The Arkansas Banker April 2015

2015 Group Meetings

Q&A with Senator Boozman

Security Workshop

The Arkansas

Banker

Arkansas Bankers Association

125th Annual Convention

Bridging the Past with the Future

Volume XCIX, No. 4 | April 2015 April 2015 | The Arkansas Banker

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Join Us for Breakfast!

For 57 years it’s been our pleasure to share our Strawberry Breakfast with you. Brimming bowls of strawberries, a home cooked breakfast, hot coffee and networking with old friends, that’s breakfast and banking at its best!

Little Rock Marriott Ballroom Frida May 8, 2015 Friday, 7:00 a.m. to 8:15 a.m.

2 The Arkansas Member FDICBanker | April 2015

www.simmonsfirst.com

The Arkansas

Banker Volume XCIX, No. 4 | April 2015

CONTENTS

The Arkansas Banker is the official publication of the Arkansas Bankers Association.

4

President’s Column

EDITORIAL OFFICE

6

Chairman’s Column

8

Washington Report

10

Political Perspective

33

Professional Development

34

Community News

35

Member News

37

Banker News & Moves

1220 West Third Street Little Rock, AR 72201 Phone 501.376.3741 | Fax 501.376.9243 www.arkbankers.org

COLUMNS

Bill Holmes

Chuck Morgan

Gov. Frank Keating Roby Brock

EDITORIAL

The Arkansas Banker seeks to reflect the banking news of Arkansas and other news of direct interest to the Arkansas Bankers Association. Statement of fact and opinion are made on the responsibility of the authors alone and do not represent the opinion or endorsement of the Arkansas Bankers Association. Articles may be reproduced with written permission only.

DEPARTMENTS

39 Classifieds

ADVERTISEMENT

The publication of advertisement does not necessarily represent endorsement of those products or services by the Arkansas Bankers Association. The Editor reserves the right to refuse any advertisement.

SUBSCRIPTION

Subscription to The Arkansas Banker magazine, which began monthly publication in April 1917, is included in the membership fees to the Arkansas Bankers Association.

MAGAZINE RATES

FEATURES

Cover price is $5.95 each. Annual subscription rates are $40.00 for members and $60.00 for non-members.

Index of Advertisements

11

Act 588 Removes ATM Usage Fee Limit

11

Arkansas Bankers Attend Government Relations Summit

12

2015 Group Meetings

26

The Full Monty: Three M’s Shaping the Future of FinTech

29

How Much Portfolio Risk is Too Much

30

Security Workshop Wrap-Up

32

Arkansas Banks Lead ‘Best Performing Regional Banks’

32

Audit Rules Bar Clerical Services

The Arkansas Banker (ISSN 004-1726) is published monthly 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.

39

COVER STORY

By Lee Wetherington

By Lester Murray

By Richard Plotkin

ABA Annual Convention See pages 18-25 for complete details.

April 2015 | The Arkansas Banker

3

PRESIDENT’S COLUMN A Push for ‘Tailored Regulation’

I am proud to share highlights of what I believe was one of the most successful Government Relations Summits that has been held. Ten of us, (Chuck Morgan, Robert Taylor, Sean Williams, John Womack, Don Walker, Blake Fletcher, Rodney Shepard, Commissioner Candy Franks, Mike Lambert of FHLB Dallas and myself) were in Washington, D.C. this past March 23-25 for the AmBA’s GR Summit.

After visiting with lawmakers and sharing personal stories about the heavy toll excessive regulation has taken on community bank customers, our bankers are able to report broad bipartisan interest in providing targeted, practical relief. We heard similar optimism from several of our speakers, who are in prime positions to influence the legislative process: House Financial Services Committee Chairman Jeb Hensarling (R-Texas), Senate Banking Committee Ranking Member Sherrod Brown (D-Ohio), and House Majority Leader Kevin McCarthy (R-Calif.).

The message was clear from our banker leadership and the numerous members of Congress who spoke—the time to act is now.

We need to push for tailored regulation so that

banks can get back to the business of serving our customers effectively and efficiently.

We are already seeing positive results from this trip. There is no doubt that with more than 1,100 participants — including more than 100 “emerging leaders” —we made our voices heard in the halls of Congress and with the regulatory agencies. This very important grassroots engagement is now bearing fruit.

Late last month, the House Financial Services Committee approved and passed 11 AmBAbacked regulatory relief measures. In the coming weeks, we expect to see AmBA and state bankers association-advocated legislation introduced that would empower and direct regulators to make sure that rules, regulations and compliance burdens only apply to segments of the industry where it is warranted.

PRESIDENT & CEO BILL HOLMES

Ever since the financial crisis, bank and state association leaders have assumed more and more responsibility for communicating with their elected leaders about the impact their decisions have on banks’ customers and communities.

What started out as lip-service from our federal regulators and legislators has now become a

ABA STAFF BILL HOLMES

President/CEO 501.978.3602 | bill.holmes@arkbankers.org

CARLA BRINKLEY

VP/Controller 501.978.3608 | carla.brinkley@arkbankers.org

AVA FRANKS

VP/Director of Government Relations 501.978.3606 | ava.franks@arkbankers.org

JESSICA SAHENE

Marketing Coordinator 501.978.3609 | jessica.sahene@arkbankers.org

STUART THALHEIMER

Executive Assistant 501.978.3605 | stuart.thalheimer@arkbankers.org

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The TheArkansas ArkansasBanker Banker || April April2015 2015

AARON GAMEWELL

EVP/COO 501.978.3613 | aaron.gamewell@arkbankers.org

KAMI TAYLOR COLEMAN

VP/Professional Development 501.978.3614 | kami.coleman@arkbankers.org

TRACI LOGSDON

Director of Communications 501.978.3603 | traci.logsdon@arkbankers.org

TERRI KELLY

Professional Development Coordinator 501.978.3607 | terri.kelly@arkbankers.org

BRENDA SCARBROUGH

Administrative Assistant 501.978.3600 | brenda.scarbrough@arkbankers.org

growing push to rethink and rework the recent avalanche of regulation.

I cannot overstate the importance of this relationship-building and the connecting of dots between Washington and hometowns across America. Our community banks’ regulatory burden didn’t accumulate overnight, and it won’t disappear in one stroke of a pen either. What’s important is that Congress begins the work of tailoring rules for hometown banks, which so many rely on to grow and prosper. Our members have begun that work, and your state association and AmBA are committed to seeing it through.

Our work is far from done. We must continue to build support for the legislation your peers spoke to your lawmakers about.

Here’s how: Follow House Majority Leader Kevin McCarthy’s advice to us and invite your lawmakers, both state and federal, to your bank to meet with employees, customers and board members. Show them how excessive regulation impedes your ability to serve. Give them more stories to support their drive to tailor our regulations.

We encourage you to find an opportunity to see or call your Senators and House members and their staffs. Spend time discussing the issues and give specific examples—tell your story. These examples should show the impact on the customer and your community, and not focus on the bank’s bottom line.

Become a voice for your community!

Tell Your Story!

No two banks are the same, so there isn’t a one-size-fits-all approach for telling your bank’s individual story. Regardless of size, one key message to convey is the vital role your bank plays in the local economy. Here are a few points to get you started:

Banks are partners in their local economies. What has your bank done to help promote the growth, health, and vitality of your community? Do you take part in first-time home buyer or affordable housing programs?

The credit that banks provide to small businesses helps them get started, grow, and prosper. Arkansas is a state full of entrepreneurs...help tell their unique stories of growing small businesses into successful enterprises.

Banks are the largest supplier of credit to farmers and ranchers. Do you have a specific story to share from one of your ag customers?

ABA EXECUTIVE COMMITTEE CHUCK MORGAN | CHAIRMAN

ROBERT Y. TAYLOR | CHAIRMAN-ELECT

Relyance Bank, Pine Bluff

Parkway Bank, Rogers

SEAN WILLIAMS | VICE CHAIRMAN First National Bank of Wynne, Wynne

MARK FERGUSON | TREASURER First Security Bancorp, Little Rock

DAVID BARTLETT | PAST CHAIRMAN Simmons First National Corp., Little Rock

BILL HOLMES | PRESIDENT/CEO Arkansas Bankers Association, Little Rock

ABA BOARD OF DIRECTORS MARY BETH BROOKS | GROUP 3 The Bank of Fayetteville, Fayetteville

DREW HARPER | GROUP 2 Bank of the Ozarks, Little Rock

DAVY CARTER | GROUP 1 Centennial Bank, Jonesboro

First Bank, Rogers

RANDY SCOTT | GROUP 1 Farmers Bank & Trust Co., Blytheville

DAVE DICKSON | GROUP 5 Union Bank & Trust Co., Monticello

CHARLES HORTON | GROUP 1 Fidelity Bank, West Memphis

MIKE SMITH | GROUP 5 McGehee Bank, McGehee

ELIZABETH FARRIS | GROUP 4 Regions Bank, Hot Springs

J. MICHAEL JONES | GROUP 5 Merchants & Farmers Bank, Dumas

SUSIE SMITH | GROUP 2 Simmons Bank, Little Rock

CURTIS GENTRY | GROUP 1 First National Bank of Eastern AR, Forrest City

CRAIG MOBLEY | GROUP 4 First Financial Bank of El Dorado, El Dorado

JIM TAYLOR | GROUP 3 First Security Bancorp, Fayetteville

GARY GOLDEN | GROUP 4 First State Bank of DeQueen, DeQueen

WILSON MOORE | GROUP 2 Bank of America, Little Rock

STANHOPE WILKINSON | GROUP 3 Farmers Bank & Trust, Greenwood

JON HARRELL | GROUP 3

CATHERINE OWEN | GROUP 2 Eagle Bank, Little Rock

April 2015 | The Arkansas Banker

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CHAIRMAN’S COLUMN Gaining Traction in Washington Bankers from all over the United States gathered in Washington D.C., March 23–25 for the AmBA’s Government Relations Summit. Your Arkansas Bankers Association had very good representation. We heard comments from Rep. Jeb Hensarling, Chairman of the House Financial Services Committee; Rep. Kevin McCarthy, House Majority Leader; and Sherrod Brown, Senate Banking Committee Ranking Member.

Our delegation had a very good visit with Rep. Steve Womack, Rep. Rick Crawford and Rep. French Hill. We also visited with representatives of Senator Tom Cotton, Senator John Boozman and Rep. Bruce Westerman.

I came away from the meetings with a strong sense that we are making progress. We seem to be gaining traction on issues such as declaring all 1-4 family loans held in portfolio, to be deemed “QM” and “ATR” compliant. This makes sense, as Dodd/Frank wanted banks to have “skin in the game” on mortgages that they originate. If we hold them in portfolio, I would say that we have skin in the game.

There also seems to be a good chance to remove

mortgage servicing from BASIL III rules until further study. The capital requirements under the BASIL III rules are so high, that we could see mortgage servicing move from the banking sector. Both of these issues are contained in legislation that should hit the floor with strong support.

The issue concerning the current structure of the CFPB still needs to be addressed. There needs to be a board or committee created for oversight and the agency needs to be subject to the same budgetary process as any other government agency.

CHAIRMAN CHUCK MORGAN President & CEO Relyance Bank

In order to gain ground, we still need bi-partisan support. Sen. Brown (D-Ohio) said “We can come to agreement if we stick to a particular range of issues.” Sen. Brown added “If you keep the focus on a Community bank agenda, we can succeed.”

I’m pleased that Arkansas bankers have unified support from our entire delegation. They are all very knowledgeable of our issues and support efforts to relieve us from the “one-size-fits-all” regulatory environment created by Dodd/Frank.

ABA EMERGING LEADERS SECTION COUNCIL Simmons Bank, Jonesboro

DANIEL ROBINSON | PRESIDENT

KEVIN THOMPSON | VICE PRESIDENT Centennial Bank, Fayetteville

BLAKE FLETCHER | SEC./TREAS.

EDUARDO ABRIL | GROUP 4 First State Bank of DeQueen, DeQueen

ASHLEY O’BRIEN EAST | GROUP 2

BRITTANY THOMPSON LITTLE | GROUP 3

Heartland Bank, Little Rock

Today’s Bank, Fayetteville

JOHN ANDERSON | GROUP 5 Relyance Bank, Pine Bluff

CAMRON HAMES | GROUP 2 First Community Bank, Batesville

Firstar Bank, Fort Smith

TRENT BROWN | GROUP 1 Simmons Bank, Jonesboro

ANDY HORTON | GROUP 1 Fidelity National Bank, Marion

HUNTER NORTON | GROUP 3 First Security Bank, Fayetteville

TREY CLARK | GROUP 4 First Financial Bank, El Dorado

MATT LAFORCE | GROUP 2 First Security Bank, Searcy

Arvest Bank, Little Rock

BROOKE MORETON | GROUP 3

WHAT IS THE EMERGING LEADERS SECTION? The Emerging Leaders Section (ELS) was organized by the Arkansas Bankers Association Board of Directors to provide information concerning educational opportunities available for its members. The ELS was established to provide leadership training for young bankers, to enhance banking careers, offer its members the opportunity to learn, network, and be productive members of the banking profession.

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The Arkansas Banker | April 2015 2015

Provide you with face-to-face interaction with an expert instructor!

MAY 2015

6–8 | 125th Annual Convention

Little Rock Marriott /Statehouse Convention Center Who Should Attend: CEOs, Presidents, Chairmen, Board of Directors, Senior Executives and Management.

12 | The Risk Rating Process &

Problem Asset Administration

Crowne Plaza, Little Rock Who Should Attend: Chief Credit Officers, Senior Loan Officers, Loan Officers, Credit Analysts, Loan Administrators, Loan Review Officers, Special Asset Officers and Loan Workout Professionals

JUNE 2015

22 | Marketing and Business

Development for the Banker

13 | ALLL: What Works and

What Does Not

Crowne Plaza, Little Rock Who Should Attend: Chief Financial Officers, Senior Loan Officers, Loan Officers, Chief Credit Officers, Loan Review Officers and anyone who is responsible for their institution’s ALLL

19 | Case Studies in Appraisal

and Evaluation Compliance Reviews Who Should Attend: Credit Officers, Loan Officers, Credit Analysts, Loan Review Officers, Credit Administration, Supervisors, Loan Assistants, Anyone involved with the ordering and review of appraisals

23 | Commercial Real Estate

Lending in Today’s Economy Holiday Inn Presidential, Little Rock

Who Should Attend: Commercial Lenders, Relationship Managers, Branch Managers, Private Bankers, Business Development Officers

Who Should Attend: Commercial Lenders, Credit Analysts, Loan Documentation Specialists, Branch Managers, Private Bankers, Business Development Officers

9 | Integrated Disclosures:

How To Prepare & What Is Required Holiday Inn Presidential, Little Rock

Who Should Attend: Compliance Officers, Loan Operations Personnel, Internal Auditors, Loan Officers, Title Companies

Crowne Plaza, Little Rock Who Should Attend: Credit Officers, Loan Officers, Credit Analysts, Loan Review Officers, Credit Administration, Supervisors, Loan Assistants, Anyone involved with the ordering and review of appraisals

The Chancellor Hotel, Fayetteville

Holiday Inn Presidential, Little Rock

JULY 2015

20 | Case Studies in Appraisal

and Evaluation Compliance Reviews

27-30 | Compliance School

Crowne Plaza, Little Rock Who Should Attend: Those who manage the entire compliance program for their institution, Compliance Officers from community banks, Compliance Officers who are involved in the compliance monitoring, audit, review, or training process in their institutions.

25-26 | Leadership Conference The Chancellor Hotel, Fayetteville

Who Should Attend: Anyone interested in furthering their leadership skills and networking with colleagues from across the state!

PROFESSIONAL DEVELOPMENT | LIVE EVENTS

ABA Live Events...

For more information about ABA Live Events, log on to www.arkbankers.org or call 501.376.3741 April 2015 | The Arkansas Banker

7

WASHINGTON UPDATE The Future is in Good Hands I’ve noticed a growing trend in Washington that bodes well for our industry: An increasing number of young bankers coming to the capital to participate in bank visits and industry conferences oriented toward advocacy. This infusion of talent is a sign of great things to come, and it is largely attributable to the diligent work state associations have been doing to identify and develop emerging leaders.

The presence of young bankers in the halls of Washington — and at gatherings all around the country — is reminiscent of AmBA’s origins.

In fact, 140 years ago, it was a young Missouri banker named James Howenstein, who at the age of 33 took the initiative to organize a gathering of bankers in New York that led to the formation of the American Bankers Association. He and 16 other bankers — many of them what we today would call “emerging leaders” — gathered to “put their heads and hearts together to bring into a union of business interest and hearty affection the bankers of our country for a better bankerhood.”

These bankers recognized the importance of networking and engagement, even if they didn’t call it that.

Whether it’s participating in a panel discussion on “The 21st Century Banker” — as Katie Boyd, from FirstCapital Bank in Texas; Tom Richards, from Owingsville Banking Company in Kentucky, and Siya Vansia, from ConnectOne Bank in New Jersey, did at AmBA’s Annual Convention in Dallas last fall — or participating in state young banker divisions and leadership programs — these young leaders bring fresh energy and valuable insights to the debates shaping our industry. The 100-plus that gathered for AmBA’s Emerging Leaders Forum, which is a growing part of our annual Government Relations Summit in March, certainly proves that to be true.

The trend is also evident in the number of emerging leaders participating in the AmBAState Association Washington Visit Program, which brings more than 1,400 bankers to the nation’s capital every year to advocate for the industry, and in grassroots programs. It’s especially important to encourage tomorrow’s leaders to engage in such activities since grassroots advocacy has become a core responsibility in a banking leader’s job description. Anyone who plans a future in banking needs to be developing relationships now with the very people who could dictate it.

That means Congress and regulatory agency leaders.

GOV. FRANK KEATING President & CEO American Bankers Association

And as the faces of Congress continue to change and become more diverse, our industry’s advocates must reflect that change. Remember that these officials are often advised by younger staffers — staffers who, depending on how long their member of Congress has been in office, may know very little about banking. What better way to introduce them to our issues — and how policies established in Washington affect banks’ customers and communities — than through a conversation with a banker who is much closer to being their own peer.

There is nothing but “upside risk,” as the Fed might say, to turning today’s young bankers into advocates for the industry. Between the state associations and AmBA, we have abundant resources to help make it happen. From schools and conference planning committees to financial literacy and grassroots contact programs— the demand for young banker talent is high. Let’s continue to develop that talent together. Young bankers represent the future of our industry, and judging by what I’ve seen, it is in very capable hands.

© 2015 American Bankers Association. All rights reserved. Reprinted with permission.

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The Arkansas Banker | April 2015

Provide the option of training as many employees as you wish for one price, all from the convenient location of your home institution!

Flood Insurance: Compliance Issues & Enforcement Topics

April 28, 2015 1:30 p.m. – 3:30 p.m.

Home Equity Lines of Credit

April 28, 2015 10:00 a.m. - 12:00 p.m.

Opening New Accounts: Part II April 29, 2015 10:00 a.m. - 12:00 p.m.

Regulation E Compliance: Five Best Practices April 29, 2015 1:30 p.m. – 3:30 p.m.

HMDA: What To Know Now & What’s Next

Bullet Proof Your Loan Portfolio

Excel Explained: Introduction To Spreadsheets

May 6, 2015 1:30 p.m. - 3:30 p.m.

April 23, 2015 10:00 a.m. - 12:00 p.m.

Understanding Signature Cards and Account Agreements

Opening New Accounts: Part III

May 6, 2015 10:00 a.m. - 12:00 p.m.

BSA Series: Part II- Growing Your CDD Questionnaire

May 8, 2015 10:00 a.m. - 12:00 p.m.

May 13, 2015 1:30 p.m. - 3:30 p.m.

May 13, 2015 10:00 a.m. - 12:00 p.m.

RCC-C Loan Codes for the Call Report May 14, 2015 10:00 a.m. - 11:00 a.m.

Improving Employee Performance in Everyday Work Situations

Mortgage Loan Originator Required Training: Part I

What To Do When a Customer Dies

Regulation CC: Checks and Holds

May 12, 2015 1:30 p.m. - 3:30 p.m.

May 12, 2015 10:00 a.m. - 12:00 p.m.

May 20, 2015 1:30 p.m. - 3:30 p.m.

July 7, 2015 10:00 a.m. - 12:00 p.m.

Officer Calling: Prospecting, Preparing & Presentation

What is a webinar?

Lending 101

• Webinars are a cost-effective professional development option that allows you to receive top-notch training without travel time and expense.

With 100+ webinars to choose from throughout the year, you are sure to find a topic to meet your training needs.

May 5, 2015 10:00 a.m. - 12:00 p.m.

May 5, 2015 1:30 p.m. - 3:30 p.m.

For more information about ABA Webinars, log on to www.arkbankers.org or call 501.376.3741

• With a webinar, you receive one connection to train an unlimited number of participants. Instructions and presentation materials are distributed prior to the program. You also have the option of purchasing a CD-ROM or the On Demand link for further training at a later date. It’s that simple!

PROFESSIONAL DEVELOPMENT | WEBINARS

ABA Webinars...

April 2015 | The Arkansas Banker

9

POLITICAL PERSPECTIVE In 50 Years, Will We Even Need Banks?

We all cope with changing technology in our personal and business lives every day, but for financial institutions, the changes are among the most difficult.

I often use an analogy of how we deliver our business and political reporting at Talk Business & Politics to the way banks offer services to customers. Do you want a drive-through window at a branch? Do you want to use an ATM? Do you Internet bank? Walk into a bank office? Have a personal banker come visit you?

Heck, you can even still bank by landline phone, which was novel in its time. Now, mobile banking on a cell phone is commonplace.

My friend Scott McClymonds with Fayettevillebased CEO Velocity has been conducting a series of interviews with bank executives and one recent discussion really underscored thoughts I’ve had related to the disruptive nature of technology as it pertains to banking and much more.

Scott interviewed Phil Baldwin, CEO of Citizens Bank in Batesville. When asked about the opportunities and challenges on the bank horizon, Phil said: Technology and demographics are driving changes in banks. Technology is so much more advanced than I ever thought possible, but to my kids it’s a common, ordinary part of life.

The American Bankers Association says 60% of bank customers haven’t been to the bank in 5 years, and millennials don’t even know branches.

Technology and demographics are rapidly changing what a bank needs to do. It has really opened up the payment systems. Wal-Mart can serve many of these people better and cheaper without being a bank.

Down the road in 50 years or so, will we even need banks?

What a thought-provoking and intriguing answer. We’ve all seen many of these changes alluded to in Phil’s comments up close and far away. Wal-Mart has experimented with a variety of financial products outside of the U.S., and of the ones that will pass American legal muster, you can bet your bottom dollar we’ll see them domestically before long.

I personally don’t use my mobile phone for banking, but many friends do. And my collegeage son relies on it — that and a debit card that

10

The Arkansas Banker | April 2015

he manages to find a way to keep loaded for his expenses. I am quite certain he has never set foot in a bank lobby.

My pre-teen kids already laugh at my CD collection as they use their iPhones for music, Internet surfing, video editing, “facetiming” their friends, and taking pictures. Why would I believe that they would not use the devices for banking in about five years time?

GUEST COLUMNIST ROBY BROCK

In another direction, we would be fooling ourselves to believe that federal regulators — who already have overburdened banks and their customers with tremendous requirements that don’t make much sense — will be able to keep up. The regulatory system has to wait for the technology to become near universal (or abused by a select few) before it reacts, and then it is likely to over-correct.

I don’t point out all of this disruption to encourage anyone to get out of the banking business. I bring it to your attention to remind you of one of the most important and successful keys to banking: listen to the marketplace.

Bankers have always been the first to detect changes occurring in the markets they serve. It not only makes itself clear in conversations with customers, but it shows up emphatically on the bottom line. Numbers don’t lie.

My encouragement to you in raising awareness of the upcoming technological upheaval is to suggest that you begin the conversations in your management team meetings and boardrooms today.

Are you preparing for what’s right around the corner? Are you aware of what’s further down the road?

This evolving customer behavior will require strategic investment on your part and that usually comes with a substantial price tag. It will also require new mindsets in dealing with an upcoming generation of customers that think very differently than your generation or your parents’ generation.

Good banks have always managed to adapt to a changing world. So to answer Phil Baldwin’s rhetorical question: In 50 years, will we even need banks?

The answer is yes. But what will the value proposition be?

Roby Brock is the Editor-in-Chief of Talk Business & Politics, an Arkansas-based multimedia news organization.

Read news or sign up for daily newsletters at TalkBusiness.net.

Act 588 Removes ATM Usage Fee Limit The limit an Arkansas state-chartered bank can charge a customer for using an automated teller machine has been eliminated, under legislation passed by the Arkansas General Assembly.

is not subject to Arkansas’s terminal usage-fee limits “and therefore enjoys an unfair competitive advantage over a statechartered bank in Arkansas.”

House Bill 1641 lifts the limit that, prior to passage, could not exceed the lesser of $2.00 or 2 percent of the gross amount of the transaction.

A state-chartered bank in Arkansas will be able to compete on a level playing field with an out-of-state bank if allowed to charge an appropriate amount for a usage fee at a customer-bank communication terminal.

The limit had been a provision of Arkansas Code § 23-48-810. House Bill 1641 amends the provision, requiring now only that “imposition of the usage fee is disclosed at a time and in a manner that allows a user to terminate or cancel the transaction without incurring the usage fee.”

The lead sponsor of House Bill 1641 was Reginald Murdock, who represents House District 48, which includes parts of Lee and Saint Francis counties.

The findings and legislative Murdock intent of House Bill 1641 are stated in Section 1 of the bill. This section notes that an out-of-state bank

The bill continues:

It is the intent of the General Assembly to allow a state-chartered bank in Arkansas to charge an appropriate and competitive usage fee at a customer-bank communication terminal to the same extent as the state-chartered banks’ outof-state competitors.

Like out-of-state banks, nationally chartered banks with main offices in Arkansas were not subject to the ATM usage-fee limit.

The bill was filed in the House on March 4, 2015, and referred to the House Insurance & Commerce Committee, of which Murdock serves as vice chair.

The House passed the legislation on March 9 by a margin of 86 to 6, with eight representatives not voting.

The Senate received the bill the same day and referred it to the Senate Insurance & Commerce Committee.

The Senate passed the bill by a unanimous vote of 34 to 0 on March 16.

Governor Asa Hutchinson signed the bill on March 24 as Act 588.

Consumers now pay an average of $4.35 for using an out-of-network ATM, according to Bankrate.com.

This total consists of $2.77 charged by a bank when a non-customer uses its ATM and $1.58 charged by that consumer’s own bank.

The total transaction fee increased by more than 5 percent from 2013 to 2014, the eighth consecutive annual rise.

During the past five years, according to Bankrate.com, the fee for using an out-ofnetwork ATM has increased by 23 percent.

Reprinted from The Bankers Advocate, March 31, 2015.

Arkansas Bankers Attend Government Relations Summit Ten Arkansas bankers were among the 1,100+ in attendance at the 2015 American Bankers Association Government Relations Summit March 23-25 in Washington, D.C. In addition to various informational sessions, the group met with specific members of Congress to discuss practical regulatory relief measures that would allow for greater access to financial products for consumers and small businesses.

Pictured on the steps of the Capitol are (front row) Bill Holmes, Arkansas Bankers Association, Little Rock; Robert Taylor, Parkway Bank, Rogers; Commissioner Candace Franks, Arkansas State Bank Department, Little Rock; Congressman French Hill; Don Walker, Arvest Bank, Fayetteville; John Womack, Arvest Bank, Little Rock; Becky Womack; (middle row) Rodney Shepard, Arvest Bank, Fort Smith; Blake Fletcher, Arvest Bank, Little Rock; Sean Williams, First National Bank of Wynne, Wynne; Chuck Morgan, Relyance Bank, Pine Bluff; (back row) and Mike Lambert, Federal Home Loan Bank of Dallas.

April 2015 | The Arkansas Banker

11

2015 Group Meetings With the 2015 ABA Group Meetings now in the books, new group officers, ABA board members, and Emerging Leaders Section Council members have been nominated for 2015-16. Attendees of each meeting heard association updates, including the progress of the ongoing legislative session, the importance of grass roots activities, and information concerning .bank.

Group 3

Update a Legislative Rock. es iv g ks n ra Ava F Little 2 Meeting in at the Group

Group Chairman

Stanhope Wilkinson, Farmers Bank & Trust Co.

Group Vice Chairman

Jon Harrell, First Bank

ABA Board Member

Scott Hancock, Centennial Bank

Emerging Leaders Section Council Member John Bollinger, Bank of Fayetteville Scholarship Winner

Joseph Hunt, Arkansas Tech

Landon Taylor, Jim Franks, and Robert Taylor chat before the Group 3 Meeting in Rogers.

l Saunders, Keith Hefner, Michae e Group 3 and Richie Lamb at th Meeting in Rogers.

Group 4 lunch chat at Attendees have a pre- t Springs. in Ho the Group 4 meeting

12

Group Chairman

Chris Gosnell, Farmers Bank & Trust

Group Vice Chairman

Noel Bard, First State Bank of DeQueen

ABA Board Member

Darwin Hendrix, Bank of Delight

Emerging Leaders Hunter Windle, Section Council Member Malvern National Bank

The Arkansas Banker | April 2015

Robert Taylor and Chuck Mo rgan at the Group 4 Meeting in Hot Springs.

Group 2 Group Chairman

Susie Smith, Simmons Bank

Group Vice Chairman

Drew Harper, Bank of the Ozarks

ABA Board Member

Phil Baldwin, Citizens Bank

Emerging Leaders Section Council Member Matt LaForce, First Security Bank Scholarship Winner

Hayden Martin, University of Arkansas at Little Rock

Jim Cargill, Bill Yee, and Marcus Guinn at the Group 2 Meeting.

Group 1 Group Chairman

Davy Carter, Centennial Bank

Group Vice Chairman

Randy Scott, Farmers Bank & Trust Co.

ABA Board Member

Jerry Morgan, Focus Bank

Emerging Leaders Brock Fletcher, Section Council Member First National Bank of Wynne

Lanier Robinson and Charles Horton at the Group 1 Meeting in Jonesboro.

Scholarship Winner

Samuel McKnight, Arkansas State University

niel Robinson at Jerry Morgan and Da Jonesboro. in the Group 1 Meeting

Group 5 w at nd Terrell Outla llo. a , er sn ei W y Ja ce eeting in Monti the Group 5 M

Michael Jones, David Jessup , and Price Boney at the Group 5 Meeting in Monticello.

Group Chairman

Mike Smith, McGehee Bank

Group Vice Chairman

Michael Jones, Merchants & Farmers Bank

ABA Board Member

Troy Duke, Bank of Rison

Emerging Leaders Section Council Member Burt Hicks, Simmons First National Corp.

April 2015 | The Arkansas Banker

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Get to know U.S. Senator

John Boozman Hometown:

Rogers, Arkansas

Alma Mater:

University of Arkansas; Southern College of Optometry

Elected to Office: November 2, 2010

Committee Assignments

Agriculture, Nutrition and Forestry

Environment and Public Works (EPW)

Subcommittee on Commodities, Risk Management and Trade (Chair) Subcommittee on Conservation, Forestry and Natural Resources Subcommittee on Nutrition, Specialty Crops and Agricultural Research

Subcommittee on Transportation and Infrastructure Subcommittee on Fisheries, Wildlife, and Water Subcommittee on Superfund, Waste Management, and Regulatory Oversight

Appropriations Subcommittee on Financial Services & General Government (Chair) Subcommittee on Commerce, Justice, Science, and Related Agencies Subcommittee on Military Construction and Veterans Affairs, and Related Agencies Subcommittee on State, Foreign Operations, and Related Programs Subcommittee on Transportation, Housing & Urban Development, and Related Agencies

Rules Veterans’ Affairs

Contact Senator Boozman

320 Hart Senate Office Building

Washington, DC 20515 202.224.4843

1401 W. Capitol Ave., Plaza F Little Rock, AR 72201 501.372.7153

1120 Garrison Ave., Suite B

Fort Smith, AR 72901 479.573.0189

213 West Monroe, Suite N Lowell, AR 72745 479.725.0400

1001 Hwy. 62 East, Suite 11 300 South Church St., Suite 400 Mountain Home, AR 72653 Jonesboro, AR 72401 870.424.0129 870.268.6925

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The Arkansas Banker | April 2015

620 E. 22nd St., Suite 204 Stuttgart, AR 72160 870.672.6941

106 West Main St., Suite 104 El Dorado, AR 71730 870.863.4641

From an economic standpoint, what is the major focus of the session? And what can we expect to see result from this focus?

Give us a progress report regarding ongoing measures for regulatory relief for Arkansas’s hometown banks.

From an economic standpoint, the name of the game remains jobs, jobs, jobs. American private sector job creation is still lagging and I am committed to supporting legislation that will help Arkansas businesses succeed. We need a broad range of market-based solutions that will help turn the economy around by encouraging private sector job creation and economic growth.

The Obama Administration’s regulations are seriously harming Arkansas’s hometown banks, and this is especially true with Dodd-Frank. This law is a case study in the wrong way to address a crisis. Community banks didn’t cause the 2008 financial crisis, but they are being treated by the administration as though they did. Only one new bank has opened in America since Dodd-Frank was signed into law in 2010. Dodd-Frank was intended to end “Too Big to Fail,” but all it has done is to eliminate the competitors of the big banks.

To encourage investment in small business, the heart of our nation’s economy, we need to provide business owners and investors with the predictability they need to make sound investment decisions. No small business owner or budding entrepreneur is going to show up at a bank to seek a loan to expand the company’s operations or create the next big thing without a clear understanding of what his or her financial obligations will be in the coming years. When the Obama Administration continues to perpetuate uncertainty by proposing mandate after mandate, Washington is essentially throwing a wet blanket on the economy.

To lift this uncertainty, we need to rein in spending, reform our tax code and reduce regulatory burdens imposed by government agencies.

These are all commonsense ideas that have widespread support in Congress. Arkansans deserve well-paying, reliable employment and these proposals will achieve that.

Given the right tools and circumstances, small businesses can and will create good paying jobs for the people of Arkansas. In order to foster that environment, policymakers must promote tax cuts and encourage growth and innovation—not stifle it.

Dodd-Frank regulations make it very difficult for community banks to serve their community’s financial needs, and considering that one-third of Dodd-Frank has not yet been implemented, our community banks may be in need of even greater regulatory relief soon.

Clearly, this law is in need of reform. As the Chairman of the Senate Appropriations Subcommittee on Financial Services and General Government, I intend to seek meaningful reform that addresses Dodd-Frank’s one-size-fits-all approach to regulating our banks.

List three goals you have to alleviate the regulatory burden of hometown banks.

On the first day of this month, I met with community bankers in Northwest Arkansas so I could listen and learn about the regulatory burdens they face every day. As expected, Dodd-Frank was at the center of our discussion.

With a Republican-led House of Representatives and Senate, we have a real chance to put meaningful reform of this misguided law on the President’s desk. With that in mind, we must approach reform in a manner that achieves our three goals of bringing fairness, flexibility and common sense to our regulatory system. That is what I intend to work toward in the 114th Congress.

Senator Boozman chats with Clay Conly and Steve Gramling of First Western Bank in Rogers, during a meeting with Arkansas bankers on April 1, 2015.

Visit Senator John Boozman’s web page!

April 2015 | The Arkansas Banker

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Will you be sponsoring legislation?

As we start this Congress, my colleagues and I are working on legislation to address a number of issues Arkansas bankers face including CFPB overreach and simplifying and easing capital requirements. Last Congress, I supported legislation that would provide common sense regulatory reform for community banks, and I will continue to do so.

Additionally, in this new Congress, there will be new ideas and new proposals that I look forward to working with my colleagues on.

What is the best way for individual bankers to let you know their views on legislation that affects your constituents?

We can’t fix problems without knowing about them and we certainly can create more problems if the people we affect don’t speak up. Therefore, it is vital that I hear from Arkansans on issues before the U.S. Senate. I have a staff member dedicated to legislative issues facing the banking industry based in my Washington, D.C. office who can be reached at (202) 224-4843. Along with my office in Washington, I have staff in seven offices across the state: Little Rock, Fort Smith, Lowell, Jonesboro, Mountain Home, El Dorado and Stuttgart. You can visit with staff at any of those locations in person or by the phone. Along with that, my website (http://boozman.senate.gov) serves as a 24/7 way to reach me. Just click the contact tab and fill out the form which we will receive via email. A member of my staff will be back in touch shortly after that.

Hammerschmidt, who represented the Third District of Arkansas for 26 years, gave me some excellent advice. He said: “John, always remember, now that the election is over, there are no more Republicans, no more Democrats, only the people of Arkansas and you need to take care of them.”

While John Paul recently passed away, his words ring just as true today. No matter what major legislative crisis we are facing, my goal is to make each constituent who is having trouble with a federal agency a priority. Helping individual Arkansans resolve problems with the federal government and making their lives better, is the real reason we serve the public in this capacity.

What do you do on the weekends?

When I’m not working in Arkansas on the weekends, that time is my family time. Sundays are for church and Saturdays in the fall are for Razorback football.

What are the last two books you read?

Endangered by C.J. Box Masters of the Air by Donald Miller

...and the last two movies you saw?

Imitation Game Unbroken

What are you most proud of regarding your leadership in the state of Arkansas?

When I was first elected to Congress as a member of the House in 2001, former Congressman John Paul

Hearing Highlights What are some higlights regarding any hearings that took place or will take place during this session?

Jack Lew, the Secretary of the Treasury, testified before my subcommittee earlier this year, and I asked him what the administration was doing to reduce onerous regulatory burdens that community banks face. Essentially, he said that community banks were already being treated properly, and I found that disconcerting. Community banks did not cause the financial crisis, and the Secretary has acknowledged that community banks pose little systemic risk. Small business is the backbone of the American economy, and community banks are the backbone of small businesses.

In May, Mary Jo White, the Chair of the Securities and Exchange Commission, and Timothy Massad, the Chair of the Commodities Futures Trading Commission, will testify before the Financial Services and General Government subcommittee that I chair to defend their budget requests.

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The Arkansas Banker | April 2015

Leaders become great, not because of their power, but because of their power to empower others.

- John Maxwell

Chuck Morgan President & CEO, Relyance Bank

Robert “Bob” Taylor President & CEO, Parkway Bank

Thursday, May 7 Marriott Ballroom

DD&F is proud to sponsor the 2015 Legacy of Leadership ABA Banquet & Officer

SPONSORED BY

Installation. Join us on May 7 as we recognize the outstanding work of the past Officers under the leadership of outgoing ABA Chairman Chuck Morgan and congratulate new ABA Chairman Robert “Bob” Taylor and his incoming Officers.

guided by principles Help us celebrate the impact great leaders can have in our state and across the nation.

501.374.2600 April 2015 ddfconsulting.com | The Arkansas Banker 17

2015 Annual Convention Annual Convention ‘Bridging the Past with the Future’ The 2015 ABA Annual Convention kicks off the ABA’s 125th anniversary, and we’re taking the opportunity to “Bridge the Past with the Future” of Arkansas banking with a line-up of excellent speakers, a sold-out trade show, and an array of networking opportunities.

As we compare this year’s agenda with that of the first ABA Convention, we are reminded of how far the banking industry has come, and how many bridges we’ve had to cross to get here. Despite these changes, some things stay the same: Banks continue to have a direct interest in the economic growth and

health and vitality of communities — large and small — all across America. Local banks succeed when the communities they serve grow and thrive. Beyond that, bankers are who families turn to during milestone events — from a first car, to a first home, to saving for college funds and retirement.

The ABA Annual Convention has always been a time when bankers from across the state can come together and discuss the issues of today, as well as celebrate the role they play in making The Natural State a better place to live, do business, and call home.

BUSINESS SESSIONS

To give a more value-added experience, this year’s convention is taking a slightly different format.

Our event kicks off on Wednesday, May 6, with an address from Congressman French Hill, before the start of the opening reception and Trade Show.

The Annual “Day with the Commissioner” — including an appearance from Governor Asa Hutchinson — which has traditionally been held on Friday, has

2015 ABA Convention Agenda WEDNESDAY, MAY 6, 2015

2:30 p.m. – 3:30 p.m.

Board Meeting (by Invitation)

3:00 p.m. – 6:30 p.m.

Registration Open

4:00 p.m. – 4:45 p.m.

U.S. Congressman French Hill (Invited)

5:00 p.m. – 7:00 p.m.

Opening Reception

5:00 p.m. – 7:00 p.m.

PAC Silent Auction

THURSDAY, MAY 7, 2015

7:00 a.m. – 9:00 a.m.

Registration Open

7:00 a.m. – 8:15 a.m.

Breakfast in the Trade Show

8:30 a.m. – 9:00 a.m.

Commissioner’s Welcome & Remarks Candace Franks, Commissioner

Arkansas State Bank Department 9:00 a.m. – 9:30 a.m.

CSBS in Washington: A State Regulator’s View of Trends in Financial Regulation

John Ryan, President & CEO

Conference of State Bank Supervisors 9:30 a.m. – 10:00 a.m.

Recovering From the Great Recession: Are We There Yet?

Julie Stackhouse, Senior Vice President

Federal Reserve Bank of St. Louis 10:00 a.m. – 10:30 a.m.

Networking Refreshment Break

10:30 a.m. – 11:00 a.m.

Trends and Conditions in Arkansas’s

Economy and Banking Industry Gary Beasley, Regional Manager

Federal Deposit Insurance Corporation 11:00 a.m. – 11:30 a.m.

Community Banking in the 21st Century: Opportunities, Challenges & Perspectives

Joshua Siegel, Managing Partner & CEO StoneCastle Partners

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11:30 a.m. – 12:00 p.m.

Governor Asa Hutchinson (Invited)

12:00 p.m. – 1:15 p.m.

Lunch in the Trade Show

12:15 p.m. – 1:15 p.m.

BKD Milestones in Banking Awards

The Arkansas Banker | April 2015

1:15 p.m. – 1:45 p.m.

Opening Comments ABA Officer Nominations ABA Treasurer’s Report

Emerging Leaders Section Update 1:45 p.m. – 2:45 p.m.

What’s in Your Wallet?

Mobile-Payment Plays for Banks Lee Wetherington, Director of Strategic Insight, Jack Henry & Associates

2:45 p.m. – 3:45 p.m.

IT Panel Discussion Lee Wetherington, Jack Henry & Associates

Phillip Hinkle, Texas Department of Banking

Jeff Cameron, Arkansas State Bank Department

Dr. Kevin Streff, Secure Banking Solutions 3:45 p.m. – 4:30 p.m.

Sanjay K. Bhasin, President & CEO, Federal Home Loan Bank of Dallas

THURSDAY EVENING EVENTS

5:30 p.m. – 6:30 p.m.

CNA Chairman’s Reception

6:30 p.m. – 8:30 p.m.

DD&F Legacy of Leadership ABA Annual Banquet & Officer Installation

FRIDAY, MAY 8, 2015

ABA Auction

7:00 a.m. – 8:15 a.m.

Simmons Strawberry Breakfast

7:00 a.m. – 9:00 a.m.

Registration Open

8:30 a.m. – 9:00 a.m.

Opening Comments & Welcome Legislative & PAC Report

9:00 a.m. – 9:45 a.m.

U.S. Senator John Boozman (Invited)

9:45 a.m. – 10:00 a.m.

Networking Refreshment Break

10:00 a.m. – 11:15 a.m.

The CIA and the War on Terror James Olson

Former Chief of CIA Counterintelligence 11:15 a.m.

Closing Remarks

11:45 a.m.

FTN Financial Customer Appreciation Luncheon

2014-15 Officers & Directors CHAIRMAN

Chuck Morgan President & CEO Relyance Bank, Pine Bluff

been moved to Thursday morning; informational sessions will continue into the afternoon on that day.

PRESIDENT & CEO

Bill Holmes Arkansas Bankers Association, Little Rock

On Friday, attendees will hear from Senator John Boozman, and Former Chief of CIA Counterintelligence, James Olson.

CHAIRMAN ELECT

CONVENTION CLASSICS

Robert Taylor President & CEO Parkway Bank, Rogers

The ABA Convention has long provided bankers with a forum to network, and 2015 is no different. In addition to our educational programming, there are a number of interactive events to give bankers the chance to network with their peers.

VICE CHAIRMAN

The Opening Reception on Wednesday, May 6, gives you the opportunity to meet with bankers from across the state, as well as Trade Show vendors, for hors d’oeuvres and cocktails before heading out for dinner.

The CNA Chairman’s Reception will take place on Thursday, May 7, from 5:30 to 6:30 p.m., giving attendees a chance to mingle and put in Silent Auction bids before the start of the evening’s banquet festivities.

The Officer Installation Banquet is slated for Thursday at 6:30 p.m. DD&F Consulting Group is putting a new twist on this classic, and is now dubbing the event the “DD&F Legacy of Leadership ABA Annual Banquet and Officer Installation.”

The Simmons Strawberry Breakfast, now in its 57th year, will be held on Friday, May 8, and will showcase fresh Arkansas strawberries.

NEW IN 2015

As the ABA enters its 125th year, we are celebrating the individuals who have dedicated their careers to the banking industry. On Thursday, May 7, we will be presenting our first-ever “Milestones in Banking” awards to honor those who have served the banking industry for 40 and 50 years.

Following the Convention, attendees are invited to attend the FTN Financial Customer Appreciation Luncheon at the Capital Hotel.

Not registered for Convention? It’s not too late... click here!

Sean Williams President & CEO First National Bank of Wynne, Wynne

TREASURER

Mark Ferguson Executive Vice President First Security Bancorp, Little Rock

PAST CHAIRMAN

David Bartlett President & CBO Simmons First National Corporation, Little Rock

DIRECTORS Mary Beth Brooks President & CEO The Bank of Fayetteville, Fayetteville

J. Michael Jones President & CEO Merchants & Farmers Bank, Dumas

Davy Carter Regional President Centennial Bank, Jonesboro

Craig Mobley Executive Vice President First Financial Bank of El Dorado, El Dorado

Dave Dickson President Union Bank & Trust Co., Monticello

Wilson Moore Regional President Bank of America, Little Rock

Elizabeth Farris President Regions Bank, Hot Springs

Catherine Owen Chairman Eagle Bank, Little Rock

Curtis Gentry President First National Bank of Eastern Arkansas, Forrest City

Randy Scott President & COO Farmers Bank & Trust Co., Blytheville

Gary Golden President & CEO First State Bank of DeQueen, DeQueen Drew Harper Executive Vice President Director of Treasury Management Bank of the Ozarks, Little Rock Jon Harrell Executive Vice President First Bank, Rogers Charles Horton President & CEO Fidelity Bank, West Memphis

Mike Smith President McGehee Bank, McGehee Susie Smith Executive Vice President Corporate Strategy & Performance Simmons Bank, Little Rock Jim Taylor Senior Vice President First Security Bancorp, Little Rock Stanhope Wilkinson CEO Farmers Bank & Trust, Greenwood

April 2015 | The Arkansas Banker

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2015 Annual Convention Meet Your 2015 Convention Speakers GOVERNOR ASA HUTCHINSON

The State of Arkansas

Asa Hutchinson was elected as the 46th Governor of Arkansas on November 4, 2014.

Raised on a farm near Gravette, Hutchinson is no stranger to dedication, perseverance, and hard work.

After graduating from the University of Arkansas Law School, Hutchinson practiced law in Bentonville. At the age of 31, he was appointed by President Ronald Reagan as the youngest United States Attorney in the nation. As United States Attorney for the Western District of Arkansas, Hutchinson successfully prosecuted drug traffickers, white-collar criminals, and a terrorist group known as the Covenant, Sword and Arm of the Lord (CSA), a white supremacist organization in northwest Arkansas.

After a three-day standoff between law enforcement and the CSA, Hutchinson personally helped negotiate a peaceful surrender of James Ellison and other members of the Neo-Nazi group.

Hutchinson has been a cornerstone for the Arkansas Republican Party for many years. Through his leadership as State Party Chairman in the early 1990’s, the state GOP grew and initiated numerous reforms that became the foundation for today’s two party system. He championed efforts in election reform, ultimately leading to public funding for primary elections and easier access to the polls. Hutchinson also challenged the status quo in Arkansas from the unconstitutional formation of a partisan ethics commission to

congressional districts that diluted minority votes.

Hutchinson practiced law all over the state of Arkansas for 21 years before being elected to the U.S. Congress in 1996. While in Congress, he was an early supporter of out patient treatment centers for our veterans in Arkansas and concentrated on greater highway funding for the state. Hutchinson also supported tax reductions for the first time in 16 years and a balanced budget. In 2001, when he left Congress, our nation had its last balanced budget.

Governor Hutchinson has spent the majority of his career in the private sector as a small business owner, lawyer, and entrepreneur.

He serves on the board of directors of two companies and as advisor to numerous others.

SENATOR JOHN BOOZMAN

United States Senate

John Boozman, a successful businessman and life-long resident of Arkansas, was sworn-in as U.S. Senator on January 5, 2011.

Raised in Fort Smith, Boozman graduated from Northside High School and went on to play football for the University of Arkansas Razorbacks while completing his pre-optometry requirements. He graduated from the Southern College of Optometry in 1977 and entered private practice that same year co-founding a family business with his brother that would ultimately become a major provider of eye care to Northwest Arkansas.

In the 114th Congress, Boozman will serve on five committees: Agriculture, Nutrition and Forestry; Appropriations; Environment and Public Works; Rules; and Veterans’ Affairs.

CONGRESSMAN FRENCH HILL

United States House of Representatives French Hill is the 22nd Member of Congress to represent central Arkansas in the U.S. House of Representatives.

A ninth generation Arkansan, he was elected on November 4, 2014,

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The Arkansas Banker | April 2015

began his first congressional term on January 3, 2015, and was officially sworn in on January 6, 2015. He will serve on the U.S. House Committee on Financial Services.

Prior to his congressional service, Hill was actively engaged in the Arkansas business community for two decades as a commercial banker and investment manager. He was founder, chairman, and chief executive officer of Delta Trust & Banking Corp., which was headquartered in Little Rock and recently merged with Arkansas-based Simmons First National Corp.

Prior to his community banking work in Arkansas, Hill served as a senior official in the administration of President George H.W. Bush. From 1989 until 1991, Hill served as Deputy Assistant Secretary of the Treasury for Corporate Finance, where one of his key assignments was representing the United States as a negotiator in the historic bilateral talks with Japan known as the Structural Impediments Initiative.

After the fall of the Berlin Wall, Mr. Hill led the design of U.S. technical assistance to the emerging economies of eastern and central Europe in the areas of banking and securities. In 1991, President Bush appointed Hill to be Executive Secretary to the President’s Economic Policy Council, where he coordinated all White House economic policy.

Throughout his career Hill has been active in civic affairs. He is a past president of the Rotary Club of Little Rock and served as the 2013 chairman of the Little Rock Regional Chamber of Commerce. In 1998, he was awarded the Silver Beaver Award by the Boy Scouts of America for his commitment to youth, and in 1999 for his work in historic preservation, he was named Museum Trustee of the Year by Arkansas Museums Association. Additionally, he received the Hanlon Award by the City of Little Rock for Outstanding Business Leader for the arts and humanities in 2002, and the Arkansas Heritage Award from Governor Mike Beebe at the Annual Governor’s Conference on Tourism in 2007.

Hill is a magna cum laude graduate in Economics from Vanderbilt University. He is married to the former Martha McKenzie of Dallas, Texas, and they have a daughter, Sarah Elizabeth McKenzie Hill, and a son, William Payne Hill. The Hill family resides in Little Rock.

A MESSAGE FROM FHLB-DALLAS

COMMISSIONER CANDACE FRANKS

Arkansas State Bank Department

Candace A. Franks became Arkansas’s 21st Bank Commissioner upon her appointment by Governor Mike Beebe on June 13, 2007. Commissioner Franks was reappointed by Governor Beebe to a second term on June 13, 2011. On December 4, 2014, newly elected Governor Asa Hutchinson announced he would retain Franks as Commissioner to continue her leadership role in his administration.

As Bank Commissioner, Franks oversees the Arkansas State Bank Department, which is the chartering and regulatory authority for state banks that have a main office in Arkansas. As of September 30, 2014, the agency supervised 85 state-chartered commercial banks with total assets of $52.3 billion.

Commissioner Franks is serving a one-year term through May 2015 as Chairman of the board of directors of the Conference of Bank Supervisors (CSBS). CSBS is the nation’s leading advocate for – and the only national organization dedicated to advancing – the state banking system.

From 1995 until her appointment as Commissioner, Franks served as deputy bank commissioner and general counsel for the Bank Department. Prior to that, she served as general counsel to the Bank Department and represented the State Banking Board.

Commissioner Franks served from 1994 to 1997 on the Governor’s Task Force to revise the Arkansas Banking Code. In 1996 and 1997, she was a member of the Governor’s Task Force on Interstate Banking and Branching.

In March 2010, Commissioner Franks was recognized by Arkansas Business as one of 20 “Women of Influence” – women considered to be among the most influential in their fields in Arkansas. Franks was selected by Arkansas Business in 1996, 1997 and 1998 as one of the “Top 100 Women in Arkansas.”

Franks received a Juris Doctor from the University of Arkansas at Little Rock School of Law in 1979. She earned a bachelor of arts degree in history and a master of arts degree in American history at Arkansas State University in Jonesboro.

GARY BEASLEY

Federal Deposit Insurance Corporation Gary L. Beasley has been a Regional Manager in the FDIC’s Division of Insurance and Research since 1996. In this role, Beasley monitors emerging issues and trends in the economy and banking sector of the MidSouth (Arkansas, Louisiana, Mississippi, and Tennessee). Prior to assuming his current position, Beasley worked fifteen years in various examination roles including Commissioned Bank Examiner, Commercial bank Case Manager, fraud subject matter expert, and capital markets subject matter expert.

SANJAY BHASIN

Federal Home Loan Bank of Dallas Sanjay Bhasin serves as President and Chief Executive Officer of the Bank and has served in that capacity since he joined the Bank in May 2014.

Prior to his employment with the Bank, Bhasin served as Executive Vice President, Members and Markets for the Federal Home Loan Bank of Chicago from 2011 until May 2014. He joined the Chicago Bank in 2004 as Vice President, Mortgage Finance and was promoted to Senior Vice President, Mortgage Finance in 2007 and to Executive Vice President, Financial Markets in 2008, a position he held until his appointment as Executive Vice President, Members and Markets. Prior to joining the Chicago Bank, Bhasin was responsible for managing the interest rate risk associated with Bank One, NA’s mortgage pipeline holdings from 1999 to 2004.

Bhasin currently serves on the Council of Federal Home Loan Banks.

Greetings from the Federal Home Loan Bank of Dallas! We look forward to seeing our Arkansas bankers during your annual convention in May, where our President and CEO Sanjay Bhasin will give an update on the state of FHLB Dallas, as well as discuss new member initiatives. Since taking the helm in May 2014, Sanjay has been focused on strengthening member relationships and launching value-added products and services.

This year we have introduced collateral workshops, designed to assist members in maximizing their borrowing capacity; we have also begun a monthly webinar series that provides insight on topics from oil and gas to the economic forecast; a weekly market email was launched in February that provides a list of upcoming financial events, and recaps the previous week’s activities.

We are excited to announce the return of our annual conference this year. After the financial downturn in 2007-08, FHLB Dallas discontinued the conference. But we felt compelled to bring this memberfocused event back in 2015. This year’s theme, Strengthening Your Home Field Advantage, represents the desire we have to give members the tools they need to succeed.

At FHLB Dallas, we are committed to becoming more member-focused in our approach. In the last nine months, we have introduced new products, added features to existing products, and developed new funding strategies to help our members conduct business more effectively. We launched a Member Services Desk to give you a centralized point of contact for transactions and getting questions answered. As we have launched these new products and resources, we needed a place to house this information, and if you have visited fhlb.com in the past few weeks, you have seen the newly redesigned site. The content was written with our members in mind, and we provided resources that we hope will be of value.

The myriad of changes occurring in banking today compelled FHLB Dallas to take on these and other important initiatives. Our commitment to our members is stronger than ever, and we hope to continue building strategic partnerships in Arkansas and across our District.

April 2015 | The Arkansas Banker

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2015 Annual Convention JAMES OLSON

Central Intelligence Agency (Former) James M. Olson is on the faculty of the Bush School of Government and Public Service at Texas A & M University, where he teaches courses on intelligence and national security.

Olson was a career officer in the Directorate of Operations of the Central Intelligence Agency, serving mostly overseas in clandestine operations. He served as Chief of Counterintelligence at CIA Headquarters in Langley, Va., and overseas assignments in the USSR, Austria, and Mexico.

He is the recipient of the Intelligence Medal of Merit, the Distinguished Career Intelligence Medal, the Counterintelligence Excellence Medal, the Donovan Award, and several distinguished achievement awards.

Awarded the Silver Star Award at the Bush School for excellence in teaching.

Olson holds a bachelor of arts in mathematics and economics, and a Juris Doctor in international law from the University of Iowa.

He is the author of The Ten Commandments of Counterintelligence and Fair Play: The Moral Dilemmas of Spying.

member to the United States House of Representatives Committee on Banking, Finance and Urban Affairs.

JOHN RYAN

Ryan received his bachelor in arts degree in political science and economics from the University of California, Berkeley.

Conference of State Bank Supervisors John Ryan is the President and CEO of the Conference of State Bank Supervisors (CSBS), the national association representing state banking supervisors and the leading advocate for advancing the state banking system.

Before being named CSBS President and CEO in August 2011, Ryan was CSBS’s Executive Vice President, a position he held since October 2003. He first joined CSBS in 1997 as an Assistant Vice President for legislative affairs.

Prior to joining CSBS, Ryan worked at Newmyer Associates, a public affairs consulting firm, where he led the company’s financial services consulting practice. He also spent four years as a professional staff

JOSHUA SIEGEL

StoneCastle Partners In 2003, Joshua Siegel founded StoneCastle Partners, LLC to become the preeminent investor dedicated to investing in banks. In November 2013, he continued his tradition as an innovator in finance, through the IPO of the newly formed StoneCastle Financial Corp., the first publicly traded investment company focused on community banks. Siegel’s research and financial innovations have brought nearly $40 billion of capital and $8 billion of deposits to over 1,600 community and regional banks across America during the past 14 years. An avid teacher, Siegel has been invited to educate government

Another Star in the Natural State Equias Alliance helps banks in Arkansas, and across the country, meet their financial goals, manage benefit liabilities and enhance shareholder value with a custom designed BOLI program. Trey and the team at Equias Alliance want to be your source for strategic benefit and BOLI solutions.

HARRY L. “TREY” DEUPREE III tdeupree@equiasalliance.com 7200 Bishop Rd, Suite 240 Plano, TX 75024 Tel: 469.252.1038

The American Bankers Association (through its subsidiary, the Corporation for American Banking) has endorsed services provided by Equias Alliance.

Harry L. “Trey” Deupree III is a registered representative of and securities are offered through ProEquities, Inc., a Registered Broker/Dealer, and member FINRA and SIPC Equias Alliance LLC is independent of ProEquities, Inc.

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The Arkansas Banker | April 2015

www.equiasalliance.com

©2015 Equias Alliance

regulators in this specialized field during regular sessions. He has also served as an Adjunct Professor at the Columbia Business School in New York City.

Prior to co-founding StoneCastle, Siegel was a co-founder and Vice President of the Global Portfolio Solutions Group at Salomon Brothers/Citigroup Global Markets. He had responsibility for developing new financial products, including pooled investment strategies for the community banking sector, which earned him Euromoney’s Deal of the Year. Prior to his tenure at Salomon Brothers/ Citigroup, Joshua worked at Sumitomo Bank where he served as a corporate lending officer, as a banker structuring equipment lease and credit derivative transactions and as a member of the bank’s New York Credit Committee. Prior to Sumitomo, Joshua worked for Charterhouse, carrying out merchant banking and private equity transactions.

Siegel received his bachelor of science degree in management and accounting from Tulane University.

JULIE L. STACKHOUSE

Federal Reserve Bank of St. Louis Julie Stackhouse is Senior Vice President and Managing Officer of Banking Supervision, Credit, Community Development and Learning Innovation for the Federal Reserve Bank of St. Louis. Prior to joining the St. Louis Fed in September 2002, Stackhouse was

IT Panel JEFF CAMERON

Vice President and Managing Officer of the Risk Management Department of the Federal Reserve Bank of Minneapolis. In addition, she was formerly an officer with the Federal Reserve Bank of Kansas City prior to relocating to Minnesota in 1995. She served in many capacities in the Kansas City Banking Supervision and Risk Management areas, starting as an examiner in 1980.

Stackhouse holds a bachelor of science degree in business administration from Drake University and is a graduate of the Wisconsin Graduate School of Banking. She currently serves on the national board of National Charity League, Inc., the board of Open Door Animal Sanctuary, as a member of the advisory committee for the Washington University Women’s Leadership Certificate Program, and as a member of the St. Louis Forum.

of banking and finance, and has delivered guest lectures on leadership and technology at universities across the country. He was named “Strategic Alliance Executive of the Year” at the 2013 Golden Bridge Awards, which recognizes the world’s top executives across every major industry globally.

Lee’s articles and commentary have been published in American Banker, BAI’s Banking Strategies, ABA’s Bank Marketing and ICBA’s Independent Banker.

Wetherington received bachelor degrees in economics and English from Duke University in 1990, and, in 1993, he completed graduate studies at Emory University. In 1995, he earned the distinguished Accredited ACH Professional (AAP) certification from the National Automated Clearing House Association (NACHA).

LEE WETHERINGTON

Jack Henry & Associates Lee Wetherington, is Director of Strategic Insight for Jack Henry & Associates. He directs the development of actionable insight and strategy for the financial services industry at large. To this end, he creates programs, presentations, and articles designed to orient and educate financial executives on the trends and implications of new technologies.

Wetherington has served as Technology Faculty Chair for several graduate schools

PHILLIP HINKLE

DR. KEVIN STREFF

Arkansas State Bank Department

Texas Department of Banking

Secure Banking Solutions

Jeff Cameron supervises the Information Systems Examination Group at the Arkansas State Bank Department. The group evaluates all major aspects of a bank’s technology function, including audit, management, development and acquisition, support and delivery, and information security. Cameron is a Certified Information Systems Auditor, and a member of the Information Systems Audit and Control Association, InfraGard and the Financial Services Information Sharing and Analysis Center.

As Director of IT Security Examinations, at the Texas Department of Banking, Phillip Hinkle oversees the Information Technology examination function of banks and trust companies chartered by the state of Texas. He also serves on the FFIEC’s six member Cybersecurity and Critical Infrastructure Working Group. Most recently, Hinkle led the formation of the Bankers Electronic Crimes Task Force with the U.S. Secret Service, which developed practices for the banking industry that have been distributed nationally.

Dr. Kevin Streff is the Director of the Center for Information Assurance at Dakota State. He is also the founder and managing partner of Secure Banking Solutions, a security consulting firm focused on improving security in financial institutions across the country. He has extensive knowledge of the financial services industry, including banking, insurance, and credit operations, and speaks nationally on security issues and solutions relevant to small and mediumsized financial institutions.

April 2015 | The Arkansas Banker

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2015 Annual Convention 2015 Trade Show to Feature 50+ Vendors 25

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Vendor Booth # 3E Software..............................................................................45 AmTrust North America........................................................ 7 Arkansas Capital Corporation...........................................14 Banc Intranets.........................................................................10 Bank Compensation Consulting......................................39 Bank Financial Services Group..........................................16 Bean Hamilton Corporate Benefits.................................48 BKD, LLP....................................................................................47 Card Assets................................................................................ 1 Celerit........................................................................................35 CNA Insurance........................................................................52 Country Club Bank Capital Markets Group..................13 DD&F Consulting Group....................................................... 3 Deluxe Strategic Sourcing..................................................11 Economics Arkansas............................................................... 9 Ellsworth Systems.................................................................41 Equias Alliance.......................................................................50 Equitable Mortgage.............................................................42 Exchange Capital Corporation..........................................36 Federal Protection, Inc.........................................................33 FPS Gold....................................................................................31 Jack Henry Banking..............................................................32 Johanson Group / DB Squared ........................................54 Mobley Technologies............................................................. 5 Mobley Technologies............................................................. 6 NetGain Technologies............................................................ 4 Office Depot............................................................................51 PC Assistance..........................................................................34 PrintMail Systems..................................................................30 Promontory Interfinancial Network................................. 2 Radius Group Solutions......................................................15 Red Hawk Fire & Security....................................................38 Secure Banking Solutions...................................................46 Shazam Core Services..........................................................40 Shred-It.....................................................................................25 Stephens Insurance, LLC....................................................... 8 Superior Consulting.............................................................12 Talk Business & Politics........................................................19 Telecomp..................................................................................53 Travelers Insurance...............................................................43 U.S. Small Business Administration.................................18 Works24....................................................................................44

Download the Convention Mobile App There’s an app for that! You’ll have agendas, speaker presentations, exhibitor information, and more at your fingertips with the ABA Convention Mobile App. Just search “Arkansas Bankers Association” in the App Store!

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The Arkansas Banker | April 2015

Cooking Up ‘Good Food’ at the 2015 Convention Spouse Event The 2015 ABA Annual Convention Spouse Event is taking place at the newest venture from popular Little Rock Chef Donnie Ferneau, “Good Food by Ferneau,” a reastaurant that focuses on healthy meals for people with active lifestyles.

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On Thursday morning, attendees will get personal with Chef Donnie, learning new tricks and cooking basics during a fun and easy 3-Course Class in the old Argenta Market in the Argenta Arts and Historic District of North Little Rock. Chef Donnie will also turn guests on to the best local sources for seasonal produce.

Following the class, guests will stay to dine on Ferneau’s “good food” for lunch, and experience his clean eating philosophies, rich with fresh and local ingredients.

2015 ABA Convention Sponsors ENDORSED VENDORS

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CNA Insurance CNA Chairman’s Reception

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Smiley Technologies, Inc. Mobile Charging Stations

BKD, LLP Milestones in Banking Awards

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Simmons Bank Simmons Strawberry Breakfast

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April 2015 | The Arkansas Banker

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The Full Monty:

Three M’s Shaping the Future of FinTech So we’re four months into 2015.

ABOUT THE AUTHOR Lee Wetherington is the Director of Strategic Insight at Jack Henry & Associates, Inc., where he directs the development of actionable insight and strategy for the financial services industry at large.

Lee Wetherington is slated to speak on Mobile Payments at the 2015 ABA Convention.

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The analysts have published their predictions, the financial trades their top tens, and the bloggers their two cents. You’re probably thinking you know all you need to know about Apple Pay, EMV, and Gen Y. And maybe you do.

But do you know about Magnetic Secure Transmission (MST), Monty Hall, and myelin?

You should. These three m-words are recalibrating the short- and long-term future of mobile payments, card fraud liability, and mobile banking respectively. And they may seriously challenge what you think you know about the year ahead.

Magnetic Secure Transmission (MST) Since its announcement at the “September Event” in Cupertino, and its official launch last October, Apple Pay has dominated the headlines and convinced many banks that

The Arkansas Banker | April 2015

the mobile payment wars are over. Near Field Communication (NFC) is the winner and the way forward for us all. So let it be written, so let it be done.

Except that it’s nowhere near done.

The sobering afterthought of all the Apple Pay buzz has been, “What about Android?” That is, what will Android smartphone owners use for mobile payments?

Google Wallet, the Android standard bearer for NFC mobile payments, tried and failed to gain traction across multiple attempts. And as if its own failures weren’t enough, Google recently acquired an even bigger failure in mobile payments: ISIS, the unfortunately named NFC mobile payments telecom joint venture only recently rechristened “SoftCard.”

Enter LoopPay, a small startup company that developed an ingenious way to convince a traditional point-of-sale (POS) terminal

that it had been swiped by a card when indeed it had not been swiped at all.

LoopPay (currently in the form of a fob or smartphone case) emits an electromagnetic pulse that transmits the relevant card data wirelessly to the POS terminal. No new hardware or software is required by the merchant.

While Apple Pay currently works on only the 3 percent of U.S. POS terminals that are NFC-enabled, LoopPay’s magnetic secure transmission (MST) technology works on 90 percent of existing POS terminals. Yes, you read that right, 90 percent.

And guess who just bought LoopPay? Samsung, the world’s biggest manufacturer of Android smartphones. Samsung will be announcing the integration of LoopPay’s MST into its handsets when this article goes to press.

Will “Samsung Pay” leapfrog Apple Pay in 2015 and fundamentally change the calculus of mobile payments? Stay tuned.

The Full Monty (Hall) Remember “Let’s Make a Deal”? The gameshow in which Monty Hall presents a contestant with three doors, one of which conceals a grand prize and two of which house goats? After the contestant chooses a door, Monty reveals a second door (and the goat behind it) leaving the contestant with the choice either to stick with her original door or to switch to the third door.

Unless you’re a student of probability and statistics, you may not intuit that the contestant should always switch and choose the third door. Statistically, the probability of the grand-prize door concentrates upon that third door once the second “goat” door is revealed (for the full explanation, do an Internet search on the “Monty Hall problem”).

A similar concentration in probability is happening in card fraud this year. EMVenablement will take place gradually over time, beginning with credit cards and the largest box stores and ending with debit cards and the smallest merchants. In other words, over the course of 2015 (and perhaps through 2017) the weakest links and lastto-adopt will suffer disproportionate amounts of fraud and fraud liability. This

means smaller issuers, smaller merchants, and debit cards will be in the cross-hairs of transitional concentrations of fraud.

Myelin, Brains & Gen Y Here’s a fun fact: the brain is the last of our organs to fully mature. To mature, the brain must slowly coat all of it synapses with a thin layer of insulating fat called myelin. Myelination happens slowly from the back of the brain (amygdala) to the front of the brain (pre-frontal cortex), and the full process takes 25 to 30 years in the average human being.

In other words, while fight or flight and other baser instincts are optimized early on, self-discipline and the executive function aren’t in full force until your late twenties or early thirties. And that means 75 percent of Gen Y lack the necessary neural wiring to keep the amydala’s impulses in check (visit any retail store to see this in action).

According to Aite Group, 60 percent of young Gen Yers (21-26), and 50 percent of older Gen Yers (27-34) say they have an “impulse purchase” problem. And their problems don’t end there.

Gen Y is the first modern generation to suffer a lower standard of living than their parents’ generation. They are also the first to have higher rates of debt, poverty and unemployment than the two preceding generations had at the same age.

And this is why nearly half of all Gen Y consumers looking to switch financial institutions want their next provider to offer mobile personal financial management (PFM) tools. Banks would do well to take heed.

As you navigate the year ahead, remember the three M’s. And, if your executive function is fully myelinated, act accordingly.

let your

leadership potential soar to

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2015 Arkansas Bankers Association

Leadership Conference

June 25-26, 2015 | The Chancellor Hotel, Fayetteville

April 2015 | The Arkansas Banker

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The Arkansas Banker | April 2015

How Much Portfolio Risk Is Too Much?

Everyone knows that if you want to make an omelet, you have to break a few eggs. And, if you want to manage a bond portfolio, you’re going to have to take a little risk. No risk, no reward. The thorny question for many portfolio managers, and boards of directors, is, a what point does this inherent risk become too great? Or, a much less frequently asked question, when is this risk not great enough?

ABOUT THE AUTHOR Lester F. Murray, Associate Partner of The Baker Group LP, came to the Baker Group in 1986 following his work with the OCC as an assistant national bank examiner. His focus is on developing community bank portfolio and interest rate risk management strategies.

Most banks these days have access to analytical tools that generally do an adequate job of measuring the potential changes in market valuations due to changing rate environments, but this information by itself is incomplete knowledge. The determination of the “right” amount of risk is unique to each financial institution and to the people who manage it. Knowing the dollar amount of potential depreciation that might occur as a by-product of rising interest rates is not without value, but lacking meaningful context, it may not automatically follow that the measured amount of risk is the appropriate amount of risk. Just as individual investors have various degrees of risk tolerance or avoidance, so it is with community bankers. Some investors never stop looking for ways to roll the dice and take chances, while others never feel safe unless they’re wearing a belt with their suspenders. Apart from the nuances of personality and temperament, how can community bank portfolio managers gain

insight into whether or not their portfolio’s market risk, once measured, is appropriate?

Start with the Big Picture

The first place to look when looking to figure out just what that right amount of risk might be is the overall risk profile of the total balance sheet. For banks challenged by excessive volatility in their Economic Value of Equity (EVE), it’s important to know the degree to which negative portfolio valuations contribute to that volatility. The mitigation of the overall balance sheet risk may take priority over other considerations affecting the portfolio’s exposure to market risk. In other words, if an inordinate level of capital is already at risk due to the combination of the valuation characteristics of loans and liabilities, the assumption of any additional market risk in the portfolio may not be a prudent option. In fact, such a set of circumstances may compel a portfolio manager to reduce overall balance sheet risk by reducing the portfolio’s contribution to that risk. This reflects the priority of total balance sheet risk management, and the portfolio’s role in it, versus other factors influencing investment strategies and tactics.

Does This Make My Risk Look Big?

If it’s determined that the comprehensive risk profile is modest enough to not require Continued on page 33

April 2015 | The Arkansas Banker

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Security Workshop Focuses on Creating, Maintaining Secure Banks More than 40 Arkansas bankers gathered in Hot Springs on March 26-27 for the ABA Security Workshop, held at the Hot Springs Convention Center. The two-day event addressed the concerns currently facing the banking industry, including call center fraud, environmental factors, and personnel.

charm to the bank, they represent an ideal place to hide for a robber.

Thompson also showed examples of bank layouts to discuss common problem areas that could set banks up to become victims of a robbery.

On Friday, forensic interviewer Joseph Buckley gave attendees an overview of the widely-used Reid Technique of Interviewing and Interrogation.

He discussed the Behavior Symptom Analysis — the verbal and nonverbal behavioral characteristics of someone being interviewed; the Behavior Analysis Interview — the interview designed to elicit both factual and behavioral information to guide investigative direction; and the Reid Nine Steps of Interrogation — the interrogation process that is structured to obtain an admission of guilt.

Attendees came away with a set of best-practices to aid in creating and maintaining secure financial institutions.

The event kicked off on Thursday with “The Fraud Educator,” Barry Thompson, who has worked in the financial services industry for 30+ years and handled over 900 security cases.

Thompson discussed the various methods that criminals use to rob a financial institution — from in-person heists to social engineering schemes.

His presentations focused on identifying the weak links in day-to-day security operations, and being proactive to protect your bank from fraudsters.

During his presentation, Buckley showed several video clips of different interrogations to help attendees identify the characteristics of a truthful person versus an individual who is withholding or fabricating information.

He encouraged security personnel to conduct a physical risk assessment — from the perspective of a robber. He noted that, all to often, institutions are more concerned with marketing, signage, and general appearance of the buildings than security. He gave an example of landscaping — while shrubbery or trees planted around the building may add

“

There were two exhibitors on hand at the Security Workshop — Will Pollard of 3SI Security Systems, and Eric Hoover of Federal Protection, Inc. Both were armed with products and services to help combat security issues.

This was the first ABA Security seminar that I have attended and thoroughly enjoyed both speakers.

Their life experiences about the subjects they covered were both very helpful and interesting.

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Barry Thompson was the featured speaker on the first day of the 2015 Security Workshop. His presentation centered around identifying and correcting weak links in a bank’s security operation.

Pam Bennett Diamond State Bank, Murfreesboro

The Arkansas Banker | April 2015

Joseph Buckley, President of John E. Reid and Associates, gave attendees an overview of the Reid Technique of Interviewing and Interrogation

Check out more photos from the 2015 Security Workshop!

(Above) Eric Hoover, Federal Protection, Inc., Springfield, Mo., discusses security products with Alan Webber, First Security Bank, Searcy, during a networking break at the 2015 Security Workshop.

(Top Left) Wes Williams, FDIC, Little Rock, and Gina Pack, River Town Bank, Dardanelle, check what’s next on the Security Workshop agenda.

(Left) Robin Cline, Simmons Bank, Pine Bluff; and Daniel Pieroni, Simmons Bank, Lake Village, chat at the Security Workshop in March

(Far Left) Will Pollard of 3SI Security Systems of Exton, Penn., tells attendees about some of the technologies available on the market today.

(Left) Mike Shepard, One Bank & Trust, Little Rock, served as MC for the 2015 Security Workshop held in Hot Springs.

April 2015 | The Arkansas Banker

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Arkansas Banks Lead SNL’s ‘Best Performing Regional Banks’ Three Arkansas banks were among the top five best-performing regional banks of 2014, according to a study released by SNL Financial in March.

Bank of the Ozarks of Little Rock topped the list with a17.13 percent return on average tangible equity for the year, an efficiency ratio of 44 percent, and net charge-offs of 0.16 percent. The bank’s loan growth rate was 52.57 percent.

Home BancShares, Inc. of Conway ranked third with a 19.86 percent return on average tangible equity for the year, an efficiency ratio of 42.54 percent, and net charge-offs of 0.22 percent.

First Security Bancorp ranked fifth with a 14.51percent return on average tangible equity for the year, an efficiency ratio of 39.84 percent, and net charge-offs of 0.18 percent.

“I am so proud that Arkansas has three of the top ten banks in SNL’s ‘Best Performing Regional Banks of 2014’ study,” said Bill Holmes, President & CEO of the Arkansas Bankers Association.

“Number one was Bank of the Ozarks, number three was Home Bancshares (Centennial Bank), and number five was First Security Bank. All three are originated and headquartered in our state. Banks are such an intricate part of our local, state and federal economies and these three banks shine a bright light on all of Arkansas’s banking community.”

“I commend each of you for your innovative approaches to banking, the great teams you have assembled and your first-class results. We are proud of you and your banks and look forward to your future successes,” he said.

In this annual report of “100 Best Performing Regional Banks,” SNL defined regional banks as those with less than $50 billion in assets and at least 60 offices. Banks were ranked using six core financial performance metrics that focus on profitability, asset quality and growth for the 12-month period ended Dec. 31, 2014.

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The Arkansas Banker | April 2015

Audit Rules Bar Clerical Services

By Richard S. Plotkin Editor, The Bankers Advocate

Clarifying guidance has been issued alerting external audit firms that some services provided to FDICinsured financial institutions are prohibited by auditor independence rules.

The guidance was issued November 19, 2014, in a joint letter by the Center for Audit Quality and American Institute of Certified Public Accountants.

The letter clarifies auditor independence rules for certain “non-issuer” audit and attestation engagements, including of all financial institutions with $500 million or more in assets.

These financial institutions are subject to Part 363 of the Federal Deposit Insurance Corporation Rules and Regulations, “Annual Independent Audits and Reporting Requirements.” § 363.3 (a) requires each FDICinsured financial institution with $500 million or more in assets to engage an independent public accountant to audit and report on its annual financial statements. The scope of the audit engagement must enable the accountant to determine and report whether the financial statements are presented fairly and in accordance with Generally Accepted Accounting Principles.

In addition, § 363.3 (f) requires the independent public accountants of these financial institutions to comply with the independence standards and interpretations of the American Institute of Certified Public Accountants, Securities and Exchange Commission and Public Company Accounting Oversight Board.

To the extent that any of the rules within any one of these independence standards is more or less restrictive than the corresponding rule in the other independence standards, the independent public accountant must

comply with the more restrictive rule, the regulation states.

In this case, explains Douglas Van Meter, Partner in the Oklahoma City office of BKD, LLP, SEC independence rules apply because they are more restrictive in certain areas than the rules of the other two organizations.

“The joint letter clarifies the SEC position that auditors should not, among other things, provide typing and word processing services or financial statement templates not publicly available to the audit client, as these would be considered prohibited financial statement preparation services,” Van Meter writes in the January 2015 issue of Industry Insights, published on-line

by BKD. “In other words, FDICIA [Federal Deposit Insurance Corporation Improvement Act of 1991] banks must draft, type, format, print and bind their own financial statements or engage a third party to assist them,” Van Meter states. “This clarification may significantly affect institutions that have used their external auditors for assistance drafting footnotes or providing typing and word processing services.”

The letter elaborates, in part, “Given this focus, audit firms are encouraged to review their policies and procedures as it relates to the SEC prohibition on financial statement preparation services (which may include financial statement production services) and to remind their audit engagement teams on engagements that are the subject of this alert that the activities described above are the responsibility of client management.

The responsibility of the independent auditor is to express an opinion on the financial statements.”

The joint letter is posted on the Web site of the American Institute of Certified Public Accountants.

Reprinted from The Bankers Advocate, March 31, 2015.

PROFESSIONAL DEVELOPMENT GSB Grads to Receive Certificate of Executive Leadership from Wisconsin School of Business Under terms of a new agreement between the Wisconsin School of Business’ Center for Professional and Executive Development and the Graduate School of Banking at the University of WisconsinMadison, students who enroll in the Graduate School of Banking starting in 2015 will receive a Certificate of Executive Leadership from the Wisconsin School of Business, in addition to a GSB diploma, after successfully completing the 25-month program.

This agreement, which provides the opportunity for GSB students and alumni who enrolled in the Graduate School of Banking prior to 2015 to obtain the certificate by completing two courses outside of GSB, is a continuation of a long-standing partnership between the two institutions that began in 1945.

“GSB is first and foremost a leadership development school,” said Kirby Davidson, GSB President and CEO, adding “It means a lot that a top-tier school like the Wisconsin School of Business recognizes the rigor of our curriculum and the value of our intersession assignments to award this prestigious certificate—the highest level offered by the Wisconsin School of Business—to our graduates.”

To learn more about the Graduate School of Banking at the University of Wisconsin – Madison, and its mission of educating professionals and creating leaders in the banking industry, log on to www.gsb.org.

Students wishing to enroll in the 2015 session should complete an online application no later than June 15, 2015, subject to admission criteria and space availability.

Steve King, Executive Director of the Center for Professional and Executive Development with the Wisconsin School of Business added, “This is a partnership that exemplifies the Wisconsin Idea— allowing us to provide leadership training that will have a meaningful impact for financial professionals in Wisconsin and throughout the country.”

Why Attend a GSB? When you attend a Graduate School of Banking (GSB) program, you’re taking the next step in your banking career.

GSB programs enhance your understanding of bank functions and operations, as well as help you build a professional network with peers from across the country.

Managing Portfolio Risk Continued from page 29

portfolio-sourced reduction, a different sort of contextual suitability is sought. One lens through which risk may be viewed takes into account the potential effect that unrealized losses might have on capital adequacy if, in fact, those unrealized losses were to become real ones. A common exercise involves estimating how much depreciation would be expected to occur after a significant rate increase, and then projecting damage to capital that would result from the actual realization of those projected losses. If the outcome of such a projection results in capital ratios below which management or ownership is comfortable, that’s a good sign the portfolio has too much market risk, and a duration alteration may be in order.

Another method for checking your risk level is based on the presumption that the portfolio should not be allowed to risk more than it’s pro rata share of capital in terms of price depreciation. Or expressed another way, the percentage of total assets represented by the bond account should not be exceeded when potential depreciation is expressed as a percentage of capital. If this occurs, it’s a sign that in light of the rest of the balance sheet the portfolio’s risk characteristics might be a bit on the excessive side in terms of price volatility. Whatever method your bank uses to quantify market portfolio risk, don’t forget to follow through with the next step of determining the appropriateness of that risk. Make sure the risk you’re tolerating is the right risk for you and your bank.

Choose the right referral partner, and create positive growth for your bank and your community.

Call us today. 800.216.7237

*February 20-Year Rate Arkansas Capital Corporation Group is an equal opportunity provider.

April 2015 | The Arkansas Banker

33

COMMUNITY NEWS

Sam M. Sicard Hall of Honor Unveiled as Part of U.S. Marshals Museum in Fort Smith

By Michael Tilley The City Wire

Fundraising for the U.S. Marshals Museum received a much-needed boost with an announcement on March 13 that First Bank Corp. added $500,000 to its donation and is 60 percent toward a goal to raise another $1 million for the museum to honor the late Sam M. Sicard, who was president and CEO of First Bank Corp.

Sicard was elected president of the large regional bank holding company in 1977 and eventually added the title of bank board chairman. During his tenure, the bank saw remarkable growth. In 1989, the Fort Smith-based bank was formed into a holding company — First Bank Corp. — and acquired National Bank of Sallisaw, Citizens Bank & Trust of Van Buren, Bank of Rogers and Brown-Hiller-Clark & Associates.

He died August 2011 after a sudden heart attack. Prior to his death, he was an advocate for the museum with the bank first donating $500,000 in 2009. At the time it was the largest single cash donation to the museum.

Find out more about the U.S. Marshals Museum!

A rendering of the planned U.S. Marshals Museum in Fort Smith.

Museum, said in a statement.

“They are a major part of this community and for them to capture the vision of the Museum and the effort to bring it to reality speaks to the momentum the project is gathering.”

Sam T. Sicard, the late Sicard’s son, made the announcement about the bank donating another $500,000, and raising another $1 million to honor his father. Speaking The elder Sicard was famous for his desire to The City Wire after the event, Sicard to avoid recognition. So what would he said he was approached by think about this honor? a friend of his later father To donate to the “In the past, when someone about raising the money would want to do something in honor of his father as Samuel M. Sicard for him, he would say, ‘You part of a move to name the Hall of Honor, please can recognize me when I’m museum’s planned Hall of Honor the Sam M. Sicard contact U.S. Marshals dead,’ So I’m taking that as permission,” Sam T. Sicard Hall of Honor. The hall is Museum President & said. being designed to serve as a memorial space for U.S. CEO Jim Dunn at Officials with Boston-based Marshals who died in the (479) 709-3766.

Brent Johnson Design line of duty. presented their design “We are excited and humbled by the generosity of First Bank Corp,” Jim Dunn, president and CEO of the U.S. Marshals

concepts for the museum’s Hall of Honor and the three permanent exhibit galleries —Marshals Today, Frontier Marshals and

A Changing Nation. Their talk included how the exhibits would connect with the planned educational programming with the museum.

In January 2007, the U.S. Marshals Service selected Fort Smith as the site for the estimated 20,000-square-foot national museum. The museum is to be built on 15.9 acres along the Arkansas River that is being donated by the Robbie Westphal family.

The planned $53 million museum’s construction is a three-phase project, starting first with site work before moving to building construction and finally design and installation of exhibits to be housed at the museum celebrating the United States’ oldest law enforcement agency.

A ceremonial groundbreaking was held in September, and museum officials hope to have the facility open by late 2017.

Reprinted with permission from The City Wire, www.thecitywire.com.

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The Arkansas Banker | April 2015

MEMBER NEWS River Town Bank Announces Promotions of Tarpley, Berryhill River Town Bank in Dardanelle is pleased to announce the appointment of Blake Tarpley as Chairman, President & CEO; and Tom Berryhill as Executive Vice President.

Blake Tarpley has been in the banking industry since June of 1992. He joined River Town Bank in 2008 in the role of Senior Vice President.

Tarpley is a graduate of Russellville High School, and holds a bachelor of science degree from Arkansas Tech University.

He has served on the Board of Adjustment for the City of Russellville, where he currently serves as chairman.

He is a board member and past chairman of the Pope County Community Foundation; a board member of the Boys & Girls Club of the River Valley, where he has previously served as board president; he is a member of the Russellville Kiwanis Club, where he has served as past president, a board member, and a past pancake chairman; he has also been involved in Ducks Unlimited, where he has served on the local and state level, and the Russellville Country Club. Tarpley also serves as Justice of the Peace in Pope County – District 7.

Tarpley and his wife, Amy, have two children, Alex and Hunter.

Tom Berryhill began his banking career as a teller with River Town Bank in 1991. He currently serves as Chairman of the Board and President of Bank of Dardanelle Bankshares, the locally owned holding company of River Town Bank.

Photo provided by The Russellville Courier

River Town Bank has announced the promotions of Blake Tarpley as Chairman, President and CEO, and Tom Berryhill as Executive Vice President.

A lifelong resident of Dardanelle, Berryhill is a graduate of Dardanelle High School, and holds a Bachelor of Science Degree from Arkansas Tech University.

the Dardanelle Chamber of Commerce; and is Past District Chairman of Magazine Mountain District of the Boy Scouts of America.

Berryhill serves as Chairman of the Dardanelle Housing Authority; President of the Yell County Special Services Center; Member and Past Commander of Yell County Mounted Patrol; Assistant Chief of the Dardanelle Fire Department; 32nd Degree Mason and member of Bright Star Masonic Lodge #213; Member of the Dardanelle Rotary Club; Past President of

He is a recipient of the Paul Harris Fellow with The Rotary Foundation of Rotary International; the James West Fellowship Award from the Boy Scouts of America; and the 2013 Golden Eagle Award from Westark Area Council of the Boy Scouts of America.

Berryhill and his wife, Jennie, have one daughter, Isabelle.

Arkansas State Bank Department Applications Approved BRANCH BANK APPLICATION

An application filed by The Bank of Rison, Rison, Cleveland County, Arkansas, to establish a branch banking facility at 901 Martin Luther King, Suite 100, Malvern, Hot Springs County, Arkansas, has been approved.

February 5, 2015.

An application filed by The Citizens Bank, Batesville, Independence, County, Arkansas, to establish a branch banking facility at 4429 Central Avenue, Suite C, Hot Springs, Garland County, Arkansas, has been approved.

March 9, 2015.

An application filed by The Citizens Bank, Batesville, Independence County, Arkansas, to establish a branch banking facility at 150 Airport Road, Hot Springs, Garland County, Arkansas, has been approved. March 18, 2015.

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MEMBER NEWS Simmons First National Corporation Announces Appointments to Board of Directors Simmons First National Corporation has announced the appointments of Mark C. Doramus, Christopher R. “Chris” Kirkland and Joseph D. “Joe” Porter to its Board of Directors according to George A. Makris Jr., Chairman and Chief Executive Officer.

“We are honored that these individuals have accepted the nomination to serve on our Board of Directors,” stated Makris. “They each are uniquely qualified and bring a tremendous level of firsthand, relevant expertise to our Board.

Additionally, Kirkland and Porter provide representation from our newly acquired Tennessee market area.”

Mark Doramus is the CFO of Stephens Inc., an independent financial services firm headquartered in Little Rock, Arkansas. Doramus joined Stephens Inc., in 1988 and worked in Doramus the corporate finance department prior to becoming Assistant to the President in 1994 and subsequently being named Chief Financial Officer in 1996.

Doramus is a graduate of Rhodes College in Memphis, Tennessee where he received his undergraduate degree in economics and business. Doramus received his master’s degree in real estate and regional science from Southern Methodist University in Dallas, Texas. Doramus began his career in 1980 with Arthur Anderson & Co. in Dallas, where he practiced as a certified public accountant until 1983. He then joined Trammell Crow Company in Dallas, where he worked until joining Stephens Inc. in 1988.

Doramus is a member of the St. Vincent

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The Arkansas Banker | April 2015

Infirmary board of directors, where he served as chairman from 2012 – 2014, and has been a member of the University of Arkansas at Little Rock Board of Visitors since 2004. Doramus served on the Winthrop Rockefeller Foundation board from 2004 to 2009, serving as Chairman in 2009.

Chris Kirkland serves as Principal of Anchor Investments, a Nashville, Tennessee-based real estate investment company with a strategic focus to acquire, develop and manage commercial properties in the southeast United States.

Kirkland

Prior to forming Anchor Investments, Kirkland was Managing Partner of Kirkland Properties, which he cofounded in 1994. During that time, Kirkland developed his skills as an opportunistic investor in commercial real estate, specializing in the development or redevelopment and management of underperforming real estate assets.

Kirkland has participated in the acquisition, development, redevelopment, and management of over 1.5 million square feet of commercial space, as well as hundreds of acres of land development.

Kirkland also has ownership in Kirkland Financial, a Goodlettsville, Tennessee-based residential mortgage investment company and was a founding member of SouthLand Constructors, a commercial contracting company based in Brentwood, Tennessee. Kirkland previously served as a director of Union City, Tennessee-based Community First Bancshares, Inc., which was acquired by Simmons First National Corporation in February 2015, and currently serves as a

director of First State Bank, which is an affiliate bank of Simmons First National Corporation and is headquartered in Union City, Tennessee.

Kirkland received his undergraduate degree in economics from the University of Tennessee, Knoxville and his master’s degree from the Owen School at Vanderbilt University in Nashville, Tennessee.

Joe Porter is President of Akin Porter Produce, Inc., a leading distributor of fresh wholesale produce based in Greenfield, Tennessee with operations in Plant City, Florida; Eau Claire, Michigan; Porter Thomasville, Georgia; and Cuerevaca, Mexico. Porter has more than 35 years of produce broker experience.

Porter also serves as President of JP Enterprises and Vice President of Moore & Porter Produce. Additionally, Porter has a farming interest and serves as a director at Innovative Livestock Services.

Porter previously served as a director of Community First Bancshares, Inc., which was acquired by Simmons First National Corporation in February 2015, and currently serves as a director of First State Bank, which is an affiliate bank of Simmons First National Corporation and is headquartered in Union City, Tennessee.

Porter attended the University of Tennessee at Martin.

Porter is a native of Weakley County, Tennessee and is past President of the Weakley County Chamber of Commerce and a former board member of the Weakley County Municipal Electric System.

BANKER NEWS & MOVES CITIZENS BANK PROMOTES WRIGHT TO MANAGE IMBODEN BRANCH

Jennifer Wright has been promoted to the position of Retail Manager and Consumer Loan Officer at the Imboden branch of Citizens Bank.

“Jennifer has been a valuable member of our Imboden team for more than nine years and we are pleased to announce this well-deserved promotion,” said Phil Baldwin, Citizens Bank President and CEO. “We believe Jennifer has the experience and capabilities to help contribute to the continued growth of Citizens Bank, both in Imboden and across the North Central Arkansas region.”

Wright has worked nearly 15 years in banking, having previously been associated with financial institutions in Walnut Ridge and Cave City.

She joined Citizens Bank in the position of Senior Teller III in 2005.

She and her husband, Vincent, have been married for 11 years. They are parents to Brittany Johnston 28; Spencer Wright, 27; Zavian Brumley, 15; and Landon Wright, 10. The family lives in Strawberry and attends Pleasant Hill Missionary Baptist Church.

She helps care for her grandmother who is in a nursing home at Cave City, and enjoys spending time with her grandchildren and watching her children play sports.

RAWSON TAPPED TO LEAD CORNERSTONE BANK’S ENTRY INTO MADISON COUNTY

Charles T. Cross, President & CEO, Cornerstone Bank has announced the appointment of Mr. Bob Rawson as Senior VicePresident, Commercial and Agricultural Loan Officer to lead the bank’s entry into the Madison County market.

Mr. Rawson most recently served 9 years as Market President for Arvest Bank in Huntsville prior to his hiring at Cornerstone Bank. He has been in the banking and financial services industry for over 30 years and is very active in a number of civic and philanthropic organizations.

Cross stated, “We are thrilled to have Bob’s affiliation with our bank as we begin to assemble a professional team of personable and capable bankers for our upcoming entry into the Madison County market.

Bob’s commercial and agricultural expertise will serve our institution well moving forward and we look forward to his leadership as we begin to form long lasting relationships with prospective clients in and around Huntsville. We are most excited to be afforded the opportunity to serve and earn the trust and confidence of residents and business owners throughout the area.”

Prior to his most recent tenure at Arvest, Mr. Rawson served a total of 25 years

with Farm Credit Services and U.S. Bank. He is Vice President of the Madison County Fair Board, board member of the Office of Human Concern, Secretary of the Madison County Cattlemen, past President of the Huntsville Kiwanis Club, board member of CASA of Northwest Arkansas and a Deacon at First Baptist Church of Hindsville.

Bob will office at the bank’s soon to be completed facility in Huntsville. Cross stated that until construction is completed this summer, it is the bank’s intention to open a temporary office to begin serving clients in the area.

CENTENNIAL TRUST DEPARTMENT PROMOTES GIST

Shelly Gist was recently promoted to Trust Officer at Centennial Bank Trust, according to Steve Baker, Department Manager.

“We have expanded our trust team to offer an even greater level of service for our customers.

Shelly’s knowledge and years of experience in our department make her the perfect choice for a trust officer,” said Baker.

Gist has nine years of financial experience and previously served as Trust Assistant at Centennial Bank Trust. Her new responsibilities include administration of personal trust accounts and serving on the Trust Department Investment Committee.

She holds a bachelor’s degree in finance from

Arkansas State University and is a General Securities Registered Representative.

Gist and her husband, Chase, have two children, Jordyn, 3, and Miles, 1.

She is located in Centennial Bank’s 2901 East Highland Drive banking center in Jonesboro.

U.S. BANK NAMES HENDERSON BUSINESS BANKING MANAGER

U.S. Bank has named Adam Henderson business banking manager in Arkansas.

In his new role, Henderson leads a team of business bankers and works with 42 branch managers across the state to meet the banking and financial services needs of businesses with annual sales under $10 million.

Previously a business banking relationship manager and branch manager, Henderson has more than 22 years of experience with small and medium sized businesses in Arkansas. He has twice been named the Top Business Banking Branch Manager across the company’s 24-state community banking footprint.

Henderson received a bachelor’s degree in finance from the University of Arkansas at Little Rock in 1992. He began his banking career while attending college and has worked in the industry since that time. He is involved with the alumni association at the University of Arkansas at Little Rock College of Business and the Maumelle Area Chamber of Commerce.

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BANKER NEWS & MOVES SIMMONS FIRST INVESTMENT GROUP ANNOUNCES NEW MEMBER, OFFICER PROMOTIONS

Simmons First Investment Group, a subsidiary of Simmons Bank, recently announced the addition of Carolyn May and the promotions of Ken Adams, David Seay, Joe France, Reed Willett and Angela Johnson, according to James Alger, President and Chief Operating Officer of Simmons First Investment Group.

Carolyn May joins Simmons First Investment Group as Senior Vice President and Manager of Investment Financial Operations. May draws on more than 30 years of experience as a Compliance Consultant to Broker Dealers, Investment Advisors, CPAs and attorneys in her new role with Simmons First Investment Group. May has served as an Advisory Director to Simmons First Investment Group since 1997 and currently serves as Secretary of the Simmons First Investment Group Board of Directors.

May is a Certified Securities Compliance Professional and has served on numerous committees of the Financial Industry Regulatory Authority. May has served as Secretary of the National Society of Compliance Professionals and Chairman of the Board of the National Association of Independent Broker Dealers. Additionally,

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May has served as a speaker and instructor in the area of compliance for many industry groups.

Ken Adams has been promoted to Senior Vice President and holds the position of Investment Securities Registered Representative. Adams has more than 25 years of experience in the investments industry and holds a Bachelor of Science in Accounting from Arkansas State University. Adams has completed the Louisiana State University Graduate School of Banking and holds his General Securities Registered Representative certification from FINRA. David Seay has been promoted to Senior Vice President and holds the position of Investment Securities Registered Representative. Seay has more than 25 years of experience in the investment industry. Seay attended the University of Arkansas at Little Rock and holds his Municipal Securities Representative Certification from the Municipal Securities Rulemaking Board (MSRB) and his General Securities Registered Representative and Uniform Securities Agent State Law certifications from FINRA.

The Arkansas Banker | April 2015

Joe France has

been promoted to Vice President and has served as an Investment Securities Registered Representative since joining the company in 2011. France attended Arkansas State University and the University of Memphis and holds his General Securities Registered Representative and Uniform Securities Agent State Law certifications from FINRA. Reed Willett has been promoted to Vice President and holds the position of Investment Trader.

Willett received a Bachelor of Science Business Administration degree in Finance and Marketing from the University of Arkansas and holds his General Securities Registered Representative, General Securities Principal, Municipal Securities Principal and Uniform Securities Agent State Law certifications from FINRA. Willett is active in the community through his volunteer efforts with the UAMS Auxiliary where he was a founding member of the Young Professionals Group, The Aux Crew. Additionally, Willett is an Easter Seals Guardian and previously volunteered with the American Heart Association and the Northwest Arkansas Food Bank.

Angela Johnson has been promoted to Assistant Vice President and currently holds the

position of Manager of Fixed Income and Dealer Bank Operations. Johnson is a graduate of the University of Arkansas at Little Rock and holds a Bachelor of Science in Business Administration.

CENTENNIAL BANK PROMOTES CLEVENGER AND BAKER

Jay Clevenger and Tracy Baker were recently promoted at Centennial Bank, according to Deana Osment, Division President.

“Tracy and Jay are extremely knowledgeable about many aspects of the banking industry. This knowledge coupled with their excellent work ethic has afforded them new positions with added responsibilities,” said Osment.

Jay Clevenger, promoted to Regional Retail Leader, has 25 years of banking and finance experience in treasury services and data processing.

He previously served as Treasury Services Officer. Clevenger’s new responsibilities include overseeing new account and teller operations of 17 banking centers in Northeast Arkansas, branch growth, customer satisfaction, fraud investigation and disaster recovery.

He earned a degree in business management from Williams Baptist College and has attended many banking seminars and conferences on fraud, security and branch operations.

Continued on page 39

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ADVERTISEMENTS For more information on advertising in The Arkansas Banker, please contact Traci Logsdon, Director of Communications, via email at traci.logsdon@arkbankers.org, or by phone at 501.978.3603.

POST YOUR CLASSIFIED: If you would like to place a classified ad in The Arkansas Banker, please email traci.logsdon@arkbankers.org or call 501.978.3603.

BANKER NEWS & MOVES Continued from page 38

Foundation Life Insurance 25 Simmons Bank

CLASSIFIEDS

Clevenger is active in scouting and currently serves as Troop Committee Chair for Boy Scout Troop 134. He is past president of the Rotary Club of Jonesboro-University and past chair and current treasurer of the Arkansas Bankers Coalition for Disasters and Emergencies. He is a member of the Jonesboro Regional Chamber of Commerce.

Clevenger has two children, Seth, 19, and Al, 15. They attend First United Methodist Church in Jonesboro.

Tracy Baker was recently promoted to Treasury Services Sales Representative. Her new responsibilities include generating sales of cash management products to new and existing commercial customers, providing on-going customer support, comparative analysis and product recommendations.

Clevenger and Baker are located in Jonesboro’s main banking center at the corner of Highland Drive and Red Wolf Boulevard.

FIRST STATE BANK OF DE QUEEN ANNOUNCES ORGANIZATIONAL CHANGES

First State Bank of De Queen has announced several changes to the institution’s organizational structure.

Gary L. Golden will now serve as Chief Executive Officer and Vice Chairman.

Noel Bard has been named President of the Sevier County Division.

J. Marc Jackson has been named President of the Pike-Howard County Division.

Angie Walker of De Queen has been appointed to the Board of Directors.

With 15 years of financial experience, Baker has a diverse banking knowledge. She most recently served as Assistant Vice President/Money Services Operations Manager.

The Arkansas

Banker 1220 West Third Street Little Rock, AR 72201 Phone 501.376.3741 Fax 501.376.9243 www.arkbankers.org

She has completed numerous continuing education courses from Arkansas Bankers Association.

Baker has served as a volunteer for American Cancer Society, American Red Cross, Salvation Army, St. Jude Research Children’s Hospital, Susan G. Komen and United Way. Baker and her husband, Gene, have two children, Morgan, 22, and Colten, 19.

Give your employees the recognition they deserve!

Submit Banker News & Moves to traci.logsdon@arkbankers.org.

April 2015 | The Arkansas Banker

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The Arkansas Banker | April 2015