The Arkansas Banker Spring 2020

Spring 2020 • Volume CIV, No. 9

Spring 2020 • Volume CIV, No. 9

COLUMNS

President’s Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Lorrie Trogden

Chairman’s Column. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Rob Robinson

Washington Update . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Rob Nichols

2020 Annual ABA Convention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Envisioning the Future

DEPARTMENTS AmBA Training, Live Events, & Webinars. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2020 Annual Convention. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Member News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Banker News & Moves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

ARTICLES Clarity for Banks Serving the Hemp Industry . . . . . . . . . . . . . . . . . . . . . . . 15 Why Are Mega Credit Unions Tax Exempt?. . . . . . . . . . . . . . . . . . . . . . . . . . 18 Death, Taxes, and the End of LIBOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Arkansas Treasury Transparency Auction. . . . . . . . . . . 36 The Arkansas Banker Online Join us at www.arkbankers.org to read and share statewide banking news!

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.

Arkansas Bankers Association Staff Lorrie Trogden, President/CEO • Carla Brinkley, VP/Controller • Kami T. Coleman, VP/Professional Development • Jessica Sahene, Technology & Marketing Director • Michael Spigner, Communications Director

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President’s Message Lorrie Trogden | President & CEO Arkansas Bankers Association

• This trend will continue to spread with or without federal legislation: ballot initiatives authorizing medical or recreational marijuana use are expected in 10 states this year, and several state legislatures are actively considering the issue as well.

• The SAFE Banking Act does not increase access to the marijuana industry, but instead addresses the reality of the existing marketplaces in the 33 states that have authorized some form of marijuana use.

The theme of the column this month is federal legislation, specifically the SAFE Banking Act. If you attended one of the three Group meetings in February, you heard me, Chairman Rob Robinson, and GRAC Committee Chair Jim Taylor speak on this topic. It is vital to our industry that we keep our congressional delegation informed about this piece of legislation. I also want to take a moment to thank our three Group Chairmen, Mike Donnell, Brandon Gentry, and Craig Manatt, they did an outstanding job planning these meetings. The bar has been set high for next year!

SAFE Banking Act – I’ve spoken and written about this bill many times, but we are at a critical stage of getting a hearing for the SAFE Act in the Senate Banking Committee. Arkansas Senator Tom Cotton is a member of that committee, and all of us need to let him know how important this issue is. Several of you have contacted him and are getting the same response: “I support the rights of states and local governments to self-regulate, as specified by the Tenth Amendment. Furthermore, I believe that all Americans, particularly aspiring entrepreneurs and small business owners, should have access to financial services and institutions which may help their efforts succeed.

At the same time, I have significant concerns that normalizing and increasing the availability of marijuana through action at the federal level will be detrimental to public health and safety.” If you receive this response, I urge you to reply and point out: • Marijuana is being “normalized” through the will of the voters, with 33 states (including Arkansas) having approved the use of marijuana for medical purposes through direct referendum.

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• Blocking this legislation serves only to ignore the real public safety, tax, and regulatory challenges on the ground in our community and will do nothing to help address or diminish the potential public health consequences of marijuana. In fact, advancing a focused bipartisan bill that addresses some of the practical consequences of the divide between state and federal law in the banking space arguably demonstrates the leadership that is needed in order to advance similar focused federal efforts examining public health concerns.

• We encourage the Banking Committee to focus on solving the pieces of this admittedly complex puzzle that fall within their jurisdiction.

We will talk more about this bill and other federal legislation and regulation at our Annual Convention, April 7-9. We are thrilled to have FDIC Chairman Jelena McWilliams speaking, which will include a Q&A session; so have your questions ready. We will also hear from James Ballentine, the Executive Vice President of Congressional Relations and Public Affairs for the American Bankers Association. It’s not all work; we will also be injecting a little fun with Bowling for BankPAC and a putt-putt golf course at the opening reception. A separate registration is required for bowling, and you can register as an individual, teams are not required. I encourage you to attend these can’t miss events!

On the subject of the ABA BankPAC, it’s time for 2020 contributions. We are in an election cycle, and the PAC has been doing what it was designed for, contributing to campaigns for candidates that understand the economic impact that banks have on local and state economies, and are friends of our industry.

Contributing to BankPAC is one of the most important investments you can make in our industry, it is the key to advancing banking and driving forward industry change. We have both a federal PAC and a state PAC, and an outline of recommended contributions and regulations can be found on the PAC brochure located on our website and at all of our events. We recognize our BankPAC members in the Arkansas Banker mag-

azine as well as at all of our conferences and the Annual Convention. We truly appreciate you! If you would like Chairman Rob Robinson and/or me to come to your bank and talk about BankPAC, or attend a board meeting, we are happy to hit the road for a visit.

I leave you with this – advocacy is the number one benefit provided by the Arkansas Bankers Association. For more than 100 years, we have been actively involved in shaping the issues that impact industry success. We understand bankers’ concerns about the legislative and regulatory issues affecting bank operations, and work year-round with elected officials on state and national banking issues that protect our industry and our members. I implore you to participate in our efforts by traveling to D.C. with us, advocating with your elected officials about issues we face, educating your bank employees about the importance of participating in advocacy efforts, and contributing to the ABA BankPAC. Thank you to all of you who participate, you are truly the voice of the banking industry!

Three Things to Remember This Month

ABA OFFICERS Rob Robinson, IV, Chairman Simmons Bank, El Dorado

Jonathan Harrell, Chairman-Elect Generations Bank, Rogers

Jim Cargill, Vice Chairman Arvest Bank, Little Rock

Tom Grumbles, Treasurer First Service Bank, Greenbrier

Cathy Owen, Past Chairman Eagle Bank & Trust, Little Rock

Lorrie Trogden, President & CEO

Arkansas Bankers Association, Little Rock

BOARD OF DIRECTORS Johnny Adams, Conway Craig Attwood, Pine Bluff Jeff Brecklein, Jonesboro 1. Register to attend the March Washington D.C. Summit.

Go to https://www.aba.com/training-events/conferences/ washington-summit to register.

2. Contact Tom Cotton about the SAFE Banking Act.

Nathan Gairhan, Springdale David Jessup, DeWitt Lance Lanier, Van Buren Barry Ledbetter, Little Rock Wilson Moore, Little Rock Evelyn Morris, El Dorado Marnie Oldner, Little Rock

3. Register for Annual Convention & Bowling for BankPAC Go to www.arkbankers.org for more details.

Mark Roberts, Malvern Lori Ross, Arkadelphia Randy Scott, Blytheville Todd Smith, Magnolia Jason Tennant, Eureka Springs Lynn Wright, Little Rock

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CHAIRMAN’S COLUMN Rob Robinson | Chairman Arkansas Bankers Association

Level the Playing Field The average American pays $7,899 in Federal Income Taxes, the average Arkansan making $44,000 per year pays $2,598 in Federal Income Taxes, and the $1.5 Trillion Credit Union industry, they pay $0. In laymen’s terms, zilch, nada, zip. My fellow bankers, it is time to get “Woke” (ask your teenager). Just let this soak in for a minute. If this doesn’t get your blood pressure up, hold my beer (more on this later) and read this.

First, a little background on these tax evaders. Around 80 years ago, Congress exempted credit unions from paying federal income taxes to encourage their mission of serving small groups of consumers of modest means (LMI individuals) that were united by a common cause. River Valley Community FCU, with a location in my hometown, is an example. This $42 million credit union has two locations in southern Arkansas and its common cause – I’m guessing is that these two locations are in close proximity to a river? Still trying to find a valley in south Arkansas and I have lived here for 10 years, but so be it. On the flipside, there are more than 300 credit unions in the United States that have more than $1 billion in assets – tell me the “common cause” connection of their membership base, they breath oxygen?

Here’s the rub, and it’s a big one that doesn’t appear to be going away anytime soon. Credit unions are buying up banks at an alarming rate. There hasn’t been any activity of this sort in Arkansas to date, but I suspect there will be soon, and the impact will be huge. I don’t have to tell you what this means for communities both large and small across our great country – a shrinking tax base that supports these communities. This means less revenue for schools, public safety, roads and infrastructure, and other public services. For large credit unions to operate in the very communities in which they suck the tax dollars out of is simply unconscionable. How many non-profits in your communities sponsor professional sports teams, stadiums, concert venues and convention centers? Large credit unions across the county do! How does this even make sense?

It is estimated that over the next 10 years, the American taxpayers will pick up the bill from this industry’s tax exemption that will total over $20 billion dollars. This total will only rise if credit unions continue buying banks. To be fair, the majority of small credit unions have stuck to their original mission, the large credit unions, however, enjoy nearly 75% of the tax benefit.

It gets worse. The primary regulator for credit unions with oversight responsibility, the NCUA, is more of an advocate for credit unions than its policeman. Common ties member-

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ship requirements – no big deal says the NCUA. (True story, the President and CEO of Together Credit Union, formerly the Anheuser-Busch Employees’ Credit Union, is quoted saying that if you can spell b-e-e-r, you can be a member). Can credit unions accept public funds or deposits from people and organizations with no ties to the credit union? Absolutely say the NCUA, bring them on! Think the Fed would ever look the other way on a Reg O violation?

Let’s keep going. CRA requirements? Surely an industry founded on the premise of providing financial services to groups of consumers of modest means would be held to the same standard as banks? CRA doesn’t apply to credit unions. Credit unions make billions of low rate loans to corporations and the wealthy. Consumers with modest means, get out of the way.

It will take a concerted and continuous effort of advocating for our industry on this matter for anything to happen in Washington, D.C. The credit union lobby is strong and has a huge war chest. Imagine that! We as an industry must continue to press our delegations in the United States Congress and United States Senate for reform. What kind of reform you may ask?

I think we can all agree that the smaller credit unions stay true to their original mission and shouldn’t be penalized. It’s the big boys, the ones that are getting bigger, that must be addressed.

There is a current push to remove the tax exemption status for credit unions with assets in excess of $1 billion. This would be a good start.

Credit unions operate in most of our communities; how many of your friends, neighbors, and customers know that they don’t pay taxes. Tell anyone and everyone because without a united front on this issue, from multiple stakeholders, nothing will change.

If it walks like a bank, talks like a bank, then credit unions are banks. It is past time they pay their fair share in taxes. *Source material from www.explorecreditunions.com

ABA PROFESSIONAL DEVELOPMENT

AmBA TRAINING AmBA Training includes extensive learning opportunities suited to specific job roles, in both facilitated and self-paced online formats, as well as in person. Flexible and cost-effective, AmBA’s online training opportunities are continually updated to provide a superior learning experience that can be accessed from anywhere, at any time.

UPCOMING COURSES The Banking Industry April 6, 2020

Analyzing Financial Statements May 11, 2020

Managing Funding, Liquidity, & Capital June 8, 2020

Managing Interest Rate Risk April 13, 2020

Analyzing Bank Performance May 18, 2020

Bank Lines of Business June 8, 2020

Basic Administrative Duties of a Trustee April 20, 2020

Marketing in Banking June 1, 2020

Money and Banking June 29, 2020

For more information about AmBA Training, log on to www.arkbankers.org or call 501.376.3741.

ARKANSAS BANKERS ASSOCIATION PROFESSIONAL DEVELOPMENT For more information about ABA Live Events or Webinars log on to www.arkbankers.org or call 501.376.3741.

LIVE EVENTS

WEBINARS

April

April

Commercial & Industrial Lending • April 1, 2020

No Foolin’ - This is How Top Producers Prospect for Business April 1, 2020

Providing you with face-to-face interaction with expert instructors!

Commercial Real Estate Lending • April 2, 2020 Commercial Lending School • April 20-24, 2020 Secured Loan Documentation • April 30, 2020

Providing you with educational topics to learn about from the comfort of your desk!

Loan Participations: What You Should Know • April 1, 2020 Excel Explained: Creating Interactive Spreadsheets April 8, 2020 Cannabis Banking: Part III • April 16, 2020

May Real Estate Loan Documentation • May 1, 2020 Advanced Financial Statement & Cash Flow Analysis May 13, 2020 Advanced Tax Return Analysis • May 14, 2020

May How to Hire Your Next Sales Superstar • May 20, 2020 Mortgage Origination Compliance • May 27, 2020

Trust School • May 18-21, 2020

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WASHINGTON UPDATE Rob Nichols | President & CEO American Bankers Association

Seeing, Saying and Doing Something About Elder Fraud

Odds are your bank has a story that illustrates a disturbing trend affecting older Americans today. Perhaps one of your tellers noticed a regular customer suddenly showing up at the bank with a new “best friend.” Or staff detected unusual activity in an elderly customer’s account, such as large withdrawals or unpaid bills.

These are two of several red flags that can signal elder financial abuse, and banks are increasingly noticing—and reporting—such cases. According to a FinCEN analysis released in December, suspicious activity reports related to elder financial exploitation have increased dramatically in recent years, jumping from 2,000 filings in October 2013 to nearly 7,500 filings in August 2019.

A Consumer Financial Protection Bureau Report issued in February 2019 offers similar statistics and adds that 80 percent of SARs related to elder financial exploitation involved a monetary loss to older adults and/or the institution that filed. The average loss for customers was $34,200, while the average loss to institutions filing was $16,700.

As disheartening as this sounds, there’s actually some positive news amid all the data surrounding elder financial fraud.

The ABA Foundation has documented that good news in its 2019 Older Americans Benchmarking Report. The biennial report shows that banks are going well beyond the “see something, say something” threat mantra and are proactively working to educate and protect their older customers.

It found, for example, that the vast majority (90 percent) of respondent banks now require additional, specialized training for frontline staff. That’s up from 71 percent in 2017. It also found that more banks are reporting suspected elder abuse and fraud to Adult Protective Services, with 81 percent of survey respondents listing that as standard procedure, up from 62 percent in 2017. And more than 60 percent say they now have at least one employee specifically designated to lead efforts on elder financial abuse and fraud prevention.

Banks aren’t just focused on spotting and reporting fraud.

They’re also increasingly preventing it by teaching seniors in their communities the art of self-defense. One banker shared how her institution created fraud packets with brief brochures and “scam cards” to educate older customers on schemes and how to report them. Another said his institution developed a brochure for caregivers to help guide conversations on sensitive topics like developing a will or sending duplicate account statements for review. And half of the banks surveyed said they offer in-branch training for older customers on new banking technologies, such as online or mobile banking.

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In addition to protecting one of our country’s most vulnerable populations, these efforts demonstrate banks’ commitment to their customers and communities and reflects well on the industry. That’s why I’m making sure policymakers are aware of all banks are doing. It’s also why I’m encouraging more banks to join the fight.

With 10,000 Baby Boomers turning 65 every day (a trend that will last until 2030), and with older Americans holding 70 percent of deposit balances in the U.S., the elder financial fraud threat is bound to get worse before it gets better. But the more bankers are engaged in countermeasures, from educational efforts to fraud monitoring and partnerships with APS, the better off our customers and communities will be.

So for those banks that have room to start or grow their efforts in this area, I offer three simple steps: 1. Read the Older Americans Benchmarking Report. It tells you what banks in your asset range are doing and spotlights innovative programs.

2. Sign up for Safe Banking for Seniors. This ABA Foundation program provides turnkey presentation materials and resources for bankers to use with seniors and caregivers.

3. Enroll in FinEdLink. This is a relatively new service from the foundation that allows us to pair banks with community groups or schools that are interested in having a banker present on age-appropriate personal finance topics, including senior fraud prevention.

All of these resources are free and available at aba.com/ Seniors. (Undoubtedly your state association has even more, since state associations have been true pioneers in this field).

Take advantage of these resources so that fewer crooks will take advantage of your customers.

As one banker in our survey said, the older generation wants so badly to leave a legacy and remain self-sufficient, but they also are so trusting they don’t always see a scam for what it is. “That’s where our role as bankers is so critical as we… help them navigate these difficult situations to ensure their legacies and livelihoods are protected.”

2020

enVISIONing the future

ARKANSAS BANKERS ASSOCIATION | ANNUAL CONVENTION April 7-9, 2020 • Downtown Little Rock Marriott The 2020 Annual Convention is a great place to connect, see old friends, and meet new ones! You’ll be surrounded by like-minded peers from across the state, all with their own experiences and expertise to share. Our bankers often say the conversations they have with other attendees during these casual events yield some of the greatest take-aways. This year’s Convention program includes banking industry pros, a day with the state bank commissioner, and some amazing speakers, including the the FDIC Chairman Jelena McWilliams. The Convention isn’t all work and no play either...there are plenty of opportunities to network during the registration and welcome reception and the Bowling for BankPAC event, or grab a table with friends during dinner. Envisioning the future in the banking industry has never been more fun or rewarding!

CELEBRATE BANKING INDUSTRY VETERANS

Meet some of Arkansas’ banking industry veterans as they are honored for their service during the sixth annual BKD Milestones in Banking Awards.

Representing banks from across the state, these individuals will be honored for reaching their 40- and 50-year benchmarks in the industry.

FDIC Chairman Jelena McWilliams

For more details go to www.arkbankers.org/convention.aspx The Arkansas Banker n Spring 2020

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Regulation CC Updates Action Plan and Q&As

by Jennifer Kirby, CRCM • Virtual Compliance Officer The Consumer Financial Protection Bureau and Federal Reserve Board (collectively, the Agencies) issued a final rule regarding inflation-based adjustments to the dollar amounts required by the Expedited Funds Availability Act (EFA Act), which is implemented by Regulation CC. The Agencies also amended Regulation CC to incorporate the Economic Growth, Regulatory Relief and Consumer Protection Act amendments to the Expedited Funds Availability Act, which include extending coverage to American Samoa, the Commonwealth of the Northern Mariana Islands, and Guam and certain other technical amendments.

There have been many questions as to what actually went into effect on September 3, 2019. The final rule states that this rule is effective September 3, 2019, except for the amendments to 12 CFR 229.1, 229.10, 229.11, 229.12(d), 229.21, and appendix E to part 229, which are effective July 1, 2020. To put it another way, all of the amendments go into effect on September 3,2019, except for the newly adjusted dollar amounts, which are effective July 1, 2020. So, the amendments related to the extension of the EFA Act to American Samoa, the Commonwealth of the Northern Mariana Islands, and Guam found in 229.12(e) and 229.43, the definitions of Automatic Teller Machine, States, and United States, and the technical amendments to Regulation DD all went into effect on September 3, 2019. The major part of the rule regarding the newly adjusted dollar amounts goes into effect on July 1, 2020.

The amendments institute a Dodd-Frank Act statutory requirement to adjust for inflation the amount of funds depository institutions must make available to their customers. The Dodd-Frank Act amendments require the EFA Act dollar amounts to be adjusted every five years based on the annual percentage increase of Consumer Price Index for Urban Wage Earners or CPI-W, rounded to the nearest multiple of $25. As implemented through this final rule, the first adjustments will change the • $100 amount (amended to $200 in the EFA Act by the Dodd Frank Act in 2011) in § 229.10, 229.12, 229.13 to $225; • $400 amount in § 229.12(d) to $450; • $5,000 amount in § 229.13(a), (b), and (d) to $5,525; and • $1,000 and $500,000 amounts in § 229.21(a) to $1,100 and $552,500.

The newly adjusted amounts are effective on July 1, 2020. The second set of adjustments will be effective July 1, 2025 and will be based on underlying inflation from July 2018 through July 2023. The third and final set of adjustments will be effective July 1, 2030 and will be based on inflation from July 2023 through July 2028.

The amendments that went into effect September 3, 2019 were technical. It’s the July 1, 2020 changes that you need to think about. With systems to update, disclosures to change, and staff to train, this deadline will be here before you know it! First, you will have to work with vendors to update software that determines availability. Also, banks should consider necessary changes to their Funds Availability Policy disclosures prior to implementation. It is also important to note, changes to a bank’s funds availability policy to reflect the inflation adjustments will trigger the Regulation CC change-in-terms notice requirements. Regulation CC § 229.18(e) requires a depository institution to send customers a notice regarding a change to the bank’s funds-availability policy at least 30 days before implementing a change and not later than 30 days after implementation for any change

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which expedites the availability of funds. The final rule makes it clear that, “…[t]he changes to the availability policies to reflect the statutorily-required inflation adjustments, as implemented by this final rule, would trigger the requirement to send a change-in-terms notice.” A change-in-terms notice may be provided electronically in compliance with the Electronic Signatures in Global and National Commerce Act (E-Sign Act) and may be sent on or with a monthly account statement. Furthermore, staff will need to be trained.

Now, let’s go over some questions that we have received on hotline.

Q1: I received the Compliance Alliance e-mail concerning the inflation adjustment amendments issued to Reg CC. We understand that these changes will not be effective until 7/1/20 but are wondering if we can make these changes early? We are in the process of changing our fee schedule and plan on doing a special mailing to notify our customers of the changes. We were thinking if we could also include the new funds availability schedule as well, we could save on postage rather than doing a second special mailing next year. Would this be allowed?

A1: Although early compliance is not addressed in the final rule, the bank is always welcome to make more funds available than what is required by Reg CC. The bank would want to be sure to give notice within 30 days of changing its policy.

Q2: Are case-by-case holds included in the July 1, 2020 Reg CC changes?

A2: If your bank has adopted an availability policy more favorable than that required under Regulation CC, it may delay availability, but only up to the maximum time frame allowed by Regulation CC. This means that if your bank offers next day availability, but it decides to delay availability, it must still make $200 available on the next business day.

On July 1, 2020, the $200 amount will increase to $225. So, your policy regarding longer delays will need to be updated to reflect this new $225 amount. This also means that your funds availability policy disclosure will need to be updated and a change in terms notice will need to be provided.

Q3: Can our Funds Availability Policy Disclosure include the phrase “minimum amount required by regulation” rather than setting forth an actual dollar figure?

A3: Banks should not provide funds availability policy disclosure that includes such a phrase. The Agencies believe that it would result in consumer customer confusion. Specifically, the Agencies believe that one of the purposes of the statute, is that consumers be informed of the specific amount of deposits available to them under an institution’s funds-availability policy.

If you have any questions related to the upcoming Reg. CC changes, don’t hesitate to contact us on the C/A hotline.

About the Author

Jennifer Kirby has over 15 years’ experience in the financial services industry.

She began her career with a national bank in San Antonio, Texas while receiving her Bachelor of Business Administration degree in Finance. She continued her interest in finance through law school and focused her course work on creditor and transactional issues. While in law school Jennifer worked at a commercial litigation law firm with a specific focus on creditor’s rights and collection litigation matters. Since 2011, Jennifer has been part of the team of attorneys and compliance experts who develop all of C/A’s wide range of products and tools for bank personnel. Jennifer is also one of their featured authors.

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Arkansas Based Family Owned CREDIT LIFE & DISABILITY INSURANCE

Live Life.

Leave a Legacy.

5

minutes with...

Lori Ross ABA Board Member Citizens Bank, Arkadelphia, AR

How did you get started in banking?

I got my start in banking in 2006 as a loan assistant. I had relocated back to Arkansas from Memphis where I was pursuing my MBA. I knew I wanted to return home to be near family and the job market was tough at that time. I decided to give banking a shot and quickly realized helping small business owners was my passion.

Over the course of your career, what is the biggest shift you’ve seen in banking?

That one is easy…Compliance! The financial crisis of 2008 completely changed the playing field. Banks learned a lot from that time. However, the challenges of regulatory compliance forced many of our small community banks to merge with bigger banks.

What advice do you have for women bankers?

Don’t let your gender determine your career opportunities.

Tell us something that your fellow bankers might be surprised to know about you?

I grew up around livestock and showed cattle at the County Fair. I also participated in my high school’s Future Farmers of America Program. This experience taught me many life lessons, but probably the most important was that with hard work and dedication, a girl can do whatever she sets her mind to.

What is the most important lesson you’ve learned in your career to date?

Donna Spakes donna@flicar.com 501.519.0555 | 800.446.2214 flicar.com

Things won’t always go your way. Accept the outcome, learn something from it, and move on.

What’s your biggest guilty pleasure?

Eating brownie batter and cookie dough…and yes I know the dangers of eating raw eggs. I have a stomach of steel I guess!

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THANK YOU TO OUR ABA BANKPAC DONORS Alan Clark  Arvest Bank  Barry Ledbetter Bruce Wiley BSG Financial Cathy Owen  Cecil Alexander  Connie Featherstone Cornerstone Bank Danny R. Criner Deretha Walker Donnita Gerster Eagle Bank & Trust Company  Elizabeth Kelley Farmers Bank & Trust Co. Magnolia  Farmers Bank & Trust Co. Blytheville  First Community Bank  First National Bankers Bank

Generations Bank Harry Melhorn James E. Peacock  James Huffman Jason Tennant Jay Ertel Jeff Lynch Jim Cargill John Adams Jon Harrell  Karlea Newberry Katherine Mullis Kathryn Roberts  Larry T. Wilson  Lorrie P. Trogden  Magnolia Banking Corporation  Marnie Oldner  Melody Vollman

Mike Wilson  MNB Bancshares, Inc.  Patrick Hagge  Piggott State Bank Randy Scott  Rita Herrmann Robert Hopkins Robert L. Robinson, IV Sara E. Cobb  Sara Holmes SBS CyberSecurity Shannon Snow Stone Bank Terry L. Toney  Thomas Bond  Todd Smith Works24 Corporation 

Your Arkansas Bankers ABA BankPAC contribution is one of the most important investments you can make to protect the future of the banking industry.  $500+ Club The Arkansas Banker n Spring 2020

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Austin Logan Commercial Loan Officer Relyance Bank, Pine Bluff, AR

What can banks do to better appeal to millennials – in the workforce and as customers?

I think one way banks can better appeal to millennials in the workforce is to maintain modern workplaces that strive to keep pace with advances in technology. Also, one way banks can better appeal to millennials as customers would be to improve mobile and online banking. Our generation operates solely on technology for the most part and prefers a quick and easy process. Big banks such as Bank of America, JP Morgan Chase, Capital One, and Wells Fargo have recognized this and have made large investments to develop very robust, seamless apps or online services for their consumers. This is an important area for community banks to focus on as well, as technology becomes increasingly advanced.

What technology innovation has made the most impact on your life?

The smart phone. I think the smart phone has impacted just about everyone’s life as much as it has mine. I can do just about anything and everything on my smart phone from the palm of my hand. I can stay connected at work while away from work, including having a meaningful engagement with my customers, no matter where I am. However, smart phones can also present a challenge because of the sheer amount of information and communication that is now directed at us all the time.

What civic project has your bank participated in that touched you the most?

One civic duty that my bank participated in that touched me was a Habitat for Humanity project here in Pine Bluff. Habitat for Humanity is a nonprofit housing organization where they partner with people in the community to help build or improve their homes. In this project, Habitat for Humanity selected a family of four, here in Jefferson County, and built them a new primary residence. Relyance Bank donated funds to help supply the majority of the materials and paid for the sub-contractors. Also, many of the bank’s staff helped volunteer to build the house. Our staff worked to help put up the framing, build headers above the door ways and windows, hang sheet rock, put in windows, trim, siding, and paint.

What can you simply not resist?

An opportunity to go play golf, especially on a sunny day with a group of my friends.

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Clarity for Banks Serving the Hemp Industry

By Carl White, Senior Vice President, Supervision, Federal Reserve Bank of St. Louis Banks serving hemp producers no longer have to automatically fill out reports used to detect money laundering activities.

This reduction in regulatory burden can be traced to the 2018 farm bill (officially titled the Agriculture Improvement Act of 2018), which legalized hemp by removing it as a Schedule 1 controlled substance. Properly licensed industrial hemp producers can now be treated the same as other bank commercial customers for anti-money-laundering regulatory purposes.

Hemp Basics

In raw form, hemp is a fiber extracted from the stem of the cannabis plant, the same plant from which marijuana is derived.

Hemp has many uses: • It can be used to make paper, fiberboard, rope and fabric.

• Hemp seeds can be made into oils that can be used in lubricants, paints, inks, fuel and plastics.

• Hemp seeds can also be used in the production of soaps, shampoos and detergents.

Unlike marijuana, hemp contains very low levels of tetrahydrocannabinol (THC), the chemical that causes an altered state when ingested or smoked. Hemp that contains less than 0.3% THC is considered legal.

Legalization Process

The U.S. Department of Agriculture (USDA) issued an interim rule in late 2019 to provide monitoring and regulatory guidance for state agriculture departments and tribal governments wishing to allow legal hemp production within their borders.

Permitting states are required to: • Maintain records on the land where hemp is produced • Test hemp for THC levels • Dispose of plants that exceed the 0.3% limit • License hemp producers Hemp producers in a state that does not obtain a USDA-approved plan will be directly regulated by the USDA. States and tribal governments are not required to allow hemp production, even though it is now legal under federal law.

Banking Effects

Despite the change in the legal treatment of hemp, many bankers have been reluctant to work with the industry because of regulatory concerns. In response, the three federal banking regulators—the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency—joined with the Financial Crimes Enforcement Network (FinCEN) and the Conference of State Bank Supervisors to issue guidance in December 2019 to clarify hemp’s legal status and relevant reporting requirements under the Bank Secrecy Act (BSA).1 The BSA requires U.S. financial institutions to work with the federal government to detect and prevent money laundering.2 The main takeaway from the regulators’ statement is that banks no longer need to automatically fill out Suspicious Activity Reports (SARs) when working with a hemp producer customer because hemp production has been legalized. They can follow standard procedure and file a SAR if suspicious activity warrants.

Going Forward

Bankers with questions about the 2018 farm bill and hemp can contact the USDA, state agriculture departments or tribal governments. Because the U.S. Food and Drug Administration retains some regulatory authority over hemp products, banks can contact that agency with questions about hemp-related food, drugs or cosmetics. In addition, banks should be looking out for additional guidance on the USDA interim final rule from FinCEN. Notes and References 1. “Providing Financial Services to Customers Engaged in Hemp-Related Businesses,” Federal Reserve Board of Governors, Federal Deposit Insurance Corp., Financial Crimes Enforcement Network, Office of the Comptroller of the Currency and the Conference of State Bank Supervisors, Dec. 3, 2019.

2. See the blog post “What Is the Bank Secrecy Act, and Why Does It Exist?” for more information about the BSA and how it impacts banks.

Additional Resources • On the Economy: Can Anyone Own a Commercial Bank?

• On the Economy: Regulatory Relief for Community Banks: A Simpler Way to Calculate Capital

The legal marijuana business is not affected by the change in status for hemp production, because marijuana is still considered a controlled substance under federal law.

The Arkansas Banker n Spring 2020

15

LE

LEGA

RE

SU XPO

NEW POSITION

BANKER BEWARE:

By Robert T. Smith • Mergers & Acquisitions Friday, Eldredge & Clark, LLP

Changing Jobs Can Create Legal Exposure for a Banker and his Next Employer The flurry of mergers and acquisitions deals in the banking industry over the past several years has created an active market for bankers seeking a better fit at another institution. Anyone changing jobs accepts some risk that the new position will not be as ideal as hoped. While that risk is inherent in any move, bankers and their new employers should consider a few steps to mitigate other risks accompanying the change.

EMPLOYEE RESTRICTIONS

It is common for banks to impose some level of restrictions on employees, typically taking the form of a confidentiality or nondisclosure agreement intended to protect the bank’s trade secrets, proprietary and customer information. It is somewhat rare in the Arkansas market to find a restriction that completely prohibits a former employee from engaging in the banking business. Most common are restrictions on management level employees impacting their ability to solicit customers and other employees for a designated period of time post-termination (typically one year).

Historically, Arkansas courts have disfavored noncompetition covenants. Under the traditional Arkansas approach, if any part of a noncompetition agreement was found to be unreasonable in length or geographic scope, then the entire agreement was unenforceable. In other words, Arkansas courts took an all-or-nothing approach. This approach changed with the enactment of Ark. Code Ann. section 4-75-101 in 2015. Under this statute, courts are now required to amend parts of a noncompetition agreement that are “unreasonable” and enforce the amended agreement rather than strike down the agreement

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The Arkansas Banker n Spring 2020

in its entirety. This is generally referred to as the “blue-pencil” approach. The law also makes it more likely that a noncompete will be enforced by adding a presumption that a post-termination restriction of two years is presumptively reasonable.

DUTIES AND OBLIGATIONS TO CURRENT EMPLOYER

A banker, like any other employee that is considering leaving one job for another, should first consider what duties he or she owes to his/her current employer. All prior employment agreements, letters and other documents should be reviewed to assess whether any contractual restrictions exist. These could be located in a formal employment agreement, but are often found in documentation related to options and other equity grants that a banker may not recall receiving. Additionally, some restrictions are structured such that they are intended to become enforceable upon the employee’s receipt of an equity award without him or her having actually signed any document consenting to the restriction. Caution should be taken to make sure that all previous documents and agreements are reviewed.

Beyond any contract responsibility, the law separately imposes fiduciary duties on any employee serving as a corporate officer. Officers owe a duty of loyalty to their current employer meaning that any competition prior to resigning is a breach of this duty. This would include discussions with key customers and co-workers occurring prior to termination of employment.

In practice, these conversations occur frequently, but bankers should understand that they may serve as the basis for a lawsuit.

For the banker, the best advice is that he or she not take anything with them to their new job other than their own personal knowledge (or often referred to as what is “in between the ears”).

FEDERAL RESERVE ACTION

Looking beyond the potential for claims by an ex-employer, a recent Federal Reserve System (FRS) action takes the issue to an even more concerning level. Late last year the FRS named two Wyoming bank executives in a “Notice of Intent to Prohibit” – effectively attempting to bar their further participation in the banking industry. The FRS announced it was considering this lifetime ban for two Wyoming bankers — Frank Smith and Mark Kiolbasa — for taking trade secrets and recruiting clients from a former employer. The FRS alleges that the two bankers engaged in unsafe or unsound practices and breached their fiduciary duties to their employer. The bankers are alleged to have conspired while they were working for Central Bank & Trust (CBT) to misappropriate CBT’s proprietary business information in a plan to acquire an ownership interest in Commercial Bancorp (CB) and subsequently take management positions at Farmers State Bank (FSB) which is a a wholly owned subsidiary of CB. The bankers are also purported to have obtained commitments from customers to move accounts to FSB while they were still employed by CBT. The bankers were sued

by CBT in September of 2016, with the Court later ordering them to pay CBT a collective $2.2 million in damages for their actions.

According to the notice, the bankers had been working on their plan, which included the transfer of customer accounts from Central to Farmers, since at least 2013. The FRS estimates that the misappropriation of information caused more than $1 million in financial damages to CBT. The enforcement action is currently pending. While we see no indication that the FRS is paying any closer attention to bankers moving to other institutions, bankers should be careful to ensure that they are not breaching any legal duties in preparing to change jobs.

POINTERS FOR BANKERS AND THEIR NEW EMPLOYERS

Given this action by the FRS, and the risk of litigation by a former employer, bankers and their new employers should tread carefully through the recruitment and transition process. The risk of a lifetime ban may better protect banks, but creates new risks at the same time. If not careful, the same bank that threatens to report a former employee to the FRS may also be hiring a new employee that has engaged in the same conduct.

For the banker, the best advice is that he or she not take anything with them to their new job other than their own per-

sonal knowledge (or often referred to as what is “in between the ears”). In particular, note that the FRS’s notice alleges that the individuals took proprietary information including forms and customer information. Bankers should also avoid any discussions with current customers or co-workers to circumvent claims that the banker has breached any duty to his/her current employer. Lastly, a banker should be sure to identify all agreements that he may be subject to imposing any type of post-employment restrictions. These may take the form of simple non-solicitation provisions to outright competitive restrictions. The problem in many cases is that a banker may not recall all restrictions. For example, non-solicitation restrictions are, in many cases, imposed under stock or option award agreements. All of these restrictions must be identified to assess the banker’s legal obligations.

For the new employer, discussions should begin early with the prospective employee to confirm legal restrictions and outline a plan for the transition. The employer should make clear to the new employee what conduct is and is not acceptable.

ABOUT THE AUTHOR

Robert T. Smith heads the Finance and Commercial Transactions Practice Group and serves on the firm’s Management Committee. In the banking area, Robert advises clients on merger and acquisition transactions, lending, regulatory compliance and capital raising activities. He assists clients in private equity and corporate finance matters, the offering of debt and equity securities, and counseling directors and executive officers regarding fiduciary duties and corporate governance issues. Robert also regularly represents professionals and professional firms in the formation, expansion, merger, and division of professional practices.

This information is not a substitute for legal advice and should be considered for general guidance only. For more information or if you have further questions, please contact one of our Banking & Finance attorneys.

The Arkansas Banker n Spring 2020

17

23

More than Two-Thir of Americans Think It is Unfair that Mega Credit Unions Are Tax-Exempt. . .

Voters agree that Congress should require credit unions with more than $500 million in total assets to pay federal and state income taxes.

A national Harris Poll survey commissioned by the Florida Bankers Association found that 68 percent of registered voters in the United States think it is unfair that credit unions with $500 million or more in total assets are exempt from paying state and federal income taxes. Approximately 71 percent of registered Republicans, 71 percent of registered Democrats and 70 percent of registered Independents would support Congress now requiring these mega credit unions to pay feral and state income taxes.

The Florida Bankers Association is proposing a bill that will end the tax exemption for credit unions with gross assets exceeding $500 million.

“Voters have spoken and agree that there is no reason why mega credit unions, which enjoy the majority of all credit union industry profits and look and act just like taxpaying banks, should be free of taxation,” said FBA President and CEO Alex Sanchez. “The findings from the poll show that the outdated exemption needs to end. It’s time to take off the masks of mega credit unions and level the playing field for all in the financial industry.”

Eighty-five years ago, Congress established credit unions to provide financial services to lower-income people with a common bond. To help support this, Congress exempted credit unions from paying federal and state income taxes. However, research findings reveal that American feel it’s time for a change.

The majority of respondents (80 percent) agree that financial institutions, regardless of type, with $500 million or more in total assets should have to pay federal and state income taxes.

Four in five Americans (80 percent) believe there should be strict regulations in place on how profits of financial institutions that do not pay federal and state income taxes can be used.

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The Arkansas Banker n Spring 2020

In 2018, credit union industry assets climbed to $1.48 trillion, and more than 300 credit unions across the country had assets of more than $1 billion at year-end.

Due to credit unions’ tax advantage, today’s community banks are facing extinction. Since 2012, nearly 40 banks have been bought out by credit unions. The poll research found that voters disagree with these acquisitions.

Americans agree (75 percent) that mega credit unions that don’t pay federal and state income taxes should not be allowed to buy out tax-paying community banks.

Three-fourths of respondents (75 percent) agreed that requiring mega credit unions to pay federal and state income taxes would level the playing field for local community banks.

For more information and a full summary of the research findings, visit www.floridabankers.com/fba/creditunions.

Why were credit unions created?

Credit unions were designed with the specific purpose of helping underserved people of modest means and those in similarly situated professions, such as teachers. Because of this purpose, Congress granted them tax-exempt status.

Are credit unions not-for-profits?

Yes. However, credit unions have drastically changed since they were created and are almost indiscernible from banks. For example, in 2019 the NCUA National Credit Union Association (NUCA) announced that it will allow profit-seeking investors in invest in credit unions. It would be unfair to continue to allow “not-for-profit” credit unions, owned by profit-seeking investors, to be exempt from federal and state income taxes when they are shareholder-owned like tax-paying banks.

If credit unions aren’t taxed, where do their profits go?

Mega credit unions that earn billions of dollars in profits pay six-figure executive salaries and sponsor professional sports teams, stadiums, concert venues, and convention centers.

In 2015 Golden 1 Credit Union ($9 billion in assets) acquired naming rights of the NBA’s Sacramento Kings arena for a reported $120 million.

CREDIT UNIONS ARE A

$1.53 TRILLION INDUSTRY

AVERAGE FAMILY OF FOUR PAYS

Will federal and state income taxation hurt credit union members?

Credit union members are tax-paying citizens. In Florida, the average resident making $50, 860 a year pays $3,577 in federal income taxes. Why are members paying more in taxes while their credit unions, making billions annually, get off scot-free?

Do credit unions offer fewer products than banks?

No. In fact, credit unions and banks offer a nearly identical variety of financial services and products. Today’s credit unions provide auto loans, fund large commercial projects with complex loan syndication partnerships, and offer loans to high-income members to fund private planes, RVs, mansions, yachts and airplanes. What other not-for-profit can you think of uses it funds to help the wealthy by airplanes?

Aren’t the majority of credit unions smaller depository institutions?

Yes. More than three-quarters of credit unions have less than $100 million in assets. However, banks aren’t asking Congress to get rid of credit unions. Banks are advocation that mega credit unions, with billions in assets, should pay their fair share of taxes.

TAX

IN FEDERAL TAXES

CREDIT UNIONS

DON’T PAY

FEDERAL & STATE INCOME TAXES

$0

AMOUNT CREDIT UNIONS PAY IN FEDERAL TAXES

THE CREDIT UNION TAX EXEMPTION DEPRIVES THE U.S. NEARLY

$3.5 BILLION EVERY YEAR

What legislation is being proposed to Congress about the credit union tax exemption?

The Florida Bankers Association is proposing a bill that will end the tax exemption for mega credit unions. If passed, credit unions with gross assets exceeding $500 million will pay their fair share of federal and state income taxes. Credit unions under this threshold will remain tax-exempt.

AND WILL COST TAXPAYERS

This article originally appeared in Florida Banking magazine October 2019 and was reprinted with permission.

OVER THE NEXT 10 YEARS

Research Method This survey was conducted online within the United States by The Harris Poll on behalf of Florida Bankers Association from September 26-30, 2019, among 2,040 U.S. adults ages 18 and older, among whom 1,668 are registered voters. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact Heidi Otway at heidi@saltermitchellpr.com.

$7,899

THE TOP 10%

$35 BILLION

OF CREDIT UNIONS

ENJOY 90%

OF ALL INDUSTRY PROFIT

WHY SHOULD MEGA CREDIT UNIONS

NOT PAY THEIR FAIR SHARE?

1 Source: “Comparing CUs to Savings & Loans, 51 Bankers’ Groups Demand Congressional Investigation,” CUToday.info 2 “Where Does the Money Go?,” Explore Credit Unions 3 “Florida,” Explore Credit Unions 4 “What Are Federal Income Tax-Exempt Large Credit Unions?” Explore Credit Unions 5 “Director, Office of Examination and Insurance Larry Fazio Hearing on Examining Regulatory Burdens - Regulator Perspectives, “ National Credit Union Administration 6 These large, tax-exempt credit unions are increasingly buying out smaller credit unions and community banks, which raises significant tax policy questions.

VISIT WWW.FLORIDABANKERS.COM/FBA/CREDITUNIONS The Arkansas Banker n Spring 2020

19

2019 Women in Banking

The Arkansas Bankers Association hosted the 2019 Women in Banking conference in December at the Downtown Marriott in Little Rock. The event had over 150 attendees from around the state (see bottom photo). Designed to bring together the unsung majority of Arkansas bankers for networking and fellowship, women came together to offer strength, empowerment, and to celebrate to their fellow bankers!

(Above photo; left to right) Sandy Stone, Stone Bank; Gracie Gentry, SF Fiser; and Sarah Heird, Relyance Bank.

(Above photo; left to right) Faviola Alba and Tanya James, both of Arvest.

(Right photo; left to right) Kathryn Theriot, BKD, LLP; Michelle Reeser, First Community Bank; Brandy Harris, First Arkansas Bank & Trust; and Adrienne Dallas, BKD, LLP.

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The Arkansas Banker n Spring 2020

(Left to right) Amanda Grube, Farmers & Merchants Bank; Chris McKendree, Firstark Bank & Trust; and Lynn Guynn, Relyance Bank.

(Left to right) Speaker Laurie Stewart, CEO of Seattle-based Sound Financial Bancorp, Inc.; and Lorrie Trogden, ABA President and CEO.

(Left to right) Alissa Flanagan, Farmers Bank & Trust; Ashley Parsley, FNBC; and Brittany Biggers, SF Fiser.

The Arkansas Banker n Spring 2020

21

garnishment 101 for bankers When Worlds Collide: The Intersection of Banks and Garnishments

By Gregory M. Hopkins, Hopkins Caststeel PLC, Little Rock, Arkansas Banks typically are served with garnishments in two situations: 1. Where a bank customer’s account is garnished; or 2. Where a bank employee’s wages are garnished.

This article, based upon current law, reviews each of the situations, the common issues encountered, and offers suggestions on how to address the more common challenges.

Bank Account Garnishment.

When a bank is served with a writ of garnishment, the writ creates a lien against all amounts the bank holds for the defendant at the exact moment the writ is served. A recent Arkansas court decision reaffirmed this principle, holding that the bank is liable up to the full amount in the account at the moment of service (limited, of course, to the judgment amount). A bank is liable if it subsequently releases any of the account funds.

This result applies even if the bank has not had a reasonable time to place a hold on the account. For example, a bank is served with a garnishment at 2:00. At 2:02, when the teller is not yet aware of the garnishment, the account holder closes the account and gets a cashier’s check for the balance. Even in this harsh situation, the bank is liable up to the amount in the account when served.

The garnishment lien also attaches to any funds deposited in the defendant’s accounts after service of the writ but before the bank’s answer. Arkansas courts hold that the garnishment lien extends to all funds in the defendant’s accounts “at the time of the service of the writ or any time thereafter.” This ruling covers not only deposits made in the time between service of the writ and the bank’s answer, but also amounts deposited

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The Arkansas Banker n Spring 2020

in previously closed accounts which are reopened during this interim.

Banks, therefore, must adopt procedures to freeze accounts immediately upon receipt of a garnishment. The freeze should cover all accounts, open and closed, and any new deposits made before the bank answers the writ. Each bank, thus, should review its agent for service of process designations, and then strictly require that only those agents for service (and perhaps certain designated officers) be allowed to accept service of garnishments. Additionally, these persons should be authorized to immediately freeze all of a defendant’s accounts on a bank-wide basis. Time is of the essence in freezing these accounts; a delay of only a few minutes could cost a bank thousands (perhaps hundreds of thousands) of dollars.

Another common issue encountered is where the bank has a joint account with two or more owners and a garnishment against only one account owner is served on the bank. Arkansas law provides that the joint account is garnishable only in proportion to the defendant’s ownership of the funds, but it is initially presumed that the entire joint bank account is owned by the defendant. The defendant, however, may disprove this presumption at an evidentiary hearing before the court.

Obviously, the joint account situation creates another potential trap for the bank. The bank, however, can and should freeze the entire account balance, up to the judgment amount, and hold it until ownership is resolved by agreement or court action. The presumption of the defendant’s full ownership should insulate the bank from liability.

Employee Wage Garnishments.

Wages of bank employees occasionally are garnished. Employee garnishments create continuing obligations for the employer. Under federal law, only a portion of an employee’s wages are subject to garnishment. Under the “25-30 Rule,” no more than 25% of “disposable wages” (as defined by the federal law) can be garnished.

The 30 portion of the Rule provides that no more than 30 times federal (not state) minimum wage can be garnished for any weekly period. A chart illustrating the Rule is found at https://www.dol. gov/whd/regs/compliance/whdfs30.pdf.

Other rules apply for garnishments involving child support, student loans, tax debts, and certain other debts. Increased exemptions are available under state law for “laborers or mechanics.”

A wage garnishment creates a continuing lien on the employee’s wage for so long as the employee works for the bank. The garnishment creates a lien against wages until the total amount due is fully paid or employment terminates. Typically, the court will enter an order requiring the employer to periodically submit the nonexempt portion of the wages to the judgment holder.

Consequences from Failure to Answer.

Arkansas’ garnishment laws impose stringent requirements upon a bank when answering a garnishment. The answer must be in writing verified under oath, be timely filed with the issuing court, and served upon plaintiff’s counsel. A failure to answer (including submission of a defective answer) can lead to liability for the bank.

The amount and type of liability depend upon the type of garnishment.

For bank account garnishments, the bank’s liability is the amount in the accounts at the instant the writ is served plus any amounts deposited up to answer date. For wage garnishments, the rules are different. Although the statute provides for a continuing lien on the employee’s wage until fully paid or employment terminates, the Arkansas Supreme Court has held that a non-answering employer is only liable for the nonexempt amount of the wages owed at the time of service and not for any additional wages covered by the continuing lien.

Conclusion.

While a seemingly simple procedure, garnishment in Arkansas is a dangerous minefield for our banks. As observed by noted legal scholar and former Supreme Court Justice David Newbern, Arkansas’ garnishment laws are an “uneasy patchwork of rules and statutes with which parties must be familiar to pursue garnishment successfully.” The statutes, court rules, and case law are complex, confusing, and in many places, contradictory. Thus, except for the most routine garnishments, banks dealing with garnishments should seek guidance from their operations department, human resources experts, or legal counsel. Failure to do so can result in adverse financial consequences for the bank.

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The Arkansas Banker n Spring 2020

23

Death, Taxes, and the End of LIBOR

Financial Institutions Transition to SOFR Benchmark

by Doug Ingram, Federal Home Loan Bank of Dallas

“...in this world nothing can be said to be certain, except death and taxes.”

— Benjamin Franklin

As the planned retirement of the London interbank offering rate (LIBOR) draws near, some U.S. financial institutions, including the Federal Home Loan Bank of Dallas, are moving to the Secured Overnight Financing Rate (SOFR). The plan to phase out LIBOR, announced in 2017, is now less than two years away with the conversion expected to be complete by the end of 2021.

Although the SOFR has only been published since April 2018, the New York Fed has published estimates of the SOFR based on the same underlying transaction data that underlies the current SOFR back to August 2014. The New York Federal Reserve Bank has also published a much longer estimate of SOFR going back to 1998 using primary dealer survey data.

For community financial institutions and regional banks, the key is knowing whether the institution has exposure and where that exposure is. While most banks use a reference index for pricing, smaller community banks such as those that are member institutions of the Federal Home Loan Bank (FHLB) system typically use the Wall Street Journal prime rate (WSJ Prime) or their own index. WSJ Prime generally moves one-onone with the federal funds rate set by the Federal Open Market Committee of the Federal Reserve.

“The key was to set an alternative index that would allow adjustable loans to be made on a more dependable and less manipulated index,” said Doug Ingram, a managing director with Dallas-based Commerce Street Capital.

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The Arkansas Banker n Spring 2020

The Numbers Behind SOFR Unlike LIBOR’s forward-looking structure, SOFR is a backward-looking overnight rate that is collateralized by U.S. Treasury securities in the repurchase agreement (repo) market.

Volumes underlying SOFR are far larger than the transactions in any other U.S. money market, according to the Federal Reserve.

“Since its inception in April 2018, there has been an average daily volume of over $800 billion in overnight Treasury repo transactions underlying it,” according to the Alternative Reference Rates Committee (ARRC), a group of regulatory agencies and financial institutions working to help ensure a successful transition to SOFR. The New York Federal Reserve, in collaboration with the Office of Financial Research, began publishing the SOFR rate in April 2018. After one year, in April 2019, the New York Fed and ARRC reported in a SOFR report that “significant progress has been made in building liquidity in SOFR-linked markets and preparing for the transition from U.S. dollar (USD) LIBOR.” Mr. Ingram said the new SOFR rate hasn’t wandered very far off the lower end of the effective fed funds rate, acting as a weighted average of where all the overnight funds are trading.“ You have to have a way to hedge risk,” he said. “Some financial institutions have a lot of fixed debt and they want to add floating rate (debt) to offset that. Banks that are swapping debt needed a dependable benchmark, and SOFR should provide that.”

Are LIBOR-Backed Securities at Risk?

What’s Next?

LIBOR still underpins trillions of dollars in securities, from corporate loans to adjustable-rate mortgages, according to the Securities and Exchange Commission. That could present some risk, according to a SOFR article by Colin Martin and published by Charles Schwab. For investors who hold individual floating-rate notes, the impact may depend on the note’s reference rate and whether the contract contains any fallback language for when LIBOR is no longer available, he said.

The ARRC has been working to address risks on products still tied to LIBOR in case LIBOR becomes unusable. Banking institutions can view ARRC’s recommendations for fallback language on various products such as adjustable-rate mortgages, floating notes and other securitizations. “There really is no mysticism or magic in this thing,” Ingram said of the transition.

“The new index is simply supposed to be something that is a lot more dependable as far as how it is calculated — and less subject to manipulation.”

“We still see risk for legacy floaters tied to LIBOR without explicit language as to what happens once LIBOR goes away, as there could be increased price volatility as liquidity decreases,” Mr. Martin said.

The Schwab Center for Financial Research (using data from Bloomberg) said it has counted 90 floating-rate bonds totaling over $127 billion that were issued between April 2018 and September 2019 using SOFR as the reference rate. Mr. Ingram said it’s not entirely clear what will happen to existing product tied to LIBOR after 2021.

Volatility Concerns SOFR is usually averaged out over 90 days when used in transactions to smooth out short-term volatility. However, a spike in the benchmark to 5.25% on Sept. 17, 2019, — a jump of nearly 3 percentage points —raised analysts’ concerns and temporarily undermined confidence in the new benchmark. However, that spike was due to a lack of liquidity in the repo system and has been addressed by the Open Market Committee of the Federal Reserve.

FHLB Dallas Offers SOFR Advance Banks who borrow a significant amount of wholesale funds whether from the Federal Home Loan Bank of Dallas (FHLB Dallas) or others generally have done so via transactions backed by LIBOR, and that is already starting to change as the transition to a new benchmark progresses.

FHLB Dallas recently introduced a SOFR-backed advance to its member institutions. “FHLB Dallas is committed to ensuring a smooth transition for members from LIBOR to an alternative index. We have issued debt linked to one alternative index, the Secured Overnight Financing Rate. The new SOFR-Linked advance is one of the tools that can assist members in transitioning from LIBOR,” said FHLB Dallas Chief Business Officer Kalyan Madhavan.

For more information on the LIBOR-SOFR transition, visit www.fhlb.com/sofr.

The Arkansas Banker n Spring 2020

25

LEGAL

ADVICE

But, do I have to give it back?

Supreme Court to revisit effect of bankruptcy on repossessions.

For years, Arkansas bankruptcy courts’ decisions have frustrated secured creditors by requiring them to return repossessed collateral, once the customer filed a bankruptcy case. That rule, however, has recently been questioned in City of Chicago v. Fulton, a case to be decided this term by the United States Supreme Court. The decision may change the application of the law in Arkansas and other states that follow the same rule.

This article will review the facts of the case and the different interpretations of the statute that led the Court to review this case. It will conclude with an examination of the issues the Court will resolve to decide the case and offer some comments for lenders.

Divided Courts.

Facts.

The Third, Tenth, and District of Columbia Circuit Courts of Appeal disagree. Their decisions conclude a creditor does not violate the automatic stay by keeping possession of repossessed property in which the bankruptcy estate has an interest. In these jurisdictions, creditors may retain possession of their collateral until a bankruptcy court decides the debtor’s request for possession, so creditors get an opportunity to seek adequate protection of their rights before they must return their collateral to the debtor.

Like most cities, Chicago imposes fines for traffic offenses. If an owner has three or more unpaid violations, Chicago may immobilize a car and, after a day, may impound the car and assert a lien for unpaid fines. Four owners had their cars impounded for unpaid fines. Each filed a Chapter 13 bankruptcy, claimed their car was property of their bankruptcy estate, and asked for the car to be returned. The City declined, claiming it would lose its possessory lien if it returned the car, and offered to return the automobile when the debtor paid the fines. The owners responded by asking the bankruptcy judge to sanction the City for violating the automatic stay claiming the City’s refusal to turnover the car was an exercise of control over property of the bankruptcy estate, contrary to section 362(a)(3) of the Bankruptcy Code.

Four bankruptcy judges each found: (i) the City violated the automatic stay by “exercising control” over estate property; (ii) the City should return the automobile; and (iii) the City should be sanctioned. The City appealed all four cases, which were consolidated for appeal. The Seventh Circuit—which includes Illinois—upheld the bankruptcy court’s ruling based on its earlier decision in Thompson v. General Motors Acceptance Corp.

There, the Seventh Circuit had held that a secured creditor must comply with the automatic stay and return a borrower’s repossessed vehicle after the borrower files bankruptcy.

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This issue has divided courts across the nation. The Seventh Circuit is not the only court to apply the Bankruptcy Code in this way. Four other courts—the Second, Eighth, Ninth and Eleventh Circuit Courts of Appeal—follow the same rule: creditors must return repossessed property to the debtor upon receiving notice of the bankruptcy or else risk sanctions for violating the automatic stay. Arkansas is part of the Eighth Circuit, so this rule is the law in Arkansas and the basis for the line of Arkansas bankruptcy court decisions that has frequently frustrated secured creditors, particularly automobile lenders.

These differing interpretations complicate lenders’ decisions since how this issue is resolved depends on where the debtor filed bankruptcy. The Supreme Court took the case to address this divergence and to determine whether an entity that passively retains property in which the bankruptcy estate has an interest has “an affirmative obligation under the automatic stay” to return the property to the debtor or the bankruptcy trustee immediately when a bankruptcy petition is filed. To answer this question, the Court will likely address two issues.

One issue is the proper interpretation of the phrase an “act to exercise control over estate property” used in the Bankruptcy Code’s automatic stay provision, section 362(a)(3). What does the word “act” mean in this context? Five courts have held that failing to immediately turnover the debtor’s repossessed property is an act that violates the automatic stay. Three other courts have held the creditor’s refusal to return property to the debtor is a passive omission, not an “act,” so the stay is not violated.

The second issue involves the nature of turnover rights. Under section 542, an entity who during a bankruptcy case has “possession, custody, or control” over property of the estate that the debtor has scheduled as exempt or that may be used, sold or leased by the trustee or debtor, must deliver the property to the trustee and account for the property or its value. The City of Chicago was adamant the debtor had to prosecute an action for turnover and obtain an order from the bankruptcy court before it was obligated to surrender the automobiles.

That was the practice generally in Arkansas until bankruptcy courts began requiring the return of repossessed property to the debtor upon the filing of a bankruptcy petition. The view that turnover rights are self-executing favors debtors, while the view that a proceeding is necessary favors creditors by giving them an opportunity to seek relief from the stay or adequate protection.

The Easy Way to Increase Safety at Your Bank

Conclusion.

Arkansas lenders should abide by the current rule to immediately turnover repossessed property of a debtor upon receiving notice of a bankruptcy filing, at least until the Supreme Court resolves these issues—likely before its June recess. In the interim, Arkansas lenders can still learn from this case.

Unlike the City of Chicago, who saw the owners obtain confirmation of unfavorable Chapter 13 plans, Arkansas lenders would be well advised to consult their counsel upon receipt of a bankruptcy notice. Creditors may be able to object to confirmation, seek adequate protection, seek relief from the automatic stay or take other actions to protect themselves. As Chicago’s example shows, ignoring a bankruptcy filing may have significant, undesirable consequences.

About the Author Johnathan Horton is a partner at the law firm, Wright, Lindsey & Jennings LLP. A member of the firm’s business litigation team, he represents banks, credit unions, and other secured lenders in a variety of litigation including before bankruptcy courts.

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The Arkansas Banker n Spring 2020

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Will Competition in Banking Markets Follow the Airline Industry?

Golden Eras, Past and Present

Millennials may find it hard to believe that there was a time not long ago when air travel was somewhat pleasant. Tickets were inexpensive, leg room was plentiful, security lines were short, and checked luggage was included in the price. Planes were rarely full, which meant that a passenger could fly standby and take a more convenient flight with no change fees.

Those golden days of flying in the 1980s and 1990s were possible because deregulation of entry barriers in 1978 eliminated the airline industry’s primary source of market power. The entry of new airlines and expansion of existing ones led to an excess supply of seats, falling prices, and eventually bankruptcies and consolidations. Today, just four airlines dominate the U.S. market, and since the early 2000s, they have asserted their collective market power to squeeze prices up and comfort out, at least for those in Economy class.

The banking industry is currently in its own golden era for consumers. The last significant restrictions on geographical deregulation that limited bank entry into new markets were cast aside by 1997, and like the airlines, the industry is experiencing fierce competition, excess supply, low prices, and steady consolidation. The adoption of mobile banking only accelerates the consolidation trend because banks can achieve wider geographical footprints without having to build branches.

Over the longer term, will the banking industry go the way of the airline industry where a small number of banks ultimately survive and drive up prices while squeezing the “comfort� out of banking? Will millennials reminisce to their children about a time when bank branches were on every corner, lending rates were low, and checking accounts were free?

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Answers to these questions ultimately depend upon the survival of community banks because these banks limit the ability of the largest banks to tacitly collude to raise prices in the same way that discount airlines (if they survive) disrupt the pricing power of the major airlines. There is little doubt that banking competition will continue to weaken over the long run because bank shareholders wish to maximize returns, and consolidation will continue in markets where excessive competition reduces profits below alternative investment opportunities.

Unlike the airline industry, however, a natural barrier to consolidation exists in the banking industry that leaves plenty of space for community banks to co-exist with the largest banks.

That barrier is the competitive advantage held by community banks in relationship lending, which prevents large banks from standardizing small business lending in the same way that most credit card and mortgage loans are processed. Consequently, although the average community bank will continue to grow larger to achieve cost efficiencies, it will retain its focus on relationship lending and provide an important source of competition that benefits consumers and small businesses.

This article describes the changes in the number and geographical prevalence of community banks across the U.S. between 1995 and 2018, and it documents the importance of community banks to small business lending.

Bank Consolidation Trends

The consolidation trend among banks has been relentless.

The number of U.S. commercial banks has declined each year since 1984 as states increasingly permitted intrastate and, to a lesser degree, interstate banking. The year 1995 set the record of 608 mergers following passage of the Riegle-Neal Interstate

Banking and Branching Efficiency Act of 1994. The Act allowed bank holding companies (BHCs) to acquire banks in any state beginning September 29, 1995, and they could consolidate interstate charters into a single branch network after June 1, 1997. Between 1995 and 2018 the number of banks declined more than 50% from 9,943 to 4,715.

Because community banks (defined here as banks with inflation-adjusted assets less than $1 billion) comprise most of the banks in the U.S., it is not surprising that these banks accounted for 90% of acquisition targets between 1995 and 2018. The solid black line in Figure 1 shows the total number of unassisted mergers by year, and each column shows the number of mergers where the target was a community bank. Of the 7,262 unassisted mergers over that period, community banks were the targets in 6,496 of them.

Figure 1. Mergers Involving Community Banks

Figure 2. Community Bank and Thrift Deposit Share by County in 1995

Source: FDIC Summary of Deposits

Figure 3. Community Bank and Thrift Deposit Share by County in 2018

Source: FFIEC National Information Center, Call Reports, and author’s calculations

Figure 1 also shows that about half the acquired community banks between 1995 and 2018 were acquired by other community banks. The light-shaded portion of each column represents the number of mergers where both the target and acquirer were community banks (BOTH), and the dark-shaded portion represents mergers where only the target was a community bank (TGT ONLY). Of the 7262 unassisted mergers, community banks were both acquirer and target in the 3233 (44.9%) of them. In sum, the acquisition of community banks is the primary reason for the sharp decline in the number of bank charters and the growth in the average size of community banks over the last several decades.

Community bank presence across the U.S.

Given the rapid decline in the number of community banks, it is interesting to observe how the decline is spread across the U.S. Figures 2 and 3 plot for 1995 and 2018, respectively, heat maps of U.S. counties where darker shades represent higher percentages of deposits held by community banks and thrifts. Figure 2 shows that the western region and to a lesser extent, the eastern region, had fewer community bank depos-

Source: FDIC Summary of Deposits

its in 1995. Figure 3 shows a widespread decline in the share of community bank deposits in U.S. counties in 2018. In 1995, the average county in 33 of the 50 states plus Washington D.C. had more than 50% of its deposits held by community banks.

In 2018 that number had fallen to 21 states. Nevertheless, the central region of the country shows a relatively dense community bank deposit share, and banking markets with more community banks tend to be more competitive than markets with fewer community banks.

Relationship Lending as a Barrier to Entry

The sharp decline in the number of community banks between 1995 and 2018 especially in the eastern and western portions of the country suggest that the banking industry is heading down the same path as the airline industry where a few large banks will dominate the market and use their market power to raise prices and cut services. However, unlike the airline industry, an important constraint exists that limits the ability of large banks to underprice community banks in certain markets. That constraint is the comparative advantage that community banks have in relationship lending.

(Continued on next page.)

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(Continued from previous page.)

Figure 4. Small Business Loans by Bank Type

Relationship lending is a process that relies heavily on the accumulation of soft information about the prospective borrower to evaluate creditworthiness. Soft information is the subjective, nonquantitative knowledge of the creditworthiness of the loan applicant that is collected by the lender through repeated personal interactions. Examples of soft information include assessment of the business owner’s character along dimensions such as ethical standards, managerial skills, drive and determination, creative thinking abilities, and sincerity of the commitment to repay the loan. It also includes intimate knowledge by the lender of the local economy, real estate markets, and the applicant’s reputation in the community.

This information is difficult to ascertain from a distance.

Community banks have a competitive advantage in small business lending because relationships between borrower and lender are critical. Whether start-ups or established firms, small businesses tend to have scant financial information to provide lenders to help evaluate the firm’s actual or potential cash flows. Soft information is needed to supplement the lack of hard information. Because the collection of soft information is labor intensive, the credit evaluation process cannot be standardized to take advantage of economies of scale, which inhibits the ability of large banks to provide small business loans at lower costs than community banks.

Given the similar cost structure, community banks on average are better suited than large banks to provide small business loans. The 2018 FDIC Small Business Lending Survey found that the comparative advantage of community banks in small business lending derives from their speed in processing loans and making loan decisions, prioritizing customer service, providing flexibility in underwriting criteria and lending terms, and knowledge of the local market.

Large banks have a comparative advantage in transactional lending, which includes loan products such as credit card and residential mortgage loans where loans are often made over great distances. In transactional lending, borrower and lender may never meet because the necessary information is quantitative and more easily transferred. It includes information obtained through tax returns, home appraisals, credit bureau reports, and credit scores. The availability of such hard information allows the lending process to be standardized through use of computers and other technologies, which generates a cost advantage over community banks through scale economies.

Despite the community bank competitive advantage in relationship lending, large banks have made substantial gains in small business lending since 1995. Figure 4 plots the dollar amounts in billions of U.S. dollars of small business loans held by community banks and large banks between 1995 and 2018.

Total small business loans held by banks of all sizes rose from $370 billion in 1995 to $707 billion in 2018. Community bank loans outstanding in 2018, however, were similar to their levels in 2004 while large bank loans have continued to grow. Figure

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Source: Call Reports, and author’s calculations

Figure 5. Community Bank Share of Small Business Loans

Source: Call Reports, and author’s calculations

5 plots the share of small business loans held by community banks. The solid line in the figure shows that the loan share has fallen from 76% to 52% between 1995 and 2018.

Why have large banks been able to take market share from community banks in a market where relationships are so important? The FDIC small business lending survey offers some clues. Large banks have two advantages in small business lending over community banks. First, they provide greater convenience to their customers through a wider array of products and services combined with a large branch network. Second, they are far less likely to require collateral (but more likely to require guarantees), perhaps because they are better able to diversity credit risk across a larger number of small business loans, or because they tend to lend to more established small businesses that have more quantifiable financial information and strong cash flows.

The recent gains made by large banks in the share of small business lending have come exclusively from commercial and industrial (C&I) loans. C&I loans accounted for about half of all small business loans in 2018. The dashed line in Figure 5 is the share of small business loans excluding C&I loans held by

community banks. The 69% share in 2018 is the same share community banks held in 2001. Loans secured by nonfarm nonresidential properties and loans to small farms are more impervious to standardization and scale economies than C&I loans, and these loan types provide a persistent market niche for community banks.

Central Arkansas Gets a New Partner

Conclusion

The presence of community banks in banking markets is important not only to provide small business loans to firms that otherwise may not have access to funding, but also to preserve competition. If large banks were able to dominate all aspects of lending, only a small number of very large banks may survive, increasing their ability to tacitly collude. This result would mean higher prices and reduced services for the typical bank customer, similar to the evolution in the airline industry.

Unlike the airline industry, natural barriers to entry will continue to limit the ability of large banks to drive out community banks. The difficulty of standardizing relationship lending suggests that community banks will continue to play a vital role in promoting competition and providing credit to small business.

Timothy J. Yeager is Professor of Finance and holds the Arkansas Bankers Association Chair in Banking at the University of Arkansas.

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The Arkansas Banker n Spring 2020

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On the Road to

Economic & Financial Literacy

By Claudia Utley, Economics Arkansas with Amy Mileham, Grace Hill Elementary School, Springdale, AR

Fourth-grade teacher Amy Mileham of Springdale makes teaching economics and personal finance a priority. As a result, her students master skills such as basing their decisions on the PACED model, writing competitive business plans, and budgeting their allowance and classroom earnings.

Not surprisingly, none of the students passed the initial vocabulary pretest. Concepts like supply, demand, entrepreneur, producer, scarcity, human capital, and more, were completely unfamiliar to them.

“Economics education is the glue that holds all other subjects together. It shows my students why they need to learn other subjects and helps them look toward their futures,” Mileham commented.

But Amy made the learning enjoyable and easy, and progress was fast. She started by reading the popular children’s book The Lemonade War to the students and initiated daily discussions about the economic terms in each chapter. Competition, profit, marketing, and ethics all featured large.

Amy’s classroom projects have taught the students skills that will benefit them a lifetime. She has also earned the Gifted & Talented teacher at Grace Hill Elementary School, Springdale School District and numerous awards over her 22-year long teaching career. Most recently, she was honored as one of Arkansas’s Economics teachers of the year, winning a 2019 Bessie B. Moore Award from Economics Arkansas for her project “Truckin’ through Economics.”

Over six weeks in April and May of 2019, Amy led her 28 fourthgrade students through an interdisciplinary unit that involved math, literacy, and economics. The youngsters learned key economic principles by reading several chapter and picture books, participating in classroom economics projects, creating their own 3-D taco truck, and preparing and selling tacos during the school food festival. At the end, they not only aced their vocabulary activity, but also earned $500. They came a long way in a short period of time.

“My students had not experienced much economics teaching before coming to me,” Amy recalled. “They were intimidated by the [economics] terms when I first introduced them.”

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The students read two other children’s books, each illustrating additional economics principles, and experienced first-hand the benefits of free, voluntary trade by trading paper bags filled with little tokens and treats.

Amy hung posters of each concept in the classroom as the students learned them. During a field trip to a baseball game, she quizzed her students on economic terms and asked for examples for natural, human, and capital resources.

In the third week, she instructed the students to construct their own 3-D model taco trucks and design taco menus (Top photo, opposite page). Which marketing would bring customers to their business? Which gift items—fashioned from duct tape by the students (Bottom photo, opposite page) —would sell best?

“This was a wonderful way to tie math (area/perimeter) into our economics unit. The students learned so much about marketing, scarcity, and being an entrepreneur with this activity,” Amy said.

On the day of the food truck festival, they soared (Middle photo).

Amy said all she did was scoop nacho cheese and the students took care of the rest: marketing, taking orders, food preparation, delivery, festival games, production of duct tape crafts, selling duct tape crafts, host/hostess responsibilities and clean-up. It was a bona fide market production, all handled by fourth-graders.

(Left) Students constructed 3-D taco trucks and designed menus to attract potential customers.

“The students really used their knowledge of producers/consumers, goods/services, and specialization during our festival,” Amy stressed.

The class served 40 teachers and raised $500 selling foods and duct tape crafts. What did they do with the money? Amy taught a three-fold approach: spend some—which they did with ice cream cones; save/invest some—they purchased lock boxes and locks to be used for break-out activities for years to come; and give some—they made treat bags for patients at Arkansas Children’s Hospital and the local fire department and they donated to two classmates to pay for their participation at a Youth Leadership program in Washington, D.C., during the summer.

One final triumph rounded out the project: the post-test. Unlike the first time the students took the vocabulary test, this time, all of them completed the task in full and most with time to spare. “They really knew the concepts,” Amy said. “Not only were they able to match the definitions. They were able to give me real-world examples.”

Almost six months later, Amy stood in the Great Hall of the Clinton Presidential Center in Little Rock and accepted “The Bessie.”

Her “Truckin’ Through Economics” project had won her this coveted award presented by Economics Arkansas each year to honor excellence in economic teaching.

(Below) Students took charge at the food truck festival.

(Below) Students made gift items from duct tape to sell.

Economics Arkansas is a non-profit educational organization that teaches educators like Amy how to integrate economics and personal finance into the classroom curriculum. All their programs are approved by the Arkansas Department of Education for professional development credit, grade-appropriate, standards-aligned and project-based.

The latter is key to success, according to Amy. “I truly believe that application [like her “Truckin’ through Economics” project] is the best gage of understanding. My students hit it right out of the park!”

Teaching economics to children is an excellent way to help them develop smart saving and spending habits early in their lives. Another example of smart spending and saving is Save10 which is a specific call to action targeted at women to save at least 10% for retirement. Save10 is a bank supported campaign.

Women have longer life expectancies than men, step out of the workforce more often as caregivers, and make less money than their male counterparts. This means saving is more critical for the female population. To ensure the gender wealth gap continues to close, banks must grab the opportunity to play a key role in helping people with their finances.

A bank that is committed to teaching people healthy saving habits and backing a challenge designed to educate and help normalize savings is a bank anyone can get behind. The bottom line is what helps people build weath helps banks make money.

For more information on the Save10 movement, please visit save10challenge.com.

The mission of Economics Arkansas is to equip PreK-12 schools with standards-based resources and professional development to teach economics, personal finance, and the free enterprise system using practical, innovative and inspiring methods. For more information on Economics Arkansas visit www.economicsarkansas.org.

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Considerations for Successfully Defining Your Target Market

By Julia A. Gutierrez Watching the Super Bowl is as much about the game as it is about the commercials. If you stop and think about it, all the commercials are geared to a target audience. Simply put, target marketing is aiming your product or service towards a specific group of potential consumers.

It involves concentrating your marketing efforts on a group of consumers who are most likely to buy and use your product. It can be the key to success for a business because marketing to the right group has the potential to attract new business and increase sales. Most successful business owners would agree that target marketing is one of the first steps in a good business plan and the most effective way to optimize your resources. As simple as the concept of target marketing may be, there are a number of challenges that coincide with the notion. A great deal of brainstorming and planning are essential steps in the process in an effort to determine who should be included in this target group and what products or services would be most beneficial.

You wouldn’t dive into a body of water without having some idea of what you’re jumping into.

Most importantly the depth, threats or elements that could possibly get in the way of a successful dive. Target marketing is no different. If you are going to dive into a very specific market, there are several factors to consider. So, let’s talk how this applies to financial institutions. In a perfect world, we could offer a “one size fits all” financial product and be perfectly successful, but unfortunately, it’s not that easy. A range of factors should be considered to ensure you are effectively and efficiently reaching a targeted group of individuals who will benefit from the products or services being offer resulting in the increase of sales and business. Before you can clearly define your target audience, you should at a minimum, consider the following factors.

Identity and Analyze

What type of product or service are you planning to market? Determine the features or characteristics you plan to incorporate into your financial product and then outline the benefits that product may provide. Identify your potential customer base. Analyze your current customers and the products and services they are utilizing and think about whether other potential customers may also utilize these financial products or services. Often there is a correlation between certain products and the individuals using them. Therefore, evaluating the common interests and characteristics of your existing customer base may be beneficial to broadening that customer base. Identify the features and benefits of the products or services you are planning to offer. Determine how your product or service, based on its highlights, can improve the consumers’ life, whether that be free ATM costs or low interest lines of equity.

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Demographics & Psychographics

Determine who may have a need for the financial product or service you are considering. Take into consideration who will actually buy or utilize those products and services. This means first looking at your geographical location to establish the size of your potential marketing area. Build onto that concept by considering factors such as age, sex, income level, occupations, marital status, or the backgrounds of the targeted area. Psychographics include more personal characteristics.

When analyzing your demographics, consider influences like lifestyle, behavior, interests or hobbies of the individuals your marketing group would include. For example, if you are planning to market a financial product in a college town, it would be advantageous to consider factors such as age, income level, and interests of your targeted area. These factors alone give you a clearer idea of what delivery methods may be most the most effective for reaching your based targeted group. Which leads us into the next area of consideration.

Determine how your product or service, based on its highlights, can improve the consumers’ life, whether that be free ATM costs or low interest lines of equity.

Marketing Resources and Methods

Often, we get caught up in using methods of delivery that we know are successful based on past data. Unfortunately, in the ever-evolving world of technology and social media, we may be selling ourselves short if we rely on the past when it comes to marketing. The targeted audience must be the focal point when choosing the best approach for advertising a specific set of financial products and services. If your audience is unlikely to use social media, perhaps a paper brochure would be an excellent form of marketing. However, if your audience is technologically driven, social media may be a better form of communication. The goal is to determine the best way to ensure your targeted audience receives your message.

Competition

What’s better about the financial product you are offering than your competitors. An analyzation should be conducted of your competitors offered products and service as well as the customer base they are targeting. If your financial institution is offering the same product or a product with similar features, you want to either target a different area or uncover a niche in the market that they may not be overlooking. If it seems like everyone in your area is focused on loan products, offering a deposit product with better features and customer service may just the right idea to beat out your competition and expand your customer base. And who knows, you may be able to offer that loan product after all if your marketing can get that potential customer into your financial institution.

Regulatory Compliance and Limitations

Compliance and constraints are always crucial factors which must be considered in marketing. Regulatory limitations can put a real damper on an entire marketing plan if not carefully researched and resolved. Now more than ever, regulators are taking a closer look at the marketing and advertising efforts of financial institutions. Words such as unfair, deceptive or abusive are those scary areas of compliance that we are all trying to avoid. While there are plenty of regulations which govern the marketing of financial products and services, if you are clear, concise, and fair, that is half of the battle for success from a regulatory standpoint. The considerations noted above serve as a compass for the direction in which to market, but keep in mind that the final goal is to achieve a successful plan for target marketing while also serving your market fairly. Although you may focus on a target audience, keep in mind that this does not limit your customer base to that target group.

Afterall, the utilization and benefits of your products or services should be offered fairly and equally to anyone meeting the requirements or standards of the offered product.

Conclusion

In the dynamic world of marketing, targeting your audience is the key to success. Focusing on the considerations discussed throughout can be the difference in defining your target audience and meeting those sales goals or leave gaps and failing to meet those objectives. Once you’ve met the challenge of targeting your market, assess your decisions and be willing to change your audience as the market evolves. Remember, the key to success is getting your message out.

About the Author

Julia A. Gutierrez brings years of financial industry experience to the Compliance Alliance team. She began her career in banking in 2000 while receiving her Bachelor of Business Administration degree in Finance from the University of Alabama. Julia has served as a Risk Management and BSA Officer, assisted in the development of an enterprise wide risk management and compliance program for a de novo institution, assisted in the compliance remediation efforts for an institution referred to the DOJ, and was a Senior Compliance Advisor for a large regulatory compliance consulting firm. In addition to her experience in the financial industry, Julia also serves as a commissioned officer in the United States Army Reserves.

As a Compliance Officer with Compliance Alliance, Julia works in the Education Department where she is a presenter for compliance training, seminars, workshops and conferences nationwide. She also assists with policy and document reviews, research and development of new training material, and product development.

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Arkansas Treasury Transparency Auction

By Dennis Milligan Arkansas Treasurer of State

I first started considering running for the office of Treasurer of State after learning that the investments of the state of Arkansas were being concealed and that favoritism was being given to certain brokers. As a small businessman and citizen, I was saddened by the fact that taxpayer dollars were being used not to ensure the greatest returns for the people of Arkansas but to enrich someone’s personal finances in return for kickbacks.

When running for the office, I made a very public pledge that my office would be transparent with the state’s investments and would not play favorites with state funds. The concept of an electronic “blind bidder” system was formed and was a top priority of mine after being sworn into office in January of 2015.

It took time and money to find the right firm to help us create the Arkansas Treasury Transparency Auction, or ATTA, for short. The vision and goal of ATTA was threefold: 1. To set up a system that was transparent and fair for all banks to compete in. This would make it impossible for any treasurer moving forward to show favoritism to one bank over the other.

2. To have a system that was efficient for my small investment staff. Before ATTA, my investment team would spend several hours each day handling certificates of deposits – specifically, calling and emailing banks throughout the state about the placement of public funds.

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3. To get the best return possible for the taxpayers. In the past, the Treasury didn’t have an effective internal process to watch the ever-changing markets for what a fair value of CD funds were. I have a fiduciary obligation to the taxpayers to get a fair market value for funds.

The ATTA program went online in August of 2018. My staff and I were very pleased with the initial results. The returns we were getting were fair market value or better. Plus, the time my team spends placing CDs in Arkansas banks has reduced significantly. However; my office did get feedback from chartered banks in rural areas of the state that they were having internet connectivity issues. Delays and lapses in high speed internet service – which is unfortunately common in rural Arkansas – were causing some banks to miss out on getting a bid during an auction. Some smaller banks also reported to us that they felt as if they were being outbid by larger banks, therefore cutting them off from being able to compete fairly.

I have listened to all of the feedback we received, and directed my staff to work in close coordination with the Arkansas Bankers Association (ABA) to come up with a solution. From that, I am pleased to announce the start of a new CD program as part of the ATTA program.

Here is how it will work: • ABA will provide our office with a list of state banks and their asset size.

• Each calendar quarter, we will set aside $50MM of Treasury funds for two different “asset tiers” of banks.

– The first tier is for banks with asset holdings up to $250MM. That tier will receive $25MM. The bids will range from a minimum of $500K to $1MM. – The second tier is for banks with assets between $250MM and $750MM. That tier will also receive $25MM. Those bids will range from a minimum of $500K to $2MM. • We will allocate $10MM for the first month, $7.5MM for the second month and $7.5MM for the third month to be “auctioned.” The CDs will be for 90 days.

• We will conduct an “auction” on the second Tuesday of each month – at 1 p.m. for Tier I banks and at 1:30 p.m. for Tier II banks. Both “auctions” will be open for 15 minutes.

These “auctions” will be non-competitive. Simply put, my office will set the offering rate based upon the 3-month US Treasury yield. The rate will be set moments before an auction takes place and will be rounded to the nearest 100th. Unlike the competitive bids, a bank will not be able to offer a higher rate.

(Banks who participate in this process are not excluded from participating in the competitive bidding process that already occurs.)

When an “auction” goes live, the only thing you will need to do is put in the amount your bank would like to have. It won’t matter if you are the first or last bank to bid. You will either get the full amount or a proportional amount depending on how many bids are made. Any funds left over in Tier I auctions for that specific month will be transferred over to the Tier II auction.

I am excited about this new program and expect it to address some of the concerns that have been raised since we began the ATTA program in 2018. I understand your role in making Arkansas a thriving economic engine for jobs and development. I understand that you give back to your communities, local charities and schools. I believe a good and open partnership between the State Treasury and Arkansas’ chartered banks is critical for the state as well as for the banking industry in Arkansas. We expect this new program to be completed and the first auction to be held on Tuesday, March 10, 2020.

In closing, as with any new program, there may be adjustments that need to be made as time progresses. I vow to continue to listen to any feedback you may have and work with you to help level the playing field. Let’s make this a win-win for all of Arkansas.

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The Arkansas Banker n Spring 2020

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New CCPA Requirements for Financial Institutions Moises Brito, CPA, CISA, CAMS, CIPP Senior Managing Consultant – BKD, LLP IT Risk Services

As of January 1, 2020, California’s new privacy statute imposes several new requirements on organizations that obtain and process consumer personal information of California residents.

The California Consumer Privacy Act (CCPA) affects companies that do business in California and meet one of the following criteria: • Companies that buy, sell and share the personal data of 50,000 or more consumers, households or devices • Companies that have revenue of at least $25 million • Companies that derive 50 percent or more of their annual revenue from selling consumers’ personal data Based on the description of the law’s applicability, many banks and financial institutions that have consumers in California may be affected by the CCPA. Luckily, the CCPA grants an exemption for personal information subject to the GrammLeach-Bliley Act (GLBA), which imposes considerable obligations on financial service providers to protect consumer information.

“Financial institutions” are providers that extend financial products or services such as loans, financial investment advice or insurance (15 U.S.C. Sections 6801(a) and 6809(3); 12 U.S.C.

§1843(k)). The GLBA requires companies to determine and implement processing activities and controls that may alleviate risks to financial services’ customer information, particularly focusing on areas related to information security such as policies, procedures and people. Financial institutions in particular should note that the CCPA exempts “personal information collected, processed, sold, or disclosed according to the federal Gramm-Leach-Bliley Act, and implementing regulations …”

(Cal. Civ. Code §1798.145(e)).

Because the term “consumer” encompasses a larger data set under the CCPA as opposed to the GLBA, it also may include vendors, service providers, consultants and contractors that are engaged by a company. These terms, along with the specific definition of personal information per the law, add to the complexity that financial institutions and banks face. “Personal information” is information that “identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular consumer or household” (Cal. Civ. Code §1798.140(o) (1)). The CCPA is broader in scope than the GLBA, and financial institutions are likely to possess such data. The CCPA includes personal information that can be used to identify a consumer as opposed to only banking information. This information

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What better way to get your services out to Arkansas bank CEOs, presidents and marketing personnel than through the pages of the Arkansas Bankers magazine. Our quarterly magazine published by the Arkansas Bankers Association is sent to banking institutions statewide.

Go to www.arkbankers.org for a media kit that includes pricing and deadlines for our issues or give us a call at 501.376.3741. We want to hear from you!

includes “identifiers such as a real name, alias, postal address, unique personal identifier, online identifier, Internet Protocol address, email address, account name, social security number, driver’s license number, passport number, or other similar identifiers” (Cal. Civ. Code §1798.140(i)).

Cultivate Relationships through Participation

While the CCPA exempts financial transaction data that fulfills the financial product or service, it doesn’t exempt consumer personal data obtained through marketing purposes. Also, the GLBA doesn’t regard consumer data taken or provided to an affiliate, and the CCPA doesn’t provide an exemption. The CCPA requires that consent is obtained from each source that receives the consumer data individually—meaning bank A can’t share consumer data collected with affiliate B. Financial institutions must understand the consumer data they currently hold and its compliance requirements. Banks should consider getting advice from trusted sources to help manage their CCPA exposure.

Based on a recent report (https://iapp.org/media/pdf/resource_center/CCPA_Readiness_SecondWave.pdf ) by the International Association of Privacy Professionals, only about 2 percent of companies are fully compliant with the CCPA. Many companies are still determining if the CCPA applies to them and to what measure.

Enforcement of the CCPA by the Attorney General of California commences on July 1, 2020,. Per Cal. Civ. Code §1798.185, enforcement covers many areas, including “establishing any exceptions necessary to comply with state or federal law, including, but not limited to, those relating to trade secrets and intellectual property rights, within one year of passage of this title and as needed thereafter.” Cal. Civ. Code §1798.185(3) requires banks to evidence the distinction between the GLBA and CCPA and how the data falls within the GLBA, CCPA or another federal regulation.

Financial institutions should perform data-validating and data-mapping procedures to understand their CCPA posture. It’s important to note that the source of a collected data point could affect the treatment that data point receives. Information gathered through general data collection methods will result in the need for CCPA compliance, but those compliance requirements may not apply if the information is gained by providing some types of services. As with any new regulation, financial institutions should review their unique circumstances to ensure they comply accordingly.

This article is for general information purposes only and is not to be considered as legal advice. This information was written by qualified, experienced BKD professionals, but applying this information to your particular situation requires careful consideration of your specific facts and circumstances. Consult your BKD advisor or legal counsel before acting on any matter covered in this update.

Article reprinted with permission from BKD CPAs & Advisors, bkd. com. All rights reserved.

If building stronger relationships with the financial institutions in Arkansas would be beneficial to your business, or if you need to stay on top of changes, activities, and attitudes of the financial services industry in Arkansas, then there is no better way than to partner with the Arkansas Bankers Association (ABA).

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In an effort to meet the needs of our membership, ABA looks for quality services and products to recommend. Our Associate Members have met the highest standards and are promoted to our member institutions. Membership benefits include a listing in the ABA Bank Directory and the opportunity to network with the Arkansas banking industry’s 17,000+ employees.

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In order to become an Endorsed Vendor, each company must go through a due-diligence process to ensure the products and services offered are a benefit to ABA members.

For more information about ABA memberships and enrollment go to www.arkbankers.org.

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Member News Arvest Breaks Records in 2019 Arvest Equipment Finance (AEF) closed more than $246 million in new production in 2019, a record total for the division of Arvest Bank. This marks the second consecutive year AEF has recorded a 52-percent increase in gross production year-overyear. Additionally, AEF’s total portfolio jumped more than 35 percent year-over-year, from $310.1 million in 2018 to $421.7 million in 2019. AEF is headquartered in Fort Smith, Ark., with locations in Little Rock, Kansas City and Tulsa, and does business throughout Arvest’s four-state footprint.

Arvest Bank announced in February that its mortgage division originated record volume in 2019.

Arvest’s total mortgage loan volume of more than $2.8 billion represents a 39.3-percent increase over 2018 and a 9.2-percent increase over its previous record of more than $2.5 billion, which it set in 2012. Additionally, 2019 marks the fourth time – and second consecutive year – Arvest has topped $2 billion in mortgage loan production.

Purchase-money loans continued to account for the majority of volume in 2019. Purchase-money loans are used to buy a home, as opposed to refinances and other types of loans.

Arvest reported a record $1.46 billion in purchase-money loans in 2019, compared to more than $1.33 billion in refinance loans. Purchase volume has increased year-over-year for five consecutive years.

Arvest Bank Recognized for Economic Development Efforts RMI Business Finance (RMI) has recognized Arvest Bank for its work in partnering on U.S. Small Business Administration (SBA) 504 Loans.

RMI is a Certified Development Company based in Jefferson City, Mo., that delivers SBA 504 Loans to businesses in Arkansas, Kansas, Missouri and parts of Illinois. These loans provide fixed-asset, long-term financing at attractive interest rates.

RMI recognized 24 banks as “Elite Lenders,” including six that received “Platinum Elite” status, the highest distinction available. By maintaining at least eight SBA 504 Loans, Arvest earned that distinction.

The use of SBA 504 Loans must be used for fixed assets – and certain soft costs – including: • The purchase of existing buildings; • The purchase of land and land improvements, including grading, street improvements, utilities, parking lots and landscaping; • The construction of new facilities or modernizing, renovating or converting existing facilities • The purchase of long-term machinery (subject to conditions); • The refinancing of debt in connection with an expansion of the business through new or renovated facilities or equipment (subject to conditions).

Arvest is unique among most local lenders in that it services 99 percent of its mortgage loans, meaning that customers make their payments to Arvest and work directly with Arvest for any needs after their loan closes. Arvest currently services more than 310,000 mortgage loans, totaling more than $59 billion.

Arvest Bank Releases Diversity and Inclusion Commitment Statement CEO’s Message Reflects Ongoing Commitment Arvest Bank announced in February, the public release of its CEO Diversity & Inclusion Commitment Statement. The statement reflects intentional efforts Arvest is making evident to foster a more inclusive environment to both its associates and its customers.

Among other initiatives at Arvest, Hill-Chandler has facilitated engagement and information-gathering sessions with all the bank’s leadership teams and business units across its fourstate footprint, and overseen updates to the bank’s required diversity and inclusion training.

The statement is a continuation of Arvest’s efforts to become more deliberate in its diversity and inclusion efforts. Those efforts include the hiring of Arvest’s first Diversity and Inclusion Officer, LaTricia Hill-Chandler, in March. Prior to joining Arvest, Hill-Chandler served as a senior manager II for diversity and inclusion development in the Global Culture, Diversity and Inclusion Office at Walmart Stores Inc. in Bentonville. She has served in similar positions for Cummins, Inc., Veolia North America, Indianapolis Public Schools and the Central Indiana Educational Service Center, and Indiana University.

“The statement released today is a public proclamation of our belief in the importance of diversity and inclusion, something we have been working on internally for a while now,” said Arvest President and CEO Kevin Sabin, who began his banking career in 1985 and has served as CEO at Arvest since 2012. “It also reinforces the fact that we are here to help all of those who share the places where we live, work and play to find financial solutions for life.”

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Member News First Community Bank Opens New Location & Breaks Ground on Another

First Community Bank Launches Plinqit Savings App

First Community Bank is pleased to announce the groundbreaking and addition of their operations center at 1401 Harrison Street in Batesville, AR, beside the financial institution’s main bank.

First Community Bank has launched Plinqit, a savings app that rewards customers for saving while encouraging them to learn more about personal finances.

The three-story Batesville operations center will be approximately 28,809 sq. ft. and will be connected to the main bank by a sky bridge. The first development phase of the building complex is expected to be completed by the end of 2020 to provide space for 125 employees. Future plans include further expansion of the facility to house additional employees.

First Community also announced its newest banking center located at 1089 Front Street in Conway, Arkansas, to open to provide full-service community banking to Faulkner County.

Conway makes the twenty-sixth location in the bank’s branch network.

The new downtown location will be a one-stop-financial center offering a variety of financial services to its customers. First Community Bank also offers an impressive array of online and mobile banking services. Some of these include mobile banking and deposits, online bill pay, online/mobile account opening and custom eAlerts.

First Community Bank Launches New Hero Rewards Club Bundle First Community Bank of Batesville, Arkansas, is now offering the Hero Rewards Club, a free reward bundle that is available as an add-on to any new or existing checking account for those who are active military and veterans, educators, fire fighters, law enforcement officers and EMTs. “The Hero Rewards Club is our way of saying thank you to the men and women who selflessly serve our communities,” said Dale Cole, chairman and CEO of First Community Bank. “First Community Bank employees share a large sense of appreciation and respect for the important work that these individuals do every day and this program is one way we celebrate these individuals. We cannot thank them enough for their service.”

Hero Rewards Club benefits include a hero-themed debit card, a 50% discount on safe deposit box rental fees, 0.25% interest rate discount on consumer loans, and free retirement consultation and management. Benefits also include a free GenGold® membership, which includes an identity theft and restoration program, travel discounts and cash back, cellular care coverage, discount tickets for many events, local retail discounts and more. Visit First Community Bank for complete details.

Plinqit, an expansion of First Community’s digital offerings, supports the savings needs of customers. With Plinqit’s patent-pending Build Skills™, it is the only platform that pays users for engaging with content. Users can grow their knowledge of personal finances by simply watching a video or reading an article from the Plinqit library and taking a short quiz. Users are then rewarded for learning more about financial wellness.

Plinqit’s ease of use attracted First Community Bank to the tool, but the institution’s desire to help the members of its community achieve their financial goals made Plinqit a perfect fit.

“Plinqit was created to not only help financial institutions, like First Community Bank, broaden their digital portfolio and better engage with customers, but also to help bridge the knowledge gap in personal finances,” said Kathleen Craig, founder and Chief Executive Officer of HT Mobile Apps, creator of Plinqit. “There is a true need for improved financial literacy with 41 percent of Americans reporting that their lack of understanding of finances is holding them back from making financial progress. And, Plinqit has a proven track record – more than 60 percent of users that reach their savings goal continue to save by setting new goals.”

Stone Bank Pledges $20,000 to Mountain View School District for Mobile Phone App Stone Bank has pledged $20,000 over the next four years to help fund the new Mountain View School District mobile phone app. The pledge will be paid out $5,000 per year.

“This new phone app will help us use the latest technology to keep our students and parents in touch with the schools,” said Mountain View School District Superintendent Brent Howard.

“It is critical that corporate partners like Stone Bank stay involved with supporting the schools and our goal to provide a premium education to our students.”

The app is free and now available at all popular app stores and is compatible with all phones. The app allows access to events calendars, staff directory, notifications on cancellations, including a live feed. The app provides information for all the district schools including Mountain View, Rural Special Schools and Timbo Schools.

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Member News Stone Bank recognized as top Arkansas SBA lender Stone Bank was recognized by the Arkansas Division of the U.S. Small Business Administration (SBA) as being the top SBA lender in Arkansas in the category of banks with assets between $250 million and $4 billion. Stone Bank ranks as the number 64 SBA lender in the United States and is designated a Preferred Lender by the SBA. The award was presented at a recent meeting of the Arkansas Community Bankers Association in Little Rock. The award was presented to Stone Bank President and Chief Lending Officer Nick Roach and the bank’s SBA Division President, Vinny Muratore by Edward Haddock, District Director for the Arkansas District of the SBA. (Left to right) Stone Bank President and Chief Lending Officer Nick Roach, Edward Haddock, District Director for the Arkansas District of the SBA and Stone Bank SBA Division President Vinny Muratore.

Created in 1953, the U.S. Small Business Administration continues to help small business owners and entrepreneurs pursue the American dream. The SBA is the only cabinet-level federal agency fully dedicated to small business and provides counseling, capital, and contracting expertise as the nation’s only go-to resource and voice for small businesses.

Farmers Bank & Trust Acquires Bank of Prescott and Opens New Branch in Magnolia Farmers Bank & Trust of Magnolia, Arkansas, and Bank of Prescott of Prescott, Arkansas, are pleased to announce that the Bank of Prescott officially merged with Farmers Bank & Trust.

Farmers Bank & Trust is owned by a privately held holding company, Magnolia Banking Corporation, headquartered in Magnolia. Bank of Prescott operated as a subsidiary of Prescott Bancshares, Inc., in Prescott. With the close of the transaction, Farmers Bank & Trust will have approximately $1.7 billion in assets.

In December of 2019, Farmers Bank & Trust opened a new location in Magnolia located at 1606 Hollensworth Street. The customers can expect full teller and new accounts services, a drive-thru and a notary. In addition, the new location will have an ATM with 24/7 ATM services. The leadership team for the new branch will include Jan Redfearn as Branch Manager.

Monty Harrington, Magnolia Community President, stated, “Farmers Bank & Trust is proud to make another investment in the Magnolia community with the new branch located on Hollensworth Street. We hope to make banking with Farmers Bank & Trust in Magnolia an easy and convenient experience with four full-service branches and two free-standing MyFarmers iTeller ITMs within city limits. We invite everyone to stop by our new location to visit and learn more about how we can help you with your financial needs.”

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The Farmers Bank & Trust Board of Directors announced the officer election of several Prescott employees as they join the Farmers Bank & Trust family after the merger (shown above).

The bank is proud to congratulate the following employees for the following positions: John Brannan, Market President III; Gary McCauley, Senior Vice President/Commercial Loan Officer, Senior; Karen McLelland, Vice President/Data Analyst; Lauren Brown, Assistant Vice President, Retail Loan Officer; Carrie Jones, Assistant Vice President / Branch Supervisor. All employees office at the Prescott full-service branch located at 103 East 2nd Street.

Farmers Bank & Trust Chief Executive Officer, Chris Gosnell, stated, “We are excited to welcome these former Bank of Prescott employees to the Farmers Bank & Trust leadership team. Their vast banking experience and ties to the community will be a valuable asset for our customers and Bank for years to come.”

Member News First National Bank of North Arkansas Employee Charity Jean Day Fundraiser

Cornerstone Bank Announces Expansion into Missouri

The employees of First National Bank of North Arkansas have raised over $45,000 since 2011 by paying to wear jeans on Wednesdays.

Exciting expansion is underway for Cornerstone Bank in the coming months. Charles T. Cross, CEO, Cornerstone Bank, has announced the purchase of property in Cassville, Missouri, where the bank plans to build a full-service banking facility.

This will be the bank’s first location outside the State of Arkansas. A temporary location will be opened in 2020 to serve customers’ needs while the permanent facility is being built.

Given the growth Cornerstone Bank has experienced in recent years with Missouri Clients, Cross felt it was important to be able to serve them close to home and this upcoming expansion into Cassville is a welcomed next step.

Each quarter one of their branches select a local non-profit to raise funds for. These organizations range from the American Cancer Society to Single Parent Funds. Food closets to Senior Centers. Humane Societies to Homeless Shelters. Police Department Shop with a Cop to The CALL. These efforts have funded organizations in our six county service area in Northwest and North Central Arkansas.

The location in Cassville will be a full-service facility and include Cornerstone Bank’s two subsidiaries, Cornerstone Investment Services and Cornerstone Home Mortgage Division, the bank’s brokerage, financial planning and residential mortgage divisions.

Simmons Bank Presented Gift to Junior Achievement USA at #GivingTuesday Press Conference In September 2019, associates across Simmons Bank’s footprint participated in their second annual “Simmons Service Month” by volunteering in their local communities. To support associates’ efforts, the bank committed to make a charitable donation of $10 per hour volunteered.

More than 4,150 volunteer hours were donated by bank associates, resulting in a $42,000 corporate donation to Junior Achievement USA, a nonprofit which will fund work-readiness and financial literacy skills for children across Simmons’ footprint.

Citizens Bank Breaks Ground On New Financial Center in Monticello Citizens Bank recently broke ground on the construction of a modern branch banking facility to be located at 236 U.S. Highway 425 North in Monticello.

The new facility, designed by CADM Architecture of El Dorado and Magnolia, will encompass 6,000 square feet of space for Citizens Bank to provide a full service banking relationship. It will also include a community room that will be available to the public and organizations to hold meetings and celebrations.

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Generations Bank Announces New Hires and Promotions Generations Bank announced the hire of Luke Colley as the Market President for Bentonville and Rogers. Colley will serve as the leader in both markets with plans to have a new Bentonville branch next year.

Colley was born in Fort Worth, Texas, but moved to Arkansas and grew up in Clarksville. In the last 15 years, Colley has seen all sides of banking. Starting as a Teller then moving forward to FSR, Head Teller, Branch Manager, Branch Administrator, Security Officer, Credit Analyst, Loan Assistant, Loan Officer, CLO, and Market President.

Gus Reyes was born in a small town outside of Mexico City and moved to the United States when he was four years, and is a native of Rogers. Graduated from the University of Arkansas in Fayetteville. Gus’s banking career started in 2012 at The Bank of Fayetteville.

He continued his banking career where he then went on to become a Customer Service Representative. In 2014 he was promoted to an Electronic Banking Specialist Co-Leader where he assisted customers with online banking and debit card needs.

Gus was then promoted to Loan Assistant in 2016. He came to Generations Bank in 2017 and was in the Loan Operations Department. Reyes has now been promoted to the position of Hispanic Community Officer for Generations Bank.

Theresa Gilstrap is a native of Van Buren and a graduate from the University of Central Arkansas. Theresa’s banking career started in 2005 in Swansea, IL. She continued her banking career at Generations Bank as a Teller/New Accounts Representative in 2008, and moved on to the loan department as a Loan Assistant in 2012. In addition to her duties as a Loan Assistant, she began working for Generations Mortgage as a Secondary Market Mortgage Lender in 2018. Gilstrap has been promoted to the position of Consumer Loan Officer for Generations Bank.

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Evolve Bank & Trust Names New Appointments Evolve Bank & Trust (“Evolve”) has announced the appointment of Mark Donovan as Chief Credit Officer, succeeding Dan Springfield. After a stellar 40-year career in banking, Mr. Springfield is retiring to spend more time with his family.

Dan Springfield joined Evolve in 2012 and has been instrumental in strengthening the Bank’s credit culture by establishing standards of excellence and best practices for assessing risk in lending. Prior to joining Evolve, Springfield served in a variety of executive roles at First Horizon National Corporation.

Mark Donovan has nearly 25 years of experience in the retail banking sector as well as business and private banking. After completing his MBA at Wake Forest University, he took a position as Vice President of Credit Administration for Main Street Bank, Covington, GA. During the last 17 years, Donovan has held several senior credit positions, the last 10 as the Chief Credit Officer with First Landmark Bank, A Division of National Bank of Commerce. While there, he supervised all of credit administration for the Atlanta Region, which encompasses the loan approval and credit quality of a $980MM loan portfolio.

Simmons Bank Names Community Executive for Conway Market Simmons Bank has promoted Reggie Rose to Community Executive for its Conway market. Rose will oversee the bank’s local commercial lending team with a focus on loan and deposit growth. He previously served three years as a community banker at Simmons, providing banking solutions for business clients that ranged from large corporations to small business operators.

Farmers Bank & Trust of Magnolia Promotes Two

Banking Veteran Janet Moore Joins Stone Bank as Chief Operations Officer

The Farmers Bank & Trust Board of Directors, headquartered in Magnolia, recently announced the promotion of Brandi Ray and Kent McClure.

Janet R. Moore, a 40-year banking veteran, has joined Stone Bank as Chief Operations Officer.

She was most recently chief operations officer and executive vice president with Citizens Bank in Batesville and has also held positions with Iberia Bank and Pulaski Bank in Little Rock. She is a graduate of the University of Tennessee with a Bachelor of Science Degree in Accounting and the Southwest Graduate School of Banking.

Malvern Market President, Scott White, stated, “Brandi Ray and Kent McClure are valuable members of the Central Arkansas banking team. Ray and McClure’s commitment to our community and practiced loan knowledge is an asset for our local customers. I look forward to future growth for both with Farmers Bank & Trust.”

Brandi Ray became Assistant Vice President, Senior Retail Loan Officer. Ray joined the Farmers team in 2010 as a Loan Assistant and her office is in Malvern, AR, at the Bank’s main branch.

Kent McClure was promoted to Assistant Vice President, Commercial Loan Officer II. McClure joined Farmers Bank & Trust in 2018 as a Commercial Loan Officer and his office is in Benton/Bryant, AR, at the Loan Production Office.

Farmers Bank & Trust of Blytheville Promotes Bell Farmers Bank and Trust of Blytheville President and CEO Randy Scott has announced the promotion of Justin Bell to Executive Vice President, and also his appointment to the bank’s Board of Directors.

Justin Bell joined the bank 11 years ago and has led the bank’s deposit operations department, agricultural lending and compliance management program over that time period

Stanley Promoted to Regional Chief Lending Officer, of Chambers Bank John Ed Chambers III, CEO of Chambers Bank, has announced the promotion of Chad Stanley to Regional Chief Lending Officer for Central Arkansas.

Stanley has been at Chambers Bank since May 2000, when he was hired as a Loan Assistant. During his 19year tenure with Chambers, he has been instrumental in growing the Bank’s loan portfolio in north Texas and south Arkansas.

“We are thrilled to have Chad as our Chief Lending Officer of our Central Region,” Mike Donnell, President of Chambers Bank, said. “Chad brings lending experience in both large and small markets which will benefit our customers in Pope and Faulkner Counties. He has been with our company for almost 20 years and has been a vital part in the growth of the commercial and consumer markets that he has served.”

In his new role, Stanley will oversee the lending team in Chambers Bank’s newest markets – Russellville, Conway, Dover and Atkins. “I am excited for this new role with Chambers,” Stanley said. “I love working for a community bank that focuses on taking care of our customers and communities.”

Stanley also appreciates the opportunity to continue to work closely with the Chambers family.“ Chambers is a family-owned bank that values its employees and customers,” Stanley said. “I have appreciated the support that the family has shown me during my time here and look forward to helping them reach even more customers and communities in the coming years.”

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First Community Bank Strengthens Operations with New Additions First Community Bank has hired Lori Melton as Senior Vice President of business development for the Conway location on Front Street. Melton comes to First Community Bank with 33 years of banking experience.

Lori is a graduate of the University of Central Arkansas, the American Bankers Association School of Bank Marketing and the Faulkner County Leadership Institute (now CALI).

First Community Bank also announced that Eric Lesh has been hired as Vice President of Commercial Lending for the Jane location in Missouri. Lesh comes to First Community Bank having previously served in various roles in the banking industry including vice president commercial loan officer, relationship manager and commercial credit analyst.

Troy Duke joins the First Community Bank as Senior Vice President of Commercial Lending for the Saddle Creek location in Little Rock. Duke comes with 35 years of banking experience. He completed his undergraduate degree at Henderson State University and received his master’s degree from UALR. He and his wife, Shannon, live in Little Rock.

First Community Bank has promoted Brian Emison to Chief Deposit Officer for the company.

Emison will be assisting the bank in deposit strategy development to support the continued growth of the organization.

Emison has more than 12 years’ experience in the banking industry and came to First Community Bank in 2013.

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Home BancShares, Inc. Names Vice Chairman of Home BancShares and Executive Chairman of Centennial Bank Home BancShares, Inc., parent company of Centennial Bank, announced that Jack Engelkes, Director of Home BancShares, has been named as Vice-Chairman of Home BancShares and Tracy French, President and Chief Executive Officer of Centennial Bank, has also been named as Chairman of Centennial Bank. Home BancShares Chairman John Allison will serve as President and Chief Executive Officer of Home BancShares.

These positions are being filled by the retirement of Randy Sims. Over the past twenty years, Sims has served as Executive Chairman and President of Centennial Bank as well as President, Chief Executive Officer and Vice-Chairman of Home BancShares.

On the announcement of being named Vice Chairman, Jack Engelkes said, “I have been a part of this amazing institution from inception and now welcome the opportunity to serve in another role.”

“I am pleased to accept the role of Chairman of Centennial Bank,” said Tracy French. “I’m also pleased to welcome Jack as the Vice-Chairman of Home BancShares; he is an excellent choice,” French added.

Stone Bank Adds to White Hall Staff Robin Dennis has joined Stone Bank in White Hall as a teller and customer service representative.

She has over 12 years banking experience.

Stone Bank is located at 7739 Sheridan Road in White Hall and also has offices in DeWitt, Gillett, Little Rock, Mountain View and Harrison.

The Arkansas State Bank Department Annouces Hires and Promotions The Arkansas State Bank Department (ASBD) has promoted Bob Henry to Assistant Deputy Commissioner. Henry has a degree in finance in accounting from Southern Arkansas University in Magnolia, and has served in the ASBD Examination Division since May 1992. Henry has been a certified fraud examiner (CFE) since 2013, his ASBD experience includes serving as the certified examination manager for the ASBD Large Bank Examination Group, and most recently, as the certified examination manager for one of our four commercial examination groups. Henry will continue to be located in our Little Rock office.

The ASBD has also promoted Raychel Pendergist to Bank Exam Manager for a Little Rock group manager position. Pendergist will manage a team of eight Little Rock based examiners who conduct safety and soundness examinations. Pendergist has over eight and a half years of service with the Bank Department In addition, the ASBD has hired Peyton Tillman, Katie Potter, and Aaron Lockwood. Peyton Tillman will be a Bank Examiner for the Jonesboro Regional Office.

Tillman has a bachelor’s degree in finance (with an emphasis in banking) from ASU in Jonesboro and currently has two and a half years of experience serving as a Loan Officer/AVP at the First National Bank of Lawrence County in Walnut Ridge.

Katie Potter was hired as a Bank Examiner for the Jonesboro Regional Office. Potter has a Bachelor’s Degree in Mathematics and Accounting from ASU in Jonesboro, and has five and a half years of experience serving as a tax auditor with State Department of Finance and Administration -

Office of Revenue located in Jonesboro. Her prior experience includes serving five years as a personal banker at Bank of America in Jonesboro.

Aaron Lockwood is now a Bank Examiner for the Little Rock Office. Lockwood has a bachelor’s degree in finance (with an emphasis in banking) and economics from the U of A in Fayetteville.

His most recent work experience includes serving one and a half years as a regional sales manager for a private supply company.

United Bank Announces New Chairman of the Board

United Bank is pleased to announce the appointment of Darrin Pitts (left) as chairman of the board of directors. The bank also welcomes Donnie Pitts (right) as a member of the bank board.

Darrin Pitts, who has served as a member of the board since 2007, succeeds Don Pitts, who passed away in September.

Darrin and Donnie both work for United Built Homes. Darrin serves as the company’s President, and Donnie serves as the company’s Executive Vice President.

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Arvest Announces New Faces in Several Positions Across the Organization Arvest Bank is pleased to announced Cara James has been promoted to Chief Risk Officer.

James will replace Bob Kelly, who is retiring after more than 30 years with Arvest. In this new role, she will have overall responsibility for Arvest’s corporate risk management policies.

James served as senior vice president and Chief Compliance Officer, a role she held at two other financial institutions before joining Arvest in 2013. James has specialized in compliance management since 1992, working in consumer protection regulation, as well duties related to the Community Reinvestment Act and Bank Secrecy Act. Arvest Bank also announced Craig Rivaldo has been promoted to regional executive. Rivaldo will replace Don Walker, who is retiring effective Jan. 31 after a career of more than 40 years with Arvest.

Rivaldo has served as president and CEO for Arvest in Benton County since May 2014. Prior to that, Rivaldo was president and CEO for Arvest in Fort Smith, a position he took in 2010.

In his role as a regional executive, Rivaldo will assist Arvest’s banks in Arkansas, working closely with management teams and boards of directors in overseeing expansion opportunities, business plan execution, asset quality and budgeting.

A third announcement was made when Arvest Bank promoted Renee W. Huffaker to Chief Compliance Officer.

Huffaker has more than 25 years of banking and regulatory experience, including more than five years at Arvest, where she was hired as a compliance senior manager. In her role as Chief Compliance Officer, which was effective Jan. 1, Huffaker is responsible for the development and implementation of Arvest’s enterprise-wide compliance program and oversight of the related compliance managers and teams.

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Arvest Bank is pleased to announce Brad Crain has been named President and CEO for the bank in Benton County.

Crain has been president of Arvest in Springfield, Mo., since May 2014. He began his career at Arvest in 2006 as regional investment officer for Bentonville, and later served as executive vice president of Arvest Bank and director of sales for Arvest Wealth Management, as well as director of the Investment Management Group of Arvest.

Chokhani, Copas, Young, and Smith Join Arvest Bank Board in Central Arkansas Arvest Bank in central Arkansas announced the appointment of four new board members in Little Rock. Rajesh Chokhani, Scott Copas, Chad Young, and Pam Smith.

Rajesh Chokhani is the Chief Operating Officer of Welspun Tubular, a pipe manufacturing facility in Little Rock that provides steel tubing for projects nationwide. Chokhani chose Little Rock as the location for multi-plant facility that spans 800 acres and employs more than 1,000 people.

Scott Copas is President and CEO of Baldwin & Shell, a construction company in Little Rock that was founded in 1946.

Copas began his career there in 1977 when it was The Baldwin Company and worked his way to his current position in 2014.

One of his most notable career accomplishments was his leadership role on a state task force that was charged with addressing state supreme court mandates given to the State of Arkansas to ensure that all public school buildings were adequate and equitable for all children, also known as the Lakeview decision.

Chad Young, AIA, LEED AP, is President and CEO of Wittenberg, Delony & Davidson (WD&D) Architects, a firm founded in Little Rock in 1919 that now also has offices in Fayetteville. Young is a principal at WD&D and the firm’s director of design.

AutoMail, LLC Adds John Travis to Lead New Marketing Division

He currently serves on the boards of the Downtown Little Rock Partnership, the Little Rock Air Force Base Community Council and the Cabot Panther Foundation.

He is chairman of the Cabot Planning Commission and serves on the Dean’s Circle for the University of Arkansas Fay Jones School of Architecture.

Travis previously worked for AutoMail in the early 2000’s. Travis rejoined the company from Ritter Communications, where he served in business marketing for four and a half years and managed their cloud solutions resellers for the last year. Travis’s experience in marketing and business development will help AutoMail’s customers fill unmet marketing needs.

Pam Smith is Communications Director for the Little Rock School District. She previously was a television news anchor and reporter for KATV in Little Rock, news director of Citadel radio stations Power 92 and KOKY and a public relations assistant for the City of Little Rock.

Smith currently is a commissioner of the Little Rock Advertising and Promotion Commission, a board member of the University of Arkansas Pulaski Technical College Foundation, and a member of the Arkansas and national chapters of the National School Public Relations Association (NSPRA), and the Arkansas Department of Education Community Engagement Stakeholder Task Force. She also is a mentor for Volunteers in Public Schools; a board member of Art Porter Music Education, Inc., a non-profit organization that provides college scholarships to aspiring musicians; and a past member of the planning committee for the observance events of the 60th Anniversary of the integration of Little Rock Central High School.

Diamond Bank Announces President Congratulations to Johnny Gibbs on his recent promotion to President of Diamond Bank. Johnny joined Diamond Bank in 2010 as chief financial officer and has served as excecutive vice president and chief lending officer during his tenure.

AutoMail, LLC, announced that John Travis has joined the organization as the Director of Marketing Services.

Prior to his time at Ritter, Travis managed Master Print Group’s mailing division, MailMaster, for seven years. Travis oversaw the day-to-day operations of the growing direct mail and statement processing facility, handling everything from scheduling and list procurement to design and printing to fulfillment. Prior to working at Master Print Group, Travis served as Marketing Coordinator for AutoMail, LLC.

Southern Bancorp’s Regional President Will Help Manage Operations Throughout Central Region Southern Bancorp recently announced the promotion of Wendy Von Kanel to Regional President, a leadership position in which she will help manage operations in Phillips and Mississippi County, Arkansas as well as DeSoto County, Mississippi. Von Kanel previously served as Market President for Phillips County.

A Marvell native, Von Kanel joined the Southern Bancorp team more than two decades ago as a mortgage processor and has continued to rise through the ranks. Prior to being Market President, she held the position of Senior Vice President of Commercial Lending.

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Banker News

Moves

Encore Bank Annouces Northwest Arkansas Team Additions Chris Howe, Executive Vice President & Northwest Arkansas Regional President, announced the addition of Patrick Woodruff and Hunter Norton as Senior Vice Presidents & Commercial Bankers.

Patrick Woodruff graduated from the Sam M. Walton College of Business at the University of Arkansas in 2004 with a Bachelor of Science in Business Administration. He is a native of Northwest Arkansas and brings fifteen years of banking experience with expertise in commercial lending and analysis to the Encore Bank team.

Hunter Norton Is a 2005 graduate of the Sam M. Walton College of Business at the University of Arkansas with a Bachelor of Business Administration, majoring in Finance. Hunter brings nearly fifteen years of experience which includes, Arkansas State Bank Department Examiner, knowledge of FDIC-assisted transactions, and commercial banker. He also has completed the Graduate School of Banking at the University of Colorado.

Southerland Joins Board of AR Aerospace and Defense Alliance Randy Southerland, Vice President and Commercial Loan Officer for Arvest Bank in central Arkansas, joins the board of directors of the Arkansas Aerospace and Defense Alliance.

The Arkansas Aerospace and Defense Alliance works to expand the aerospace, aviation and defense industries in Arkansas to create business opportunities and global competition. The alliance also encourages the development of public policies that benefit the industry and serves as an educational resource by providing industry training to build a qualified workforce.

The aerospace industry in Arkansas, that includes commercial, civil and military aviation and defense, contributes more than $3.8 billion to the state’s economy annually and employs almost 10,000 Arkansans.

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The Arkansas Banker n Spring 2020

First Western Bank in Rogers Promotes Three The First Western Bank in Rogers, Arkansas, announced the following promotions. Clay Conly was named as the Executive Vice President and Chief Retail Manager.

Conly was previously the Executive Vice President and Senior Business Development Officer.

Ty Hampton is now First Western’s Northwest Arkansas’ Market President. Hampton was formerly the Executive Vice President of Human Resources.

Landon Taylor has been named Bank President and Chief Operating Officer of FIrst Western. Taylor was previously First Western’s Nortwest Arkansas Market President and Chief Credit Officer.

United Bank Names Allen to Board United Bank is pleased to announce the appointment of Tom Allen to the Bank’s board of directors. Tom is Executive Vice President, Principal, and Executive Broker of Cushman & Wakefield | Sage Partners and sits on the company’s Executive Committee.

Allen has over 22 years’ experience in the commercial real estate industry. He leads a team of professionals that manages the real estate firm’s Hunt Ventures account, involving asset management, development, sales, and leasing of commercial real estate.

Citizens Bank Announces New Hires and Promotions Citizens Bank proudly announces the hiring of Robin Knowles as Retail Branch Manager for the bank’s Monticello Regional Branch and the promotion of Tayler Bolen to the position of Consumer Loan Officer for the bank’s operations at Monticello as well as the promotion of Helen Shaw to Vice President – Corporate Security Officer and Facilities Manager.

Knowles will lead the Monticello Retail Team and be heavily involved in the construction of Citizens Bank’s new state-ofthe-art Monticello Financial Center.

Tayler Bolen has joined Citizens Bank as a Loan Assistant in Monticello. She will now work directly with customers on their loan needs, and will be an important member of the lending team.

Wesley has joined Centennial Bank’s Regional Board of Directors Centennial Bank announced that Rev. Jameel M. Wesley has joined the Little Rock Regional Board of Directors.

“Jameel is a Little Rock native whose education and background in financial services and position as Senior Pastor at North Little Rock’s Eighth Street Missionary Baptist Church make him the perfect addition to our Board” said Gordon Silaski, Division President of Centennial Bank for Little Rock, Arkansas.

After receiving a Bachelor of Arts degree in Communications from Henderson State University in Arkadelphia, Wesley has spent nearly a decade serving the insurance and financial services industry. He currently leads a team of financial professionals at Secure Financial Solutions.

Citizens Bank Announces Promotions, Improvements in Loan Operations

Tayler holds an Associate Degree in Business Management from Southeast Arkansas Community College. She is also a graduate of Citizens Bank’s EDGE leadership development program, and currently serves on the Board of the Monticello Chamber of Commerce.

Helen Shaw has distinguished herself since joining Citizens Bank, and was promoted to Assistant Vice President in 2017. She is responsible for implementing and administering all aspects of the Bank’s Security Program, in addition to overseeing the general maintenance function for all Bank properties and managing construction projects of the Bank’s new branches.

She is a Gulf War Veteran, serving with the U.S. Air Force during Desert Storm as an Aerospace Ground Equipment technician.

She has more than 20 years of industrial experience in maintenance, purchasing, contract and vendor management, safety and security, quality control, and environmental control.

Citizens Bank is proud to announce the promotions of Angie Hooker (above left), Holly Tyler (above center) and Rachel Woods (above right) to the positions of Assistant Vice President – Loan Operations.

Hooker has worked for Citizens Bank for ten years. She is a graduate of Cave City High School and the Citizens Bank’s EDGE leadership development program. She will be based in Batesville.

Tyler has more than six years of banking experience, and joined Citizens Bank in 2016 and will be based in Arkadelphia.

Woods has been employed with Citizens Bank for four years.

She earned a Bachelor of Arts degree from Arkansas State University, and is a graduate of the Citizens Bank’s EDGE leadership development program. She will be based in Batesville.

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There’s a reason strawberries are our favorite fruit.

Please join us for the 62nd Annual Simmons Bank Strawberry Breakfast. Enjoy a home-cooked breakfast with plenty of fresh strawberries.

Simmons Bank Strawberry Breakfast Little Rock Marriott Thursday, April 9 7:30 – 8:30 a.m.