schools have more than two dozen student bankers on-site.

Day to day, the in-school locations operate similarly to any bank branch, though with a much more limited schedule. Student bankers can assist student and faculty customers at the school with opening a checking or savings account, depositing funds, withdrawing money or cashing checks up to $50, and other common banking functions.

At the same time, the branches serve as a hub for financial education at each school, offering information on more in-depth educational opportunities on topics like the basics of credit and understanding a credit score, budgeting for household expenses or a startup business and more.

Both bank and school officials are optimistic the program can help more students achieve greater financial independence while providing hands-on training in a high-paying sector.

“We know that our faculty and staff, parents and patrons will be excited knowing that this opportunity will enrich the learning of both the student bankers and the student customers,” Southside School District Superintendent Dion Stevens told the Batesville Daily Guard. “We hope this hands-on approach can spark several future stories and provide knowledge and skills for future employers in our community.”

Citizens Bank CEO Adam Mitchell, who championed the creation of these Financial Education Centers throughout the process, has similarly high hopes for the program and the impact it can make on students' financial lives. He said that by integrating banking into the school environment, the effort is making financial education and banking careers much more accessible and relatable to students.

"The thing a lot of young people seem to fear most is looking uninformed in front of others," Mitchell said. "Nobody likes to give the impression they're not up to speed on important issues. But when it comes to financial education, that reluctance to ask questions can be dangerous to a person's economic future."

Through the Financial Education Centers, Mitchell said, students can see and experience firsthand how banking works, learning from their peers and trusted educators in a supportive setting. He believes this familiarity will make a big difference, both in making financial education more accessible and opening a pipeline for the future banking workforce in Arkansas.

"There isn't always a reliable way for them to learn about personal finance," Mitchell said. "Their classes might not cover it in depth, and a lot of parents don’t discuss money matters openly with their kids. With these programs, we can help teenagers start to understand how making smart financial decisions can improve their lives and expose them to a viable career option."

Mitchell said he's hopeful the program will not only impact this community, but also empower additional opportunities to place hands-on financial practices on the campuses of our schools. He trusts that the financial health of the younger generation will greatly affect the financial health of the whole state – and sooner than you think.

"It's not that young people don't care about their finances," Mitchell added.

"They absolutely do, including being one of the most debt-wary generations in American history. The problem is, there's a lot of bad information out there about financial issues, and they don't know who to listen to. If we give them a place where they can access solid financial advice from people they trust, I believe they'll not only listen, they'll utilize that advice for the rest of their lives."

24 • WINTER 2023

THE ARKANSAS BANKER

• 25

INDUSTRY U P DAT E S

Financial Security For Our Nation’s Veterans

by Lindsay Torrico

G

iven their many sacrifices, America’s veterans deserve more than just the thanks of a grateful nation. Among other things, they deserve a financially

secure life after their service. Yet, thousands of veterans find it difficult and costly to access their VA monetary benefits, simply because they don’t have a bank account.

Fortunately, leaders from the public, private and nonprofit sectors are stepping up to tackle this challenge. The Association of Military Banks of America and the U.S. Department of Veterans Affairs founded the Veteran Benefits Banking Program in 2019 to help veterans get their benefits quickly and safely.

The program aims to establish and maintain an online marketplace of military and veteran friendly banks and credit unions committed to banking unbanked and underbanked veterans, beneficiaries, survivors and caregivers. What’s more, the VBBP offers veterans and family members a free financial or credit counseling session to provide them with trusted and unbiased financial education, resources and information.

By joining the Veteran Benefits Banking Program, your bank will be able to provide a safe, more reliable way for veterans to receive their monetary benefits and put themselves on a path towards financial stability and prosperity.

To date, the VBBP has already helped more than 250,000 veterans gain access to the banking system and provided a growing number with personalized credit and financial counseling. This is incredible progress made possible by the hard work, innovation, and collective efforts of AMBA and the VA to help our nation’s veterans.

The ABA Foundation is looking to build on this momentum by partnering with AMBA and asking every bank in the country to join the VBBP. As part of our commitment to reduce the number of unbanked and underbanked veterans in the U.S., the ABA Foundation is now serving as AMBA’s fiscal sponsor of the program, which will aid the program’s fundraising efforts. In addition, the ABA Foundation is launching a campaign to make banks aware of the VBBP and how easy it is to demonstrate their commitment to our veterans by

By joining the Veteran Benefits Banking Program,

your bank will be able to provide a safe, more reliable way for veterans to receive their monetary benefits and put themselves on a path towards financial stability and prosperity.

26 • WINTER 2023

“Thousands of veterans find it difficult and costly to access their VA monetary benefits, simply because they don’t have a bank account.” helping them find easy, affordable access to the financial products and services they need.

The requirements to join the VBBP are simple. Participating financial institutions commit to: Offer a free checking account (with no minimum balance) to a VA benefit recipient who brings a monthly government deposit to the bank.

Offer assistance to VA benefit recipients if they do not qualify to open deposit accounts. At the financial institution’s discretion, this assistance can be provided through other financial products, education or counseling.

Most banks already go out of their way to serve the veteran community, but they may not be aware of the VBBP. We want every bank to join this successful program and demonstrate the industry’s commitment to those who have given their nation so much.

By joining the VBBP, your bank will be able to provide a safe, more reliable way for veterans to receive their monetary benefits and put themselves on a path towards financial stability and prosperity.

Together we can demonstrate the banking industry’s steadfast support of our veterans’ financial health and well-being.

TAKE ACTION

To learn more and answer the call, visit aba.com/vbbp THE ARKANSAS BANKER

• 27

28 • WINTER 2023

Veteran + Banker

Janice Williams

Jay Clevenger

Justin Teague

SERVING SERVING

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. 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. THE ARKANSAS BANKER

• 29

30 • WINTER 2023

Veteran + Banker

Janice WILLIAMS

ARKANSAS NATIONAL GUARD MASTER SERGEANT

SOUTHERN BANCORP

Retail Market Manager HELENA-WEST HELENA

H

urricane Katrina had just ravaged the city of New Orleans on Aug. 29, 2005, and Janice Williams was deployed with the National Guard to provide assistance. One day, they were on a mission to provide food to residents that had no water or power. While on patrol, they noticed a woman with a baby and other small children.

The road they were on was covered in debris and there was no way for them to get out. Just getting to them was treacherous, but Williams decided to try. She got a cooler full of milk and climbed through the tangle of debris.

She will never forget that moment.

“The look on her face told me I was doing my part. It was a honorable position and place for me to be in,” she said.

Williams has served for 25 years and is now a master sergeant. She is stationed at Camp Robinson and has spent much of her service as a military police officer.

She works as a retail market manager for Southern Bancorp as well.

Her goal early on was to go into full military service, but her life circumstances wouldn’t allow it, she said. One reason is she wanted to get out of Arkansas, she said with a laugh. Through the years, she’s been deployed domestically and abroad.

Williams has served tours in Afghanistan and Guantanamo Bay in Cuba. She was deployed during the George Floyd riots, ones that erupted after he was murdered

by police officer Derek Chauvin in 2020.

Williams has also provided assistance during several natural disasters.

Through the years, Williams has learned several valuable lessons that have translated into her private sector work.

“In the military, we train hard and get ready for situations that require immediate responses,” she said. “You have to make spot decisions. It’s helped me to calmly make decisions and I can bring that to my crew at the bank. It’s something they like, and they tell me that.”

At Southern Bancorp, she oversees about 25 tellers in the bank’s seven branches. The team building and communication with her bank team is similar to working with her National Guard team, she said.

Williams was recently enrolled in the National Guard’s Sergeant Major School.

She is slated to graduate in 2025. Any regrets with her career path?

“No … I’ve always wanted to serve. I love it. I love the people I work with. This is what I was meant to do.”

Annual Training

Teaching a class

on riot control

“I’ve always wanted to serve.”

THE ARKANSAS BANKER

• 31

32 • WINTER 2023

Veteran + Banker

Jay

CLEVENGER NAVY

RADIOMAN SECOND CLASS

CENTENNIAL BANK

Senior Vice President and Senior Retail Leader JONESBORO

J

ay Clevenger received a golf scholarship out of high school to a junior college. He attended for a year, but decided not to return.

He worked at a cotton gin for awhile, but quickly came to realize he didn’t want to do that either.

He finally decided to enlist. A Navy recruiter sold him on the idea of traveling around the world. His father had served as a radioman during the Korean War and he decided to follow in his footsteps.

Clevenger served from 1982-1987 and rose to the rank of RadioMan Second Class.

“In retrospect, I came out of the Navy when I was 25. I needed it. It gave me much more discipline. It gave me much more responsibility. Before my service, I didn’t put forth much effort at school. I didn’t try very hard. After my service, I worked hard and got my college degree. I needed those years in the Navy,” he said.

Clevenger now works as the senior vice president and senior retail leader at Centennial Bank. He oversees branch managers, tellers and other employees.

About 115 employees report to him. His other tasks include budgeting, personnel, compensation, and more. He’s been in the banking industry for more than 22 years.

During his Navy days, he served on the USS Cleveland, an amphibious transport ship. It could deploy up to 600 marines within half a mile of virtually any coastline in the world. He was stationed in San Diego. He said he served at one of the heights of the Cold War between the United States and Soviet Union.

Clevenger was deployed twice in the Pacific. The Navy refers to them as “cruises.” During these cruises, they would do tactical operations within their squadron.

Sometimes they would play war games or have simulations with squadrons from other countries such as Singapore or Canada.

One of the benefits was seeing many of the ports of call throughout the western Pacific, he said.

“You also got to see a lot of water,” he said with a laugh. “When we got time off we got to visit a lot of ports … it was an experience.”

One tool that he used in the Navy was a computer. He’d never seen one up until that point, and it was his first introduction to higher level technology and much of that is used in the banking industry today, he said.

While serving, Clevenger said he worked his way through the ranks and was often a shift leader and at one point he became a Petty Officer. He often had to make work schedules, assign tasks and make other management decisions.

That experience has helped him to become an administrator in the bank industry, he added.

“The leadership skills I developed in the Navy, I took into the private sector,” he said.

Crossing the Equator Ceremony 1983

Dry Dock - 1986

THE ARKANSAS BANKER

• 33

34 • WINTER 2023

Veteran + Banker

Justin TEAGUE

U.S. ARMY

1ST LT. INFANTRY OFFICER

CITIZENS BANK

VP, Centralized Underwriting ROGERS

W

hen banker Justin Teague was deployed to Afghanistan in 2013, he had no idea he’d be returning to the U.S. on September 11th – a day of ignominy in 2001 that triggered American forces being deployed in the country.

The veterans that proudly served the country before him motivated Teague to join the Army.

“I felt it was a duty of mine that there had been many people going before me that had done it. I felt like I owed it to them to do so,” he said.

Teague is the VP for Centralized Underwriting at Citizens Bank. He’s based out of Rogers and deals mainly with consumer lending and anything not related to real estate.

He said being in the Army taught him valuable lessons that apply to the business world, but none more important than patience.

“A big takeaway is it’s not over until it's over,” he said. “If you're working on a deal or if you're working on a project or something at work, don’t get down and discouraged.”

While he saw things that are unspeakable to some, Teague said his appreciation for the freedoms we enjoy really hit

home when he saw the abject poverty of a third world country.

“What we know as poverty here in America does not even begin to scratch the surface of what poverty is really like.

We were out on mission one day and we were driving through the city and I saw a guy – he didn't have any legs – but he was scooting himself down the street in the lid of a metal trashcan. His hands were wrapped up with a rag so his hands wouldn't get cut up from the street. That was a moment for me,” Teague said.

Despite the negative surroundings, he said he would serve again and thinks military service is helpful for those in need of perspective.

“I think it would do people good to do some form of public service like that,” Teague said. “I wouldn't say being deployed to Afghanistan was fun, but it was a good experience. I would, ironically, go back just because it gives you an appreciation for what we have here.”

“It’s not over until it's over.”

THE ARKANSAS BANKER

• 35

INDUSTRY U P DAT E S

LEGAL OPTIONS

WHEN BANK EMPLOYEES TAKE CONFIDENTIAL DATA FROM BANK SYSTEMS

by Anton Janik & Lizzi Esparza

D

espite bank policies, training, computer warning banners, governing laws and banking regulations, bank employees still take bank or customer data as their employment ends.

They take potential or current customer lists, transactional data and supporting customer files, procedural manuals, or other confidential or proprietary information including data protected here in Arkansas by the Personal Information Protection Act or federally by the Gramm-Leach-Bliley Act and its ensuing regulation. Here are ways to manage data theft by bank employees.

Policies should be set in place. Employee access to data should be limited to only that data needed to perform daily duties, and controls should be put into place to monitor and protect against credential sharing and inappropriate access to data. Make sure your policy forbids the removal of confidential data, including personal financial information and state protected information, from bank systems to personal devices or personal email addresses. Consider the use of formal confidentiality and nondisclosure agreements.

Actively monitor and keep logs of network, device and computer activity. Consider preserving an image of the former employee’s company hard drive, or at least their complete email account, when that employee leaves. Your infosec or internal audit team can easily catch the transmission of data to external email addresses. Have software and systems in place to catch the move of data to personal devices, like USB drives.

If data theft is found, engage your legal team to help determine the scope of the loss. This includes whether the data contains any confidential information or that protected by state or federal law. For current and prospective customer lists, explore actual and likely damage from that loss. Keep in mind that your internal procedural manuals have value to your competitors, especially smaller competitors including smaller loan operations.

In most cases, your legal team will notify the former employee in writing regarding the theft. The letter should provide enough information about the loss to show the employee that they have been caught, remind them of the bank policies, demand that they permanently delete any bank data they possess, and that they detail whether they have transferred or shared that data with anyone else. Where state or federally-protected data is involved, remind them of mandated breach notification laws.

You can provide that costs for same will be charged back to the employee. Also send the employee an affidavit which confirms the removal and ensuing deletion of that data and all copies, that it was not further transmitted, and that addresses the employee’s job, scope, tenure, and recognition of governing bank policy and procedure. For further proof of deletion, you may require access to the account or device.

Send a letter to the employee’s new employer. Alert the new employer to the theft, identifying the data by title or subject matter, and asking them to confirm that the data has not and will not be uploaded into their systems.

Further options. If the former employee won’t cooperate with this process, further options are available. Under section 38(k) of the Form 101/Suspicious Activity Report, banks are under an obligation to report the misuse of position or self-dealing to FinCEN. Include information on the policies and procedures in place, the dates and scope of the theft, the depositor prejudice, the financial impact to the bank and depositors, and the employee’s disregard with your attempts to resolve this. The Federal Reserve can issue an Order of Prohibition barring the employee from participating further in any banking activity.

Finally, you may also sue the former employee for damages arising from that theft of customer data, bank confidential documents and strategic materials, and the costs of mandated notification.

ABOUT THE AUTHORS Anton Janik, CIPP/US, CIPP/E and Lizzi Esparza, CIPP/US are certified information privacy professionals and information privacy, security and data rights attorneys with Mitchell Williams law firm. The opinions expressed are those of the authors.

36 • WINTER 2023

THE ARKANSAS BANKER

• 37

INDUSTRY U P DAT E S

ONE RULE FOR ALL:

INTERAGENCY GUIDANCE FOR THE RISK MANAGEMENT OF THIRD-PARTY RELATIONSHIPS

by Julia A. Gutierrez

T

he day to day functions of a financial institutions would be impossible without the ability to outsource.

Recently, existing guidance applicable to each specific regulatory agency, the Federal Reserve (Board of Governors of the Federal Reserve System), the FDIC (Federal Deposit Insurance Corporation), and the OCC (Office of the Comptroller of the Currency), was replaced with a single rule, the Interagency Guidance on Third-Party Relationships: Risk Management. The Interagency Guidance, aligns the regulatory requirements and risk management expectations of third-party relationships among the “agencies” (Federal Reserve, FDIC, and OCC).

Financial institutions routinely rely on third party relationships for their day-to-day functions and existence. In today’s ever-growing world of speed and technology, it would be nearly impossible to be successful and competitive without outsourcing to third party vendors.

Financial institutions may rely on outsourcing for a range of products, services, and other activities. Outsourcing allows financial institutions a number of significant benefits including faster and more efficient access to technologies, human capital, delivery channels, products and services, and markets. It can also mean a more cost-effective operational existence overall.

Despite the option to outsource certain functions and activities, financial institutions must still adhere to the risk management and compliance expectations. The use of third-party relationships does not alleviate the need for sound risk management within an organization. In fact, it’s quite the opposite when it comes to third party relationships. Third party relationships, especially those involving new technologies, could present an even higher or more elevated risks for

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financial institutions. A phrase we commonly use in the compliance industry is “you can contract away the function, but you can’t contract away the compliance responsibility”. Financial institutions must understand their responsibilities to ensure safe and sound third party relationship and practices in conjunction with the compliance of all applicable laws and regulations, including those which are intended to protect consumers.

THE NEW INTERAGENCY GUIDANCE On June 6, 2023, the federal banking agencies issued Interagency Guidance on Third-Party Relationships: Risk Management. Much of what is outlined in the new Interagency Guidance is already somewhat familiar to the agencies. The core concepts of the Interagency Guidance remain consistent with the individual agency guidance that existed prior. The new interagency guidance provides consistency and an interagency approach at managing third party risk. This is especially important for those relationships which involve critical third parties and relationships that are customer-facing or may otherwise be impactful to consumers.

The new Interagency Guidance was developed to align with the expectations and best practices in other areas of risk management. It creates a vendor management lifecycle which includes six-steps: 1. Planning for a relationship 2. Due Diligence and third-party selection 3. Contract negation 4. Oversight and accountability 5. Ongoing monitoring 6. Termination

“Third party relationships, especially those involving new technologies, could present an even higher or more elevated risks for financial institutions.”

It’s worth noting that the guidance is broadly applicable and applies to all business arrangements. It doesn’t specifically address the various categories or the types of third parties, such as artificial intelligence or fintech firms. But the principles within the guidance will apply to all third parties and third-party relationships. That being said, financial institutions must manage all third-party relationships, but not necessarily to the same extent as the principles within the guidance can be tailored to the relationship. The interagency guidance provides a number of examples, which should not be interpreted as exhaustive, that financial institutions may consider for their due diligence processes. But, the agencies do note that the guidance does not impose any new regulatory requirements.

The new Interagency Guidance may not create any new regulatory requirements for financial institutions, but it is focused on managing various risks associated with outsourcing certain products, services, and activities, especially those impacting consumers. The guidance is a reminder to financial institutions that consumer protections and compliance remain a priority among the regulatory agencies. The guidance emphasizes compliance and consumer protections, as those phrases, and similar phrases, are mentioned numerous times throughout the guidance. Financial institutions must be particularly diligent in ensuring they, and their third-party service providers, abide by and comply with all applicable laws and regulations. This includes ensuring that their financial institution, and any of third-party services providers, do no engage in any unfair and deceptive acts or practices,

The new Interagency guidance provides clarification regarding the oversight of a third-party’s subcontractors indicating that financial institutions should focus on the selection and oversight processes of their third-party. Financial institutions are not expected to oversee the subcontractors directly. The guidance also clarifies and distinguishes the roles of the board of directors and senior management when it comes to third-party oversight. The guidance provides various factors that the board of directors may consider for carrying out their responsibilities and it also identifies activities and responsibilities in which management may perform.

Many see this new Interagency Guidance as a signal to financial institutions that enhanced risk management practices are an area of focus for regulators and are critical to the safety and soundness of an institution. This guidance, along with other recent consent orders, may be foreshadowing the supervisory focus on vendor management relationships and the bank’s risk management practices for maintaining such relationships.

However your institution interprets the new guidance, it is essential that a review of its current policy/procedures and risk management practices is conducted to ensure it aligns with the new interagency guidance. Since much of guidance seems to highlight due diligence, contracts, and the management of third-party risk and relationships, banks should consider integrating or at least addressing their third-party relationship risk management program with their overall ERM (enterprise risk management program).

ABOUT THE AUTHOR Julia A. Gutierrez serves as C/A’s Director of Education; developing curriculum and presentations, as well as presenting at various schools and seminars; both live and in a livestream/hybrid format. Julia has over 20 years of financial industry experience to the Compliance Alliance team.

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INDUSTRY U P DAT E S

Two Ways to

Win the Talent War in 2024

by Casey Kines

I

n a job market where skilled professionals are in high demand, the benefits an employer provides can be the key to winning and maintaining employee loyalty. If you're looking to attract and keep top

talent in the financial sector in 2024, consider embracing these two forward-thinking benefits trends that will not only distinguish your bank but also demonstrate a commitment to enhancing the employee experience.

Consider Offering Full-Coverage Health Plans

One of the biggest challenges facing American workers is the rising cost of healthcare, which causes financial stress and anxiety for many. To ease this burden and attract valuable talent, some banks have decided to cover 100% of monthly healthcare premiums for their employees. This is a significant advantage over the national average of 78% and can make a significant difference for candidates who are comparing different job offers.

While this level of coverage has been historically more popular among smaller banks, the competitive labor market of the last decade has prompted many larger banks to adopt full-coverage health plans. Although an investment, many leaders understand the value in the long run because it supports health outcomes and mental wellbeing, boosts engagement and productivity, and enhances employee loyalty and retention.

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There are several key questions leaders may want to ask when considering a full-coverage health plan:

Q: Will the bank pay 100% for employee-only coverage, or include spouses and dependents as well?

It is more common for banks to cover 100% of premiums for employee only, while requiring other plan members to pay extra.

Q: How will a full-coverage health plan affect other costs?

While paying no premiums sounds appealing, shifting costs to employees through higher deductibles and out-of-pocket maximums can reduce the actual benefits for plan users who need more medical care.

Q: How does the cost of a full-coverage health plan compare to hiring a new employee?

According to the 2021 Kaiser Family Foundation Employer Health Benefits Survey , the average healthcare policy provided by employers costs about $7,739 for single coverage and $22,221 for family coverage.

According to SHRM , the average cost to recruit, hire, and onboard a new employee is $4,129. Depending on the specific needs and challenges of each bank, offering full-coverage health plans may or may not be a smart financial decision.

When looking to target a specific segment of employees with enhanced benefits , consider integrating complementary benefits with primary health plan strategies to gain flexibility and tailor benefits

to the needs of different employee constituencies. Senior leadership plans, key employee plans, plans for high turnover positions, targeted coverage plans such as mental health and wellbeing are all strategies that remind employees how much they are valued throughout the year versus a “one and done” taxable pay increase or a soon forgotten sign-on bonus. Employers can get creative and select from a range of solutions to meet budget constraints or “percent of compensation” guidelines.

Investing In Flexible Voluntary Benefits

You can’t satisfy everyone’s needs and preferences all the time, but offering voluntary benefits can certainly help. Voluntary benefits, also known as supplemental benefits, are optional extras that employees can choose at a lower group rate than their employer has negotiated with providers. Employees still must pay for these benefits, but the cost is usually much less than it would be without the employer’s support.

Consider integrating complementary benefits with primary health plan strategies to gain flexibility and tailor benefits

Voluntary benefits can also allow employees to tailor the benefits packages to fit their specific needs. For example, they can opt for life insurance with long-term care, which combines life insurance and long-term care benefits in one policy . This way, they can use part, or all of the death benefit to pay for long-term care expenses that regular health insurance or Medicare won’t cover, such as assisted living, home health care, or nursing home.

Navigating the fiercely competitive talent landscape in 2024 requires financial sector employers to be proactive in securing and retaining the best professionals. By embracing forward-thinking benefits trends like offering full-coverage health plans and flexible voluntary benefits, you not only stand out in the industry but also show a commitment to improving the overall employee experience.

In a world where talent is the most valuable asset, these strategies implemented with a strategic partner can make all the difference in your journey to win the talent war in 2024.

ABOUT THE AUTHOR Casey Kines is an Associate Vice President at OneDigital who is based in Little Rock

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MEGA CONFERENCE SE P T E M BE R 2 6 - 2 7, 2 02 3 • LITTLE RO CK M ARRIOTT

PHOTOS: Left to Right from Top: CP Insurance Associates – Marty Rhodes, Andy Harvey, and Tim Holt; Lori Ross, Meredith Lowry, Lorrie Trogden, and Don Gooch; Arkansas Secretary of Agriculture, Wes Ward; Strategy Corps – David DeFazio; Hurley & Associates; Attendees sit in on a seminar during the conference; FNBB – Herbert Thomas, Ryan Wilson with Centennial Bank (winner of the grill), & Jay Wisener; Capital CDC – Thomas Braasch & Don Keesee; Ryan Moore, Camille McLaughlin, & Tim Nickens; Jamie Doss & Jennifer Wyatt; Colby Herndon, Sarah Duncan, & Emily Tornabene; Camille McLaughlin & Past Chairman, Rob Robinson

photography by Michael Pirnique

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EMERGING LEADERS CONFERENCE OC TOB E R 1 8 - 1 9, 2 0 2 3 • CLIN TON PRE SIDE NT IAL C E NT E R • LIT T LE RO CK

PHOTOS: Top Right: 2023-2024 ELS Council members: Amber Murphy, Secretary/Treasurer; Gabe Roberts; Ian Bryan, Vice President; Latrecia Carroll, President; Lauren Staton; Rhett Shepard; and Britt Burris.

Middle Right: Legislative Panelists included: Representative Brian Evans, Senator Scott Flippo, Senator Breanne Davis, and Senator Clarke Tucker.

Middle Left: Dr. Julien Mirivel signed copies of his book, “Positive Communication for Leaders.”

Middle Middle: Lorrie Trogden stands with some of this year’s Leadership in Banking Academy graduates.

Bottom Right: C- Suite Panelists included: Brad Chambless, Tracy French, Marnie Oldner, Cathy Owen, and Jim Taylor Middle Bottom: ELS President Duncan Bellingrath of Simmons Bank welcomes everyone to the conference.

Bottom Left: Lorrie Trogden and Duncan Bellingrath stand with Mickey Belle Shields of Cornerstone Bank, winner of the Bill Holmes Leadership Award.

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NEWS & MOVES SHAY FALADE

JOINS STONE BANK

S

hay Falade has joined Stone Bank as an IT Auditor.

She is a graduate of the University of Arkansas at Little Rock and a 2023 participant in the Tjuana Byrd Sumner Internship Program. Falade was formerly a Database Administrator Intern with Acxiom.

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

Shay Falade IT Auditor

MIGUEL LOPEZ, CHARLES BLAKE JOIN SOUTHERN BANCORP TO LEAD LATINO, LITTLE ROCK MARKETS

S Charles Blake

Little Rock Market Executive

Miguel Lopez

Market Strategy Executive, Hispanic/ Latino Market

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outhern Bancorp has hired Charles Blake as its Little Rock market executive following the opening of its first bank branch in the capital city earlier this year.

“We are thrilled to welcome Charles Blake to our mission-focused team,” said Darrin Williams, CEO of Southern Bancorp. “When we first expanded our mission to Little Rock, we did so with an intentionality to reach deep into underserved and under-resourced communities to create more pathways to opportunity for our neighbors. Selecting Charles to fill this role, with his extensive background in public service and relationship-building, will enable us to make even more of a positive impact for families and small businesses in Central Arkansas.”

Blake has years of financial experience. After earning his bachelor’s degree in political science at Grinnell College in Iowa, the Little Rock Central High alum returned home, first in the banking sector with Regions Bank and later Morgan Keegan & Co, and most recently working as a consultant for Think Rubix.

In 2015, he was elected to the Arkansas House of Representatives, where he would serve three terms representing Little Rock. Following his time as an elected official, Blake served as Little Rock Mayor Frank Scott Jr.’s Chief of Staff.

In his new role with Southern Bancorp, Blake will plan, direct, and implement business development and community outreach initiatives in and

around Little Rock for the CDFI. Miguel Lopez is joining Southern Bancorp in the new role of Market Strategy Executive, Hispanic/ Latino Market, a position that will expand its efforts and impact for Spanish-speaking communities.

Lopez brings years of experience in both banking and outreach to the role, most recently as SVP, Chief Community Outreach Officer at Encore Bank. Prior to this, he served as Hispanic Resource Officer and later Vice President of Community Development & Hispanic Resource Officer for First Community Bank.

Before getting into the banking sector, Lopez worked for the Little Rock Regional Chamber as Director, Small Business and Entrepreneurship.

In his new role with Southern Bancorp, Lopez will lead the strategy and outreach behind the CDFI’s expansion of services for Hispanic and Latino customers, and prospective customers, within its current banking footprint and beyond.

“Increasing our commitment to and capabilities for our Hispanic and Latino customers and neighbors has long been a goal of ours, and Miguel is the perfect person to lead those efforts,” Williams said.

Lopez is a graduate of both the Paul W. Barret Jr. Graduate School of Banking and the University of Arkansas at Little Rock, where he earned a Bachelor of Arts in Political Science, a Graduate Certificate in Nonprofit Management, and a Master of Public Administration.

Whittney Baggs

Commercial Examiner

John “Owen” Moore Commercial Examiner

Jordan Hindman

Commercial Examiner

Joshua “Easton” Householder

Krystal Smith

Commercial Examiner

Administrative Specialist

ARKANSAS STATE BANK DEPARTMENT HIRES NEW EXAMINERS

T

he Arkansas State Bank Department has hired four new Bank Examiners.

Mrs. Whittney Baggs earned a Bachelor of Science Degree in Financial Management from Arkansas State University in Jonesboro. Baggs has over two years of work experience as a Financial Examiner for the State of Nebraska Department of Banking. She will be working as a Commercial Examiner in the Jonesboro office.

Mr. John “Owen” Moore earned a Bachelor of Science Degree in Agricultural Business from the University of Arkansas in Fayetteville. Moore has over two years of work experience in the insurance industry. Moore will be working as a Commercial Examiner in the Little Rock office.

Mr. Jordan Hindman earned a Bachelor of Science Degree in Business Administration from Arkansas State University in Jonesboro. Hindman has almost three years of work experience in the banking industry. Hindman will be working as a Commercial Examiner in the Springdale office.

Mr. Joshua “Easton” Householder earned a Bachelor of Science Degree in Finance from Arkansas State University in Jonesboro. Householder has over one year of work experience in the banking industry. Householder will be working as a Commercial Examiner in the Springdale office.

Additionally, the Arkansas State Bank Department has hired Krystal Smith as an Administrative Specialist. Smith earned an Associates of Science Degree from Pulaski Technical College in Little Rock.

She has prior work experience with the Arkansas Department of Finance and Administration. Smith will be working in the Training Division in the department's Little Rock office.

FARMERS AND MERCHANTS BANK NAMES DAN HOSMAN TO BOARD

S

tuttgart-based Farmers & Merchants Bank has appointed Dan Hosman of Swift Ditch Farms Partnership in Northeast Arkansas to its board of directors.

Hosman, of Jonesboro, leads the large rice and soybean operation with his brother Don and father Melvin (Buddy) Hosman. The family owns precision leveled and recreational farmland in Poinsett and Cross counties.

“I am pleased to announce the addition of Dan to our board of directors,” said Farmers and Merchants Bank President and CEO Brad Chambless. “Dan has been a tremendous asset to Jonesboro and Northeast Arkansas. He brings a wealth of knowledge and experience to the table, and we’re glad to have him.”

Hosman has served his community and the state in multiple roles, including Arkansas Rice Council past chairman; Arkansas Rice Farmers board member; Craighead County Farm Bureau board member and past chairman; Arkansas Rural Development Commission member; USA Rice Farmers board member; U.S. Rep. Rick Crawford Farm Advisory Committee member; and Arkansas Department of Agriculture board member.

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NEWS & MOVES CASEY CULLIPHER NAMED CEO OF RIVERWIND BANK

R

Casey Cullipher

Chief Executive Officer and President

iverWind Bank announced the promotion of Casey Cullipher to Chief Executive Officer and President.

Cullipher joined the RiverWind Bank team in June 2016 as the Executive Vice President and General Counsel. By January 2017, he was promoted to President and General Counsel.

“We are very excited to announce Casey Cullipher as the new CEO,” said Charlie Eldridge, RiverWind Bank Board Chairman. “Casey has been with us for seven years and has continually proven himself to be everything we knew he could be as a community banker. We are excited to have him leading us in all of the communities in which we are represented.”

Cullipher has played a pivotal role in the bank’s growth and success over the last seven years. During the pandemic, he led the bank’s efforts to keep small businesses running through many PPP loans.

The bank ventured into its first new market in 10 years in 2022 by opening a branch in Beebe. A press release from the company said RiverWind has grown 50% over the last seven years in loans, assets, and deposits.

Prior to joining RiverWind Bank, Cullipher practiced law in a Searcy law firm and later served as Senior Vice President and General Counsel for another Arkansas financial institution. He graduated from Stonier Graduate School of Banking in 2021, UALR William H. Bowen School of Law in 2006, and Arkansas State University in 2001.

“CASEY HAS BEEN WITH US FOR SEVEN YEARS AND HAS CONTINUALLY PROVEN HIMSELF TO BE EVERYTHING WE KNEW HE COULD BE AS A COMMUNITY BANKER.”

EVOLVE BANK & TRUST NAMES ROB LANCE SENIOR VICE PRESIDENT, COMMERCIAL LENDING

E

volve Bank & Trust named Rob Lance Senior Vice President, Commercial Lending, for the Jonesboro Banking Center.

“Over the last six years, Rob has cultivated substantial investments in the Jonesboro market,” said Randy Reynolds, President, Arkansas Banking Division of Evolve. “He has become an invaluable asset to the growth of area businesses and is also a respected member of the community, which is critical to our mission as a local bank.”

Lance has held similar positions at other financial institutions for over 20 years. Prior to joining Evolve in 2018, he served as Vice President of

46 • WINTER 2023

Lending at First Security Bank, Jonesboro.

“I am honored to be elevated to this role with Evolve,” said Lance. “We have made significant investments in Jonesboro and I am proud to be a part of a local bank that is committed to the financial success of the communities it serves.”

Lance received a degree in Business Administration, with an emphasis in Finance, from Arkansas State University. He is very active with his church and many community organizations such as the Jonesboro Chamber of Commerce, St. Bernards Advocates, Jonesboro University Rotary Club and the United Way of Northeast Arkansas.

“WE HAVE MADE SIGNIFICANT INVESTMENTS IN JONESBORO AND I AM PROUD TO BE A PART OF A LOCAL BANK THAT IS COMMITTED TO THE FINANCIAL SUCCESS OF THE COMMUNITIES IT SERVES.”

GRAND SAVINGS BANK NAMES DALE REED

AS MARKET PRESIDENT IN WESTERN WASHINGTON COUNTY

G

Dale Reed

Market President

rand Savings Bank appointed Dale Reed as Market President to lead Western Washington County. With an extensive background in commercial banking and a strong commitment to community involvement, Reed is well-positioned to lead the Western Washington County market and continue the bank’s tradition of excellence.

“We are thrilled to welcome Dale Reed to Grand Savings Bank as Market President for Western Washington County,” said Guy Cable, CEO at Grand Savings Bank. “His extensive experience, deep community involvement, and proven leadership make him an invaluable addition to our team. We look forward to working with Dale to further strengthen our presence in Western Washington County.”

Prior to joining the team, he served as VP/Commercial Banker at Arvest Bank from 2017 to 2023. During his tenure, Reed consistently demonstrated exceptional leadership and played a pivotal role in driving the bank's commercial banking initiatives.

“HIS EXTENSIVE EXPERIENCE, DEEP COMMUNITY INVOLVEMENT, AND PROVEN LEADERSHIP MAKE HIM AN INVALUABLE ADDITION TO OUR TEAM.”

FIFTEEN GRADUATE FROM 2023 COMMERCIAL LENDING SCHOOL FARMERS & MERCHANTS BANK: Tyler Spoon, Fayetteville

C

ongratulations to our recent 2023 Commercial Lending School graduates! They participated in an intensive weeklong program to learn how to serve as more efficient and profitable commercial loan officers. Graduates included: ARVEST BANK: Erika Carrasco-Quezad, Springdale Simone L. Singh, Springdale

PRIORITY BANK: Ethan Vonnahme, Fayetteville

FBT BANK & MORTGAGE: Tara Arnold, Fordyce

SIGNATURE BANK OF ARKANSAS: Kim Finley, Jonesboro

FIRST FINANCIAL BANK: Alan Meadows, El Dorado Nathan Pierce, Harrisburg

SIMMONS BANK: Arturo Moraga, Little Rock Tametra Phillips, Little Rock

FIRST SECURITY BANK: Tim Cox, Springdale Joab Nazarrio, Springdale Chad Smith, Springdale

STONE BANK: Leslie Hendricks, White Hall Trey Daniel Scallion, White Hall

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NEWS & MOVES ARKANSAS CAPITAL CORPORATION CEO SAM WALLS APPOINTED TO CONSUMER ADVISORY BOARD

A

Sam Walls III

Consumer Advisory Board with the CFPB

rkansas Capital Corporation CEO Sam Walls III has been appointed to the Consumer Advisory Board with the Consumer Financial Protection Bureau (CFPB).

“I am honored to serve the CFPB in this advisory role,” says Walls. “Arkansas Capital is committed to providing equitable access to capital resources, and the Consumer Advisory Board will allow us to continue to fulfill our mission of supporting underserved entrepreneurs.”

Walls is one of 13 advisory board members who were all recommended by a president of a Federal Reserve Bank.

The CFPB describes the Consumer Advisory Board as “a crowdsourced group of experts on consumer protection, consumer financial products or services, community development, fair lending, civil rights, underserved communities, and communities that have been significantly impacted by higher priced mortgage loans.”

The board is also a source of market intelligence and expertise, informs about emerging practices or trends in the consumer finance industry, and shares analysis and recommendations.

Arkansas Capital is a Little Rock-based private, nonprofit lending corporation dedicated to empowering entrepreneurs in Arkansas and in surrounding states. Arkansas Capital has deployed more than $2.34 billion in capital financing since its formation in 1957.

SECURITIES DEPARTMENT SETTLES LAWSUIT AGAINST MORTGAGE SERVICER

T

he Arkansas Securities Department announced it has reached a settlement with ACI Payments Inc. for its role in erroneously initiating electronic withdrawals totaling $2.3 billion from the accounts of 480,000 mortgage-holders serviced by Mr. Cooper, formerly known as Nationstar Mortgage LLC. State regulators in 43 states levied $10 million in fines through a multistate enforcement action led by regulators from Arkansas, Connecticut, Maryland, and Texas with support from the Conference of State Bank Supervisors. Additionally, 50 attorneys general, including Arkansas Attorney General Tim Griffin, levied $10 million in fines to ACI in coordination with state regulators.

The violations occurred when ACI Payments erroneously used live customer data in a test of its Speedpay platform, causing unexpected and sometimes multiple

mortgage payments from customer accounts. In some cases, these transactions exposed consumers to overdraft or insufficient funds fees.

“This case represents an important benchmark for the industry,” said Arkansas Securities Commissioner Susannah T. Marshall. “ACI Payments’ failure to protect consumer information created hardship for 2,827 Arkansans, and with this case, we are sending a message to the industry that companies must be committed to safeguarding personal information and meeting consumers’ rightful expectations of data privacy.”

SIMMONS BANK BREAKS GROUND ON NEW BRANCH IN JONESBORO

P

ine Bluff-based Simmons Bank broke ground Sept. 21 on a new branch in Jonesboro located on Caraway Road. Construction on the 20,000-squarefoot branch is underway with the branch projected to be completed in late 2024.

“With the addition of the new financial center in Jonesboro, Simmons Bank is continuing to deepen our commitment to Northeast Arkansas,” said Kent Bridger, regional community president for Simmons Bank.

The new, full-service location will provide a three-lane drive-thru access as well

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as an ATM with deposit capabilities. The branch will have mortgage and business loan capabilities and provide personal and business financial services.

Architecturally, the financial center is one of the first prototypes for Simmons Bank that will be used to remodel existing branches and build new financial centers across the company’s six-state footprint in the future.

STONE BANK OPENS

CHENAL PARKWAY FACILITY IN LITTLE ROCK

S

tone Bank has opened its new, full-service banking facility at 12615 Chenal Parkway.

The three-story building, built by Bank OZK in 1998, was acquired this year by Stone Bank and is undergoing an extensive renovation to serve as the company’s corporate headquarters.

The retail branch bank features lobby service, four drive-up lanes and a 24-hour automatic teller machine that also serves as an interactive teller machine (ITM) to extend live teller access beyond traditional banking hours.

“This is a very exciting time for Stone Bank,” said Stone Bank CEO Marnie Oldner. “This location puts us in the middle of one of Arkansas’ busiest intersections and the modernization of the building to serve as our headquarters for years to come will make a notable impression on the neighborhood.”

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

ARKANSAS BANKING PROFITS SURGE 14% IN FIRST 6 MONTHS

B

olstered by its three public banking giants, Arkansas’ 82 federally insured banks reported a net income of close to $1 billion through the first half of 2023.

According to the most recent data available from the Federal Deposit Insurance Corp. (FDIC), Arkansas banks had a profit of $990.4 million in the first six months. That’s up nearly 14% from $869 million compared with the first half of 2022.

The state’s three public banks each topped $100

million in income through June — Little Rock-based Bank OZK ($341.8 million), Conway-based Centennial Bank ($226.8 million) and Pine Bluff-based Simmons Bank ($120 million) combined for $688.7 million in profit. That’s up nearly 48% from their totals last year ($475.9 million) and accounts for nearly 70% of the state’s banking income at this year’s midway point.

First Security Bank of Searcy ($66.9 million) and First National Bank of Fort Smith ($15.8 million), both privately owned, round out the top five.

Collectively, Arkansas banks’ total assets as of June 30 ($163.3 billion) grew 1.61% from the previous quarter ($160.7 billion) and 5% from the previous year ($155.4 billion).

LEGACY NATIONAL BANK

OPENS 2ND BENTONVILLE BRANCH

S

pringdale-based Legacy National Bank announced the opening of a new Bentonville branch. The downtown office is in leased space on the first floor of the three-story building at 107 N.W. Second St. next to Flying Fish. The bank has dubbed the new branch “Legacy Landing.”

“Legacy Landing offers a different banking experience compared to other Legacy National Bank branches,” CEO Patrick Swope said. “In our early discussions of how we could deliver an innovative experience for customers, we knew our approach and branding would have to be different. So we focused on creating a comfortable space — one that people would want to do business in and hang out in.”

The branch will feature interactive teller machines (ITM) for a wide range of banking services, including live teller interactions. Additional amenities at Legacy Landing include e-bikes, conference rooms, a beverage bar and lounge space.

Legacy launched in 2005 and has 11 locations in Benton and Washington counties. The company opened its first Bentonville office in 2018 at the southwest corner of Walton Boulevard and Southwest 28th Street.

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