The Arkansas Banker Winter 2020

WINTER 2020

WHAT’S INSIDE

Veteran + Banker 5 Veterans Combine Banking and Military Experience

Chris Milum

2020 Bill Holmes Award Winner

Amber Murphy Millennial on the Move

Prepared

TO LEAD A R K A N S A S B A N K C O M M I S S I O N E R

Susannah Marshall

PG 22

THE ARKANSAS BANKER

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WINTER 2020

CONTENTS A PUBLICATION OF THE ARKANSAS BANKERS ASSOCIATION

WINTER 2020 VOLUME CIII, NO. 4

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ARKANSAS BANKERS ASSOCIATION STAFF

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President/CEO Lorrie Trogden VP/Controller Carla Brinkley VP/Professional Development Kami T. Coleman Technology & Marketing Director Jessica Sahene Operations Support Coordinator Rachelle Smith Business Development Director Anna Squire Executive Administrative Assistant Peggy Cecere

EDITORIAL STAFF Editor Roby Brock Creative Director Ashlee Nobel

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President’s Message Professional Development

Columns

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Chairman’s Column Guest Commentary

Contributing Photographers McCullough Expressions

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.

Features 32

BANKER Q&As

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Duty & Honor

5 Veterans Combine Banking and Military Experience

COVER STORY

22 Prepared to Lead

Arkansas Bank Commissioner Susannah Marshall

ON THE COVER

Arkansas Bank Commissioner Susannah Marshall. Photography by McCullough Expressions

The Millennial Minute: Amber Murphy

In pursuit of a younger generation

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Washington Update

Lee Lee Arts + Design

Contributing Writers Jeanni Brosius, Chad Cumming, Kyle Floyd, Jon Harrell, Gary Kleck, Amber Murphy, Rob Nichols, Marty Trieschmann

Departments

Five Minutes With ...

Gary Kleck

Best advice for community bankers

EMERGING LEADERS

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Bill Holmes Award

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Brandon Gentry

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Emerging Leaders Council

Chris Milum awarded for service to community and country Grooming emerging leaders

INDUSTRY UPDATES

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Credit Unions

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Arkansas UCC Lien Filing

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Data Points

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NEWS & MOVES

Who pays the taxes?

The System has a thorny issue

Insights on agricultural lending

THE ARKANSAS BANKER

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PRESIDENT’S MESSAGE Lorrie Trogden

I “I’ll tell you what bravery really is.

Bravery is just determination to do a job that you know has to be done.”

- Medal of Honor recipient, Audie Murphy

THREE THINGS

TO REMEMBER Schedule a 13TH BOARD MEETING Register for January’s WOMEN IN BANKING CONFERENCE Be on the lookout for your 2021 DUES LETTER 2

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President & CEO

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Arkansas Bankers Association

n this issue we honor our veterans for their bravery and service, and I also want to honor you for your bravery and service during this pandemic. Throughout this health crisis, Arkansas’ banks have been de-

termined to do the job that needs to be done. You have gone above and beyond to help your employees, your customers and your communities. Despite the shortcomings of the PPP and EIDL programs, and now forgiveness, you have continued to march forward and do what needs to be done for the health of our economy and our state. In turn, the association has been advocating for you so that Congress, federal regulatory agencies, SBA, and Treasury will do their jobs that need to be done. (As of November), we continue to lobby for specific forgiveness language to be included in any stimulus bill that may be passed. We are also lobbying for both EIDL and PPP loan forgiveness, along with our long list of other issues that stay at the forefront of our ongoing lobbying efforts at the federal level.

At the state level, we are gearing up – as best as possible – for the 2021 general session. The session starts in January and as of right now, we have no idea what that will look like or how it will operate. Whatever the case, the association will do the job that needs to be done to ensure the safety and soundness of our industry. The Government Relations Advisory Committee is currently looking at potential bills that we may want to run in the upcoming session. Thank you to our new committee chair Jim Taylor with First Security Bank for leading our GRAC efforts.

Let’s not forget the ABA BankPAC. Our 13th Board Meeting campaign has been going well, but we are still short of our $75,000 goal. I urge you to participate in this campaign. BankPAC is a vital part of our government relations program.

Supporting candidates for office that understand our industry and understand bankers’ concerns is one of the most important things we can do. ABA Chairman Jon Harrell and I eagerly await your call to participate in a 13th board meeting soon.

In the same vein of lobbying efforts, we are delighted that Susannah Marshall has been appointed by the governor as the new State Bank Department Commissioner. She has been with the bank department for 26 years, and we heard overwhelming support for her appointment from bankers across the state. I hope you enjoy her interview in this issue.

In closing, I want to thank you for your continued support of the association. It is your investment in us with your attendance at conventions and our schools and conferences, your PAC contributions, your membership dues, and your donation of volunteer talent that keeps the association moving forward and getting the job done so that we can best serve you. I wish you happy holidays and look forward to what the new year brings.

Lorrie Trogden, President & CEO

Thank You

TO OUR

ABA BankPAC Members PRESIDENT’S CLUB

Bank of America Farmers Bank & Trust Company First Community Bank Horatio State Bank James Waller Lorrie Trogden Magnolia Banking Corp MNB Bacshares, Inc Petit Jean State Bank Tom Grumbles Works24 Corporation

GOLD

BKD, LLP Boris Dover Brad Chambless Eagle Bank Hall M. Calhoun James Peacock Jon Harrell Kathryn Roberts Larry Wilson Mark Wilson Mike Wilson Paul Church Randy Scott Rob Robinson Sandra Ferguson Sara Cobb Stanton C. Willis

SILVER

Ali King Sugg Brad Harrison Carl Harrell Charles Penick Dan Byars Dr. Chevron Ergle Dyke Johnson

SILVER (continued) Gina Bennett James Beavers James Hawks James Morgan Jason F. Tennant Jerry Kimbrough John Langston John Maus, III John Rose Justin Bell Katherine Foust Kyle Hensley Larry Oaks Melton Cotton Michael Koone Nicholas Nabholz Otto Lienhart, II Paul Lindsey Paula Blackwell Richard Mosley Richard Smith Ronny Goff Steve Bell Steven Bone Stuart Todd Haynes Tommy Bond Tommy Wagner

BRONZE

Angela Ergle Betty Harris Clark Fincher Cornerstone Bank Gary Bowman Joe Sugg Pat Bond Rachel King Randy McCaslin

Your Arkansas Bankers ABA BankPAC contribution is one of the most important investments you can make to protect the future of the banking industry.

ABA

OFFICERS Jon Harrell, Chairman Generations Bank, Rogers

Jim Cargill, Chairman-Elect Arvest Bank, Little Rock

Randy Scott, Vice Chairman Farmers Bank & Trust, Blytheville

Tom Grumbles, Treasurer First Service Bank, Greenbrier

Rob Robinson, IV, Past Chairman Simmons Bank, El Dorado

Lorrie Trogden, President & CEO Arkansas Bankers Association, Little Rock

BOARD OF DIRECTORS

Craig Attwood, Pine Bluff Nathan Gairhan, Springdale Brandon Gentry, Wynne Robert Husong, Rogers Gary Kleck, Springdale Cody Knight, Piggott Lance Lanier, Van Buren Barry Ledbetter, Little Rock Wilson Moore, Little Rock Marnie Oldner, Little Rock Mark Roberts, Malvern Todd Smith, Magnolia Jamie Waller, Magnolia Lynn Wright, Little Rock

THE ARKANSAS BANKER

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CHAIRMAN’S C O LU M N

Paying It Forward Jon Harrell

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Chairman

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Arkansas Bankers Association

recently had the honor and privilege to welcome and address the Emerging Leaders at their Leadership Conference.

Although virtual, those who attended from Generations Bank said it was successful and well worth the time. Preparing my notes on the topics I wanted to discuss with the group brought me back to my journey through this industry and the people who have had an impact on my career. I have wonderful memories of visiting my grandfather, Searcy Harrell, Sr., at the Calhoun County Bank in Hampton which was only 30 minutes from where I lived.

I was like a kid in a candy store wandering through the vault area and behind the teller line where I knew where all of the candy was hidden. All of the ladies wore the same matching outfits and the men all wore ties with either long or short sleeved shirts depending on the season. It was fun being “Mr. Searcy’s” grandson.

After attending the University of Arkansas for two years and figuring out that I did not want to major in Accounting, I switched to a Finance and Banking degree path. I had the privilege of being under the tutelage of Dr. John Dominick for those last two years of college and am proud to have forged a relationship with him to where we are still in contact to this day. Post college, I was an examiner with the Arkansas State Bank Department under then Commissioner Bill Ford. I forged many great relationships with fellow examiners and staff during those days that continue to serve me well to this day. I eventually made it back to Calhoun County Bank where I had the opportunity to work in the family owned bank. My father, Searcy Harrell, Jr., was now Chairman of the bank but was not a full time banker, but an attorney. Lucky for me, he had developed a relationship with

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“There are many other leaders and bankers in our state who have had and are having an impact on today’s bankers and will have an opportunity to impact the next generation of bankers.”

Dan Horton over the years and I had the opportunity to hang around Dan and watch and learn how he operated his banks. Another consummate community banker!

I made the decision to move to Northwest Arkansas and have the opportunity to work with one of the most dynamic, best business development bankers around in Gary Head. Gary knew how to put together a tremendous team of bankers to lead a start-up and it was exciting to be a part of.

I eventually worked my way back to the family bank when we had the opportunity to purchase two branches in Northwest Arkansas. With more experience and age, I had the opportunity to once again work with my father. He supplied me with a level of trust that I am not sure I deserved, but I will always appreciate. He passed away suddenly in 2013, thrusting me into a position that I was not sure I was ready for. The faith of the family and our bank’s Board of Directors gave me the confidence to embrace my new position and start leading the bank with my vision and abilities. All of these names that I mentioned gave me a piece of the knowledge required to be an effective leader of the organization with the most important being my father’s appreciation for our family owned bank and how important it is to be a community banker. There are many other leaders and bankers in our state who have had and

are having an impact on today’s bankers and will have an opportunity to impact the next generation of bankers.

One of our current challenges is to cultivate our industry into an attractive potential career for those financial leaning prospective graduates. The Great Recession of 2008-2010 left many banks in a condition that we did not hire a tremendous amount of young talent and I think many of us are now paying the price. Many graduates do not consider banking as an option and we need to find a way to change this. We need them to ensure the long-term viability of many of our community banks and let’s face it, they understand and embrace technology that will be a necessity if we are going to continue to operate in this space. As an industry, we need to be intentional about reaching out to our area colleges and universities and contact their business departments and professors to see how we can get involved in encouraging students to look at a career in banking. We need to continue to support the Emerging Leaders Section of the ABA by enrolling our young talent and letting them participate and develop relationships that will pay dividends for them down the road. We never know how we may influence tomorrow’s industry leaders which will in turn help our industry to continue to thrive today and into the future.

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PROFESSIONAL D E V E LO P M E N T

Calendar of Events JA N UA R Y - M A R C H 2 0 2 1

January 12

T UES DAY 9:00 A M

L OA N A S S I S TA N T S & PROCESSORS WORKSHOP

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This seminar is designed to increase the lending knowledge and administrative effectiveness of the loan assistant/loan processor.

INSTRUCTOR: David Osburn

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Supervisor Boot Camp will help you build essential traits such as leadership, professional maturity and emotional IQ.

SUPERVISOR BOOT CAMP

INSTRUCTOR: Vicki Kraai

MO N DAY 9: 0 0 A M TU E S DAY 4 : 0 0 P M

R E A L E S TAT E LENDING SCHOOL

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LOCATION: Arkansas Bankers Association, LR

MO N DAY 9: 0 0 AM TU E S DAY 4 : 0 0 PM

A D VA N C E D B S A / AML COMPLIANCE SCHOOL

A comprehensive two-day program featuring industry experts, law enforcement, and regulators who will discuss the latest changing BSA topics, and offer tips and tools to develop and manage an effective BSA program.

LOCATION: Arkansas Bankers Association, LR

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INSTRUCTOR: Dianne Barton

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TU E S DAY 9: 0 0 A M W E D N E S DAY 3: 0 0 P M

BRANCH M A N AG E M E N T SERIES

This exciting two-part virtual series will focus on the next generation manager who will be leading the transition to customer relationship management and the skills that need to be developed to ensure they will exceed expectations and goals set for him or her.

INSTRUCTOR: Trina McCoy

LOCATION: Virtual Learning

LOCATION: Virtual Learning

T H URS DAY 9:00 A M

KEY RATIO ANALYSIS: C A L C U L AT I N G T H E N U M B E R S C O R R E C T LY !

Learn a “five-step” analysis plan to calculate the key ratios covering liquidity, activity, leverage, operating performance, and cash flow analysis and correctly interpret the financial condition of the business client.

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This two-day school provides the real-estate lending professional with a solid foundation for managing and producing a quality mortgage portfolio.

INSTRUCTOR: David Kemp

LOCATION: Arkansas Bankers Association, LR

LOCATION: Arkansas Bankers Association, LR

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BASIC PERSONAL & B U S I N E S S TA X R E T U R N A N A LY S I S

Attend this proactive seminar and gain an understanding of the often complex and confusing topic of TAXES!

INSTRUCTOR: John Cochran

WEDNES DAY 9:00 A M T H URS DAY 4:00 PM

FRI DAY 9: 0 0 AM

February 01

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THU RS DAY 9: 0 0 AM

WO M E N I N BA N KI N G CO N F E RE N CE

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W E D N E S DAY 9: 3 0 A M THU RS DAY 3: 0 0 P M

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The ABA Mega Conference combines six conferences into ONE awesome professional development and networking event with a trade show, networking opportunities, and more!

MEGA CONFERENCE

INSTRUCTOR: David Osburn

Gain insights on visionary leadership and strategic thinking.

Collaborate, discuss and network with your industry colleagues all in a fun and dynamic environment!

LOCATION: Arkansas Bankers Association, LR

INSTRUCTOR: ABA

INSTRUCTOR: ABA

LOCATION: Virtual Learning

LOCATION: Virtual Learning

WINTER 2020

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

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T H URS DAY 9:00 A M

I R A S : A D VA N C E D

This program focuses on recent changes, and the content is at the intermediate to advanced level. It is assumed that participants are familiar with the basics of IRAs. INSTRUCTOR: Patrice Konarik

March 01

MO N DAY 9: 0 0 AM THU RS DAY 4 : 30 PM

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LOCATION: Arkansas Bankers Association, LR

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COMPLIANCE SCHOOL

This comprehensive four-day school will cover lending, deposits, operations and BSA/AML topics to give a well-rounded view of the compliance landscape, and what to look for in the future.

INSTRUCTOR:

Compliance Alliance LOCATION: Arkansas Bankers Association, LR

T H URS DAY 9:00 A M

BANK DIRECTORS TRAINING

This program lays a foundation for the base knowledge, duties, and responsibilities of Board Members. This seminar is pending approval as meeting the annual training requirement required by the Arkansas State Bank Department.

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INSTRUCTOR: David Kemp LOCATION: Arkansas Bankers Association, LR

W E D N E S DAY 9: 0 0 AM

C & I LENDING

This program will teach you the ins and outs of Commercial and Industrial Lending. From loan products to underwriting and documentation, this seminar covers it all.

Women in Banking Conference - Jan 28th MEGA Conference Feb 10th - 11th

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THU RS DAY 9: 0 0 AM

CRE LENDING

Learn the steps of marketing, underwriting, approving, documenting, closing, and monitoring a Commercial Real Estate loan with this hands on seminar.

INSTRUCTOR: David Osburn LOCATION: Arkansas Bankers Association, LR

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INSTRUCTOR: David Osburn LOCATION: Arkansas Bankers Association, LR

Don’t Forget!

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WASHINGTON U P DAT E

Playing the Long Game Rob Nichols

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President and CEO

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fter months of planning and preparation—and if we’re being honest, a little angst—Americans went to the polls in record numbers in early November to cast their votes in presidential, state and local races.

The contest topping the ticket was one of the most high-profile and most contentious presidential races in recent memory, and at the time of this writing, it isn’t quite in the rearview mirror: several states have yet to certify their results, some legal challenges are pending, and of course, the Electoral College has yet to meet.

But with major media outlets calling the race for former Vice President Joe Biden and Senator Kamala Harris, ABA is preparing for a Biden administration to take over in early 2021. It’s also looking likely that Congress will remain divided, with Republicans in control of the Senate and Democrats maintaining control of the House—though with two critical Senate races in Georgia going to runoff elections, it will still be several weeks until we know for certain.

Regardless of how the balance of power may shift, ABA will continue to draw on its nearly 150-year history of working alongside both parties to find commonsense policy solutions that will support economic growth. It’s a longstanding tradition that we’re proud of, and we have made tremendous progress in recent years in advancing a pro-growth, common-sense and data-driven approach to banking policy.

In fact, many of the significant pieces of banking policy have been bipartisan in nature. Take for example S. 2155—the regulatory reform law that Congress passed in

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American Bankers Association

“Regardless of how the balance of power may shift, ABA will continue to draw on its nearly 150-year history of working alongside both parties to find commonsense policy solutions that will support economic growth ... In fact, many of the significant pieces of banking policy have been bipartisan in nature.”

2018. That effort was a testament to how lawmakers on both sides of the aisle were able to come together to help clear some of the roadblocks that stood in the way of banks’ ability to serve their customers, clients and communities.

That same cooperative spirit is desperately needed today, when so many families and businesses are still feeling the extreme economic effects of the COVID-19 pandemic. As we look ahead to 2021, the economic recovery will be top of mind for policymakers in Washington and the financial industry will have an important role to play in the ongoing response.

Banks played a monumental role as economic first responders in the early days of the pandemic to address the economic dislocation that stemmed from the healthcare crisis, and we’ll continue our work in the weeks and months ahead—keeping an

eye on economic indicators, responding to problems early and helping to restore our nation’s economy. ABA stands at the ready to work with the next administration and lawmakers from both parties to bolster the economy, increase opportunity and create a brighter future for all Americans.

At the same time, we won’t lose sight of our other policy priorities. We’ll continue to put our policy and advocacy expertise to work to address the important issues facing our industry, from AML/BSA reform to CECL to cannabis banking.

As one might expect from a trade association that’s been around for nearly a century and a half, our eyes are on the long game. And while some of the tactics we employ may change with the times, our agenda will remain the same—and will continue to be driven, first and foremost, by the banks we serve.

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GUEST

C O M M E N TA R Y

A Pond Full of Black Swans Kyle Floyd

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Principal, Branding & Design

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nvestopedia defines a black swan as “an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are

characterized by their extreme rarity, severe impact, and the widespread insistence they were obvious in hindsight.” The part of this definition that could be called into question is “extreme rarity.” Our industry – and our country – has experienced three such “rare” events in a relatively short period of time.

The Great Recession of 2007 taught us that we cannot rely on our savings or investments because they can disappear in a moment. It also shone a light on the inadequacies of the high-powered risk models utilized by large investment banks and financial intermediaries in a rapidly changing environment. We learned that not every American is ready for the responsibility of owning a home, and as a nation of consumers, we are prone to financial ignorance.

The terrorist attacks of 9/11 taught us that unexpected events can dramatically alter our sense of personal safety, our finances and even our individual freedoms. The illusion of American invincibility was shattered along with the World Trade Center towers.

And this year, an invisible virus – and the world’s reaction to it – has taught us that there are no guarantees about anything.

By many measures, this has been a shining moment for community banks. Many have accelerated digital and operational practices that were stuck in neutral and have created a flexible ecosystem of ways to serve their customers. Through the PPP loan program, 10

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DD&F Consulting Group

“Events like these fundamentally change the fabric of society, and anyone who tells you they know what the future will look like is definitely not to be trusted. No high-tech risk model, no TED talk, and no bank consultant can offer you anything other than an educated guess. The future of banking will rely on the ability and willingness of its leaders to embrace change.” local banks have found themselves in a position to be a lifeline to struggling business owners. Our industry deserves a pat on the back. It’s been difficult, and it isn’t over, but banks have risen to the moment.

But moments have a way of finding themselves in the rearview mirror, don’t they? So let’s make that pat on the back a quick one and think about what comes next.

These events aren’t as rare as the definition above suggests, and life doesn’t return to normal when they come to an end. Events like these fundamentally change the fabric of society, and anyone who tells you they know what the future will look like is definitely not to be trusted. No high-tech risk

model, no TED talk, and no bank consultant can offer you anything other than an educated guess. The future of banking will rely on the ability and willingness of its leaders to embrace change. Here are some ways to put that into practice:

LISTEN UP Every bank says it listens to its customers, but few truly do. The options people have for money management are growing exponentially, so banks should be looking at what they currently offer and how that needs to change to better serve tomorrow’s needs. Customer feedback can be gathered in many ways, from coffee-shop interviews

to online surveys. If you’ve been in the banking industry for a while, you have your own biases and assumptions that can be hard to look past, which eventually can lead to a disconnect between the bank and the people it serves. One-time research can be useful, but in a constantly changing world, the best course of action is to implement a continuous cycle of feedback and adaptation. Make it the responsibility of someone within the bank, leave your assumptions at the door, and don’t be afraid of what you might hear!

THE CULTURE CLUB One thing we learned from Who Moved My Cheese is that change is difficult, and not everyone deals with it well. We have already established that disruption is the new normal, so how can we change the internal culture of our organizations so that we can keep our best people, and allow them to do their best work? If your bank is fearful of change, and slow to adapt, the customer experience will suffer and employees will seek greener pastures. Bankers are not unfamiliar with marketing, but too few consider marketing to the people

on their own payroll! As 2021 approaches, take time to think about your bank’s culture and purpose. Do they mean anything for today, or are you hanging on to some stale words just because the founder put them on a plaque? Imagine your company’s journey as an adventure, with new sights and potential peril around every bend. If your people believe in your purpose, then you have a powerful crew to keep you afloat. If not, they may just jump ship.

IT’S THE (ATTENTION) ECONOMY! In 1971, American economist Herbert A. Simon was one of the first to discuss the concept of the “attention economy,” where “a wealth of information creates a poverty of attention and a need to allocate that attention efficiently among the overabundance of information sources that might consume it.” Whew! Had Dr. Simon lived to 2020, his hyper-analytical head might just have exploded to see how prophetic his words were. Even though companies know this is the case, they just keep producing more and more information (i.e. marketing) out of a misguided

notion that people need more information to make a purchase decision. Have you considered that they actually need less? As bank consolidation continues and smaller banks are now on the same digital playing field as larger ones, “brand” might be the only real differentiator you can count on.

Your brand is the core of who you are, it’s The Thing that customers will remember you for, and where preference is built. In a world overloaded with information, the most powerful messages are the most precise and the most unique. As Oscar Wilde said, “Different isn’t always better, but better is always different.”

It’s unfortunate that popular culture and the media adopt a pessimistic tone in their narrative of the future. We choose a more positive approach. Banking has a reputation for being slow to adapt and acting downright stodgy, and deservedly so! But here before us is a chance to get out in front of the narrative and help lead our communities forward with wisdom and hard work. Black swan events may have become common, but our response doesn’t have to be.

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BANKER Q&A

THE

MILLENNIAL MINUTE with Amber Murphy Customer Relationship Manager First Financial Bank, El Dorado, AR

WHEN AND WHY DID YOU DECIDE TO BECOME A BANKER? I never really thought about becoming a banker but knew I wanted to pursue my passion of marketing which lead me to First Financial Bank in my hometown. During the pandemic, being classified as an essential worker made me appreciate our industry even more and I’m proud to call myself a banker. I strive to make a difference every day and being a banker gives me the opportunity to help our customers and our community.

HOW DO YOU CONTINUE TO DEVELOP AS A BANKER AND LEADER? There’s a quote from Albert Einstein I think is so true and keeps me going…“Once you stop learning, you start dying.” I love the feeling of learning something new every day which contributes to my development as a banker and leader. I attend regular industry webinars and

workshops to stay up to date. Networking and mentors are crucial for young professionals and I’m grateful to be connected with some of the best. If you’re serious about a career in bank marketing, I encourage you to attend ABA’s Bank Marketing School. It was a game changer for me.

WHY IS IT IMPORTANT FOR THE YOUNGER GENERATION OF BANKERS TO GET INVOLVED IN THE GOINGS-ON IN OUR INDUSTRY? It’s simple… we’re the future of banking. We must as a younger generation be connected with our leaders today to ensure our industry has future success.

IF YOU RULED THE WORLD, WHAT WOULD YOU CHANGE ON DAY 1?

Have a cure for COVID-19 so we could get back to normal!

“Networking and mentors are crucial for young professionals and I’m grateful to be connected with some of the best. If you’re serious about a career in Bank Marketing, I encourage you to attend ABA’s Bank Marketing School. It was a game changer for me.”

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INDUSTRY U P DAT E S

ARKANSAS CREDIT UNIONS

THE REAL STORY

Tax-paying Arkansas banks compete head to head with tax-exempt credit unions. Although they portray themselves as mom and pop shops for people of modest means, today credit unions are a $1.6 trillion industry, with many indistinguishable from banks. The BIG difference—they don’t pay federal income taxes, depriving the U.S. Treasury of nearly $2.4 billion every year.

W HO PAYS T H E TA X E S?

TAXES

PA I D

IN 2019

AR CREDIT UNIONS

$0

AR BANKS*

$342,069,210

ARKANSAS FEDERAL CREDIT UNION

WO U L D H AVE PA I D

$2.3 MILLION IN TAXES

during 2019, had it paid its fair share.

*Includes all applicable federal, state and local, and foreign income taxes

INDISTINGUISHABLE

LARGER THAN MOST

F RO M BAN K S

ARKANSAS BANKS

$$$$$$$$$$

ARKANSAS FEDERAL CREDIT UNION, WITH

SEVEN OF THE TOP TEN

A R K A N SAS - H E A D Q UA RT E R E D

AUTO LENDERS ARE CREDIT UNIONS. INSTITUTION Arvest Bank Arkansas FCU Simmons Bank Bank OZK MilWay FCU Telcoe Federal CU Arkansas Best FCU UARK FCU Diamond Lakes FCU Arkansas Superior FCU

AUTO LOANS ($000) 657,607 601,028 71,126 54,903 45,472 43,175 40,005 30,041 29,608 23,957

NO “COMMON BOND”

A MON G MEMBERS

$1.2 BILLION IN ASSETS,

IS THE LARGEST CREDIT UNION IN ARKANSAS,

LARGER THAN 86%

OF ARKANSAS-HEADQUARTERED BANKS.

ARKANSAS CREDIT UNIONS

LEVERAGE THEIR TAX EXEMPTION

TO GROW DEP OSI TS Arkansas credit unions grew deposits at an

ANNUALIZED RATE OF 3.8% OVER THE LAST 10 YEARS.

$2.5 Billion

$1.7 Billion

NORTHEAST ARKANSAS FEDERAL CREDIT UNION

is among the largest Arkansas-headquartered depository institutions in its market.

It has an EVER-EXPANDING FIELD OF MEMBERSHIP including over 350 select employee groups with little in common.

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2019 THE ARKANSAS BANKER

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EMERGING LEADERS

Chris Milum Receives Bill Holmes Leadership Award Batesville banker awarded for service to community and country

by Jeanni Brosius

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hris Milum, 33, has always had a passion for helping people, leadership and service.

On October 23, the Emerging Leaders Section of the Arkansas Bankers Association recognized Milum as the 2020 recipient of the Bill Holmes Leadership Award.

“I was shocked to be selected for this great award,” Milum said. “I know a lot of people in the banking community thought a lot of Mr. Holmes, so to receive an award in his honor was mind-blowing.”

This award is in honor of Bill Holmes, former Arkansas Bankers Association president, and it recognizes outstanding leadership among the emerging leaders in Arkansas banking.

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PHOTO: Chris was recently selected as the Army National Guard’s Company Grade Officer of the Year.

Photo courtesy of Milum.

THE ARKANSAS BANKER

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“His leadership has enabled the bank to meet the needs of our customers and the communities where we operate. Chris’ dedication to his profession, country and community can be seen through his work and work ethic.”

Because he enjoyed math and business classes in school, he said it helped shape his decision to direct his career toward banking. The 2006 Batesville High School graduate began interning at First Community Bank in Batesville during the summers of 2007 and 2008 while attending Arkansas State University.

When he and his wife, Kaylea, moved back to Batesville, he joined the First Community Bank team full time in September of 2015.

“Chris is a rising star in our institution, and he contributes to our success,” Boris Dover, FCB’s president and COO, said. “His leadership has enabled the bank to meet the needs of our customers and the communities where we operate. Chris’ dedication to his profession, country and community can be seen through his work and work ethic.”

The COVID-19 pandemic has spurred change in the banking industry. Congress passed the CARES 16

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ACT that included the Paycheck Protection Program (PPP) to help small businesses. Dover asked Milum to help head up a team to implement this program.

“I told them that I would be glad to help in any way I could,” Milum said.

He also considered it a bonus that he would be working with his mentor, Robb Roberts, who is senior vice president of commercial lending and special projects at FBC. “We quickly realized this program was not only going to help the businesses in our communities but also help the workers stay employed and put food on the table,” Milum said. “Being put in charge of a historic program was a huge undertaking. We had to develop a process, assemble a team and implement the program for all 27 branches across two states.”

Under Milum’s leadership, the team was able to help more than 900 businesses, totaling $70 million.

PHOTOS: (clockwise from bottom left) Associates at the bank presented Chris with the Bill Holmes Award during a ceremony at the bank.

First Community Bank Flag & Soda day.

Chris with his wife Kaylea and two children, Olivia and Luke.

Chris presented with the Army National Guard Company Grade Officer of the Year Award.

Photos courtesy of Milum.

It also helped give 10,234 employees a paycheck during such unprecedented times.

“This took countless hours of work from many great people,” Milum said. “One night I remember leaving the bank at around 12:30 in the morning from submitting PPP applications to the [Small Business Association].”

In addition to banking, Capt. Milum has also served in the Arkansas Army National Guard for eight years, and he is the Company Commander of the 224th Support Maintenance Company in Mountain Home. He also was chosen as the 2020 Army National Guard’s Grade Officer of the Year.

“I later found out that I won the federal version of this award, The Theodore Roosevelt Leadership Award for Company Grade Officers,” Milam said. “Both of these awards were presented for my time as a guardsman but also for my leadership in the community.”

Recently, he was nominated for the General Douglas MacArthur Leadership Award.

He and Kaylea have two children, Olivia, 5, and Luke, 3. Milum’s service also extends to the community where he serves on the Batesville School Board, Batesville Area Chamber of Commerce Board and Eagle Mountain Properties Association Board.

He is the treasurer for State Rep. Stu Smith (R-Batesville).

“I would like to one day become the chief lending officer, or maybe I might even get lucky enough to run my own bank one day,” Milum said about his banking career goals.

THE ARKANSAS BANKER

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EMERGING LEADERS

B R A N D O N

G E N T R Y

Hopes To Groom More

‘Emerging Leaders’

by Jeanni Brosius

B

randon Gentry has a passion for his community, and he says he loves that his job as a smalltown banker allows him to invest personally and professionally in his hometown of Wynne.

On October 22, at the Arkansas Bankers Association Emerging Leaders Leadership conference, Gentry was appointed as the 20202021 Emerging Leaders Section Council president.

“It has people who are like-minded and enjoy banking,” Gentry said about the Emerging Leaders. “I enjoy meeting other bankers and lenders in different markets. It also keeps me in contact with other leaders around the state.”

Gentry, who is the vice president of lending at Cross County Bank in Wynne, said his goals as new council president are to promote banking as a career option to college students and expand the membership numbers of the council.

“Our membership numbers are down,” Gentry said about the Emerging Leaders Council. “It was about 150 to 200 when I started. I want to come up with a plan to promote it. But with COVID, a lot of banks are still closed. … I would also like to start a grassroots program for kids who are still making career decisions.

“Bankers are different than they used to be. We all don’t fit in a box, and I want kids to see how cool it is and it’s not just about sitting behind a desk. I don’t want them to look past banking when planning a career.”

Because Cross County Bank still has its lobby closed to customers, Gentry said it makes it difficult to offer the personal customer service he believes in.

“It’s been a struggle not being able to meet face-to-face with our customers and doing everything over the phone,” Gentry said. “Making them sign applications in the parking lot isn’t very personal. I’ve been at least going to their front porch or meeting them at work at their car.”

Gentry said the doors of his bank will not open to the public for the near future, but he still wants the bank’s customers to feel appreciated.

Because Gentry is a 1997 graduate of Wynne High School, it was important to him to return to his hometown after he gained his education and garnered some banking experience.

After getting his bachelor of science degree in finance from Arkansas State University in 2004, he went to work at Twin City Bank (now Centennial Bank) in Little Rock for eight years. He said starting out as a teller there set him on the path of banking as a career.

“I was ready to get back home to Wynne,” Gentry said. “My current boss [David Dowd, president/CEO of Cross County Bank] had a bunch of ideas for me. He got me into the grad program at LSU and asked me if I would like to get involved in Emerging Leaders, and it was kind of a fit.”

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Gentry got his graduate degree from the Graduate School of Banking at Louisiana State University in 2014.

“Brandon is a real asset to the bank,” Dowd said. “He is very versatile in his skillset and has a good future here at the bank.”

One way Gentry serves his comPHOTO: Brandon Gentry (back left) coaches the munity is by coaching the bank-sponbank-sponsored little sored little league baseball team. Even league baseball team. though he doesn’t have any kids on Photo courtesy of Gentry. the team, he is a big baseball fan. He started coaching the four- and fiveyear-old team that had some of the bank employees’ kids. He has gradually moved up in age groups where he currently coaches the seven- and eight-year-old team.

“Some of the first kids I started with, I can now go watch them play on the bigger fields,” Gentry said with a smile.

Gentry also serves on the board of Technology Center of the Delta and is a former Cross County Chamber board member. He is also past chairman of Arkansas Bankers Association Group 1 and is a graduate of Leadership Arkansas. His career goals are to be the best banker he can be.

“I plan to stay local and hope there is an opportunity within this community for me,” Gentry said. “Maybe move into a more senior management position and keep pushing this bank forward for the next 30 or so years.”

CROSS COUNTY BANK Wynne Group 1

DEREK ECKELHOFF VICE PRESIDENT

FIRST SECURITY BANK Rogers Group 2

DUNCAN BELLINGRATH SECRETARY/TREASURER SIMMONS BANK Pine Bluff Group 3

ELS COUNCIL MEMBERS IAN BRYAN

REGGIE ENGLISH

SIMMONS BANK Russellville Group 2

MNB BANK Malvern Group 3

BROCK FERGUSON

AMBER MURPHY

CENTENNIAL BANK Jonesboro Group 1

FIRST FINANCIAL BANK El Dorado Group 3

BETH PRESLEY

CARRIE PRICE

ARVEST BANK Fort Smith Group 2

SOUTHERN BANCORP Arkadelphia Group 3

ZAC PRICE

TY TEAGUE

FIRST FINANCIAL BANK Harrisburg Group 1

FIRST NATIONAL BANK Little Rock Group 1

CHRISTIE TURNER FIRST STATE BANK Fayetteville Group 2

S E C T I O N

BRANDON GENTRY PRESIDENT

EMERGING LEADER

ELS EXECUTIVE COMMITTEE

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BANKER Q&A

FIVE VE minutes with...

Gary Kleck

EVP/Chief Lending Officer Legacy National Bank, Springdale, AR

Q. HOW DID YOU GET

STARTED IN BANKING?

A.

I started in banking in 1985 as an examiner for the Arkansas State Bank Department. Banking interested me in college and I got to know several examiners after graduating from college.

The State Bank Department seemed like a good avenue to gain a broad knowledge of banking rather quickly. I was able to meet many bankers across the state and those connections allowed me to enter into the private sector of banking in 1989.

Q. WHAT IS THE BEST

PART OF BEING A HOMETOWN BANKER?

A.

The best part of being a hometown banker is working for a bank where decisions are made locally by people that are well known in the community.

Legacy encourages us to be involved in the community, which has allowed me to get to know many business owners and community leaders. The most rewarding part of being a community banker is helping people realize financial dreams. A community bank allows

more latitude to provide quick decisions and flexible products.

Q. WHAT PIECE OF ADVICE

DO YOU WISH YOU HAD KNOWN WHEN YOU STARTED YOUR CAREER?

A.

Take the time to really get to know your customer and don’t be afraid to lead with advice. Many times bankers become order takers and try to provide products and services without much

“The best part of being a hometown banker is working for a bank where decisions are made locally by people that are well known in the community.

Legacy encourages us to be involved in the community, which has allowed me to get to know many business owners and community leaders.”

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time to really get to “knowTakeyourthe customer and don’t

be afraid to lead with advice.

Many times bankers become order takers and try to provide products and services without much thought as to what is best not only for the bank, but what is best for the customer.”

thought as to what is best not only for the bank, but what is best for the customer.

Some of the best long-term relationships I have are with customers that I have advised not to go through with a project.

Most customers truly want advice when considering financial services.

Q. WHAT CIVIC PROJECT

HAS YOUR BANK PARTICIPATED IN THAT TOUCHED YOU THE MOST?

A.

Legacy National Bank is a sponsor of Lee Elementary School in Springdale. Lee is located in an area that is designated as low to moderate income, therefore most students do not have the financial resources to purchase books and school supplies. Legacy helped the school purchase a van that is used as a mobile library during the summer. The mobile library will visit parts of town such as apartment complexes where many of the students live. The mobile library allows

students to check out books without physically having to go to the library.

Legacy associates are able to ride around in the mobile library and help distribute books weekly. The children are super excited when they see the mobile library in their neighborhood.

Legacy associates also go to Lee Elementary weekly to read to kindergarten classes. The students and teachers really appreciate the time Legacy associates are able to spend at school functions.

Q. IF YOU WERE AN

ACTION FIGURE, WHAT ACCESSORIES WOULD YOU BE SOLD WITH?

A.

If I were an action figure I would want to be Superman, however the accessory I would like to be sold with would be the Batmobile. I have a passion for cars and the Batmobile is the coolest action figure accessory out there.

THE ARKANSAS BANKER

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MARSHALL

SUSANNAH

NEW BANK COMMISSIONER

STANDS

READY to

Serve

by Marty Trieschmann photography by McCullough Expressions

Y

ou know those scenes in movies where the harried leading lady has some absurdly short amount of time to pack a suitcase and make it to the airport for some crucial trip?

That is not and will never be Susannah Marshall. If anything, the five-foot, two-inch redhead over prepares and is not caught off guard. It’s been that way almost her entire life. When she was young, she would get her suitcase ready for a trip that was months away. This personality trait of Marshall’s has helped her land one of the top jobs in her field.

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Susannah Marshall THE ARKANSAS BANKER • 23

THE NEWLY APPOINTED COMMISSIONER OF THE ARKANSAS STATE BANK DEPARTMENT IS INDEED PACKED AND READY TO LEAD THE 70-PERSON AGENCY THAT REGULATES OVER $123 BILLION IN BANK ASSETS. “NO TWO DAYS ARE THE SAME,” SHE SAYS, JUST 12 DAYS INTO THE JOB. SHE’S ALWAYS ON THE GO, AND THAT’S JUST THE WAY SHE LIKES IT.

“Even when I was a little girl and we would go to market for our family business, my mother and grandmother would laugh. I would have my bag packed six or eight weeks before we went out of town,” says Marshall. “I’ve spent my entire life with a suitcase packed.”

Since arriving at the bank department in 1995 as an examiner, Marshall has traveled all over the state she loves. After 25 years on the road, she knows everyone in every bank in the state, and they know her.

“If they have a problem or an issue, they know they can pick up the phone and call me. I want us to be a responsive and engaged partner,” she says of the agency she now leads. “That’s what we’re known for, and I want to continue.”

Marshall was officially appointed the 22nd com24

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“I WAS ALWAYS THERE TO KEEP THE BOOKS - WRITING STATEMENTS BY HAND, PAYING BILLS, BALANCING THE LEDGERS. THAT MUST HAVE PLANTED THE SEED FOR ME TO HAVE A CAREER IN BANKING.”

missioner by Governor Hutchinson on October 1, following the departure of her mentor, Candace Franks, who retired after four decades.

As is often the case with success stories like Marshall’s, the path to the top started with a rejection.

She was turned down the first time she applied to work at the bank department’s Jonesboro office.

“I got a declination letter in the mail, and it just broke my heart. By that time, I really knew that this was something I wanted to have an opportunity to explore,” she says.

Her father was with her when she got the bad news. “He looked at me and said, ‘Don’t let this be a defining moment. If you want it, keep going for it.’ There was a lot of tough love like that, but it was always meant with full support and encouragement.”

MISS NEWPORT Marshall is a small-town girl at heart. So much so that she returned to her hometown of Newport, Ark., to be sworn in. Family friend, Judge Harold Erwin, conducted the ceremony at the Jackson County Courthouse, and many of her high school classmates and friends were in attendance.

Marshall credits her upbringing in Newport for much of her success. “It was a magical place to grow up,” she says, of the town where Sam Walton also got his start.

The daughter of small business owners, Marshall learned from a young age to work hard. Her father owned a full-service gas station, and her mother owned an antiques and home décor shop in nearby Tuckerman.

“Luckily, I didn’t have to wash too many windows, but [my father] made sure I knew how to pump gas,” she says. “Funny, he never taught me how to change a tire, but he taught me to be fiercely independent.”

“I was also taught that if you didn’t work, it wasn’t going to get done, and you weren’t going to get paid.

Both of my parents were very hands-on, and I am that way also. They didn’t entrust their businesses to other people very often. It taught me that people should be able to look at you and see your commitment to whatever it is you do,” Marshall recalls.

Before she could even see over the counter, Marshall was entrusted with delivering the money bag from her parent’s businesses to the bank each day, grabbing a sucker before she left. The family businesses were open six to seven days a week, and she was expected to help.

“I was always there to keep the books - writing statements by hand, paying bills, balancing the ledgers. That must have planted the seed for me to have a career in banking,” she says.

Having witnessed the struggles of small business owners firsthand, Marshall is passionate about making sure banks have the support they need to create opportunities for Arkansas communities.

“I knew the struggles that my parents and grandparents had owning their own businesses, but I also knew the benefits that came from it. They had close relationships with their customers, and they understood what it meant to depend on other people for their livelihood,” says Marshall.

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PHOTOS: (from left) In pre-COVID days, State Bank Department employees sit for training.

Susannah Marshall in her early years at the department.

Photos courtesy of Marshall.

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MARSHALL GRADUATED FROM ASU ON A FRIDAY NIGHT IN 1995 AND STARTED WORK FULL-TIME AS A LOAN ASSISTANT FOR WORTHEN THE FOLLOWING MONDAY. COLLEGE AND CAREER

AGENCY DIRECTION

It was at Newport High School where Marshall zeroed in on accounting as her primary interest and made it her goal to pursue it in college.

“I had a phenomenal accounting teacher and just fell in love with it,” says Marshall.

Her first venture into professional banking began right after high school as a summer teller at the Bank of Tuckerman.

“I did that for several summers, and then it just organically happened,” she says.

As a student at Arkansas State University (ASU) in Jonesboro, she naturally gravitated to business classes.

“I enjoyed it, but I couldn’t wait to start working.”

In her last two years of college, Marshall worked part-time for Worthen National Bank in Newport while finishing her degree.

“I loved it,” says Marshall. “I loved being in the bank. I loved working.”

Marshall graduated from ASU on a Friday night in 1995 and started work full-time as a loan assistant for Worthen the following Monday.

“I had great people to work with and was learning a lot. A few months into it, I knew it was going to be my routine for the better part of my career,” she recalls.

Marshall caught the attention of the bank department again in 1995, just a year after she first applied and was turned down.

“I got a phone call and it was one of the gentlemen I had interviewed with asking if I was still interested in the bank department,” she remembers. “I said, ‘yes sir, I absolutely am.’ I reported to work on March 1, and I have never been happier. Every single day since then has been a joy. I’m lucky because most people don’t get that in life.”

Marshall has taken on progressively more responsibilities since joining the department as a commercial examiner, including the roles of financial analyst, financial analyst supervisor, and deputy bank commissioner for 13 years.

She is quick to credit Candace Franks for her guidance and mentoring along the way. “I was so proud and happy that she had 40 years at the same department. We were together every day, working hand-in-hand. I so value that time and the opportunity she gave me. I will forever be grateful to her for believing in me.

“I want to continue to build on the foundation that Commissioner Franks and previous commissioners laid. They’ve gotten us to this point. We’re

at the largest number of assets under supervision ever. We stand very strong in comparison to other states. I’m inheriting an agency in a good position and looking forward to building on it.”

Only a few weeks into the job, Marshall has already briefed her senior managers and staff that it’s business as usual at the department.

“There is nothing broken, and I’m not going to come in and try to fix anything. Certainly, there will be a domino effect internally and a backfilling of positions. I’ll do some realignment internally of duties and assignments, but outwardly, there are no anticipated changes.” She anticipates no state regulatory changes.

Stressing her close relationships with bank executives and staff around the state, Marshall says the state’s banks are “in great shape.”

The COVID-19 pandemic and the subsequent shock waves rolling through the American economy offers up a daunting challenge for banks and the banking system. Marshall doesn’t flinch at that challenge.

“I’m very proud of where we are today. Granted, I’m keeping an eye on what’s going on in the industry because we don’t know yet what that’s going to look like,” she says.

Short term, Marshall says banks must be able to meet the unprecedented needs of their borrowers and maintain strong levels of capital.

“I WANT TO CONTINUE TO BUILD ON THE FOUNDATION THAT COMMISSIONER FRANKS AND PREVIOUS COMMISSIONERS LAID. THEY’VE GOTTEN US TO THIS POINT. WE’RE AT THE LARGEST NUMBER OF ASSETS UNDER SUPERVISION EVER. WE STAND VERY STRONG IN COMPARISON TO OTHER STATES.” “We’ll be monitoring their earnings positions to make sure they’re not negatively impacted and asset quality doesn’t deteriorate to the point where there are unexpected losses. We have not had that in many years, even during the [2009] financial crisis, our banks fared very well. I’m hopeful that with the traditional levels of capital and earnings performance, and the fact that our banks are focused on the communities they serve and conservative overall in their approach, that they’ll be able to withstand this.

“This is an unprecedented event,” she adds. “We have no idea how long this could carry on, so that will really be the deciding factor as to how well our industry fares.”

WOMEN in Banking

CONFERENCE

1•28•2021 THURSDAY 9:00 AM - 12:00 PM Don’t miss this year’s virtual Women in Banking Conference! Gain insights on visionary leadership and strategic thinking. Get fresh ideas to better serve your bank, community, you, and your family, and create lasting friendships.

TO R E G I S T E R V I S I T W W W. A R K B A N K E R S . O R G

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INDUSTRY U P DAT E S

What’s in a Name?

The Arkansas UCC Lien Filing System Has a Thorny Issue

by Chad Cumming

H

ow many liens are filed on a specific person?

Who are those lien holders? What property has liens? Those are standard questions that are

asked repeatedly in the banking industry, whether it’s from the perspective of a debtor or a lender. There is a government office that exists, in part, to hold those records and answer those questions. However, a wrinkle in how that government office operates means the questions may not be answered as clearly as we have thought.

Most people are familiar with the process for placing a lien on property. To create a lien, a debtor must agree in writing to allow a lender to place a lien (liens are also known as “security interests”) on that debtor’s property. Records of liens are filed by lenders with the Arkansas Secretary of State’s office. That filing is known as a “UCC

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Financing Statement” and more commonly known as a “UCC.” The purpose of the UCC financing statement is to serve as a public notice of the lien. This public notice helps lenders determine what property a borrower has that can be used as collateral. What makes this notice vital is the fact that more than one lender can file a lien on the same collateral. Therefore, the other purpose of the UCC financing statement is to create a record of which lien is first in line.

This is called “priority.”

The mechanism for filing a financing statement and conducting a lien search in Arkansas is administered by the Arkansas Secretary of State. A financing statement is filed in the state where a debtor is located, meaning a financing statement filed on property of an Arkansas corporation is filed with the Arkansas Secretary of State. The search can be conducted most efficiently using their online search engine.

Searches are conducted using the debtor’s name. However, an issue with the state’s lien search engine means that some liens may not come up in a lien search. Needless to say, missed liens could present enormous problems for the banking industry.

To search the liens on a specific debtor, you search that debtor’s name in the Secretary of State’s search engine. Like many other search engines, the Arkansas Secretary of State’s UCC search engine weeds out certain words. Specifically, the search engine logic ignores certain “noise words.”

Those words include, but are not limited to, “corporation,” “company,” “LLC,” or even “limited liability.” Additionally, words such as “an” and symbols such as the ampersand (“&”) are ignored as well.

The problem, however, is that no broad search takes place. The Arkansas Secretary of State’s search engine requires the exact name of the debtor to be searched. Also, the Arkansas Secretary of State’s search engine does not consistently ignore “noise words.” Lien search accuracy can also be affected by whether the company name has “Inc.” instead of “Incorporated” in its name. This may mean an incomplete search. Here is an example: To help create an example, I filed a UCC financing statement on my company, “Chad L. Cumming, PLLC.” A search for “Chad” or “Chad Cumming” will show NO result.

A search for “Chad L. Cumming” or “Chad L. Cumming, PLLC” will also show the lien. However, Search for “Chad L. Cumming, PLLC, an Arkansas limited liability company” will show NO result.

And this works both ways. If the UCC Financing statement names the debtor “Chad L. Cumming, PLLC, an Arkansas limited liability company”, a lien search for “Chad L. Cumming, PLLC” will not show the UCC financing statement. That is because, although the search engine logic is supposed to ignore “limited liability company” as “noise words,” for some reason it is treating those words here as part of the name to be searched.

Conversations with two lenders’ underwriting offices and with a local company that conducts lien searches for the banking and legal industries have confirmed that searches in Arkansas can be problematic.

The Arkansas Bankers’ Association President Lorrie Trogden presented these concerns to staff at the Arkansas Secretary of State. While the staff acknowledged the issue, they said that a change in the search software is not likely to happen soon. The

“The search can be conducted most efficiently using their [Arkansas Secretary of State’s] online search engine. Searches are conducted using the debtor’s name. However, an issue with the state’s lien search engine means that some liens may not come up in a lien search. Needless to say, missed liens could present enormous problems for the banking industry.” cost would be so extensive that it would require seeking additional funds during a future legislative session.

If two lenders determine they have liens on the same collateral, Arkansas law determines which has priority over the other. The general rule is that the first UCC financing statement filed has priority. However, the concern here is if the Secretary of State’s search engine misses what appears to be the proper name of a debtor. A financing statement does not guarantee priority if the search logic fails to bring up the debtor’s correct name. A lender might be able to argue to a court that the search engine is problematic and that its UCC financing statement properly names a debtor, but it’s far better to avoid a fight than to win one. What, then, should be done?

When conducting a lien search, a lender or attorney would be wise to run multiple searches for the debtor. Searches should use variations of a debtor’s name to ensure a lien may not be missed. The cost per search is minimal when compared to potential liability.

One local lien search company has confirmed that they already take this approach.

When filing a UCC financing statement, a lender or attorney should use only the exact debtor’s name. If the debtor is an Arkansas entity, the lender should consider literally copying and pasting the debtor’s name off the articles of incorporation or articles of organization.

Lenders should also ensure that no additional words are added. For example, it’s not unheard of for a loan document to use the phrase “an Arkansas limited liability company” after the debtor’s name. That extra identifier might add clarity in a loan agreement, but its inclusion in a UCC financing statement will confuse the Secretary of State’s search engine.

Although this is a complication that lenders have to consider when underwriting a loan or when closing one, this is not a difficult problem to overcome. As always, additional care and due diligence can avoid any problems. With proper training to the underwriting and loan closing staff, lenders should be able to avoid any missed liens until the Secretary of State can modify its search engine logic.

ABOUT THE AUTHOR Chad Cumming is a shareholder and director with Gill Ragon Owen, P.A. His practice has focused on structuring and documenting corporate and municipal finance transactions, asset acquisitions and dispositions, corporate law, securities offerings, and real estate development.

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INDUSTRY U P DAT E S

B A N K I N G S U R V E Y A N A LY Z E S

Agricultural

Lending A

national survey of nearly 500 loan officers, managers and executives offers a deep dive into attitudes among agricultural lenders regarding farm liquidity, income and leverage as well as the impact of tariffs and trade, COVID-19 and the weather.

The American Bankers Association, in partnership with secondary market ag creditor Farmer Mac, conducted in August and September an exhaustive online poll of lender sentiments and conditions. The financial institutions represented ranged from banks less than $50 million in assets to those with more than $5 billion in assets.

One of the key takeaways suggests the agricultural economy and farm income remain stressed in 2020. The majority of agricultural lenders surveyed (79.2%) noted compression in farm profitability.

Top factors in agricultural lending circles include borrower liquidity, tariffs and trade, the weather, the impacts of the COVID-19 pandemic and the resulting economic downturn. Lenders across all regions and sizes also expressed concerns with credit quality and competition for loans.

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LENDERS’ TOP CONCERNS FOR PRODUCERS Liquidity (e.g., working capital)

Most Concern

Farm income levels Total leverage Uncertainty around tariffs & trade Weather COVID-19 spread Land rents Farm labor (e.g., cost or availability) Third party financing Water availability

0

1

2

3

4

5

6

7

8

9

10

Least Concern

Source: ABA-Farmer Mac Agricultural Lenders Survey August 2020

LOAN DEMAND, CREDIT QUALIT Y Credit quality and the deterioration of agricultural loans remains the No. 1 concern facing lenders in 2020. That sentiment was shared by respondents from institutions of all sizes and across all regions, the report noted. This includes lenders from the South - which includes Arkansas - where banks identified “competition with other lenders” as their primary concern the previous two years.

“As the farm economy continues to work through a prolonged downturn in the midst of an unprecedented, global economic dislocation, ag lenders remain primarily concerned with

the same three factors as last year: credit quality and the deterioration of agricultural loans (72.1% ranked it among their top 2 concerns), competition from other lenders (37.3%) and weak loan demand (25.5%),” the report said.

Among those competitors for loans, the majority of survey respondents (78.9%) cited the Farm Credit System (FCS) as their No. 1 competitor for agricultural loans. More than two-thirds of lenders (66.9%) ranked community banks within their top two competitors, followed by vendor financing (17.1%), regional banks (8.9%), and credit unions (8.0%).

TOP CONCERNS FACING AGRICULTURAL LENDERS Credit quality and ag loan deterioration

72%

Lender competition

37%

Weak loan demand

26%

Interest rate volatility

15% 33% 21%

17%

24%

Shrinking market due to farm consolidation

12%

26%

Lack of qualified ag lenders

13%

23%

Strong loan demand

12%

Ag lender consolidation 3rd party vendor service availability Shrinking market due to population decreases

20% 22%

12%

Farm income has been under pressure for several years due to trade wars, weather and struggling commodity prices. The pandemic added another layer of fraught for agricultural borrowers and their lenders. The survey noted that 43% of lenders had been asked by borrowers about hemp financing as a new crop option. Another one-third (33.9%) inquired about financing for renewable energy projects, slightly down from 36.8% in 2019.

Most interestingly, this year’s survey showed a very high number of borrowers inquiring about government payment programs. The poll reported 87.4% of respondents noting that ag borrowers’ reliance on government payments in 2020 increased.

Roughly 68% inquired about government programs like the Coronavirus Food Assistance Program (CFAP) and Market Facilitation Program (MFP), while 58% researched the Paycheck Protection Program.

About one out of five ag borrowers (18.1%) requested a loan modification in 2020 as a result of the pandemic and resulting economic downturn.

SHARE OF BORROWERS INQUIRING ABOUT GOVERNMENT PROGRAMS

5%

70% Relative Concern Ranking

1,2-High

3,4

5,6

7,8

9,10-Low

Source: ABA-Farmer Mac Agricultural Lenders Survey August 2020

60% 50% 40%

Other survey takeaways in the area of lending included: • More than four-in-five lenders report that farm debt grew during the past 12 months (82.2%), which is consistent with the September USDA farm sector income forecast that projects farm sector debt will rise 3.6% to $433.8 billion and ag real estate debt will rise 5.5% to $281.6 billion in 2020.

• Loan growth was generally reflected across all regions and asset sizes, though a third of lenders in the South said that farm debt held about the same in the last year. Despite increasing levels of farm debt, a majority of lenders say that the number of farmers expanding or shrinking operations stayed about the same in 2020 (62.0% and 66.7% respectively).

• Survey respondents generally expect higher ag loan delinquency rates heading into 2021 for both production (59.9%) and ag real estate (46.7%), though, a majority expect loan charge-off rates to stay about the same (61.5% and 70.4%, respectively).

30% 20% 10% 0%

Coronavirus Paycheck Economic Main Food Protection Injury Street Assistance Program Disaster Lending Program Loan Program or Market Facilitation Source: ABA-Farmer Mac Program Agricultural Lenders Survey August 2020

PANDEMIC & PAYMENTS The COVID-19 pandemic and subsequent economic downturn played a significant role in uncertainty regarding agricultural loans, according to the survey.

“There is modest evidence that banks that have been more heavily impacted by COVID-19 have lower profit expectations,” the report said. “Many institutions reported modifying ag borrower loans due to either the coronavirus or the resulting economic turbulence. Of banks who indicated that they modified at least a quarter of their agricultural loans, average profit expectations were 46% for 2020. For banks that modified less than 10% of their ag loans as a result of the pandemic, expectations were just over 53%.”

Beyond inquiries, lenders also noted an increasing reliance on these government payments, particularly CFAP and MFP. “Lenders expect this trend to continue next year: one in five expect that borrowers’ current reliance will stay about the same in 2021, while 77% expect reliance to rise,” the report noted.

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Veteran + Banker

Duty

& Honor 32

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For the men and women who have served our country in war or peace, there is a special place in society. They have protected our borders and helped spread peace, safety, and democracy around the world. Military service has created leaders in our communities and businesses. We honor these men and women who have contributed to America’s defense, helped strengthen our cities and towns, and brought their talents to the state’s banks.

MEET A FEW OF THIS YEAR’S FEATURED BANKER-VETERANS.

Photo courtesy of the U.S. Army and by Tech. Sgt. Erik Gudmundson

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Veteran + Banker

Photo courtesy of the U.S. Army and by Senior Airman Rylan Albright

James

LYLE

F

amily service inspired James Lyle to enlist in the U.S. Army. The Monticello native had grandfathers who often shared their war experiences and stories, which embedded a curiosity in him to explore the option.

McGehee Bank

VP Lending/Information Security Officer M O N T I C E L LO

U.S. Army

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“The pride that they had about being in the military was something that always was so intriguing to me,” Lyle said.

Lyle, 38, had quite a tour of duty when he was deployed to Baghdad during Operation Iraqi Freedom in 2008. He was part of a security detail for a battalion commander in what was known as “I.E.D. Alley,” one of the most dangerous combat zones during the Iraqi operation. “I.E.D.” is the acronym for “improvised explosive device” and it was the primary weapon of choice for members of the Iraqi resistance.

“That was how they fought. You wouldn’t very often get into a gunfight one-on-one with them. They would hide, they would use car bombs. They would use dead carcasses on the side of the road.

They would hide different munitions in them, and then explode them, maybe with a cell phone or something while they hid, or different things like that,” he recalled.

Photo courtesy of the U.S. Army and by Army Sgt. Henry Villarama

Photos courtesy of Lyle

To say Lyle was in one of the world’s hot spots is an understatement; however, he got to witness some of the most stirring moments in Iraq’s world history. Part of his duties included escorting his battalion commander everywhere - throughout raids but also to different peacekeeping events. He remembers watching Iraqis vote for the first time in Baghdad, and he was a part of numerous ceremonies where businesses would re-open. While inspiring, these circumstances also were ripe targets for those who wished to undermine the freedom movement.

“It was such a time of people feeling oppressed, that when something new would happen, like something would open up, it was such a big deal. Even if it was a gas station, there was such a big celebration,” he said. “It was such a big deal when certain things happened, our adversaries knew that, and they wanted to spoil that essentially.

So, there would be attacks a lot of times on these new openings, these celebrations. They wanted people to be in fear. They wanted people to not think that things were getting better.”

While his grandfathers may have influenced his military service, his father was part inspiration for a banking career. Lyle’s father was a long-time loan officer and eventually president of a bank. After college and obtaining a degree in computer information systems, Lyle found an opening at McGehee Bank for a network administrator.

[Lyle] was part of a security detail for a battalion commander in what was known as “I.E.D. Alley,” one of the most dangerous combat zones during the Iraqi operation.

“I never, never thought that I would end up in banking,” he joked.

Lyle advanced to information security officer, but along the way about three years ago he was encouraged to develop his management skills. He graduated from the LSU School of Banking and was approached about getting into the lending side of the business.

“Needless to say, it was a career change... I kind of worked my way all the way through the loan department here, just trying to learn every aspect of every station that we have and I’ve settled my way into a loan officer position. I’m loving it. I’m loving life.

It’s a really good fit for me,” Lyle said.

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Photo courtesy of the U.S. Army and by Senior Airman Rylan Albright

Chasa

CROCKETT

M First Security Bank Teller Manager S P R I N G DA L E

U.S. Army

E-5 SERGEANT

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ilitary service is generational for banker Chasa Crockett.

Her grandfather retired from the U.S. Navy in 1975 and hearing his stories of survival and lost colleagues when she was young inspired her to pay homage.

“I wanted to do my part for my country and repay my debt for the freedoms I had growing up,” Crockett said. “I didn’t just want to exist, I wanted to make a difference. I wanted to live a life with trials and tribulations, experiences good and bad.”

Crockett served in a number of hot spots around the world during her 12-year military career. She had tours of duty in the Persian Gulf, the Bosnian War, Operation Enduring Freedom, and Operation Iraqi Freedom. During her service, she earned an Army Service Ribbon along with the National Defense Service Medal.

Her background with the military police special operations made her an expert in sharpshooting, a pastime Crockett still enjoys today.

Photo courtesy of the U.S. Army and by Staff Sgt. Andrew Smith

Chasa

CROCKETT Photos courtesy of Crockett

“The most rewarding experience was learning how to shoot and maintain different types of weapons from guns to chemical weapons,” she said. “I gained advanced knowledge of each and enjoy going to gun ranges to stay proficient. Shooting is one of my favorite pastimes.”

Most memorably, Crockett survived the tryouts for a position with S.O.R.T (Special Operations Reaction Team). She said it was some of the most extensive training “mentally, physically and emotionally that I have ever endured but being accepted to the team was so worth the challenge.”

All of that training and experience has benefitted her in her banking career with First Security Bank.

“I hold myself to a higher standard of conduct now than I did before serving in the Army. I learned professionalism, respect, discipline, punctuality, attention to detail and responsibility. I use each of these attributes daily and am almost 14 years strong as a banker today,” she said.

“I wanted to do my part for my country ... I didn’t just want to exist, I wanted to make a difference. I wanted to live a life with trials and tribulations, experiences good and bad.”

And Crockett adds that you won’t find a stronger patriot than this Springdale bank employee.

“Patriotism to me means to assist, protect, and defend my country against all enemies - foreign and domestic - whether you are in the service or a civilian. Standing for our flag as it stands for us and for our freedom. I feel it is a responsibility of each individual to remember why the flag is our symbol of freedom,” she said.

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Photo courtesy of the U.S. Army and by Senior Airman Rylan Albright

John

WOLFORD

J

ohn Wolford’s world tour took him across the U.S. and overseas, but he eventually landed in Jacksonville, Ark. at the air base from where he retired.

First Arkansas Bank & Trust Assistant VP – Security Officer JAC K S O N V I L L E

U.S. Air Force

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Growing up in Ohio and Virginia, members of his family, especially his father, told stories of their military service that inspired him to consider a career in the armed forces.

“I grew up listening to my dad and my uncles who served in World War II, and things they had seen and done and the way they felt and just how patriotic they were,” Wolford recalled. “My dad often said that one of the proudest days of his life was when he marched into Rome with the Fifth Army and liberated Rome.”

Though the romanticism of military service intrigued him, his mother talked him out of enlisting right out of high school. He was 24 before he entered the U.S. Air Force.

He spent 20 years working on security details in King Salmon, Alaska, Cheyenne, Wyoming, and Osan Air Base in Korea. His final years of service were in Central Arkansas at the Little Rock Air Force base.

“I used to laughingly tell people I stayed in the military for 20 years because somebody was always telling me what to wear, where to go, when to be there, and they kept me fed and it was a

Photo courtesy of the U.S. Army and by Tech. Sgt. Michael R. Holzworth

Photos courtesy of Wolford

good life,” Wolford joked. “So, I didn’t really know what I wanted to do when I got out.”

In retirement, he volunteered in school-related activities in Jacksonville and discovered that First Arkansas Bank & Trust was looking for a security officer and purchasing officer.

“I had some time, as all retirees get when they first get out, they get a couple of months’ worth of time, and I was kind of looking around trying to figure it all out,” he said. “I came in and applied, and Mr. [Larry] Wilson kind of recognized me from being around town doing volunteer work, and I had a pretty good reputation in the Air Force and around town, and here I am 16 years later.”

Wolford’s duties have certainly been altered since the COVID-19 pandemic kicked in. The bank’s main lobby has been closed to through traffic, but there is still plenty of security execution to consider.

Jacksonville is a military town, perhaps the most military-friendly city in Arkansas, with the base’s big presence. It has helped create a diversity of citizens who interact in and out of the base’s campus. Wolford said that inclusion is one of the best parts of working at FAB&T and was one of the most satisfying aspects of his military service.

“I definitely loved the people and the sense of purpose. I met what I feel are some of the greatest people in the world in the mili-

“I met what I feel are some of the greatest people in the world in the military, and most of us shared the common bond of wanting to see this country stay safe and free, from all backgrounds.” tary, and most of us shared the common bond of wanting to see this country stay safe and free, from all backgrounds,” Wolford said.

“The military more than anywhere else and more than anything else in this country is a melting pot. You meet fascinating people from all walks of life. I met guys with PhDs that they’d worked on while they were in the military, and I met guys just like me, blue-collar background and couldn’t quite figure out what to do and what they wanted to do. But, they wanted to serve their country, they wanted to do something worthwhile, and there we all were,” he said.

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Photo courtesy of the U.S. Army and by Senior Airman Rylan Albright

Janice

WILLIAMS

J

anice Williams has traveled to some of the most dangerous places on Earth, which makes returning to her home in Helena-West Helena all the more comforting.

Southern Bancorp

Regional Teller Director H E L E N A- W E S T H E L E N A

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Her work in the National Guard has taken her on tours to Guantanamo Bay and Afghanistan. She’s also helped restore communities in the aftermath of Hurricane Katrina.

“My job itself is the military police,” said Williams, who is still active duty. She’s been around some of the world’s most threatening terrorists at Guantanamo Bay and performed detainee operations in Afghan prisons helping train that country’s police force to take over the facility when her mission ended.

In her banking career, Williams leads a troop of tellers at Southern Bancorp. It’s a total departure from the environments to which her military service exposed her. That said, Williams

Photo courtesy of the U.S. Army and by Staff Sgt. Dallas Edwards

Photos courtesy of Williams

has developed important leadership skills that have transferred to both careers.

“The military service has helped me because I’m able to look at it from a different aspect. I don’t act quickly. It taught me to strategize, to remember there’s always two sides to a story, don’t jump to conclusions,” she said. “You can do some damage by making a quick decision sometimes. Sometimes you have to, but the fact is, strategically I learned that through the military and it has helped me here.”

Her bank family is full of diversity, just like her military family.

“Right now, I have a diversified group of girls who work for me -- age-wise, backgrounds, single parent, married, I have it all,” Williams noted. “The military has taught me the strength of diversity.”

For all of her professional working experiences and her 24-year military career, Williams acknowledges that the initial motivation for getting into the National Guard still pushes her today.

“My inspiration was just the adventure. The military gave me the prospect to actually get the adventure and still go to school, which led to my career... So it started off with just the adventure.”

“The military service has helped me because I’m able to look at [my job] from a different aspect. I don’t act quickly. It taught me to strategize, to remember there’s always two sides to a story, don’t jump to conclusions.”

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Photo courtesy of the U.S. Army and by Senior Airman Rylan Albright

David

S. WHITE

G

.I. Joe, a father and uncle who served, and a rebirth of patriotism during the Reagan presidency motivated David White to enlist in the Army.

Arvest Bank

Contact Center Supervisor FORT SMITH

U.S. Army Reserve SPECIALIST E-4

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“I always had a military drive. I mean, I just grew up red, white, and blue between my family’s mindset and the cartoons and life that I had led,” White said of his childhood.

Raised in Roland, Okla. across the Arkansas River from Fort Smith, White’s military service sent him sprawling across the country. He was stationed at Fort Leonard Wood, Mo. for basic training and Fort Lee, Va. for advance training. His final station brought him back near home to Fort Chaffee in Fort Smith, Ark. “The most rewarding personal aspect was just getting to see places I would never get to see otherwise. But the most rewarding aspect of my military experience was the pride of knowing that

Photo courtesy of the U.S. Army and by Sgt. 1st Class Michel Sauret

Photos courtesy of White

I could pass the training of being a soldier and the confidence it instilled in me,” he said.

White, 44, finished his service as a supply specialist at Fort Chaffee. He did a stint with Whirlpool before it closed. Now, White oversees a customer contact center for Arvest Bank. His military service prepared him for his current role in management.

“I remember a sergeant told me once to never ask someone to do what you’re not willing to do, or doing, or have done. So I have always used that as a philosophy, that I’m not above any task,” he said.

Another sergeant once told White about the difference between a leader and a commander.

“A commander will tell someone what to do and a leader will show someone what to do,” White recalled.

Though he never planned for a career in banking, White knows his service to country prepared him for where he is today.

“I feel like the military prepared me to be not necessarily a better banker, but definitely a better manager with the bank. And, that mostly helps me develop better bankers in the end,” he said.

“I remember a sergeant told me once to never ask someone to do what you’re not willing to do, or doing, or have done. So I have always used that as a philosophy, that I’m not above any task.”

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NEWS & MOVES

ARVEST BANK’S KEVIN SABIN, EAGLE BANK’S CATHY OWEN Kevin Sabin President/CEO

Cathy Owen Chairman

A

rvest Bank president and CEO Kevin Sabin and Eagle Bank Chairman Cathy Owen have been elected to the American Bankers Association (ABA) board of directors.

Announced as nominees in September, Sabin and Owen were elected during ABA’s virtual annual meeting in late October. They will serve three-year terms from 2021-2023, including committee work as established by ABA bylaws.

The ABA board of directors is made up of 20 bankers from across the U.S. The organization is considered the voice of the banking industry and its board members are charged with guiding its public policy on industry issues, serving as advocates and consensus-builders, and overseeing the association’s

ELECTED TO ABA BOARD OF DIRECTORS fiscal operations, among other responsibilities. The board is constructed to reflect ABA’s diverse membership in terms of asset size, geography, business models and demographics.

Owen, the only female to have served as chairman of the Arkansas Bankers Association, also serves as Chairman & CEO of State Holding Company, Manager of One Financial Centre, President of Your Global Source Partner, and is on the board of Hastings Holdings.

“The American Bankers Association has been an important voice and advocate for banks in the U.S. throughout my career and I’m excited to have an opportunity to contribute to its efforts in the future, especially as it helps America’s banks navigate these challenging times,” Sabin said.

“THE AMERICAN BANKERS ASSOCIATION HAS BEEN AN IMPORTANT VOICE AND ADVOCATE FOR BANKS IN THE U.S. THROUGHOUT MY CAREER AND I’M EXCITED TO HAVE AN OPPORTUNITY TO CONTRIBUTE TO ITS EFFORTS IN THE FUTURE.”

FIRST COMMUNITY BANK

WINS EPCOR AWARD FOR INNOVATION

F

irst Community Bank has been awarded the 2020 David P. DeMarea Payments Innovation Award by EPCOR (Electronic Payments Core of Knowledge), a not-for-profit payments association, in recognition of their procedures and programs to help the bank detect ACH (automated clearing house) abnormalities and prevent fraud.

The David P. DeMarea Payments Innovation Award is presented to an individual or organization that has implemented innovative payments or risk management solutions. Recipients of the award are recognized by the EPCOR Hall of Fame and are named after the late David P. DeMarea, longstand-

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ing EPCOR director and senior vice president of Arvest bank operations.

“We are so honored to receive the 2020 David DeMarea Payments Innovation Award,” said Amber Bass, senior vice president, business and electronic solutions at First Community Bank. “We’ve made great strides in the last few years to improve our fraud protection and customer service. Winning this award is a huge testament to our team and to the future of our business.”

The bank was recognized for the prestigious award at the EPCOR Payments Conference 2020-virtual edition held on October 27-28, 2020.

“WE’VE MADE GREAT STRIDES IN THE LAST FEW YEARS TO IMPROVE OUR FRAUD PROTECTION AND CUSTOMER SERVICE.”

SIMMONS BANK

DONATES $25,000 TO EL DORADO UAMS REGIONAL CAMPUS

S

immons Bank presented $25,000 to University of Arkansas for Medical Sciences (UAMS) representatives to help fund the coming UAMS regional campus in El Dorado. The campus represents a joint effort by the Medical Center of South Arkansas (MCSA) and UAMS to increase medical access throughout south Arkansas by training primary care physicians to serve Union County.

“The arrival of the UAMS regional campus in El Dorado will represent a very special moment for our community, bringing benefits that range from enhanced medical services and education to boosted economic opportunity,” said Rob Robinson, Simmons Bank’s El Dorado community president. “We at Simmons feel honored to support a program that will positively impact so many individuals and families.”

The UAMS regional campus in El Dorado hopes to open its clinic in January 2022 and begin training medical college graduates to become family medicine residents by July 2023. UAMS has committed to building its ninth regional campus in El Dorado.

The majority of family practice physicians in rural areas of the state are trained at one of UAMS’ eight regional campuses. Creating a regional campus will provide an influx of physicians and health care professionals to create a sustainable educational and training pipeline and make it easier to maintain consistent levels of care.

Regional Campuses, originally called Area Health Education Centers (AHECs), started in 1973 through the efforts of then-Gov. Dale Bumpers, the Arkansas Legislature and UAMS to train medical residents and provide clinical care and health education services around the state. Its eight regional campuses are located in Batesville, Fayetteville, Fort Smith, Helena-West Helena, Jonesboro, Magnolia, Pine Bluff and Texarkana.

Simmons’ donation to the UAMS Regional Program follows on the heels of its $1 million gift to support the Jefferson County Health Unit and the Veteran’s Services Office in October and a $1 million gift to Arkansas Children’s in May to support construction of a new pediatric clinic in Pine Bluff.

“THE ARRIVAL OF THE UAMS REGIONAL CAMPUS IN EL DORADO WILL REPRESENT A VERY SPECIAL MOMENT FOR OUR COMMUNITY, BRINGING BENEFITS THAT RANGE FROM ENHANCED MEDICAL SERVICES AND EDUCATION TO BOOSTED ECONOMIC OPPORTUNITY.”

PARTNERS BANK

ANNOUNCES NEW BRANCH, TEAM EXPANSION

P Carina Maqueda VP, Loan Officer

artners Bank, headquartered in historic downtown Helena, announced the opening of a new branch location in Johnson Square on Johnson Mill Boulevard in Springdale.

Micah Thompson, EVP, Regional President and Chief Credit Officer, has hired three new staff members to serve customers in the area. They include Carina Maqueda, VP, Loan Officer; Jenny Ross, Loan

Assistant; and Woody Smith. Consumer retail operations as well as lending activities will be available.

Partners Bank has been operating six full-service branches in Phillips, Cross, and Crittenden Counties prior to entering into the Northwest Arkansas market. The bank also serves customers in Northeast Arkansas, Tennessee, and North Mississippi. Partners Bank reports assets of over $318 million.

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NEWS & MOVES

CITIZENS BANK

OPENS STATE-OF-THE-ART CENTER IN MONTICELLO

C

itizens Bank has completed construction and opened its new state-of-the-art financial center located at 236 U.S. Highway 425 North in Monticello. The new center will consolidate its previous branches in Monticello and brings the bank’s staff into one location. A grand opening celebration for the facility was held on Thursday, Nov. 5.

“We will provide a robust, full-service banking in this modern facility,” said Chris Lampkin, Southeast Market President for Citizens Bank. “However, from the moment you walk in the door of this unique financial center, you will experience a warm, welcoming, relaxed atmosphere that transcends any tradi-

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tional banking environment you have ever known.”

“Citizens Bank made such a significant investment in this market because of our confidence in the future of Monticello and Drew County, and in the leadership of Chris Lampkin and his talented team of professionals to support its growth,” said Phil Baldwin, Chief Executive Officer.

The new Citizens Bank facility at Monticello encompasses 6,000 square feet of space, which also includes a large community room that will be available for use by the public and organizations. The architecturally distinctive building was designed by CADM Architecture of El Dorado and Magnolia.

“... FROM THE MOMENT YOU WALK IN THE DOOR OF THIS UNIQUE FINANCIAL CENTER, YOU WILL EXPERIENCE A WARM, WELCOMING, RELAXED ATMOSPHERE THAT TRANSCENDS ANY TRADITIONAL BANKING ENVIRONMENT YOU HAVE EVER KNOWN.”

UNION BANK OF MENA

HIRES TWO VPS FOR LENDING

K

Kyle Cannon VP, Lending

evin Williams, President of Union Bank of Mena, announced that Tim Clark has been hired as Vice President of Lending. Clark will handle all types of lending with emphasis in commercial and agriculture loans.

Clark, who has 17 years of experience in banking was previously Market President and Loan Officer for a local financial institution where was named Lender of The Year in 2016 and attained Outstanding Sales Achievement in 2019. He has previous experience with Union Bank of Mena, serving as Branch Manager and Loan Officer from 2008 to 2013. A graduate

of Henderson State University in Arkadelphia, Clark also attended the Barrett School of Banking.

Williams also announced that Kyle Cannon has been promoted to Vice President of Lending. Cannon, who has been with the Union Bank of Mena for eight years, was previously Assistant Vice President and also serves as Branch Manager of the bank’s Wickes location.

Cannon serves on the Mena School Board and the Arkansas School Boards Association. He also serves on the Church Council at Christ Community Fellowship in Mena.

FIRST COMMUNITY BANK

HIRES FIVE TO MORTGAGE TEAM IN JONESBORO

F

irst Community Bank announced the addition of five new members to its mortgage team in Jonesboro. They are temporarily working out of the Southwest Drive location, but will soon be stationed at a new mortgage lending center located at 1823 Grant Avenue in Jonesboro.

Katie Ingram has been hired as vice president, secondary mortgage originator. Courtney Young has been hired as secondary mortgage processor. Jennifer Harris has been hired as secondary mortgage processor. Denise Klingensmith has been hired as vice president, secondary mortgage underwriter. Amber Agee has been hired as secondary mortgage closer. Karagon

Prestidge, secondary mortgage processor, joined First Community Bank as a teller in April of 2019 before moving to the mortgage department in August 2020.

Jelena Veteto is vice president and regional manager for the Jonesboro region. She has led First Community Bank’s secondary market division in the Jonesboro area since 2008.

“Each member of the mortgage team brings an extensive skill set and impressive banking background,” said Allen Williams, market president, Jonesboro region. “I feel that these individuals will be excellent additions to our growing mortgage lending team in the Jonesboro region.”

“EACH MEMBER OF THE MORTGAGE TEAM BRINGS AN EXTENSIVE SKILL SET AND IMPRESSIVE BANKING BACKGROUND.”

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NEWS & MOVES ARVEST BANK

HIRES TRUST OFFICER FOR NEA MARKET

A

David Martin Trust Officer

rvest Bank in Jonesboro has hired David Martin as trust officer for the bank’s Northeast Arkansas market. In this role, Martin will assist customers in the development of retirement strategies and plans, as well as estate planning. He has 30 years of experience in the retirement and estate planning industry.

“David has been an integral resource for numerous customers who are seeking professional insight in planning their long-term financial portfolios,” said Kevin Hufstedler, community bank president of Arvest Bank in Northeast Arkansas. “We value his experience and we are confident that our customers will benefit greatly from the work he will do for them.”

Martin earned a bachelor’s degree in accountancy from Mississippi State University and a master’s degree in financial services from American College. He is a certified public accountant (CPA), a certified financial planner (CFP) and a chartered financial consultant (ChFC). Martin will be based in Jonesboro but will serve clients across Northeast Arkansas.

“DAVID HAS BEEN AN INTEGRAL RESOURCE FOR NUMEROUS CUSTOMERS WHO ARE SEEKING PROFESSIONAL INSIGHT IN PLANNING THEIR LONG-TERM FINANCIAL PORTFOLIOS.”

DUSTIN WALKER

JOINS CORNERSTONE BANK AS VP OF LENDING

C

Dustin Walker, Vice President/Loan Officer

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ornerstone Bank announced the addition of Dustin Walker as Vice President and Loan Officer. He will work at the bank’s Berryville office located at 907 West Trimble.

Walker is a tenured banker in Carroll County having spent the past 17 years within the industry. He has served in numerous roles during his career and will focus on both personal and business banking relationships in his new capacity at Cornerstone Bank.

“We are excited to have the opportunity to add someone of Dustin’s caliber and community respect to our growing bank. His almost twenty years of experience in the industry will prove to be invaluable as we continue to serve the Carroll County market. We consider ourselves fortunate to strengthen our already outstanding team and look forward to Dustin’s affiliation with our company,” said James Myatt, Cornerstone Bank Market President.

EAGLE BANK

ADDS SMOTHERMAN AS AREA MANAGER

J Katerina Smotherman Area Manager

eff Lynch, President and CEO of Eagle Bank & Trust has announced that Katerina Smotherman has joined the Bank as Area Manager for the Northern Market. She brings over two decades of banking experience including bank management and consumer lending.

Smotherman will provide leadership for retail sales and business development in the Northern Market that includes locations for Heber Springs, Rose Bud, Quitman, Greers Ferry, Fairfield Bay and Drasco, while also being actively involved in the community of Cleburne County.

FIRST SERVICE BANK

NAMES ZIMMERMAN AS VP OF RETAIL BANKING

F

irst Service Bank named Justin Zimmerman as Vice President of Retail Banking. His responsibilities will include coaching and leading branch managers to provide exceptional service.

“Justin is the perfect candidate to be named Vice President of Retail Banking at First Service Bank,” said Robin Hackett, Chief Operations Officer. “The addition of this new position will help strengthen our relationship with our branch man-

agers and enhance the customer’s experience making both stronger.”

With over 20 years of banking experience, Zimmerman is a native of St. Vincent (Conway County) and is a graduate of UACCM with an associate degree in Banking & Finance as well as many accreditations throughout the Arkansas Bankers Association. He currently serves on the UACCM Accounting Advisory Committee.

SMOTHERMAN WILL PROVIDE LEADERSHIP FOR RETAIL SALES AND BUSINESS DEVELOPMENT IN THE NORTHERN MARKET.

“THE ADDITION OF THIS NEW POSITION WILL HELP STRENGTHEN OUR RELATIONSHIP WITH OUR BRANCH MANAGERS AND ENHANCE THE CUSTOMER’S EXPERIENCE MAKING BOTH STRONGER.”

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